Thursday, December 4, 2008
Mortgage Rates in 2009
Homeowners may soon enjoy mortgage rates as low as 4.5 percent if the Treasury Department has its way. According to The Wall Street Journal's on-line addition late Wednesday, the department is discussing a plan that would use Freddie Mac and Fannie Mae to push banks to make mortgages available at more than a full percentage point below the current levels for a 30 year fixed rate mortgage.
The plan under review might lower rates to the 4.5 percent range and would be in addition to a program announced last week wherein the Federal Reserve will purchase up to $600 billion of debt either issued or backed by Freddie Mac, Fannie Mae, Ginnie Mae, and the Federal Home Loan Banks. That program is already having an effect on mortgage rates which have dropped and caused investors to pay more attention to the stocks of banks and home builders.
Probably in response to the earlier new program and the lower rates, mortgage applications jumped a record 112.1 percent as seasonally adjusted over the previous week according to the Mortgage Bankers Association.
The Journal reported that the government would encourage banks to issue new mortgage loans at lower rates by offering to purchase securities backed by the loans at a price equivalent to the 4.5 percent rate; funding the program by issuing Treasury debt at 3 percent.
Under the Treasury Department proposal, the low rate would only be available to those purchasing a home, not for refinancing. Borrowers would have to qualify for a conforming mortgage that could be guaranteed by one of the government sponsored enterprises or the Federal Housing Administration. To qualify for those types of loans borrowers must be able to document their income and have sufficient income to make monthly payments.
The government hopes that this plan will increase the demand for homes and stabilize housing prices. Both of these factors are considered by many economists to be key to improving the current economic situation. It may also help a bit with the other primary housing concern - preventing foreclosures - as it may make it easier for homeowners in trouble to sell their homes and get out from under delinquent mortgages. In many cases, however, such an avenue will not be available to homeowners because so many lack any equity.
The Treasury Department plan is only in the talking stage and may not be ready until after President Bush leaves office on January 20 at which point it would be necessary for President-elect Obama to sign off on it.
Information source of this email
All the best,
Chuck and Cindy
Visit us online at ChuckandCindy.com
Wednesday, November 26, 2008
Don't Let National News Fool You..
Raleigh, N.C. —
Home buyers looking to capitalize on falling prices may have missed their best opportunity for a bargain in the Raleigh-Cary metropolitan area.
At least that’s what the latest data from the Federal Home Finance Agency show.
The number of new and existing homes sold across the Triangle fell sharply in October from September, according to the N.C. Association of Realtors. However, prices of homes were still 4 percent higher than a year earlier, the association reported.Even as housing prices plunge nationally at record rates, home values in Raleigh and Cary actually increased by 0.41 percent in the third quarter, the FHFA said Tuesday. As minuscule as the gain may be, it was far better than the average 1.8 percent decline nationally. Home prices also dipped in the Durham and Fayetteville metro areas, with Durham-area prices falling 1.59 percent and Fayetteville values dipping 0.67 percent. Over the past year, however, each of the three metros reported positive gains in prices: Raleigh by 3.84 percent, Durham by 1.53 percent and Fayetteville by 1.39 percent. Across North Carolina, prices are up 1.99 percent over the past year compared with a 4 percent decline nationally.
The FHFA’s data is based on home sales, appraisals and refinancings. Home sales in the Triangle – including Raleigh, Cary and Durham – dipped to 1,397 in October from 1,736 in September, the Realtors said. The average sale price of $248,693 was 4 percent higher than a year earlier. Sales in Fayetteville dropped 7 percent in October from September.
Source: Wral.com
For any questions or for your home buying/selling needs, give us a call!
Chuck Hinton: 919-469-6504
Cindy Leonard: 919-469-6505
ChuckandCindy.com
Monday, October 27, 2008
An update on our local market: Don't believe everything you read in the paper.
See below for the letter:
Responding to the News & Observer:
Stacey Anfindsen Shares More Accurate Depiction of Market and Five Reasons Not to Panic Over Local Home Prices
In response to the main headline in the 10/27/08 N&O, I am presenting facts to contradict
the headline, which is yet another attempt to scare local readers by using data from selected national sources. The writer states five reasons; crashing home prices, investor speculation, complex investments, job losses and repeat delinquencies. I will respond to each of these to provide some local perspective.
1) When analyzing our market, I look at data from the counties of Wake, Durham, Orange and Johnston. Within this market, the average closed price of all housing is up 8% and the average closed price of resale housing is up 6%. House price appreciation, which compares the two most recent sales prices of the same house , is an area where the Triangle outperforms the national market. Our current rate of house price appreciation in the Triangle is just over 4%. This rate beats the state (+3.6%) and national rates
(-4.5%).
