Every day we seem to hear some sort of news on the real estate market. One day it is great news about resales being up, new construction permits, foreclosures, etc., the next day doom and gloom.
Some important thoughts:
1. People are saving money right now and hunkering down. Responsible is the "in thing" again.
2. Most markets are experiencing an up tick in real estate home prices - quite the opposite.
3. Lenders are making life tough for responsible people who pay their bills to refi - even though it is out tax payer money for the most part and it would put most home owners in a better financial position to pay bills. Imagine if part of the stimulus money had been earmarked for responsible people to lower their current mortgage rate? Talk about an infusion of money into the economy.
4. The Government is out of control with spending and stimulus. The ordinary citizen could have done a better job directing where stimulus money is going for jobs. I have a few ideas - how about you?
Worst of all the Government wants no input from "average Joe American" - they are stuck on doing what is best for their political party and reelection.
Now for the good news: If you can afford a home buy it now. Interest rates are being driven down (some say artificially) to help you. Waiting to buy could essentially equal out if rates do climb (they have no other way to go) versus real estate prices declining over the next year. Most Important - Do not buy if you are not financially sound nor have a cash reserve.
Housing will not fully recover until 2012. That is when the glut of backlogged foreclosures is expected to be phased out of the market.
Housing will recover by the end of the year. Now that inventory has contracted to average levels for what constitutes “normal” regional markets in major metropolitan areas where prices have declined as much as 50% in the past three years, and month to month sales have steadily increased over the past six months, demand has realigned with supply to arrest the freefall in values.
The housing recovery began in early 2009. Median price increases in some markets indicate that even while many pundits were openly wondering when the bottom of the market would appear, it was actually several months in the rearview mirror.
Many factors and variables, and just as many divergent opinions to boot. So many, in fact, that you almost have to choose amongst the purported experts to determine whether you fall in the half empty or half full category. Job rates, interest rates, unemployment rates … psychiatric rates, for spending too much time poring over the data and extrapolations will render one in need of a head exam.
Overanalysis 101.
You don’t need flow charts to tell you where things stand at the moment. You won’t need a market report to tell you when things are better.
You’ll know the market has recovered when you no longer dread the trip to the mailbox or evening phone calls.
You’ll know the market has recovered when you can confidently re-enable automatic bill pay from your checking account instead of prioritizing which ones get paid this month by how far past due each is.
You’ll know that the market has recovered when you don’t have to decide whether you or a loved one is really ill enough to warrant the cost of a trip to the doctor.
You’ll know the market has recovered when you no longer have to explain to the kids why you can’t go to the zoo or stop for ice cream today.
You’ll know the market has recovered when sleep comes as readily as worry formerly did.
You can stop looking to someone else to tell you when the market is fully healed as the housing implosion is the root of these greater ails. It’s far easier to take stock of your own life, and those of your friends and family, to see where along its arc the pendulum is currently settled. As the finance/housing sector dragged our economy into the muck, it will again lead us back to dry ground. No need to watch the stars for celestial clues. Just do what no pundit can and watch your own life for improvement. You’ll know housing has recovered when both of your own feet are planted squarely on terra firma.
Most importantly, beware the forecasts that don’t jive with your own internal index. Those who would adamantly assert the rosiest or bleakest prognosis are likely more interested in influencing your behavior than in your well being.
“Buy now before prices shoot back up!”
“Sell now before prices erode further!”
When you stop listening to yourself, you risk placing all of your trust in the megaphones of those who have a vested interest in your fear.
Is the housing market improving? Is now the time to buy? The time to sell? For months, I have been asked to provide the answers to these questions. I have dutifully provided my vague predictions with the obligatory caveat that no one truly knows how a free market will behave from one day to the next. I realize, though, that in supplying answers to those who actually give the market context, that we have all been looking at this thing from the wrong perspective. It makes zero difference where I think the market stands at present, and where it is headed. The very consumers who ask me these questions are the ones who will ultimately provide the truth or fallacy to my various hypotheses. So I turn the tables and ask the consumer, the actual authority, the very same question.
