Recently I read a question that came at a time in my life that I needed it most. The question was "How old would you be if you didn't know how old you were?" Good Question!! I am always amazed when God throws something at me at a time in my life when I need it most! Anyway at the young age of 44 I decided that I was going to become a runner. I had been dabbling in running for about 6-7 years, but nothing really serious. I decided though that I wanted to become serious. So I did what most, sane, 44 year old women do when they want to become serious runners..........I signed up to run the Chicago Marathon! In order to stay committed to this new goal of mine, I signed up to run with Team in Training. This group is connected with the Leukemia-Lymphoma Society and they train people to participate for several different endurance events, while in return, the athlete raises money for the Society. Raising money and telling every person I know that I am running in a marathon was the kick I needed to keep me going. I did run, and finish, the marathon. I did not set any new records with a time of 4:56, but I did set my own record, and was onto becoming that serious runner.
I have continued to run since completing that Marathon last Oct. I have completed a few 5k races, and last month completed the Lewis and Clark Half-Marathon. For the time being, I have decided that 26.2 miles is not a distance I want to repeat, but it did get me motivated to keep running. Which brings me back to the question of "What age would I be if I did not know how old I was?" While training for the half marathon, I kept thinking that at the age of now 45, I was too old to be doing this. Sure, I know there are lots of people who run that are older than me, but did they really start at the age of 44?? So the thoughts running thru my head kept saying "you should have started 10 years ago, why get serious now, you're too slow, too heavy....etc etc". But the fact of the matter was, and is, that I enjoy running! I enjoy setting a goal and accomplishing it. So what about the age???
Then last week I received an article online about runners. In a nutshell, the article was telling about a 93, YES 93! year old man who just completed a marathon in 5:40. He began running at the age of 81 because he was bored and needed something to do! Another man who completed the same race in 2:56 was the ripe young age of 73!! Then came the question....."What age would you be if you did not know how old you were?" Wham! I felt that like I was hit upside the head! Suddenly it did not matter just how old I am or at what age I decided to set new goals for myself. The important thing is that I decided to do it, and I did it! And I will continue to do it until I cannot do it any longer!
And so can you! What have you been putting off? What would you like to try? It doesn't have to be running, or even athletic in nature. Maybe it's going back to college, starting a new hobby that you always wanted to try. You're not too old! As for me, I've decided that I'm 25! What age would you be??
Submitted by: Colette Brasier, Buyer Specialist for Anne Dunajcik
Thursday, October 4, 2007
Sunday, September 30, 2007
Tell me your St. Joseph story!
OK, just fyi. I'm not Catholic. I'm Lutheran, it's not part of our religion to pray to the saints. We just go straight to the source. But lots of my clients do have quite a thing for St. Joseph and who am I to tell them what to do. It seems that with the tough real estate market, the purchase of St. Joseph statues is up 25% in St. Louis!
Many years ago, a client of mine placed a statue of St. Joseph in their yard and sure enough the house did sell. Afterward, I dug up St. Joseph and kept him to give back to them, but in his place I put a different object. When they went to dig up St. Joseph in his place they found he had materialized into the Incredible Hulk!
Many years ago, a client of mine placed a statue of St. Joseph in their yard and sure enough the house did sell. Afterward, I dug up St. Joseph and kept him to give back to them, but in his place I put a different object. When they went to dig up St. Joseph in his place they found he had materialized into the Incredible Hulk!
I hope that's not sacra religious, but we all did think it was pretty funny. So I thought it would be fun to hear if any of you out there in Blogland, had a St. Joseph story. So send me your stories! I'd love to hear them. anne@stlouishome.com
CNN) -- With home sales falling to five-year lows, homeowners desperate to sell their homes are looking for a little divine intervention.
Retailers report statues of St. Joseph are selling briskly.
Dawn Hoernemann of Minneapolis, Minnesota, had her one-bedroom home on the market for four months. Every weekend there was an open house. But there were no offers. That's until she took her mom's advice and buried a statue of St. Joseph upside down in her front yard.
The next week, she had three offers and her home was sold. "I couldn't believe it. I don't know what it is about it. It worked. It's some sort of a miracle," says Hoernemann.
This "miracle" has it roots in Catholicism. According to the tradition, burying St. Joseph began hundreds of years ago in Europe. St. Teresa of Avila, a nun in the 16th century, buried a medal of the saint and prayed to St. Joseph to help secure land for a convent. The ritual is said to have worked, and so the trend of burying St. Joseph has caught on.
Just ask Phil Cates of Modesto, California. His online retail site, StJosephStatue.com, offers the "Underground Real Estate Agent" home-selling kits. For $9.95, the 4-inch statue comes with a burial bag and a burial instruction booklet. There's even an 8-inch version of the statue for larger homes.
Sales have increased 100 percent in the past two years, according to Cates.
Robert Malhame, who runs Malhame & Co -- a Catholic supply company on Long Island, says sales of the St. Joseph Statue spiked last year. And he expects the trend to last. "We're probably going to sell over 100,000 this year," he says. The biggest demand is coming from the Northeast and the Midwest, he says.
Jan Wheelehan, the store manager at a Catholic retail supply store in St. Louis, Missouri, says the statues have been one of the better sellers, with sales increasing 25 percent this year. "People seem more panicked and there is a hurried-ness to their expression when they come in," she says.
St. Joseph is even on the auction block. There are dozens of St. Joseph home-selling kits on Ebay. From glow in the dark St. Joseph statues to mini pocket shrines, St. Joseph has a whole new following.
Burying St. Joseph statues has its own set of rules, too, although they can vary.
Home sellers are instructed to dig a hole near the "For Sale" sign. The hole should be three inches taller than the statue itself. The saint should then be facing the direction of the street. Then prayers to St. Joseph should be said before the saint is covered with dirt.
Once the house is sold, St. Joseph should be dug up and put in a place of honor in the new home.
Some renters have even cashed in on St. Joseph's divine intervention in hopes of getting a break on rent or to have their application accepted. They buried St. Joseph statues in flowerpots. The statue's feet should either be facing the street or in the direction you want to move, according to Cates.
The whole statue-burying process was a bit hard to swallow for Joe Iannacone. His Dallas, Texas, home was on the market earlier this month. Iannacone first heard about the ritual from his godfather.
"I looked on the Web. It was less than $10. So, I said why not?" recalls Iannacone. Six hours later a young woman walked into the house and made a bid. "I'm not very religious," says Iannacone. "But that was pretty amazing. I was shocked."
St. Joseph may have made a believer out of some sellers, but for some real estate agents, selling a home isn't the work of a higher power.
"What a crock!" says Connecticut real estate agent David D'Ausilio. "As a Realtor I think it's ridiculous. The business has always been simple. If a house is properly priced and properly exposed, it'll attract buyers and it will sell -- St. Joseph or no St. Joseph."
Cates says the statue is more than just superstition. "It's the idea of getting beyond yourself. It's about hoping and praying for something that is bigger than you are," he says.
And these days, maybe just a little hope for home sellers isn't such a bad thing.
CNN) -- With home sales falling to five-year lows, homeowners desperate to sell their homes are looking for a little divine intervention.
Retailers report statues of St. Joseph are selling briskly.
Dawn Hoernemann of Minneapolis, Minnesota, had her one-bedroom home on the market for four months. Every weekend there was an open house. But there were no offers. That's until she took her mom's advice and buried a statue of St. Joseph upside down in her front yard.
The next week, she had three offers and her home was sold. "I couldn't believe it. I don't know what it is about it. It worked. It's some sort of a miracle," says Hoernemann.
This "miracle" has it roots in Catholicism. According to the tradition, burying St. Joseph began hundreds of years ago in Europe. St. Teresa of Avila, a nun in the 16th century, buried a medal of the saint and prayed to St. Joseph to help secure land for a convent. The ritual is said to have worked, and so the trend of burying St. Joseph has caught on.
Just ask Phil Cates of Modesto, California. His online retail site, StJosephStatue.com, offers the "Underground Real Estate Agent" home-selling kits. For $9.95, the 4-inch statue comes with a burial bag and a burial instruction booklet. There's even an 8-inch version of the statue for larger homes.
Sales have increased 100 percent in the past two years, according to Cates.
Robert Malhame, who runs Malhame & Co -- a Catholic supply company on Long Island, says sales of the St. Joseph Statue spiked last year. And he expects the trend to last. "We're probably going to sell over 100,000 this year," he says. The biggest demand is coming from the Northeast and the Midwest, he says.
Jan Wheelehan, the store manager at a Catholic retail supply store in St. Louis, Missouri, says the statues have been one of the better sellers, with sales increasing 25 percent this year. "People seem more panicked and there is a hurried-ness to their expression when they come in," she says.
St. Joseph is even on the auction block. There are dozens of St. Joseph home-selling kits on Ebay. From glow in the dark St. Joseph statues to mini pocket shrines, St. Joseph has a whole new following.
Burying St. Joseph statues has its own set of rules, too, although they can vary.
Home sellers are instructed to dig a hole near the "For Sale" sign. The hole should be three inches taller than the statue itself. The saint should then be facing the direction of the street. Then prayers to St. Joseph should be said before the saint is covered with dirt.
Once the house is sold, St. Joseph should be dug up and put in a place of honor in the new home.
Some renters have even cashed in on St. Joseph's divine intervention in hopes of getting a break on rent or to have their application accepted. They buried St. Joseph statues in flowerpots. The statue's feet should either be facing the street or in the direction you want to move, according to Cates.
The whole statue-burying process was a bit hard to swallow for Joe Iannacone. His Dallas, Texas, home was on the market earlier this month. Iannacone first heard about the ritual from his godfather.
"I looked on the Web. It was less than $10. So, I said why not?" recalls Iannacone. Six hours later a young woman walked into the house and made a bid. "I'm not very religious," says Iannacone. "But that was pretty amazing. I was shocked."
St. Joseph may have made a believer out of some sellers, but for some real estate agents, selling a home isn't the work of a higher power.
"What a crock!" says Connecticut real estate agent David D'Ausilio. "As a Realtor I think it's ridiculous. The business has always been simple. If a house is properly priced and properly exposed, it'll attract buyers and it will sell -- St. Joseph or no St. Joseph."
Cates says the statue is more than just superstition. "It's the idea of getting beyond yourself. It's about hoping and praying for something that is bigger than you are," he says.
And these days, maybe just a little hope for home sellers isn't such a bad thing.
