New Lower FHA Premium

GREAT NEWS

for 1st Time Home Owners

and Investors

FHA has just announced new lower mortgage insurance premiums.   This is the best news for many 1st time home owners and investors that frequently seek low down payment loans.

The change may seem small to some but the simple change from 1.07% to .85% really saves a home buyer good money.

As so elegantly stated in the attached handout, a buyer can save almost $30,000 on a $200,000 mortgage over the life of the loan.  That's not chicken feed(unless your feeding one huge flock of chicken!).

Home buyers take a look at this handout.  Then call your Realtor!!!

New Lower FHA Mortgage Insurance Premium

Housing On Way Up in Hampton Roads

More GREAT NEWS!!!

Straight from the Real Estate Network for Hampton Roads are stats that show inventories and buyers match up.  This is a recipe for improving values and continuing tight inventory.  If you have been considering a move, you might want to strike before the interest rates start following the home prices.

Read and be impressed!!!

Region’s Real Estate Supply No Longer Outpacing Demand


(Virginia Beach, Virginia – November 2012)

Promising real estate trends in Hampton Roads continued through October 2012, with double

digit percentage increases in year-over-year residential settled sales and under contracts. Residential

active listings also experienced a double digit percentage decrease, thereby lowering the month’s supply

of inventory.

October 2012 saw a 13.8% year-over-year increase in residential settled sales. This marks the

eighth time this year that settled sales have increased year-over-year. Suffolk and Portsmouth

experienced the largest gains of 42.3% and 25.6% respectively. Of the seven major cities (Chesapeake,

Hampton, Newport News, Norfolk, Portsmouth, Suffolk, and Virginia Beach) Norfolk and Newport News

were the only two not to experience year-over-year increases and saw declines of 9.9% and 5.9%.

The number of residential under contract sales was up 26.1% in October 2012 when compared to

the same time last year. This is the highest year-over-year increase the market has experienced since

January 2012 when the number of pending sales grew 32.9%. Suffolk and Virginia Beach experienced

the largest year-over-year increases at 100% and 29.8% respectively. Hampton and Newport News were

the only major cities not to experience an increase, with declines of 12.3% and 1.4% year-over-year.

Residential listings for sale continue to decline and were down 12.1% overall when compared to

October 2011. Each of the major seven cities experienced year-over-year drops in active listings.

Chesapeake and Virginia Beach showed the largest declines of 21.9% and 19.9% respectively, with

Portsmouth experiencing the smallest decline of 5.9%. This drop in the number of active listings in the

market has led to a significant drop in month’s supply of inventory – now at 6.79 months as compared to

8.44 months in October 2011. In the supply and demand equation, this lowering of inventory bodes well

for the median sales price, which was $199,000 in October 2012, up 5.4% from $188,780 in October

2011.

Distressed homes (homes that are banked owned or short sales) continue to have an impact on

the region. Although the number of distressed active listings has dropped 25 units year-over-year, they

still account for 26.8% of all residential active listings in October 2012, vs. 24.3% in October 2011. This

may suggest that buyers are purchasing more non-distressed listings. Distressed homes comprised

28.3% of all residential settled sales in October 2012. Though this is up 2.9% from last month, distressed

residential settled sales are down 4.8% from October 2011.

October 2012 Highlights

Listings

Residential active listings decreased, 12.15% year-over-year, to 10,993 (October 2012) from 12,514 (October

2011).

Under Contract (Pending) Residential Sales

Total residential under contract sales increased by 26.16% when compared to October 2011 (1,765 vs. 1,399).



Sales

Total property sales and total residential sales increased when compared to October 2011 showing increases of

13.09% and 13.89% respectively.

Inventory

There is currently 6.79 months’ inventory of residential homes on the market in the Hampton Roads area, a

decrease from last month (6.94) and down 19.54% from September last year when it was 8.44 months.



October 2012 Summary

All Categories

October 2012 October 2011 Percent Change

Total Property Active Listings

13,618 15,323 -11.13%

Total Property Pending Sales

1,860 1,459 27.48%

Total Residential Pending Sales

1,765 1,399 26.16%

Total Property Sales

1,676 1,482 13.09%

Total Residential New Construction Sales

217 206 5.33%

Total Residential Sales

1,615 1,418 13.89%

Median Residential Sales Price

$199,000 $188,780 5.41%

Months’ Supply Inventory

6.79 8.44 -19.54%



* Total Property statistics include all property types (Residential, Commercial, Duplex, Apartment and Land & Farms), resale and new construction.


* Months’ Supply Inventory estimates the number of months it will take to deplete current active inventory based on the prior 12   Source:   Nancy May, Manager of Communications  REIN

Economy Isn't as Bad As Might be Believed

HOT NEWS FLASH:

Then again, maybe the economy isn't as bad as many economists believe. Housing has always been a key component in economic growth, and the outlook for housing is pretty darn good these days. In fact, Fannie Mae's Economic & Strategic Research Group believes that increases in residential construction will add 0.2 percentage points to gross domestic product this year. Housing construction and home sales have a cascading effect, producing additional demand for home furnishings and many other retail products and services.

