Every now and than people suprise you...

Sometimes when your hitting the grind day in and day out, the constant push to strive and do better, to stay ahead of the curve, to drowned out the distractions and competition can get discouraging. When I opened my LinkedIn account today I received a great surprise that puts my work into perspective, I hope this is how all my clients and friends see me...

"Parker is very detailed oriented and always has his clients best interest at heart. Even when things in the real estate industry ran into tough times, Parker was still doing what was right for his clients and not just his pocket book. He not only did well in business but also did some of his best business ever during this time due to this fact. Parker is always staying up to date with industry changes and is truly an expert in Real Estate. I would highly recommend him for any of your Real Estate needs and would trust his advice explicitly." - Ben Wadsworth

Thanks Buddy, Thank you very much. I only hope I can continue to be worthy of such admiration.

More Owners Optimistic About Home Values

The number of home owners who fear the value of their homes will fall in the next year declined to 15 percent in January, the lowest level since early 2007, according to a Thomson Reuters/University of Michigan survey published last week.

That’s a big improvement over the first quarter of 2009, when 26 percent expected the value of their homes to decline.

Home owners were less optimistic about gains in the value of their homes, with the average anticipated annual gain holding steady at 2.7 percent in January.

In January, 46 percent said the value of their homes decreased in the past year, while 14 percent said the value had increased.

Source: Reuters News, Julie Haviv (02/05/2010)

Are Interest Rates About to Rise?

Federal Reserve Bank of New York President William Dudley says the central bank will scale back its purchases of mortgage-backed securities late next month. While interest rates likely will climb when the program ceases, the extent of the rise remains to be seen.

Dudley says the Fed will act if rates spike too much. Still, analysts worry that the end of the MBA purchase program and expiration of the home-buyer tax credit, along with higher premiums and tighter underwriting of FHA mortgages, will work together to stifle home sales and price stabilization in the coming months.

Source: Inman News (02/08/10)

4 Reasons to Sell Now

Selling a property in this tough market can seem like a challenge. Here are four factors that actually make this a good time to post a For-Sale sign.

• Sell low and buy low. Because all property values are down, the loss on the property a home owner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he’ll be in better shape.
• Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time home buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.
• Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
• Good help is available. Really talented real estate practitioners, contractors, and designers are available and eager for business.

Source: McClatchy Tribune, Kate Forgach (02/07/2010)

Mortgage Applications Jump Last Week

Mortgage Applications Jump Last Week

Mortgage applications shot up 21 percent last week compared to the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association. On an unadjusted basis, applications rose 23.5 percent.

The unadjusted purchase index increased 17.5 percent compared with the previous week, but was down 11.2 percent from the same week a year ago.

“Mortgage application volume rebounded last week, returning the purchase and refinance indexes to levels from mid-December,” said Michael Fratantoni, MBA’s Vice President of Research and Economics.

"Rates continue to hover around 5 percent, quite low by historical standards, but are well above the record lows seen in 2009, and hence are not generating substantial refi volume," Fratantoni said. "We expect that rates will rise over the next few months as the Federal Reserve winds down its MBS purchase program, and this will likely lead to a decline in refinance volume."

Here are the average contract interest rate changes:

• 30-year fixed-rate mortgages decreased to 5.01 percent from 5.02 percent.
• 15-year fixed-rate mortgages decreased to 4.33 percent from 4.34 percent.
• 1-year ARMs decreased to 6.70 percent from 6.84 percent.

Source: Mortgage Bankers Association (02/03/2010)