Now for the Good News--Jobs Looking up in St. Louis
A strong economy always helps the real estate market...so it's great news that 4th Quarter job market looks strong in St. Louis!!!
A Manpower Employment Outlook Survey predicts a strong job market for St. Louis during the fourth quarter of 2007.
From October to December, only 3 percent of companies interviewed plan to reduce their payrolls while 28 percent plan to hire more employees. The remaining 69 percent of companies expect to maintain their current staff levels.
St. Louis companies' planned staff reduction levels are far below the Missouri average of 9 percent of companies who expect to reduce their payrolls. Statewide, 30 percent of employers expect to increase the number of employees
A Manpower Employment Outlook Survey predicts a strong job market for St. Louis during the fourth quarter of 2007.
From October to December, only 3 percent of companies interviewed plan to reduce their payrolls while 28 percent plan to hire more employees. The remaining 69 percent of companies expect to maintain their current staff levels.
St. Louis companies' planned staff reduction levels are far below the Missouri average of 9 percent of companies who expect to reduce their payrolls. Statewide, 30 percent of employers expect to increase the number of employees
Tuesday, September 18, 2007
Is St. Louis getting cool again?
Is it me? or is St. Louis getting cool again? For a long time, I wondered where are the cool people in St. Louis? I mean don't get me wrong, I love our stability. I love our midwestern values. I love that the more things change, the more they stay the same in the big things. But I like change. I like fun. I like fun people. And for a long time, I couldn't find the fun people. At least, the big people that can change a city. The big movers and shakers. Our big moves and shakers were, well, dull. The movers and shakers we had we stable...that's good. That's why our housing market isn't as bad as other places. But I felt we were standing in place. I always said if I ran the city...I'd do...but of course, I didn't do anything either.
But now things are changing...improving...getting cooler...or cool again. I mean we were once really cool. Jazz got a lot of cool right from St. Louis. Before Chicago, we were the place to be in the midwest. But we lost it somewhere along the way.
Former Mayor Clarence Harmon, I have to give you a lot of credit. I don't know why or what you did, but after you came into office, city housing sales starting picking up again. Before 1997, the city wasn't selling. But after he came into, office, our buyers were flocking back to the city. The city was cool again. Young people wanted to buy their again. They appreciated the value of the city. They loved the gingerbread, the brick, the charm, the hardwood floors, the parks.
Now I know the schools still stink. Trust me I'm a product of the city schools and it's taken me a long time to learn to say Highway 44 right and I still can't quite get Sophomore pronounced correctly...which is really bad since my daughter is a southmore...I mean 10th grader...
But still the city starting turning after Mayor Harmon took office and Mayor Slay is surging it ahead onward and upward. We have cool nights on the levee...fireworks on Friday nights without it even being the 4th of July. I love that...fireworks just for me without 500,000 of my closest friends. We cool lofts and young and old that want to live downtown...what's that all about? Never 10 years ago. Too risky! Now risk is good again. We have young people and singles parties. WE have great downtown restaurants. We have the very cool St. Louis City Museum.
St. Louis is coming back. Watch out Chicago...Maybe we'll take you on again...unless it's the Cubs year. But come on, the Cubs? winning the whole thing...that would be the miracle my Pastor has been long, long praying for.
But either way, I'm excited to see all the fun stuff happening in and around St. Louis. Cool people, keep it up!
PS Jobs are up...which will definitely boost the local economy (micro economics) which will help the suffering housing market. Stay tuned! Take heart Sellers!
Anne
----------------------------------------------------------------------------
A Manpower Employment Outlook Survey predicts a strong job market for St. Louis during the fourth quarter of 2007.
From October to December, only 3 percent of companies interviewed plan to reduce their payrolls while 28 percent plan to hire more employees. The remaining 69 percent of companies expect to maintain their current staff levels.
St. Louis companies' planned staff reduction levels are far below the Missouri average of 9 percent of companies who expect to reduce their payrolls. Statewide, 30 percent of employers expect to increase the number of employees
For the coming quarter, job prospects appear best in non-durable goods manufacturing, transportation/public utilities, wholesale/retail trade, finance/insurance/real estate, services and public administration. Employers in construction plan to reduce staffing levels, while hiring in education is expected to remain unchanged.
But now things are changing...improving...getting cooler...or cool again. I mean we were once really cool. Jazz got a lot of cool right from St. Louis. Before Chicago, we were the place to be in the midwest. But we lost it somewhere along the way.
Former Mayor Clarence Harmon, I have to give you a lot of credit. I don't know why or what you did, but after you came into office, city housing sales starting picking up again. Before 1997, the city wasn't selling. But after he came into, office, our buyers were flocking back to the city. The city was cool again. Young people wanted to buy their again. They appreciated the value of the city. They loved the gingerbread, the brick, the charm, the hardwood floors, the parks.
Now I know the schools still stink. Trust me I'm a product of the city schools and it's taken me a long time to learn to say Highway 44 right and I still can't quite get Sophomore pronounced correctly...which is really bad since my daughter is a southmore...I mean 10th grader...
But still the city starting turning after Mayor Harmon took office and Mayor Slay is surging it ahead onward and upward. We have cool nights on the levee...fireworks on Friday nights without it even being the 4th of July. I love that...fireworks just for me without 500,000 of my closest friends. We cool lofts and young and old that want to live downtown...what's that all about? Never 10 years ago. Too risky! Now risk is good again. We have young people and singles parties. WE have great downtown restaurants. We have the very cool St. Louis City Museum.
St. Louis is coming back. Watch out Chicago...Maybe we'll take you on again...unless it's the Cubs year. But come on, the Cubs? winning the whole thing...that would be the miracle my Pastor has been long, long praying for.
But either way, I'm excited to see all the fun stuff happening in and around St. Louis. Cool people, keep it up!
PS Jobs are up...which will definitely boost the local economy (micro economics) which will help the suffering housing market. Stay tuned! Take heart Sellers!
Anne
----------------------------------------------------------------------------
A Manpower Employment Outlook Survey predicts a strong job market for St. Louis during the fourth quarter of 2007.
From October to December, only 3 percent of companies interviewed plan to reduce their payrolls while 28 percent plan to hire more employees. The remaining 69 percent of companies expect to maintain their current staff levels.
St. Louis companies' planned staff reduction levels are far below the Missouri average of 9 percent of companies who expect to reduce their payrolls. Statewide, 30 percent of employers expect to increase the number of employees
For the coming quarter, job prospects appear best in non-durable goods manufacturing, transportation/public utilities, wholesale/retail trade, finance/insurance/real estate, services and public administration. Employers in construction plan to reduce staffing levels, while hiring in education is expected to remain unchanged.
Monday, September 10, 2007
When the market gets tough, the tough start remodeling? Count me in!
This article below says lots of us baby boomers are staying put rather than sell in this tougher market and personally I have to say that's true for me and my hubby...I'd move...I'm a realtor...I love moving even thought I haven't in 17 years, but that's because we still hadn't finished our lower level.
But where's there's a space to finish, it just cried out to my husband to finish it...so off we went...adding a family room with stone fireplace and a media room and another full bath. And all this at a time, when 2 of my kids are off to college and the baby is 15...yeah, we really needed more space now?!?
Of course, the media room was first designed for me as an exercise room, but then when we all thought about it...
Let's see, exercise in that big ole room a mere a hour a day 3 times a week at the most and the poor thing just sits there not be fully utilized vs. cathcing up on all those movies we've never had the time to watch, watching the Cardinals in living color, watching the Rams, having the SuperBowl party...gosh is was a no brainer...gee...sitting on the couch somehow won out...
I logically justified it though because I still have my exercise equipment in the smaller space where I exercised before...so I'll still exercise...right? and then I'll have somewhere really cozy to flop down when I cooling down!
Well anyway, if you are remodeling rather than moving like us put in spaces that are great for resale like an extra family room, an office, a media room, an extra bedroom and for sure an extra bath...no house can have too many baths.
Of course, how did we grow up without 1 bath per person? My kids just don't get it. My husband was one of 10 kids...that's right 10 kids and they aren't even Catholic...but thanks for asking.
He grew up in a 2 bdrm home with 1 bath and then that wonderful open air toilet in the basement and the shower..you know right by the pipes with the curtain around it onto the concrete floor...but they made it. And they also walked 10 miles in the snow to school...ok they really didn't do that.
But when I first met my husband at 17...and crossed the threshold into his house...the first thing I saw in the tiny entry hall was a bed. That was different. And after that, more beds. The Dining Room...beds...
But my favorite bedroom was my husband's. Well it wasn't exactly a bedroom. His little corner of the world consisted of a cot in front of the big old silver boiler in the basement. Maybe that's why he is such a great guy, he knows enough to be grateful for all we do have now.
So when we all talk about the market being bad...just remember if you have a roof over your head, you're going to be just fine.
And when the going gets tough...the tough remodel. So fellow baby boomers...if you want to sell, I'm your girl to list and sell your house
...but if you want to remodel...invite me over for a movie and I'll bring the popcorn!
---------------------------------------------------------------------------------------------
With the housing bubble popped, credit tighter and baby boomers getting up in years, home remodelers find themselves with more than enough work to keep busy."When people aren't able to move, they start remodeling," said John Shea, of Callier Thompson Shea Construction & Design in Manchester.Shea ticked off a list of reasons that he's seeing the local remodeling business doing quite well, despite the slump in sales of new houses.There are fewer places for new houses short of the outer suburbs such as Wentzville, he said, which means more homeowners are choosing to live closer to work and shopping centers. And more residents, especially those empty-nesters with kids who have finished college, are deciding to stay right where they are.
Inner-ring suburbs like Maplewood, Richmond Heights, Clayton and University City have many older houses, some dating back nearly a century, that are ripe for remodeling, said Shea, KTRS radio's Mr. Fix It.Moreover, those cities are doing a better job of holding onto their residents by providing better services. Even MetroLink, in Shea's mind, gets credit for helping residents to decide to stay where they are.This trend, sometimes called "aging in place" in the home-remodeling business, means more homeowners, especially those in their 60s and late 50s, are starting to change the interior of their houses so they can get around more easily, with fewer steps to climb and wider doors to accommodate wheelchairs."They're opening up their kitchens and making them into family rooms for entertaining," Shea said. "They're putting in main-level master suites" so they don't have to climb stairs if they become ill.
