This week brings us the release of seven economic reports that are of interest to the mortgage market. The week also gets heavy in quarterly earnings releases for companies, which could cause significant movement in the stock markets again. The earnings results could affect bond trading as investors move funds into stocks if the reports are good. The other possibility is that the earnings reports would generally disappoint, meaning investors may move funds out of stocks and into bonds as a safe-haven. The latter would be good news for the bond market and mortgage rates.
The bond market is closed tomorrow in observance of the Columbus Day holiday and will reopen Tuesday morning. The first pieces of data come Wednesday morning, which are two of the week's more important releases. The first is September's Retail Sales report. This data is very important to the markets because it measures consumer spending by tracking sales at retail establishments in the U.S. S ince consumer spending makes up two-thirds of the U.S. economy, any related data is considered to be highly important. If we see weaker than expected readings in this report, the bond market should respond favorably and mortgage rates should drop. However, stronger than expected sales could fuel a stock rally and push mortgage rates higher. Current forecasts are calling for a 0.4% decline in sales.
September's Producer Price Index (PPI) is the second report of the day. This index measures inflationary pressures at the producer level of the economy and is also considered to be of high importance to the markets. Analysts are expecting to see a decline of 0.3% in the overall index and a 0.2% rise in the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices. A larger than expected increase could fuel inflation concerns in the bond market and push mortgage rates higher. But, weaker than expected readi ngs should lead to lower rates, especially if the sales report doesn't give us stronger than expected results.
Also scheduled for release Wednesday is the Fed Beige Book during afternoon trading. This data details economic conditions throughout the U.S. by region. It is relied upon heavily by the Federal Reserve during FOMC meetings when determining monetary policy. If it reveals stronger signs of inflation from the last release, we could see mortgage rates revise higher shortly after its 2:00 PM ET release.
Thursday morning also brings us two economic releases. The first is September's Consumer Price Index (CPI) that measures inflationary pressures at the consumer level of the economy and is one of the most important reports that the bond market gets each month. Analysts are expecting to see a rise of 0.1% in the overall index and an increase of 0.2% in the core data reading. A larger than expected increase in the core reading coul d raise inflation concerns in the bond market and push mortgage rates higher Thursday. However, a smaller than expected reading should ease inflation concerns and lead to lower mortgage rates.
September's Industrial Production data is the second release of the day and will be released mid-morning. It gives us an indication of manufacturing strength by tracking orders at U.S. factories, mines and utilities. It is expected to show a 0.8% drop in output from August's level, meaning that manufacturing activity fell sharply. A smaller than expected decline or an increase in output would be negative for bonds and mortgage rates while a larger drop should help push mortgage rates lower, assuming that the CPI shows favorable results.
The remaining two reports are both scheduled for release Friday morning. September's Housing Starts is the first, but is the week's least important piece of data. It gives us an indication of housing sector st rength and mortgage credit demand, but usually is not a mover of mortgage rates. It is expected to show a decline in starts of new homes last month. If it varies greatly from forecasts, we could see the bond market have some reaction to the news, but probably not enough to cause much movement in rates.
The last report of the week is October's preliminary reading to the University of Michigan's Index of Consumer Sentiment late Friday morning. This index measures consumer willingness to spend and usually has a moderate impact on the financial markets. If it shows a sizable decline in consumer confidence, bond prices will probably rise. It is expected to show a reading of 69.0, down from September's final of 70.3.
Overall, I am expecting to see a fair amount of movement in mortgage rates this week, but mostly the latter part of the week. The key reports are Wednesday's PPI and Retail Sales reports and Thursday's CPI data. But as we saw last week, we certainly don't need factual economic releases to see mortgage rates move. I am thinking we may still see plenty of volatility in the stock markets that may affect bond prices also. Accordingly, please proceed cautiously if you have not locked an interest rates yet.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
Showing posts with label Realtor. Show all posts
Showing posts with label Realtor. Show all posts
Wednesday, October 15, 2008
Rate Lock Advisory
This week brings us the release of seven economic reports that are of interest to the mortgage market. The week also gets heavy in quarterly earnings releases for companies, which could cause significant movement in the stock markets again. The earnings results could affect bond trading as investors move funds into stocks if the reports are good. The other possibility is that the earnings reports would generally disappoint, meaning investors may move funds out of stocks and into bonds as a safe-haven. The latter would be good news for the bond market and mortgage rates.
The bond market is closed tomorrow in observance of the Columbus Day holiday and will reopen Tuesday morning. The first pieces of data come Wednesday morning, which are two of the week's more important releases. The first is September's Retail Sales report. This data is very important to the markets because it measures consumer spending by tracking sales at retail establishments in the U.S. S ince consumer spending makes up two-thirds of the U.S. economy, any related data is considered to be highly important. If we see weaker than expected readings in this report, the bond market should respond favorably and mortgage rates should drop. However, stronger than expected sales could fuel a stock rally and push mortgage rates higher. Current forecasts are calling for a 0.4% decline in sales.
September's Producer Price Index (PPI) is the second report of the day. This index measures inflationary pressures at the producer level of the economy and is also considered to be of high importance to the markets. Analysts are expecting to see a decline of 0.3% in the overall index and a 0.2% rise in the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices. A larger than expected increase could fuel inflation concerns in the bond market and push mortgage rates higher. But, weaker than expected readi ngs should lead to lower rates, especially if the sales report doesn't give us stronger than expected results.
Also scheduled for release Wednesday is the Fed Beige Book during afternoon trading. This data details economic conditions throughout the U.S. by region. It is relied upon heavily by the Federal Reserve during FOMC meetings when determining monetary policy. If it reveals stronger signs of inflation from the last release, we could see mortgage rates revise higher shortly after its 2:00 PM ET release.
Thursday morning also brings us two economic releases. The first is September's Consumer Price Index (CPI) that measures inflationary pressures at the consumer level of the economy and is one of the most important reports that the bond market gets each month. Analysts are expecting to see a rise of 0.1% in the overall index and an increase of 0.2% in the core data reading. A larger than expected increase in the core reading coul d raise inflation concerns in the bond market and push mortgage rates higher Thursday. However, a smaller than expected reading should ease inflation concerns and lead to lower mortgage rates.
September's Industrial Production data is the second release of the day and will be released mid-morning. It gives us an indication of manufacturing strength by tracking orders at U.S. factories, mines and utilities. It is expected to show a 0.8% drop in output from August's level, meaning that manufacturing activity fell sharply. A smaller than expected decline or an increase in output would be negative for bonds and mortgage rates while a larger drop should help push mortgage rates lower, assuming that the CPI shows favorable results.
