The Dynamics of the Real Estate Market

Finding the right home means finding the right neighborhood.

2010-02-15T11:32:00.002-05:00

As a realtor it is illegal for me to judge a neighborhood for any reason. I am not allowed to say to my clients things like "this area of town is safer than another" or " town X has better schools than town Y." Fair Housing Laws prohibit all agents from steering potential buyers toward or away from a given community for any reason. It is up to the buyers to decide where and why they want to live in a specific location. As for your REALTOR well, he/she will be happy to show you great properties all over the map that fit your search criteria. Here is a good article that can help you find the area of town that you are looking for.

Do you have questions about the Homebuyer Tax Credit?

2010-02-01T09:44:00.005-05:00

Do you understand the homebuyer tax credit? If not, this link can help. Take a look and if you still have any questions please give me a call. I would love to answer them for you. (443) 904-5444

Will the new FHA guidelines effect you?

2010-01-21T14:53:00.003-05:00

The Federal Housing Administration (FHA) has changed the guidelines for borrowers with less than stellar credit. People who are buying or refinancing are needing larger downpayments and are paying higher mortgage insurance premiums if they have a FICO score below 580. Watch this report from CNBC for more info.

Don't be the reason that your house won't sell.

2010-01-19T11:24:00.003-05:00

The biggest problem that most sellers are facing is that their home is not worth what they think it is. We are in a declined market and it is a harsh reality that many people can't accept. There are currently a lot of buyers in the marketplace taking their time and seeing many homes before they make an offer. The units that sell are the units that are priced correctly. It doesn't take an experience real estate investor or appraiser to figure out if a home is priced competitively. If you are currently selling or considering listing your home in the next few months than you should read this article.

Improve your home's sell-ability

2010-01-13T13:20:00.002-05:00

In todays market buyers are more educated and selective than ever before. If you are considering to sell your home in this marketplace you need to think like a buyer. Here are 7 ways to help you get the offer that you are looking for.

Existing home sales up again.

2009-12-22T15:18:00.003-05:00

This morning the National Association of Realtors anounced that existing home sales increased 7.4% in November. The rise was no surprise due to the $8,000.00 federal tax credit that was origionally supposed to expire November 30 of this year. Click here to read more.

What is your home worth?

2009-12-21T12:57:00.004-05:00

If you are not sure what your home is worth click here. The National Assoction of REALTORS has a very clever site to give you a ballpark figure based on recent sales data.

Homebuilders might have a Merry Christmas after all.

2009-12-16T11:11:00.003-05:00

Housing starts up highest since May. Good news for the industry check out the latest here.

Mortgage 101

2009-12-11T08:11:00.005-05:00

What do you know about your mortgage? Are you familiar with the different options that you may have as a consumer? If you want to learn more just follow this link. The more you know the better off you will be. Your financial future depends on it.

Electric bills too high? Generate your own electricity.

2009-12-08T13:39:00.005-05:00

If you think that you are paying too much for power then why not generate your own electricity? Uncle Sam may even pay you to do it. Here is an article to learn more.

Money has not been this cheap in 38 years?

2009-12-04T12:47:00.006-05:00

Yesterday interest rates hit their lowest since 1971. If you qualify you should either refi or buy. Cheap money is the name of the game in real estate. Read this to learn more.

Winter weather is on its way, are you ready?

2009-12-03T13:22:00.003-05:00

So far this winter has started off mild but we all know that is all about to change over the next several weeks. Are you ready for the cold and all that it will bring with it. Here is a checklist to help you and your home prepare for old man winter. Keeping up to date on regular home maintenance can save you thousands of dollars over the life of your home in costly repairs.

The Last 10 Years of Real Estate, how did we get here and what have we learned?

2009-12-02T13:49:00.005-05:00

Over the last 10 years we have seen outlying highs and lows in the real estate market. Take a look at this article to get a unique perspective on how we sent our real estate values through the roof then down to the basement. It took 10 years to get to the top and back down to the bottom, and for many people it will take 10 more years to recover. Everyone should learn from this market cycle and have a game plan to acheive their future real estate goals.

