St. Louis Real Estate - Mortgage News - Rate Cut

Filed under: First Time Home Buyer, For Buyers, Mortgage News

Fed Rate Cut! Mortgage Rates Rise!!

As expected the Federal Reserve lowered short term interest rates today. For the news story please click here.

So why are interest rates rising? If you have paid any attention to my previous writings you will understand that the Bond Traders make moves prior to a Fed announcement to position to profit from any move the Fed might make. In this case, they took their positions last week starting on Wednesday when the consensus was a .25% rate drop. Today and for the next few days they will be trading and taking their profits off the table. While doing this the demand for the bonds will drop off and the yield or interest rate will rise.

So what should you do? Don’t worry about it! For most consumers .25% means less than $50 per month. Make your decisions based upon long term goals and work to eliminate the non tax deductable debt that you might have. There are still enough loan programs that you can offset that .25% by other means such as interest only products or even better yet the long forgotten but still the better than an adjustable rate mortgage the 2-1 buydown.

If the speculators are correct the Fed will make more moves in the next 60 days and if you are smart you will get a relationship with a professional Mortgage Banker who will manage your mortgage for you and let you know when you should take advantage of market movements prior to Fed actions. It is always better to be proactive than reactive!

For comments or more information on have your mortgage managed please contact Chris Scheer at chrisscheer@stlouisrealestatevoice.com

Posted by doug   |   Read More   |   Your Comments Are Welcome!   |   10.31.2007

St. Louis Real Estate - Off Topic - OMG!

Filed under: Real Estate News

WE’VE BEEN RANKED!

Thanks to our readers, guest editors, and the TOMATO.

Posted by doug   |   Read More   |   2 Comments »   |   10.30.2007

St. Louis Real Estate - Mortgage News - Downpayment Assistance

Filed under: First Time Home Buyer, For Buyers, For Sellers, Mortgage News, Real Estate News, Relocation Buyer, Unrepresented Seller(FSBO)

Downpayment Assistance Rule:

For the past few years, FHA has allowed charitable non-interested parties to supply the down payment to a borrower on FHA loans. Unfortunately, this practice caused housing prices to be inflated as the seller would raise their price and then contribute the increase to the charity as a donation. The charity would then give a gift to the borrower and thus have the down payment for a home with an FHA mortgage. The challenge is that the borrower had no vested interest in the house and when times got tough it was easy for them to walk away since they would be losing nothing other than a home with an inflated price. Selling the home was difficult in a flat or declining real estate market. This practice is one of the logs on the bonfire of the mortgage industry that is burning across our nation.

Here is the latest on this practice:

FHA will issue official guidance regarding implementation of the regulation regarding a mortgagor’s cash investment. In the interim, to address the questions raised by many industry partners, FHA is providing the following information:

1. Nehemiah Corporation of America, due to a previous Settlement Agreement and as discussed in the rule, is granted relief from the effective date of the rule until April 1, 2008.

2. HUD has agreed to grant the AmeriDream Downpayment Assistance Program relief from the effective date of the rule until February 29, 2008.

3. All other similar downpayment assistance providers have not been granted relief from the effective date of the rule, which is October 31, 2007.

Provided that the homebuyer has entered into a contract of sale (including any amendments to purchase price) on or before October 31, 2007, FHA will recognize the gift if made to the homebuyer and properly documented as an acceptable source of the downpayment.

To read the final rule in its entirety and for more information please visit: http://hudclips.org/sub_nonhud/cgi/pdf/4846a.pdf

For questions or comments please contact Chris Scheer at chrisscheer@stlouisrealestatevoice.com

Posted by doug   |   Read More   |   3 Comments »   |   10.30.2007

St. Louis Real Estate - Mortgage News - Get on It

Filed under: First Time Home Buyer, For Buyers, For Sellers, Mortgage News, Real Estate News, Relocation Buyer, Unrepresented Seller(FSBO)

Lock Now! by Chris Scheer, Branch Manager, Cornerstone Mortgage, O’Fallon, MO

Over the last week we have seen interest rates for fixed rate mortgages drop between .25% and .375%. Why is this you ask? Wall Street is taking positions based on what they think the Federal Reserve will do with short term interest rates. For those of you that are waiting until the Federal Reserve Board makes its announcement at 1:15 p.m. C.S.T. on Wednesday October 31, 2007 you will be too late. See my previous writings about how the market moves before and after a Fed meeting.

