In November, the Honolulu Real Estate market felt the favorable influen ces of the low interest rates, low prices and first time home buyer tax credits.
249 single family homes sold vs 170 last year. POSITIVE INDICATOR
407 condos sold vs 201 last year.
POSITIVE INDICATOR
The median sales price for single family homes was lower than last year at $590,000 vs $594,500. POSITIVE INDICATOR
For condos, the median sales price was slightly higher than last year at $320,000 vs $316,200. STABLE INDICATOR
Sales have been brisk with days on market for single family homes from listing to escrow dropping to 42 days vs 57 last year. POSITIVE INDICATOR
Condo sales have been especially brisk with days on market at 32, less than half as much as last year at 68. EXTREMELY POSITIVE INDICATOR
The popular prices for single family homes has been anything between $200,000 to $300,000 and $400,000 to $700,000. For condos, those priced between $200,000 and $250,000 and $300,000 to $500,000 have had the most activity. PRICE INDICATOR FOR DEMAND
As a result, 5 of 17 single family neighborhoods and 9 of 19 condo neighborhoods are in stage 2 of the real estate cycle for November. ( Unit sales are above prior year and the median sales price is also above prior year) EXTREMELY POSITIVE INDICATOR
If your're interested in purchasing a new home or investment property, now is the ideal time with the current market conditions of low interest rates, low prices and tax credits for first time home buyers as well as home seller's looking to purchase.
In November, the median sales price was .8% below prior year while the year to date median sales price is 7% below prior year. This would indicate that prices are firming up vs prices earlier in the year.
The same holds true for condos. In November, the median sales price was 1.2% above prior year. The year to date price is 6.8% below prior year. This indicates condo prices are already moving up vs prior year.
Conditions are such that we're nearing the bottom of the market for single family homes and condos. With the low inventories of property available continuing to decline and demand remaining stable, upward pressure is beginning on list and sales prices.
Don't miss this opportunity to get a great buy by waiting for the market to hit bottom. You won't know when that is until AFTER it's occurred! It may have already occurred for condos!!
If you'd like some assistance to take advantage of these A UNIQUE market conditions, call Dwight Ellis at 808 351-1507.
Tuesday, December 8, 2009
Monday, November 30, 2009
Hawaii Real Estate Market Update
As we near the end of the year, it's always good to look at the positives and negagives of the market and what the future may hold.
Positives:
Low interest rates
Increased individual purchasing power
Extended first time homebuyer tax credit
Expanded tax credit program for home owners purchasing a home.
FHA extends higher loan amount ceilings.
Stock market is moving up
National GDP at 2.8% (The recession is over?)
Fed promises to keep interest rates artificially low to strengthen economoc growth.
Low prices for real estate
Low inflation
Housing market in the US is stabilizing
Negatives:
Mortgage loan requirements are more stringent, limiting Buyers who can qualify.
FHA rules for condo approvals are changing and in flux
GDP Growth is due to public sector Cash for Clunkers and First Time Homebuyer tax credits. These programs eventually end along with any jobs created.
With the Treasury printing and expanding the money supply, the value of the dollar is softening.
Low housing inventory means multiple offers and competition for well priced properties.
Hawaii unemployment will probably continue to rise with the upcoming increase in the unemployment fees for businesses to make the state unemployment fund liquid. Businesses will probably do less hiring and/or go out of business.
Summary:
Based on the positives and negatives noted above, indications are that 2010 will be close to the bottom of the real estate cycle for Hawaii.
As a result, this is an excellent time for Buyers who can qualify for a loan, to purchase a home.
It's also an excellent time for Sellers who need to sell, to sell quickly if priced well.
It's also an excellent time for sellers to move up by purchasing a better home in a better neighborhood, with the low prices currently available.
If you'd like to discuss your options as a Buyer or Seller, contact Dwight Ellis at dwighte@cbpacific.com or call me at 808 351- 1507.
Positives:
Low interest rates
Increased individual purchasing power
Extended first time homebuyer tax credit
Expanded tax credit program for home owners purchasing a home.
FHA extends higher loan amount ceilings.
Stock market is moving up
National GDP at 2.8% (The recession is over?)
Fed promises to keep interest rates artificially low to strengthen economoc growth.
Low prices for real estate
Low inflation
Housing market in the US is stabilizing
Negatives:
Mortgage loan requirements are more stringent, limiting Buyers who can qualify.
FHA rules for condo approvals are changing and in flux
GDP Growth is due to public sector Cash for Clunkers and First Time Homebuyer tax credits. These programs eventually end along with any jobs created.
With the Treasury printing and expanding the money supply, the value of the dollar is softening.
Low housing inventory means multiple offers and competition for well priced properties.
Hawaii unemployment will probably continue to rise with the upcoming increase in the unemployment fees for businesses to make the state unemployment fund liquid. Businesses will probably do less hiring and/or go out of business.
Summary:
Based on the positives and negatives noted above, indications are that 2010 will be close to the bottom of the real estate cycle for Hawaii.
As a result, this is an excellent time for Buyers who can qualify for a loan, to purchase a home.
It's also an excellent time for Sellers who need to sell, to sell quickly if priced well.
It's also an excellent time for sellers to move up by purchasing a better home in a better neighborhood, with the low prices currently available.
If you'd like to discuss your options as a Buyer or Seller, contact Dwight Ellis at dwighte@cbpacific.com or call me at 808 351- 1507.
Wednesday, November 25, 2009
Now is a GREAT time to buy that first home!!
If you’ve done your homework, and saved your money, NOW is a great time to buy your first home. Prices are still dropping—a little. But inventory of single family homes and condos is also dropping (so there might be fewer properties in your price range than there were—see the list below).
Interest rates are still low. That means you can still get a good deal in the real estate market. With the interest rates low, your buying power is higher than if the interest rates were high. For example, buying a $750,000 home at 4.5% would cost $650 a month LESS than buying it at 7%!!! That’s a huge savings!
In addition, the first time home buyers’ credit has been extended. You must be in escrow by April 30, and close by June 30, 2010, in order to take advantage of this credit…. Also, the property has to be less than $800,000.
Inventory of homes (both condos and single family homes) is dropping, so soon it may be a sellers’ market. Lots of people will be out there, just like you, looking for their next home, wanting to buy. Now is such a good time to buy.
Here is the breakdown of single family homes available on Oahu (as of today) in various price ranges:
79 homes: $100,000 to $350,000
141 homes: $351,000 to $450,000
262 homes: $450,001 to $600,000
203 homes: $600,001 to $750,000
100 homes: $750,001 to $800,000
59 homes: $800,001 to $950,000
59 homes: $950,001 to $1,100,000
374 homes: over $1,100,001
Here is the breakdown of condos available on Oahu (as of today) in various price ranges (this list may include leasehold properties and studios):
94 condos: to $100,000
396 condos: $100,001 to $200,000
456 condos: $200,001 to $300,000
314 condos: $300,001 to $400,000
173 condos: $400,001 to $500,000
98 condos: $500,001 to $600,000
90 condos: $600,001 to $700,000
56 condos: $700,001 to $800,000
32 condos: $800,001 to $900,000
25 condos: $900,001 to $1,000,000
149 condos: over $1,000,001
There may be a lot to choose from in your price range, or there may be only a few properties.
Call your real estate agent now. If you don’t have an agent you are already working with, please call me… Tiare Dutcher at 808-753-5327. I would be happy to help you find your FIRST home.
