My New Blog

It's the 4th of July weekend so I will make this short and sweet....

Albany has been rated :

• The #1 most recession proof city in the NATION per Yahoo!

• The 9th top best city in which to raise a family per Forbes

So, add this to the low interest rates ( now UNDER 5% in many cases), and the incredible amount of inventory of homes on the market...makes for a winning equation for just about ANY home buyer.

Call me at 518-366-2856 and I will give you even more facts- if you want them and need them!

HAPPY 4th of July!

The tax credit frenzy is over and ,boy, did it help the Capital District region with home sales. Now, the deadline has passed and now what do we do?

Just like "Cash for Clunkers", the incentive shifted demand to the first quarter of the year. Time sensitive buyers were out there buying up homes which ultimately adjusted upward the price home sellers were getting.

But, the party is not over- ESPECIALLY if you have not yet purchased. Why?

1) Mortgage rates are low. A 30 year fixed rate loan is now under 5%. With rates bouncing back and forth from 5 to 5.625%, a loan under 5 % is highly attractive. Just saving .375% on a loan can save you $45.00/month on a $200,000 loan amount. Thats $540.00/year!

2) Inventory of homes is high. People still have to sell their homes and with the mass frenzy of buyers having come and gone, those that are in the market now are seeing homes with out the competition that was of months past. Yes, good homes priced right, sell fast and that will ALWAYS be the case but less competition for the same home with fewer buyers puts you in the drivers seat.

For the complete facts, take a look at this short video

Capital District Skinny for May 2010

Well, its been almost 1 month now since the federal tax credit has expired and the real estate world did NOT end. In fact, I find that the market is rather busy!

Yes, a lot of folks who were thinking of buying have bought a home to take advantage of the free handout from Uncle Sam. BUT... homes are still hitting the market and they are still being sold- so, the well is NOT dry!

In fact, not only are buyers out there STILL taking advantage of the LOW interest rates; home prices are rewarding sellers even more with the median price per home selling at about a 5% higher price than last April at this time. When home prices have fallen the for many consecutive months/years having an increase is surely a sign of rebound and recovery!

Take a look at the following short video to see the market for yourself!  Be sure to call me at 518-366-2856 with any questions and also  for market data for YOUR particular town in the Capital District!

Capital Region "Skinny" Video

With the federal tax credits expiring on 4/30 for both first time buyers ( including those who have not owned a home in the past 3 years) and for those current home owners who are buying after living in their current home 5 out of the past 8 years, what will happen to the market?

It's anybody's guess. With the governments "cash for clunkers" car trade in program, automobile dealers saw a decline in sales. Pent up demand was exahausted and those "on the fence" quckly decided and took advantage of what Uncle Sam had to offer them.

With homes, will it be the same? New listings now are fierce. Prices are fair and I am finding them to be rising from what I have seen in the past. Buyers are out there and I am still seeing multiple offers on homes that are priced fairly or even just a tad bit under market value.

With real estate, unlike cars, someone is always needing a home. Someone is always getting married, divorced, moving in for a job or for some other reason or moving out. It seems the incentive did its job and sales boomed during this tax credit period, however, the market will continue after this is over.  So, if you are still planning on buying or selling, yes, there will be homes for you to buy and if you are selling, there will still be buyers to buy your home.

Please call me if you have any questions! 518-366-2856

Karen

The deadline to get your $8,000 first timer credit or the $6,500 current homeowner credit is fast approaching. April 30th is the deadline in which to have a contract for a home.

Buyers are out there in droves, believe me,  looking to take advantage of this credit. Seems like homes under $150,000 are flying off the shelves. Pickings are getting slim as inventory of homes is dwindling but buyers are still out there.

Here are the latest facts and stats of our real estate market

 Stats: http://www.techvalleyhomes.com/stats/2010-02indicators.pdf

Video:  http://www.youtube.com/watch?v=T7i12Trz47A

If you want the stats on your particular area or town, let me know!

