How about some quick general market information on Montgomery County. Yep sales were down again in May BUT sales prices increased again. It appears that when we get the final numbers that year over year "average price" gains will be about 7.7%. Still crazy isn't it. Sales are down and prices are still increasing. The "median price" will also have increased about 6.2%. And all of this combined with increasing interest rates.
What about foreclosures in Montgomery County? Well we are well behind the rest of the nation which is a good thing. The county foreclosure rate increased only about 14% in the first three months of this year as compared to last year. Not bad at all when you consider that overall nationwide foreclosures increase a whopping 112%. I think we are in pretty good shape. There were 443 this year versus 387 last year. Foreclosure have increased each of the last three months so we may see a couple more months of increases. But we will not see here what is happening in the rest of the nation. Overall Texas had just under 34,000 for the first quarter of this year. Are there foreclosure deals out there for you to buy? Yes. However if you aren't looking every day the good ones are gone before you get there.
That is just a quick update. The final nunbers should be out this week and we will see what they hold. Is anyone's crystal ball working???
Have a great day.
Ron
Monday, June 23, 2008
Tuesday, June 17, 2008
Interest rate - LOW LOW
Interest rates have risen over the last month. They were starting to come down a little today but not quickly. Yet there are astoundingly great deals available especially if you are a Texas veteran or let me put it another way if you are a veteran living in Texas. You will be amazed at who is eligible. You may not think you are but you might just be surprised.
Every Friday evening I get an update on the interest rates and discounts available through the Texas Veterans Land Board (TVLB). Last Friday's rates were: 6.1% base rate, discount for 15 year or less loan -.25%, disabilities program -.35%, qualified service era discount -1.64%. That means someone like me with a service era discount could get a 30 year loan at a rate of 4.46% and if I wanted a 15 year loan the interest rate would be 4.21%. Those are unbelievable rates.
Now catch this not only does the TVLB have home loans but they also have loans for land (yes that is raw land) and home improvements. AND they also have a direct loan program where they will lend you up to $45,000 direct to purchase your primary residence. Yes I know you are thinking that you can't buy anything for $45,000. But you are wrong. Where I live, around Lake Conroe, there are a lot of great one bedroom condos for that price and less. Can imagine being a single 25 year old vet and getting to buy a condo at your age? What a way to buy rather than rent at that age. What a great way to also start your real estate portfolio. And one more thing...you can participate in all three programs, home, land and home improvement at the same time. Now that is amazing.
Texas is one of only five states to offer veteran benefits. This is one of the greatest programs going!! In Montgomery County there are over 4,000 known veterans. I say known veterans because I checked and I am not on the list. But I do qualify even though I entered the USMC from Chicago. Yep you may not think you are a Texas veteran but you probably are.
What do you do now? If you are a veteran looking for a home or land in Montgomery or Walker County email today and I will help you find the property and put you in touch with the right loan officer knowledgeable about the TVLB programs. If you are looking in Harris County email be and I will connect you with a realtor who is a veteran and knowledgeable with the TVLB programs.
If you are a veteran don't waste a minute. Email me today please. Thanks and have a great day!
Every Friday evening I get an update on the interest rates and discounts available through the Texas Veterans Land Board (TVLB). Last Friday's rates were: 6.1% base rate, discount for 15 year or less loan -.25%, disabilities program -.35%, qualified service era discount -1.64%. That means someone like me with a service era discount could get a 30 year loan at a rate of 4.46% and if I wanted a 15 year loan the interest rate would be 4.21%. Those are unbelievable rates.
Now catch this not only does the TVLB have home loans but they also have loans for land (yes that is raw land) and home improvements. AND they also have a direct loan program where they will lend you up to $45,000 direct to purchase your primary residence. Yes I know you are thinking that you can't buy anything for $45,000. But you are wrong. Where I live, around Lake Conroe, there are a lot of great one bedroom condos for that price and less. Can imagine being a single 25 year old vet and getting to buy a condo at your age? What a way to buy rather than rent at that age. What a great way to also start your real estate portfolio. And one more thing...you can participate in all three programs, home, land and home improvement at the same time. Now that is amazing.
Texas is one of only five states to offer veteran benefits. This is one of the greatest programs going!! In Montgomery County there are over 4,000 known veterans. I say known veterans because I checked and I am not on the list. But I do qualify even though I entered the USMC from Chicago. Yep you may not think you are a Texas veteran but you probably are.
What do you do now? If you are a veteran looking for a home or land in Montgomery or Walker County email today and I will help you find the property and put you in touch with the right loan officer knowledgeable about the TVLB programs. If you are looking in Harris County email be and I will connect you with a realtor who is a veteran and knowledgeable with the TVLB programs.
If you are a veteran don't waste a minute. Email me today please. Thanks and have a great day!