Interest rates are still low. That means you can still get a good deal in the real estate market. With the interest rates low, your buying power is higher than if the interest rates were high. For example, buying a $750,000 home at 4.5% would cost $650 a month LESS than buying it at 7%!!! That’s a huge savings!
In addition, the first time home buyers’ credit has been extended. You must be in escrow by April 30, and close by June 30, 2010, in order to take advantage of this credit…. Also, the property has to be less than $800,000.
Inventory of homes (both condos and single family homes) is dropping, so soon it may be a sellers’ market. Lots of people will be out there, just like you, looking for their next home, wanting to buy. Now is such a good time to buy.
Here is the breakdown of single family homes available on Oahu (as of today) in various price ranges:
79 homes: $100,000 to $350,000
141 homes: $351,000 to $450,000
262 homes: $450,001 to $600,000
203 homes: $600,001 to $750,000
100 homes: $750,001 to $800,000
59 homes: $800,001 to $950,000
59 homes: $950,001 to $1,100,000
374 homes: over $1,100,001
Here is the breakdown of condos available on Oahu (as of today) in various price ranges (this list may include leasehold properties and studios):
94 condos: to $100,000
396 condos: $100,001 to $200,000
456 condos: $200,001 to $300,000
314 condos: $300,001 to $400,000
173 condos: $400,001 to $500,000
98 condos: $500,001 to $600,000
90 condos: $600,001 to $700,000
56 condos: $700,001 to $800,000
32 condos: $800,001 to $900,000
25 condos: $900,001 to $1,000,000
149 condos: over $1,000,001
There may be a lot to choose from in your price range, or there may be only a few properties.
Call your real estate agent now. If you don’t have an agent you are already working with, please call me… Tiare Dutcher at 808-753-5327. I would be happy to help you find your FIRST home.
Tuesday, November 24, 2009
Finding a Best Buy
As I continue to mention there are three popular approaches in determining a best buy: 1.) for investors, rental property that yields a positive cash flow with minimal down payment. 2.) Properties where the asking price is substantially below like kind homes that have sold within the last six months. 3.) Properties where the quality or condition is above average, in a highly sought after area, in a neighborhood where the inventory for sale is relatively nonexistent and are selling at or below market value.
Of late the focus has been on the Real Estate Agent and his or her ability and understanding of the market and how best they can help their client exploit certain variation on these three points. In this regard let’s take point (2) Properties where the asking price is substantially below like kind homes that have sold within the last six months. Most recently I came across a listing in Diamond Head, Black Point neighborhood. The property was offered at $1,395,000. The land was assed at $2,179,000 and the structure was $203,900. Black Point is a very desirable area. When looking at the comps this 1,395,000 did meet the requirement of selling substantially below like kind homes that have sold within the last six months. Even if the buyer was considering tearing down the structure and buy only for the land. The assessment still gives a strong indication this is a good buy.
If you would like any further details on this property or other potential best buys please do not hesitate to call 503 475 6872, Abron Toure. Let me show you how this property or any other can be turned into a great opportunity.
Of late the focus has been on the Real Estate Agent and his or her ability and understanding of the market and how best they can help their client exploit certain variation on these three points. In this regard let’s take point (2) Properties where the asking price is substantially below like kind homes that have sold within the last six months. Most recently I came across a listing in Diamond Head, Black Point neighborhood. The property was offered at $1,395,000. The land was assed at $2,179,000 and the structure was $203,900. Black Point is a very desirable area. When looking at the comps this 1,395,000 did meet the requirement of selling substantially below like kind homes that have sold within the last six months. Even if the buyer was considering tearing down the structure and buy only for the land. The assessment still gives a strong indication this is a good buy.
If you would like any further details on this property or other potential best buys please do not hesitate to call 503 475 6872, Abron Toure. Let me show you how this property or any other can be turned into a great opportunity.
Monday, November 23, 2009
Here's an update on the financial market for the week ending 11/20/09, courtesy of Alan Zukerkorn of Hawaii Mortgage Co, Inc.
Have a Happy Thanksgiving!
Mortgage Market News for the week ending November 20, 2009Distributed to over 12,000 Hawaii Subscribers Every Friday
Compliments of Alan Zukerkorn Hawaii Mortgage Company Inc.
PHONE:(808) 988-6622
FAX:(808) 988-7722
www.hawaiimortgage.net
alan@hawaiimortgage.net
Events This Week:
Inflation Low
Retail Sales Rose
Housing Starts Down
Manufacturing Mixed
Events Next Week:
Mon 11/23 Existing Sales 2-yr Auction
Tues 11/24 GDP FOMC Minutes 5-yr Auction
Wed 11/25 Durable Orders Core PCE 7-yr Auction
Bernanke Addresses Falling Dollar
A highly anticipated speech on Monday by Fed Chief Bernanke on the economic outlook revealed no change in the Fed's stance on short-term monetary policy. There were also few surprises in the economic data released during the week. The monthly inflation readings continued to show that inflation is not a cause for concern in the short-term. As a result, mortgage rates barely moved during the week, remaining at historically low levels.
The decline in the value of the dollar has received a great deal of attention lately. While Fed officials rarely discuss the value of the dollar, Bernanke assured investors that the Fed is closely watching exchange rates. However, he then reminded investors that the Fed's dual mandate is to promote full employment and to keep prices stable. According to Bernanke, the value of the dollar is just one of many factors affecting inflation, and the Fed is not concerned by the movement in the dollar so far. With a fragile economy and high unemployment rate, he suggested that the Fed intends to keep the fed funds rate at very low levels. Tightening monetary policy to strengthen the dollar would hurt the economic recovery and slow job creation. After the speech, the value of the dollar fell to the lowest level since August 2008.
If foreign investors expect the value of the dollar to continue to fall, it may pose a risk for mortgage rates in the future. Foreign investors historically have been major buyers of mortgage-backed securities (MBS). When the dollar falls, the value of US assets to foreign investors in their own currency declines, making US investments less rewarding. With the Fed scaling back its MBS purchases over the next few months, a drop in foreign demand would further pressure yields higher to fill the void left by the Fed.
Property Issues – Condos
Last week I addressed property issues primarily for Single Family Homes. This week we look at how issues with condos, could decide if you get financing or not.
Leasehold. There are still lots of rumors out there that financing is no longer available for leasehold properties. That is not true. The basic rules still apply. The lease has to extend 5 years past the length of the loan applied for. If you want a 30-Year Fixed loan, there has to be a minimum of 35 years remaining on the lease.
Owner-Occupancy. This is where the major changes to condo financing have taken place in the past couple of years. The simple guideline on occupancy is if the owner-occupancy is below 50%, you will not get a Fannie or Freddie loan. There are still portfolio products available for these scenarios. If your equity position is less than 20% and mortgage insurance is required, the owner-occupancy jumps up to 70%. Keep in mind that the formula used by most property management companies to determine owner-occupancy as disclosed on the condominium disclosure form is flawed. The rule for owner-occupancy is owner-occupants AND 2nd homes. Most property management companies determine owner-occupancy by tabulating the number of units in which the maintenance fee statements are sent to an address other than the subject property. They will consider all of these units investor properties. The best way to determine the number of investor properties is with the Resident Manager. They know exactly how many renters live in the complex.
Insurance. It is now a Fannie Mae requirement that condo owners carry contents insurance (an H-06 policy) in addition to the coverage carried by the association. If there were a fire, the association’s insurance will not cover appliances, cabinets, etc. This coverage is a good idea regardless of any lender’s requirements.