2) The Wake County Revenue Department reported +/- 21,000 closed sales within the past 13
months. Roughly 5% of these sales were purchased by buyers from out of town, a huge difference compared to the 20% rate nationally.
3) It is almost impossible to track what percentage of local purchases were made via the subprime loan mechanism. Per the FHFA mortgage metrics survey for the second quarter of 2008, 17% of all outstanding mortgages in the U.S. are rated as subprime. Therefore it would be hard to argue that a majority of house purchases were made via this mechanism.
4) Job losses are real both nationally and locally. The Raleigh/Cary/Durham MSA did not have a workforce increase comparing 8/08 with 8/07 for the first time since the 8/01 versus 8/00 period.
5) The mortgage metrics survey reveals some additional information regarding the national mortgage market. They surveyed over 30 million outstanding loans in the Fannie Mae and Freddie Mac system and found that 98.6% of these loans were rated as current. They also state that foreclosure proceedings were initiated on 432 homeowners per day during the second quarter, a big difference from the 2,700 per day figure stated in the lead paragraph. There are currently +/- 14,000 listings within the four county area in TMLS. Roughly 3% of these listings are classified as foreclosure, bank or corporate owned. I have been tracking the residential market within the Triangle for over 20 years. The foreclosure market has
always accounted for a very small percentage of activity.
Our current market can be summed up with my version of the good, the bad and the ugly;
The Good
- Third quarter closings were the 6th highest in history.
- Current supply of 8 months is lower than national current supply of 11 months.
- Average house price appreciation is superior to state and national rates.
- Average re-sale sales price +6%, average overall sales price +8%, average list price +2%.
- Houses priced correctly have sold in an average of 55 days
The Bad
- Overall inventory grew 7%, making 2 consecutive months of less than 10% growth
Withdrawn listings increased 2% compared to 9/07
The Ugly
- 29 consecutive months of inventory growth, 20 consecutive months of lower pending sales
- 63% of all price points have an oversupply of housing product
- 9/08 expired listings were 227% higher than 9/07 expired listings
A survey of Wake County house purchases where the house was purchased and then re-sold within the past 12 months reveals a median percent per gain of 0%. I think that is pretty impressive compared to what is happening in the national market.
As we have seen during 2008, our local market is not immune from happenings in the national
market.
Our biggest challenges during the fourth quarter of this year and into next year are to growthe workforce and cut down on the number of price points with an oversupply of housing.
*We are dedicated to bringing you accurate information. If you have questions about buying or selling a home, please feel free to reach out to us.
Chuck (919) 469-6506
Cindy (919) 469-6505
Thursday, October 2, 2008
Creekside Commons Participates in 2008 Parade of Homes!
*Non-perishable food items include canned goods, peanut butter, cereal, rice, pasta, hygiene items (toothpaste, feminine products, soap), infant products (diapers, wipes, formula) and paper products (paper towels, toilet paper). No glass containers please.
Thursday, September 25, 2008
Safest Banks of 2008.
Bank Nederlandse Gemeenten (BNG) Netherlands
Landwirtschaftliche Rentenbank Germany
Rabobank Netherlands
Landeskreditbank Baden-Wuerttemberg-Förderbank Germany
Lloyds TSB United Kingdom
BNP Paribas France
Dexia Belgium
Wells Fargo United States
NRW Bank Germany
Wednesday, September 10, 2008
Hurry! First-time homebuyer credit of $7,500 expires July 1, 2009!
We just learned of this exciting news!
The Federal Government is offering a tax credit of $7,500 to first time home buyers! This is a wonderful opportunity for those looking to purchase their first home.
Click here for more information!
We would love to assist you in your home search.
To learn about us, visit our webite: ChuckandCindy.com
-Chuck & Cindy
Real People. Real Experience. Real Difference.
Monday, September 8, 2008
Fannie Mae and Freddie Mac Bailout - What does this mean for interest rates?
Lower mortgage rates, more than likely!
The below is from this recent news article:
"Sunday's federal takeover of Fannie Mae and Freddie Mac will likely translate into lower mortgage rates and greater availability of credit, experts said. Rates could drop by 1 percentage point from the stubbornly-high 6.39% for a 30-year fixed rate mortgage."This could be good for would-be homeowners," said Tom LaMalfa, managing director, Wholesale Access, a research and consulting firm. "It would reduce the cost of financing at the new and improved Fannie and Freddie."
"The government bailout is aimed at making mortgages easier to obtain and afford. By shoring up the mortgage financing giants, they can continue buying mortgages from lenders and injecting much-needed cash into the system."
"Fannie Mae and Freddie Mac are crucial to turning the corner on housing," said Treasury Henry Paulson. "Therefore, the primary mission of these enterprises now will be to proactively work to increase the availability of mortgage finance. Our economy and our markets will not recover until the bulk of this housing correction is behind us."