Other things to consider, with the 30 year fixed rate hovering just above 6% we are at a psychological barrier. For the long term rates to go below 6% takes tremendous pressure. I don’t see the economic reasons that would apply this pressure taking place at this time. There are too many other signals that rates should be going up as opposed to down. This could be your last time for 6 months to lock into that really low rate!

Contact Chris Scheer at chrisscheer@stlouisrealestatevoice.com

Posted by doug   |   Read More   |   1 Comment »   |   10.28.2007

St. Louis Real Estate - Mortgage News - Time is Money

Filed under: First Time Home Buyer, For Buyers, Mortgage News, Real Estate News, Relocation Buyer

Guess What? You Can’t Afford to Wait! by Chris Scheer, Branch Manager, Cornerstone Mortgage, O’Fallon, MO

If you had a crystal ball and could see what direction interest rates and house prices where going you wouldn’t be reading this blog. Now that you have had a chance to think about that and agree with me on that premise, let’s move on to the bigger issue which is “You Can’t Afford to Wait!”

If interest rates go up while you are reading this blog you will lose money! Why you ask? Because you could have locked into an interest rate for a period of time and by waiting you may have missed that opportunity.

What are you waiting for?

When are you going to:

1. Purchase your first home?
2. Purchase your next home?
3. Invest in real estate?
4. Refinance your home?
5. Get a home equity loan to improve your home or pay off bills?
6. Do anything?

If rates go down while you are reading this you will lose money. Why you ask? Because now you will get greedy and wait for them to go down further. By the time you figure out they are at their lowest point they will be on the way back up again. Remember, pigs get fat, hogs get slaughtered.

If you don’t make an offer on that house you like, someone else will. Maybe not today, but sooner or later someone will purchase that house. The sooner you do it, the sooner you get a chance to lock into building equity and creating wealth. I subscribe to the theory that there is a house out there for everyone and sometimes you want to buy the wrong house. But that is why you should have a good buyer’s agent representing you. They will make sure that you buy at the right price for this time and that the house is the right house for you at this time.

If you are thinking about buying investment property, what are you waiting for? The next 12-18 months will be the best time to purchase single family investment property here in the United States for at least the next 20 years. Every day that you wait to start you are passing up the chance to build your real estate fortune!

If you wait to get that home equity loan it might not be available to you when you want. The loan programs that were available in March 2007 have changed. Credit score minimums have changed, loan to value limits have changed. House prices may have fallen your area limiting how much you can borrow. Waiting will cost you $$$$$$$$$$$$$$.

Contact Chris Scheer at chrisscheer@stlouisrealestatevoice.com

Tags: St.+Louis+Real+Estate, Mortgage+News, Mortgage+Rates

Posted by doug   |   Read More   |   Your Comments Are Welcome!   |   10.28.2007

St. Louis Real Estate - Building Inspections - Fireplace

Filed under: Building Inspection News, First Time Home Buyer, For Buyers, For Sellers, Relocation Buyer, Unrepresented Seller(FSBO)

FIREPLACE INSPECTIONS by Harry Morrell, Allied Building Inspections

Cooler weather is nearing and home buyers will want to be sure that the fireplace and all its components are intact and operating properly. Fireplaces and their components are a big part of real estate transaction inspections and should be included in your inspection report when buying your home. An ASHI inspector is qualified to deliver a comprehensive report and inspection on the fireplace components. If the inspector observes red flags and safety concerns, a qualified chimney sweep will be recommended to perform any repairs, replacements, or service needed for safe and proper fireplace operations. A chimney sweep is qualified to perform a level three fireplace inspection, which is above and beyond what is needed for a real estate transaction inspection. The sweep is the best person to go to for repairs and improvements for any fireplace issue or concern.

There are two types of chimneys. One for the venting of gas fired appliances, and the other for fireplaces. This article only concerns information for fireplace components.

The fireplace inspection is focused on safety issues as well as structural integrity of the fireplace and chimney chase. Masonry chimneys shall be constructed on foundations of solid masonry or concrete at least 12 inches thick and at least 6 inches beyond each side of the exterior dimensions of the chimney. Footings should be installed below the earth frost line. Chimneys should be structurally sound, durable, smoke tight, and capable of conveying flue gases to the exterior safely. Clearances from combustibles is important and is something the inspector looks for. A two-inch clearance is required on a fireplace chimney in both interior and exterior installation. Chimneys are required to be lined with clay tile or approved metal liners. The inspector may not be able to totally view all flues from top to bottom. If there is any concern or blockage noted, a qualified chimney sweep should be recommended to service the unit before use. The actual brick chimney chase structure should be carefully inspected for cracks, displacement, deterioration, and leaning. Inspectors should be sure the structure is completely intact and sound, falling bricks can cause serious injuries.