Also Notable:
October Core CPI inflation was a tame 1.7% higher than one year ago
October Housing Starts dropped 11% from September
The Treasury will auction a record $118 billion next week
The Fed purchased $16 billion in agency MBS during the week ending 11/18
Average 30 yr fixed rate:
Last week:
-0.02%
This week:
-0.02%
Stocks (weekly):
Dow:
10,300
-25
NASDAQ:
2,140
-20
Week Ahead
A wide range of economic data will be released during the holiday-shortened week ahead. Existing Home Sales will come out on Monday. GDP, Consumer Confidence, and the FOMC Minutes from the November 4th Fed meeting will be released on Tuesday. Durable Orders, Personal Income, Core PCE inflation, New Home Sales, and Consumer Sentiment will all be packed in on Wednesday. In addition, there will be Treasury auctions on Monday, Tuesday, and Wednesday. Mortgage markets will be closed on Thursday for Thanksgiving. Expect volatility on Friday, as most traders will be gone, making for a 4-day weekend.
Have a Happy Thanksgiving!
Mortgage Market News for the week ending November 20, 2009Distributed to over 12,000 Hawaii Subscribers Every Friday
Compliments of Alan Zukerkorn Hawaii Mortgage Company Inc.
PHONE:(808) 988-6622
FAX:(808) 988-7722
www.hawaiimortgage.net
alan@hawaiimortgage.net
Events This Week:
Inflation Low
Retail Sales Rose
Housing Starts Down
Manufacturing Mixed
Events Next Week:
Mon 11/23 Existing Sales 2-yr Auction
Tues 11/24 GDP FOMC Minutes 5-yr Auction
Wed 11/25 Durable Orders Core PCE 7-yr Auction
Bernanke Addresses Falling Dollar
A highly anticipated speech on Monday by Fed Chief Bernanke on the economic outlook revealed no change in the Fed's stance on short-term monetary policy. There were also few surprises in the economic data released during the week. The monthly inflation readings continued to show that inflation is not a cause for concern in the short-term. As a result, mortgage rates barely moved during the week, remaining at historically low levels.
The decline in the value of the dollar has received a great deal of attention lately. While Fed officials rarely discuss the value of the dollar, Bernanke assured investors that the Fed is closely watching exchange rates. However, he then reminded investors that the Fed's dual mandate is to promote full employment and to keep prices stable. According to Bernanke, the value of the dollar is just one of many factors affecting inflation, and the Fed is not concerned by the movement in the dollar so far. With a fragile economy and high unemployment rate, he suggested that the Fed intends to keep the fed funds rate at very low levels. Tightening monetary policy to strengthen the dollar would hurt the economic recovery and slow job creation. After the speech, the value of the dollar fell to the lowest level since August 2008.
If foreign investors expect the value of the dollar to continue to fall, it may pose a risk for mortgage rates in the future. Foreign investors historically have been major buyers of mortgage-backed securities (MBS). When the dollar falls, the value of US assets to foreign investors in their own currency declines, making US investments less rewarding. With the Fed scaling back its MBS purchases over the next few months, a drop in foreign demand would further pressure yields higher to fill the void left by the Fed.
Property Issues – Condos
Last week I addressed property issues primarily for Single Family Homes. This week we look at how issues with condos, could decide if you get financing or not.
Leasehold. There are still lots of rumors out there that financing is no longer available for leasehold properties. That is not true. The basic rules still apply. The lease has to extend 5 years past the length of the loan applied for. If you want a 30-Year Fixed loan, there has to be a minimum of 35 years remaining on the lease.
Owner-Occupancy. This is where the major changes to condo financing have taken place in the past couple of years. The simple guideline on occupancy is if the owner-occupancy is below 50%, you will not get a Fannie or Freddie loan. There are still portfolio products available for these scenarios. If your equity position is less than 20% and mortgage insurance is required, the owner-occupancy jumps up to 70%. Keep in mind that the formula used by most property management companies to determine owner-occupancy as disclosed on the condominium disclosure form is flawed. The rule for owner-occupancy is owner-occupants AND 2nd homes. Most property management companies determine owner-occupancy by tabulating the number of units in which the maintenance fee statements are sent to an address other than the subject property. They will consider all of these units investor properties. The best way to determine the number of investor properties is with the Resident Manager. They know exactly how many renters live in the complex.
Insurance. It is now a Fannie Mae requirement that condo owners carry contents insurance (an H-06 policy) in addition to the coverage carried by the association. If there were a fire, the association’s insurance will not cover appliances, cabinets, etc. This coverage is a good idea regardless of any lender’s requirements.
Also Notable:
October Core CPI inflation was a tame 1.7% higher than one year ago
October Housing Starts dropped 11% from September
The Treasury will auction a record $118 billion next week
The Fed purchased $16 billion in agency MBS during the week ending 11/18
Average 30 yr fixed rate:
Last week:
-0.02%
This week:
-0.02%
Stocks (weekly):
Dow:
10,300
-25
NASDAQ:
2,140
-20
Week Ahead
A wide range of economic data will be released during the holiday-shortened week ahead. Existing Home Sales will come out on Monday. GDP, Consumer Confidence, and the FOMC Minutes from the November 4th Fed meeting will be released on Tuesday. Durable Orders, Personal Income, Core PCE inflation, New Home Sales, and Consumer Sentiment will all be packed in on Wednesday. In addition, there will be Treasury auctions on Monday, Tuesday, and Wednesday. Mortgage markets will be closed on Thursday for Thanksgiving. Expect volatility on Friday, as most traders will be gone, making for a 4-day weekend.
Friday, November 20, 2009
Get Ready for YOUR New Home!!!
First Time Home Buyers: There are a few things that are extremely important to remember in buying your first home, once you are in escrow.
There will be a timeline that is generated, usually by the escrow company. These are deadlines that have to be met in order to keep to the purchase contract. Make sure your real estate agent is meeting the deadlines. Usually, the agent is very aware of the deadlines, but it’s always good for you to be aware too.
One of the items on the timeline is the home inspection. It is important to have a professional do this, someone who is knowledgeable about building structure, electrical wiring, plumbing, roofs, and all the many things that make up a house or condo property. It is important for YOU to be at that home inspection, so that you can ask the inspector questions about what you are seeing…
Another important date is the final walk through. This is usually done about five days before the closing of the property, just before the property becomes YOURS. If repairs had to be done, were they finished? Was there personal property that went with the home? Is it still there? Were there items that were supposed to have been removed from the property? Are they gone? If you are satisfied with the state of the property, you can be assured that it will be just that way when you take possession in a few days. If you are not satisfied, you will need to discuss with your agent what things still need to be done…
Buying a home for the first time is a huge undertaking, and can be scary. A good real estate agent can help you through the process, answering questions and helping to alleviate your fears. If you need a good agent, call me, and I can help you. Tiare Dutcher 808-753-5327.
There will be a timeline that is generated, usually by the escrow company. These are deadlines that have to be met in order to keep to the purchase contract. Make sure your real estate agent is meeting the deadlines. Usually, the agent is very aware of the deadlines, but it’s always good for you to be aware too.