Scott Mosby of Mosby Building Arts Ltd. in Kirkwood concurred that aging baby boomers are driving the remodeling boom in the St. Louis area. They may be empty-nesters, but they don't want to leave the nest where they have reared a family and may have sentimental attachments. "My take on it is that baby boomers are facing their situation, whether it's adding a family room for holidays like Christmas and Thanksgiving or just taking care of the house and doing it right," said Mosby, who is the host of a show on KMOX about remodeling. One company that's benefiting from homeowners' reluctance to move to smaller digs is Bill Hurston's residential and commercial painting company, a franchise of CertaPro Painters, a national company in Oaks, Pa., that plans to open several more operations in the St. Louis area.Greg Meyer, Hurston's general manager, said 90 percent of the company's work is residential, and most of that work is in older houses in high-income cities like Frontenac, Town and Country, Ladue and Clayton. Most of Hurston's clients are dressing up their houses, not for sale but to make them more enjoyable in their twilight years. Customers may take care to choose the exact paint color they want, and they expect the work to be finished well, Meyer said.He even makes a point of learning all the specific demands of the customers, so he can instruct his two- and four-person crews."If the homeowner tells me not to let a rose bush be damaged, I keep that on file and make sure the crew knows," Meyer said.
But where's there's a space to finish, it just cried out to my husband to finish it...so off we went...adding a family room with stone fireplace and a media room and another full bath. And all this at a time, when 2 of my kids are off to college and the baby is 15...yeah, we really needed more space now?!?
Of course, the media room was first designed for me as an exercise room, but then when we all thought about it...
Let's see, exercise in that big ole room a mere a hour a day 3 times a week at the most and the poor thing just sits there not be fully utilized vs. cathcing up on all those movies we've never had the time to watch, watching the Cardinals in living color, watching the Rams, having the SuperBowl party...gosh is was a no brainer...gee...sitting on the couch somehow won out...
I logically justified it though because I still have my exercise equipment in the smaller space where I exercised before...so I'll still exercise...right? and then I'll have somewhere really cozy to flop down when I cooling down!
Well anyway, if you are remodeling rather than moving like us put in spaces that are great for resale like an extra family room, an office, a media room, an extra bedroom and for sure an extra bath...no house can have too many baths.
Of course, how did we grow up without 1 bath per person? My kids just don't get it. My husband was one of 10 kids...that's right 10 kids and they aren't even Catholic...but thanks for asking.
He grew up in a 2 bdrm home with 1 bath and then that wonderful open air toilet in the basement and the shower..you know right by the pipes with the curtain around it onto the concrete floor...but they made it. And they also walked 10 miles in the snow to school...ok they really didn't do that.
But when I first met my husband at 17...and crossed the threshold into his house...the first thing I saw in the tiny entry hall was a bed. That was different. And after that, more beds. The Dining Room...beds...
But my favorite bedroom was my husband's. Well it wasn't exactly a bedroom. His little corner of the world consisted of a cot in front of the big old silver boiler in the basement. Maybe that's why he is such a great guy, he knows enough to be grateful for all we do have now.
So when we all talk about the market being bad...just remember if you have a roof over your head, you're going to be just fine.
And when the going gets tough...the tough remodel. So fellow baby boomers...if you want to sell, I'm your girl to list and sell your house
...but if you want to remodel...invite me over for a movie and I'll bring the popcorn!
---------------------------------------------------------------------------------------------
With the housing bubble popped, credit tighter and baby boomers getting up in years, home remodelers find themselves with more than enough work to keep busy."When people aren't able to move, they start remodeling," said John Shea, of Callier Thompson Shea Construction & Design in Manchester.Shea ticked off a list of reasons that he's seeing the local remodeling business doing quite well, despite the slump in sales of new houses.There are fewer places for new houses short of the outer suburbs such as Wentzville, he said, which means more homeowners are choosing to live closer to work and shopping centers. And more residents, especially those empty-nesters with kids who have finished college, are deciding to stay right where they are.
Inner-ring suburbs like Maplewood, Richmond Heights, Clayton and University City have many older houses, some dating back nearly a century, that are ripe for remodeling, said Shea, KTRS radio's Mr. Fix It.Moreover, those cities are doing a better job of holding onto their residents by providing better services. Even MetroLink, in Shea's mind, gets credit for helping residents to decide to stay where they are.This trend, sometimes called "aging in place" in the home-remodeling business, means more homeowners, especially those in their 60s and late 50s, are starting to change the interior of their houses so they can get around more easily, with fewer steps to climb and wider doors to accommodate wheelchairs."They're opening up their kitchens and making them into family rooms for entertaining," Shea said. "They're putting in main-level master suites" so they don't have to climb stairs if they become ill.
Scott Mosby of Mosby Building Arts Ltd. in Kirkwood concurred that aging baby boomers are driving the remodeling boom in the St. Louis area. They may be empty-nesters, but they don't want to leave the nest where they have reared a family and may have sentimental attachments. "My take on it is that baby boomers are facing their situation, whether it's adding a family room for holidays like Christmas and Thanksgiving or just taking care of the house and doing it right," said Mosby, who is the host of a show on KMOX about remodeling. One company that's benefiting from homeowners' reluctance to move to smaller digs is Bill Hurston's residential and commercial painting company, a franchise of CertaPro Painters, a national company in Oaks, Pa., that plans to open several more operations in the St. Louis area.Greg Meyer, Hurston's general manager, said 90 percent of the company's work is residential, and most of that work is in older houses in high-income cities like Frontenac, Town and Country, Ladue and Clayton. Most of Hurston's clients are dressing up their houses, not for sale but to make them more enjoyable in their twilight years. Customers may take care to choose the exact paint color they want, and they expect the work to be finished well, Meyer said.He even makes a point of learning all the specific demands of the customers, so he can instruct his two- and four-person crews."If the homeowner tells me not to let a rose bush be damaged, I keep that on file and make sure the crew knows," Meyer said.
Sellers...you have to price it right..that typically means less than you think!!!
Sellers: I know, I know, I know...Your house should be selling for more...but if it's not selling...It is the PRICE! Price is where the market wants it to be and you'll be one of the lucky ones that gets that contract! Price it to sell! There is just so many choices out there for the buyer, so you have to be in the top 3 of showing condition and priced in the top 3 of value to get the buyer to choose yours...so Price it to sell! See below:
TOP STORY: Clients need the hard facts about the mortgage market
The current upheaval in the market has given rise to significant opportunities to help your clients make informed decisions. Tom Sherman, President of Mortgage Services Unlimited in Dallas, emphasizes the importance of educating clients.
For your sellers, the following points are key:
Home values will stay stagnant or potentially decrease.
Qualified borrowers are looking for deals.
Fewer borrowers are qualifying for home loans.
Rising foreclosures tend to negatively affect home values.
Increased “days on the market” (DOMs) increases the likelihood that buyers will aggressively negotiate prices down.
Continued stress in the financial markets will affect consumer confidence.
Loans may take longer to close.
Appraisals are becoming more difficult to obtain.
Properties should be funded before contract contingencies are removed.
It’s critical to encourage sellers to price homes to sell -- and sell quickly -- decreasing the need for price reductions.
TOP STORY: Clients need the hard facts about the mortgage market
The current upheaval in the market has given rise to significant opportunities to help your clients make informed decisions. Tom Sherman, President of Mortgage Services Unlimited in Dallas, emphasizes the importance of educating clients.
For your sellers, the following points are key:
Home values will stay stagnant or potentially decrease.
Qualified borrowers are looking for deals.
Fewer borrowers are qualifying for home loans.
Rising foreclosures tend to negatively affect home values.
Increased “days on the market” (DOMs) increases the likelihood that buyers will aggressively negotiate prices down.
Continued stress in the financial markets will affect consumer confidence.
Loans may take longer to close.
Appraisals are becoming more difficult to obtain.
Properties should be funded before contract contingencies are removed.
It’s critical to encourage sellers to price homes to sell -- and sell quickly -- decreasing the need for price reductions.
Friday, September 7, 2007
Buyers, What are You Waiting For?
With all the dismal news in the Media these days about falling home sales and Mortgage Companies going out of business, one would get the impression that now is not a good time to purchase a home. Don't always believe what you hear! Lawrence Yun, Vice President of Research for the National Association of Realtors predicts that existing home sales will improve markedly during this 4th quarter. He bases his prediction on the following reasons:
Pent up Demand: The job market has seen an increase in nearly 4 million jobs since the housing market started it's cool down in 2005 and typical wages have risen 7%. At the same time wealth has grown with the Dow Jones average hovering at record highs. So people have the means to buy!
Delayed household formation: Typically the number of households grow by 1.5 million a year. But in the 1st quarter of this year, the figure was only half a million. This suggests that people are holding back due to the uncertainty over the future and that fuels pent-up demand.
Rising Rents: With renters hesitating to buy, Landlords are raising rents(go figure!) Average rents rose 8% in the last 2 years. Renters are beginning to feel that squeeze, and ownership is looking increasingly good!
Better Mortgage Quality: Mortgage applications for home purchases have been rising nearly 10% on a year-over-year basis since May( Data from Mortgage Bankers Association). This focuses mainly on applicants for Prime and FHA loans which indicates people are looking for higher quality Loans.
2008 Rate Cut: Inflation looks to slide as the year proceeds. If it does the Federal Reserves could lower interest rates as soon as early 2008. Current Rates as of 9/6/07 for a 30 yr fixed convention loan with 5% down is 6.5%, This is already an improvement over Aug rates.
Listings Outlook Up: While practitioners expect buyer traffic to be flat in the months ahead, they expect plenty of sellers to jump into the market(practitioners were surveyed in July and looked ahead 6 months)
SO.... what does all this really mean to you, the buyer? To put it into simple terms, NOW is the time to buy! The supply of homes is expected to increase while the buyer pool remains low. Typically this means the ability to purchase a home at a lower price. While it does not mean you will be able to "steal a home", it does mean that Listing Agents are advising their Sellers to price their homes according to the slower market. The benefit for you the buyer, is when you purchase in a slower market, the competition is less so you are not paying Top Dollar. However, as the market improves, that home should appreciate at a higher rate.
Buyers who make the commitment to buy now could be smiling next year!
Think about that statement for a minute. If the housing market is slower now, the buyers are fewer, and Sellers are pricing accordingly, it only makes sense to buy now.
Now, think about next year, if the prediction holds true that the market will improve, the number of buyers will be higher, the demand greater, which leads to sellers pricing higher.....
You get the idea! With Interest rates holding steady, even dropping slightly, greater supply of homes, less demand..............What are You Waiting For?
Happy House Hunting!
