Happy New Year! It’s our hope at the McLeod Group that you had a wonderful Christmas and New Year’s holiday with your family and friends.
The McLeod Group is looking forward to a great 2010. The “Experts” tell us the recession ended in the Fall of 2009…..and that is great news. As a leading indicator, we’re looking forward to what that actually means in the real estate market.
Right now there are several positive signs.
First, we have the benefit of the First Time Homebuyer Tax Credit. The credit has been extended to homes put under contract as of April 30, 2010. As we reviewed our statistics for December, we noticed the greatest activity is still in the under $225k categories.
Second, interest is amazingly low. I know for some of you, a 5ish interest rate almost seems normal. But for those of us with a few more years of wear and tear – 5ish is LOW! We can give credit to the Fed’s for helping out by buying Mortgage Backed Securities. We’re expecting to see those rates last into the summer.
Now for a few challenges……
The job market is still dicey. Here in Salem the concern is over the effects of Measures 66 and 67 – whichever way the vote goes.
We’re also keeping an eye on the “shadow inventory” of distressed properties held by the banks. Distressed properties are those homes that are behind in payments at least two months, but on whom the banks have not yet filed a foreclosure notice. Word on the street is that the number is about 15 MILLION nationwide…..and that the banks may begin releasing them to the market in the early summer. That could have a dramatic effect on home values this year.
So what does this all mean for you and I?
Most of us have lost any memory of past real estate markets. But looking back can help us put this market back into some perspective.
We’ve entered a time that forces us to see our houses first as a home. They are no longer the ATM machine we were used to. So finding value in the benefits of homeownership will come from things other than a continuous cash flow – like privacy, quiet enjoyment and building memories with our family.
We’ve also entered a time when our homes will once again appreciate at more normal percentages; 3 – 4% is a more likely reality….once we hit bottom.
We are seeing an increase in lenders expecting sellers to provide a home that is pest free, dry rot free and safe. Selling “As Is” has no meaning to a lender. Pragmatically, if we want their money, we have to dance to their tune.
Lastly, change has become the norm in the real estate market. Nearly weekly there are new requirements, new advisories, new rules. Keeping an open mind and a willingness to be flexible will make the navigation of this real estate market that much less stressful.
Please stay tuned for additional posts as our team makes an effort to keep you up on the new changes in the real estate market.
If you have any questions, don’t hesitate to call or email us. We’re here for any real estate question you may have.
Wishing you and yours a very Happy New Year!
The McLeod Group is looking forward to a great 2010. The “Experts” tell us the recession ended in the Fall of 2009…..and that is great news. As a leading indicator, we’re looking forward to what that actually means in the real estate market.
Right now there are several positive signs.
First, we have the benefit of the First Time Homebuyer Tax Credit. The credit has been extended to homes put under contract as of April 30, 2010. As we reviewed our statistics for December, we noticed the greatest activity is still in the under $225k categories.
Second, interest is amazingly low. I know for some of you, a 5ish interest rate almost seems normal. But for those of us with a few more years of wear and tear – 5ish is LOW! We can give credit to the Fed’s for helping out by buying Mortgage Backed Securities. We’re expecting to see those rates last into the summer.
Now for a few challenges……
The job market is still dicey. Here in Salem the concern is over the effects of Measures 66 and 67 – whichever way the vote goes.
We’re also keeping an eye on the “shadow inventory” of distressed properties held by the banks. Distressed properties are those homes that are behind in payments at least two months, but on whom the banks have not yet filed a foreclosure notice. Word on the street is that the number is about 15 MILLION nationwide…..and that the banks may begin releasing them to the market in the early summer. That could have a dramatic effect on home values this year.
So what does this all mean for you and I?
Most of us have lost any memory of past real estate markets. But looking back can help us put this market back into some perspective.
We’ve entered a time that forces us to see our houses first as a home. They are no longer the ATM machine we were used to. So finding value in the benefits of homeownership will come from things other than a continuous cash flow – like privacy, quiet enjoyment and building memories with our family.
We’ve also entered a time when our homes will once again appreciate at more normal percentages; 3 – 4% is a more likely reality….once we hit bottom.
We are seeing an increase in lenders expecting sellers to provide a home that is pest free, dry rot free and safe. Selling “As Is” has no meaning to a lender. Pragmatically, if we want their money, we have to dance to their tune.
Lastly, change has become the norm in the real estate market. Nearly weekly there are new requirements, new advisories, new rules. Keeping an open mind and a willingness to be flexible will make the navigation of this real estate market that much less stressful.
Please stay tuned for additional posts as our team makes an effort to keep you up on the new changes in the real estate market.
If you have any questions, don’t hesitate to call or email us. We’re here for any real estate question you may have.
Wishing you and yours a very Happy New Year!
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