One of the items on the timeline is the home inspection. It is important to have a professional do this, someone who is knowledgeable about building structure, electrical wiring, plumbing, roofs, and all the many things that make up a house or condo property. It is important for YOU to be at that home inspection, so that you can ask the inspector questions about what you are seeing…
Another important date is the final walk through. This is usually done about five days before the closing of the property, just before the property becomes YOURS. If repairs had to be done, were they finished? Was there personal property that went with the home? Is it still there? Were there items that were supposed to have been removed from the property? Are they gone? If you are satisfied with the state of the property, you can be assured that it will be just that way when you take possession in a few days. If you are not satisfied, you will need to discuss with your agent what things still need to be done…
Buying a home for the first time is a huge undertaking, and can be scary. A good real estate agent can help you through the process, answering questions and helping to alleviate your fears. If you need a good agent, call me, and I can help you. Tiare Dutcher 808-753-5327.
Wondering which direction are interest rates likely to move in the next year?
Guy Cecala, CEO of Inside Mortgage Finance believes:
The Federal Reserve launched a program to buy $1.45 trillion of mortgage securities this year, and it has helped to keep interest rates at—or near—historically low levels. But the money should be used up by the first quarter of next year. Interest rates are then likely to rise, possibly increasing to a full percentage point by the end of the year.
Federal Reserve Bank of St. Louis President James Bullard believes:
Past experience suggests policy makers may not start to raise interest rates until early 2012, while concern borrowing costs have stayed “too low for too long” may prompt an earlier move.
There are several different factors that drive the movement of interest rates. Activity in the purchase/sell of 10 year Treasury Bond, economic news such as unemployment, what the Federal Reserve Bank decides to do with the Fed Fund rate, and many other factors.
Which direction do you think mortgage rate will move?
- Linda Le, Loan Officer, Pacific Access Mortgage, 808-561-5943
The Federal Reserve launched a program to buy $1.45 trillion of mortgage securities this year, and it has helped to keep interest rates at—or near—historically low levels. But the money should be used up by the first quarter of next year. Interest rates are then likely to rise, possibly increasing to a full percentage point by the end of the year.
Federal Reserve Bank of St. Louis President James Bullard believes:
Past experience suggests policy makers may not start to raise interest rates until early 2012, while concern borrowing costs have stayed “too low for too long” may prompt an earlier move.
There are several different factors that drive the movement of interest rates. Activity in the purchase/sell of 10 year Treasury Bond, economic news such as unemployment, what the Federal Reserve Bank decides to do with the Fed Fund rate, and many other factors.
Which direction do you think mortgage rate will move?
- Linda Le, Loan Officer, Pacific Access Mortgage, 808-561-5943
Monday, November 16, 2009
Hawaii Real Estate Market at A Glance
In October, single family home listings were on the market an aveage of 52 days before received an accepted offer and going into escrow.
Condos were on the market for an average of 47 days before going into escrow.
This represents a very brisk market since 60 - 90 days represents a normal market demand.
One factor affecting this brisk market is the low inventory of homes and condos available.
In October, there were 1282 single family homes avaialble for sale. This is the lowest inventory since Sept of 2005. There were 1828 condos for sale. Thats the lowest inventory since Nov of 2005.
With these low inventories, it's imperative that home buyers have a Realtor to keep them abreast of properties that meet their needs when they come on the market since the demand is still very high, especially for homes in the $300K to $700K price range and condos in the $200K to $500K range. Homes and condos in these price ranges that are in above average condition generally received multiple offers.
If you're looking for a home in these price ranges and need assistance, call me at 351-1507.
Condos were on the market for an average of 47 days before going into escrow.
This represents a very brisk market since 60 - 90 days represents a normal market demand.
One factor affecting this brisk market is the low inventory of homes and condos available.
In October, there were 1282 single family homes avaialble for sale. This is the lowest inventory since Sept of 2005. There were 1828 condos for sale. Thats the lowest inventory since Nov of 2005.
With these low inventories, it's imperative that home buyers have a Realtor to keep them abreast of properties that meet their needs when they come on the market since the demand is still very high, especially for homes in the $300K to $700K price range and condos in the $200K to $500K range. Homes and condos in these price ranges that are in above average condition generally received multiple offers.
If you're looking for a home in these price ranges and need assistance, call me at 351-1507.
Friday, November 13, 2009
The Changing Landscape of Lending
Underwriting Guidelines have changed quite a bit and it keeps changing. A few of the major changes are Debt-to-Income Ratio, how long credit documents are good for, use of retirement, stock and bonds as assets, credit score minimum, and verification of employments.
Below is an example of how this will affect the borrower:
· Debt-to-Income Ratio – A Debt to Income Ratio is calculated based on the amount of gross income in relation to the amount of monthly debt obligation (credit card bill, car payment… etc). Previously lenders were allowed to go rather high on the ratio. Up to about 55% debt to income ratio. The new change is 45%. How will this affect the borrower? The borrower will be qualified for a lower loan amount.
· Credit documents – Credit documents such as the credit report will go from 120 days to 90 days. This means you’ll have to updated your information to the lender as it will only be good for 90 days.
· Assets – Lenders were able to use 100% of the fund in stock and mutual accounts and 70% for retirement fund. Now, they are only allowed to use 70% for stock and mutual fund accounts and 60% for retirement. If you are planning on using funds from either account to show proof that you have enough cash for closing cost, you’ll have to make sure that there is more than enough or cash out on it and transfer it to a savings account (which the lender can use 100% of the fund).
· Credit Score – Minimum credit score is 620. Make sure FICO scores are high. The higher the score the better.
· Verification of Employment – Make sure that there are no furloughs or projected furloughs (unless they have been account for at the beginning of the loan process). The stability of your job is very important so make sure everything stated on your loan application can be verified.
More changes will be announced in the next few months. For more information, please call Linda Le, Loan Officer at 808-561-5943 Stay tune for more…
Below is an example of how this will affect the borrower:
· Debt-to-Income Ratio – A Debt to Income Ratio is calculated based on the amount of gross income in relation to the amount of monthly debt obligation (credit card bill, car payment… etc). Previously lenders were allowed to go rather high on the ratio. Up to about 55% debt to income ratio. The new change is 45%. How will this affect the borrower? The borrower will be qualified for a lower loan amount.
· Credit documents – Credit documents such as the credit report will go from 120 days to 90 days. This means you’ll have to updated your information to the lender as it will only be good for 90 days.
· Assets – Lenders were able to use 100% of the fund in stock and mutual accounts and 70% for retirement fund. Now, they are only allowed to use 70% for stock and mutual fund accounts and 60% for retirement. If you are planning on using funds from either account to show proof that you have enough cash for closing cost, you’ll have to make sure that there is more than enough or cash out on it and transfer it to a savings account (which the lender can use 100% of the fund).
· Credit Score – Minimum credit score is 620. Make sure FICO scores are high. The higher the score the better.
· Verification of Employment – Make sure that there are no furloughs or projected furloughs (unless they have been account for at the beginning of the loan process). The stability of your job is very important so make sure everything stated on your loan application can be verified.
More changes will be announced in the next few months. For more information, please call Linda Le, Loan Officer at 808-561-5943 Stay tune for more…
Wednesday, November 11, 2009
The Tax Credit is Back!
First Time Home Buyers---it really is YOUR time to buy a home! And just to remind you that a first time home buyer is defined as not having owned a home for three years. So, if you’ve owned a home before, but have been renting for the past three or more years, you are considered a FIRST TIME home buyer!!