“What is the state of the Real Estate market?”
Feel free to comment here or send me an email with your thoughts. Looking for opinions from consumers and laypersons, not agents or financial wizards (all comments welcome, though). I will post the results in a follow-up piece.
Mr. Homeowner & Mrs. Homebuyer, the floor is now yours.
When Credit Card Companies Lower Your Credit Limit
Has this happened to you? It may have happened and you didn't know it because it was tucked into the fine print of your recent bill. But if you aren't using the full limit..... Does this action by the credit card company help you or hurt you!?!?!?!?
It will hurt!! Plain and simple.
There is a term used by the experts in credit scoring.... And that word is Utilization. We are referring to how much of your revolving credit lines that you are currently using. And this is about 30% of your FICO Score. So how can this hurt? Let's start with an example:
Joe owes $750 on his Visa card. The limit is $2500. Joe is currently using 30%(750/2500) of his credit limit. Experts agree that you should strive to keep that utilization % below 30% and the lower the better. Why? Because once you start approaching the higher percentages.... The FICO Scoring Method sees you as a great risk. Think about it.... Someone with 30% utilization vs someone with all of their credit cards maxed out.... Who is the better risk? Well, FICO knows.... and the person with the high utilization will have a much lower FICO Score as a result.
Ok.... So Joe is being responsible. His hot water heater breaks and he put that purchase on the card to the tune of 30% utilization. But then the credit card company lowers Joe's limit to $1000 to reduce their exposure to risk. Overnight, Joe went from a responsible 30% to utilizing 75%(750/1000) of his credit limit. Ooooops!!! Now what? Well, it is quite possible that Joe's respectable 720 credit score falls into the high 600s. Let's say 660 or so. What is the impact? Go try and buy a car with a 660 FICO and 720 FICO and see what interest rate difference you get. Try to buy a home on a conventional mortgage with a sub 680 FICO Score and see the if you are eligible for PMI.
But, Tom, I pay off the balance in FULL each month? So this doesn't affect me!! Not so fast.... If you put $800 travel expenses on that $1000 limit credit card and that gets reported to the credit bureaus on the 4th of the month..... Yet you pay your bill on the 5th.... What number will FICO use? That's right, they will assume 80% utilization and dock you many points for it right then and there.
So, how can you protect yourself? Keep more than one credit card. Spread out large expenditures over a few cards. Open a store card for that one time purchase(hot water heater example) Know when your credit cards report your balance and pay history to Experian, Equifax & Transunion so you can pay off/down those cards before you apply for that big purchase like a car or new home.
Note: FICO says that it adds up all of your limits and all of your balances to calculate FICO. However, I have seen people suffer greatly by maxing out one card when they had 3 other cards with zero balance. Don't ask me why... This has been experienced by me more than once.
This credit scoring tip has saved many of my clients thousands of dollars... And it could save YOU many thousands too!!!
Did you know: That if a credit card company raises your interest rate that you have a right to cancel the card and pay it off under the old terms**?
** Remember: If you close that account, it lowers your total revolving credit available balance and could raise your 'utilization' which we discussed.
you should live here.......The Lagomar neighborhood in Virginia Beach continues to be a sought out area for real estate. I make the southeast section of Virginia Beach my home for many reasons.
Why:
1. Great school system with Kellam and Ocean Lakes High Schools, Princess Anne Middle (great school, I know my son attends), and Redmill elementary.
2. Near two of the finest beaches on the East Coast, the resort area (Croatan and North End), and Sandbridge. Fine real estate adjacent to all these neighborhoods.
Question for real estate owners: Would you Mr. and Mrs. Buyer purchase a home with asbestos that is "friable" or not properly wrapped on pipes?