The remaining two reports are both scheduled for release Friday morning. September's Housing Starts is the first, but is the week's least important piece of data. It gives us an indication of housing sector st rength and mortgage credit demand, but usually is not a mover of mortgage rates. It is expected to show a decline in starts of new homes last month. If it varies greatly from forecasts, we could see the bond market have some reaction to the news, but probably not enough to cause much movement in rates.
The last report of the week is October's preliminary reading to the University of Michigan's Index of Consumer Sentiment late Friday morning. This index measures consumer willingness to spend and usually has a moderate impact on the financial markets. If it shows a sizable decline in consumer confidence, bond prices will probably rise. It is expected to show a reading of 69.0, down from September's final of 70.3.
Overall, I am expecting to see a fair amount of movement in mortgage rates this week, but mostly the latter part of the week. The key reports are Wednesday's PPI and Retail Sales reports and Thursday's CPI data. But as we saw last week, we certainly don't need factual economic releases to see mortgage rates move. I am thinking we may still see plenty of volatility in the stock markets that may affect bond prices also. Accordingly, please proceed cautiously if you have not locked an interest rates yet.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
The bond market is closed tomorrow in observance of the Columbus Day holiday and will reopen Tuesday morning. The first pieces of data come Wednesday morning, which are two of the week's more important releases. The first is September's Retail Sales report. This data is very important to the markets because it measures consumer spending by tracking sales at retail establishments in the U.S. S ince consumer spending makes up two-thirds of the U.S. economy, any related data is considered to be highly important. If we see weaker than expected readings in this report, the bond market should respond favorably and mortgage rates should drop. However, stronger than expected sales could fuel a stock rally and push mortgage rates higher. Current forecasts are calling for a 0.4% decline in sales.
September's Producer Price Index (PPI) is the second report of the day. This index measures inflationary pressures at the producer level of the economy and is also considered to be of high importance to the markets. Analysts are expecting to see a decline of 0.3% in the overall index and a 0.2% rise in the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices. A larger than expected increase could fuel inflation concerns in the bond market and push mortgage rates higher. But, weaker than expected readi ngs should lead to lower rates, especially if the sales report doesn't give us stronger than expected results.
Also scheduled for release Wednesday is the Fed Beige Book during afternoon trading. This data details economic conditions throughout the U.S. by region. It is relied upon heavily by the Federal Reserve during FOMC meetings when determining monetary policy. If it reveals stronger signs of inflation from the last release, we could see mortgage rates revise higher shortly after its 2:00 PM ET release.
Thursday morning also brings us two economic releases. The first is September's Consumer Price Index (CPI) that measures inflationary pressures at the consumer level of the economy and is one of the most important reports that the bond market gets each month. Analysts are expecting to see a rise of 0.1% in the overall index and an increase of 0.2% in the core data reading. A larger than expected increase in the core reading coul d raise inflation concerns in the bond market and push mortgage rates higher Thursday. However, a smaller than expected reading should ease inflation concerns and lead to lower mortgage rates.
September's Industrial Production data is the second release of the day and will be released mid-morning. It gives us an indication of manufacturing strength by tracking orders at U.S. factories, mines and utilities. It is expected to show a 0.8% drop in output from August's level, meaning that manufacturing activity fell sharply. A smaller than expected decline or an increase in output would be negative for bonds and mortgage rates while a larger drop should help push mortgage rates lower, assuming that the CPI shows favorable results.
The remaining two reports are both scheduled for release Friday morning. September's Housing Starts is the first, but is the week's least important piece of data. It gives us an indication of housing sector st rength and mortgage credit demand, but usually is not a mover of mortgage rates. It is expected to show a decline in starts of new homes last month. If it varies greatly from forecasts, we could see the bond market have some reaction to the news, but probably not enough to cause much movement in rates.
The last report of the week is October's preliminary reading to the University of Michigan's Index of Consumer Sentiment late Friday morning. This index measures consumer willingness to spend and usually has a moderate impact on the financial markets. If it shows a sizable decline in consumer confidence, bond prices will probably rise. It is expected to show a reading of 69.0, down from September's final of 70.3.
Overall, I am expecting to see a fair amount of movement in mortgage rates this week, but mostly the latter part of the week. The key reports are Wednesday's PPI and Retail Sales reports and Thursday's CPI data. But as we saw last week, we certainly don't need factual economic releases to see mortgage rates move. I am thinking we may still see plenty of volatility in the stock markets that may affect bond prices also. Accordingly, please proceed cautiously if you have not locked an interest rates yet.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
Tuesday, September 30, 2008
To finance or not to finance....
Tuesday's bond market has well in negative territory following a stock rebound that has shifted funds back away from bonds. The stock markets are rebounding after yesterday's walloping with the Dow up 260 points and the Nasdaq up 30 points. This means that the major stock indexes have recovered approximately one-third of yesterday's losses. The bond market benefited form yesterday's stock sell-off but is suffering today as investors move funds back into stocks. The result is the bond market down 13/32 that will likely push this morning's mortgage rates higher by approximately .250 of a discount point.
Today's only economic news was September's Consumer Confidence Index (CCI). It showed a reading of 59.8 that was much higher than forecasts had called for. Analysts were expecting to see a reading of 55.0, meaning that consumers had more confidence in their own financial situation than was expected. This is considered bad news for bonds and mortgage rates because it indicates that consumers are more willing to make large purchases in the near future.
Tomorrow only relevant data is the Institute for Supply Management's (ISM) manufacturing index for September. This index gives us an indication of manufacturer sentiment. Analysts are expecting to see a 0.4 decline from last month's 49.9 reading. The 50.0 benchmark is extremely important because a reading below that level means more surveyed executives felt business worsened than those who said it had improved. This data is important not only because it measures manufacturer sentiment, but it is very recent data. Some economic releases track data that are 30-60 days old, but the ISM index is only a few weeks old. If we get a smaller than expected reading, I expect to see the bond market rally and mortgage rates fall tomorrow morning.
We need to keep an eye on the stock markets and Fed bailout attempt. I don't think we will see much come today as the markets take a breather, but we probably will see more volatility in stocks before the end of the week. This could affect bond prices and mortgage rates. Generally speaking, look for stock weakness to lead to bond gains and lower mortgage rates as investors move funds into the safety of bonds. If the stock markets continue to move higher, we should see bonds suffer and mortgage rates move higher.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
Today's only economic news was September's Consumer Confidence Index (CCI). It showed a reading of 59.8 that was much higher than forecasts had called for. Analysts were expecting to see a reading of 55.0, meaning that consumers had more confidence in their own financial situation than was expected. This is considered bad news for bonds and mortgage rates because it indicates that consumers are more willing to make large purchases in the near future.