You will find this quote in Jim's Belote's Mortgage Matters below.  It underlies building momentum in the housing market...instead of decreasing the GDP as it has for the last 2 years, housing will add to it once again.

Historically, the Housing Market is a key component of the economic engine that moves the broader U.S. Economy.
Confident home buyers enter the market, increasing the demands for appliances, windows, HVAC systems, furnitures, home decor, bedding and the list goes on.  So suddenly, contractors, salesmen at Home Depot, new Target and Bed Bath & Beyond stores (and their competiton) are needed to supply this growing demand.

As noted, the disappearing "shadow" over the market of the "shadow foreclosure inventory" will eliminate uncertainty from the housing market.  This will boost the housing market.  

Jim's article addresses the real possibility that the "uncertain budget" sequestering still on the table may be resolved via higher taxes and reduced government expenses to curb the high government debt.   Though this may slow the economy a bit, it could cause interest rates, rising recently, to retreat. Won't that be a silver lining to buyers???

Read and respond!!!  Love to chat about it!!

Keeping you updated on the market! For the week of  August 27, 2012 MARKET RECAP Existing home sales gained traction in July, moving up 2.3 percent to 4.47 million units annualized, to partially reverse a 5.4-percent decline in June. The monthly existing home sales trend has been choppy for most of 2012, but going back to July 2011, the trend is mostly higher. Price concessions appeared to be occurring in more existing home markets (or perhaps fewer markets experienced sharper concessions) in July; the national median price for an existing home declined 0.8 percent to $187,300. When viewed from a longer-term perspective, though, the median price looks encouraging – up 9.4 percent year over year. Supply is one frequently mentioned factor for the choppy sales trend. Supply relative to the current sales rate is at 6.4 months, down from 6.5 months in June and 9.3 months in July 2011. Inventory levels remain far below the peak set in 2004. That's good news for prices, but maybe not so good news for sustaining an upward sales trajectory. New home sales, on the other hand, continually make gains. July sales increased 3.6 percent to an annualized rate of 372,000 units, which beat the consensus estimate by 2,000 units. If we go back to June 2011, the trend in new home sales has been mostly up, and mostly unbroken. As with existing home sales, new-home sales experienced a few more price concessions, though mostly in the lower-priced sectors. The national median price dropped 2.1 percent, to $224,200, for July. The dearth of inventory should keep future discounting in check. Inventory is a mere 4.6 months at the current sales pace, a 31-percent decline over the 6.7 months in July 2011. The positive trends in pricing and sales are welcomed news, to be sure. But that doesn't mean everyone is content. Sluggish job growth continues to weigh on the economy, while articles on shadow inventory continue to capture headlines. We are more sanguine than most on the housing recovery. The Wall Street Journal appears to share our sentiment. A recent WJS article reiterated a number of the more salient points we've been hitting on for the past year: namely that shadow inventory is a well-vetted issue, many of the homes in the inventory will never hit market because they are uninhabitable, many of the homes have been converted to rentals, and many of them have been disposed through orderly short sales. The most important takeaway is that shadow inventory is well vetted. It's never the known issues that sink a recovery, it's always the unknown issues – those lurking in the shadows. That said, shadow inventory has long ceased to lurk in the shadows, which is why it really is no longer shadow inventory. Economic Indicator Release Date and Time Consensus Estimate Analysis Consumer Confidence Index (August) Tues., Aug. 28, 10:00 am, et 66.2 Index Important. Recent improvements in retail and new-home sales point to rising confidence. Mortgage Applications Wed., Aug. 29, 7:00 am, et None Important. Purchase activity has stabilized; cash transactions continue to power sales gains. Gross Domestic Product (2nd Quarter 2012) Wed., Aug. 29, 8:30 am, et 1.8% (Annualized Growth) Important. GDP is being revised upward, which suggests economic growth is gaining pace. Pending Home Sales Index (July) Wed., Aug. 29, 10:00 am, et 100 Index Important.Increased contract signings point to future sales gains. Is This Trend Sustainable? Speaking of trends, we'd be remiss not to mention the trend in mortgage rates, which has been rising over the past month. Indeed, the rates on some mortgage products are up over 25 basis points. So the obvious question is, will the trend continue? Opinions are mixed, but they tend to lean toward the trend reversing. Some analysts believe that impending government spending cuts and tax increases, which could occur in 2013, will further slow economic growth. That means money will leave riskier investments like stocks and head for haven investments like U.S. Treasury securities. The demand for these securities, in turn, will lead to lower mortgage rates. Then again, maybe the economy isn't as bad as many economists believe. Housing has always been a key component in economic growth, and the outlook for housing is pretty darn good these days. In fact, Fannie Mae's Economic & Strategic Research Group believes that increases in residential construction will add 0.2 percentage points to gross domestic product this year. Housing construction and home sales have a cascading effect, producing additional demand for home furnishings and many other retail products and services. The rising trend in mortgage rates might be unsustainable, but even if rates reverse course, recent history suggests they aren't going to reverse much lower. Therefore, it's important to remind our home-purchase clients that rates have risen, but any savings achieved by waiting for a reversal could be offset by a higher purchase price. If you wish to unsubscribe, click on the link below and send the email.