Pent up Demand: The job market has seen an increase in nearly 4 million jobs since the housing market started it's cool down in 2005 and typical wages have risen 7%. At the same time wealth has grown with the Dow Jones average hovering at record highs. So people have the means to buy!
Delayed household formation: Typically the number of households grow by 1.5 million a year. But in the 1st quarter of this year, the figure was only half a million. This suggests that people are holding back due to the uncertainty over the future and that fuels pent-up demand.
Rising Rents: With renters hesitating to buy, Landlords are raising rents(go figure!) Average rents rose 8% in the last 2 years. Renters are beginning to feel that squeeze, and ownership is looking increasingly good!
Better Mortgage Quality: Mortgage applications for home purchases have been rising nearly 10% on a year-over-year basis since May( Data from Mortgage Bankers Association). This focuses mainly on applicants for Prime and FHA loans which indicates people are looking for higher quality Loans.
2008 Rate Cut: Inflation looks to slide as the year proceeds. If it does the Federal Reserves could lower interest rates as soon as early 2008. Current Rates as of 9/6/07 for a 30 yr fixed convention loan with 5% down is 6.5%, This is already an improvement over Aug rates.
Listings Outlook Up: While practitioners expect buyer traffic to be flat in the months ahead, they expect plenty of sellers to jump into the market(practitioners were surveyed in July and looked ahead 6 months)
SO.... what does all this really mean to you, the buyer? To put it into simple terms, NOW is the time to buy! The supply of homes is expected to increase while the buyer pool remains low. Typically this means the ability to purchase a home at a lower price. While it does not mean you will be able to "steal a home", it does mean that Listing Agents are advising their Sellers to price their homes according to the slower market. The benefit for you the buyer, is when you purchase in a slower market, the competition is less so you are not paying Top Dollar. However, as the market improves, that home should appreciate at a higher rate.
Buyers who make the commitment to buy now could be smiling next year!
Think about that statement for a minute. If the housing market is slower now, the buyers are fewer, and Sellers are pricing accordingly, it only makes sense to buy now.
Now, think about next year, if the prediction holds true that the market will improve, the number of buyers will be higher, the demand greater, which leads to sellers pricing higher.....
You get the idea! With Interest rates holding steady, even dropping slightly, greater supply of homes, less demand..............What are You Waiting For?
Happy House Hunting!
Wednesday, August 29, 2007
What's the State of the St. Louis Real Estate Market....I know!
STATE OF THE MARKET
SEPTEMBER 1, 2007
ENTIRE ST. LOUIS MARKETPLACE
No offense, National Media. I know the bad housing market makes a great story, but hey St. Louisians, what you need to know about Real Estate is that ALL REAL ESTATE IS LOCAL.
What does that mean? It means you need to know about the real market in your area, not nationally. How is St. Louis doing? More importantly, how are the areas where you live specifically doing? Then you'll know if it's a bad market or a good market or a so-so market.
Either way, the market is the market. No matter how it is, if you have to buy or sell, this is the market you are dealing with. So you need to be educated so you can make intelligent decisions to win at this market whether you are a buyer or a seller.
So here we go. First of all, this report is about the entire St. Louis area from the arch to far north, far south and far west...here's how St. Louis looks.The bad news (that's what you've been hearing) is that overall, the number of home sales is down by about 13%. In 2006, 21,312 homes were sold in St. Louis. In 2007, thus far that number is 18,698. So we realtors are selling less houses...bummer for us. But more sellers are either electing to stay out of the market, or perhaps their homes aren't selling (hmmm, thjat would be another interest idea...how many houses aren't selling in the 2007 marketplace...I'll blog on that another day) but I digress.
The other bad news, days on market are up 16%. In 2006 it took approximately 70 days on average for a house to sell in St. Louis, which by the way, is still a pretty good number...only 2.3 months to sell your home. Now in 2007, it's up 16% which sounds bad, but in reality...it's only another 11 days...which is still under 3 months! So be patient...your house will sell, just not as fast as in the good ole days This is not a microwave housing market...pop it on the market, it's done. This is a slow roaster marketplace. It will sell in due time and I'll tell you how in a minute.
Now, finally the good news!!! Guess what...you never hear this anywhere but the average sales prices are actually UP overall....by 4%! That's great news for St. Louis. Maybe that's why Forbes said we are in the top 5 of all Seller's markets in the nation. Specifically, they said St. Louis was #5. Now, personally as a Realtor working this market day in and day out I don't buy that. This is not a Seller’s Market, it’s clearly a Buyer’s Market. Or if we are one of the best markets in the nation, then it is really bad out there. Because, if you're a seller, this still feels like a pretty stinky market to you and I feel your pain. This is no fun for anyone.
Ok, back to the good news. So prices are up...isn't that the bottom line that you Sellers really care about anyway? Prices on average in St. Louis were $190,873 in 2006 and now in 2007 they are averaging $198,644...so that's a 4% increase over 2006. Mind you 2006 was a pretty hard year too, but forget about 2005. Forget about the sales prices in good old days, forget about what your neighbor got for his house in 2005...those days are gone. Long gone! Accept it sellers! Denial doesn't help you and prolongs your pain in getting that all important contract on your home.
Ok, so you are a seller. How do you become one of the lucky ones who gets the contract? How do you get part of that small bit of price appreciation over the 2006 marketplace? Well, drum roll please....here it is:The old adage is price, condition and location. Well, location is a fixed component. Whatever location you have, you have. That's what you have to deal with. So that leaves price and condition. Those are your factors to bring you success. And you the Seller have control over both of those things. So if your house isn’t selling, stop complaining about your realtor or the market and take a look in the mirror…or at your house and your price.
Have you priced it competitively? Does it show the best in the marketplace? If not, that’s why you are not selling. The ones that do those 2 things, they ARE selling! In this tough market, the houses that show the best and are priced the best---win. It’s as simple as that. It’s still Real Estate 101.
If you choose a price that is higher than the market, you'll lose. When you look at your price band compared to others houses you are competing against, you need to be priced in the lowest 30% of that overall price band to get a contract. Plus your condition has to be in the best 30% of all the houses you are competing against. If you are in the lowest 30% on pricing and the top 30% on condition then you are IN the market and you'll sell. If you are in the highest 70% of pricing and the lowest 70% of conditon, then your ON the market and you won't sell till you change one or both of those factors.
There is a big distinction. You want to be in the market, not on the market. On the market homes are sitting there not selling. They don't show well, they have old wallpaper, old kitchens and baths, they haven't been updated in last 10 years, they have the old carpet, maybe there is a tell-tale pet smell, or just a tired appearance. Buyers aren't jumping off their couches (where they are pretty happy to be right now) to get a tired and average house. That doesn't inspire them. That doesn't emotionally make them fall in love with that house and right now we need them inspired.
So stage your house. Clean it up. Declutter it. Freshen it up. Paint it up. Pull down wallpaper. Add some new landscaping and mulch. If you are not willing to do what it takes to improve the condition, then you better price it as a wholesale house on sale at a great discounted value because that’s how the market see it, not with a retail price. Retail prices are for houses that show great!
If you are a Seller whose house shows great, great! You are halfway to sold. Now all you have to do is price it to sell. Next trap, if you say my house shows so much better than everyone else's then I'll just jack the price up to the max, then you're going to lose too. Remember house sales are down, that means less buyers. Less buyers with more housing inventory means those buyers have lots of choices and they want a good value.
Price Matters. If you are the most expensive property in your price band, unless they totally love you, they'll keep shopping. And Buyers as I’ve said have lots of choices...lots & lots of choices. If they feel you are overpriced, they won't make an offer. They will move on, looking for the best value and you may not get them back. You get one shot in this market. Make it compelling!So price it right. Price it to be in the market, rather than on the market.
If you are an unmotivated seller and you don’t have to sell, then do whatever you want. It’s your house and your time, except that it can also waste everyone else's time frustrating buyers, other realtors and your realtor who is working hard to get your home sold with an overpriced listing. Realtors can't make the market pay what you want.
So here's the key to winning the game of real estate right now. Price it right and make it show the best in class!. Your house needs to be one of the Top 3 that shows the best in your competition and it needs to be priced as one of the best values to get that all important contract. Good luck. And if you need a Realtor, call me!
If you would like to know specifics on how the market looks in your city or town, e-mail The Anne Dunajcik Group at info@stlouishome.com and we'll do the research and get back to you and post it on our web site and blog too. Just remember ALL REAL ESTATE IS LOCAL!
Anne :-=)
SEPTEMBER 1, 2007
ENTIRE ST. LOUIS MARKETPLACE
No offense, National Media. I know the bad housing market makes a great story, but hey St. Louisians, what you need to know about Real Estate is that ALL REAL ESTATE IS LOCAL.
What does that mean? It means you need to know about the real market in your area, not nationally. How is St. Louis doing? More importantly, how are the areas where you live specifically doing? Then you'll know if it's a bad market or a good market or a so-so market.
Either way, the market is the market. No matter how it is, if you have to buy or sell, this is the market you are dealing with. So you need to be educated so you can make intelligent decisions to win at this market whether you are a buyer or a seller.
So here we go. First of all, this report is about the entire St. Louis area from the arch to far north, far south and far west...here's how St. Louis looks.The bad news (that's what you've been hearing) is that overall, the number of home sales is down by about 13%. In 2006, 21,312 homes were sold in St. Louis. In 2007, thus far that number is 18,698. So we realtors are selling less houses...bummer for us. But more sellers are either electing to stay out of the market, or perhaps their homes aren't selling (hmmm, thjat would be another interest idea...how many houses aren't selling in the 2007 marketplace...I'll blog on that another day) but I digress.
The other bad news, days on market are up 16%. In 2006 it took approximately 70 days on average for a house to sell in St. Louis, which by the way, is still a pretty good number...only 2.3 months to sell your home. Now in 2007, it's up 16% which sounds bad, but in reality...it's only another 11 days...which is still under 3 months! So be patient...your house will sell, just not as fast as in the good ole days This is not a microwave housing market...pop it on the market, it's done. This is a slow roaster marketplace. It will sell in due time and I'll tell you how in a minute.
Now, finally the good news!!! Guess what...you never hear this anywhere but the average sales prices are actually UP overall....by 4%! That's great news for St. Louis. Maybe that's why Forbes said we are in the top 5 of all Seller's markets in the nation. Specifically, they said St. Louis was #5. Now, personally as a Realtor working this market day in and day out I don't buy that. This is not a Seller’s Market, it’s clearly a Buyer’s Market. Or if we are one of the best markets in the nation, then it is really bad out there. Because, if you're a seller, this still feels like a pretty stinky market to you and I feel your pain. This is no fun for anyone.
