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Real Estate Market Overview July 19, 2008

  • Overall single family home average of sales in Fairfield County for the month of June ’08 compared to June “07 were down about 35%. In June ’07 there were 426 closings compared to 277 closings in June ‘08*
  • Inflation is increasing. The cure of choice is to raise interest rates. However, the Fed may be in a bit of a conundrum since the big banks that support our economy need the liquidly that lower rates provide.
  • “The sky is not falling. Keep in mind that the economy is cyclical and it will turn around. Interest rates will eventually tighten. Those who need to buy in Fairfield County should do so now while interest rates remain low and prices could be very reasonable.

* Statistics from the CMLS

Posted on July 19th, 2008 by  |  No Comments »

Show Guest July 19, 2008

Rob Daley of Daley Construction Fairfield County Connecticut

Rob Daley

Daley construction was founded in the 1950’s by John Daley Jr. and was run strictly as a remodeling company. In 1974 John Daley III took over the business and launched the new home construction division.

Today the third generation of Daley’s have joined the business and continue to work closely with John Daley III (Jack).
With a crew of 25 and over 100 sub-contractors Daley construction builds all types of quality new construction from high end homes, condominium complexes and commercial buildings. In addition to the new construction business, the renovation arm of the business continues to thrive.

Daley construction’s success is based on quality and knowledge. The company’s business is focused in Fairfield County Connecticut and having experience and extensive knowledge of this market enables Daley construction to build the right product at the right time. Daley construction prides themselves on getting projects done on time and within budget!

Posted on July 15th, 2008 by  |  No Comments »

What price should we offer?

Bottom fishing (making a very low offer) really doesn’t work. If a seller is so desperate to sell, they would have reduced the price of their home a few times already. With buyer representation, your agent can do a comparative market analysis for you to determine the value of the home you are interested in, so that you can make a reasonable offer. Because listing agents represent only the seller, they cannot do a buyer analysis for you except, if they get the seller’s permission, they can show you the comps they used in pricing the house.

Posted on July 9th, 2008 by  |  No Comments »

Show #1 Mortgages - July 2 & 3

On our show on Mortgages July 2 & 3, 2008

Jim Bremm , mortgage banker well let you know:

  • Will mortgage rates go up?
  • Is this a good time to buy a home?
  • When is it a good time to get an adjustable rate mortgage?
  • Can first time buyers get a mortgage?
  • Can you still get a 10% down mortgage?

Tune in on July 2nd and 3rd to find the answers to these question and more.

CHANNEL 77

MORTGAGES
Fairfield to Woodbridge CT
Wed. July 2, 2008 - 6:30pm & 10:30pm

Greenwich to Westport
Thur. July 3, 2008 - 6:30pm

Posted on July 2nd, 2008 by  |  No Comments »

It’s only a matter of price

Many sellers in Fairfield County are complaining to their agents that their home is not selling because their home is not sufficiently marketed either through print advertising or on the internet. The truth is, it is not advertising on the internet or in print that sells a home. It is the price that sells a home. If your property is not priced correctly than no matter how much marketing there is, the house won’t sell until it is priced correctly.

Unfortunately, many sellers see their home as an extension of themselves and a lower price would mean that they feel diminished in some way. Forget narcissism. It has nothing to do with your worth as a person. A home is just like any commodity. It is only worth what someone is willing to pay for it and nothing more. Sadly, some agents will try to “buy a listing” by telling their potential client that their home is worth more than it is worth, appealing to a homeowners sense of what they feel their home is worth. The agent that gives me the highest price is the one who will get my listing. Big Mistake!! My advice is to obtain several price opinions from different agents and make them explain in detail how they came to their price.

If you don’t have to sell, don’t. Keeping a house on the market at a non-competitive price will only hurt the home’s sale prospects by letting the listing become stale. It also keeps the supply of homes high which will have a depressing effect on the market. It’s only a matter of supply and demand.

Posted on July 2nd, 2008 by  |  No Comments »

Show Guest July 2, 2008

Jim Bremm - Home Loans

Jim Bremm - Senior Mortgage Broker

Atlantic National Mortgage
18 Kings Highway North
Westport, CT 06880

Office: 203-682-7127
Cell: 203-521-6776

jbremm@atlanticnational.net

www.jimbremmhomeloans.com

Guest on The Real Estate Forum TV Show: July 3, 2008

Born and raised in Fairfield, Connecticut, Jim put himself through college at Fairfield University where he earned a B.S. Degree in Marketing and an M.B.A. in Marketing and Management. Jim also holds a Connecticut Real Estate License. After living in the Georgetown section of Washington DC for 5 years and in New York City for 5 years, Jim currently resides here in your community.
Jim spent 8 years with Nabisco Brands in various Marketing, Sales, and Management roles; always exceeding expectations as evidenced through his 5 promotions during his tenure. During the 1990s, Jim ventured into the dot com arena, where he worked as a Client Manager for TMP Worldwide, the parent company of Monster.com. Given his known passion for real estate, Jim was asked to help launch a new division of Monster.com called Monstermoving, where he held the role of US Product Director. Monstermoving / Moving.com is a virtual relocation company where Jim and his team developed online real estate and mortgage strategies for Fortune 500 Companies and the various branches of the U.S. Government and Military. Jim was also a Loan Originator for Washington Mutual and a Senior Home Loan Consultant for Countrywide Home Loans.
Most recently, Jim brought his 15 plus years of mortgage and real estate experience to Atlantic National Mortgage. At Atlantic National Mortgage, Jim is a Senior Mortgage Banker and the Director of New Project Development.

