Market Report Update For February, 2009

Yes, we had a much better January in 2008. (See Statistics on this same page.) I had a great January last year too in the number of families that we moved and sold. This January is not too pretty, nor is February. It is to be expected! Prices have fallen some, really for the first time. The buyers that are out there want good buys, so are coming in lower and expecting more. Foreclosures are still there but with multiply contracts and bidding which does not allow a buyer to “steal” the property. Some of those foreclosures need to be left alone with all the work that is needed. Don’t have too many investors in the market with cash since it is very hard to get a loan on some of those houses in their condition and very hard for an investor.

We are selling more FHA’s with 3.5% which anyone can use the Government loan and borrow close to $300,000. FHA does have MIP but that mortgage insurance is now tax, so just pay it. 5% down is still available on Conventional with PMI (private mortgage insurance) but there are very few seconds out there. (We were doing a lot of first and seconds to get an 80% loan to value.) If there are any seconds, the interest rates are very high. The seconds are the ones that have been wiped out on a foreclosure since the first wipes out any other loan (except a tax lien) when they foreclose on the property.

Getting qualified has been getting tougher though! We could get you a loan with a credit score of 580 but now you must have a credit score of 620 in order to get an FHA loan which is the easiest loan to qualify for! Keep working on those credit issues and don’t be late on your payments!

With interest rates still closer to 5% and below and prices lower, what are you waiting for to buy? Call us for your Planning and Strategy Meeting to see if you can or should buy (without obligation).