Tomorrow only relevant data is the Institute for Supply Management's (ISM) manufacturing index for September. This index gives us an indication of manufacturer sentiment. Analysts are expecting to see a 0.4 decline from last month's 49.9 reading. The 50.0 benchmark is extremely important because a reading below that level means more surveyed executives felt business worsened than those who said it had improved. This data is important not only because it measures manufacturer sentiment, but it is very recent data. Some economic releases track data that are 30-60 days old, but the ISM index is only a few weeks old. If we get a smaller than expected reading, I expect to see the bond market rally and mortgage rates fall tomorrow morning.
We need to keep an eye on the stock markets and Fed bailout attempt. I don't think we will see much come today as the markets take a breather, but we probably will see more volatility in stocks before the end of the week. This could affect bond prices and mortgage rates. Generally speaking, look for stock weakness to lead to bond gains and lower mortgage rates as investors move funds into the safety of bonds. If the stock markets continue to move higher, we should see bonds suffer and mortgage rates move higher.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
To finance or not to finance....
Tuesday's bond market has well in negative territory following a stock rebound that has shifted funds back away from bonds. The stock markets are rebounding after yesterday's walloping with the Dow up 260 points and the Nasdaq up 30 points. This means that the major stock indexes have recovered approximately one-third of yesterday's losses. The bond market benefited form yesterday's stock sell-off but is suffering today as investors move funds back into stocks. The result is the bond market down 13/32 that will likely push this morning's mortgage rates higher by approximately .250 of a discount point.
Today's only economic news was September's Consumer Confidence Index (CCI). It showed a reading of 59.8 that was much higher than forecasts had called for. Analysts were expecting to see a reading of 55.0, meaning that consumers had more confidence in their own financial situation than was expected. This is considered bad news for bonds and mortgage rates because it indicates that consumers are more willing to make large purchases in the near future.
Tomorrow only relevant data is the Institute for Supply Management's (ISM) manufacturing index for September. This index gives us an indication of manufacturer sentiment. Analysts are expecting to see a 0.4 decline from last month's 49.9 reading. The 50.0 benchmark is extremely important because a reading below that level means more surveyed executives felt business worsened than those who said it had improved. This data is important not only because it measures manufacturer sentiment, but it is very recent data. Some economic releases track data that are 30-60 days old, but the ISM index is only a few weeks old. If we get a smaller than expected reading, I expect to see the bond market rally and mortgage rates fall tomorrow morning.
We need to keep an eye on the stock markets and Fed bailout attempt. I don't think we will see much come today as the markets take a breather, but we probably will see more volatility in stocks before the end of the week. This could affect bond prices and mortgage rates. Generally speaking, look for stock weakness to lead to bond gains and lower mortgage rates as investors move funds into the safety of bonds. If the stock markets continue to move higher, we should see bonds suffer and mortgage rates move higher.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
Today's only economic news was September's Consumer Confidence Index (CCI). It showed a reading of 59.8 that was much higher than forecasts had called for. Analysts were expecting to see a reading of 55.0, meaning that consumers had more confidence in their own financial situation than was expected. This is considered bad news for bonds and mortgage rates because it indicates that consumers are more willing to make large purchases in the near future.
Tomorrow only relevant data is the Institute for Supply Management's (ISM) manufacturing index for September. This index gives us an indication of manufacturer sentiment. Analysts are expecting to see a 0.4 decline from last month's 49.9 reading. The 50.0 benchmark is extremely important because a reading below that level means more surveyed executives felt business worsened than those who said it had improved. This data is important not only because it measures manufacturer sentiment, but it is very recent data. Some economic releases track data that are 30-60 days old, but the ISM index is only a few weeks old. If we get a smaller than expected reading, I expect to see the bond market rally and mortgage rates fall tomorrow morning.
We need to keep an eye on the stock markets and Fed bailout attempt. I don't think we will see much come today as the markets take a breather, but we probably will see more volatility in stocks before the end of the week. This could affect bond prices and mortgage rates. Generally speaking, look for stock weakness to lead to bond gains and lower mortgage rates as investors move funds into the safety of bonds. If the stock markets continue to move higher, we should see bonds suffer and mortgage rates move higher.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
Thursday, September 18, 2008
First Ever Video Walkthrough Tour by The Avery Group
The first video walkthrough tour by The Avery Group. This is a home we have listed in Gordonsville, VA. 19408 Lovers Lane.
I have some work to do to get this all perfected, but it is coming along and before you know it, video walkthrough tours will be a permanent part of Avery Group listings!
I have some work to do to get this all perfected, but it is coming along and before you know it, video walkthrough tours will be a permanent part of Avery Group listings!
First Ever Video Walkthrough Tour by The Avery Group
The first video walkthrough tour by The Avery Group. This is a home we have listed in Gordonsville, VA. 19408 Lovers Lane.
I have some work to do to get this all perfected, but it is coming along and before you know it, video walkthrough tours will be a permanent part of Avery Group listings!
I have some work to do to get this all perfected, but it is coming along and before you know it, video walkthrough tours will be a permanent part of Avery Group listings!
Monday, September 15, 2008
Avery Group to Start Video Tours of Homes!
With the addition of a Sony Full HD 1920x1080i Handycam to the Avery Group, we will start doing video walkthroughs of homes. This should be a serious step up from the old fashioned Virtual Tours. Especially since Virtual Tours are, more often than not, glorified slideshows. This should give more information and more detail of a home than still pictures stitched together. This will be a huge step forward for the technology that is already incorporated in the Real Estate Practices of the Avery Group. The first tour should be ready by the end of this week and we will be walking through 19408 Lovers Lane. I will keep you posted...
Avery Group to Start Video Tours of Homes!
With the addition of a Sony Full HD 1920x1080i Handycam to the Avery Group, we will start doing video walkthroughs of homes. This should be a serious step up from the old fashioned Virtual Tours. Especially since Virtual Tours are, more often than not, glorified slideshows. This should give more information and more detail of a home than still pictures stitched together. This will be a huge step forward for the technology that is already incorporated in the Real Estate Practices of the Avery Group. The first tour should be ready by the end of this week and we will be walking through 19408 Lovers Lane. I will keep you posted...