The interior fireplace itself will be inspected for structural integrity, clearances from combustibles, and free of significant creosote build up. Creosote build up can result in devastating fires that are almost impossible to put out. Your inspector should raise a red flag and caution the buyer not to operate the fireplace until it is cleaned and serviced. Lighting and operating the fireplace is usually never done for real estate transaction inspections.

Wood burning stoves and fireplace inserts are popular and can certainly add warmth to a house as well as a pleasing decorative feature. However, most of these type units are added on to homes after the house was built and may have had amateurish installations. The unit itself may not be UL rated which raises additional safety concerns. The inspector should thoroughly inspect these appliances and recommend a qualified chimney sweep to make all necessary improvements and repairs for safe and affective service.

Harry O. Morrell
Allied Building Inspections, LLC
Certified ASHI Inspector

Harry can be contacted at HarryMorrell@stlouisrealestatevoice.com

Posted by doug   |   Read More   |   1 Comment »   |   10.28.2007

St. Louis Real Estate-Market Watch October 27, 2007

Filed under: First Time Home Buyer, For Buyers, For Sellers, Real Estate News, Relocation Buyer, St. Louis Market Reports, Unrepresented Seller(FSBO)

St. Louis Real Estate Market Watch 
October 27th,  2007
The Anatomy of St. Louis Real Estate

The St. Louis Home for Sale Team provides a weekly St. Louis County and Bi-weekly St. Charles County Market and Jefferson County Market Watch Report to review and plug into your home buying or selling scenario. Your questions and comments are welcome! 

The St. Louis Real Estate Market this week is continuing to show signs of slowing with less active listings, less homes accepting contracts and the pending ratio dropping to 11.32%.  However, we are still seeing the average listing price of homes that are on the market continuing to inch upward and the average selling price inching downward. WHAT!? One explaination may be that with less competition in the marketplace and with the market showing some signs of stability, new sellers entering the market now are pricing their homes a bit higher.  Sellers that have been on the market for 90 to 120 days or longer are accepting a lower offer now, as the frustration and stress of being in the marketplace for 3–5 months is taking it’s toll. 

Buyers that are in the marketplace now still know full well that we are still very much in a buyer’s market, but again, with less inventory, they may not be able to be as choosey and picky as they might have been this past summer. That being said, our over-all average selling price still fell by over $1000.00 from last week and almost $2000.00 from 4 weeks ago. 

We are still seeing less homes sold; about 300 less than a month ago and the number of listings that the market has rejected (expired) continues to rise, as some sellers are fed up with the process and are not re-entering the market. Their explaination for this is that they will “wait till the holidays are over” and try again. We still talk to sellers that tell us “we’re going to wait till next year when the market is better”.  We hope these sellers re-evaluate their situation over the holidays and do what is necessary to make sure their home sells the next time. PRICE, CONDITION, MARKETING; that’s what it takes. The sellers that hit the mark on these three points from the beginning are usually rewarded by having met their goals and their home sells.

As we’ve said before, our indicators tell us that the market we have now is what we will deal with well into next year also.

This is St. Charles Market Watch week and the St. Charles market is following the same trends as our St. Louis County market. The only major difference we see is that by following St. Louis trends, with only about half the active listings, St. Charles market times and months of inventory levels are higher.

TRIVIA: IF you’re a seller that also believes in LUCK AND PRAYER—There is a superstition here in St. Louis that by doing “something” outside in your yard will help your home sell. WHAT IS IT YOU MUST DO IN YOUR YARD? AND..it has nothing to do with perfect landscaping.

Answer next week.

 Thinking of buying or selling a home? Contact Us for additional information tailored to your specific needs.

St. Louis Real Estate St. Louis County Market Watch October 27, 2007

St. Louis Real Estate Jefferson  County Market Watch October 20, 2007

St. Louis Real Estate St. Charles County Market Watch October 27, 2007

St. Louis Real Estate Benchmark Report September 2007

The report begins by breaking the market into 17 distinct price ranges. Then we show current listings and current pending listings which creates a pending ratio, which is helpful on a week to week basis to see if activity is increasing or decreasing in a price category. 

The report also shows the last 6 months of results and compares the data to the same 6 months of the previous year. 

