Is an ARM right for you? The ARM (Adjustable Rate Mortgage) has gotten a lot of bad press lately. But with the built-in safety features, it can be a fantastic product for the right buyer. With the current rate at 3.875%, a 1% annual cap, and a 5% lifetime cap, this could be the opportunity you've been waiting for! Call me for details.

The following groups are available to help at-risk homeowners:

· HUD at (800) 569-4287, (877) 483-1515, or www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm

· HOPE NOW, a cooperative effort of HUD mortgage counselors and lenders to assist homeowners: (888) 995-HOPE or www.hopenow.com

· NeighborWorks America: www.nw.org/network/home.asp

· Federal mortgage modification and refinancing programs: www.makinghomeaffordable.gov

· The Controller of the Currency's consumer information site for banking-related questions: www.helpwithmybank.gov

· OCC Customer Assistance Group: www.occ.gov/customer.htm

· Federal Trade Commission: www.ftc.gov/bcp/edu/pubs/consumer/homes/rea04.shtm

· Federal Reserve Board: www.federalreserve.gov/pubs/foreclosurescamtips/default.htm

from The Washington Post, Elizabeth Razzi, April 16 2009

Long & Foster Adds Job-Loss Protection

People worried about losing their jobs don't buy houses. That's why rising unemployment always puts an extreme drag on home sales; both the jobless and the employed-but-worried stay away from the market.

Long & Foster Real Estate is trying to coax the employed-but-worried into the market with a new job-loss protection program. Agents throughout the company are just getting training on the new "Buy Confident" program, which will be rolled out shortly through all of the company's offices in the mid-Atlantic. Some new-home builders have started offering such protection on their sales, but it's rare for the coverage to be offered on resales marketed through a giant brokerage such as Long & Foster.

The details:

• Sellers who list with L&F can choose to add the coverage to their listing.
  
• Cost is $550, paid out of the seller's funds at closing.
  
• If a covered buyer involuntarily loses his or her job during the 24 months of the mortgage, the plan pays up to $1,800 of the mortgage per month for up to six months. That's a maximum payout of $10,800.
  
• It's available on all types of homes, including condos and vacation or investment properties.
  
• If you've already listed with L&F, your agent can still add the coverage to your listing.
  
• Buyers can find out if a home comes with job-loss protection by looking for comments written on the Multiple Listing Service entry, or by keeping an eye out for special placards on "For Sale" signs.
  
• Buyers should not assume all L&F listings carry job-loss coverage.

  I asked Glen Phillips, chief risk officer for Long & Foster, why the brokerage wasn't making the coverage available automatically to all its listings. He said coverage is one of several things sellers can do to enhance the competitiveness of their home in the marketplace, such as buying a home-repair warranty or upgrading the landscaping. "We don't have the opportunity to dictate to our clients what they spend money on," he said.

  Sellers -- Do you think it's worth $550 on top of your commission and other expenses?

  Buyers -- Is the coverage enough to overcome job-loss jitters?

Low interest rates and very flexible prices make this a good time to be a buyer.

by Brett Arends, The Wall Street Journal (WSJ.com)

April 9, 2009 - Talk about capitulation! Judging from my mailbag following last week's coverage of the Case-Shiller housing numbers, almost nobody has a good word to say about the real estate market any more.

I'm an instinctive contrarian. So I hope readers don't take it the wrong way when I say that when so many of you agree with me, I start to get nervous.

And where is my hate mail? The brokers must be totally whipped. Even a year ago anyone questioning housing prices could reliably expect a torrent of furious replies from those in the business.

Today? Almost nothing. And the few left are mostly of the "U r an idiot (Sent from my iPhone)" variety. Pitiful.

Maybe the moment of maximum pessimism is at hand after all.

So let me play devil's advocate and consider the positive case for buying a home right now.

The key factor: Interest rates.

If you can borrow at 4.5% or 5% over 30 years, many purchases start to look appealing. Especially if we get a hefty dose of inflation down the line.

If that happens, your monthly payments will be low and you'd get to repay the principal over time with devalued dollars. That's a double win.

Inflation isn't guaranteed: The bond markets are only predicting about 1.4% inflation over the next 10 years, and BCA Research recently reminded clients that deflation, or falling prices, remains a danger. Unemployment is still rising and recent wages actually fell.

Yet if you had to bet from here, you'd bet on inflation in due course. The government is running massive deficits and has the printing presses at full throttle. That's the classic recipe.