Tuesday, September 9, 2008
A Lender's Views on the Short Sale, Foreclosure
I was speaking with a mortgage loan officer today about the short sale, foreclosure, and mortgage "crisis" and his point of view was so interesting, I got him to put it in writing so I could share it. Here it goes:
FANNIE MAE AND FREDIE MAC TAKE OVER:
"The government is spending our dollars again"
"The mortgage companies have caused this debacle"
"The loan officer is a cheat and thief"
"My Realtor made me do it"
"It wasn’t explained to me"
"ITS NOT MY FAULT"-----------BALONEY
Lets put the blame where it truly belongs. It was and is the general public who is at fault. More specifically all those poor little folks who are having their homes taken from them because they can’t make their payments because they bought more than they should have, never paid their bills on time and want to have everything handed to them on a silver platter. SORRY you have been screwed blued and tattooed. In other words you deserve what you got or are getting. Grow up. Learn to pay your bills on time; learn to be honest about how much income you make, disclose the proper income on your tax returns... In my 20 years I have never seen more people think they deserve to have a home and therefore it should be handed to them. How any times have you wondered how your friend who has all the expensive toys yet works with so you know what they make, yet they can buy the 500,000 home. Guess what they don’t have that home now do they. And guess again who is paying for it one way or the other. That’s right, YOU ARE. Whose fault is it? Not mine. It comes down to Greed. Greed of the homeowner for wanting the mansion, GREED of the Realtor for wanting the commission, GREED of the loan officer for making the sub prime loan for the commission, Greed of the investors you wanted more income and GREED of the bond traders that gave the loan officers the guidelines.
I may sound harsh and unfeeling, it some ways I am, but in others I want to show the compassion to the hard working folks that have worked for what they have and take pride in that. Those hardworking folks that are having there homes taken because of the dishonesty of others should be helped, those people that are having there homes taken due to a loss of job or medical reasons should be helped, but the greedy home owners, they have gotten what they deserve.
Leonard Winslow, Mortgage Loan Officer
Gateway Bank Mortgage, INC.
Wow, those are some powerful words. Let us know what you think by posting comments!
Charlottesville Real Estate
Avery Group
Forest Lakes Real Estate
Charlottesville Real Estate Blog
FANNIE MAE AND FREDIE MAC TAKE OVER:
"The government is spending our dollars again"
"The mortgage companies have caused this debacle"
"The loan officer is a cheat and thief"
"My Realtor made me do it"
"It wasn’t explained to me"
"ITS NOT MY FAULT"-----------BALONEY
Lets put the blame where it truly belongs. It was and is the general public who is at fault. More specifically all those poor little folks who are having their homes taken from them because they can’t make their payments because they bought more than they should have, never paid their bills on time and want to have everything handed to them on a silver platter. SORRY you have been screwed blued and tattooed. In other words you deserve what you got or are getting. Grow up. Learn to pay your bills on time; learn to be honest about how much income you make, disclose the proper income on your tax returns... In my 20 years I have never seen more people think they deserve to have a home and therefore it should be handed to them. How any times have you wondered how your friend who has all the expensive toys yet works with so you know what they make, yet they can buy the 500,000 home. Guess what they don’t have that home now do they. And guess again who is paying for it one way or the other. That’s right, YOU ARE. Whose fault is it? Not mine. It comes down to Greed. Greed of the homeowner for wanting the mansion, GREED of the Realtor for wanting the commission, GREED of the loan officer for making the sub prime loan for the commission, Greed of the investors you wanted more income and GREED of the bond traders that gave the loan officers the guidelines.
I may sound harsh and unfeeling, it some ways I am, but in others I want to show the compassion to the hard working folks that have worked for what they have and take pride in that. Those hardworking folks that are having there homes taken because of the dishonesty of others should be helped, those people that are having there homes taken due to a loss of job or medical reasons should be helped, but the greedy home owners, they have gotten what they deserve.
Leonard Winslow, Mortgage Loan Officer
Gateway Bank Mortgage, INC.
Wow, those are some powerful words. Let us know what you think by posting comments!
Charlottesville Real Estate
Avery Group
Forest Lakes Real Estate
Charlottesville Real Estate Blog
A Lender's Views on the Short Sale, Foreclosure
I was speaking with a mortgage loan officer today about the short sale, foreclosure, and mortgage "crisis" and his point of view was so interesting, I got him to put it in writing so I could share it. Here it goes:
FANNIE MAE AND FREDIE MAC TAKE OVER:
"The government is spending our dollars again"
"The mortgage companies have caused this debacle"
"The loan officer is a cheat and thief"
"My Realtor made me do it"
"It wasn’t explained to me"
"ITS NOT MY FAULT"-----------BALONEY
Lets put the blame where it truly belongs. It was and is the general public who is at fault. More specifically all those poor little folks who are having their homes taken from them because they can’t make their payments because they bought more than they should have, never paid their bills on time and want to have everything handed to them on a silver platter. SORRY you have been screwed blued and tattooed. In other words you deserve what you got or are getting. Grow up. Learn to pay your bills on time; learn to be honest about how much income you make, disclose the proper income on your tax returns... In my 20 years I have never seen more people think they deserve to have a home and therefore it should be handed to them. How any times have you wondered how your friend who has all the expensive toys yet works with so you know what they make, yet they can buy the 500,000 home. Guess what they don’t have that home now do they. And guess again who is paying for it one way or the other. That’s right, YOU ARE. Whose fault is it? Not mine. It comes down to Greed. Greed of the homeowner for wanting the mansion, GREED of the Realtor for wanting the commission, GREED of the loan officer for making the sub prime loan for the commission, Greed of the investors you wanted more income and GREED of the bond traders that gave the loan officers the guidelines.
I may sound harsh and unfeeling, it some ways I am, but in others I want to show the compassion to the hard working folks that have worked for what they have and take pride in that. Those hardworking folks that are having there homes taken because of the dishonesty of others should be helped, those people that are having there homes taken due to a loss of job or medical reasons should be helped, but the greedy home owners, they have gotten what they deserve.
Leonard Winslow, Mortgage Loan Officer
Gateway Bank Mortgage, INC.
Wow, those are some powerful words. Let us know what you think by posting comments!
