Signs of Spring...

Finally, some hopeful signs for the spring market

Last week the stock market began to rally. It’s anyone’s guess how long this spring thaw on Wall Street will last, but we have to take the good news as it comes. It's like the little green shoots that s-l-o-w-l-y start ripping through the winter's debris. Any good news at this point on the economy is bound to provide a boost of some sort to the battered housing market.

And the stock market is not the only thing to watch! There are other signs as well. Residential construction, after falling for countless months, rebounded by a surprising 22 percent in February. Apartment construction led the way – not surprising since the falloff in demand for new condos and homes has created renewed interest in lending.

Other signs are that residential sales have also slowed in their decline.

The latest nudge to the economy is the Fed’s equally surprising move to infuse an addition $1 trillion into its campaign to warm up still stagnant lending markets. The Fed will buy an additional $750 million in government-guaranteed mortgage back securities and another $300 billion in longer-term Treasury securities.

All this should further lower interest rates on all loans, including mortgages, the NY Times reports in its story on the Fed’s move.

For those of you who are looking to buy, the water is getting warmer...seems that a lot of your fellow buyers have stuck in their toes and are now jumping in!

Mariaaaaaaaaa
:)

Mortgage Lifeline For Those Who Are Current WithTheir Mortgage! YEAH!

Here is some exciting news from one of our mortgage broker friends, Mona Wong, mom of adorable twins...

Mariaaaaaaaaaaaa
:)


Hi-

March 4th is when the guidelines will be rolled out for the housing plan. This will allow some of those who are in a situation where they are current with their mortgage but can not refinance because of the value. If you or someone you know who can benefit from this please have them contact me so that I can help them get their documents together and ready for march 4th. It may not be able to help everyone, but it looks promising….

Any questions please contact me.

Thank you!
Mona

Thank you for your business!

Mona SooHoo Wong
Mortgage Consultant
mwong@village-capital.com
c) 617-818-7430
f) 877-504-8357

Divorce and the Housing Crisis

I often search other websites for helpful information. I oftentimes find myself visiting www.http://massachusettsmom.blogspot.com/ Last week's post was quite interesting... I would suggest going there too because she has additional comments in the next post that is worth reading too!

Mariaaaaaaaaaaa
:)

Tuesday, December 30, 2008

Divorce and the Housing Crisis

There's one more story I can't resist commenting on and that's this one about couples who are having a hard time splitting up in this economy. In some cases, the couples were counting on the equity in their homes to start anew but now there's no equity. In other cases, each partner is trying to stick the other one with a house that can't be sold.
But it's Josh Kaufman of Cleveland who really caught my attention. It won't be real hard to figure out why Mr. Kaufman is getting a divorce after you read this. It seems Mr. Kaufman viewed the whole split as a "business" arrangement and, as his wife couldn't afford to buy the house from him, he just waited her out until the house lost so much value that eventually he didn't have to pay her a thing. Not one dime for the house that was appraised at one time at $1.5 million. There was "no emotion involved" says Kaufman. And, after all, he was just looking for a way to turn a "negative situation around." Now that's a real prince of a guy.
Here's the full story on Kaufman:
"Josh Kaufman and his wife bought a new 6,500-square-foot house outside Cleveland on five and a half acres, with four bedrooms and two three-car garages, that was worth $1.5 million at the height of the market. When they divorced in June, Mr. Kaufman knew his wife could not afford to carry the home. The longer the divorce process continued, the more the house depreciated; by the time he assumed the house, its appraised value was half what the couple had put into it; he did not pay her anything for her share.
“From a negotiating standpoint we knew that she couldn’t afford to stay in it,” Mr. Kaufman said. “It appeared as an opportunity to turn the negative situation around. There was no emotion involved. It was a business decision on what made most financial sense. It wasn’t an attempt to take advantage of someone.”
Still, his lawyer, Andrew A. Zashin, said, “He bought this house at a bargain basement price.”

Here's hoping the next Mrs. Josh Kaufman reads the New York Times, either that or has the sense to keep the house in her name and hire a really, really good lawyer.

Suze Orman Visits MOMSWHOBUYHOMES

It is with great pleasure that we feature Suze Orman who had these important reminders about real estate. As always remember to take a deep breath and read on...


Real Estate Reality

By Suze Orman

The incredible rise in home prices over the past few years has made real estate the "it" investment. We're looking at homes as if they're ever-rising stocks that will never decline in value. But thinking like that can land you in big trouble.

Don't get me wrong: Real estate is a terrific long-term investment, but the key is long-term. Your house is a place in which you and your family will live. Over time you should also expect its value to rise at about the rate of inflation, not at 15 percentage points above it. Even Federal Reserve chairman Alan Greenspan, who fueled the current real estate mania by keeping interest rates low, has said that he expects the hyper-growth to end and that we could even see a decline in prices.

