Real Estate Housing Trends, News and Information

Big Banks Create a New Market Opportunity for REALTORS®

Posted on July 3, 2011. Filed under: Real Estate Housing Trends, News and Information |

In today’s New York Times article, “Big U.S. banks to relieve borrowers“, David Streitfeld reports on the new mortgage relief effort being waged to help homeowners at “possible” risk of foreclosure due to a specific type of risky Option ARM loans originated in 2008 and 2009.  The article goes on to say that having an option ARM loan seems to qualify the borrower for special help.

Chase and BofA inherited huge portfolios of these loans from Washington Mutual and Countrywide Financial.  The article explains how restructuring these loan balances by 50% by forgiving debt will allow hundreds of thousands to stay in their homes.  Thank you Chase and BoA!

What the article doesn’t point out is the NEW opportunity for the REALTOR®.  With 50% debt forgiveness, sellers are now able to list their properties at appraised values presenting the REALTOR® with a viable new market.  The article says that economist, Sam Khater agrees that “Reducing negative equity would spark a housing recovery”.

As demonstrated in the article, a Miami condo owner, Ms. Giosmas, had an Option ARM loan balance of $300,000.  She was able to make her payments, didn’t see herself as “at risk” and was surprised to receive a letter in the mail announcing her good fortune.  After reducing her loan balance to $150,000, she was able to sell her condo for $170,000.  Not only could she sell her condo, but Ms. Giosmas made a small profit. Let me repeat…PROFIT!!!

If I was a broker or REALTOR®, I’d be checking into these Option ARM loans.  I’d speak with Chase and BofA.  I’d speak with appraisers. I’d advertise in my local community.  I’d host seminars on Option ARM loans.  I’d discover an untapped source of salable listings.  I’d be at the top of my game!

(If you are looking for information on how to become the Hyper Local Neighborhood Expert, I invite you to a series of FREE Webinars hosted by FrogPond.)

Are You Letting 70% of Your Leads Slide?

Posted on June 7, 2011. Filed under: Real Estate Housing Trends, News and Information |

Dan McDade  in an article in SMS says that “70 percent or more of leads aren’t being followed up by sales”. He doesn’t fault  marketing or sales executives, but he continues to say, “ The responsibility rests with C-level executives and other senior managers who fail to understand or act upon the real problem.”

Being both Sales and Marketing in my company, FrogPond, as well as C-level executives, as independent contractors tend to be, I thought you would enjoy this article.

Click Here
Source: SMM, Sales and Marketing Management

March Case-Shiller Shows Double-dip in Home Prices

Posted on May 31, 2011. Filed under: Real Estate Housing Trends, News and Information |

I read an article by Greg Robb, MarketWatch, May 31, 2011,”U.S. Homes Prices in Double Dip Recession…Case-Shiller”.

Robb stated, “The prices of single-family homes in 20 major cities fell for the eighth straight month and confirmed that there is a double-dip in the housing market, according to the S&P/Case-Shiller home price index released Tuesday by Standard & Poor’s.

Home prices fell a non-seasonally adjusted 0.8% in March. Prices have moved down 3.6% in the past year. Home prices declined in 18 of the 20 metropolitan areas tracked by Case-Shiller in March compared with February. Washington D.C. and Seattle were the only markets where home prices increased in March.”

As I read I began to think about all the home buyers and sellers reading this report, I wondered how the continuation of negative news affects them. I thought about if they worried whether their homes would continue to lose value, or are they so despondent that they no longer believe their homes will ever sell? I could almost feel the acid building in their bellies with worry.

I asksed myself, “What would I do if I was still selling homes?” I’d  blog, email the Housing Trends eNewsletter with a” buy now” personal message, post my opinions on all my social media sites, and call everyone I know to say that “it’s time to buy a home, time to stretch your dollars to spend less and buy more. Times are good for those with credit.”

Successful REALTORS are savvy enough to inform the consumer what their reading in the news has positive benefits for them. Reliable information is an opportunity to examine, study and explain the market trends to consumers.

Here’s what I’d do:

Interest rates are still very low, but all indications point to an increase. With good credit the consumer is in prime position to purchase more home in move up neighborhoods with better schools by buying now.

Use this example of the increase in interest rates. According to an example in Houston Chronicle by Freddie Mac Primary Mortgage Market survey (05/31/2011)

Loan Amount: $200,000

Interest Rate        Principal & Interest Monthly Payment

4.75%                          $1,043

5.00%                          $1.074

6.00%                          $1,199

7.00%                          $1,331

“If you are the Seller, you will be able to take advantage on the Buying side if you act while interest rates are down. Low interest rates mean more available buyers in the market to buy your home. Plus, every day you linger in your home debating your selling decision, your asset, your home, loses value, but costs you the same amount to maintain it each month.”

According to Clifford Crabtree, CEO, First Continental Mortgage, “Mortgage rates aren’t expected to spike tomorrow. But as the economy improves and if inflation begins to affect more segments of the economy, rates should start to tick up.”

Agents, you should also learn about your state and local down payment assistance to assist your buyers and sellers. Watch for more information on Down Payment Assistance Programs.