I am not really sure that seller's in Virginia Beach, Norfolk, Chesapeake, Suffolk, and other Hampton Roads communities understand the potential danger and "fear" that buyers may have when considering homes that have asbestos especially those where it has deteriorated and become potentially "airborne".
"Friable Asbestos" can be defined as: When asbestos is crushed it disperses a dusting of microscopic fibers in the air that can remain for very long periods of time. These fibers can be unknowingly inhaled and permanently lodged in lung and other body tissues, yet symptoms might not appear for 20 years or more. Inhaling the fibers has been linked to cancer and asbestosis, a chronic lung disease similar in symptoms to emphysema. Unfortunately there is no known safe level of exposure, which is why asbestos remains a concern today.
Homeowners considering removing asbestos themselves may want to read the cautionary and directions provided by the EPA - most likely you will then be educated and hire a professional certified in this type of work.
As a new real estate homeowner or potential seller, it is not likely that you are acquainted with the inner materials of a home.
However, most Virginia Beach, Chesapeake, Norfolk, Suffolk, and Hampton Roads buyers seek an updated home inspection before closing on a new property.
It is important to reassure buyers that the home is safe and does not contain any potential health hazards. These inspections are critical to clearing hurdles down the road that may slow the sale of property.
One of the most common surprises new homeowners and sellers confront is asbestos in older structures.
Indeed, asbestos containing materials (ACMs) are now banned for use in the United States but many older buildings still contain these products, which are generally safe, but homeowners should be aware of where they are and when they become hazardous.
Asbestos was included in thousands of construction products and still exists in nearly 80% of homes built prior to 1978.
Common asbestos materials include attic insulation, ceiling tiles, and pipe lining.
Asbestos was particularly adept at insulation and prevention of temperature transfer and was used extensively until adverse health effects began to manifest in those who worked with the material frequently.
It is only when asbestos containing materials are compromised or very old that they become hazardous.
Asbestos products under these conditions are rendered “friable.” Home inspection companies should be able to identify these circumstances and advise you on a course of action. When asbestos material is friable, asbestos fibers can be released into the air, potentially endangering those in the area.
Inhaled asbestos fibers lodge in the body’s inner tissue and have been conclusively linked to the rare cancer, mesothelioma, commonly referred to as asbestos cancer, in addition to many other respiratory disorders.
There are few options for mesothelioma treatment or curative therapies for other conditions caused by sustained asbestos exposures. Homeowners need to be aware of potential hazards that may exist so they may be able to avoid potentially harmful effects of hazardous asbestos.
Again, most asbestos containing materials will not pose an immediate hazard and an informed buyer will not be turned off by their presence if they’re reassured of their safety by a professional opinion.
These simple precautions can be taken to assure that both sides know that they and their families will be happy and healthy in their new home.
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How much house can I afford is a calculator that will help you to calculate how much mortgage can you yield and the monthly income that you require to pay in order to be qualified for mortgage loan. To check out how much can you afford for a house payment, just you need to enter the required loan amount, time span of the loan, monthly debt payments etc. The mortgage calculator will help you to check out how much mortgage can you afford and the monthly income required to manage the loan.
Live like you are dying, the lyrics of this Tim McGraw song speaks volumes to many different people.
As I listened to what this song is advocating, It occurred to me many sellers should heed this lesson. They put a price on a property that they think "someday" it may sell for. If moving on with your life requires the sale of a property you own...there is not an infinite amount of time to accomplish this sale. Life is Short.
What got me thinking about this, is I have several short sales a bank owned sale and a probate property that are pending. With these sales the process to close will be longer (in some cases much longer) than the time it took to find a buyer. The price was right, the buyers where motivated and the sellers showed their willingness to sell, by pricing the property to sell.
List like the market is dying. Life is Short.
#1 If you are going to buy after this sale...the sooner you sell the sooner you are in the buyers shoes (you are merely trading equity...if you buy a replacement property).