Condos are especially vulnerable. People have been buying up units they'll never live in, hoping to sell them quickly for a profit. But recent sales data shows that condo prices are already beginning to slip. Condos are also spending more time on the market than in previous months.

The only reason to buy now is if you intend to live in the condo or house for at least five years—otherwise, you're taking on a huge risk if we slide into a down market.

If you do have long-term plans and decide to buy, be very careful with the type of mortgage you choose. Steer clear of short-term adjustable rate mortgages or interest-only options. The only types of mortgages that make sense are traditional fixed-rate mortgages or longer-term adjustables (often called hybrids) with an interest rate set for five, seven, or 10 years.

If you're itching to take a risk, buy a pair of avant-garde designer shoes. But when it comes to real estate, you'd be wise to play it conservative.

Another deep breath and you are on your way!

Warm regards,
Mariaaaaaaaaaaaaaa
:)

FEAR VS TRUST - which will YOU "buy" into?

I have a very different background than most other real estate agents mainly because of my degrees (Boston College-BA & Simmons College-MBA) and my almost 2 decades working for some of the largest public relations firms in the world. Additionally I've also developed a deep passion for studying human behavior. With that kind of background it is incredibly interesting to see people's reactions to what is happening in real estate.

The media focuses on what sensationalizes. They do this because it hooks people and that is how media outlets survive. For example, if you're flipping through channels and you hear, "dangerous storm coming" you are much more likely to stop on that channel, then if you hear, "beautiful weather expected". It's human nature, part of our genetic makeup linked to helping to keep us alive. We don't live in the same dangerous world as our great-great-great-great-great-great-great-great-great grandparents but we still pay attention to those triggers.

When it comes to selling or buying in this market, fear is what is still selling papers. What I see happening is that people are so fearful that they FREEZE. They let the fear override every fiber of common sense they have. One of my clients Steve (not his real name) was going to help out his daughter and her family by buying a bank-owned property. This property was in great shape and listed for less than half of its value, even for these times. Steve is the rare person who saved a significant amount of money and could buy this house oughtright with no mortgage and it would still only affect a small portion of his money. After much back and forth, Steve decided to follow the advice of his financial planner and keep his money in stocks/mutual funds. (BTW, the person he went to for advice is also the same person who would be benefitting from his keeping his money in the markets.) Four days later the market crashed and he lost a large chuck of it. Had he bought the house he would have lost none of it and would actually have built equity because it was being bought way below market value. In the meantime, that house sold for even less that it was advertised for. That FEAR helped Steve make a decision that was not in his best interest. Even if the markets had not crashed he still could not make as much money in the markets as he would have from this deal.

When decided what to do for your specific situation, use your breath, relax, write it down, talk it out. See what makes sense and what feels right. Always remind yourself that you are always safe and that everything is happening in divine order.

LISTING 101

In this HGTV-loving society what is acceptable in a house has dramatically changed. When buyers look at a home they want it to be like they see on tv. The smartest thing potential sellers can do is spiffy up their home. Yes, it can be a pain in the butt, BUT it is part of how smart people sell their home. While you live in it you can do whatever you want. When it's time to sell it you need to move it from the status of HOME to HOUSE and market it like you would a product. Not fully addressing this issue and swimming in the emotional attachment of a property will cost you BIG money. Get rid of all of your personal stuff, stage it, de-clutter. It is a form a semi-moving. Most of my clients have a really hard time with this. Many do nothing and it costs them time and money, even if they eventually do it. The people who make the most money are those who take this step seriously.

Warm regards,
Mariaaaaaaaaaaaaaaaaaaa
:)

www.brickhouserealty.com

A Challenge Out There...Moms Grab Your Hammers!

Hello Moms!

Thanks for coming back and getting another dose of fun and informative realty reality. Most real estate agents cover only a specific area so they get stuck in just the info for that area. I like to shake things up a bit so I did a seach today for ALL single family homes in Massaschusetts that are FOR SALE and found some interesting information:

-There are 28,521 for sale.
-429 were listed in the last 3 days.

Ooops! Just to show you how crazy the market is, this morning I started writing this blog, went to a long meeting and went back to check the stats a few hours later and now the numbers are:

30,361 for sale!!! WOW! THAT IS NUTS! This is only in Massachusetts which again proves that it is a FABULOUS time for buyers!

Ok, so with these new results can you guess what the lowest priced home in Massachusetts is this week? (drum roll)


166 Brombach St, Pittsfield, MA
6 room, 2 bed, 1 bath Ranch
$35,000 (isn't that the price of a car???)
Approx. Living Area: 1294 sq. ft.
Approx. Acres: 0.19 (8276 sq. ft.)
Heat Zones: Forced Air, Gas
Parking Spaces: 2 Off-Street
Needs a lot of TLC.

For explore more fun properties like this go to http://www.brickhouserealty.com/ and sign up to view properties. Don't worry we won't sell or give your info to anyone not even to our own moms!

Have a fantastic week!
Mariaaaaaaaaaaaaaaaaaaaaa
:)