Wednesday, June 11, 2008
Houston #1
You read the title correctly, Houston is #1! Who says? Kiplinger.com has rated Houston #1 in its' 2008 Best Cities ratings. Thank you Kiplinger.com.
According to the article Houston created over 100,000 new jobs in 2007. That in itself is amazing. The income growth for the city is 13.1% since 2000. New jobs and more money! What a great combination. I will bet there are not a lot of cities in the US that can claim the same. Do you realize that according to the article our cost-of-living index is an 88.1? With the national average being a rating of 100 we are well below the national average. I will wager you right now that along with this great news we will even see the Astros win the World Series this year. Okay I may be dreaming a little there.
But let me ask you this after you have read what I wrote above and what I wrote earlier this month about rising home prices. Why are you waiting to buy? Our city and county are growing, home sales are down but average home sale prices are rising and interest rates are low. Yet some of you are sitting in the corner of the dugout waiting until the ninth inning to come to bat. Well guess what? It is the bottom of the ninth.
Why do I say it is the bottom of the ninth and that now is the time to take your swing at a home purchase or sale? The US dollar needs strengthening so I don’t think the Fed will cut interest rates any more. The Saudis just called for an oil summit to examine the current outrageous price of oil. They may turn on the tap. They have 2,000,000 more barrels a day that they can produce. Congress is looking at commodity speculators. It is an election year and our incumbents all want to keep their cushy political jobs and they know every vote counts. They will do something, be it right or wrong to get your vote. NAR just showed that pending home sales just took an unexpected jump. The FHA may start taking credit scores in the 580 area to help increase home sales. That in my opinion is a whole lot of stuff that is happening or is going to happen very shortly to spark the market. Please realize that I am not an economist or even a good prognosticator but I do read, study and know the market. Home prices in our market are not going to go down. They haven't yet and won't in the future. The best deals are now.
Okay grab your helmet and bat. Get out to the on-deck circle (in other words call your mortgage banker and get your prequal letter), warm-up and let’s go take our swings at buying that home you have been dreaming about. And please no steroids. That is what got us in trouble in the first place.
Have a great day! And please don't forget to call me so I can help you buy that new home!
Ron
According to the article Houston created over 100,000 new jobs in 2007. That in itself is amazing. The income growth for the city is 13.1% since 2000. New jobs and more money! What a great combination. I will bet there are not a lot of cities in the US that can claim the same. Do you realize that according to the article our cost-of-living index is an 88.1? With the national average being a rating of 100 we are well below the national average. I will wager you right now that along with this great news we will even see the Astros win the World Series this year. Okay I may be dreaming a little there.
But let me ask you this after you have read what I wrote above and what I wrote earlier this month about rising home prices. Why are you waiting to buy? Our city and county are growing, home sales are down but average home sale prices are rising and interest rates are low. Yet some of you are sitting in the corner of the dugout waiting until the ninth inning to come to bat. Well guess what? It is the bottom of the ninth.
Why do I say it is the bottom of the ninth and that now is the time to take your swing at a home purchase or sale? The US dollar needs strengthening so I don’t think the Fed will cut interest rates any more. The Saudis just called for an oil summit to examine the current outrageous price of oil. They may turn on the tap. They have 2,000,000 more barrels a day that they can produce. Congress is looking at commodity speculators. It is an election year and our incumbents all want to keep their cushy political jobs and they know every vote counts. They will do something, be it right or wrong to get your vote. NAR just showed that pending home sales just took an unexpected jump. The FHA may start taking credit scores in the 580 area to help increase home sales. That in my opinion is a whole lot of stuff that is happening or is going to happen very shortly to spark the market. Please realize that I am not an economist or even a good prognosticator but I do read, study and know the market. Home prices in our market are not going to go down. They haven't yet and won't in the future. The best deals are now.
Okay grab your helmet and bat. Get out to the on-deck circle (in other words call your mortgage banker and get your prequal letter), warm-up and let’s go take our swings at buying that home you have been dreaming about. And please no steroids. That is what got us in trouble in the first place.
Have a great day! And please don't forget to call me so I can help you buy that new home!
Ron
Monday, June 9, 2008
Open Houses - today's reality
Dear Mr. & Mrs. Home Seller, I would like to take a few minutes and tell you what I believe to be today's reality on holding an open house in order to sell your home. I realize you want me to do all that I can to sell your home. Please know that I will do that. But I think both of us want to be efficient in those efforts and holding an open house in today's market is like driving a big SUV - not efficient.
In the old days, meaning one year ago, buyers would go to church on Sunday morning, take in a leisurely brunch afterwards and then go drive around several subdivisions looking for open houses to tour in hopes of finding a home they liked and might consider for purchase. Some of these people would be serious buyers while others would just be tire kickers and still others were just looking for decorating ideas. In reality statistics show that fewer than 2% of home buyers find the home they purchase via open houses. That means you would have to vacate your home and I would have to sit in it for 50 consecutive weekends for me to sell your home using this method. I don't know about you but at some point during that 50 week span one of us might get a little frustrated with the other. What do you think?
