Short Sale: Fear or Plunder?

Short Sale

          Like a storm rolling in

With the uncertainties of:

   *   Home bought "As Is"

   *   Earnest Money tied up for months 

   *   Home Inspection...with NO  REPAIRS

   *   Waiting 3 month or maybe 6 months for Bank Approval

   *   Unable to purchase with contingency of selling the your

            present home

   *   Missing a better home while waiting for Bank Approval

    YET

         The Short Sale could be paradise

      Imagine:

           *    Best Value in Neighborhood--Lots of Equity!!!

           *    Knowledge of Short Sale Process opens

                   up options on selling present home

           *    Hunting for more homes will waiting on bank

                    and KNOWING you can get the house YOU

                    Want

           *    Depositing Earnest Money WHEN Bank Approval

                    is received

          

Knowledge of the process is key!!  A Realtor experienced with

Short Sales and Foreclosures may not be able to make it a day at the beach.  But the storm clouds won't be as ominious!!!

HAVE NO FEAR!!!!     

The Beat Goes On

The beat goes on!!!!

Jim Belote's Mortgage Matters shares again the threat to "the bottom of market" wait it out buyers.   

                         YOU MISSED IT!!!

The notes below relate again the reduction in foreclosures, the tightness of inventory and the increase in mortgage rates.  I totally
agree that buyers will, in the future, face the double whammy of higher home values and higher payments.

Sellers:  Be jumping for glee...it is time to put your house on the
             MARKET!

Keeping you updated on the market! For the week of  February 18, 2013 MARKET RECAP Is the End Upon Us? We hope so, and the evidence suggests that it is. This is a good thing, because we are referring to the national foreclosure crisis, which has weighed on the housing recovery (at least it did through mid-2012). RealtyTrac reports that the number of homes in various stages of foreclosure is down to the lowest level since the housing bubble burst. For most of 2012, we said that the overhang of foreclosures and distressed properties would dissipate. Our rationale was that the issues were well-known and understood. Market participants would actively address the issues, and thus, would rectify them. That's exactly what's occurred (and is occurring). RealtyTrac also reports foreclosure starts fell to a 79-month low, reaching levels not seen since June 2006.  We expect foreclosures to continue to trend lower. TransUnion finds that the rate of borrowers 60 days or more past due on a mortgage dropped 14%, the largest reduction since the recession ended in mid-2009. Just as encouraging, many of the delinquencies are a result of older vintage loans – borrowers who haven't made payments for an extended time – and are inflating the overall delinquency rate. We expect housing construction to continue along its trend as well. For-sale inventory – both existing and new – is at a decade low (and possibly a multi-decade low). This points to a rise in construction activity. In fact, Goldman Sachs expects real residential investment to grow at a 10%-to-15% annual rate through 2014. This means we'll also likely see a surge in housing-related employment. Goldman's economic models point to 25,000 new housing-related jobs being formed each month for the next two years. So the stage is set for an uptick in economic growth. This means mortgage lending rates will be pressured to move higher, thus continuing a trend started last fall. We look for higher rates because as the economy improves more money will flow out of fixed-income investments – Treasury and mortgage-backed securities – and into riskier investments. We've already seen a surge in stock-market investments. Both the Dow Jones Industrial Average and the S&P 500 are up strongly over the past three months. The counter argument states that mortgage rates will remain subdued because of the current battle in Congress over sequestration and spending cuts. In other words, market uncertainty is rising, which means investors will be motivated to seek shelter in Treasury and mortgage-backed securities. This might happen, but its impact would be ephemeral. This big-picture view points to economic growth. Economic growth and continued strength in housing will also force the Federal Reserve to exit its open-ended policy of quantitative easing sooner than expected. The bottom line is that anyone who can benefit from a refinance or a purchase loan should take advantage of today's rates. The risk/reward paradigm strongly lists toward taking action; it makes little sense to procrastinate at this point. Economic Indicator Release Date and Time Consensus Estimate Analysis Home Builders' Index (February) Tues. Feb. 19, 10:00 am, ET 48 Index Important. Rising sentiment is reflective of strong pricing and rising consumer demand. Mortgage Applications Wed., Feb. 20, 7:00 am, ET None Important. Record-low inventory is limiting purchase-application activity. Housing Starts (January) Wed., Feb. 20, 8:30 am, ET 918,000 (Annualized) Important. The rate of starts is expected to accelerate through 2013. Consumer Price Index (January) Thurs., Feb. 21, 8:30 am, ET All Goods: 0.1% (Increase) Core: 0.2% (Increase) Important. The current trend in consumer-price inflation is a non-factor to interest rates. Existing Home Sales (January) Thurs., Feb. 21, 10:00 am, ET 4.85 Million (Annualized) Important. Low inventory continues to retard sales growth. Money and Consequences Over the past four years, the Federal Reserve has pumped an unprecedented amount of money into the banking system, which is one reason interest rates have remained so low for so long. This new money has also found its way into many investment assets: Today, the S&P 500 and Dow Jones Industrial Average are at multi-year highs; oil continually hovers near $100/barrel; many metal commodities are near all-time highs, as are many food commodities; gold remains near its all-time high and continues to adhere to its decade-long price trend. More money has also been funneled into housing, especially from institutional investors. Hedge funds are large buyers of single-family houses, which is a new phenomenon. Interest among these institutions appears to be growing. American Homes 4 Rent , a California-based firm specializing in single-family rentals, recently purchased 10,000 homes, making it the second-biggest owner of single-family rentals in the institutional space. The point we need to emphasis is that more money flowing into housing from institutional investors means there will be fewer values available to individual owner-occupied buyers. We've been warning over the past year that the pool of good deals is evaporating. It's important to let clients know that the rate of evaporation is accelerating.