#2 Moving on is far less painful than hanging on (how many months of mortgages, taxes, insurance utilities will be spend holding...after you admit you want to sell).
#3 You may be better off renting for a time (dropping the major maintenance costs and healing your credit may put you in a better place in the long run than draining your savings, while waiting to score on unrealistic re-sales).
My Bucket list doesn't include living in a home I can't afford...and waiting for someone to over pay me for the same privileges. Life is Short.
Steve Loynd, White Mountain New Hampshire real Estate Expert
What are the 3 most famous words in Virginia Beach Real Estate - location, location, location and the Sanctuary Condos at Sandbridge are no exception for the long range real estate believer. Sandbridge is populated with hundreds of detached homes that flank both the Atlantic ocean and the Back Bay.
Although Sandbridge is isolated from most of the urban sprawl, it is close to shopping at Red Mill Commons, numerous restaurants, and one of the most sought out school districts (Kellam) in the city of Virginia Beach.
Mostly rentals, but some locals live year round what continues to be "the best kept real estate secret in Virginia Beach and Southeast Virginia".
The condos at the Sanctuary number over 200 units with many being rental properties during the summer. The setting for this development is more like a resort than condo building. The peaceful ocean just minutes from your door is unequalled.
Many of these condos were purchased during the Virginia Beach real estate boom. Prices have decreased and bargains are available.
More Sanctuary sellers will enter the market needing to sell. When the market settles out, the Sanctuary will be a great place to own a condo as future building for this type of dwelling will be limited to non existent in the Sandbridge area.
Rare new construction with deep water access next to Lafayette Shores. Approved for pier and boat lift (negotiable). Totally upscale custom features not found elsewhere. Granite, ceramic, carpet, tile, brick, hardie plank, hardwood, recessed lighting, master br fireplace, and too much more to describe Nine foot ceilings Knock Down Plaster Crown molding 4 panel arched doors Cultured marble tops Prewired for fans Prewired security Custom cabinets High Efficiency hvac Double stainless sin Natural gas heat Hardwood steps Overhead lighting 2 closets MBR Full bath downstairs
Thank you to all my lVirginia Beach, Chesapeake, Norfolk, Suffolk, and Hampton Roads loyal real estate clients and their kind remarks below……….
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Best Real Estate Agent! Not really, but I do care very much about every client and friend.....read on:
When we became serious about buying a house in the Hampton Roads real estate area, I really wanted to work with a top notch real estate agent. This was our
first home buying experience, and since so much of the process was new and strange to us we were very dependent on an agent that really knew the ropes.
We had met with two other agents before finding Dennis, but neither were a good match for us. Our purchase was further complicated by the fact that we were two years into a five year Chapter 13 Bankruptcy plan. This meant that even though we had gotten pre-approval from the bank for a mortgage , it was meaningless until the bankruptcy court granted it's approval. In short, we had a contract but still needed the court's approval.
So on top of all the usual difficulties faced in real estate purchases, we also needed an agent that could help us negotiate a good deal with a seller in spite of us being such a risky buyer.
A Chesapeake real estate agent that was a super star wasn't enough, what we really needed was a super hero!
With Dennis's help we found a beautiful house on a quiet country road in Chespeake, and the seller accepted our offer over an equal offer from another buyer even with the risk that the bankrupty court might deny our loan.
We had several complications from the time the offer was accepted until the date of closing, but throughout the entire process Dennis was so easy to communicate with. He was great at keeping things brief and to the point, lots of times just texting my phone to keep me updated on progress.
Now We've been living in our new home for two months, and totally love it!
The neighborhood is exactly the kind of place we wanted to raise our family.
Dennis certainly earned the title of super hero, and we cannot recommend him highly enough!
Agent's note: My special thanks to Sharon Lumpkin of Century Realty and the seller for making these homeowner's dream come true.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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Steve Loynd, White Mountain New Hampshire real Estate Expert
Sandbridge is populated with hundreds of detached homes that flank both the 
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