Mortgage Applications Decline

Mortgage applications declined 1.2 percent last week compared to the previous week on an adjusted basis, according the Mortgage Bankers Association weekly survey.

On an unadjusted basis, purchased applications declined 2.3 percent and they were 36.8 percent lower than they were the same week a year ago.

The decline in purchase applications was driven by a 4.4 percent decrease in applications for government-backed mortgages, according to the MBA. Conventional purchase applications actually increased 1 percent.

Most mortgage rates were at their lowest point since mid-May:

* 30-year fixed-rate mortgages decreased to 4.75 percent from 4.82 percent.
* 15-year fixed-rate mortgages decreased to 4.19 percent from 4.23 percent.
* 1-year ARMs decreased to 7.05 percent from 7.07 percent.

Growing Counties!!

The fastest-growing counties in the country, according to the U.S. Census Bureau, are mostly in suburban areas outside of urban centers.

The census numbers govern the distribution of more than $400 billion in federal money each year.

Here are the 10 fastest-growing counties:

1. Kendall County, Ill. (Chicago), 92.1 percent

2. Pinal County, Ariz. (Phoenix), 89.7 percent

3. Rockwall County, Texas (Dallas), 88.9 percent

4. Flagler County, Fla. (Jacksonville), 83.9 percent

5. Loudon County, Va. (Washington, D.C.), 77.6 percent

6. Forsyth County, Ga. (Atlanta), 77.4 percent

7. Lincoln County, S.D. (Sioux Falls), 70.7 percent

8. Paulding County, Ga. (Atlanta), 67.4 percent

9. Williamson County, Texas (Austin), 64.3 percent

10. Douglas County, Colo. (Denver), 64 percent

Home Sizes Continue to Decline

Census data shows that the average square footage of a new single-family home dropped to 2,438 in 2009 after peaking at 2,521 in 2007.

"The decline of the early 1980s turned out to be temporary, but this time the decline is related to phenomena such as an increased share of first-time home buyers, a desire to keep energy costs down, smaller amounts of equity in existing homes to roll into the next home, tighter credit standards and less focus on the investment component of buying a home," says National Association of Home Builders chief economist David Crowe. "Many of these tendencies are likely to persist and continue affecting the new home market for an extended period."

The data indicates that 34 percent of new single-family homes had four or more bedrooms in 2009, down from 39 percent in 2005, but the number with three bedrooms rose to 53 percent from 49 percent over the same time span. Additionally, 37 percent of new single-family homes had two bathrooms in 2009, up from 35 percent in 2008; and the number with just one story rose to 47 percent last year from 43 percent in 2007.

Regionally, the data shows that 99 percent of homes in the South had air conditioning, versus 88 percent nationwide; 30 percent of homes had three-car garages in the Midwest, versus 17 percent nationally; and 74 percent of homes in the Northeast had vinyl siding, versus 34 percent nationwide.

I've Learned......

"I've learned that no matter what happens, or how bad it seems today, life does go on, and it will be better tomorrow."

As a property manager I frequently attend training and networking events and today I attended a NARPM (national association of residential property managers) seminar with Melissa Prandi from San Rafael, CA as the speaker. She closed by saying that in our property management business there are rough days and on those days she likes to reflect back on these words by Maya Angelou. I thought they were appropriate for all of us, in any business. (by the way that picture is real and that is what a bad tenant can do to your rental)

"I've learned that you can tell a lot about a person by the way he/she handles these three things: a rainy day, lost luggage, and tangled Christmas tree lights."

"I've learned that regardless of your relationship with your parents, you'll miss them when they're gone from your life."

"I've learned that making a "living" is not the same thing as "making a life."

"I've learned that life sometimes gives you a second chance."

"I've learned that you shouldn't go through life with a catcher's mitt on both hands; you need to be able to throw some things back."

"I've learned that whenever I decide something with an open heart, I usually make the right decision."

"I've learned that even when I have pains, I don't have to be one."

"I've learned that every day you should reach out and touch someone. People love a warm hug, or just a friendly pat on the back."

"I've learned that I still have a lot to learn."

"I've learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel."

What can $7,000,000 buy you on White Rock Lake

Have you seen it and wondered.....For several years while riding my bike around the lake I watched this five bedroom, nine bath, eight living area, five fireplaces, one and a half acre, 12,000 square foot house being built along Lawther and shortly after completion it went on the market.

The land sold in 2004 for $1.2 million according to records and is now listed for $6,995,000 making it one of the most expensive if not the most expensive house for sale in East Dallas.

It has a spectacular view of the lake from the home and the pool. The landscape over the past couple of years has really taken off and it is as lush and inviting as ever. The pools and rock waterfalls are magnificent. Of course there is a wine cellar and a guest house of about 1,500 feet for the family that stays too long at Christmas.

