Good morning…
I hope you took advantage of the continuously great weather
this weekend. Next year, I’ll remember to run my errands when
the Pride parade is not going on! Let’s get started…
On today’s call: Markets, Housing Appraisal tips, Interest Rates
- The European debt crisis seems to be putting more pressure
on Wall Street, as the Dow is down almost 170 points today
amid more speculation that the Euro is close to imploding.
This past Friday, the weekly jobless claims were elevated,
indicating that our own economy isn’t doing much better
than Europe’s. With all this uncertainty and volatility, most
economists believe the status quo will continue at least
through the end of the summer. The Treasury markets have
been very active, with the benchmark 10-year yield down to
1.61%. This figure is expected to continue declining, which
is great news for mortgage rates.
- The good news in housing is that the New Home Sales index
for May rose over 7.5%, to the highest level in 2 years. New
home sales, though, make up only 10% of the housing market
overall, and builders rely heavily on the demand of first-time
homebuyers, which is still somewhat weak. Home ownership
overall, is expected to continue declining for the next few years,
approaching the record low of 62.9%. It’s going to take a strong
recovery in the jobs market along with renewed consumer
confidence, among other things, to increase this percentage.
Hopefully, the inventory and low rates will still be present as well.
- As most of you have learned, appraisals are everything in loan
transactions these days. Values are no longer guaranteed to meet
or exceed the purchase price. And having to hang so much of the
process on one person’s opinion of value (which is what a home
appraisal really is), is nerve wracking! I decided to contact a few
of the appraisers we work with and get a consensus of what is
important for sellers (and their agents) to do when it’s time for
the appraisal and these are the most common points among them:
1) Make a list of improvements: It’s important to have a list
ready so that the appraiser can determine why the property
deserves more value.
2) Discuss the home and its history: The more the appraiser
knows about the home, overall, the better.
3) The agent should do a walk-through with the appraiser: this
is important not only for pointing out improvements, but for
making the appraiser familiar with the comparable sales and
reminding him/her why certain comparables aren’t sufficient.
4) Make sure the property is at least presentable: it doesn’t need
to be professionally cleaned or staged, but it should look neat
and orderly.
I hope this helps! The appraisers we work with are fantastic in my
opinion. When you work with them and keep them informed, it makes
their job easier, which helps us get the report back quicker!
- Interest rates could not be better, although I have a feeling they might
actually improve more (see the Markets section). The 30 year fixed seems
intent on hitting the 3.5% mark and we’re almost there on conforming
loans. ARM’s are in the 2% range as well…incredible.
Erika…glad we could close the Daniels file so quickly...26 days! I hope they
are happy in their new home.
Please let me know if I can do anything for you and your clients. Have a great week…
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