Mortgage Restrictions Eased

Below is a reprint of an article recently featured in my monthly newsletter.

Subsequent to reading this, I asked a lender whom I respect to comment.  His comment was not as positive as I had hoped, as he brought up the fact that with PMI (private mortgage insurance) still being required on loans with less than 20% down, tighter lending restrictions would still apply.

Nevertheless, I share this with you.

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Source: The National Association of Realtors®; Realtor.com

Existing-home sales slowed in April, partly because restrictive lending practices hampered home buyers. At the same time, a greater number of areas are showing sales gains from a year ago and a recent reversal in mortgage policy means the market is better positioned for a turnaround, according to the National Association of Realtors®.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said the good news is that mortgage restrictions have just been eased. "In the past week, Freddie Mac and Fannie Mae announced that they were eliminating their 'declining market policies, effective June 1," he said. "This means consumers across the country will have access to safe, affordable financing with downpayments of only 5 percent on most mortgages, with 100 percent financing available on some loan products, and we could see an upturn in home sales this summer."

Lawrence Yun, NAR chief economist, said eliminating restrictive policies should be a big help to home buyers. "I would encourage buyers who were disappointed by poor mortgage options to take another look at the market because the lending changes are significant," he said. "Also, a recent notable drop in interest rates on conforming jumbo loans will help consumers in high-cost markets like California and New York."

The unusual mix of market conditions around the country continues, but areas showing healthy price gains include Greenville, S.C., and Springfield, Mo., both with solid local economies. "On the other hand, some markets like San Diego, Calif., and Fort Myers, Fla., are experiencing rising sales after sudden double-digit drops in local home prices, so lower prices and low interest rates are starting to generate results," Yun said.

The national median existing-home price for all housing types was $202,300 in April, which is 8.0 percent below a year ago when the median was $219,900. Because the slowdown in sales from a year ago is greatest in high-cost areas, there is a downward distortion to the national median with relatively more sales in low- and moderate-priced markets.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage slipped to 5.92 percent in April from 5.97 percent in March; the rate was 6.18 percent in April 2007.

Source: The National Association of Realtors®; Realtor.com

June 20, 2008 - An update to the saga below:  The property referenced in the article below STILL HAS NOT SOLD.  It's been almost one month. 

DO NOT OVERPRICE YOUR LISTING if you really want to sell within 60 days, or you will sit there.

That's the truth.

SOAPBOX MOMENTS !

Last week I met with a local resident who wanted to sell his Rockland home.  As usual, I did a very thorough "Market Trend" Market Analysis.  These compeititive market analyses take 4-6 hours to prepare and leave absolutely no doubt in the mind of the analyst (that would be me) exactly what the chances are of the seller's ability to sell a commodity that is in great supply right now.  I can predict quite accurately how much time, and within a few thousand dollars the expected price point at which the property will sell.  There is an old saying . . .

Facts and Figures don't lie, but "people do".  "Overpricing a listing is good for nobody," agrees Rick Landuyt, e-PRO®, an associate broker at Coldwell Banker Schweitzer Real Estate in Troy, Mich. I whole heartedly agree with this mindset.  This is why I always come prepared when I meet with a potential client and SHOW THEM what exactly is happening in the Rockland Real Estate market.  Unfortunately, this poor seller did not listen to my advice . . . he called in another realtor, who no doubt puffed him up with whatever drivel sounded good to this naive seller.  So .... the seller  "drank the kool-aid" and bought the big lie that "oh your property will sell very high because _________" blah blah blah.

Why would a broker take an overpriced listing anyway?

Mr. and Mrs. homeowner let me tell you a big secret that most real estate brokers
won't tell you.  The reason that they will take an overpriced listing, knowing full well
that they dont' have a snowballs chance in hell of selling it anywhere near the price they listed it for follows. 

You see, when the calls come in on that overpriced gorilla,   the caller will exclaim "what are you crazy"... I don't even want to see that house.  And all of a sudden that "realtor" will inform the caller that they do have other properties that are available in the price range they want to see.  

BINGO!  You, Mr. Overpriced Listing Seller person have just been used.  But you didn't even know it.  This scenario will play out over and over and over.  Within a few weeks you WILL begin to realize that you were lied to. But now its too late because you signed a 6 month (or more) listing.  They waxed eloquent about their marketing expertise and their database, and their thousands of agents, but here your house sits ... lonely and waiting for some poor slob to come see it, let alone make an offer on it.

So . . . there you have it Mr. Overpriced Listing Seller .... this is why a realtor (who in my opinion is not even a realtor) would take an overpriced listing.  I'm sick to death of the unprofessionalism I see day by day around me.

I can tell you Mr. Seller what you want to hear (wow your house is worth gold, when in my heart I know its not) or I can tell you the truth. 

Read more »

This property Sold and Closed yesterday (June 13, 2008)
It took 33 days.

It sold for $320,000.00

This unit was Listed March 13, 2008. It took 33 days for an acceptable offer to come in.
It was shown an average of 1 time a day during that time. There was considerable interest
in this unit. The seller's finally decided to accept an offer lower than usual because the offer
came in as cash.

This unit was in the E. Ramapo School District.

There is currently another unit located at 184 Eagle Ridge Way. Originally Listed for $340,000 and reduced to $337,500. It too has an accepted offer, however has not closed as yet.

Check back for further information. I'll keep you posted.

Below is a quck view of currently activity in Eagle Ridge in The Hamlets.

Condos for Sale in Eagle Ridge, Nanuet New York $334,000



Eagle Ridge Beauty!

This is a very popular unit in Eagle Ridge in The Hamlets. Another unit with the same floor plan was listed and sold by us within one week. This seller is asking $334,000. Its very hot right now, so if you have any interest at all, hurry!

Snazzy! Pristine. Mint, Move-In Condition! Come and See what they have done. Baths entirely refurbished. Stainless Appliances. Shows like a dream.

Tons of Extra Parking. Unit is tucked into a cul-de-sac. Walk to pools/tennis.

Click below for further information:
Condos for Sale in Eagle Ridge, Nanuet New York $334,000