In his spare time, Jim has purchased and renovated 12 homes which is his passion. Jim also held a volunteer role at the Washington DC animal shelter and is currently on the Board of Directors of the Fairfield Beach Residents Association. As an entrepreneur, Jim also invented and holds the patent for the Liberty Leash, which is a hands-free training tool for dogs.

Education, experience, and customer service set Jim apart from the rest.

Posted on June 27th, 2008 by  |  No Comments »

Banks tightening mortgage standards

Fed: Standards on consumer and business loans near historic highs in response to the credit crisis.

WASHINGTON (AP) — The Federal Reserve reports that more banks are tightening lending standards on home mortgages, other types of consumer loans and business loans in response to a spreading credit crisis.

The Fed reported Monday that the percentage of banks reporting tighter lending standards was near historic highs for nearly all loan categories.
The survey, conducted in April, found that nearly two-thirds of banks surveyed had tightened lending standards on traditional home mortgages with 15% saying those standards had been tightened considerably.
The current credit crisis began last year with rising defaults in the market for subprime loans, loans extended to borrowers with weak credit histories. Many of those subprime loans were packaged into mortgage-backed securities and sold to investors around the world.
Those investors, however, have pulled back from the subprime market and from other types of credit as losses have soared with the rising mortgage defaults.
As losses have mounted, more and more banks have grown reluctant to make loans and have been tightening up on standards. The Fed has been pumping billions of dollars into the banking system in an effort to encourage banks to keep lending to guard against the threat that the tighter credit could push the country into a deep recession.
The latest Fed survey found that banks tightened their lending standards on not just prime or traditional mortgages, but also on nontraditional mortgages such as “Alt-A” loans given to people who supplied only limited income verification. The survey found that about 32% of the banks responding to the survey had tightened “considerably” their standards for nontraditional mortgages and another 43% had tightened standards in this category “somewhat.”
The survey found that only nine banks are currently making loans in the subprime category, and of that group, seven had tightened lending standards either considerably or somewhat.

Posted on June 27th, 2008 by  |  No Comments »

Best time to buy in four years

It may be the best time to buy a house in more that four years.

Home prices have dropped so quickly and so far that valuations - the difference between what a home should cost and its actual price - are the lowest they’ve been since 2004, according to a report.
The Cleveland-based bank National City Corp. (NCC, Fortune 500), together with financial analysis firm Global Insight, revealed Tuesday that more than 88% of the 330 housing markets surveyed showed price declines and improved affordability during the last three months of 2007.
“Housing valuations are almost back to long-term norms,” said National City’s chief economist, Richard DeKaser. he called current affordability “the best in the past four years.”
“This isn’t to say home price declines are over,” he said. “We could move below historic norms. By the end of 2008, housing markets could be broadly under valued.”
Prices still improving…
There are still 21 housing markets, or 6% of those surveyed, that are severely over valued, including Atlantic City and Madera, Calif. That’s down from 56 overvalued markets at the peak of the housing bubble in 2006.
The report compares actual median home prices with what the authors determine are proper home values based on population density, relative income levels and interest rates, as well as historically observed market premiums or discounts, to determine whether markets are over or under valued.
The report also factors in market intangibles that make some areas more desirable places to live, and more expensive.
“Declines are no longer confined to once-frothy markets,” said DeKaser.
The survey covered home valuations during the last three months of 2007, but DeKaser pointed out there’s reason to believe that valuations are even more favorable for buyers today.
Price declines have continued into 2008 and interest rates, although they have inched up lately, have been steady or lower compared to late last year. There have even been wage gains; personal income rose 0.5% in December. Soaring foreclosure rates have added inventory to many housing markets, depressing home prices further.
The biggest gains in affordability occurred in California, Michigan and Florida, which are areas that have also been some of the hardest hit by foreclosures. Those states registered 43 of the 50 biggest price declines.
Bend, Ore. currently tops the over valuation list. Home prices there were judged to be about 59% higher than their fair-market value. Miami, despite a median home price decline of 5.7% last year, is the most overvalued big city, by 44%.
All the best bargains were found in Louisiana and Texas, Houses in Houma, La. were under valued by 31.2%, according to the report. Dallas was the most undervalued big city, by 30%.
COMMENT by Jim Bremm
Please keep in mind that Real estate is local. For the most up to the minute information on what is happening in a market where you are considering purchasing, seek out the advice of a professional Realtor.

Posted on June 27th, 2008 by  |  No Comments »

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