What is today's reality? In consists of two phrases. The first of these phrases is fuel costs. With the national average for a gallon of gasoline above $4.00 I do not believe that a whole lot of people are leisurely driving around looking for homes to preview. When people are paying $80 for a fill-up the needless expense of an idling vehicle is not something that most of us can bear. The second phrase that has affected the effectiveness of open houses is the Internet. When one can now sit at home in air conditioned comfort and use the computer to preview homes rather than drive around wasting $4.00 per gallon fuel with three kids screaming in the back seat I think most people will do that. I don't know about you but I am not into self punishment and monetary wastefulness. It just does not make sense to me and I seriously doubt it does to you either.
So please Mr. and Mrs. Seller when I tell you that open houses are a waste of time and money today believe me. Let's think of the buyer and not ourselves when making these decisions. I realize that some of you may not like to hear this from me. However one of the things I promised you as your real estate agent was veracity. To give you the truth at all times even when I knew you might not like to hear what I had to say.
Thanks for listening.
Ron
In the old days, meaning one year ago, buyers would go to church on Sunday morning, take in a leisurely brunch afterwards and then go drive around several subdivisions looking for open houses to tour in hopes of finding a home they liked and might consider for purchase. Some of these people would be serious buyers while others would just be tire kickers and still others were just looking for decorating ideas. In reality statistics show that fewer than 2% of home buyers find the home they purchase via open houses. That means you would have to vacate your home and I would have to sit in it for 50 consecutive weekends for me to sell your home using this method. I don't know about you but at some point during that 50 week span one of us might get a little frustrated with the other. What do you think?
What is today's reality? In consists of two phrases. The first of these phrases is fuel costs. With the national average for a gallon of gasoline above $4.00 I do not believe that a whole lot of people are leisurely driving around looking for homes to preview. When people are paying $80 for a fill-up the needless expense of an idling vehicle is not something that most of us can bear. The second phrase that has affected the effectiveness of open houses is the Internet. When one can now sit at home in air conditioned comfort and use the computer to preview homes rather than drive around wasting $4.00 per gallon fuel with three kids screaming in the back seat I think most people will do that. I don't know about you but I am not into self punishment and monetary wastefulness. It just does not make sense to me and I seriously doubt it does to you either.
So please Mr. and Mrs. Seller when I tell you that open houses are a waste of time and money today believe me. Let's think of the buyer and not ourselves when making these decisions. I realize that some of you may not like to hear this from me. However one of the things I promised you as your real estate agent was veracity. To give you the truth at all times even when I knew you might not like to hear what I had to say.
Thanks for listening.
Ron
Wednesday, June 4, 2008
Average Home Sales Price
I promised last week that we would take look at what home prices are doing in our area during this "catastrophic" real estate market that we are experiencing. I think when you take a look at this data you will come to the conclusion that all is not doom and gloom.
The numbers shown below are for the four MLS areas that represent Montgomery County. These numbers show what the average sales was for single family residences sold in April 2008, 2007 and 2006 and amount (in percentage) of that increase or decrease. Take a look and let me know what you think.
MLS--------2008-----% +/-------2007-------% +/------2006
15--------$291,026---14.12%---- $255,026---0.78%----$253,051
19--------$126,069--<12.90%>----$144,737----12.15%---$129,055
39--------$252,019---2.98%-----$244,736----35.41%---$180,734
40--------$169,069---13.87%----$148,469---<5.47%>----$157,052
I don't see a lot of price decreases in those numbers. And I do not think you will in the future either. Sales in our area may be down but prices in the vast majority of cases are going up. As I said in an earlier blog I believe we are at or near the bottom. If you are going to get in on the buyers market you had better do it now.
Questions??? Just send me an email.
I hope you have a great day.
Ron
PS: Sorry about all of the ---- but the system doesn't allow the insertion of a table.
The numbers shown below are for the four MLS areas that represent Montgomery County. These numbers show what the average sales was for single family residences sold in April 2008, 2007 and 2006 and amount (in percentage) of that increase or decrease. Take a look and let me know what you think.
MLS--------2008-----% +/-------2007-------% +/------2006
15--------$291,026---14.12%---- $255,026---0.78%----$253,051
19--------$126,069--<12.90%>----$144,737----12.15%---$129,055
39--------$252,019---2.98%-----$244,736----35.41%---$180,734
40--------$169,069---13.87%----$148,469---<5.47%>----$157,052
I don't see a lot of price decreases in those numbers. And I do not think you will in the future either. Sales in our area may be down but prices in the vast majority of cases are going up. As I said in an earlier blog I believe we are at or near the bottom. If you are going to get in on the buyers market you had better do it now.
Questions??? Just send me an email.
I hope you have a great day.
Ron
PS: Sorry about all of the ---- but the system doesn't allow the insertion of a table.
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