Below you will find the MAY 2007 issue of my "Homecenter Real Estate Report". It contains the latest information on the local market, interest rates and, as always, News You Can Use!
HOMECENTER REAL ESTATE REPORT
MAY 2007
Courtesy of Troy Bilbrey, Loan Officer/Realtor - Homecenter Loans & Realty World
GREETINGS!
Hello, and welcome to the May issue of my Newsletter! Don't forget to check out our website -- http://www.rwhomecenter.com/ --for interesting articles and our FREE MLS search engine. *For a personalized search of a specific area emailed to you, please email me or contact me with exactly what & where you are looking.
Remember, if you are thinking of buying, selling, investing or refinancing, or know someone who is, please give me a call. I promise solid advice, great service and the utmost professionalism.
I hope to hear from you soon. Take care!
THE LOCAL MARKET
This year's home-selling season is off to a slow start, with local home sales down 25.5% from last year. However, the median price was up 1.5%. The market has slowed partly due to the recent turmoil in the sub-prime mortgage industry. This market slowdown is not expected to be like the early 90s, when massive aerospace layoffs led to a prolonged downturn because the local job market and economy remain fundamentally strong. Look for an increase in sales over the next quarter.
ORANGE COUNTY - MAR ‘07
| Median | Y/Y % | Sales | Y/Y % |
All homes | $629,000 | 1.5% | 3,130 | -25.5% |
Total resale homes | $695,000 | 3.0% | 1,875 | -24.3% |
Total condos | $460,000 | 0.7% | 837 | -24.5% |
Total new homes | $625,500 | 0.3% | 418 | -32.1% |
Source: DataQuick
NEWS YOU CAN USE
Which Home Improvements Payoff?
There are two ways to go about making home improvements. Either you splurge for something purely for the pleasure of having it or you take a pragmatic approach because you want to increase your home's value. Don't expect to score on both counts. Just because you put $20k into your home doesn't mean that your house is worth $20k more. How much you will recoup depends on the direction of the housing market, the value of homes in your area, when you plan to sell and the nature of the project itself. According to Remodeling Magazine, projects that have a positive impact on value include: 1) Kitchens (new paint & flooring, refinish dingy cabinets and replace old hardware), 2) Creating New Space (convert attic into a bedroom or converting a loft into a bedroom), or 3) Baths - Adding a Bathroom (remodeling a bathroom).
Although it may not be enjoyable, basic improvements may have the greatest return on your home's value. You may have a great kitchen but if your roof is leaking, you have a problem. So if you're thinking of selling, be sure to tackle any problems with the home's structure or mechanical systems before you, for instance, install that hot tub you've always dreamed of.
CURRENT RATES* (05/03/07)
Loan Type | This Week | Year Ago | Change |
30 Yr Fixed | 6.16% | 6.59% | - |
15 Yr Fixed | 5.87% | 6.22% | - |
5 Yr Adjustable | 5.87% | 6.21% | - |
* Rates may contain points and are based on an average. On approved credit only.
MORTGAGE RATES HOLDING STEADY
"The recently released advance report of first quarter GDP was weaker than expected, growing only 1.3%. The housing market alone shaved a full percentage point off real GDP growth," said Frank Nothaft, Freddie Mac VP and Chief Economist. "Additionally, both consumer spending and price increases in consumer expenditures were quite tame in March. These contributing factors allowed mortgage rates to hold steady this week."
"Interestingly, the refinance share of mortgage applications has been on a downward trend from a recent peak of nearly 53% in December to around 42% last week. A majority of refinancing involved homeowners extracting equity from their homes." Given low rates, homeowners have a big incentive to use cash-out refinancing as an alternative source of financing.
Source: Primary Mortgage Market Survey Data (national) provided by Freddie Mac
THIS MONTH'S QUOTE
"Opportunity is missed by most people
because it comes dressed in overalls and looks like work."
-- Thomas Alva Edison --
ATTENTION HOMEOWNERS!
MORTGAGE CHECK-UP + FREE APPRAISAL!
Reasons to consider a mortgage check-up from Homecenter Loans: 1) Your ARM is about to expire, 2) Get needed cash to remodel, 3) Make sure your loan product still fits your needs, and 4) Consolidate your 2nd mortgage or high interest rate debt. PLUS, if I close your loan by July 31, 2007, we will pay for your appraisal! We still offer 100% FINANCING, if needed. *Even for first time homebuyers.
ADJUSTABLE RATE !!!WARNING!!! SHORT TERM FIXED LOANS
Also, if you have an adjustable rate mortgage that is coming due, I invite you to call me today. Interest rates are near their lowest levels of the past year so now is a great time to act. Plus, by acting now you can avoid the $500 to $1,000 monthly payment increases that may be headed your way.
Regards,
Troy Bilbrey
REALTY WORLD HOMECENTER & HOMECENTER LOANS
18006 Skypark Circle, Suite 211
Irvine, CA 92614
949.271.3849 Tel
714.585.7615 Cell
949.752-0930 Fax
Email - troy@rwhomecenter.com
Webpage - www.activerain.com/Realty1st
Real Estate - http://www.rwhomecenter.com/
Mortgages - http://www.myhcloans.com/
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Great piece of work it has inspired me to try and use something like this in my Area Mcheny County Illinois.