Ok, back to the good news. So prices are up...isn't that the bottom line that you Sellers really care about anyway? Prices on average in St. Louis were $190,873 in 2006 and now in 2007 they are averaging $198,644...so that's a 4% increase over 2006. Mind you 2006 was a pretty hard year too, but forget about 2005. Forget about the sales prices in good old days, forget about what your neighbor got for his house in 2005...those days are gone. Long gone! Accept it sellers! Denial doesn't help you and prolongs your pain in getting that all important contract on your home.
Ok, so you are a seller. How do you become one of the lucky ones who gets the contract? How do you get part of that small bit of price appreciation over the 2006 marketplace? Well, drum roll please....here it is:The old adage is price, condition and location. Well, location is a fixed component. Whatever location you have, you have. That's what you have to deal with. So that leaves price and condition. Those are your factors to bring you success. And you the Seller have control over both of those things. So if your house isn’t selling, stop complaining about your realtor or the market and take a look in the mirror…or at your house and your price.
Have you priced it competitively? Does it show the best in the marketplace? If not, that’s why you are not selling. The ones that do those 2 things, they ARE selling! In this tough market, the houses that show the best and are priced the best---win. It’s as simple as that. It’s still Real Estate 101.
If you choose a price that is higher than the market, you'll lose. When you look at your price band compared to others houses you are competing against, you need to be priced in the lowest 30% of that overall price band to get a contract. Plus your condition has to be in the best 30% of all the houses you are competing against. If you are in the lowest 30% on pricing and the top 30% on condition then you are IN the market and you'll sell. If you are in the highest 70% of pricing and the lowest 70% of conditon, then your ON the market and you won't sell till you change one or both of those factors.
There is a big distinction. You want to be in the market, not on the market. On the market homes are sitting there not selling. They don't show well, they have old wallpaper, old kitchens and baths, they haven't been updated in last 10 years, they have the old carpet, maybe there is a tell-tale pet smell, or just a tired appearance. Buyers aren't jumping off their couches (where they are pretty happy to be right now) to get a tired and average house. That doesn't inspire them. That doesn't emotionally make them fall in love with that house and right now we need them inspired.
So stage your house. Clean it up. Declutter it. Freshen it up. Paint it up. Pull down wallpaper. Add some new landscaping and mulch. If you are not willing to do what it takes to improve the condition, then you better price it as a wholesale house on sale at a great discounted value because that’s how the market see it, not with a retail price. Retail prices are for houses that show great!
If you are a Seller whose house shows great, great! You are halfway to sold. Now all you have to do is price it to sell. Next trap, if you say my house shows so much better than everyone else's then I'll just jack the price up to the max, then you're going to lose too. Remember house sales are down, that means less buyers. Less buyers with more housing inventory means those buyers have lots of choices and they want a good value.
Price Matters. If you are the most expensive property in your price band, unless they totally love you, they'll keep shopping. And Buyers as I’ve said have lots of choices...lots & lots of choices. If they feel you are overpriced, they won't make an offer. They will move on, looking for the best value and you may not get them back. You get one shot in this market. Make it compelling!So price it right. Price it to be in the market, rather than on the market.
If you are an unmotivated seller and you don’t have to sell, then do whatever you want. It’s your house and your time, except that it can also waste everyone else's time frustrating buyers, other realtors and your realtor who is working hard to get your home sold with an overpriced listing. Realtors can't make the market pay what you want.
So here's the key to winning the game of real estate right now. Price it right and make it show the best in class!. Your house needs to be one of the Top 3 that shows the best in your competition and it needs to be priced as one of the best values to get that all important contract. Good luck. And if you need a Realtor, call me!
If you would like to know specifics on how the market looks in your city or town, e-mail The Anne Dunajcik Group at info@stlouishome.com and we'll do the research and get back to you and post it on our web site and blog too. Just remember ALL REAL ESTATE IS LOCAL!
Anne :-=)
Friday, August 24, 2007
Pricing in the Midwest down 2.2%
Ok, the bad news is that the Midwest...that's us in St. Louis too...home sales dropped 8.4%...that's why there is so much inventory and that's why it's taking so much longer for homes to sell...the other factor that is bad is that prices have dropped 2.2% in the midwest...so that's not good...
however, if you take the long-term view of home pricing like you do your stocks...overall you are still way up what you paid for your house (unless you bought it just a few years ago). Homes in our area have been appreciating and appreciating, so most of you still should not have to bring money to the closing table and things are picking up. Houses are still selling, it just takes a while. So cheer up, it's getting better sellers. We'll get there. It might still take a little bit longer due to the recent lender issues, but we'll get there. St. Louis is a relatively stable market and that's a great thing. Because we didn't have the crazy upswings of a California or a Florida, we also haven't experienced the crazy downswings. Slow and steady...that's St. Louis.
Tomorrow, I'll do a specific analysis on pricing in the St. Louis area and we'll take a look at the facts!
Anne :-)
Second-Quarter Metro Homes Prices Improving But Sales Down in Most States
WASHINGTON, August 15, 2007 -
Home price trends are improving in metropolitan areas but existing-home sales during the second quarter were below a year ago in most states, according to the latest quarterly survey by the National Association of Realtors.
In the second quarter, 97 out of 149 metropolitan statistical areas 1 show year-over-year increases in median existing single-family home prices, including nine areas with double-digit annual gains; 50 had price declines; and two were unchanged. In the first quarter of 2007, revised data shows 83 areas had annual price increases, while in the fourth quarter of 2006 only 68 areas were up.
Lawrence Yun, NAR senior economist, said the price trends are encouraging. “Although home prices are relatively flat, more metro areas are showing price gains with general improvement since bottoming-out in the fourth quarter of 2006,” he said. “Recent mortgage disruptions will hold back sales temporarily, but the fundamental momentum clearly suggests stabilizing price trends in many local markets.”
Total state existing-home sales, including single-family and condo, were at a seasonally adjusted annual rate2 of 5.91 million units in the second quarter, down 10.8 percent from a 6.63 million-unit pace in the second quarter of 2006. Six states showed increases in the sales pace from a year ago; one was unchanged and complete data for two states were not available.
The national median existing single-family home price was $223,800 in the second quarter, down 1.5 percent from the second quarter of 2006 when the median price was $227,100. The median is a typical market price where half of the homes sold for more and half sold for less, but there has been a downward skew in the national comparison because sales have declined in many high-cost areas and risen in some lower cost markets.
“Since all real estate is local, this report on metro area home prices is more meaningful than our monthly data on national prices because metro areas are less subject to price distortion that can result from geographic changes in the composition of sales,” Yun said.
NAR President Pat V. Combs, from Grand Rapids, Mich., and vice president of Coldwell Banker-AJS-Schmidt, explained how homes are holding their value. “Unlike stocks, where significant equity can vaporize overnight, there is little volatility in home prices, and most homeowners are experiencing very healthy long-term gains,” she said.
“The costs of construction trends up from one year to the next, so even in areas that experience price declines, owners who maintain their property generally retain most of the equity that has built-up in their homes over time.”
A separate NAR survey shows the typical owner stays in a home for six years. “While local conditions vary greatly, a typical owner who bought six years ago is seeing a 45 percent increase in the value of their home. Even so, it isn’t valid to directly compare homeownership with stocks. Although a home is normally a long-term appreciating asset, it is primarily shelter – most owners sell when their needs change, not when the market turns,” Combs said.
An analysis of all available data over the past six years shows almost every market experienced price gains from the second quarter of 2001 to the second quarter of this year.
According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage was 6.37 percent in the second quarter, up from 6.22 percent in the first quarter; the rate was 6.60 percent in the second quarter of 2006.
In the Midwest, total existing-home sales dropped 8.4 percent to a 1.39 million-unit annual level in the second quarter compared with a year ago. The median existing single-family home price in the Midwest was $163,500, down 2.2 percent from the second quarter of 2006.
however, if you take the long-term view of home pricing like you do your stocks...overall you are still way up what you paid for your house (unless you bought it just a few years ago). Homes in our area have been appreciating and appreciating, so most of you still should not have to bring money to the closing table and things are picking up. Houses are still selling, it just takes a while. So cheer up, it's getting better sellers. We'll get there. It might still take a little bit longer due to the recent lender issues, but we'll get there. St. Louis is a relatively stable market and that's a great thing. Because we didn't have the crazy upswings of a California or a Florida, we also haven't experienced the crazy downswings. Slow and steady...that's St. Louis.
Tomorrow, I'll do a specific analysis on pricing in the St. Louis area and we'll take a look at the facts!
Anne :-)
Second-Quarter Metro Homes Prices Improving But Sales Down in Most States
WASHINGTON, August 15, 2007 -
Home price trends are improving in metropolitan areas but existing-home sales during the second quarter were below a year ago in most states, according to the latest quarterly survey by the National Association of Realtors.
In the second quarter, 97 out of 149 metropolitan statistical areas 1 show year-over-year increases in median existing single-family home prices, including nine areas with double-digit annual gains; 50 had price declines; and two were unchanged. In the first quarter of 2007, revised data shows 83 areas had annual price increases, while in the fourth quarter of 2006 only 68 areas were up.
Lawrence Yun, NAR senior economist, said the price trends are encouraging. “Although home prices are relatively flat, more metro areas are showing price gains with general improvement since bottoming-out in the fourth quarter of 2006,” he said. “Recent mortgage disruptions will hold back sales temporarily, but the fundamental momentum clearly suggests stabilizing price trends in many local markets.”
Total state existing-home sales, including single-family and condo, were at a seasonally adjusted annual rate2 of 5.91 million units in the second quarter, down 10.8 percent from a 6.63 million-unit pace in the second quarter of 2006. Six states showed increases in the sales pace from a year ago; one was unchanged and complete data for two states were not available.
The national median existing single-family home price was $223,800 in the second quarter, down 1.5 percent from the second quarter of 2006 when the median price was $227,100. The median is a typical market price where half of the homes sold for more and half sold for less, but there has been a downward skew in the national comparison because sales have declined in many high-cost areas and risen in some lower cost markets.
“Since all real estate is local, this report on metro area home prices is more meaningful than our monthly data on national prices because metro areas are less subject to price distortion that can result from geographic changes in the composition of sales,” Yun said.