I can't even begin to list all of details and features of this house but needless to say it is exceptional.

4636 Chapel Hill, 75214

Couples Actually AGREE On Something!!!!!!!

It’s true. Men aren’t looking for exactly the same things women are when they go home shopping.

ZipRealty surveyed 1,000 home shoppers and concluded that while about an equal number of men and women sought green features – about 27 percent – and 35 percent of both sexes put a high priority on a home office, there is disparity in the desire for other features.

Both sexes did agree on the biggest turn-offs: structural damage, bad odors, a busy street, and an awkward floor plan.

Here are the top 10 features most desired by men:

1. Garage or designated parking space, 85.5 percent
2. Master suite, 79.8 percent
3. Ample storage space, 71.2 percent
4. Guest bedroom, 70.2 percent
5. Large closets, 64.2 percent
6. Outdoor entertainment area, 63.4 percent
7. Gourmet or updated kitchen, 59.1 percent
8. Breakfast room or eat-in kitchen, 55.2 percent
9. View, 44.5 percent
10. Large yard, 43 percent

Here are the top 10 features most desired by women:

1. Garage or designated parking, 87.7 percent
2. Master suite, 77.8 percent
3. Ample storage space, 72.7 percent
4. Large closets, 68.7 percent
5. Outdoor entertainment area, 64.2 percent
6. Guest bedroom, 63.9 percent
7. Gourmet or updated kitchen, 61.8 percent
8. Breakfast room or eat-in kitchen, 56.1 percent
9. Large yard, 43 percent
10. Wood floors, 40.9 percent

Better Curb Appeal!!

HGTV’s real estate site, FrontDoor.com, offers some ways to make a home more appealing.

• Restore the roof. Improve its appearance and keep it from leaking.

• Clean up the driveway and walkways. They set the tone for the rest of the home.

• Maintain the gutters. Clean out leaves and debris. Eliminate signs of water damage.

• Pay attention to details. Install attractive street numbers, door hardware and a new mailbox.

• Make the front door welcoming. Paint an old but solid one; replace one that is past its prime.

• Light it up. Decorate with attractive outdoor lighting.

• Paint offers big payoff for a low price. Just doing the shutters, trim and railings can help.

• Spruce up the lawn. Mow, pull weeds and fertilize.

• Add a WOW factor. Some beautiful plants will impress buyers.

Social Mention!!

Real estate professionals who wish to monitor their brands have been using Google Alerts to see what people are saying about them online and check their "@" messages in Twitter to locate references to their names. Now they can also determine who is sharing information from their Facebook pages with the help of Social Mention.

Social Mention provides free daily e-mail alerts of specified search terms in Facebook, Twitter, Yahoo, and Google, acting as a Google Alert for social media.

Real estate professionals can then interact with those sharing their Facebook content, expanding their fan base.

Manifesto: The Mad Farmer Liberation Front

This was posted by my friend from Austin City Living and I found it thought provoking. Ponder....

Manifesto: The Mad Farmer Liberation Front by Wendell Berry

Love the quick profit, the annual raise,
vacation with pay. Want more
of everything ready-made. Be afraid
to know your neighbors and to die.

And you will have a window in your head.
Not even your future will be a mystery
any more. Your mind will be punched in a card
and shut away in a little drawer.

When they want you to buy something
they will call you. When they want you
to die for profit they will let you know.
So, friends, every day do something
that won't compute. Love the Lord.
Love the world. Work for nothing.
Take all that you have and be poor.
Love someone who does not deserve it.

Denounce the government and embrace
the flag. Hope to live in that free
republic for which it stands.
Give your approval to all you cannot
understand. Praise ignorance, for what man
has not encountered he has not destroyed.

Ask the questions that have no answers.
Invest in the millenium. Plant sequoias.
Say that your main crop is the forest
that you did not plant,
that you will not live to harvest.

Say that the leaves are harvested
when they have rotted into the mold.
Call that profit. Prophesy such returns.
Put your faith in the two inches of humus
that will build under the trees
every thousand years.

Listen to carrion -- put your ear
close, and hear the faint chattering
of the songs that are to come.
Expect the end of the world. Laugh.
Laughter is immeasurable. Be joyful
though you have considered all the facts.
So long as women do not go cheap
for power, please women more than men.

Ask yourself: Will this satisfy
a woman satisfied to bear a child?
Will this disturb the sleep
of a woman near to giving birth?

Go with your love to the fields.
Lie down in the shade. Rest your head
in her lap. Swear allegiance
to what is nighest your thoughts.

As soon as the generals and the politicos
can predict the motions of your mind,
lose it. Leave it as a sign
to mark the false trail, the way
you didn't go.

Be like the fox
who makes more tracks than necessary,
some in the wrong direction.
Practice resurrection.

