St. Louis Real Estate-Market Watch February 21st, 2009

Filed under: St. Louis Market Reports

Saint Louis Real Estate-Market Watch  by Art Wagner @ Keller Williams Realty Southwest, Sunset Hills, Mo.
February 21st, 2009
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 continues to see active buyers in the market and a small increase in active listings, especially in the prices ranges at $350,000 and below.   Our pending ratio has improved a bit as well, pushing just over 12 percent. 

Our average days on market are still in triple digits, and we are showing 8.3 average months of inventory, which still says that it is definitely a buyer’s market.  In the lower price ranges, our inventory levels are between 5.8 and 8.6 months,  as the price ranges that move the market are continuing to better the average. 

This should be a sign for sellers, and buyers sitting on the fence right now.  Don’t wait till Spring to list your home or start looking for a home or you’ll be behind the curve.   Plus, why wait till spring and have your home amidst the other thousands of listings that will be coming on the market. 

Now that President Obama’s Stimulus package has been written into law, first time homebuyers have a bigger incentive to get out and buy.  The First Time Home Buyer tax credit has been increased to $8000.00 PLUS it is now basically a grant; you don’t have to pay it back; UNLESS you live in your home less than three years. 

REAL ESTATE AGENTS AND FOR SALE BY OWNERS- Are your listings and / or home sitting on the market too long?? 120 days or more??  We have a program designed to get your listing or FSBO home sold.  Real Estate Agents get paid their commission in full.  Contact us for more info.

 WHO DO YOU KNOW NOW that is challenged with their mortgage payments OR needs to sell for less than their home is worth?? WE CAN HELP!! 

Posted by Art Wagner   |   Read More   |   Your Comments Are Welcome!   |   02.22.2009

St. Louis Real Estate-Market Watch February 14th, 2009

Filed under: St. Louis Market Reports

Saint Louis Real Estate-Market Watch  by Art Wagner @ Keller Williams Realty Southwest, Sunset Hills, Mo.
February 14th, 2009
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 continues to show good activity with buyer activity in the lower price ranges.  We experienced a small increase in active listings this week and a small increase in homes that have accepted contracts.  We anticipate this activity to continue, especially with our weather cooperating by allowing buyers to get out to view homes without trudging through rain or snow. 

We need to mention a change that you may have noticed on our Market Watch Reports recently.  When looking at the data for average sales price to list price  averages, the percentages have dropped significantly when you look at the “days on market” columns labeled, 31-60, 61-90, 91-120, and 120+. 

This is due to a change that our Multiple Listing Service made several weeks ago.  They are now using the original or beginning list price compared to the final sales price.  Previously, they were using the current list price, or the adjusted list price when the home sold as the basis for their comparisons.

The previous method was a bit mis-leading, as it produced list price to sales price percentages that were above 90 percent for the most part, no matter how long the home was on the market.

This new method more accurately reflects the actual percentage comparison based on the days the home is on the market.  We are told that all history in our Multiple Listing Service is being adjusted also.

With the new method in place, it really emphasizes the fact that sellers must be priced within market value from the very first day of their listing in order to obtain maximum dollar for their home.  The days of “Lets just try this higher price” for a while are gone.   

REAL ESTATE AGENTS AND FOR SALE BY OWNERS- Are your listings and / or home sitting on the market too long?? 120 days or more??  We have a program designed to get your listing or FSBO home sold.  Real Estate Agents get paid their commission in full.  Contact us for more info.

 WHO DO YOU KNOW NOW that is challenged with their mortgage payments OR needs to sell for less than their home is worth?? WE CAN HELP!! 

Posted by Art Wagner   |   Read More   |   Your Comments Are Welcome!   |   02.14.2009

St. Louis Real Estate-Market Watch February 7th, 2009

Filed under: St. Louis Market Reports

Saint Louis Real Estate-Market Watch  by Art Wagner @ Keller Williams Realty Southwest, Sunset Hills, Mo.
February 7th, 2009
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 shows a bit of an increase in activity, with an increase in active listings and a small increase in homes accepting contracts.  Our pending ratio is remaining fairly stable at 11.11 percent. 