NAR President Pat V. Combs, from Grand Rapids, Mich., and vice president of Coldwell Banker-AJS-Schmidt, explained how homes are holding their value. “Unlike stocks, where significant equity can vaporize overnight, there is little volatility in home prices, and most homeowners are experiencing very healthy long-term gains,” she said.
“The costs of construction trends up from one year to the next, so even in areas that experience price declines, owners who maintain their property generally retain most of the equity that has built-up in their homes over time.”
A separate NAR survey shows the typical owner stays in a home for six years. “While local conditions vary greatly, a typical owner who bought six years ago is seeing a 45 percent increase in the value of their home. Even so, it isn’t valid to directly compare homeownership with stocks. Although a home is normally a long-term appreciating asset, it is primarily shelter – most owners sell when their needs change, not when the market turns,” Combs said.
An analysis of all available data over the past six years shows almost every market experienced price gains from the second quarter of 2001 to the second quarter of this year.
According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage was 6.37 percent in the second quarter, up from 6.22 percent in the first quarter; the rate was 6.60 percent in the second quarter of 2006.
In the Midwest, total existing-home sales dropped 8.4 percent to a 1.39 million-unit annual level in the second quarter compared with a year ago. The median existing single-family home price in the Midwest was $163,500, down 2.2 percent from the second quarter of 2006.
Thursday, August 23, 2007
Lender Implosion! Buyer beware!
Did You Know… 116 Mortgage Lenders have imploded since late 2006.
(Source: www.LenderImplode.com 8-10-07) It’s sad to say, but this number increases almost EVERY day! It was 112 last Friday.
So… What’s causing these Lenders to tighten up their guidelines or even close their doors? Watch this video for your answer so you’ll know what to say when your client’s ask you. http://www.mortgagemarketguide.com/suewoodard/20070807/cnbc.asx
Now that you have watched the video and checked out www.LenderImplode.com it proves, now more than ever, your client’s credit score makes an enormous difference to the types and terms they will qualify for, if they qualify at all.
Buyers
- Work with a professional, AND make sure they are employed by a solid company. An internet lender or small “mom and pop” broker will typically be a greater risk because they normally don’t fund their own loans. Therefore they are subject to greater uncertainty with investors changing guidelines frequently.
- Find out exactly what program your client is going to use. If it’s an “Agency” loan (Fannie Mae, Freddie Mac, FHA, or VA) those are less likely to kill a deal due to guideline changes.
- Anything that is an “Alt-A Loan” (Stated Income, Stated Asset, No Doc, etc…) or Sub-Prime (credit issues) with a high LTV (over 80%) is subject to change, even after the loan is locked.
- If the loan isn’t a “slam-dunk” loan (high credit score, full document, with money down) ask for a “Loan Commitment” (subject to property) verses a “Pre-Approval.” A lender can “Credit Approve” (credit, income, debts, reserves, etc…) the client ahead of time without a specific property. Once a contract is written then issue a Full Loan Commitment for that property.
- Try to close within 30 days when possible. The longer it is before the closing date the more time available for guideline changes.
- Keep and eye on www.LenderImplode.com. Not only does it tell you which companies have gone out of business, it also shows you who’s about to.
If you need help choosing..call me!
(Source: www.LenderImplode.com 8-10-07) It’s sad to say, but this number increases almost EVERY day! It was 112 last Friday.
So… What’s causing these Lenders to tighten up their guidelines or even close their doors? Watch this video for your answer so you’ll know what to say when your client’s ask you. http://www.mortgagemarketguide.com/suewoodard/20070807/cnbc.asx
Now that you have watched the video and checked out www.LenderImplode.com it proves, now more than ever, your client’s credit score makes an enormous difference to the types and terms they will qualify for, if they qualify at all.
Buyers
- Work with a professional, AND make sure they are employed by a solid company. An internet lender or small “mom and pop” broker will typically be a greater risk because they normally don’t fund their own loans. Therefore they are subject to greater uncertainty with investors changing guidelines frequently.
- Find out exactly what program your client is going to use. If it’s an “Agency” loan (Fannie Mae, Freddie Mac, FHA, or VA) those are less likely to kill a deal due to guideline changes.
- Anything that is an “Alt-A Loan” (Stated Income, Stated Asset, No Doc, etc…) or Sub-Prime (credit issues) with a high LTV (over 80%) is subject to change, even after the loan is locked.
- If the loan isn’t a “slam-dunk” loan (high credit score, full document, with money down) ask for a “Loan Commitment” (subject to property) verses a “Pre-Approval.” A lender can “Credit Approve” (credit, income, debts, reserves, etc…) the client ahead of time without a specific property. Once a contract is written then issue a Full Loan Commitment for that property.
- Try to close within 30 days when possible. The longer it is before the closing date the more time available for guideline changes.
- Keep and eye on www.LenderImplode.com. Not only does it tell you which companies have gone out of business, it also shows you who’s about to.
If you need help choosing..call me!
Why I love Keller Williams...KW Cares! It's real!
I'm pretty new to Keller Williams. Our office in Kirkwood is just 1 year old. We opened our doors last year in 2006, but already we've grown to over 100 agents strong and we were in the Top 10 of ALL St. Louis real estate offices...Can you believe that...in just 1 year..And we are just getting started. Across the country Keller Williams has grown to the be the 4th largest real estate company with over 75,000 agents. But in St. Louis, we can sometimes be Keller Who? but we are quickly building a reputation of quality agents that care. But our agents don't just care about our clients. We care for each other. Keller Williams motto is God first, Family Second and then Business. But it's not just talk. We really do care for our own.
When hurricane Katrina happened..the entire National Association of Realtors raised $5.8 Million and that's terrific and makes me proud to be a realtor. But what is even more astounding, our company Keller Williams raised $5.3 in a company at that time of just 55,000 realtors. We raised almost as much as the ENTIRE real estate community. That's putting your money where your mouth is.
But even closed to home here is St. Louis, we gave back to our own. Please go to my website www.stlouishome.com click on the You Tube button and watch the Share the Light video.
I think you'll be touched and inspired. I won't spoil the story blogging about it...just watch it...
Anyway, that's who we are at Keller Williams. I'm blessed to be here. The water's different at Keller Williams! I like it.
People that care! People that take the time to love others. How refreshing. And isn't that just what we all should be doing anyway? So take some time and love someone today!
Anne
-------------------------------------------------------------------------------------
AUSTIN, TEXAS (Jan. 24, 2006) — In a concerted effort to help its Gulf States market centers recover from Hurricane Katrina, Keller Williams Realty Inc. and its public charity, Keller Williams Realty Cares (KW Cares) has raised $5.3 Million.
The amount is not far behind the collective fundraising efforts of the National Association of REALTORS®, which has raised $5.8 million for hurricane relief.
Keller Williams Realty Vice Chairman Mo Anderson says Keller Williams Realty’s giving culture has enabled the real estate franchise operation to “respond meaningfully” to its associates in need. As of the end of the year, donations from Keller Williams Realty’s 57,000-plus associates and the company’s 500-plus market centers across the United States and Canada – earmarking 10 percent of their profits to KW Cares, had totaled $5.3 Million.
“We are making history in real estate with KW Cares, which has been supporting our associates in times of extreme hardship since 2003,” Anderson says. “At Keller Williams Realty, we believe you have to give to get, and we were determined to surpass our goal of raising $5 million for our Gulf States associates.”
In addition to the fundraising campaign, KW Cares launched a long-term relief program called Heart 2 Heart, which is helping more than 700 Keller Williams Realty associates rebuild their lives and businesses. The adoption program enables volunteer Keller Williams Realty market centers in other regions to assist specific Gulf States associates impacted by Hurricane Katrina.
Susan Spencer, owner of the Keller Williams Advantage Olney/Rockville Market Center in Maryland, says her family is limiting their gift-giving this holiday season and spending the difference on a Gulf States Keller Williams Realty family that she and another Maryland market center adopted through the Heart 2 Heart program. Spencer, who joined Keller Williams Realty as a prospective owner this past May, says the company’s teamwork-oriented culture attracted her to Keller Williams Realty.
“You don’t particularly find that in real estate; it’s typically every man and woman for themselves,” Spencer says. “But at Keller Williams, it’s about people helping people – and that applies both professionally and personally.”
Keller Williams Realty associate Patricia Peyton of Metairie, La., knows firsthand the impact of KW Cares’ Heart 2 Heart program. After losing everything to Katrina, Peyton’s adoptive market center in California – together with some Keller Williams Realty associates in North Carolina – rallied to personally deliver new furniture, equipment and appliances for her home and office, as well as an SUV.
“To know that you have a company like this behind you is so comforting,” Peyton says. “What I really think is so beautiful is how everybody in this company came together. When we call it family, it really is a family. Agents from all over the country really stood behind us. You could really feel the caring. That’s why they call it KW Cares.”
####
About Keller Williams Realty Cares
Founded in 2003, Keller Williams Realty Cares (KW Cares) is a federally qualified 501(c)3 public charity created to support Keller Williams Realty associates and their families in times of extreme hardship. It is the heart of the Keller Williams Realty culture in action – finding and serving the higher purpose of business through charitable giving in the communities where Keller Williams Realty associates live and work. The charity gives 100 percent of the donations to Keller Williams Realty family members in need and charities that are aligned with the mission and values of Keller Williams Realty and KW Cares. Keller Williams Realty International, the franchise operation’s headquarters, covers the charity’s administrative costs. For more information, visit KW Cares at (www.kwcares.org).
When hurricane Katrina happened..the entire National Association of Realtors raised $5.8 Million and that's terrific and makes me proud to be a realtor. But what is even more astounding, our company Keller Williams raised $5.3 in a company at that time of just 55,000 realtors. We raised almost as much as the ENTIRE real estate community. That's putting your money where your mouth is.
But even closed to home here is St. Louis, we gave back to our own. Please go to my website www.stlouishome.com click on the You Tube button and watch the Share the Light video.
I think you'll be touched and inspired. I won't spoil the story blogging about it...just watch it...
Anyway, that's who we are at Keller Williams. I'm blessed to be here. The water's different at Keller Williams! I like it.
People that care! People that take the time to love others. How refreshing. And isn't that just what we all should be doing anyway? So take some time and love someone today!
Anne
-------------------------------------------------------------------------------------
AUSTIN, TEXAS (Jan. 24, 2006) — In a concerted effort to help its Gulf States market centers recover from Hurricane Katrina, Keller Williams Realty Inc. and its public charity, Keller Williams Realty Cares (KW Cares) has raised $5.3 Million.