And inflation is the debtors' friend -- which is why it is surely going to prove the politically expedient way out of this mess.

Anyone purchasing hard assets like real estate, with a 5% fixed rate loan, ought to make good money if that happens.

When it comes to the house prices, it's true they may not have fallen as far as you might expect.

A recent analysis in the Financial Analysts Journal ("When Will Housing Recover?") suggested prices nationwide still weren't cheap by historical standards in relation to household incomes.

Homes were much cheaper, say, as recently as the 1970s.

With mortgage rates at record lows and the $8,000 first-time home-buyer credit set to expire Nov. 30, Ronald Phipps, first vice president of the National Association of Realtors, explains to Kelsey Hubbard why now is a good time to enter the housing market.

Furthermore: the bigger the bubble, the bigger the bust. Considering how sharply home prices climbed from 2002 to 2006, one might expect real estate to end up really, really cheap before bottoming out. And you wouldn't expect a quick rebound either. Japan still hasn't recovered from 1989.

But if you are thinking of buying a home, here's the more positive news: While overall market averages may not be as cheap as you might have expected, you can probably ignore them.

There are plenty of deals taking place far below the official average levels. The indices are masking a huge disparity in prices.

Even the National Association of Realtors concedes distressed sales - including foreclosures and short sales - are closing about 20% below "normal" market rates. (Never mind how to define "normal").

Aggressive buyers are finding some simply terrific deals. And they're paying with cheap debt, too.

Default rates are rising. Lots of sellers are forced. A buyer with options holds all the cards.

Once upon a time, the name of the real estate game was "let's make a deal." Today, it's "take it or leave it." If the seller won't take your offer, his neighbor probably will.

The great news here is seeing California recovering as they were the first to decline.

EXISTING-HOME SALES RISE IN FEBRUARY
WASHINGTON (March 23, 2009) - Existing-home sales increased in February, reversing losses in January.  Even so, sales activity remains relatively soft, reflecting additional layoffs and buyers waiting for housing provisions in the economic stimulus package to take effect, according to the National Association of Realtors®.
Existing-home sales - including single-family, townhomes, condominiums and co-ops -  rose 5.1 percent to a seasonally adjusted annual rate¹ of 4.72 million units in February from a pace of 4.49 million units in January, but are 4.6 percent below the 4.95 million-unit level in February 2008.  Seasonal adjustment factors are more volatile in winter months, but sales rates over the past few months show dampened sales activity.
Lawrence Yun, NAR chief economist, said first-time buyers accounted for half of all home sales last month, with activity concentrated in lower price ranges.  "Because entry level buyers are shopping for bargains, distressed sales accounted for 40 to 45 percent of transactions in February," he said.  "Our analysis shows that distressed homes typically are selling for 20 percent less than the normal market price, and this naturally is drawing down the overall median price."
The national median existing-home price² for all housing types was $165,400 in February, down 15.5 percent from a year ago when the median was $195,800 and conditions were close to normal; the median is where half of the homes sold for more and half sold for less.  "Given the downward distortion in price comparisons due to distressed sales, it's important for owners to keep in mind that this doesn't equate to a similar loss of value for traditional homes in good condition," Yun explained.
Yun said a recovery in the West is much stronger than expected.  "Strong sales gains in the West are led by California, where the median listing price is beginning to rise for the first time in three years," he said.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said home shopping activity has picked up with housing affordability at a record high.  "The number of buyers looking for homes rose 5 percent in February, and also was 5 percent above a year ago," he said.  "It appears most of the increase in buyer traffic occurred in the latter part of the month after the $8,000 first-time buyer tax credit was put in place.  At the same time, mortgage purchase applications have risen, so we expect to see sales picking up around late spring."
McMillan noted that more potential buyers are learning about the tax credit, just as the traditional spring home-buying season begins. "In this changing market, smart buyers and sellers consult with Realtors® who can advise them about current conditions in their area, and counsel them on the best way to move forward," he said.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage edged up to 5.13 percent in February from a record low 5.05 percent in January; the rate was 5.92 percent in February 2008.  Last month's average mortgage rate was the second lowest since data collection began in 1971.  Last week the rate further declined to 4.98 percent.
Total housing inventory at the end of February rose 5.2 percent to 3.80 million existing homes available for sale, which represents a 9.7-month supply³ at the current sales pace, unchanged from January.  In the six months prior to February, the total number of homes for sale had steadily declined from a record level last July.
Single-family home sales rose 4.4 percent to a seasonally adjusted annual rate of 4.23 million in February from a level of 4.05 million in January, but are 3.6 percent below the 4.39 million-unit pace in February 2008.  The median existing single-family home price was $164,600 in February, down 15.0 percent from a year ago.
Existing condominium and co-op sales increased 11.4 percent to a seasonally adjusted annual rate of 490,000 units in February from 440,000 units in January, but are 13.1 percent lower than the 564,000-unit pace a year ago.  The median existing condo price⁴ was $172,200 in February, which is 18.7 percent lower than February 2008.
Regionally, existing-home sales in the Northeast jumped 15.6 percent to an annual pace of 740,000 in February, but are 14.9 percent below February 2008.  The median price in the Northeast was $251,200, down 4.8 percent from a year ago.
Existing-home sales in the Midwest increased 1.0 percent in February to a pace of 1.04 million but are 14.0 percent lower than a year ago.  The median price in the Midwest was $131,000, which is 7.8 percent below February 2008.  
In the South, existing-home sales rose 6.1 percent to an annual pace of 1.74 million in February but are 11.2 percent below February 2008.  The median price in the South was $146,700, down 10.0 percent from a year ago.  
Existing-home sales in the West increased 2.6 percent to an annual rate of 1.20 million in February and remain 30.4 percent higher than a year ago.  The median price in the West was $204,600, which is 30.3 percent below February 2008.  
The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

