Interest Rates - Again

This from RIS Media:

"Analysts said lower interest rates are helping stabilize the market. The rate on a 30-year, fixed-rate mortgage was 6.18 percent last week, according to Freddie Mac, the federal mortgage company. In the summer and in early fall, rates ranged from 6.6 to 6.8 percent. Sellers also have adjusted to the downturn by setting more realistic prices when they put their homes on the market, agents said. The strong economic performance of the last few months also is giving buyers the confidence they can afford a new home."

Since there are approximately 30% more homes from which to choose, and the interest rates are down, buyers of homes during this winter should have no trouble finding the place and meets all of their needs; and the low interest rates should make the process a lot easier.

Market in General

The way things are shaping up, I would think that buyers would be buying everything they could (realty) right now. With Iran making power plays that could incorporate all, or most, of the middle east, the US is now in a rather obvious panic mode. Should oil be enbargoed, and should interest rates begin rising, the stock market could very easily panic as well. Buy real estate! Stability and the ability to engage in society from a position of confidence rests in property ownership. Don't wait. Buy now. 2007 may bring changes which might make purchasing much more difficult.

Third Quarter Figures

The numbers are out for the third quarter of this year. All of this from the National Association of Realtors:



Third-Quarter Metro Home Prices & State Sales Confirm Market Transition
WASHINGTON, November 20, 2006 - Conditions for home buyers improved during the third quarter as existing single-family home prices in many metropolitan areas experienced corrections, and most states saw sales activity below a year ago which helped to build housing inventories, according to the latest quarterly surveys by the National Association of Realtors.

Total state existing-home sales, including single-family and condo, were at a seasonally adjusted annual rate1 of 6.27 million units in the third quarter, down 12.7 percent from a 7.18 million-unit pace in the third quarter of 2005 – the second highest level on record, after a peak of 7.19 million in the second quarter of last year. Even with the overall decline, 10 states showed increases in sales activity from a year ago.

Third-quarter metro area single-family home prices, examining changes in 148 metropolitan statistical areas, show 102 areas had price gains, including 21 metros with double-digit annual increases, and 45 areas experiencing price declines; one was unchanged.

David Lereah, NAR’s chief economist, said market conditions are nearly the opposite of a year ago. “Last year we had a record sales market and historically tight supplies of homes with buyers bidding over the asking price,” he said. “With the market in full transition, buyers now have choices and sellers are more willing to negotiate – under these circumstances it’s no surprise that overall home prices are slightly below a year ago. We expect this trend to continue in the months ahead, but we’ll see modest appreciation in most of the country in 2007.”

The national median existing single-family home price was $224,900 in the third quarter, down 1.2 percent from a year earlier when the median price was $227,600. The median is a typical market price where half of the homes sold for more and half sold for less.

NAR President Pat Vredevoogd Combs, of Grand Rapids, Mich.,said the market transition is good news for home buyers. “With the supply of homes at the highest level in over a decade and historically low mortgage interest rates, it’s become a great time to buy a home,” said Combs. “This window of opportunity will continue into the new year, but inventories are starting to decline and sellers will be less willing to negotiate when conditions begin to balance in most areas around early spring.”

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage was 6.56 percent in the third quarter, down from 6.60 percent in the second quarter; the rate was 5.76 percent in the third quarter of 2005. Last week, Freddie Mac reported the 30-year fixed rate was down to 6.24 percent.

The biggest total sales increase was in North Carolina, where existing-home sales rose 9.7 percent from the third quarter of 2005. In Texas the third-quarter resale pace rose 8.6 percent from a year earlier, while Montana experienced the third strongest gain, up 6.4 percent.

Seasonal Stuff

Just a few points here:

1) Trim the tree limbs from around the house and power lines, and clean your gutters. Heavy rain and winter ice storms can do a lot of damage.

2) If your home is for sale, put the tree up early, and put some cinnamon spice on the stove.

3) Take pictures of the home docorated for Christmas, and have your realtor post them to your multiple listing service.

4) If you're leaving town for any of the three holidays, call your realtor and tell him.

5) Lastly, if anybody wants to buy and be in by Christmas, make it easy for them!

Elections

As much as some are dismayed with the outcome of the elections, there are many others, conservatives and liberals alike, who are pleased. Although the Bush administration orchestrated an economy extremely favorable to us as realtors, other issues have angered and disenfranchised many conservatives.....especially those of us who are Christians. Three things riled the conservative Christian base of the Republican party: 1) The no-child-left-behind program, 2) profligate spending (with no vetos by the president), and 3) free-wheeling fraud and immorality within the Republican power structure. If the party doesn't get back to its fundamentals, it will also lose the 2008 presidential election.

However, real estate (which is the topic of this blog) is still going gang-busters. At least we still have that (at least until Nancy Pelosi, Henry Waxman, John Dingle and John Conyers get their hands on the tax structure).

Alternative Credit?

This from the International Herald Tribune:

Lenders (such as Citibank, et al,) will consider an alternate credit scoring procedure for immigrants (including illegals) in order to qualify them for home loans. There is no rule that says an illegal immigrant can't buy a home; and there's no rule that says a lender can't lend him money.

So, instead of using social security numbers, bank accounts, credit cards, etc. to calculate credit scores, lenders will begin using rent payments, water and electric bills, etc., as alternate sources of credit information. From those, lenders will calculate the risk of lending for a home mortgage.

Why are they doing this? Because it is foreseen that by 2010 Hispanics will constitute TEN PERCENT of the buying power in these United States!

Elections

Well, elections are right around the corner. The state of Texas is trying every way it can to impose a "transfer tax" on all real estate transactions. It's as if there weren't enough "fees" already. People from a few other states find it difficult to move here even now because of the high property taxes. Better not dwell on it because it just makes my blood boil.