Charlottesville Real Estate
Avery Group
Forest Lakes Real Estate
Charlottesville Real Estate Blog
FANNIE MAE AND FREDIE MAC TAKE OVER:
"The government is spending our dollars again"
"The mortgage companies have caused this debacle"
"The loan officer is a cheat and thief"
"My Realtor made me do it"
"It wasn’t explained to me"
"ITS NOT MY FAULT"-----------BALONEY
Lets put the blame where it truly belongs. It was and is the general public who is at fault. More specifically all those poor little folks who are having their homes taken from them because they can’t make their payments because they bought more than they should have, never paid their bills on time and want to have everything handed to them on a silver platter. SORRY you have been screwed blued and tattooed. In other words you deserve what you got or are getting. Grow up. Learn to pay your bills on time; learn to be honest about how much income you make, disclose the proper income on your tax returns... In my 20 years I have never seen more people think they deserve to have a home and therefore it should be handed to them. How any times have you wondered how your friend who has all the expensive toys yet works with so you know what they make, yet they can buy the 500,000 home. Guess what they don’t have that home now do they. And guess again who is paying for it one way or the other. That’s right, YOU ARE. Whose fault is it? Not mine. It comes down to Greed. Greed of the homeowner for wanting the mansion, GREED of the Realtor for wanting the commission, GREED of the loan officer for making the sub prime loan for the commission, Greed of the investors you wanted more income and GREED of the bond traders that gave the loan officers the guidelines.
I may sound harsh and unfeeling, it some ways I am, but in others I want to show the compassion to the hard working folks that have worked for what they have and take pride in that. Those hardworking folks that are having there homes taken because of the dishonesty of others should be helped, those people that are having there homes taken due to a loss of job or medical reasons should be helped, but the greedy home owners, they have gotten what they deserve.
Leonard Winslow, Mortgage Loan Officer
Gateway Bank Mortgage, INC.
Wow, those are some powerful words. Let us know what you think by posting comments!
Charlottesville Real Estate
Avery Group
Forest Lakes Real Estate
Charlottesville Real Estate Blog
Friday, May 2, 2008
Charlottesville Real Estate Market Update April 2008
Charlottesville Real Estate Market Update for April 2008
New Listings in April
Number of New Listings: 526
Median Price: $299,000
Average List Price: $458,705
Contingent Listings in April
Number of Contingent Properties: 252
Median Price: $275,000
Average List Price: $389,872
Average Days on Market:123
Pending Listings in April
Number of Pending Listings: 89
Median Price: $289,500
Average List Price: $403,414
Average Days on Market: 135
Sold Listings In April
Number of Sold Listings: 190
Total Sold Volume: $58,567,425
Median Price: $266,250
Average List Price: $322,273
Average Sold Price: $308,250
Percentage of Sold Price to List Price: 95.65%
Average Days on Market: 125
Currently Active Properties in our MLS: 2,513
Median Price: $324,000
Average List Price: $611,124
Average Days on Market: 143
Months of Inventory: 17.33
**All numbers reflect data from the CAAR MLS in the areas of Charlottesville, Albemarle, Greene, Fluvanna, Louisa and Orange
Our months of inventory dropped again. It's down to 17.33 from 18.90 in March. This means that Real Estate is picking up, which isn't a surprise since this area has always seen an increase in activity in the Spring. Just like in March, most people are selling their home about 5% less than their asking price. Keep that in mind while you are negotiating your offers.
Charlottesville Real Estate Market Update April 2008
Charlottesville Real Estate Market Update for April 2008
New Listings in April
Number of New Listings: 526
Median Price: $299,000
Average List Price: $458,705
Contingent Listings in April
Number of Contingent Properties: 252
Median Price: $275,000
Average List Price: $389,872
Average Days on Market:123
Pending Listings in April
Number of Pending Listings: 89
Median Price: $289,500
Average List Price: $403,414
Average Days on Market: 135
Sold Listings In April
Number of Sold Listings: 190
Total Sold Volume: $58,567,425
Median Price: $266,250
Average List Price: $322,273
Average Sold Price: $308,250
Percentage of Sold Price to List Price: 95.65%
Average Days on Market: 125
Currently Active Properties in our MLS: 2,513
Median Price: $324,000
Average List Price: $611,124
Average Days on Market: 143
Months of Inventory: 17.33
**All numbers reflect data from the CAAR MLS in the areas of Charlottesville, Albemarle, Greene, Fluvanna, Louisa and Orange
Our months of inventory dropped again. It's down to 17.33 from 18.90 in March. This means that Real Estate is picking up, which isn't a surprise since this area has always seen an increase in activity in the Spring. Just like in March, most people are selling their home about 5% less than their asking price. Keep that in mind while you are negotiating your offers.
Tuesday, April 22, 2008
The Real Estate Mexican Standoff
Here is a quote from the First Quarter Market Report written by Dave Phillips CEO of the Charlottesville Association of Realtors.
Play the game, there are a number of people out there trying to move their money out of Real Estate and just want anything they can get. Make an offer, if they reject, move to the next one. In the words of NIKE, Just Do It. You can find really good deals in a market such as this.
Read the entire 1st Quarter Market Report
"Simply put, there are too many homes on the market right now. This surplus of inventory should keep prices low as sellers are forced to offer “good deals” in a very competitive marketplace. There is a direct, inverse relationship between inventory and prices. The more homes we have on the market, the more pressure there is on sellers to keep prices down. For this reason, we do not expect home prices in the area to increase in the near future.This is a very accurate statement about the status of our market. It's almost as if buyers and sellers are in an old fashioned Mexican Standoff. Buyers continue to wait for prices to come down, while sellers are resisting the trend. I do have to take this opportunity to say THIS IS A GOOD TIME TO BUY REAL ESTATE.
Currently, we have 3,673 homes on the market, compared to 3,100 at this time last year. The median price of these homes for sale is $319,000. The average DOM (days on market) of these homes is 147 days. It is a great time for first-time buyers, because there are 663 homes for sale under $200,000 with an average DOM of 130. There are 576 homes currently on the market priced at a million dollars or more, with an average DOM of 200."
Play the game, there are a number of people out there trying to move their money out of Real Estate and just want anything they can get. Make an offer, if they reject, move to the next one. In the words of NIKE, Just Do It. You can find really good deals in a market such as this.
Read the entire 1st Quarter Market Report
The Real Estate Mexican Standoff
Here is a quote from the First Quarter Market Report written by Dave Phillips CEO of the Charlottesville Association of Realtors.
Play the game, there are a number of people out there trying to move their money out of Real Estate and just want anything they can get. Make an offer, if they reject, move to the next one. In the words of NIKE, Just Do It. You can find really good deals in a market such as this.
Read the entire 1st Quarter Market Report
"Simply put, there are too many homes on the market right now. This surplus of inventory should keep prices low as sellers are forced to offer “good deals” in a very competitive marketplace. There is a direct, inverse relationship between inventory and prices. The more homes we have on the market, the more pressure there is on sellers to keep prices down. For this reason, we do not expect home prices in the area to increase in the near future.This is a very accurate statement about the status of our market. It's almost as if buyers and sellers are in an old fashioned Mexican Standoff. Buyers continue to wait for prices to come down, while sellers are resisting the trend. I do have to take this opportunity to say THIS IS A GOOD TIME TO BUY REAL ESTATE.
