Real Estate Market Update

Just a quick real estate market update:

  • Fed Chair Janet Yellen signaled that the Fed is not overly concerned with low inflation. That means they may likely start raising interest rates later this year.
  • Consumer spending rose slightly in February after dropping in January, but was still considered weak. Weak spending will help keep interest rates low.
  • Recent news points to a slowdown in economic growth for the first quarter. Economic weakness means little inflation and is good for rates.
  • NAR reports that February’s pending home sales hit the highest level since June 2013. Strengthening demand signals a strong spring market.
  • February construction spending was up 2.1% from February 2014. Spending on single-family construction was down slightly but rose on multi-family home building.
  • Nationwide unveiled its new Leading Index of Healthy Housing Markets (LIHHM). According to Nationwide, the housing market is at its healthiest level since 2001.

Special Thanks to Nina Efird with Fidelity Bank Mortgage for providing ‘The Market in A Minute’ update. Nina serves the Williamsburg VA area and does a phenomenal job of closing loans and going the extra mile for home buyers. 

real estate market update

Nina Efird

Rate movements and volatility are based on published, aggregate    national averages and measured from the previous to the most recentmidweek daily reporting period. These rate trends can differ from  our own and are subject to change at any time.
Share

Move-Up Home Buyers Rejoice!

If you do the math, you may discover you can buy more house than you could have previously afforded in 2006. This first graphic explains how just a 20% loss in values allows you to purchase a home and gain more value in the ‘move-up’ home. In this example you see a $50,000 gain.

When values rise again, you may appreciate and even greater gain as demonstrated in the table below. In this example, you see a total gain of $90,000.

In our final demonstration, you can see that waiting to make your decision can greatly impact your monthly payment and affordability if you consider today’s interest rates compared to what they may be in the future. If interest rates rise even modestly, you will see a significant increase in your payments. Maybe you want more square footage in your Daphne, Fairhope or Spanish Fort home. Opportunity may be knocking.

If you have been toying with the idea of buying a luxury home, a home with a pool or golf course home, but think now is not the time, think again! Now may be your best opportunity ever to get the DREAM HOME! Why don’t you contact us if you think this makes sense for you. No pressure, but we can certainly discuss your circumstances.

Resource credit goes to Keeping Current Matters.

Share

What Are The Odds of Your Property Selling?

Everyone focuses on sold prices and competing prices. Why? Because this is vital information when pricing your home. You need to know what homes around you are selling for and this also comes into play with the appraisal. Even if someone gives you the price you want, it still has to appraise.

The other factor is competing homes. If you are the highest priced home, even with really great features, chances are that you will not be the first to sell. Buyers are looking for low prices and figure they can upgrade over time any features that are not to their liking.

Lets talk about the much-overlooked but vital tool in analyzing your property and the odds of it selling. In any given market, in any given time, only so many properties will sell. This is known as ‘Absorption Rate’. In other words, how many months of inventory is available? Let me provide a simplified example, although there is more precision involved when evaluating a property:

Lets say if in 6 months 5112 properties sold in your county. That would be an average of 852 properties sold per month. If you then take the current active listings, lets use 7333 and divide it by the average homes sold per month, you would have a 8.6 month inventory. If no other properties come on the market, it would take 8.6 months to sell everything. Lets go further. Take those 5112 properties sold in 6 months and divide that by the number of closed, active, expired, withdrawn listings in the same 6 months and you would come up with a 29% probability of selling your property.

How does this impact you? It helps you determine how you are going to price your property to get it sold. If you price it too high, the probability of your property selling soon is unlikely. Your agent is in charge of the process. You, the seller, are in charge of the decisions and how competitive you are going to be.

Share

Brand Advertising Matters to Home Sellers

RE/MAX | Top Real Estate Company | Daphne  AL | Fairhope AL | Spanish Fort AL

As a home seller in Daphne, Fairhope or Spanish Fort AL, you will want to hire the top real estate company to sell your house or property. It is important to consider marketing and brand awareness as part of that equation. RE/MAX International has surged ahead of our competitors in maintaining and increasing market presence and visibility. While others have pulled back on the advertising dollars during these tough economic times, RE/MAX has taken a long view and invested accordingly. When people think of buying or selling real estate, RE/MAX is to top brand that comes to mind. RE/MAX agents sell more real estate, and that’s not just a slogan.

Share

Home For Sale in Spanish Fort AL – Just Listed!

Spanish Fort AL Home For Sale | The Woodlands of Spanish Fort | Spanish Fort

Ideally located and well maintained in The Woodlands of Spanish Fort. This home has a fabulous layout that includes a spacious and cheerful sunroom overlooking a lovely patio. Check out the property website: 7000PoncedeLeon.com to see all the photos, maps, school info and more. Spanish Fort is a great place to live and offers convenient access to I-10 for those working across the bay in Mobile.

Share

We Are Selling A Lot of Real Estate!

Everyone knows it is a buyer’s market and that sellers have taken quite a beating. There are many competing properties and new construction is the toughest competition because most home buyers prefer new, if they can get it. It is more important than ever to have great presentation.