The Market Analysis includes data on: 

Number of Active Listings (Current)
Pending Sales (Going to closing)
Pending Ratio (Active vs.Pending)
Sold (Last 6 months)
Expired (Last 6 months)1
Average List Price
Average Sale Price
Average List to Sales Price %
Days on Market (DOM)
Months worth of Inventory (Based on current pending rate)
Buyers Market: > 7 months of listing inventory

Transitional Market: 5 - 7 months of listing inventory (sometimes called a “balanced” market)

Seller Market: < 5 months of listing inventory

Average % Sale Price/List Price (0-30), (31-60), (61-90), (91-120), (120+)DOM
           
Notice that you’re paying a penalty for over pricing. . .hey. .it’s a fact!!  

The Benchmark Report is produced monthly for:

• Single Family Residence
• Ranch Style
• 1300 - 2000 sq.ft.
• 3 Bedrooms
• 1.5 Bathrooms  

Art Wagner can be reached at art@stlouisrealestatevoice.com

Posted by art   |   Read More   |   Your Comments Are Welcome!   |   10.27.2007

St. Louis Real Estate-Market Watch Report October 20, 2007

Filed under: For Buyers, For Sellers, Real Estate News, Relocation Buyer, St. Louis Market Reports, Unrepresented Seller(FSBO)

St. Louis Real Estate Market Watch 
October 20th,  2007
The Anatomy of St. Louis Real Estate

The St. Louis Home for Sale Team provides a weekly St. Louis County and Bi-weekly St. Charles County Market and Jefferson County Market Watch Report to review and plug into your home buying or selling scenario. Your questions and comments are welcome! 

 Our St. Louis Real Estate Market seems to have stabilized itself over the last several weeks. This week we are actually seeing the pending ratio increasing slightly again, with additional listings and additional homes accepting contracts. Even the average listing and selling prices are inching a bit higher. The movement isn’t anything to get excited about yet, but at least it’s in the positive direction.  On the negative side, our days on market averages are remaining in triple digits and our average month’s of inventory still says we are definitely in a strong buyer’s market.  In the price ranges that actually move the St. Louis Real Estate Market, we are seeing somewhere between 6–9.8 months of inventory. When our market is “balanced” here in St. Louis, we typically see 5–7 months of inventory.  It tends to be the higher priced homes that are inflating our averages, with days on market over 125 and inventory as high as 24 months. 

This week, the Jefferson County Market Watch Report shows fewer active listings, but a bit of an increase in the pending ratio, moving from 9.6% two weeks ago to 10.5% this week.  The average listing and sales prices are also inching up a bit.  The average month’s inventory for Jefferson County has increased from 10 months two weeks ago to 12 months this week.  Sales seem to be slowing a bit, following the rest of St. Louis’ fall trend.

BUYERS AND SELLERS: We had a brief discussion with Eric West, one of our readers who also resides in the Midwest, and being in Real Estate, has developed a unique program to help buyers who have challenges qualifying for a mortgage and for sellers who are having challenges selling their home the traditional way. 

If anyone is curious or would like to have more information, please send us an e-mail with your request, and we will put you in touch with Eric.

Thinking of buying or selling a home? Contact Us for additional information tailored to your specific needs.

St. Louis Real Estate St. Louis County Market Watch October 20, 2007

St. Louis Real Estate Jefferson  County Market Watch October 20, 2007

St. Louis Real Estate St. Charles County Market Watch October 13, 2007

St. Louis Real Estate Benchmark Report September 2007

The report begins by breaking the market into 17 distinct price ranges. Then we show current listings and current pending listings which creates a pending ratio, which is helpful on a week to week basis to see if activity is increasing or decreasing in a price category. 

The report also shows the last 6 months of results and compares the data to the same 6 months of the previous year. 

The Market Analysis includes data on: 

Number of Active Listings (Current)
Pending Sales (Going to closing)
Pending Ratio (Active vs.Pending)
Sold (Last 6 months)
Expired (Last 6 months)1
Average List Price
Average Sale Price
Average List to Sales Price %
Days on Market (DOM)
Months worth of Inventory (Based on current pending rate)
Buyers Market: > 7 months of listing inventory

Transitional Market: 5 - 7 months of listing inventory (sometimes called a “balanced” market)

Seller Market: < 5 months of listing inventory

Average % Sale Price/List Price (0-30), (31-60), (61-90), (91-120), (120+)DOM
           
Notice that you’re paying a penalty for over pricing. . .hey. .it’s a fact!!  

The Benchmark Report is produced monthly for:

• Single Family Residence
• Ranch Style
• 1300 - 2000 sq.ft.
• 3 Bedrooms
• 1.5 Bathrooms  

Art Wagner can be reached at art@stlouisrealestatevoice.com

Posted by art   |   Read More   |   Your Comments Are Welcome!   |   10.20.2007