Southern NH Real Estate Answers

Our Market and the Economic Stimulus Package

As a REALTOR, and a constituent, I want to stress how important it is for  us to motivate the Senate to vote for increases in the FHA and GSE loan limits in the Senate's economic stimulus package. These provisions will create safe and affordable mortgage options for our state's homeowners and provide much needed stability for our local economies.

The critical role that Fannie Mae and Freddie Mac (GSEs) play in providing liquidity to the mortgage market has never been more evident than it is today. The national sub prime meltdown has had a dramatic impact on both the cost and availability of mortgages in my market. Since August 2007, the interest rates for jumbo borrowers have been more than 1 percentage point higher than conforming loans, which can cost homeowners up to $400 month in higher interest payments.

Raising the GSEs' conforming loan limit will provide immediate relief to borrowers and alleviate downward pressure on our already fragile housing markets. According to the National Association of REALTORS, increasing the GSE loan limit will result in more than 300,000 additional home sales and strengthen current home prices by 2 to 3 percent.

I also believe that increasing the FHA loan limits is critical to helping bolster our fragile housing market. Current law restricts FHA loans to levels well below the median home price in many areas of the country and caps loans in high costs states at $363,790. These limits are preventing many homebuyers from using FHA to purchase or refinance their loan. The proposed provision will increase FHA loan limits nationwide by raising the floor to $271,050 and the limit to 125% of local median home prices. These increases will help an additional 138,000 Americans purchase and 200,000 families refinance their homes safely and affordably.

I hope we can rally enough support to include increases for the FHA and GSE loan limits in the Senate's economic stimulus package. Our national housing and mortgage finance markets need stability and an immediate infusion of liquidity. Both of these provisions are necessary if our nation's families, housing markets and economy are to move beyond the crisis they now face.

State of the Market

As a Real Estate Professional I know how vital it is to know your market.  I keep track of my market's statistics on a regular basis.  This not only allows me to better inform my clients on what to expect when buying or selling, but also allows me more successfully guide them through the whole process. My advice: Know the State of YOUR Market.  Information is a POWERFUL tool for success. State Of The Market * January  21, 2008
Active on Market	376 days
Average List Price	$269,776
Average Sale Price	$244,219
List to Sell Ratio	94%
Average Market Time	77 days
Number of Sales YTD	9 homes
Number of Expired	29 homes
Depreciation	12%
Depreciation over 2 years	25%
Number of Months Supply	7.62 months
Current Interest Rate - 30yr fixed	5.69%

*Information is for the Manchester, NH .  Subject to errors and ommisions.

Up-side down mortgages and Short Sales

The wave that I see hitting us at the moment is these upside down mortgages or short sales that I wrote about earlier this year. I just closed a transaction on a 3 family on the the west side of Manchester today. The seller owed the bank $300,000 and had NO tenants in the property to help defray the cost of the mortgage. Or should I say NO paying tenants. After many snares and snags with the mortgage Co. the transaction closed today at $247,000. The seller agreed to a long term loan of 97 months in the amount of $5,000 and the bank accepted the loss on the difference. The seller no longer has the headache or the money pit. The lender no longer has the debt of the bad note which was getting worse and the buyer owns a piece of real estate that he can care for. If your in "up-side down", don't fret there are options. The worst thing that you can do is stick you head in the sand and ignore the problem. Instead, seek help from a professional Realtor or HUD counselor. The Short Sale is a detailed but fairly straightforward process that can work to benefit Buyer, Seller and even the Lender. The Buyer gets a good price on a home, the Seller gets to avoid the disruption and credit hit of a foreclosure and the Lender avoids the delay and expense of foreclosing on a property they don't want to own and that would negatively impact their ability to make more loans.

Reverse Mortgages...

Reverse Mortgages, what are they?

 

A little "buz" is happening in the real estate world. It's called Reverse Mortgages. A reverse mortgage is a loan against your homethat you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or repay a loan each month.

Sounds too good to be true doesn't it?

To be eligible for such a program, you must own your own home and be 62 years of age or older. You do not typically have to pay anything backuntil you die, sell your home, or permanently move out of your home. This is a unique way to keep those who qualify in their homes. To not be burdened with real estate taxes and other maintenance issues that can plague a mature home owner. So that they can continue to enjoy quality of life.

Remember: you never see a uhaul truck a long side the casket!

A-CHOO...."God Bless you"

The Federal reserve slashed a key interest rate by 1/2 point today.

What does this mean to us here on the streets?

If you are a borrower who can obtain credit, you should see rates drop on various kinds of loans. It will be less expensive for people to finance credit card debt, home equity lines of credit and other consumer based loans. Borrowing this kind of money usually pays for things like  education, home improvements and medical expenses.

For those of you who have ARM loans (adjustable rates mortgages) that are scheduled to re-set in the fall , you will have the benefit of the rate not rising as much as it could have if the Feds did not lower the basis point at all.

There are blessing in everything, you just have to look!

The economy has the flu and the Feds are trying to keep the flu from turning into PNEUMONIA!