This is definitely encouraging news for those who are thinking of purchasing a new home. As always, we are here to help and answer any questions you might have about the home-buying process. Feel free to contact us!
Regards,
Chuck & Cindy
ChuckandCindy.com
Chuck Hinton: (919) 422-4841
Chuck@ChuckandCindy.com
Cindy Leonard: (919) 868-4661
Cindy@ChuckandCindy.com
Tuesday, September 2, 2008
We Have An Exciting Announcement!
Who said it's a bad real estate market? Not if you work harder & smarter!
We are very proud of this accomplishment and are very grateful for such fabulous clients. We love meeting new people and helping to make dreams of home ownership come true.
We look forward to continued growth and success.
Wishing you and yours the best,
Chuck & Cindy
ChuckandCindy.com
Thursday, August 28, 2008
10 Things You Should Know About North Carolina's Real Estate Market!
We recently came across this list and thought it was very important to share with potential buyers and sellers. We feel it is essential to reassure you of the local Real Estate market. So many forms of media focus on the many negative aspects that are generally in other areas. Unfortunately, many seem to generalize the market issues across all states but North Carolina's market is promising. Here's why.
10 Things You Should Know About North Carolina's Real Estate Market
- THERE’S NO SUCH THING AS A NATIONAL REAL ESTATE MARKET. If you read the newspapers, it’s easy to get the idea that real estate markets are the same everywhere. If conditions are bad in Orlando or Los Angeles or Chicago, they must be bad everywhere, right? Wrong. All real estate is local. When you’re looking to buy or sell, pay attention first to sales price trends, volume and inventory in your target market or region, rather than to misleading headlines about national sales trends.
- NORTH CAROLINA HOME VALUES ARE STABLE. In 2007, the average sales price of a North Carolina home grew by 4 percent, an indicator that homes generally are still worth more now than they were just a few years ago. In fact, since 2000, the average home sale price in our state has risen by more than 25 percent. And in a 12-month period through September 2007, North Carolina had the seventh-highest appreciation in home prices in the country.
- IT MAKES SENSE TO USE A NORTH CAROLINA REALTOR®. If you had a $150,000 legal question, would you deal with it without an attorney’s assistance? If you had a $150,000 income tax issue, would you dare risk not consulting a CPA? There are nearly 45,000 REALTORS® in North Carolina, who subscribe to a strict code of ethics and are expected to maintain the highest level of knowledge of the process of buying and selling a home.
- NOW REALLY IS THE TIME TO BUY. Interest rates significantly dropped twice in January in an effort to stimulate the national economy. While North Carolina’s economy hasn’t suffered as much as some states, we nevertheless can benefit from these lower interest rates. The bottom line is this: If you’re a buyer, this market is for you!
- AND IF YOU’RE A SELLER, BE PATIENT … AND SMART.Price your home correctly – your home’s value is what someone is willing to pay for it, not the price that you think it should sell for. Competitive pricing is the single biggest reason that a home sells or does not sell. REALTORS® know the marketplace and help you determine an optimum sales price.
- IT’S A PRIME TIME FOR SECOND HOMES. Savvy investors and prospective retirees understand how important real estate is to their portfolios. Nationally, about one third of all home sales are second homes or vacation properties; in North Carolina, that figure is nearly 40 percent – largely because of our inventory and desirable locations in the mountains and on the coast.
- OWNING A HOME BUILDS WEALTH IN A WAY THAT RENTING CAN’T. According to the Federal Reserve Board, the average renter’s net worth is $4,800. Contrast that to the average homeowner’s net worth of $171,000. Clearly, it pays to own a home, as the hard-earned equity you build will pay future dividends.
- THERE ARE HUNDREDS OF REPUTABLE MORTGAGE COMPANIES READY TO LEND. If you have good credit and a realistic understanding of what you can afford, getting mortgage approval to purchase a home can be more easily attained. Help is also available through the North Carolina Housing Finance Agency and other organizations.
- A HOUSE IS WHERE YOU MAKE A HOME, NOT JUST A BUCK. Most purchasers don’t buy a house to flip it. They buy it to live in it, to establish their roots, to raise a family and to build on the American Dream. The value of strong communities, civic pride, comfortable retirement, and a higher quality of life can’t simply be expressed on a balance sheet.
- HOUSING DEMAND IN NORTH CAROLINA IS ON THE RISE. Even in what was considered a down year in 2007, there were more than 125,000 existing home sales in North Carolina – that’s the third highest number ever, exceeded only by 2006 and 2005. And estimates indicate that the Tar Heel state’s population will increase by more than 400,000 by 2010. These new North Carolinians will need a place to live!