Sometimes writing a blog is so easy as I have so much to share in this ever changing industry. Today is one of those days as I had an experience with another agent that just proves that real estate agents are not all alike.

While attending a home inspection for one of my buyers, I struck up conversation with the listing agent of the property. We exchanged thoughts on the market and I explained that I have been very busy doing market analysis on homes, however, some sellers havent yet listed as they feel their home is worth more than what the facts state. Some, in fact, have listed with other agents at higher prices ( they are still all on the market at this writing, however)

The other agent said to me "take it anyway- you can always drop the price". Personally, I was floored! How does this bring expertise and service, to you, the seller?

Considering the first 3 weeks a home is on the market is its highest attention getting time, considering that coming back to you asking for a price reduction has wasted precious time in the market, not to mention, those buyers that would have bought, considering it's my reputation and your referall of me as to my services and knowledge; why throw all that away to have some "ego moment" of getting the listing?

I am here to deliver not disappoint. I work hard, do my homework up front, present the facts as they are and work with you to make the best decision. Let the other agents have EXPIRED all over their name. I want SOLD on mine as well as a list of happy customers!

Just what I expected would happen, those first timers looking to take advantage of the tax credit are still out buying homes. This made our January sales figures jump nicely! What was interesting to see is that the number of listings hitting the market is down and the median sales price is dropping at a lower rate.

With fewer homes and plenty of buyers, basic economics would dictate that home prices should stabilize.

Whats going to happen once the tax credit expires? My guess is that things will slow down as pent up demand will be exhausted. Perhaps in the fall once it will pick up again? I hope I am wrong and that sales continue strong through the summer but those lucky buyers with the $8,000 being given to them from Uncle Sam ( really you and me) are buying now or have already bought. Check out the video:

http://www.youtube.com/watch?v=vy2q5GQWr0Q

Call me with questions 518-366-2856

The Capital District Real Estate market is cooking right along with first time buyers taking advantage of the $8,000 credit that the government is handing out.

Once this credit expires, I am wondering what will happen to this frenzy in the marketplace? I am thinking a slow down will prevail this Spring/Summer. Add to this the suspected increase in mortgage rates AND the increase in FHA parameters; I am thinking if you are going to buy- buy now.

Take a look at this video which gives the "skinny" on the Capital District Market

http://www.youtube.com/watch?v=vy2q5GQWr0Q

Call me with any questions!
518-366-2856

I hear changes are coming from the FHA this spring with the goal to help solidify the finances of this benefical governmental program. But what are they going to do??

The FHA program is an alternative and widely accepted source of securing funds for a home purchase and  provides funding for homes for folks that may not otherwise be able to get the opportunity for home ownership. Here are a few changes that I have noted:

Credit Score and Minimum Down Payment- A credit score of 580 and above will still allow you to put down a minimum down payment of 3.5%. A score below that will require a 10% down payment.

Sellers Concessions- This is when you can roll in part of your closing costs into the purchase price to eliminate "out of pocket" expenses at the closing. Currently the guidelines allow for a 6% contribution, the requested changes will allow for only 3%. For example, if you were buying a home with an agreed upon sale price of $150,000. currently, you could roll in 6% ( or $9,000) into the price for a true purchase price of $159,000. Of course, the home would have to appraise out for this higher value. With the proposed changes, only $4,500 would be allowed. This means buyers will need to have more cash at the closing to pay for closing costs.

Upfront Mortgage Insurance Payments- Currently, the FHA tacks on 1.75% on top of the borrowed amount to fund the reserves to pay out when loans go bad. The new amount proposed is 2.25%.

What does all that mean to you? If you are not a candidate for conventional borrowing ( credit scores typically in the upper 700's, 5-10% down) then FHA is the way to go . With these changes, it will be more costly to use this program but considering the low interest rates, lower sales prices in the market these days and the governmental credits, its still the way to get the "American Dream" of owning your own home.

Again, these are proposed changes are not in effect at this time. Details and information subject to change.

For more information on the FHA program and for information about buying a home,  please call me at 518-366-2856.