Interest Rates Drive Market...Are You in Driver's Seat?

Time to talk interest rates...Again!!!


With the frequent mention of the stablized but not accelerating Real Estate sales nationwide, so much misinformation or at least misinterpretation of the "true nature of today's market" is too common.


The facts are very simple in most markets:


     Home prices are steady to rising slowly


     Short Sales and Foreclosure are still a meaningful 
         part of the market


    Banks will be required to reply to buyer contracts on Short Sales 
         and Foreclosures in under 30 days beginning July 1, 2012


    Qualified buyers are getting mortgages...just extra paperwork            
         required


    Interest rates are the lowest in history...last week's average
         30 year mortgage    3.75%
         15 year mortgage    2.25%


All these factors should motivate individuals and families needing a new place and investors looking to get in while the getting is good to "jump in" while the water is great.


Take interest rate benefit:


    The difference in Principal and Interest payment between 3.75% 
      mortgage(today) and a historical 'good' of 7% mortgage is as 
      follows:


                                        3.75%               7%          Monthly
      Mortgage                Payment          Payment     Savings


    $100,000                    $463                $665           $202 
   
    $200,000                    $926             $1330            $404


    $300,000                  $1347             $1996            $649


    $400,000                  $1796             $2661            $935


  To realize the real value of these rates, simply note that
  a buyer can buy a home with $400,000 mortgage for $200 per
  month less than Principal and Interest Payment on a $300,000
  mortgage at 7%.


  Now that is saving big dollars by striking when the fire is hot!!!


   And is it ever HOT!!!

Up Up and Away!!!!

Wake up Hampton Roads!!!


                           


It's official!!!  September continues the improving trend in home sales in Hampton Roads.   


REIN(Local MLS) reported the following highlights and summary based on all reported activity within Hampton Roads.  


A quick read of impressive results!!!! 
                

                                              September 2011 Highlights 

Listings:    
Residential active listings decreased, 16.6% year-over-year, to 12,894 (September 2011) from 15,467 (September 2010).

Under Contract (Pending) Residential Sales:
Total residential under contract sales increased by 27.8% as compared to September 2010 (1,603 vs.
1,254).
 
Sales:
Total property sales and total residential sales increased when compared to September 2010 showing
increases of 21.9% and 20.5% respectively.

Inventory: 
There is currently 8.8 months’ inventory of residential homes on the market in the Hampton Roads area,
a 5.1% decrease from the previous month and down 12.8% from September last year.    

                             September 2011 Summary 


All Categories          September 2011      September 2010            Percent Change 


Total Active Listings        15,683                     18,556                              -15.5%

Total Pending Sales           1,668                       1,316                                 26.7%

Total Residential                1,603                      1,254                                 27.8%  
  Pending Sales

Total Property Sales          1,625                       1,333                                21.9%

Total Residential Sales       1,550                       1,286                                 20.5%

Median Residential          $197,498                 $217,500                            -9.2%**
Sales Price

Months’ Supply                 8.8                           10.09                             -12.8%
 Inventory

 
* Months’ Supply Inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months average sales activity.

**Don't be dismayed at Median Sales Price....notes continue popularity of homes priced under $250,000 versus homes priced $400,000 and above.

Making the Most of Today's Market

Risk is Relative to the the Gain Reaped.


 Think about that for a minute.   We frequently take a risk for a probable gain.   Asking a girl out is always a risk of rejection but the hope of a great time or more.    Taking the job you had came with the risk of a crummy boss, a dead end position or worst but also with the hope of money to pay bills, promotions to extend the career or more.


Risk is simply part of life.  No doubt some people are great risk takers that many of us have no stomach to emulate.....we all know of the Edsels, .com boom/bust and like events where many risked and loss.  Yet, to set on the side line at this time in the Real Estate Market because it is a 'risk' to buy a home or an investment property is preposterous.


Though any investment has risks, when was buying something, anything at the lowest price "ever" from anxious or at least ready sellers a bad thing.   Don't we buy shoes when we can buy one and get the 2nd 1/2 off or cars with $5000 cash back??   Bargain prices reduce risk of dissatisfaction, unrealized loss in value and other dangers of "overprice" items.


And isn't there a "Sale" on homes these days???  So likewise, the risk of negative consequences is minimized by "sale priced homes".
Add financing rates at unheard of 4%, 30 year and below 4% 15 year terms, the risk is minimized by the low cost of money and the increased equity growth realized each payment due to the lower interest.   Yes!!   Capital growth due to low interest.


It is true...some savvy buyers and sellers have leveraged the "sale on homes" and low rates to make the move in 2011....especially in the past couple of months.  It is true due to job loss and such situations that not everyone, even the most savvy of people, can take advantage of this "low risk" environment.


Yet, what is holding you back???  


                    The risk too great????


I hope note for your sake!! 


                Don't believe risk doesn't exist! 


                                   But know that Opportunity is very REAL!