QUIZ: Real Estate Investment

QUIZ: Real Estate Investment
To be a savvy real estate investor you must be able to understand market conditions, assess how much time and money it'll take to rehab properties, and know how to deal with tenants and building maintenance. It’s not easy, but it can be highly profitable if you know what you’re doing. 1. Before you invest in real estate, you should: Look at sales activity and home prices of neighborhoods in which you'd like to invest. Examine market data over the past several years to look for trends Consider the number of single-family homes versus multifamily properties in the neighborhood and find out which way development is trending Compute the ratio of tenant-occupied and owner-occupied properties, and try to decipher a trend All of the above 2. You invest in single-family houses that you rehab and resell, usually within six months. Your goal is a 15 percent profit. You've had your eye on one fixer-upper, and when it finally goes on the market, you jump. Unfortunately, so do three other people, driving up the price beyond what you expected to pay. Should you: Pay as much as it takes to get the property. If so many other investors are interested, it's probably worth it Gauge the market, along with the potential costs and time to make repairs, to determine whether a higher price is warranted Forget about it; it's not worth the trouble. It's better to find properties that no one else wants 3. Once you've identified a single-family investment property that you're interested in buying for investment, you should: Visually inspect the property yourself to ensure it's structurally sound Bring in a qualified home inspector for an inspection Go beyond the standard home inspection 4. Five real estate investment "tools" that can lead you to wealth are: Cash flow, amortization, leverage, appreciation, and the tax advantages of real estate investing Market knowledge, return on investment, nice tenants, cyclical markets, and negotiating skill Life, liberty, comedy, tragedy, and the pursuit of happiness 5. You're investing in a market that has cooled off. Your best strategy might be to: Stop looking for investments until the market turns up again Look for investments that you can buy, hold, and rent out until the market turns up again Get a warm parka 6. With a lease-option arrangement you: Negotiate a long-term commitment with a property owner for a low monthly rent that allows you to sublease to a tenant and gives you or the tenant the right to purchase at any time Have the opportunity to build equity in a property through lease payments before you formally buy the property Make an agreement with tenants to lease part of a property you own with an option of adding space in the future The first two answer choices None of the above 7. A 203(k) is: A federal tax-deferred savings plan that can be used for making real estate investments An FHA mortgage insurance program that allows the cost of rehabilitation on a home to be built into the mortgage The portion of the federal tax code that covers real estate depreciation

Pending Home Sales Stabilize

This article is sort of long but totally worth it!

Pending Home Sales Stabilize

Pending home sales have leveled from a market swing driven by response to the home buyer tax credit, according to the NATIONAL ASSOCIATION OF REALTORS®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in December, increased 1 percent to 96.6 from 95.6 in November, and remains 10.9 percent above December 2008 when it was 87.1.

In November, the monthly index had fallen by 16.4 percent from surging activity in preceding months.

Lawrence Yun , NAR chief economist, says it’s important to recognize how the tax credit is skewing market data.

“There are easily understood swings in contract activity as buyers respond to a tax credit that was expiring and was then extended and expanded,” he says. “These swings are masking the underlying trend, which is a broad improvement over year-ago levels."

December activity was the fifth highest monthly tally in two years.

The Tax Credit Impact

Buyers who have a contract in place to purchase a primary residence by April 30, 2010, have until June 30, 2010, to finalize the transaction to qualify for a tax credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.

Yun projects the extended and expanded tax credit will encourage 2.4 million households to take the credit in 2010.

“While new-home sales will remain low due to a lack of construction, existing-home sales are projected to rise to around 5.6 million in 2010,” Yun says. Last year there were 5.16 million existing-home sales.

He added that one of the greatest benefits of rising sales will be firming home prices.

“For several months now we’ve been seeing stabilization in all of the home price measures as inventory is pulled down,” Yun says. “As a result, the housing wealth for many middle class families has begun to stabilize.”

Regional Data

Here's a breakdown by region for the PHSI:

• Northeast: rose 2.3 percent to 76.1 in December and is 14.9 percent higher than December 2008.
• Midwest: increased 5.2 percent to 86.9 and is 8.7 percent above a year ago.
• South: rose 2.2 percent to an index of 98.4, and are 5.5 percent higher than December 2008.
• West: fell 3.8 percent to 119.9 but is 18.6 percent above a year ago.

—NAR

10 Home Features Buyers Want

10 Home Features Buyers Want

Home designers and builders speaking at the recent International Builders Show in Las Vegas say that buyers are seeking cost-effective features and rejecting things that don’t have lasting value.

“It's all about family togetherness – casual living, entertaining and flexible spaces," says Carol Lavender, president of the Lavender Design Group in San Antonio.

Paul Cardis, CEO of Avid Ratings, which conducts an annual survey of buyer preferences, identified these must-haves in new homes:

1. Large kitchens with islands
2. Energy efficiency, including energy-efficient appliances, super insulation, and high-efficiency windows.
3. Home offices
4. Main-floor master suite
5. Outdoor living space
6. Ceiling fans
7. Soaking tub in the master suite and/or an oversize shower with a seating area
8. Stone and brick exteriors rather than stucco or vinyl
9. Community walking paths and playgrounds
10. Two-car garages, but three-car garages are even more desirable

Source: MarketWatch, Steve Kerch (01/30/2010)