Currently, we have 3,673 homes on the market, compared to 3,100 at this time last year. The median price of these homes for sale is $319,000. The average DOM (days on market) of these homes is 147 days. It is a great time for first-time buyers, because there are 663 homes for sale under $200,000 with an average DOM of 130. There are 576 homes currently on the market priced at a million dollars or more, with an average DOM of 200."
Play the game, there are a number of people out there trying to move their money out of Real Estate and just want anything they can get. Make an offer, if they reject, move to the next one. In the words of NIKE, Just Do It. You can find really good deals in a market such as this.
Read the entire 1st Quarter Market Report
Thursday, April 3, 2008
Charlottesville Real Estate Market Update - March 2008
Let's take a look at the Charlottesville Real Estate Market for March:
Number of Homes Listed for Sale: 3642
Number of Homes Sold in March: 195
Months of Inventory: 18.90 (down from 20 at the beginning of the year)
Average Sold Price in March: $322,206
Average List Price in March: $338,517
Average Days on Market: 130
Percentage of Selling Price to List Price: 95.18%
Total of Sold Properties in March: $66,830,132
Conclusions:
With over $66 million dollars in Real Estate sold last month, people are buying. This is a good trend compared to the start of this year, with total monthly sold properties in the $50 million range. This shows more people are getting involved in the Charlottesville Real Estate Market. This probably has a lot to do with Match Day at UVA and the NGIC expanding. A couple things to note here as well, the Months of Inventory went down as well, so the Charlottesville Real Estate Market is leveling out just nicely. Most sellers are ratifying offers within 5% of their asking price, so keep that in mind if you are currently selling a home or thinking about selling a home.
Charlottesville Real Estate Market Update - March 2008
Let's take a look at the Charlottesville Real Estate Market for March:
Number of Homes Listed for Sale: 3642
Number of Homes Sold in March: 195
Months of Inventory: 18.90 (down from 20 at the beginning of the year)
Average Sold Price in March: $322,206
Average List Price in March: $338,517
Average Days on Market: 130
Percentage of Selling Price to List Price: 95.18%
Total of Sold Properties in March: $66,830,132
Conclusions:
With over $66 million dollars in Real Estate sold last month, people are buying. This is a good trend compared to the start of this year, with total monthly sold properties in the $50 million range. This shows more people are getting involved in the Charlottesville Real Estate Market. This probably has a lot to do with Match Day at UVA and the NGIC expanding. A couple things to note here as well, the Months of Inventory went down as well, so the Charlottesville Real Estate Market is leveling out just nicely. Most sellers are ratifying offers within 5% of their asking price, so keep that in mind if you are currently selling a home or thinking about selling a home.
Tuesday, April 1, 2008
Foreclosure Lesson #7 - Types of Foreclosures
There are many types of foreclosures, so we will start by defining foreclosure. A foreclosure is a legal process in which a lender sells or seizes a person's property to recoup and repay the debt attached to that parcel. When this happens, there are a few crucial steps.
First, the lending institution notifies the owner in writing that they are in default of payment. This is known as the Notice of Default (NOD). After 3 consecutive payments are missed, the lender will bring in an attorney and the attorney will send a letter. If no payments are made, the lender may request to have the property sold at auction.
The first type of Foreclosure is a Judicial Foreclosure. This is when the lender brings a lawsuit against the borrower. It starts with a summons and complaint served upon the borrower. If the borrower doesn't respond or pay the fees, the lender gets a judgement by default. The lender must advertise a notice of sale in the newspaper for a certain period of time, then the public sale is conducted and the property goes to the highest bidder.
The second type of Foreclosure is a Nonjudicial Foreclosure, also known as a power of sale. This is when the borrower gives a deed of trust to a trustee to hold for the lender. Upon default, the lender simply files a notice of default and a notice of sale, which is published in the newspaper. It then gets sold to the highest bidder.
The third type of foreclosure is a Strict Foreclosure. In this scenario, there is no sale required.
The borrower has a certain amount of time to pay what is owed. After that date, the title reverts to the lender.
Check with your state to find out which foreclosures are practiced. Virginia only does Judicial and Nonjudicial Foreclosures. Its about a 45 day process, and the lender is only required to advertise the sale for 14-28 days. Of course, there are a multitude of ways to find foreclosures, not just the newspaper. Depending on the interest I get from these articles, I might get into that as well. Good Luck!
Charlottesville Real Estate
First, the lending institution notifies the owner in writing that they are in default of payment. This is known as the Notice of Default (NOD). After 3 consecutive payments are missed, the lender will bring in an attorney and the attorney will send a letter. If no payments are made, the lender may request to have the property sold at auction.
The first type of Foreclosure is a Judicial Foreclosure. This is when the lender brings a lawsuit against the borrower. It starts with a summons and complaint served upon the borrower. If the borrower doesn't respond or pay the fees, the lender gets a judgement by default. The lender must advertise a notice of sale in the newspaper for a certain period of time, then the public sale is conducted and the property goes to the highest bidder.
The second type of Foreclosure is a Nonjudicial Foreclosure, also known as a power of sale. This is when the borrower gives a deed of trust to a trustee to hold for the lender. Upon default, the lender simply files a notice of default and a notice of sale, which is published in the newspaper. It then gets sold to the highest bidder.
The third type of foreclosure is a Strict Foreclosure. In this scenario, there is no sale required.
The borrower has a certain amount of time to pay what is owed. After that date, the title reverts to the lender.
Check with your state to find out which foreclosures are practiced. Virginia only does Judicial and Nonjudicial Foreclosures. Its about a 45 day process, and the lender is only required to advertise the sale for 14-28 days. Of course, there are a multitude of ways to find foreclosures, not just the newspaper. Depending on the interest I get from these articles, I might get into that as well. Good Luck!
Charlottesville Real Estate
Foreclosure Lesson #7 - Types of Foreclosures
There are many types of foreclosures, so we will start by defining foreclosure. A foreclosure is a legal process in which a lender sells or seizes a person's property to recoup and repay the debt attached to that parcel. When this happens, there are a few crucial steps.
First, the lending institution notifies the owner in writing that they are in default of payment. This is known as the Notice of Default (NOD). After 3 consecutive payments are missed, the lender will bring in an attorney and the attorney will send a letter. If no payments are made, the lender may request to have the property sold at auction.