# # #

NOTE:  References to performance in states or metro areas are from unpublished raw data used to analyze regional trends; please contact your local association of Realtors® for more information.

¹The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months.  Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity.  For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns.  However, seasonal factors cannot compensate for abnormal weather patterns.
Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings.  This differs from the U.S. Census Bureau's series on new single-family home sales, which are based on contracts or the acceptance of a deposit.  Because of these differences, it is not uncommon for each series to move in different directions in the same month.  In addition, existing-home sales, which generally account for 85 to 90 percent of total home sales, are based on a much larger sample - more than 40 percent of multiple listing service data each month - and typically are not subject to large prior-month revisions.
Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began.  Prior to this period, single-family homes accounted for more than nine out of 10 purchases.  Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.

²The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns.  Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns.  Changes in the composition of sales can distort median price data.  Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.

³Total inventory and month's supply data are available back through 1999, while single-family inventory and month's supply are available back to 1982.
 
⁴Because there is a concentration of condos in high-cost metro areas, the national median condo price generally is higher than the median single-family price.  In a given market area, condos typically cost less than single-family homes.

Existing-home sales for March will be released April 23.  The next Pending Home Sales Index & Forecast is scheduled for April 1; release times are 10 a.m. EDT.

The Greater Washington Economic Conference took place January 13th. Stephen S. Fuller, Ph.D., a Dwight Schar Faculty Chair, University Professor and Director of the Center for Regional Analysis, School of Public Policy at George Mason University, presented his prognosis on the state of the Greater Washington economy and the near term outlook for 2009.

Dr. Fuller says "The payroll job loss is likely to go deeper and longer - perhaps 18 to 20 months.  There are currently 13 million unemployed, and many of these people will stay unemployed because the new jobs will have different qualifications than those for the people getting laid off.  He predicted oil will still be below $80 per barrel in 2011.  Normally there are 5 million house sales per year (it got up to 7 million a few years ago), and we are currently around 4.5 million now.  Consumer spending will be a negative 1% in 2009 vs the normal 2.5% growth per year.

The Washington economy will have a 1.5% growth in GDP vs the negative nationally due the presence of the federal government.  Where Detroit has autos; LA, films; Houston, oil; a third of our economy is directly tied into the feds, and that component is rising.  Federal spending here will total some $135 billion in 2009.  Federal procurement dollars have tripled over the last 10 years with much of the corresponding job growth going to Northern VA. 

Job growth has averaged 46,500 per year since 1991 with some recent years as follows:

• 2003 - 56,000
• 2004 - 71,000
• 2005 - 63,000
• 2007 - 29,000
• 2008 - With one more month's numbers to come in, he thinks it will net out at 25,000

Washington is double the national job growth rate in professional and business services which have an annual salary of $75,000.  Due to the region's wealth, our retail trade job growth is 3 times the national average, and other services (such as daycare, etc.) twice.  Steve sees the spread between our unemployment rate and the national rate (now 3%) perhaps growing to a 4% spread. 