The amount is not far behind the collective fundraising efforts of the National Association of REALTORS®, which has raised $5.8 million for hurricane relief.
Keller Williams Realty Vice Chairman Mo Anderson says Keller Williams Realty’s giving culture has enabled the real estate franchise operation to “respond meaningfully” to its associates in need. As of the end of the year, donations from Keller Williams Realty’s 57,000-plus associates and the company’s 500-plus market centers across the United States and Canada – earmarking 10 percent of their profits to KW Cares, had totaled $5.3 Million.
“We are making history in real estate with KW Cares, which has been supporting our associates in times of extreme hardship since 2003,” Anderson says. “At Keller Williams Realty, we believe you have to give to get, and we were determined to surpass our goal of raising $5 million for our Gulf States associates.”
In addition to the fundraising campaign, KW Cares launched a long-term relief program called Heart 2 Heart, which is helping more than 700 Keller Williams Realty associates rebuild their lives and businesses. The adoption program enables volunteer Keller Williams Realty market centers in other regions to assist specific Gulf States associates impacted by Hurricane Katrina.
Susan Spencer, owner of the Keller Williams Advantage Olney/Rockville Market Center in Maryland, says her family is limiting their gift-giving this holiday season and spending the difference on a Gulf States Keller Williams Realty family that she and another Maryland market center adopted through the Heart 2 Heart program. Spencer, who joined Keller Williams Realty as a prospective owner this past May, says the company’s teamwork-oriented culture attracted her to Keller Williams Realty.
“You don’t particularly find that in real estate; it’s typically every man and woman for themselves,” Spencer says. “But at Keller Williams, it’s about people helping people – and that applies both professionally and personally.”
Keller Williams Realty associate Patricia Peyton of Metairie, La., knows firsthand the impact of KW Cares’ Heart 2 Heart program. After losing everything to Katrina, Peyton’s adoptive market center in California – together with some Keller Williams Realty associates in North Carolina – rallied to personally deliver new furniture, equipment and appliances for her home and office, as well as an SUV.
“To know that you have a company like this behind you is so comforting,” Peyton says. “What I really think is so beautiful is how everybody in this company came together. When we call it family, it really is a family. Agents from all over the country really stood behind us. You could really feel the caring. That’s why they call it KW Cares.”
####
About Keller Williams Realty Cares
Founded in 2003, Keller Williams Realty Cares (KW Cares) is a federally qualified 501(c)3 public charity created to support Keller Williams Realty associates and their families in times of extreme hardship. It is the heart of the Keller Williams Realty culture in action – finding and serving the higher purpose of business through charitable giving in the communities where Keller Williams Realty associates live and work. The charity gives 100 percent of the donations to Keller Williams Realty family members in need and charities that are aligned with the mission and values of Keller Williams Realty and KW Cares. Keller Williams Realty International, the franchise operation’s headquarters, covers the charity’s administrative costs. For more information, visit KW Cares at (www.kwcares.org).
Monday, August 20, 2007
Dear Abbey? Dear Ann Landers? No, Dear Anne/your St Louis go to girl for real estate
hello blogger fans...this is your St. Louis blogging site for all things real estate and for all things St. Louis...so feel free to use me as your Dear Abby or Dear Ann Landers...but actually it will be just Dear Anne. I've been a top selling realtor for 22 years in St. Louis...yes I know...I'm getting old...but hey after all this time I've probably seen and experienced it all in my 22 years and plus now I've got wisdom...so feel free to ask me questions and pick my brains about anything and everything related to St. Louis real estate and I'll do my best to be your go to girl for answers...
Your Dear Anne
Your Dear Anne
Friday, August 17, 2007
How is St. Louis weathering the foreclosure storm?
Not too good, Not too bad overall. How's that for waffling?
Given how big St. Louis is, our foreclosure rate isn't too bad...unless you were the one that got foreclosed on. :-(
The St. Louis metropolitan area, though not immune to the headline-grabbing sub-prime mortgage meltdown, is weathering the storm better than most. While we are the 18th largest metropolitan area in the country, the 2007 Midyear Metropolitan Foreclosure Market Report™ from RealtyTrac places St. Louis 58th on its list measuring foreclosure rates in the 100 largest metropolitan areas.
"This report clearly demonstrates that not all local housing markets are flooded with foreclosures," said James J. Saccacio, chief executive officer of RealtyTrac. In the first half of 2007, one in 151 (0.6%) of home mortgages in the St. Louis were foreclosed on. Compare that with Detroit, which had a foreclosure rate of one in 29 (3.4%).
Our area has remained relatively stable despite the disconcerting numbers and news accounts. Buyers will continue to be able to borrow money with confidence as long as experienced companies remain steadfast in securing stable, fair products for their clients.
Given how big St. Louis is, our foreclosure rate isn't too bad...unless you were the one that got foreclosed on. :-(
The St. Louis metropolitan area, though not immune to the headline-grabbing sub-prime mortgage meltdown, is weathering the storm better than most. While we are the 18th largest metropolitan area in the country, the 2007 Midyear Metropolitan Foreclosure Market Report™ from RealtyTrac places St. Louis 58th on its list measuring foreclosure rates in the 100 largest metropolitan areas.
"This report clearly demonstrates that not all local housing markets are flooded with foreclosures," said James J. Saccacio, chief executive officer of RealtyTrac. In the first half of 2007, one in 151 (0.6%) of home mortgages in the St. Louis were foreclosed on. Compare that with Detroit, which had a foreclosure rate of one in 29 (3.4%).
Our area has remained relatively stable despite the disconcerting numbers and news accounts. Buyers will continue to be able to borrow money with confidence as long as experienced companies remain steadfast in securing stable, fair products for their clients.
Countrywide...The reports of my death have been greatly exaggerated.
Mark Twain once said the now famous quote:
The reports of my death have been greatly exaggerated.
I think the reports of Countrywide's death have been greatly exaggerated too. Although they are in tough times, I think they'll weather the storm and hang on to live another day. They are too big to let them fall. Remember Chrysler bail-out in 1983...Chrysler has lived to see another day...Countrywide will too...that doesn't mean lenders shouldn't get back to the basics, back to the fundamentals. When you forget the fundamentals of a game, you lose. That's what is happening to lenders. They forgot the fundamentals. They made anybody a loan anytime and now it's coming back to bite them. This isn't a fun time for home buyers, home sellers, realtors or lenders...but for the long-run, it will be good that the mortgage (whoever's is left) will get back to the basics and make quality loans and then can all get back to a better housing market with realistic sellers and strong, qualified buyers and happy endings. The good news is that because of Countrywide, the Fed finally cut rates...so it's not all bad news!
------------------------------------------------------------------------------
THE RATINGS GAME: Countrywide Upgraded As Analysts Say Lender Can Weather The Storm
August 17, 2007: 11:58 AM EST
BOSTON (Dow Jones) -- An analyst at Banc of America Securities upgraded shares of troubled mortgage lender Countrywide Financial Corp. to neutral from sell Friday, saying that tapping its $11.5 billion credit facility should provide Countrywide the time needed to address liquidity and capital concerns.
In a research note, however, analyst Robert Lacoursiere cut his price target on the stock to $21 from $31. Shares of Countrywide (CFC) , the largest U.S. mortgage lender, closed Thursday off 11% at $18.95 after it said it borrowed $ 11.5 billion from a group of 40 banks due to problems finding money in credit markets. To reduce its reliance on credit markets further, the company said that it would try to originate nearly all mortgages through its banking operation.
Lacoursiere said the upgrade doesn't reflect any shift in his bearish stance on the residential mortgage market. Instead, the stock price "fairly balances the probability of a conservative worst-case outcome of a liquidity induced distressed asset/breakup sale valued $7.25 against the prospect of a smaller and much less profitable company that we would value at $23.50 today."
Although Lacoursiere warned that "sizable risks remain," he said Countrywide's use of its credit line gives the company breathing room. "As a result we think the possibility of a liquidity induced distressed sale [is] unlikely," the analyst wrote.
Still, the company faces headwinds such as higher financing costs, slipping fundamentals and credit pressures, and Lacoursiere slashed his per-share profit estimates for this year and 2008. "Seeing the potential for a volatile saw- toothed performance as the market reassesses risk and confronts multiple quarters of poor results against deteriorating fundamentals, we do not see this as an opportunity to build a position," he said.
Credit agencies have already lowered their ratings on Countrywide's debt. The uncertainty surrounding the company's future highlights how far the pain that started in subprime mortgages has spread into other home loans that were seen as more secure.
Housing prices are down in many areas of the country, and more borrowers are defaulting as their mortgage rates rise. Several mortgage lenders have gone out of business or stopped originating new loans as sources of short-term financing have dried up. In response to the trouble in credit markets, the Federal Reserve on Friday said it has cut the discount rate to 5.75% from 6.25%.
The stock market rallied in response to the Fed's rare move as Countrywide's share gained more than 18% at $22.50 Friday morning.
Earlier this week, the stock plunged after Merrill Lynch analyst Kenneth Bruce downgraded the shares to sell from buy.
"We fear that the acceleration of margin calls and forced asset sales in the capital markets could lead to more problems for Countrywide to finance its mortgage operations," Bruce wrote in a note to clients Wednesday.
"Should a liquidity event occur, for which the likelihood is increasing, Countrywide shares would probably witness further selling pressure," he said.
Morningstar analyst Erin Swanson in a Thursday note took a more cautiously optimistic tone. After reviewing Countrywide's financial position, "we believe the chances of bankruptcy are remote and the firm will be able to operate through the current liquidity squeeze," the analyst said.
Although the company is facing "unprecedented disruptions" in the mortgage market and won't be able to completely sidestep the near-term pressure, "any earnings hit will not destroy significant value," Swanson said.
"The waters ahead are choppy, and market fear is not subsiding," the analyst said. "However, we contend that as the best-positioned mortgage originator, Countrywide is highly undervalued right now."
"Although the situation is currently dire, we think Countrywide's strategy leaves the company viable over the long term," added analysts at Fix-Pitt Kelton in a report Friday. "Essentially Countrywide is walking away from market-based financing and moving to a more stable source of financing at the bank."
Meanwhile, some are backing the "too big to fail" argument.
"In our view, the odds favor having the government save Countrywide rather than letting it fail," said Stanford Group in a note Friday. "The disruption to the economy would simply be too great."
The reports of my death have been greatly exaggerated.