The first type of Foreclosure is a Judicial Foreclosure. This is when the lender brings a lawsuit against the borrower. It starts with a summons and complaint served upon the borrower. If the borrower doesn't respond or pay the fees, the lender gets a judgement by default. The lender must advertise a notice of sale in the newspaper for a certain period of time, then the public sale is conducted and the property goes to the highest bidder.
The second type of Foreclosure is a Nonjudicial Foreclosure, also known as a power of sale. This is when the borrower gives a deed of trust to a trustee to hold for the lender. Upon default, the lender simply files a notice of default and a notice of sale, which is published in the newspaper. It then gets sold to the highest bidder.
The third type of foreclosure is a Strict Foreclosure. In this scenario, there is no sale required.
The borrower has a certain amount of time to pay what is owed. After that date, the title reverts to the lender.
Check with your state to find out which foreclosures are practiced. Virginia only does Judicial and Nonjudicial Foreclosures. Its about a 45 day process, and the lender is only required to advertise the sale for 14-28 days. Of course, there are a multitude of ways to find foreclosures, not just the newspaper. Depending on the interest I get from these articles, I might get into that as well. Good Luck!
Charlottesville Real Estate
First, the lending institution notifies the owner in writing that they are in default of payment. This is known as the Notice of Default (NOD). After 3 consecutive payments are missed, the lender will bring in an attorney and the attorney will send a letter. If no payments are made, the lender may request to have the property sold at auction.
The first type of Foreclosure is a Judicial Foreclosure. This is when the lender brings a lawsuit against the borrower. It starts with a summons and complaint served upon the borrower. If the borrower doesn't respond or pay the fees, the lender gets a judgement by default. The lender must advertise a notice of sale in the newspaper for a certain period of time, then the public sale is conducted and the property goes to the highest bidder.
The second type of Foreclosure is a Nonjudicial Foreclosure, also known as a power of sale. This is when the borrower gives a deed of trust to a trustee to hold for the lender. Upon default, the lender simply files a notice of default and a notice of sale, which is published in the newspaper. It then gets sold to the highest bidder.
The third type of foreclosure is a Strict Foreclosure. In this scenario, there is no sale required.
The borrower has a certain amount of time to pay what is owed. After that date, the title reverts to the lender.
Check with your state to find out which foreclosures are practiced. Virginia only does Judicial and Nonjudicial Foreclosures. Its about a 45 day process, and the lender is only required to advertise the sale for 14-28 days. Of course, there are a multitude of ways to find foreclosures, not just the newspaper. Depending on the interest I get from these articles, I might get into that as well. Good Luck!
Charlottesville Real Estate
Foreclosure Lesson #6 - Local Factors that Affect Foreclosures and Real Estate
Aside from National Factors that affect Real Estate and the Foreclosure Market, there are also Local Factors that affect our market. Again, there are five factors.
The first Local Factor that affect your Real Estate Market and the money you can make is Migration and Job Growth. If the area has an increase in jobs and people come to the area, Real Estate prices go up. The reverse happens if the area loses jobs and people leave. This is one of the reasons that Charlottesville is doing so well in a market that is bleak right now. The area keeps expanding in jobs with the University of Virginia to the NGIC expansion. Like anything else you want to track the results. Right now, Virginia's population is increasing by 6%, while the Charlottesville population is increasing by 25%. These things affect the "demand" side of the Supply and Demand Curve of Real Estate.
The second local factor that affects Real Estate are Development Plans. Is there new construction panned for the area? Shopping malls, restaruants, offices, etc? Get to know someone at the Planning Commission and attend the meetings. Find out the answers to these questions, they have a lot to do with where the market is going to go.
The third local factor that affects Real Estate is New Construction. New construction of any type means that the area has positive future potential. New Construction affects the supply side of the Supply and Demand Curve in Real Estate. Property owners will have a hard time increasing prices if new construction is selling for much less. Check with local building departments to find out home many new permits are filed each month. Then compare them to last year and the year before.
The fourth local factor that affects Real Estate is Supply and Demand. Supply and demand create the local business cycle. During an up cycle, the demand is greater than the supply, driving prices upwards. During a down cycle, the supply is greater than the demand, driving prices downwards. Again, track results. Keep track of the area's monthly home sales. That's sales, the number of homes that actually sold. Then compare homes bought in the current month to previous months to see buyer demand and use the MLS (Multiple Listing Service) to figure out the current supply. Understand that Real Estate can be seasonal. For example, more homes are sold during the summer than the winter. Currently in Charlottesville, the supply outweighs the demand.
The last local factor that affects Real Estate is Neighborhood Trends. If you are looking at buying a foreclosure or an investment property, drive around the neighborhood at different times of the day. Are there a lot of broken down cars? Are the yards maintained? Is it a few homes or the entire neighborhood that needs work? Are some houses being fixed up? What are the local employment statistics? Has the population grown? What is the median income? And so on. Use a combination of objective data and instinct.
Keep in mind that a single Local Factor can outweigh multiple national factors. Know your area throughly and invest where you live. If you don't know the streets, you don't know the area. Do your research up front and have your ducks in a row. All these will help minimize the risk of investing.
Here is a list of people you might need during the process of buying a foreclosure or investing"
Mortgage Broker
Real Estate Agent
Attorney
General Contractor
I can make suggestions on any of these if you need them. Just let me know.
Charlottesville Real Estate
The first Local Factor that affect your Real Estate Market and the money you can make is Migration and Job Growth. If the area has an increase in jobs and people come to the area, Real Estate prices go up. The reverse happens if the area loses jobs and people leave. This is one of the reasons that Charlottesville is doing so well in a market that is bleak right now. The area keeps expanding in jobs with the University of Virginia to the NGIC expansion. Like anything else you want to track the results. Right now, Virginia's population is increasing by 6%, while the Charlottesville population is increasing by 25%. These things affect the "demand" side of the Supply and Demand Curve of Real Estate.
The second local factor that affects Real Estate are Development Plans. Is there new construction panned for the area? Shopping malls, restaruants, offices, etc? Get to know someone at the Planning Commission and attend the meetings. Find out the answers to these questions, they have a lot to do with where the market is going to go.
The third local factor that affects Real Estate is New Construction. New construction of any type means that the area has positive future potential. New Construction affects the supply side of the Supply and Demand Curve in Real Estate. Property owners will have a hard time increasing prices if new construction is selling for much less. Check with local building departments to find out home many new permits are filed each month. Then compare them to last year and the year before.