Source: NC ASSOCIATION OF REALTORS®
Visit us online! ChuckandCindy.com
Wednesday, August 20, 2008
Chuck and Cindy - A New Look!
Raleigh & Durham Receive Numerous Accolades!
- #1 Best Place to Live in the U.S. (Raleigh, NC) msnbc, June 2008
- #1 Best Place for Business and Careers (Raleigh, NC) Forbes.com, March 2008
- Top Five Strongest Real Estate Market (Raleigh-Cary, NC) Veros.com, January 2008
- #1 Seller's Market-Residential (Raleigh, NC)Forbes.com, June 1007#3 Best City for Relocating Families - Medium Markets (Raleigh-Cary, NC)Worldwide ERC and Primacy Relocation, 2007 Report
- #5 Recession-proof City (Raleigh, NC)Forbes.com, April 2008
- #4 Best State for Business (North Carolina) Forbes.com, July 2008
- #1 Best Place for Business and Careers (Raleigh, NC)Forbes, April 2007
- #1 Best U.S. City for Jobs (Raleigh-Cary, NC)Forbes.com, February 2007
- #1 School District in the Nation for Certified Teachers (Wake County)National Board of Certified Teachers, January 2007
Gold Rating (Wake County Schools)Expansion Management's Education - Quotient, January 2007
To see a full list of all Raleigh accolades, click here.
Durham's Recent Accolades
- #2 Best Green Cities For Lifestyle and Quality of Life – Country Home
- #3 Best Small City for Relocating Families - World ERC and Primacy Relocation
- #7 for Business and Careers - Forbes
- #15 Best Place to Live in the USA - Bert Sperling’s City’s Ranked & Rated
- #16 Best Green Places (overall) in America - Country Home 100 Best Communities for Young People - America’s Promise - The Alliance for Youth
- #1 MSA for College graduation rate among select national tech-focused MSAs - Knoxville (TN) News-Sentinel
To see a full list of all Durham accolades, click here.
Visit us online: ChuckandCindy.com
Friday, July 11, 2008
Cary Ranks 5th Amongst Nation's Growing Cities!
Quoted directly from the article, "Those who have moved to Cary recently from other parts of the country say they were drawn by its suburban feel, its affordable housing and its abundance of pristine parks, golf courses and shopping centers."
The diversity of the area also adds to the charming nature of Cary. Su Holshausen was interviewed for the article and states, "You can go to a pub and hear German spoken or see people watching a cricket match," Holshausen said. "You see ladies walking down the sidewalk in saris, straight from India or Pakistan, and all the nationalities seem to meld so happily. ... Whether they grew up in the South or moved here, everyone seems to be adopting the Southern hospitality."
Cary is truly a family oriented place and sure to feel cozy to anyone moving here. Miles from the larger metro areas such as Raleigh and Durham, Cary is nestled in just the right place. You can sit on your porch with a glass of sweet tea or go see a Durham Bulls game under the bright lights of the Durham Bulls Athletic Park. Cary and the Raleigh/Durham area in general have such a vast array of activities for everyone!
To read more about Cary and it's new ranking, see the full article here.
For more information on homes in Cary and the surrounding areas, feel free to contact us. We would be glad to answer any questions you might have!
Wednesday, July 2, 2008
Independence Day - A Day to Remember, a Day Never to Forget..
Wednesday, June 18, 2008
Forbes Ranks Raleigh Metro Area as #1 Best Place for Business & Careers!
Wednesday, June 4, 2008
Chuck & Cindy Announce New Subdivision in Apex!
Wednesday, May 21, 2008
Raleigh, Apex in Top Rankings!
Raleigh was ranked #5 on the Forbes list of Top 10 Recession Proof Cities! This goes to prove that National news headlines about the real estate slump do not reflect our local market. To see this list, click here.
Apex has also gained attention with it's own ranking of #14 in CNNMoney's List of the 100 Best Places in America to Live! This is very exciting news for those living in the area already or looking to purchase a home here. For more information on this list and to see other neat statistics about Apex, click here.
For more information on quality living in the Triangle area, please visit our website at www.chuckandcindy.com or feel free to give us a call. Chuck Hinton can be reached at (919) 469-6504 or (919) 422-4841. Cindy Leonard can be reached at (919) 469-6505 or at (919) 868-4661. While visiting our website, you can learn about our experience, services and current listings. We have numerous resources within the community and we are dedicated to finding answers to all of your real estate questions.
Thank you for visiting our blog and be sure to check back for other news and events!
~Chuck and Cindy
Monday, May 5, 2008
Creekside Commons..Welcome Home.
Monday, April 28, 2008
Chuck & Cindy Host 2nd Annual Creekside Commons Low Country Boil!
http://www.creeksidecommonsonline.com/
Chuck Hinton
(919) 868-4661