I think the reports of Countrywide's death have been greatly exaggerated too. Although they are in tough times, I think they'll weather the storm and hang on to live another day. They are too big to let them fall. Remember Chrysler bail-out in 1983...Chrysler has lived to see another day...Countrywide will too...that doesn't mean lenders shouldn't get back to the basics, back to the fundamentals. When you forget the fundamentals of a game, you lose. That's what is happening to lenders. They forgot the fundamentals. They made anybody a loan anytime and now it's coming back to bite them. This isn't a fun time for home buyers, home sellers, realtors or lenders...but for the long-run, it will be good that the mortgage (whoever's is left) will get back to the basics and make quality loans and then can all get back to a better housing market with realistic sellers and strong, qualified buyers and happy endings. The good news is that because of Countrywide, the Fed finally cut rates...so it's not all bad news!
------------------------------------------------------------------------------
THE RATINGS GAME: Countrywide Upgraded As Analysts Say Lender Can Weather The Storm
August 17, 2007: 11:58 AM EST
BOSTON (Dow Jones) -- An analyst at Banc of America Securities upgraded shares of troubled mortgage lender Countrywide Financial Corp. to neutral from sell Friday, saying that tapping its $11.5 billion credit facility should provide Countrywide the time needed to address liquidity and capital concerns.
In a research note, however, analyst Robert Lacoursiere cut his price target on the stock to $21 from $31. Shares of Countrywide (CFC) , the largest U.S. mortgage lender, closed Thursday off 11% at $18.95 after it said it borrowed $ 11.5 billion from a group of 40 banks due to problems finding money in credit markets. To reduce its reliance on credit markets further, the company said that it would try to originate nearly all mortgages through its banking operation.
Lacoursiere said the upgrade doesn't reflect any shift in his bearish stance on the residential mortgage market. Instead, the stock price "fairly balances the probability of a conservative worst-case outcome of a liquidity induced distressed asset/breakup sale valued $7.25 against the prospect of a smaller and much less profitable company that we would value at $23.50 today."
Although Lacoursiere warned that "sizable risks remain," he said Countrywide's use of its credit line gives the company breathing room. "As a result we think the possibility of a liquidity induced distressed sale [is] unlikely," the analyst wrote.
Still, the company faces headwinds such as higher financing costs, slipping fundamentals and credit pressures, and Lacoursiere slashed his per-share profit estimates for this year and 2008. "Seeing the potential for a volatile saw- toothed performance as the market reassesses risk and confronts multiple quarters of poor results against deteriorating fundamentals, we do not see this as an opportunity to build a position," he said.
Credit agencies have already lowered their ratings on Countrywide's debt. The uncertainty surrounding the company's future highlights how far the pain that started in subprime mortgages has spread into other home loans that were seen as more secure.
Housing prices are down in many areas of the country, and more borrowers are defaulting as their mortgage rates rise. Several mortgage lenders have gone out of business or stopped originating new loans as sources of short-term financing have dried up. In response to the trouble in credit markets, the Federal Reserve on Friday said it has cut the discount rate to 5.75% from 6.25%.
The stock market rallied in response to the Fed's rare move as Countrywide's share gained more than 18% at $22.50 Friday morning.
Earlier this week, the stock plunged after Merrill Lynch analyst Kenneth Bruce downgraded the shares to sell from buy.
"We fear that the acceleration of margin calls and forced asset sales in the capital markets could lead to more problems for Countrywide to finance its mortgage operations," Bruce wrote in a note to clients Wednesday.
"Should a liquidity event occur, for which the likelihood is increasing, Countrywide shares would probably witness further selling pressure," he said.
Morningstar analyst Erin Swanson in a Thursday note took a more cautiously optimistic tone. After reviewing Countrywide's financial position, "we believe the chances of bankruptcy are remote and the firm will be able to operate through the current liquidity squeeze," the analyst said.
Although the company is facing "unprecedented disruptions" in the mortgage market and won't be able to completely sidestep the near-term pressure, "any earnings hit will not destroy significant value," Swanson said.
"The waters ahead are choppy, and market fear is not subsiding," the analyst said. "However, we contend that as the best-positioned mortgage originator, Countrywide is highly undervalued right now."
"Although the situation is currently dire, we think Countrywide's strategy leaves the company viable over the long term," added analysts at Fix-Pitt Kelton in a report Friday. "Essentially Countrywide is walking away from market-based financing and moving to a more stable source of financing at the bank."
Meanwhile, some are backing the "too big to fail" argument.
"In our view, the odds favor having the government save Countrywide rather than letting it fail," said Stanford Group in a note Friday. "The disruption to the economy would simply be too great."
Lender Implode Meter!
With the “Lender Implode” (lenderimplode.com) meter currently at 128 this week (was at 116 last Friday), and with drastic changes in the Sub-Prime and Alt-A market, what are the options for you “credit challenged” buyers? I’ll give you a hint, there are two answers, and both have 3 initials.
Give up?
FHA and PMI are the answers you’re looking for.
Here’s the scoop…
FHA: In the past, many people viewed FHA contracts as a pain due to stricter appraisal guidelines and Underwriting criteria. Well a lot of that has changed; actually it changed back on 12/19/05.
FHA terms allow for some credit challenges, somewhat weak credit scores or no score, and little down payment (3%).
PMI: In years past PMI was a “four letter” word, but the days of the 80/20 combo loans are all but gone. People used to do this type of transaction to avoid PMI, but today you will see it more and more. Here is why it’s not necessarily a bad thing.
*PMI on loans originated in 2007 are now tax deductible in 2007 if you make under $100,000
a year. This is new as of this year.
*PMI can be dropped in the future, without refinancing, as long as there is 20% equity and the client has no late payments on the mortgage. While an 80/20 was typically refinanced a few years later incurring additional closing costs and starting over at 30 years, again.
*A client with credit issues is much more likely to have their loan approved if it has PMI because the lender is protected by the PMI Company against a loss.
*Lender Paid Mortgage Insurance (LPMI), is now available for those that qualify. There is no monthly PMI paid by the client at all, and this option is cheaper than the 80/20 combo loan.
Give up?
FHA and PMI are the answers you’re looking for.
Here’s the scoop…
FHA: In the past, many people viewed FHA contracts as a pain due to stricter appraisal guidelines and Underwriting criteria. Well a lot of that has changed; actually it changed back on 12/19/05.
FHA terms allow for some credit challenges, somewhat weak credit scores or no score, and little down payment (3%).
PMI: In years past PMI was a “four letter” word, but the days of the 80/20 combo loans are all but gone. People used to do this type of transaction to avoid PMI, but today you will see it more and more. Here is why it’s not necessarily a bad thing.
*PMI on loans originated in 2007 are now tax deductible in 2007 if you make under $100,000
a year. This is new as of this year.
*PMI can be dropped in the future, without refinancing, as long as there is 20% equity and the client has no late payments on the mortgage. While an 80/20 was typically refinanced a few years later incurring additional closing costs and starting over at 30 years, again.
*A client with credit issues is much more likely to have their loan approved if it has PMI because the lender is protected by the PMI Company against a loss.
*Lender Paid Mortgage Insurance (LPMI), is now available for those that qualify. There is no monthly PMI paid by the client at all, and this option is cheaper than the 80/20 combo loan.
Monday, July 30, 2007
Arriva derchi Roma
My husband and I just turned 50 last week, so we took a 2 week vacation to Italy. Actually, now I’ve decided to call it a holiday like they do in England. “Are you on holiday?” everyone asks who you meet while traveling. Yes, I’m on holiday. I like that. Someone else said, vacation means to vacate your life…that sounds like you don’t like you’re life and you’re having to run away. Holiday sounds so playful, fun, expectant.
Well, Italy was everything I dreamed it would be and more. If I could go back in life and had unlimited funds, I wish I had taken my children traveling all over the world. It just changes and broadens your perspective so much. So many things click that you never understood before.
Mostly, history comes alive. They would never once have grumbled about taking a history class, if they actually walked on the Spanish Steps and seen the foresight the Romans had about acquducts and drainage systems, back 300 years ago for the Spanish Steps and 2,000 years ago for the rest of Roma…or Roma.
It made me realize what a baby country we are here in the United States. They were so smart…how did they build all they built in the 1500’s with what I think is limited resources? Where is our Renaissance? If Micheanglo and Leonardo could build and scult and paint like that back then, where are our artists now? Shouldn’t we have progressed to even more phenomenal works? It seems like it just stopped after that period ended.
I am humbled by Italy. We are so young. What great thinkers.
Rome was so much more navigatable than I thought. We parked ourselves near the Spanish Steps and walked everywhere. One thing I noticed about Italians from days gone by, they relax so much more than we do in the United States. We are jumped in our cars and rushing from thing to thing. Those Piazza’s! Wow! Just huge or small or medium squares everywhere with the sole purpose of meeting and relaxining and socializing. I like it. We need Piazza’s!
I love the fountains. If I were King of the Forest, I would put fountains everywhere in St. Louis. Fountains are a destination. Someone to go to, to walk to, somewhere to sit and while away time and meet and converse and catch up with people and unwind. And of course, I’d put tables all around them with wine…that always helps with the unwinding part.
Well, I have to rush off to church…but first one word about churches. Wow, the Catholics really do churches right. Our humble little Lutheran churches are nothing, absolutely nothing compared to the glory of every church in Italy. In Venice, there are 117 islands that make of Venice. They say everytime you cross a bridge you are on a new island…and it was 1 bridge, 1 island, 1 church. They had no excuse to not go worship God. Churches were everywhere.
We saw St. Peter’s in Rome and our jaw dropped. How does one find God in there though? Then we saw St. Mark’s in Venice and our jaw dropped. By time we got to Milan, we didn’t think we should even bother with it…how could we possible be impressed again. The Duomo Cathedral took 5 centuries to build and is the 4th largest church in Europe after the Vatican, St. Paul’s of London and the Sevilla. The final construction was spurred onto to completion by Napolean for pity sakes.
Yup, our jaw dropped again. What an exterior facade of Gothic spires…truly almost unbelievalbe. Was all of Italy a dream? Guess I’ll go off now to my new church built for $5 Million in 2003 that seemed pretty special to me when we were building it, but now seems all the smaller and humbler and simple.
But you know what, the good news is that I know I can find God in a corn field or our church or the Duomo…buildings are for man…our hearts are for God…that what he cares about most…and the rest is history as they say.
Arriva Derchi Roma…I’ll miss you and Venice and Florence and Tuscany…ahhhh…
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