The fourth local factor that affects Real Estate is Supply and Demand. Supply and demand create the local business cycle. During an up cycle, the demand is greater than the supply, driving prices upwards. During a down cycle, the supply is greater than the demand, driving prices downwards. Again, track results. Keep track of the area's monthly home sales. That's sales, the number of homes that actually sold. Then compare homes bought in the current month to previous months to see buyer demand and use the MLS (Multiple Listing Service) to figure out the current supply. Understand that Real Estate can be seasonal. For example, more homes are sold during the summer than the winter. Currently in Charlottesville, the supply outweighs the demand.
The last local factor that affects Real Estate is Neighborhood Trends. If you are looking at buying a foreclosure or an investment property, drive around the neighborhood at different times of the day. Are there a lot of broken down cars? Are the yards maintained? Is it a few homes or the entire neighborhood that needs work? Are some houses being fixed up? What are the local employment statistics? Has the population grown? What is the median income? And so on. Use a combination of objective data and instinct.
Keep in mind that a single Local Factor can outweigh multiple national factors. Know your area throughly and invest where you live. If you don't know the streets, you don't know the area. Do your research up front and have your ducks in a row. All these will help minimize the risk of investing.
Here is a list of people you might need during the process of buying a foreclosure or investing"
Mortgage Broker
Real Estate Agent
Attorney
General Contractor
I can make suggestions on any of these if you need them. Just let me know.
Charlottesville Real Estate
Foreclosure Lesson #6 - Local Factors that Affect Foreclosures and Real Estate
Aside from National Factors that affect Real Estate and the Foreclosure Market, there are also Local Factors that affect our market. Again, there are five factors.
The first Local Factor that affect your Real Estate Market and the money you can make is Migration and Job Growth. If the area has an increase in jobs and people come to the area, Real Estate prices go up. The reverse happens if the area loses jobs and people leave. This is one of the reasons that Charlottesville is doing so well in a market that is bleak right now. The area keeps expanding in jobs with the University of Virginia to the NGIC expansion. Like anything else you want to track the results. Right now, Virginia's population is increasing by 6%, while the Charlottesville population is increasing by 25%. These things affect the "demand" side of the Supply and Demand Curve of Real Estate.
The second local factor that affects Real Estate are Development Plans. Is there new construction panned for the area? Shopping malls, restaruants, offices, etc? Get to know someone at the Planning Commission and attend the meetings. Find out the answers to these questions, they have a lot to do with where the market is going to go.
The third local factor that affects Real Estate is New Construction. New construction of any type means that the area has positive future potential. New Construction affects the supply side of the Supply and Demand Curve in Real Estate. Property owners will have a hard time increasing prices if new construction is selling for much less. Check with local building departments to find out home many new permits are filed each month. Then compare them to last year and the year before.
The fourth local factor that affects Real Estate is Supply and Demand. Supply and demand create the local business cycle. During an up cycle, the demand is greater than the supply, driving prices upwards. During a down cycle, the supply is greater than the demand, driving prices downwards. Again, track results. Keep track of the area's monthly home sales. That's sales, the number of homes that actually sold. Then compare homes bought in the current month to previous months to see buyer demand and use the MLS (Multiple Listing Service) to figure out the current supply. Understand that Real Estate can be seasonal. For example, more homes are sold during the summer than the winter. Currently in Charlottesville, the supply outweighs the demand.
The last local factor that affects Real Estate is Neighborhood Trends. If you are looking at buying a foreclosure or an investment property, drive around the neighborhood at different times of the day. Are there a lot of broken down cars? Are the yards maintained? Is it a few homes or the entire neighborhood that needs work? Are some houses being fixed up? What are the local employment statistics? Has the population grown? What is the median income? And so on. Use a combination of objective data and instinct.
Keep in mind that a single Local Factor can outweigh multiple national factors. Know your area throughly and invest where you live. If you don't know the streets, you don't know the area. Do your research up front and have your ducks in a row. All these will help minimize the risk of investing.
Here is a list of people you might need during the process of buying a foreclosure or investing"
Mortgage Broker
Real Estate Agent
Attorney
General Contractor
I can make suggestions on any of these if you need them. Just let me know.
Charlottesville Real Estate
The first Local Factor that affect your Real Estate Market and the money you can make is Migration and Job Growth. If the area has an increase in jobs and people come to the area, Real Estate prices go up. The reverse happens if the area loses jobs and people leave. This is one of the reasons that Charlottesville is doing so well in a market that is bleak right now. The area keeps expanding in jobs with the University of Virginia to the NGIC expansion. Like anything else you want to track the results. Right now, Virginia's population is increasing by 6%, while the Charlottesville population is increasing by 25%. These things affect the "demand" side of the Supply and Demand Curve of Real Estate.
The second local factor that affects Real Estate are Development Plans. Is there new construction panned for the area? Shopping malls, restaruants, offices, etc? Get to know someone at the Planning Commission and attend the meetings. Find out the answers to these questions, they have a lot to do with where the market is going to go.
The third local factor that affects Real Estate is New Construction. New construction of any type means that the area has positive future potential. New Construction affects the supply side of the Supply and Demand Curve in Real Estate. Property owners will have a hard time increasing prices if new construction is selling for much less. Check with local building departments to find out home many new permits are filed each month. Then compare them to last year and the year before.
The fourth local factor that affects Real Estate is Supply and Demand. Supply and demand create the local business cycle. During an up cycle, the demand is greater than the supply, driving prices upwards. During a down cycle, the supply is greater than the demand, driving prices downwards. Again, track results. Keep track of the area's monthly home sales. That's sales, the number of homes that actually sold. Then compare homes bought in the current month to previous months to see buyer demand and use the MLS (Multiple Listing Service) to figure out the current supply. Understand that Real Estate can be seasonal. For example, more homes are sold during the summer than the winter. Currently in Charlottesville, the supply outweighs the demand.
The last local factor that affects Real Estate is Neighborhood Trends. If you are looking at buying a foreclosure or an investment property, drive around the neighborhood at different times of the day. Are there a lot of broken down cars? Are the yards maintained? Is it a few homes or the entire neighborhood that needs work? Are some houses being fixed up? What are the local employment statistics? Has the population grown? What is the median income? And so on. Use a combination of objective data and instinct.
Keep in mind that a single Local Factor can outweigh multiple national factors. Know your area throughly and invest where you live. If you don't know the streets, you don't know the area. Do your research up front and have your ducks in a row. All these will help minimize the risk of investing.
Here is a list of people you might need during the process of buying a foreclosure or investing"
Mortgage Broker
Real Estate Agent
Attorney
General Contractor
I can make suggestions on any of these if you need them. Just let me know.
Charlottesville Real Estate
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