The price ranges from $100,000 up to $300,000, which are the price ranges that continually keep our St. Louis Market moving are still doing their part. Pending ratios in these ranges, for the most part, are well above the average. 

I’m sure everyone has heard by now that the National Pending Home Sales Index ROSE 6.3 percent based on contracts written in December.  The better news is that in the Midwest, the index actually increased 12.8 percent; almost twice the National average.  The concensus is that these increases have been spurred by buyers reacting to lower home prices and lower mortgage interest rates.  We will be getting the January figures about February 25th; we’ll see if we sustained that increase in January.  

We still have a long way to go before we say that our “housing slump” is over, but it’s great to hear some good news for a change.  And you can take that to the bank!!

Speaking of  banks, those buyers out there looking for those “super low” interest rates should read Aprille Trupiano’s article about those “below 5 percent” rates that a lot of lenders are advertising now.  They may not be as attractive as they first appear to be.

 REAL ESTATE AGENTS AND FOR SALE BY OWNERS- Are your listings and / or home sitting on the market too long?? 120 days or more??  We have a program designed to get your listing or FSBO home sold.  Real Estate Agents get paid their commission in full.  Contact us for more info.

 WHO DO YOU KNOW NOW that is challenged with their mortgage payments OR needs to sell for less than their home is worth?? WE CAN HELP!! 

Fill out the form below to view the Market Report.

Posted by Art Wagner   |   Read More   |   Your Comments Are Welcome!   |   02.08.2009

St. Louis Real Estate – Where is my 4.75% Rate I was Promised??

Filed under: Mortgage News

If You’re Holding Your Breath for 4.75% Interest Rates, You’d Better Read This First 

 The last few weeks in the mortgage industry have been a flurry of activity to say the least.  Mortgage Professionals have had little chance to dial out and reach our clients.  With all the incoming questions about refinancing or picking up the pace on finding a new home and take advantage of great rates, it’s all we can do to keep up with the inquiries.  (No complaints mind you-can I get a Hallelujah?)

The persistent question is, however, “Where is the 4.5% rate I’m hearing about?  Can’t I at least get 4.75% rates?” 
Answer:  “YES!” 
Addendum:  “It’s gonna cost you to get it”

Case in point, I had a long standing client call to tell me that a bank affiliated with his insurance company called to offer him a 4.375% 30-year fixed loan, with $0 closing costs.  He was going to take the deal over my offer of 5.25% 30 year fixed with $0 closing costs.  I called him back immediately and told him if he could truly get that deal, he should SIGN the paperwork NOW!!  I couldn’t offer him the same deal and if they were serious, it wouldn’t last long.

I offered him one last bit of free advice.  He was, after all, a good client and I couldn’t help but look out for his interests.  “Get a Good Faith Estimate” I told him.  I’d be happy to look it over with you and review it for you at no charge.  Just to make sure you’re getting what you deserve.  His credit is stellar, assets in fine shape, loan to value low.  He ought to get a great mortgage…he’s earned it.

He called me three days later to say he saw the GFE and it included $6,000 of (supposedly free) closing costs rolled into his loan.  His rate in writing on the GFE was now 5.375%. 

Rolling closing costs into the new loan is not uncommon.  Portraying it as “no cost” to the client is misleading.  Unless the bank is paying or the Mortgage Professional is paying, the borrower is going to pay for closing costs over time included in the new loan.  Hint:  Always verify the APR statement or Truth In Lending to check this.  If you don’t know how to evaluate what you’re really paying, ask an experienced Mortgage Professional to explain it.  It’s important.  (As a gesture of good will and thanks for my client’s continued business, my original offer was to cover his closing costs out of the commissions I was being paid from the lender.)   