The deadline for the purchase of that home has now been extended, and expanded! You can still get that $8,000 tax credit if you close on your home by July 1, 2010. You must have an accepted contract on or before April 30, 2010. This gives you 61 days in which to close the contract. Not a lot of time in this day and age. Because of all the people who are trying to take advantage of this tax credit, the lenders, appraisers, and all the other people who need to process your transaction are overloaded.
Also, the income limits the new tax credit has placed on first time home buyers have been expanded. The limit was $75,000 for a single person, $150,000 for a married couple. That limit is now $125,000 for a single person, and $225,000 for a married couple.
In addition, where there was no restriction on the cost of that new home, now it cannot be greater than $800,000.
So, first time home buyers, get out there and find a property. I would love to help you find something. Please call me. Tiare Dutcher 808-753-5327.
The deadline for the purchase of that home has now been extended, and expanded! You can still get that $8,000 tax credit if you close on your home by July 1, 2010. You must have an accepted contract on or before April 30, 2010. This gives you 61 days in which to close the contract. Not a lot of time in this day and age. Because of all the people who are trying to take advantage of this tax credit, the lenders, appraisers, and all the other people who need to process your transaction are overloaded.
Also, the income limits the new tax credit has placed on first time home buyers have been expanded. The limit was $75,000 for a single person, $150,000 for a married couple. That limit is now $125,000 for a single person, and $225,000 for a married couple.
In addition, where there was no restriction on the cost of that new home, now it cannot be greater than $800,000.
So, first time home buyers, get out there and find a property. I would love to help you find something. Please call me. Tiare Dutcher 808-753-5327.
Tuesday, November 10, 2009
Uncovering a Best Buy Property!
There are number of ways to determine if a property is a best buy. As previously mentioned there are three popular approaches: 1.) for investors, rental property that yields a positive cash flow with minimal down payment. 2.) Property where the asking price is substantially below like kind homes that have sold within the last six months. 3.) Property where the quality or condition is above average, in a highly sought after area, in a neighborhood where the inventory for sale is relatively nonexistent and are selling at or below market value.The following is an example of the first approach. In Waikiki, Oahu there is a unique category of property called condo-hotels. These are hotels where the rooms in most cases are privately owned and leased back to the hotel or to a management company. However, some find it more profitable to manage the units themselves. Some of the more affordable and attractive buys are studio or one bed room units that have full kitchens.
In today’s market condo-hotels have unique financing issues. Due to various stigmas associated with transients and other uncertainties banks are reluctant to provide financing. As a result the prices for these types of purchases have dropped considerably. So in order to get into this lucrative market cash offers and seller financing is the order of the day. For those individuals who are able to maneuver in these waters it can be very rewarding. If you are interested in learning more about this unique market please feel free to contact Abron Toure at the Coldwell Banker, Waikiki Office my cell is 503 475 6872. Mahalo!
In today’s market condo-hotels have unique financing issues. Due to various stigmas associated with transients and other uncertainties banks are reluctant to provide financing. As a result the prices for these types of purchases have dropped considerably. So in order to get into this lucrative market cash offers and seller financing is the order of the day. For those individuals who are able to maneuver in these waters it can be very rewarding. If you are interested in learning more about this unique market please feel free to contact Abron Toure at the Coldwell Banker, Waikiki Office my cell is 503 475 6872. Mahalo!
Monday, November 9, 2009
Hawaii Real Estate Market Update
This past week was a good one for Hawaii real estate news.
The October Statistical Report showed the following positive factors for Oahu's real estate market:
281 Single Family Homes sold. This is up from 243 last October. This is the second consecutive month that home sales have improved vs prior year.
381 Condos sold. This is up from 316 last October. This is the third consecutive month that condo sales have improved vs prior year. This indicates a trend.
The median sales price for single family homes was $605,000. This was 15.6% under prior year's median price of $625,000.
The median sales price for condos was $295,000. This was 9.2% below prior year!
While unit sales out pace prior year, median sales prices are still going down and haven't quite levelled off yet. These indicators verify that this continues to be an EXCELLENT time for QUALIFIED BUYERS to purchase a home.
This along with the extension of the First Time Home Buyer credit to April and the expansion to include home owners that have lived in their homes for 5 of the past 7 years who are purchasing a home, adds more potential Buyers to the mix. This will create more impetus to positively effect the recovery of the residential real estate market.
If you're ready to take advantage of the new Extended and Expanded Home Buyer Tax Credit Program call Dwight Ellis at 808 351-1507.
Next week we'll discuss Days on Market, Months of Remaining Inventory and Neighborhoods to watch.
The October Statistical Report showed the following positive factors for Oahu's real estate market:
281 Single Family Homes sold. This is up from 243 last October. This is the second consecutive month that home sales have improved vs prior year.
381 Condos sold. This is up from 316 last October. This is the third consecutive month that condo sales have improved vs prior year. This indicates a trend.
The median sales price for single family homes was $605,000. This was 15.6% under prior year's median price of $625,000.
The median sales price for condos was $295,000. This was 9.2% below prior year!
While unit sales out pace prior year, median sales prices are still going down and haven't quite levelled off yet. These indicators verify that this continues to be an EXCELLENT time for QUALIFIED BUYERS to purchase a home.
This along with the extension of the First Time Home Buyer credit to April and the expansion to include home owners that have lived in their homes for 5 of the past 7 years who are purchasing a home, adds more potential Buyers to the mix. This will create more impetus to positively effect the recovery of the residential real estate market.
If you're ready to take advantage of the new Extended and Expanded Home Buyer Tax Credit Program call Dwight Ellis at 808 351-1507.
Next week we'll discuss Days on Market, Months of Remaining Inventory and Neighborhoods to watch.
Friday, November 6, 2009
Luxury & Lifestyle on Oahu!!
In past blogs I’ve discussed the value in today’s luxury market in Hawaii and the quality of architecture and design found in Hawaii’s luxury real estate market. But good values and quality can be found all over around the world. It’s the lifestyle that attracts the wealthy to Hawaii. With well over 30 Beach Parks, the island of Oahu is surrounded by some of the cleanest, whitest sand beaches in the world as well as exceptionally warm, clear, blue water. Along with a temperate climate year round Oahu is the perfect place to enjoy paddle boarding, surfing, kayaking, or outrigger canoeing. With as much beach frontage as Oahu offers it’s easy to find quiet secluded beaches. Oahu is also privileged enough to be the home of Lanikai Beach which is annually ranked as one of the best beaches in the world.
Oahu also boasts some of the best golfing in the world with almost 40 golf courses across the island, with 4 private courses and 22 semi-private courses. There are also approximately 10 Country Clubs on the island of Oahu providing the perfect atmosphere for that business lunch or cold drink after a round of golf.
It’s no secret that Oahu also offers some of the finest dining, from George Mavrothalassitis to Sam Choy, Alan Wong, and a host of others to world renowned shopping in Waikiki and Ala Moana Mall.
With the perfect weather, access to almost any activity, and good food, Honolulu is ranked in the top 3 healthiest cities in the U.S. by SELF Magazine, AARP Magazine, and Men’s Fitness Magazine.
Oahu offers luxury properties in all areas of the island so you’re sure to find the perfect luxury property that easily allows for the perfect luxury lifestyle.
Call Mandy Berner, RA 808-286-5845
Oahu also boasts some of the best golfing in the world with almost 40 golf courses across the island, with 4 private courses and 22 semi-private courses. There are also approximately 10 Country Clubs on the island of Oahu providing the perfect atmosphere for that business lunch or cold drink after a round of golf.