Real Estate Market Rolls

Impressive...that is all I can say.

Jim Belote recaps information that I, and perhaps you have seen, from various news outlets in the past week or so. 

A quick read to know that Mortgage Deduction is safe as well as the relief given to home owners going through a short sale or foreclosure.  As Jim notes, this will keep the market improving by removing a costly tax burden to people in these tough situations.

You have to like the news on Phoenix and Las Vegas as well as national 5%+ home value increase.  Yet, note the continued warning on interest rate pressures.  This is bound to be a topic of many reports in the next few months.

Keeping you updated on the market! For the week of  January 7, 2012 MARKET RECAP It appears Congress and the president have finally reached a compromise on the “fiscal cliff” – the agglomeration of tax increases and spending cuts that were set to take effect in January 2013. The good news is the housing and mortgage markets survived unscathed. The Mortgage Forgiveness Debt Relief Act remains in force for another year. This means forgiven mortgage debt will remain untaxed. Without this extension, short sales, foreclosures, and loan modifications would have become encumbered with a tax burden. This would have been a serious blow to the recovery. These basic market-clearing mechanisms were vital to the housing recovery in 2012, and will continue to help the recovery along in 2013. The mortgage interest deduction also remains intact, which means mortgage financing remains a very good low-cost deal. It also means mortgage financing remains a savvy leveraging strategy for purchasing an asset (residential real estate) that is rising in value; thus providing a means to increase returns on invested capital. In other words, the housing recovery is here to stay, and the latest round of price data supports this conclusion. Trulia reports that asking-price gains accelerated throughout the past year. In the first quarter of 2012, national home prices increased 0.8% quarter over quarter; by the fourth quarter, the pace had increased to 2.3%. Year over year, national home prices were up 5.1%. Fueling the home-price acceleration was the former left-for-dead Phoenix market, which staged a remarkable resurrection that continues to this day. Home prices in Phoenix were up 25% for the year. We've frequently written that falling prices will eventually produce more buyer interest, which, in turn, will lead to an eventual recovery. Phoenix is proof this economic maxim works. Las Vegas also proves the maxim. It seems like it has taken an eternity, but the Las Vegas housing market is on the mend. Home prices in Las Vegas were up 10% year over year in December, building on a price-recovery trend that begin in the second half of 2012. We noted early in 2012 that a recovery in the Las Vegas housing market would likely mean the recovery had become a country-wide phenomenon. This appears the case today. Home prices around the country remain on the rise, and it's appearing more likely that mortgage rates will be rising too. Over the past couple weeks, rates have been inching higher. What's more, events in the debt market point to even higher rates. We are speaking specifically of the 10-year U.S. Treasury note – a benchmark for the mortgage-backed security market and the 30-year fixed-rate mortgage. The yield on the 10-year Treasury has moved considerably higher over the past month. In fact, the yield on the 10-year Treasury today is approaching its highest point in nearly four months. The trend in the 10-year Treasury yield is worth following, because if the job market and economy continue to improve (as we expect), then you can be sure that the yield on the 10-year Treasury note will continue to rise. Should this occur, mortgage lending rates are sure to follow.   Economic  Indicator Release  Date and Time Consensus  Estimate Analysis Consumer Credit (November) Tues., Jan. 8, 3:00 pm, ET $15 Billion (Increase) Important. Rising credit use reflects rising consumer confidence. Mortgage Applications Wed., Jan. 9, 7:00 am, ET None Important. Applications are expected to regain pace after the holiday-season lull. International Trade (November) Fri., Jan 11, 8:30 am, ET $40.2 Billion (Deficit) Moderately Important. Lower energy prices are reducing the current account deficit. Import Prices (December) Fri., Jan 11, 8:30 am, ET No Change Important Prices. Import prices continue to help hold inflation in check.   No Such Thing as a Perfect Market   No sooner had news on the “fiscal cliff” reached the market when frets and worries turned to the debt ceiling. The federal government hit its legal borrowing limit of $16.4 trillion this past week. Now pundits and professional worriers are fretting over what implications this impasse will have on financial markets and the economy. No need to fret or worry, because perfection is impossible. Markets will always be encumbered with uncertainty. To wait for perfection is to wait in perpetuity and to never act. In fact, the best time to act is when the outlook appears most dire and sentiment is decidedly negative. That's when the best values appear. We saw that in the residential real estate market in 2011 and early 2012. Many people who bought a home then are already sitting on a tidy gain today. We still see value, just not as much of it. Low mortgage lending rates have been an extenuating factor, but we believe if borrowers (and refinanciers) wait much longer the value of that factor will fall should rates rise. The point we can't emphasis enough is not to wait for perfection, because perfection doesn't (and never will) exist.     If you wish to unsubscribe, click on the link below and send the email. If this message was forwarded to you, please reply to the sender. Click Here To Unsubscribe EQUAL HOUSING LENDER