Quoting someone a 4.375% is also acceptable, so long as it’s explained what it will cost to “purchase” that interest rate with discount points.  At the very minimum, it must be explained that this is a BASE rate.  Each and every change in the “standard” conventional loan process COSTS THE BORROWER in interest rate.  These are called pricing “add on’s” and they can hurt.  Increasing my client’s loan amount, for example as this bank did, raises the loan to value and costs a bump up in interest rate.  His closing date was going to be 60 days away.  That sort of delay also COSTS THE BORROWER in interest rate.

Unfortunately, advertised rates are not the final rate you will get, once all the factors to suit your INDIVIDUAL needs are put into the equation.  You must have a Mortgage Professional who will look at your whole situation and offer you options on what will suit your objectives.

Bottom line is, we weren’t looking at an “apples to apples” offer.  And it didn’t turn out to be what he’d been promised.

Result?  He’s still my client and my offer at 5.25% with $0 closing costs (for real) turned out to be a pretty darn good deal for him.

Having a Mortgage Professional who will give you the most HONEST answers is critical, especially today.  It’s important to know that person is working in your best interest.  Even if it means telling you to take the competitor’s deal when it serves you.  There are so MANY variables in today’s mortgage market, even the most savvy borrower can’t keep up with them. 

In today’s lending environment, staying abreast of underwriting changes is as challenging as keeping up with the tax code.  Even more difficult to be realistic.  Make certain you work with someone who is constantly informed and can educate you.  Uneducated mistakes will cost you not just at the closing table, but for the life of that loan.  Feel free to browse my website at www.LoansByAprille.com to find useful information such as this at your fingertips.  Or contact me directly at (314) 363-3913 or Aprille@LoansByAprille.com to get answers to your questions.

Posted by Art Wagner   |   Read More   |   Your Comments Are Welcome!   |   02.03.2009

St. Louis Real Estate-Market Watch January 31st, 2009

Filed under: St. Louis Market Reports

Saint Louis Real Estate-Market Watch  by Art Wagner @ Keller Williams Realty Southwest, Sunset Hills, Mo.
January 31st, 2009
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 continues to show stable buyer activity.  We see about the same number of homes accepting contracts, while our active listings have declined slightly.  Thus, our pending ratios are up a bit to 11.15 percent average. 

First Time homebuyers take note that the “First Time Homebuyer Credit”,  or more accurately stated as the “First Time HomeBuyer 15 Year Governmet Loan” program expires on June 30th of this year.  Also,  there are still cities and counties where MDHC (Missouri Housing Development Commission)  money is still available.  However, MDHC has changed their program since January 14th.  The old program was a forgivable grant, providing the first time homeowner stayed in the home for a minimum of 5 years. 

The new program was developed because the Federal $7500.00 First Time Home Buyer Tax Credit wasn’t working because the homeowner didn’t actually recieve the money until they filed their tax return and recieved their Federal income tax refund-which could be several months after the home was purchased.  

The new MDHC program creates a second mortgage to cover the amount of your “First Time Homebuyer Tax Credit”, thereby allowing a buyer to take advantage of the tax credit immediately, at closing, instead of having to get their money from friends, family, etc… and then “paying the money back” after they recieve their “tax credit”.  

Once a buyer files their taxes, and recieves their “tax credit”, they would then pay off the MDHC second mortgage and be left with their first mortgage.  If the MDHC mortgage is paid off within the deadline, there is no interest charges to the borrower, just a modest servicing fee.

First Time Homebuyers can contact their mortgage lender for a detailed explanation of how this program works and the requirements to qualify for it.

 REAL ESTATE AGENTS AND FOR SALE BY OWNERS- Are your listings and / or home sitting on the market too long?? 120 days or more??  We have a program designed to get your listing or FSBO home sold.  Real Estate Agents get paid their commission in full.  Contact us for more info.

 WHO DO YOU KNOW NOW that is challenged with their mortgage payments OR needs to sell for less than their home is worth?? WE CAN HELP!! 

Fill out the form below to view the Market Report.

Posted by Art Wagner   |   Read More   |   Your Comments Are Welcome!   |   02.01.2009