The Tia Stanley Team provides the best home marketing you can get! It is our job to get buyer’s looking at your home. We make a financial investment in every listing and we expect to sell it. Our team has developed an exclusive and distinctive plan designed to attract buyer’s.

Photos may be one of the most vital aspects of marketing your property. Buyers demand lots of good photos. You have seen those ‘bad’ photos where it is just a dark blob, or there are are very few to look at. What if you could have great photos and lots of them? Well, good news…we have invested in excellent camera equipment, wide angle lens, flashes, tripods, & software to get the best photos of your property. Oh, and some training too as there is much to learn when going for WOW photos.

Prepare your home for photos: Clear off all the kitchen and bathroom counters. Minimize items on dresser tops, take the magnets and art off of the refrigerator. Put away the shampoo bottles and temporarily hide your bath rugs and kitchen rugs. We want to emphasize the home and the space, not your personal things. You may want to put away photos of your children for the pictures as they will be online. We will do the rest! Depending on the size of the property and it’s features, we typically snap 100 – 200 photos.

If you are serious about selling, we would love to share all that we do with you. Contact us for a one-on-one presentation or a CD presentation.

Share

Deadline Approaches for FHA Home Buyers 4/18/2011

Monday, April 18th marks the beginning of increased FHA monthly Mortgage Insurance Premiums (MIP).
For Buyers planning to purchase in the near future using FHA with less than 10% down, getting into contract and making loan application before 4/18/11 will yield a monthly savings. For example, a loan of $100,000 will have a monthly premium of $96.00 as opposed to $75.00 before 4/18. Since the 16th and 17th are Saturday and Sunday, application should actually be made by 4/15.
 
The New Monthly MIP For FHA as of 4/18/2011:
30 year loan over 95%  loan to value: 1.15% MIP
15 year loan over 90% loan to value: 0.50% MIP
15 year loan under 90% loan to value: 0.25% MIP
 
The upfront Mortgage Insurance Premium of 1% (down from 1.75% as of 3/2010) will remain the same and Purchaser has the option of paying out-of-pocket at closing, or rolling back into  the mortgage.
 
If you are unable to beat the deadline, remember rates are still very low and there are still many wonderful properties available. For Buyers who qualify, your lender will be able to offer the latest and greatest loan programs for you to choose from.
If you need a lender, please let us know and we will send you a list of our Preferred Lenders.
 
Marie Smith CRS, GRI, Broker Associate
Share

Unemployed? STOP Foreclosure!

As a REALTOR, I speak with many families in hardship and facing foreclosure. This is a heartbreaking situation often due to circumstances beyond your control. These circumstances can seem traumatic and have a lasting impact, taking years to recover. As a homeowner in trouble, you cannot ignore the letters and the calls. You must be proactive and seek out your options. You are not alone and many people are wearing the same shoes.

On February 2, 2011 Gov. Bentley announced the Hardest Hit Alabama fund (HHA), which will provide up to $162 million toward foreclosure prevention for Alabama homeowners who are eligible for unemployment compensation.

This grant was awarded to the Alabama Housing Finance Authority and authorized through the Emergency Economic Stabilization Act of 2008 which is available in 18 states and District of Columbia.

HHA will provide up to 12 monthly payments to eligible households, not to exceed $15,000. Funds are available on a first-come-first-serve basis until depleted.

The requirements for eligibility are:

  • You must be eligible for unemployment compensation benefits
  • Your total annual household income is less than $75,740 at time of application
  • The amount you owe on your home mortgage is no more than $258,690
  • Must occupy the home as a primary residence in the state of Alabama

What you will need to have:

  • Mortgage Loan Information
  • Unemployment Compensation Information
  • Financial Information

If you or someone you know may qualify, go to THE HARDEST HIT ALABAMA site to apply or call  Hardest Hit Alabama hotline at 877.497.8182 for free assistance.

Note: There are NO FEES to apply for this assistance. If you are contacted by someone offering to assist you for a fee, do not speak with them. Instead contact HHA at the above number.

Don’t lose your home without exhausting all of your options. If you do not qualify, but want to talk about a possible short sale (pre-foreclosure) of your home, please contact us through the RE/MAX website  TiaStanleyTeam

Hardest Hit Alabama

Help for Unemployed Homeowners

Information obtained from The Hardest Hit Alabama website.

Share

New Guidelines for USDA Home Loans

Effective October 1, 2011, USDA will decrease the upfront Guaranty Fee from 3.5% to 2.0% for new purchase transactions. However, at this time USDA will be adding an annual fee that will be paid monthly by the borrower, which is similar to FHA. The new annual premium will be based on .30 basis points on the unpaid principle balance, to be paid in monthly increments.

USDA loans are a great loan if you and the property qualify. In our area of Baldwin County, basic guidelines are that the home you are purchasing must be outside of the city limits of Fairhope, Daphne and Spanish Fort, Alabama. Of course, there are other requirements including income, so talk to a lending specialist for details.

Special thanks and credit to Sherry Peoples with Mortgage America, Inc.  for keeping us informed of these important changes.

Share