Demand for New Houses Softens in Several Markets
RealEstateJournal | Demand for New Houses Softens in Several Markets: "Several home builders say they are seeing softening demand for homes in a number of markets around the country, coming on the heels of a sharp drop-off reported by luxury-home builder Toll Brothers Inc. last month.
'We are seeing a slowing in the sales pace' so far in 2006, said Lennar Corp. Chief Financial Officer Bruce Gross, at the Wachovia Homebuilders Conference Tuesday. He said this is consistent with similar trends experienced by rival builders.
Ryland Group Inc., in a Securities and Exchange Commission filing Friday, said it has seen a decline in orders in the first two months of the year. During the conference, Ryland Chief Executive Chad Dreier said demand has declined in certain markets, such as Washington, D.C.
'There is an investor [speculation] overhang in that market [Washington], and it's going to take a couple of months to clear out,' he said, referring to a flurry of speculative buyers who are now leaving the market and have put their homes up for sale. Indianapolis, Cincinnati and Minneapolis have been flat, but he said the markets in Florida and Texas as well as Atlanta and Charlotte, N.C., remain healthy.
He said some markets -- such as Phoenix, Las Vegas and parts of California -- have seen softening order trends largely due to a lack of inventory related to delays in the opening of subdivisions, not a pullback in demand.
Toll Brothers last month said orders -- which serve as a barometer for revenue the company will receive when a home is delivered three or four quarters later -- plunged 29% in the first quarter that ended Jan. 31. The company said it expected orders to be weak for the next two quarters, before rebounding in the fiscal fourth quarter.
Standard Pacific Corp. said Monday that orders fell 13% in the first two months of 2006, largely as a result of sharp declines in California and Florida. This was partly offset by increases in Arizona and Texas."
Can a Mortgage Actually Save Your Life?
Christian Real Estate Network Member Article:
By Robert D. Ashby, CMPS
Solid Rock Mortgage
PEMBROKE PINES, FL - Almost everyone has savings in the bank, right? Well, the data from the Bureau of Economic Analysis (BEA) shows that despite our personal income increasing, our personal savings has decreased .2 percent during the months of October and November of 2005. That was even before the Christmas season.
What does this data mean? It means that on average, the typical American family is spending more than it earns. That amounts to increased use of credit cards or reducing our savings accounts. Ultimately, we are heading down the path of destruction.
Did you know that financial planners and those books you read on personal financial planning, including "Personal Finance for Dummies" by Eric Tyson, states that you should have three to six months of living expenses tucked away as an emergency fund?
Obviously, most Americans do not have this emergency fund. Most Americans do have a lot of equity in their homes due to the appreciation of their homes over the last few years. So there is a simple solution to many Americans lack of establishing an emergency fund.
So how does a mortgage save your life? Simply, it allows you to have an emergency fund available and ready for you. This will allow you to survive during an emergency situation. As in the case of unemployment, if you do not have the funds, you may not be able to pay your mortgage monthly and will end up in foreclosure, likely resulting in complete loss of all equity, no matter how much you had. It may even give you the money needed to pay for medical procedures that are required to save your life. It will definitely relieve stress in your life, keeping you healthier overall, just by knowing you have money available to pay the bills if necessary.
Also, in a disaster such as a hurricane, which would you rather have, $100,000 in equity in your home or $100,000 in cash or other investments? You can ask the mayor of Port Arthur, Texas that question. His statement after his house burned down in the aftermath of Hurricane Rita was, "The sad thing is, we just paid off our house!" Remember, the money you keep in liquid investments can pay your bills for months, even years.
The solution is to take out a mortgage in some form now, before the emergency happens. One reason is if the emergency keeps you from working, you will not qualify for the new loan at the time you need it. Also, if the house is damaged, you are not likely to obtain a mortgage until it is repaired.
If you do not have an emergency fund, and you have some equity in your home, you need to look into your mortgage options now, before it is too late. To do this, get with your financial planner or a Certified Mortgage Planning Specialist who can help you decide which strategy is best for you.
If you have any questions about this type of mortgage strategy or any others, please feel free to contact Robert D. Ashby at (954) 432-3450 or visit http://www.solidrockmortgage.com/.
About the author: Robert D. Ashby is President of Solid Rock Mortgage, a licensed Mortgage Brokerage Business in the state of Florida. He is a member of the Christian Real Estate Network and has been in the financial services business since 1998 and obtained his Series 6 and 63 Securities Licenses as well as Life and Health Insurance Licenses in the state of Virginia. He moved to Florida in 2002 and decided to focus solely on mortgages, obtaining his Mortgage Broker License for Florida in 2003 and then opening Solid Rock Mortgage in 2004. He has become Florida's first Certified Mortgage Planning Specialist and Florida's Debt and Equity Management Expert.
New Christian Property Inspector Service Launched
The Christian Real Estate Network is pleased to announce a new membership for
Christian Property Inspectors.