It’s no secret that Oahu also offers some of the finest dining, from George Mavrothalassitis to Sam Choy, Alan Wong, and a host of others to world renowned shopping in Waikiki and Ala Moana Mall.
With the perfect weather, access to almost any activity, and good food, Honolulu is ranked in the top 3 healthiest cities in the U.S. by SELF Magazine, AARP Magazine, and Men’s Fitness Magazine.
Oahu offers luxury properties in all areas of the island so you’re sure to find the perfect luxury property that easily allows for the perfect luxury lifestyle.
Call Mandy Berner, RA 808-286-5845
Wednesday, November 4, 2009
Still Waiting to Buy?
First Time Home Buyers: If you haven’t already purchased your home, for one of these reasons…
you needed to improve your credit,
you just couldn’t find that home,
you needed to save a little more money for your closing costs
you may in luck, as far as the $8,000 first time home buyer credit goes…. The deadline of December 1 may be extended to April 30, 2010. Hopefully, we will find out sometime this week.
AND for those of you who aren’t first time home buyers, you may also be in luck with a tax credit of $6,500. The criteria if the bill is passed is as follows:
Did you purchase your home more than 5 years ago?
Are you living in that home?
Do you want to buy a more expensive home now?
Stay tuned for more information on the always exciting what’s-going-on-in-the-world-of-real-estate-news…. Or call Tiare Dutcher at 808-753-5327.
you needed to improve your credit,
you just couldn’t find that home,
you needed to save a little more money for your closing costs
you may in luck, as far as the $8,000 first time home buyer credit goes…. The deadline of December 1 may be extended to April 30, 2010. Hopefully, we will find out sometime this week.
AND for those of you who aren’t first time home buyers, you may also be in luck with a tax credit of $6,500. The criteria if the bill is passed is as follows:
Did you purchase your home more than 5 years ago?
Are you living in that home?
Do you want to buy a more expensive home now?
Stay tuned for more information on the always exciting what’s-going-on-in-the-world-of-real-estate-news…. Or call Tiare Dutcher at 808-753-5327.
Monday, November 2, 2009
Where will rates go?
Here is some timely mortgage info that may be of interest regarding the Treasury Auctions and the possible lack of demand for long term securities in the future having a negative impact on low interest rates.
Also, an interesting explanation of how Rate Locks work for Alan Zukerkorn of Hawaii Mortgage Co, Inc.
Subject: Newsletter for the Week Ending 10/30/09
Mortgage Market News for the week ending October 30, 2009Distributed to over 12,000 Hawaii Subscribers Every Friday
Compliments of Alan Zukerkorn Hawaii Mortgage Company Inc.
PHONE:(808) 988-6622
FAX:(808) 988-7722
www.hawaiimortgage.net
alan@hawaiimortgage.net
Events This Week:
GDP Increased
Inflation Steady
New Home Sales Down
Manufacturing Rose
Events Next Week:
Mon 11/2 ISM Manuf Pending Sales
Wed 11/4 Fed Meeting Treasury Announce ISM Services
Thur 11/5 Productivity
Fri 11/6 Employment
Record Auctions Produce Mixed Results
While daily volatility was high this week, mortgage rates ended just slightly lower than last week. The primary factors influencing mortgage rates were offsetting. The economic growth data released this week was stronger than expected, but inflation remained low. While the first two Treasury auctions produced impressive results, the final one was relatively weak.
Demand was extremely strong for this week's 2-yr and 5-yr Treasury auctions, but it slacked off considerably for the 7-yr securities. When demand is low, higher yields are required to attract investors. I n addition, the Treasury is interested in shifting its issuance toward a greater percentage of longer-term securities relative to shorter-term securities to lock in currently low rates. For mortgage markets, though, a move in this direction would add to the supply of competing investments. The Fed is already in the process of winding down its purchases of mortgage-backed securities, removing demand from the market. Higher supply of long-term investments and lower demand would pressure mortgage rates higher.
Government influence on mortgage markets has been substantial. It has pushed mortgage rates to historically low levels and has made credit available where it might not be otherwise. Two important programs, the first-time homebuyer tax credit and the extended conforming loan limits, were set to expire soon. Fortunately, both programs received strong support from lawmakers this week and are likely to be extended.
Rate Lock 101
For the consumer, the interest rate for one’s loan is generally the single most important part of the loan scenario. At some point in the process, your rate must be locked in for a set period of time. This time period is known as the “Rate Lock Commitment Period”. A rate can be locked for as little as 7 days, and in some cases as long as 120 days. Once a consumer accepts a desired rate at a certain cost (points or no points), their interest rate is then locked for a specific number of days.
What is a rate lock? This question seems redundant after the simple explanation above, but I will try and make it very clear. A rate lock is a commitment for and between the lender AND borrower. Every time I talk to a consumer about locking in their rate I always get asked the same question: “Will the lender lower my rate during the rate lock period if rates drop?” I always reply with a smile and ask the question “Should the lender raise your rate during the rate lock period if rates rise?” A rate lock commitment is not a one way street. Most consumers incorrectly assume that a rate lock commitment is a lock against rates getting any higher than the rate committed to. It is not!
When a consumer has their loan rate locked, it sets off a chain of events. The lender makes a commitment to the investor that will eventually own your loan (the secondary market, i.e. Fannie Mae or Freddie Mac) - committing themselves to deliver a loan that meets underwriting guidelines in a specific period of time at a specific interest. In other words, your rate lock is connected from you all the way to Fannie and Freddie. If the lender fails to deliver the loan to the secondary Market on time, they get penalized a percentage of the loan amount. That is why if your loan does not close within your rate lock period, the lender will charge you an extension fee to cover the cost of late delivery to the investor.
Next week I will dive deeper into the issues of bogus rate locks, who should pay for a lock extension if one is needed, and what happened to the “free float down”.
Also Notable:
Continuing Jobless Claims fell to 5.8 million, the lowest level since March
The September Core PCE inflation index rose at a tame 1.3% annual rate
The Chicago PMI manufacturing index rose to the highest level in one year
The Fed purchased $18 billion in agency MBS during the week ending 10/28
Average 30 yr fixed rate:
Last week:
+0.01%
This week:
-0.05%
Stocks (weekly):
Dow:
9,800
-200
NASDAQ:
2,060
-100
Week Ahead
The biggest economic event next week will be the Fed meeting on Wednesday. While no change in rates is expected, the Fed may indicate future changes in monetary policy. The important Employment report will come out on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Early estimates are for a loss of about 165K jobs in October. In addition, the ISM Manufacturing index and Pending Home Sales will come out on Monday. ISM Services will be released on Wednesday. Productivity, Construction Spending, and Factory Orders will round out the busy schedule. The Treasury will announce the size of upcoming auctions on Wednesday as well.
All material Copyright © Hawaii Mortgage Company, Inc. & Ress No. 1, LTD and may not be reproduced without permission.
Also, an interesting explanation of how Rate Locks work for Alan Zukerkorn of Hawaii Mortgage Co, Inc.
Subject: Newsletter for the Week Ending 10/30/09
Mortgage Market News for the week ending October 30, 2009Distributed to over 12,000 Hawaii Subscribers Every Friday
Compliments of Alan Zukerkorn Hawaii Mortgage Company Inc.