He thinks our economy will begin to rebound the second half of 2009 with a total net new job growth of 230,300 for the region over the next 5 years as follows:

• 2009 - 23,700
• 2010 - 36,500
• 2011 - 42,400
• 2012 - 48,100
• 2013 - 54,000

Of these new jobs, Northern VA will have 125,900 and Suburban MD, 66,000.

Needless to say, we are very fortunate to be living and working in this area for a number of reasons.  Let us hope we can take advantage of the opportunities that may be more evident and attainable here than in many other markets.

Estimates suggest that the Washington, D.C. area will be flooded with more than four million visitors for the January 20th inauguration of President-Elect Barack Obama. And yet the number of hotel rooms sits at just 80,000, with many already sold out. That's why Long & Foster Real Estate, Inc. has set up a special site (www.january20.us) to help you find appropriate lodging for the night, weekend, or week of the inauguration. Whether you plan to attend the parade, a ball, the swearing-in ceremony, or any other inaugural festivity, you can do so from the comfort of a well-appointed rental with easy access to the center of activity. A variety of residences, including houses, townhouses, apartments, and condos, are available in a number of surrounding regions and states. Use this site to find one that meets your needs or contact me directly for assistance - jan.brito@longandfoster.com

Owners: Enroll your property in a program specifically created for the 2009 Inauguration with the expertise and support of Washington's leading REALTORS®, Long & Foster.

We provide:

• Access to and use of customized Long & Foster Guest Lodging Agreement.
   
• Professional services of experienced licensed Agents.
  • Owner representation to lodging Guests during the initial stages of application.
  • Online data management in the Long & Foster system/website.
  • Handle inquiries, reservations and payments.
  • Key pick-up services (with additional fee) .
     
• Guidance and advice regarding Owner preparations and responsibilities.
   
• Professionally designed dedicated Long & Foster Inauguration lodging website, enhancing overall image of your property to the customer.
  • Property Advertising Application
  • Website features tailored to this special event
  • Significant details of property characteristics
  • Owner terms and conditions
  • Property photo uploads (5 photos)
  • Map It service through Google Maps
  • Referral to your neighborhood Long & Foster office
  • Guest Lodging application
  • Payment collection and Administration

Some home sellers in the boom years were tempted to market their homes "For Sale By Owner" (FSBO) to avoid paying a real estate broker's commission - especially in seller's markets where homes attracted multiple buyers. 

While the impulse to save money is certainly understandable, selling without professional representation in today's market is a risky strategy that could actually result in lower "walk-away cash" (net proceeds) from the sale and a longer time on the market.  Here's why:   Increased Competition.  The nationwide inventory of existing homes for sale still hovers around a 10-month supply given the current pace of sales - in some local micro-markets, the overstock is even greater.  Bottom line:  lots of competition among home sellers.   To stand out from the crowd and secure a sale in today's market, you'll need every advantage realtors can provide.  We will:

• Design and execute a detailed, customized marketing strategy that puts a spotlight on your home.
• Help you determine the "right price" that's not too high, not too low.
• Recommend cost-effective improvements and repairs to attract buyer interest and offers. (Today's buyers can demand move-in condition.)
• Put your home on the Multiple Listing Service (MLS) to reach thousands of buyers and agents actively shopping right now.
• Provide yolu with information that's up to date and accurate about local market conditions and trends.
• Promote your home sale through your nationwide network of industry professionals and local client contacts.

With everything that is going on in our economy, there are a lot of people who are in financial trouble and who may be having trouble with their mortgage payments.  In addition to residential real estate sales, I also started to offer help to homeowners who may be facing foreclosure or are upside down on their mortgages and don't know their options.   A lot of people in this situation believe there is nothing anyone can do for them, and unfortunately so do many agents.  The truth is that if help is provided soon enough, there are ways to avoid foreclosure.  As a Certified Distressed Property Expert, I invite you to have anyone you know who may be in this position contact me to find out what their options are.  One of the aspects of the real estate business that I love is the opportunity to help people.  I can't tell you how rewarding it is to help someone avoid the heartbreak of foreclosure and the huge negative impact on their credit, and to help them get on with their lives and start over.   Distressed homeowners need an advocate that will act in their best interest and help them find the best solution to the financial crisis they are facing.  The individual best suited for this role is the well-informed, well-trained Agent.