After a few years of waiting, the opportunity has finally arisen to be able to add Inspectors to our growing list of service providers. As with the membership for property managers and appraisers, the service for inspectors will be a free public directory.
To view this new directory, please
Click HereStay tuned to our website, and our Blog for further news and information...
Services for Christian: title reps, insurance agents, notaries, attorneys, movers, builders...
Soon to come....
Tips on How to Avoid Mortage Fraud
Inman Real Estate News - Banking group issues tips on fraud protection:
"1. Read and understand all of the mortgage documents presented to you before you sign them. Don't be afraid to ask questions about anything you do not understand. Realize that when you close the loan, you are personally responsible for repayment of the loan.
2. Be sure to thoroughly review the 'Good Faith Estimate of Closing Costs' that is required to be given to you by your lender. Ask about any parties being paid or fees you do not understand or with which you disagree. Ask for a written confirmation of the interest rate lock-in once you have agreed to lock in a rate.
3. Do not provide, or pay anyone else to provide, false information about your employment, income, credit or bank accounts. Be honest when completing the loan application and answering questions during the application process.
4. Never let anyone sign anything for you during the loan process without your written approval and authorization.
5. Do not close on a loan that you know has false or misleading information, including appraisals with inflated values, down payment or earnest money that did not come from you, or rental leases that you believe to be inaccurate.
6. Always request and keep copies of everything you provide to the lender and everything you are required to sign. Lenders should not have any problem honoring your request for copies.
7. Never accept payment for use of your name, credit or Social Security number.
8. Do not pay earnest money to anyone other than your real estate agent or the seller of the home you are purchasing. If you have doubts about who really owns the home you are purchasing, call the county tax assessor to verify the current owner and find out when they took ownership.
9. Never expect to get "paid" for purchasing a home. You are the one who should be bringing a certified check to the closing in order to buy the home.
10. Never pay anyone additional fees or costs associated with the loan closing or application process after the loan closes. If someone asks you to do this, refuse and obtain legal advice."
10 Secrets Most Lenders Don't Want You to Know
There are some very important considerations to evaluate before you commit to a home mortgage of any type. For many of us, our mortgage payment is the most important financial decision we'll ever make. Doesn't it make sense to know as much as possible about the financing of your home? Take the time to thoroughly investigate all of your options! Unbelievably, many of us sign the first mortgage placed in front of us. Typically the excitement of a new home purchase, lower payments or getting cash out distracts us, and reduces the realities of the new mortgage to not much more than an afterthought. What you read here could save you hundreds or even thousands of dollars.
Make sure you choose a seasoned mortgage professional who is established, is familiar with the mortgage business and answers all your questions. By aligning yourself with such an individual, you'll ensure that all the right financial steps are taken care of properly and economically.
1. Utilize a Mortgage Broker
There is truly a difference between banks, credit unions and mortgage brokers. Mortgage Brokers are much more flexible than most institutional lenders. A Broker works effectively with you, the title company, your insurance company, your realtor and other parties associated with your loan while also coordinating the best rates and fees for your new mortgage. Mortgage Brokers can make a substantial difference in setting up the most economical financing, because they offer a wider variety of choices, and this will literally save you tens of thousands of dollars over the life of your loan!
2. Don't Attempt Paperwork Alone
All the paperwork required to complete the home loan can sometimes be very intimidating and frustrating. A Mortgage Broker can make this process easier, and make sure you receive an estimate and explanation of costs before the process begins. A Mortgage Broker's expertise will help alleviate the stress while proving to be invaluable before you sign your new mortgage.
3. Look at All Your Options
Make sure you see more than one loan program before picking your mortgage. Brokers have the widest variety of programs available today, and they'll work with you on deciding which one is the best for your circumstances. After all, it's your money!
4. Demand Service
There's a big difference between a big bank, credit union or Mortgage Broker when it comes to service. There can also be a vast difference between rates and fees. A Mortgage Broker typically processes all their loans locally in their offices, which allows them to evaluate, approve and move on as quickly as possible. Don't overlook the fact that you are the one spending the money and brokers are clearly the ones who can cater personally to your needs. Most often, brokers can qualify you when most banks or credit unions won't.
5. Stay in Complete Touch
You're the customer so you should receive regular updates about your loan process and items needed. This will ensure that no details are overlooked and there will be no surprises. Feel free to ask as many questions as you like.
6. Negotiate a Flexible Loan
Don't just accept the terms that are set down in front of you. With Mortgage Brokers you can expect to receive full details of your loan while negotiating the best loan possible. Make sure that you understand the terms of your loan.
7. Don't Give Up on the First No
Having trouble getting a loan? Initial decisions are not always final decisions. Going through a Mortgage Broker can sometimes get you the loan you need, but do so with patience. Brokers can work with you to clear up credit situations and get you ready for your YES!