PHONE:(808) 988-6622
FAX:(808) 988-7722
www.hawaiimortgage.net
alan@hawaiimortgage.net
Events This Week:
GDP Increased
Inflation Steady
New Home Sales Down
Manufacturing Rose
Events Next Week:
Mon 11/2 ISM Manuf Pending Sales
Wed 11/4 Fed Meeting Treasury Announce ISM Services
Thur 11/5 Productivity
Fri 11/6 Employment
Record Auctions Produce Mixed Results
While daily volatility was high this week, mortgage rates ended just slightly lower than last week. The primary factors influencing mortgage rates were offsetting. The economic growth data released this week was stronger than expected, but inflation remained low. While the first two Treasury auctions produced impressive results, the final one was relatively weak.
Demand was extremely strong for this week's 2-yr and 5-yr Treasury auctions, but it slacked off considerably for the 7-yr securities. When demand is low, higher yields are required to attract investors. I n addition, the Treasury is interested in shifting its issuance toward a greater percentage of longer-term securities relative to shorter-term securities to lock in currently low rates. For mortgage markets, though, a move in this direction would add to the supply of competing investments. The Fed is already in the process of winding down its purchases of mortgage-backed securities, removing demand from the market. Higher supply of long-term investments and lower demand would pressure mortgage rates higher.
Government influence on mortgage markets has been substantial. It has pushed mortgage rates to historically low levels and has made credit available where it might not be otherwise. Two important programs, the first-time homebuyer tax credit and the extended conforming loan limits, were set to expire soon. Fortunately, both programs received strong support from lawmakers this week and are likely to be extended.
Rate Lock 101
For the consumer, the interest rate for one’s loan is generally the single most important part of the loan scenario. At some point in the process, your rate must be locked in for a set period of time. This time period is known as the “Rate Lock Commitment Period”. A rate can be locked for as little as 7 days, and in some cases as long as 120 days. Once a consumer accepts a desired rate at a certain cost (points or no points), their interest rate is then locked for a specific number of days.
What is a rate lock? This question seems redundant after the simple explanation above, but I will try and make it very clear. A rate lock is a commitment for and between the lender AND borrower. Every time I talk to a consumer about locking in their rate I always get asked the same question: “Will the lender lower my rate during the rate lock period if rates drop?” I always reply with a smile and ask the question “Should the lender raise your rate during the rate lock period if rates rise?” A rate lock commitment is not a one way street. Most consumers incorrectly assume that a rate lock commitment is a lock against rates getting any higher than the rate committed to. It is not!
When a consumer has their loan rate locked, it sets off a chain of events. The lender makes a commitment to the investor that will eventually own your loan (the secondary market, i.e. Fannie Mae or Freddie Mac) - committing themselves to deliver a loan that meets underwriting guidelines in a specific period of time at a specific interest. In other words, your rate lock is connected from you all the way to Fannie and Freddie. If the lender fails to deliver the loan to the secondary Market on time, they get penalized a percentage of the loan amount. That is why if your loan does not close within your rate lock period, the lender will charge you an extension fee to cover the cost of late delivery to the investor.
Next week I will dive deeper into the issues of bogus rate locks, who should pay for a lock extension if one is needed, and what happened to the “free float down”.
Also Notable:
Continuing Jobless Claims fell to 5.8 million, the lowest level since March
The September Core PCE inflation index rose at a tame 1.3% annual rate
The Chicago PMI manufacturing index rose to the highest level in one year
The Fed purchased $18 billion in agency MBS during the week ending 10/28
Average 30 yr fixed rate:
Last week:
+0.01%
This week:
-0.05%
Stocks (weekly):
Dow:
9,800
-200
NASDAQ:
2,060
-100
Week Ahead
The biggest economic event next week will be the Fed meeting on Wednesday. While no change in rates is expected, the Fed may indicate future changes in monetary policy. The important Employment report will come out on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Early estimates are for a loss of about 165K jobs in October. In addition, the ISM Manufacturing index and Pending Home Sales will come out on Monday. ISM Services will be released on Wednesday. Productivity, Construction Spending, and Factory Orders will round out the busy schedule. The Treasury will announce the size of upcoming auctions on Wednesday as well.
All material Copyright © Hawaii Mortgage Company, Inc. & Ress No. 1, LTD and may not be reproduced without permission.
Thursday, October 29, 2009
Buying Your First Home
First Time Home Buyers: Here are a few more things to think about before you start to buy a home….
You’ve checked your credit. You’ve found a loan company you are comfortable with, and you know how much loan you qualify for. You’ve found a great agent to work with you.
What area do you want to live in? Do you want a house or a condo? Can you afford a house this first time, or will you need to buy a condo at first, then a house in a few years? How many bedrooms do you need? How many can you afford? Can you afford as much condo or house now as you want, or will you need something smaller at first, then bigger in a few years?
These are a few questions that your agent will need to know, so that he or she can find that property that is right for you. You can help your agent look for those properties by going online and looking at different sites like www.coldwellbankerpacific.com or www.hicentral.com.
I can help you find that home you are looking for. Just call Tiare Dutcher at 808-753-5327.
You’ve checked your credit. You’ve found a loan company you are comfortable with, and you know how much loan you qualify for. You’ve found a great agent to work with you.
What area do you want to live in? Do you want a house or a condo? Can you afford a house this first time, or will you need to buy a condo at first, then a house in a few years? How many bedrooms do you need? How many can you afford? Can you afford as much condo or house now as you want, or will you need something smaller at first, then bigger in a few years?
These are a few questions that your agent will need to know, so that he or she can find that property that is right for you. You can help your agent look for those properties by going online and looking at different sites like www.coldwellbankerpacific.com or www.hicentral.com.
I can help you find that home you are looking for. Just call Tiare Dutcher at 808-753-5327.
Tuesday, October 27, 2009
Real Estate Agents Finding you a Best Buy!
In previous blog spots we have discussed the three different ways to identify “Best Buys”.
1.) Investors who purchase a property with 30 to 40% down and the monthly rent minus all expenses yields a positive cash flow. The larger the positive cash flow the better.
2.) Then there are those properties of equal value and quality where the list price is significantly below the sales price for most recently sold of like kind.
3.) We also discussed those properties in highly sought after areas where inventory is scares or availability is rare; and when a property becomes available it is price aggressively to sell.
Now we want to propose another condition for “Best Buy”, this has to do with the skill of the real estate agent. There are cases where the experience and knowledge of the real estate agent can turn what is not an obvious best buy into a great buy. It is the ability of the agent to negotiate and filter accurate information to resolve complicated issues that can prove invaluable to the client turning what would be an unattractive buy because of problems at first glance seeming very difficult to solve into winners. The cases that come to mind are:
1.) Zoning Issues
2.) Foreclosures
3.) Short Sales
4.) Fixer Uppers
If you are a seller or a buyer where any of the four above may apply please do not hesitate to call 503 475 6872, Abron Toure. Let me show you how these issues can be turned into a win-win for buyer or seller.
1.) Investors who purchase a property with 30 to 40% down and the monthly rent minus all expenses yields a positive cash flow. The larger the positive cash flow the better.
2.) Then there are those properties of equal value and quality where the list price is significantly below the sales price for most recently sold of like kind.
3.) We also discussed those properties in highly sought after areas where inventory is scares or availability is rare; and when a property becomes available it is price aggressively to sell.
