FSBO BLOG

Understand the past, believe in the future!

Mike, FSBO.com — Wed, 17 Feb 2010 14:54:04 +0000

Many groups give out real estate related information on a regular basis. Looking short term can get you confused and riled with no consistency. Longer term, things come into focus. Todays information shows:

1. Commerce Department announced January housing starts increased 2.8 percent to a seasonally adjusted annual rate of 591,000 units.

2. The Commerce Department also said New building permits, which give a sense of future home construction, fell 4.9 percent to 621,000 units.

3. The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity decreased 2.1 percent to 600.5 for the week.

Know the past so you don’t make the same mistakes, trust the future with more knowledge & experience.

Have a qualified buyer, but the bank won’t close the loan?

Mike, FSBO.com — Tue, 16 Feb 2010 16:16:56 +0000

Yes, we keep hearing stories of sellers with a qualified buyer ready to close on the sale, but the mortgage lender keeps delaying plus coming up with new documents that need to be completed. Sometimes they act like yours if the first time they have ever given a mortgage on a property. Here is one reason:

THE BANKS ARE HOARDING THEIR CASH!!, NOT WANTING TO LOAN!! How do we know this, well, according to Federal Reserve data, major banks are now sitting on as much as $1.29 trillion in cash, equal to a record 98 cents for every dollar of existing business loans. This figure of cash has more than quadrupled from 21 cents in June 2008.

Our suggestion, keep pushing them or contact your congressman or take your business to someone else.

Anybody else had these problems??

ALL ABOUT AFFORDABILITY

Mike, FSBO.com — Thu, 31 Dec 2009 16:20:13 +0000

Home sales is all about affordability, the lower the cost (price of property + interest paid) of ownership, the more sales there will be.

We have been pounding the table that the bottom is in and interest rates will rise by Spring. Here is more information to back that up:

In an effort to stimulate home sales, the Federal Reserve, in an unprecedented move, has purchased of $1.25 trillion of mortgage securities and plans to stop as soon as March, driving up interest rates on new home loans. Analysts at BNP Paribas SA, Credit Suisse Group AG and JPMorgan Chase & Co. say the extra yield over benchmark rates that investors demand to hold the securities will widen as much as half a percentage point as the Fed stops purchasing. The 11- month-old program has reduced yields, which guides lending rates, by about 1 percentage point, BNP estimates. Along with the Federal Tax credit incentive, which ends April 30th, sales number should keep increasing for the next several months, then hit a ‘brick wall’.

If you are planning to sell in the Spring or Summer, you should move up your marketing schedule to as early as possible. If you are planning to buy, right now is time.

Lesson in Treasury Yield Curve

Mike, FSBO.com — Thu, 10 Dec 2009 19:09:22 +0000

Today, Bloomberg News reported that US Treasuries fell in price, with the gap in yields between 2- and 30-year securities reaching the widest margin since at least 1980, after a $13 billion offering of 30- year bonds drew lower-than-forecast demand. The so-called yield curve touched 372 basis points, the most in at least 29 years, as the bonds drew a yield of 4.52 percent. The so-called yield curve has widened from 191 basis points at the end of 2008.

Lesson #1: The Federal Reserve controls the short term interest and the market place controls the long term interest rates. Todays news is telling us that the market place is anticipating much higher long term interest rates (30 year mortgages fall into this category).

Lesson #2: From 1980 to 1984 long term interest rates sky rocketed, if todays news is the start of a trend, then this could be a repeat.

Lesson #3: Foreign central banks, bought 40.2 percent of today’s auction. They purchased 44 percent at the November sale.

Rates on 30-year mortgages set new record low

Mike, FSBO.com — Fri, 04 Dec 2009 16:47:00 +0000

WASHINGTON (AP) — The average interest rate for a 30-year mortgage dropped to a record low of 4.71 percent this week. The Federal Reserve is pumping $1.25 trillion into mortgage-backed securities to try to bring down mortgage rates, but that money is set to run out next spring. Add the $8000 tax credit, which also ends next spring and lower home prices, this is it, the bottom is here!

Home Prices in 20 U.S. Cities Rise for Third Month

Mike, FSBO.com — Tue, 27 Oct 2009 14:16:14 +0000

Home prices in 20 U.S. cities rose in August for a third consecutive month, according to S&P/Case-Shiller home-price index, the index climbed 1 percent from the prior month, seasonally adjusted, after a 1.2 percent increase in July, the group said today in New York. Prices are at levels not seen since August 2003 and have fallen almost 30 percent from the peak in May 2006.

Sneak Peek of New FSBO.com Site

Mike, FSBO.com — Tue, 29 Sep 2009 13:16:24 +0000

Here is a sneak peek of the new FSBO.com homepage…

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New FSBO.com Site - Coming Soon!

Mike, FSBO.com — Mon, 28 Sep 2009 14:13:04 +0000

We are excited to let you know about some new and exciting changes coming to www.FSBO.com in the coming weeks. We will launch a newly designed and upgraded website to better serve our customers!

Here are a few benefits of the new FSBO.com site…

- Easier, more updated use for all consumers, including Sellers and Buyers

- Larger photos and headlines on property listings

- Improved Seller’s admin area with new multiple photo uploader

- Improved search capabilities for Buyers, including a map-based search feature

- Updating Mobile Site with better search and more property information

- Officially rolling out our Rental and International property sections

- Adding Spanish translation to broaden FSBO.com’s Global presence

- And much more!

We look forward to better helping you Buy, Sell and Rent Real Estate - For Sale By Owner with this new website!

$8,000 First-time Home Buyer Tax Credit update

Mike, FSBO.com — Thu, 03 Sep 2009 15:35:46 +0000

YOU MUST CLOSE THE TRANSACTION BY NOV 30, 2009!!!!

Based on recent stories of closings, FSBO.com predicts many real estate closings the last week of November, 2009 will be a real mess. The main reason: the surge in mortgage applications overwhelming lenders. These days most lenders have reduced staff, increased paperwork required to sell the loan, dealt with constantly changing rules by government and many have accepted applications, only to run out of money or go out of business just days before the closing.

Let me know if you have recent experience with a closing delay or problem.

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Existing Home Sales Surge 7.2%, Highest Level in Two Years

Mike, FSBO.com — Thu, 03 Sep 2009 15:10:18 +0000

8/30/09 Sales of existing U.S. homes jumped more than forecast in July to the highest level in almost two years, signaling the housing crisis that crippled the world’s largest economy is easing. Purchases climbed 7.2 percent to a 5.24 million annual rate, the most since August 2007, according to National Association of Realtors.

‘Cash for Clunkers’ definitely helped sell cars and First Time Home Buyer credit has helped boost real estate sales, the problem is that this program ends Nov 30, 2009. You can expect a surge of closings at the end of November. Based on current experience, lenders and goverment agencies keep changing their rules to have a successful closing. FSBO.com urges sellers to price your home correctly to take advantage of this surge and buyers to not wait until the last minute.

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