Wendell Berry

Home-Ownership Rate Falling!

Home-ownership rates are down 2 percentage points from their 2006 peak, but could fall another 5 percentage points in the next couple of years, according to a study by the Federal Reserve Bank of New York.

The study subtracts the number of home owners who are underwater from the official home-ownership rate calculated quarterly by the U.S. Census Bureau.

Officially, home-ownership was 67.2 percent at the end of 2009, but the report says that effectively the rate is about 62 percent if those home owners likely to lose their homes are subtracted from the total.

Cities cited as having very low effective home-ownership rates include Las Vegas, Phoenix, San Diego, Los Angeles, San Francisco, Miami, Tampa, Detroit, and Washington, D.C.

15-Year Mortgage Hits a Record Low

Interest on 30-year fixed home loans averaged 4.79 percent this week -- up slightly from 4.78 percent a week ago but still near historic lows.

The average rate on 15-year fixed loans hit a record low of 4.2 percent, down from 4.21 percent; while interest on one-year adjustable-rate mortgages was unchanged at 3.95 percent, and the five-year ARM fell to 3.94 percent from 3.97 percent.

Surge in Pending Home Sales!!

Pending home sales have risen for three consecutive months, reflecting the broad impact of the home buyer tax credit and favorable housing affordability conditions, according to the NATIONAL ASSOCIATION OF REALTORS®.

The Pending Home Sales Index, a forward-looking indicator, rose 6.0 percent to 110.9 based on contracts signed in April, from an upwardly revised 104.6 in March, and is 22.4 percent higher than April 2009 when it was 90.6. That follows gains of 7.1 percent in March and 8.3 percent in February.

Pending home sales are at the highest level since last October when the index reached 112.4 and first-time buyers were rushing to beat the initial deadline for the tax credit. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said this second round of surging sales from the tax credit extension looks as strong as the original tax credit. “There were concerns that only a small pool of buyers were left to take advantage of the tax credit extension. But evidently the tax stimulus, combined with improved consumer confidence and low mortgage interest rates, are contributing to surging sales,” he said. “The housing market has to get back on its own feet and now appears to be in a good position to return to sustainable levels even without government stimulus, provided the economy continues to add jobs.”

NAR expects a net of 1 million additional jobs in the second half of this year and about 2 million in 2011.

“The home buyer tax credit brought close to 1 million additional buyers into the market, which is now helping the trade-up market and has significantly improved the inventory situation. This stabilized home prices more quickly and has preserved about $900 billion in home equity; in turn, that is keeping additional households from going underwater and risking foreclosure,” Yun said.

Pending Home Sales Index by region:

* Northeast: jumped 29.5 percent to 97.9 in April and is 24.5 percent above a year ago.
* Midwest: rose 4.1 percent to 104.2 and is 17.9 percent above April 2009.
* South: slipped 0.6 percent to an index of 123.9, but is 31.3 percent higher than a year ago.
* West: increased 7.5 percent to 107.9 and is 12.0 percent higher than April 2009.


“A big concern surfacing recently is insufficient time to close the deal at the settlement table. Under normal circumstances, two months would be enough time from contract signing to settlement date,” Yun said. “However, the recent housing cycle has brought long delays related to the short sales approval process by banks, and from ongoing appraisal issues."

He added that there could be a sizable number of home buyers who responded to tax credit incentives, but may encounter problems meeting the settlement deadline by June 30. Because of these market challenges, NAR has asked Congress to provide flexibility on the deadline for closing.

Buyers - What to Do and What Not to Do

Home shopping is actually quite fun when buyers are informed and able to move through the process with their eyes wide open. Honestly it starts with the basics. Just like in elementary school people are always looking for short cuts, ways to get to the good stuff without the need for taking care of the details first. Unfortunately most of us learned the hard way that in the end this only makes it more difficult. Remember long division? I do. In fact I also remember teaching to my daughter. Laurie is one of those people who is able to do math in her head without the need for scratch paper. Lucky her! She was able to look at a problem and simply tell you the answer. The part she struggled at was showing her work. Whether for lack of ability or for simply not wanting to take the time, she didn't do it. This became a point of contention for her when she entered public school as her teacher consistently marked her down and lowered her grade on papers and tests for not showing her work. Laurie believed the steps did not matter as long as the outcome was correct. And this very well may be true, except for the fact that the directions said to 'Show you work'. Thus making it a gradable step. For those of us who need to do the steps in order to get the answer we learned it is very important to follow the instructions and do them in the proper order to gain the desired outcome, a correct answer.