Now we want to propose another condition for “Best Buy”, this has to do with the skill of the real estate agent. There are cases where the experience and knowledge of the real estate agent can turn what is not an obvious best buy into a great buy. It is the ability of the agent to negotiate and filter accurate information to resolve complicated issues that can prove invaluable to the client turning what would be an unattractive buy because of problems at first glance seeming very difficult to solve into winners. The cases that come to mind are:
1.) Zoning Issues
2.) Foreclosures
3.) Short Sales
4.) Fixer Uppers
If you are a seller or a buyer where any of the four above may apply please do not hesitate to call 503 475 6872, Abron Toure. Let me show you how these issues can be turned into a win-win for buyer or seller.
Monday, October 26, 2009
Why Is This Still a Good Time to Buy Real Estate?
Even though it may be too late to take advantage of the First Time Home Buyer $8000 Tax Credit Program, if you aren't already in escrow, it's still a very good time to buy for other reasons.
1. Property prices are the lowest they've been since the peak of the market in 2007. Inventory levels dropped to 1998 levels early in 2009, but they've begun to improve to levels in 2000. This has caused prices to slow down in the rate of decrease. While prices are still decreasing, it's at a much lower rate than previously.
As an example, single family home median prices year to date are down 16.2% vs prior year. However, in Sept, they were down only 8%. Condo prices are down 10.8% year to date, but in September, they were down only 7.7%. This would indicate that there isn't a significant advantage to getting a much lower price by waiting.
2. Interest rates are still under 5%. This may not last much longer since the Fed is planning a slowdown in the level of purchasing mortgage backed securities (MBS) until the program ends early next year. These purchases have been artificially keeping interest rates down. Interest rates will begin to rise once this program begins cutting back and eventually end.
3. With the artificially low interest rates, buyers experience increased PURCHASING POWER. This will decrease when interest rates begin to rise.
4. FHA loans are still available with as little as 3.5% down. Down payments have the flexibility of being provided by other than the Buyer's resources. (ie, the use of gifted funds, etc.) Current discussions are in progress about increasing the minimum down payment for this program.
5. The eventual appreciation in value and the advantage of interest deductions on taxes are other POSITIVE factors that make this still a good time for purchasing real estate.
For assistance in finding your new home, contact Dwight Ellis at 808 351-1507 for a free HOME BUYER consultation!
1. Property prices are the lowest they've been since the peak of the market in 2007. Inventory levels dropped to 1998 levels early in 2009, but they've begun to improve to levels in 2000. This has caused prices to slow down in the rate of decrease. While prices are still decreasing, it's at a much lower rate than previously.
As an example, single family home median prices year to date are down 16.2% vs prior year. However, in Sept, they were down only 8%. Condo prices are down 10.8% year to date, but in September, they were down only 7.7%. This would indicate that there isn't a significant advantage to getting a much lower price by waiting.
2. Interest rates are still under 5%. This may not last much longer since the Fed is planning a slowdown in the level of purchasing mortgage backed securities (MBS) until the program ends early next year. These purchases have been artificially keeping interest rates down. Interest rates will begin to rise once this program begins cutting back and eventually end.
3. With the artificially low interest rates, buyers experience increased PURCHASING POWER. This will decrease when interest rates begin to rise.
4. FHA loans are still available with as little as 3.5% down. Down payments have the flexibility of being provided by other than the Buyer's resources. (ie, the use of gifted funds, etc.) Current discussions are in progress about increasing the minimum down payment for this program.
5. The eventual appreciation in value and the advantage of interest deductions on taxes are other POSITIVE factors that make this still a good time for purchasing real estate.
For assistance in finding your new home, contact Dwight Ellis at 808 351-1507 for a free HOME BUYER consultation!
Friday, October 23, 2009
TRUMP INTERNATIONAL TOWER & HOTEL
The first ultra-luxury hotel-condominium property to be built in Waikiki in 25 years is scheduled to be open November 1st, 2009. The Trump International Tower & Hotel Waikiki Beach Walk offers it all. Located in the recently redeveloped Beach Walk area of Waikiki this luxurious condominium offers convenience to the best shops, restaurants, and entertainment as well as some of the best views on the island. But what makes this property special and truly luxurious is the lifestyle that it offers. Trump Tower offers everything from 24 hour concierge, 24 hour in-room dining, to valet parking, full service spa, contemporary fitness center and more.
Trump Tower offers studios, 1 bedrooms, 1 bedrooms + dens, 2 bedrooms, 2 bedroom + dens, & 3 bedrooms $551,000 to $4,900,000. The units range from 350 sq. ft. to 3,000 sq. ft. and prices range from The units themselves offer beautifully refined interior designs of natural stone, hand-crafted millwork, and top of the line stainless steel appliances.
In November 2006, 462 units were pre-sold in one day for a total of $700 million, possibly the fastest real estate sale in history. If you missed out in 2006, call Mandy now for your opportunity to own in the world renowned Trump Tower in Waikiki… Mandy Berner, RA 808-286-5845.
Trump Tower offers studios, 1 bedrooms, 1 bedrooms + dens, 2 bedrooms, 2 bedroom + dens, & 3 bedrooms $551,000 to $4,900,000. The units range from 350 sq. ft. to 3,000 sq. ft. and prices range from The units themselves offer beautifully refined interior designs of natural stone, hand-crafted millwork, and top of the line stainless steel appliances.
In November 2006, 462 units were pre-sold in one day for a total of $700 million, possibly the fastest real estate sale in history. If you missed out in 2006, call Mandy now for your opportunity to own in the world renowned Trump Tower in Waikiki… Mandy Berner, RA 808-286-5845.
Thursday, October 22, 2009
Why do Loan Officers Ask For So Much Paperwork?
Loan officers ask for way too many paperwork and they have borrowers sign way too many documents! The standard financial paperwork that a loan officer will ask for are:
Most current two years federal tax returns (Year To Date Profit and Loss Statement for self-employed)
Most current one full month of paystub(s)
W-2 statements for the past two years
Most current 2 months (reflecting a 30 day history) bank statement
Once those documents are submitted to the loan officer they will review the documents and determine whether or not more documentation is needed. Here are some examples of when a loan officer will ask for more documents:
· The bank statement shows a large deposit that is not the normal amount of your deposits. Where did that money come from? Or the total balance is less than what you need for closing cost.
· Tax returns show that you have a small partnership in another company or have a second business that was not documented in the loan application because it’s just “play” money and “not that important”. If it shows anywhere on any of the documents provided, lenders will ask for more information regarding it.
There are more situations that may occur where your loan officer will ask for more documents. Trust me when I tell you that we really don’t want to ask for it but it’s a must to ensure proper documentation and due diligence.
– Linda Le, 808-561-5943, Loan Officer, Pacific Access Mortgage
Most current two years federal tax returns (Year To Date Profit and Loss Statement for self-employed)
Most current one full month of paystub(s)
W-2 statements for the past two years
Most current 2 months (reflecting a 30 day history) bank statement
Once those documents are submitted to the loan officer they will review the documents and determine whether or not more documentation is needed. Here are some examples of when a loan officer will ask for more documents:
· The bank statement shows a large deposit that is not the normal amount of your deposits. Where did that money come from? Or the total balance is less than what you need for closing cost.
· Tax returns show that you have a small partnership in another company or have a second business that was not documented in the loan application because it’s just “play” money and “not that important”. If it shows anywhere on any of the documents provided, lenders will ask for more information regarding it.
There are more situations that may occur where your loan officer will ask for more documents. Trust me when I tell you that we really don’t want to ask for it but it’s a must to ensure proper documentation and due diligence.
– Linda Le, 808-561-5943, Loan Officer, Pacific Access Mortgage
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