My New Blog

Fixing the economy can all be described with one word: Confidence. We need the consumer to be confident enough to make long-term decisions such as purchasing a house for their long-term security. We need businesses to be confident enough to hire workers so that they can expand in the long-run. We need investors confident enough to purchase financial instruments so that banks are confident enough to lend to businesses and consumers. Certainly, the past few years have not been a period of confidence. On the other hand, sometimes events outside our own control give us another perspective. The tragedy beset upon Haiti is of a magnitude that is hard to conceive. Yet, the response of the world to the aid of this small country also is of a magnitude that is hard to conceive.

While we expect major economic powers such as our country to step forward, the realization of this world effort comes from stories of countries such as Norway. Norway, with a population about half the size of New York City, is contributing over $17 million to the cause. The plight of Haiti puts our crisis in perspective. This country knew of their vulnerability to an earthquake, but did not have the financial resources to rebuild. Our problems are many and many have suffered. But we are a great and resilient country and we must have the confidence that we can overcome our issues. Perhaps as we rally around Haiti, it will move us to rally our country out of our own crisis of confidence. We can do so much more for the world if our own economy is stronger. One indication would be a positive preliminary report of economic growth for the fourth quarter. This indicator is just around the corner.

Some seasonal home search hints:

Home Shopping-Don't wait til spring. True, there's a greater choice of homes in the spring, but sellers then can better stick to their asking prices because of demand. Most people don't do that. They just get carried along with the crowd. Additionally, when home loans are less in demand, some lenders can give a break on costs.

Hint- Slow season can be a great season to get a deal.

Off-season dealing: Sellers in winter, are often more motivated to deal, some real estate agents say. "I've had my best months in the winter and early spring".

Hint- There is less competition in the winter, so you might get a better chance at the home you want.

        And don't forget to bring an umbrella....

: )

If you have any questions or comments: Chuck.Mortgage@Gmail.com

Nearly 5 million houses and condos, of which the loans are delinquent, will go through foreclosure over the next few years, a new study by John Burns Real Estate Consulting Inc. concludes. This represents more than half of the 7.7 million households now behind on their payments. The situation is worst in Arizona, California, Florida, and Nevada. Burns calculates that there is an inventory equivalent to 27 months of sales in Orlando, 24 months in Miami, and 18 months in Las Vegas. Consulting firm CEO John Burns says there is strong investor demand for these properties, so as long as employment continues to recover and rates remain moderate, these sales won’t have much impact on overall prices. Source: The Wall Street Journal

Nothing new here if you are following the market. We have seen this trend coming for quite some time. Truth is investors and first time buyers are grabbing up the properties faster than the banks can release them.

We experience multiple offers on almost every foreclosure we see. Hopefully buyers who are "on the fence" waiting for the bottom will realize they may have already missed it and get in before rates and prices go back up..