8. Don't Wait for Rates to Decrease
The odds of your hitting the bottom of the market are about like the odds of your hitting the state lotto! You will almost never hit the bottom of a market purposely, and trying to time it exactly right is often costly. It usually causes a person or family to miss out on the opportunity to obtain the best mortgage. You're better off simply negotiating the best rate and terms you can at the time you're ready. You can float your rate during the process stage, if interest rates go down, you can lock. This is a much better approach because you won't miss out on the best rates.
9. Be Honest With Your Broker
Your broker wants to help you with your loan. The only time they get paid is when you get approved. The more information (good or bad) you provide your broker, the easier it will be to get an approval. It helps them present the loan in the best light. This in turn helps the loan get the highest approval rating.
10. Become Completely Educated
Pick your broker's brain. They will teach you all about your various options, even if you haven't found the right property yet. They will be very patient with you while you are looking, especially if you have aligned yourself with the right agent. They understand all the up-front work will pay off in future business. You, the client, will then continue to refer people to the courteous and service minded broker on down the line.
Article compliments of: Temple Payne -- Senior Mortgage Consultant
Universal Bancorp
www.UBLOAN.com
773-263-2718
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Update on Zillow.com
Earlier last week, we reported on a brand new service launched in February called Zillow.com.
We thought we'd give you a quick update on their progress...
Since opening their online doors last month, they have jumped into the coveted top 1,000 websites on the web according to Alexa.com. This is probably one of the fastest growing sites of all time, considering they are only a few weeks old.
The only other real estate related website in the top 1,000 is realtor.com, and inman news reported they had even topped their ranking at one point last week.
what does this new site mean for the real estate industry as a whole?
Here is an exert from
inman news:
"If Zillow is successful, Realtors will have to redefine their value proposition. Ever since inception, Multiple Listing Services have provided important sales documentation that was not available to the general public. Zillow provides not only comparable sales data, market statistics that show whether prices in a given area are increasing or decreasing, but it also provides its Zestimate of how much a given property is worth. The market data is particularly useful information for Realtors to know because it can assist them in helping sellers to set accurate list prices. It can also assist buyers in identifying how much they should pay. Where Zillow faces major challenges, however, is providing accurate values for its "Zestimates."
Zillow's success ultimately will rest with how well its algorithms evaluate comparable sales data and then supply an accurate sales price. The problem with Zillow's model is that there are several other companies doing a better job of supplying accurate comparable sales data. Sadly, virtually no one seems to have noticed.
Over the last six months, several new companies have entered the realm of providing comparable sales information on the Web. The first entry into this foray was Trulia.com. Trulia's goal is to become the Google for the real estate industry by working with brokers directly. This so-called "vertical" search engine will direct visitors to specific agent sites based upon the user's search. In other words, rather than using the general Google search engine that generates lists of nursing homes, for example, when you search "homes for sale," Trulia will direct its users directly to agent sites that match the client's search request. This increases the accuracy of the search. According to Greg Sterling, an analyst with the Kelsey Group, this produces a better-qualified lead as compared to leads generated by Google, MSN or Yahoo. The Trulia search engine provides comparable sales, links to listings, as well as a mapping feature. As Trulia works with more brokers, their data will become increasingly accurate. Since they launched in July, their beta search engine contains a fair amount of data from California and New York, but is still unavailable in many places throughout the country."
The Top 10 Places To Raise Kids
Real Estate Journal --The Top 10 Places To Raise Kids:
"Schiller generated two lists, one that factored in home values and one that didn't. 'We ran the research twice for each metro area, once without including cost at all and the second one with cost, looking for much more reasonably priced areas,' he said.
'That revealed the top choices and the best value communities in each of the U.S.'s top 10 metro areas.'
The following are the top locales for families with children, in each of the 10 largest U.S. metropolitan areas, with cost not a factor, according to Schiller.
- In the Boston metro area: Sudbury, Mass.
- In the New York metro area: Manhasset, N.Y.
- In the Philadelphia area: Richboro, Pa.
- In the Washington area: Potomac, Md.
- In the Detroit area: Bloomfield Hills, Mich.
- In the Chicago area: Lake Forest, Ill.
- In the Dallas-Ft. Worth area: Highland Park, Texas.
- In the Houston area: Sugar Land, Texas.
- In the San Francisco Bay area: Los Altos, Calif.
- In the Los Angeles area: Moorpark, Calif.
The following towns are the best-value locales for families with children, in each of the 10 metro areas, according to Schiller:
- In the Boston metro area: Holden, Mass.
- In the New York metro area: Andover, N.J.
- In the Philadelphia area: Downingtown, Pa.
- In the Washington area: Columbia, Md.
- In the Detroit area: Troy, Mich.
- In the Chicago area: Wheeling, Ill.
- In the Dallas-Ft. Worth area: Richardson, Texas.
- In the Houston area: Stafford, Texas.
- In the San Francisco Bay area: Suisun City, Calif.
- In the Los Angeles area: Simi Valley, Calif.