What To Do:

In order to have the joy of finding just the right home to purchase one must first follow the steps to obtaining approval to make that purchase. Also known as mortgage approval or being 'Pre Approved'. Getting pre approved is fairly easy and actually painless. I have a list that I give our clients at a buyers appointment which lays out the items the lender will need to see in order to process your request for approval. They include:

Income:

• Paycheck Stubs (last 30 days)
• W-2 forms for the past two years
• If self-employed, previous two years tax returns
• Other income information if applicable: child support, retirement, social security, etc.
• Start date of current employment (must cover 24 months history)

Assets:

• Bank Statements (last two months, include all pages for both business and personal)
• Two months statements of liquid assets (investment portfolio: stocks, money market, 401K, SEP, etc.)

Other Information:

• Residence History (last two years including dates)
• Landlord History (address and phone for last two years)
• Date of birth (all borrowers)

Once you have your loan pre approval you can begin your search for homes that fit the mortgage and payment amount that you are comfortable with. Why look at homes before you know what you can afford to buy? It can be very disappointing to be looking at homes priced in the $200,000 to $250,000 only to find out that you qualify for $175,000 and will more than likely be purchasing a town home or condo rather than a residential home. It can be equally discouraging to be looking under budget depending on the neighborhood you desire to love in. Best to get approved first and then start searching!

It is also a good idea to maintain open communication with your Realtor and your Loan Officer. Tell them everything! What you like, don't like, what you know and what you don't know. If you have a question, ask it! The only stupid question is the one you didn't ask. Your Realtor and your Loan Officer want to help you be informed throughout the entire home buying process.

While searching for homes many buyers catch the bug! The shopping bug that is. As they began to realize that their new home will need a few more things than they currently have such as new curtains or perhaps new blinds, maybe a new washer and dryer or refrigerator, they began to start looking online and at local stores in their free time. While it never hurts to look and is a great idea to start gathering information and pricing so as to plan for your new home it is best to stay clear of making any purchases while home shopping. Every time you access your credit file to apply for a credit card, loan, or make what may seem as insignificant changes to your credit card balances your FICO score changes. If you make a purchase on a department store card such as Sears it can greatly effect your FICO score and it may actually change your ability to get a loan or at minimum change the interest rate that you qualify for. Some buyers are surprised shortly before closing when they are informed they no longer qualify for their mortgage due to changes in the credit report.

What NOT to do:

• Make purchases on your credit cards
• Apply for new credit cards or lines of credit
• Apply for an Auto loan
• Make larger than normal payments to your current credit cards or lines of credit (pay off entire balances, yes even paying things off can have a negative affect). If in question ask your loan officer before making a payment.
• Absolutely do NOT change your job!
  

Many buyers think once they are past the approval process, have made an offer on their new home, have made it through the inspection and appraisal process, that they are home free until closing. Hopefully, this is the case. Lending guidelines have changed drastically over the past 2 years. One step that has been added much to many people's surprise when uninformed is a day before or day of closing phone call to verify employment. The underwriter or processor makes the call. If they are told you no longer work for the company you specified on your application your loan cannot be funded. Imagine your surprise (and your agent's) when you are called the day of closing and told you are not purchasing a home today. If you are in the process of changing jobs wait to purchase a home after the change as long as it is in the same industry you currently work in and for the same or higher pay. If you will be changing job profession entirely you may need 1-2 years on the new job before obtaining a loan. If that is the case you may want to hold off on your job change until after you have closed on your new home if at all possible.

Many underwriters also run a last minute credit report to see if there are any changes there as well. Throughout the final days before closing many buyers are asked for additional documentation to verify down payment funds, sources, employment, rental or investment information. This is different for every buyer. Be prepared to provide whatever is requested as quickly as possible in order to help your loan process flow as smoothly as possible. The quicker they have the information the sooner conditions can be met and your loan documents can be delivered to escrow for signing.

I have to admit that I "borrowed" this blog post from Kristi Lyn Reddy of Reddy Family Real Estate in Seattle - but it was really great information.

Vacation Rental Market is Better

The vacation rental market has improved this year compared to 2009.

"Some companies have reported advanced bookings have increased as much as 60 percent to 80 percent over last season," said Alex Risser, president of the Vacation Rental Managers Association, which manages 150,000 vacation rentals.

Increasing demand doesn’t mean that potential renters are willing to settle for less than ideal properties. “It’s still a tenant market in rentals,” says Theresa Smith, director of vacation rentals for Kinlin Grover GMAC’s Vacation Rentals on Cape Cod.

Today is the last day to dispute your property taxes - 6/1/2010

Today is the last day to dispute your property taxes in Texas. If you would like to dispute the assessed value of your taxes you must fill out a form by closing of the tax office today. There are no exceptions.

The appraisal district websites are listed below and Dallas and Tarrant have an online form. In the other three major counties, you must fill out the form and deliver it by end of business.

www.dallascad.org
www.tad.org
www.collincad.org
www.dentoncad.org
www.rockwallcad.org