Home Sale Contracts Up 32% in October.

2009-12-01T10:27:00.002-05:00

Contracts up 32% as a result of tax credit. Click here to read more.

Modern Day Credit Scoring. How Companies are Quantifying your Risk.

2009-12-01T07:57:00.003-05:00

Credit? What is the method behind the madness? How do the credit agencies and lenders rate your risk to decide how and when to give you a credit card or home loan? Your FICO (Fair Isaac Corporation) score also known as your Credit-risk score (which ranges from 300-850) is the most common and well know credit qualifier. However, there are eight other scores that lenders and credit agencies keep on you to determine your default potential and profitability. Response score, Revenue score, Bankruptcy score, Application score, Collection score, Behavior score, Transaction score, and Attrition-risk score are their titles. If you are interested please read this story which goes into greater detail on what each score is and how it can help or hurt your buying potential.

Remodeling projects may not give you the return that you expect.

2009-11-30T10:11:00.005-05:00

If you are thinking of taking on a costly renovation project you may want to reconsider. In this market buyers are thinking about a home's utility rather than expensive structural improvements. Keep in mind that in today's market you may get more value in a new roof than a new master suite addition. Before you get out your checkbook read this article to see what your best options may be to increase your return on investment.

October New Home Sales Higher than Expected

2009-11-25T10:04:00.002-05:00

New Home sales up 6.2% for the month of October. 27,000 units higher than expected. Check out this breaking news from the Associated Press posted on CNBC this morning. Other exciting news is that continuing jobless claims in the US are down 127,000 from the previous month. What a great way to head into the holiday season.

Case-Shiller Up Today

2009-11-24T17:02:00.000-05:00

For two consecutive days positive market date released. Check out this article from thestreet.com today.

The Tax Credit is Working for the Existing Market!

2009-11-23T12:31:00.000-05:00

For the last 7 consecutive months existing home sales in the U.S. have lifted off the bottom floor and show no signs of falling back. This October sales of existing homes are up 10.1% which is the highest level since February 2007. Every day more and more people take advantage of the variety of buyer incentives that are driving this demand, as a result we are seeing prices increase. It may be years until we see pricing the way it was before the recession but forward progress is definitely being made. As long as we do not see an increase in interest rates we can expect this upward sales trend to continue through at least June 2010 when the tax credit expires.

Today's home buyers are making strong investment decisions that they will appreciate for years to come. Qualified skeptics however, will forever regret holding out if they let this unique buyers market pass them by. With up to $8,000.00 in tax credits and interest rates under 5% for conventional borrowers, both current and 1st time shoppers "The time to buy is now."
by: Michael Wiener

Everyone should play the game but few are qualified.

2009-11-10T21:41:00.000-05:00

What an interesting economic time to be living in! With the highest unemployment and forclosure rates in decades, lenders are holding on to every last cent. The demand for real estate has been reduced to a fraction of what it was just 36 months ago. Add in that interest rates are sub 5% for qualified borrowers, the basic "buy low, sell high" philosophy encourages us to find a realtor and acquire one of the milions of undervalued properties that exist in every neighborhood. The only problem is that not everyone is able to make a transaction.

"Would be" homebuyers fall into one of many categories that disqualify them from participating in the prime-time of buying real estate. One of which, is simply the inability to get a loan. More than 1 in 10 people are without work, and in the last two years, the numbers have not shown signs of improvement. Without adequate and stable taxable income people in this position instantly raise a red flag to any lender. Another problem people face is that homeowners have homes that they have over leveraged or the properties are simply worth less than the purchase price. Property owners just can not afford to get out of the home that they currently have. Either they do not have enough equity or cash reserves to get out. No matter what the reason the supply far exceeds the demand.

Those who do not fall into any of these categories should be taking advantage of the discounted home pricing, cheap cost of money and enticing tax incentives. It is a decision that qualified buyers will only regret if they hesitate to act. History has shown that it is just a matter of time for home prices and interest rates to increase and for inflation to occur.

By: Michael Wiener, M.S/Realtor