Selling In A Depressed Market

It's not easy for an agent to move a property these days.

When a potential buyer shows up, it's essential they have impeccable financials. Every time escrow falls out, the property losses value. Over exposure is a killer. Sellers should realize that marketing a home in these conditions is a more sensitive process than in the recent past, and that before over exposure creates a permanently negative impression, it's time to regroup and wait for a change of atmosphere.

Over 70% of home buyers rely on the internet for info. The most effective approach to marketing your property is to have it positioned on a strong web site. The web master should purchase a domain name for your property and position it on the selling agent’s home page for maximum exposure. And, make sure the web site has substantial traffic.

Subprime Lending

Big changes in the mortgage market

More and more borrowers are finding the ability of some borrowers to qualify for a mortgage difficult, if not impossible to qualify for.

Realtors, you should offer these borrowers information about conventional products like fixed rate and traditional ARMs that may be good choices for first-time homebuyers -- both prime and subprime. 

Info should provided concerning responsible nontraditional mortgages and hybrid subprime mortgages which may also be the right choice for borrowers who can afford them.

FHA and VA have also recently made significant improvements to their programs that can be valuable financing tools for many homebuyers.  Realors should be able to provide this info, and lenders in the area offering these products. 

Credit Problems...Ignored No Longer

The credit squeeze is finally and officially here and not a surprise to anyone. It was inevitable, while buyers and lenders continued to make deals and ignore the consequeces. The problem has finally been revealed, and it's not going away.

Central banks have poured in cash, but the underlying problem will continue to grow.

Inerest rates for traditional Fannie/Freddie/FHA/VA mortgages are plus or minus 6.75%.

For the high-rollers of luxury properties, jumbos are around 7.25%; Alt-A for big-down high-FICO, 9 percent. NINE. In three weeks' time the clock has turned back to 1995.

A very serious situation indeed.

“June Pending Home Sales Index” Shows Market Improvement

The Pending Home Sales Index, reports an upward trend in sales. based contracts signed in June Pending Home Sales Index indictes 0.5% increase in sales, compared to the May downward revised index of 97.5, but is 8.6% below June 2006 when it stood at 112.0. At a 5.0% monthly gain, this is the largest gain in more than three years, following a 6.1% increase in March 2004. There is an indication that major declines have already occurred, with further declines if any, to be modest considering the pent-up demand.

The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

Prices in ManhattanBeach and HermosaBeach are holding, or slightly up during this month’s activity.

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