Local and National Real Estate Market Update

Bryan Cerny Rose & Womble Realty 757-580-6546    300 Cedar Lakes Drive, Chesapeake, VA 23322  Phone: 757-580-6546     Fax: 757-390-3468    Home  | Value of Your Home  | Real Estate Glossary DECEMBER - 2012 Newsletter Share

Housing Trends eNewsletter is filled with U.S. Census Bureau key market indicators, consumer videos, blogs, a real estate glossary, mortgage rates and calculators, consumer articles, real estate radio, REALTOR.com local community reports and local and national real estate sales and price activity provided by local MLSs and the National Association of REALTORS®. What's Happening in Local Markets?  Local Market Reports for 150 Metropolitan Housing Markets *Local Prices & State Sales VA - Richmond Region Real Estate Market VA - Virginia Beach Region Real Estate Market View All Local Market Reports *Prepared by National Association of REALTORS® **Prepared by Clarus MarketMetrics   Local Area Markets in 25 States **Local Sales & Price Activity AZ - Phoenix Real Estate Market AZ - Tucson Real Estate Market CA - Northern Bay Region Real Estate Market CA - Inland Empire Real Estate Market CA - Los Angeles Real Estate Market CA - Orange County Real Estate Market CA - Pleasanton & Alameda County Real Estate Market CA - Riverside/Coachella Valley Real Estate Market CA - San Diego Real Estate Market CA - Silicon Valley & Central Coast Real Estate Market CA - Southern California - Los Angeles County Real Estate Market CA - Ventura County Real Estate Market CA - Victor Valley Real Estate Market CO - Denver Real Estate Market CO - Fort Collins Real Estate Market CT - Connecticut Real Estate Market DC - Washington, DC Real Estate Market FL - Fort Lauderdale Real Estate Market FL - Manatee Real Estate Market FL - Miami Real Estate Market FL - Naples Real Estate Market FL - Northeast Florida Real Estate Market FL - Palm Beach Real Estate Market FL - Sarasota Real Estate Market FL - Tampa Bay Real Estate Market GA - Atlanta Real Estate Market ID - Southern Idaho Real Estate Market IL - Chicago Real Estate Market IL - Southwestern Illinois Real Estate Market IN - Fort Wayne Area Real Estate Market KY - Lexington - Central Kentucky Real Estate Market MD - Maryland Real Estate Market MI - Michigan Real Estate Market NC - Charlotte Real Estate Market NH - Northern New England Real Estate Market NM - Albuquerque Real Estate Market NM - Las Cruces Real Estate Market NY - Dutchess County Real Estate Market NY - Long Island Real Estate Market NY- Rochester Metro Real Estate Market OK - Tulsa Real Estate Market OR - Central Oregon Real Estate Market OR - Eastern Oregon Real Estate Market PA - Franklin County & Fulton County Real Estate Market SC - Hilton Head Island Real Estate Market SC - Piedmont Real Estate Market TX - Austin Real Estate Market TX - Dallas/Ft. Worth Metroplex Real Estate Market TX - El Paso Real Estate Market TX - Houston Real Estate Market TX - San Antonio Real Estate Market TX - Tyler Real Estate Market VT - Northern New England Real Estate Market VT - Northern New England Real Estate Market WI - Milwaukee Real Estate Market WI - South Central Wisconsin Real Estate Market WV - West Virginia Real Estate Market View All *Prepared by National Association of REALTORS® **Prepared by Clarus MarketMetrics Community Reports on REALTOR.com Enter a ZIP code to view a report. For a comparison report, enter a second ZIP. Compare Community Amenities Compare Community Statistics * Shopping and Groceries * Public Services * Places of Worship * Recreation and Leisure * Food and Drink * Population * Households * Education * Housing * Transporation * Income * Employment * Net Worth * Cost of Living * Climate Source: REALTOR.com Bryan Cerny  Home Ownership matters…to people, to communities, and to America. Why? • For every two homes sold, one job is created in the U.S. • Each purchase generates as much as $60,000 in economic activity over time. more...  Buying is now cheaper than renting in 74 percent of the nation’s largest cities. Low home prices and “rock-bottom” interest rates as well as tax advantages of homeownership are the reasons why it’s now cheaper to BUY a 2-bdrm home than to rent one. Check out this CNN Money article with the details. more... Disclaimer: The views, opinions, statements and/or ideas expressed in this Message Section do not reflect the ideas, policy, position, views or opinion of eFrogPond,Inc. National Real Estate Market Update November Existing-Home Sales & Prices Maintain Uptrend WASHINGTON (December 20, 2012) - Existing-home sales continued to improve in November with low inventory supply pressuring home prices, according to the National Association of Realtors®. More... National Real Estate Market Articles    Source:NATIONAL ASSOCIATION OF REALTORS®. November 2012 Existing Home Statistics Source: NATIONAL ASSOCIATION OF REALTORS®.  View Prices / % Changes for 159 Cities   & Metropolitan Areas View Single-family Home Prices View Condo/Co-op Prices       Housing Affordability Index |  Click Here to view details   Mouse over the map to view Regional Definitions   National Existing Home Sales [View Detail]   National Sales Price of Existing Homes [View Detail]   Existing Home Sales [View Detail]   Sales Price of Existing Homes [View Detail]   Existing Single Family Home Sales [View Detail]   Sales Price of Existing Single-Family Homes [View Detail]   Existing Condo/Co-op Sales [View Detail]   Sales Price of Existing Condo/Co-op Homes [View Detail] Source: NATIONAL ASSOCIATION OF REALTORS®. Daily Real Estate Market Outlook Economists' Commentaries provide an in-depth look at trends and current news related to housing and the real estate market.   Click here Consumer Tips & Cool Properties Recycling Your Christmas Tree Julie Day, TodaysHomeowner.com, provides green solutions to recycling your Christmas tree. More... Holiday Left Scuffed Countertops? Here's Easy 99 Cent Solution Holiday cooking can result in unsightly counter top scratches. Here's a quick, easy, and inexpensive remedy with the help of your local 99 Cent store. More... 10 Tips to Survive Packing for Your Move Rick Hazeltime, shares 10 tips "culled from everyday people who gave their best advice in chat rooms and Internet forums" about how they survived moving day packing. More... Outfit Your Bed with Style Ginny Gaylor's bedroom Wow! Factor is simple with her guide to everything your need to know about bed coverings. More... Mortgage Rates Mortgage Calculator National Housing Indicators Existing Home Sales  (November) 5.04 million units* Existing Home Median Price  (November) $180,600 Housing Starts  (November) 861,000 units* New Home Sales  (November) 377,000* *seasonally adjusted annual rate  Source NATIONAL ASSOCIATION OF REALTORS®. National Economic Indicators Homeownership Rate 3rd Qtr 12 3rd Qtr 11 65.5% 66.3% The homeownership rate in the third quarter 2012 (65.5 percent) was lower than the third quarter 2011 rate (66.3 percent). The homeownership rate in the South was lower than the corresponding second quarter 2011 rate, while the rates in the Northeast, Midwest, and West were not statistically different. New Home Sales Nov 12 Oct 12   +4.4% -3.5% Sales of new single-family houses in November 2012 were at a seasonally adjusted annual rate of 377,000. This is 4.4 percent (+/- 16.8%)* above the revised October 2012 estimate of 361,000. 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