Focus Professionals, Inc Real Estate Blog

The new United States national new housing sales report is out. Here are some of the statistics:

• U.S. new-home sales unexpectedly fell in February, dropping to their lowest level in nearly seven years and calling into question whether the housing slump has resumed.
• Sales of single-family homes decreased by 3.9% to a seasonally adjusted annual rate of 848,000, the Commerce Department said Monday. Wall Street expected a 6.7% increase in demand.
• The drop followed a 15.8% plunge in January and carried the annual sales rate to its lowest level since 793,000 in June 2000. The median home price dipped year over year and inventories grew.
• Year-to-year, new-home sales were 18.3% lower. Recovery from the slump could be hampered by the subprime market mess. Delinquency rates for subprime mortgage loans rose at the end of last year. Wall Street is worried tighter lending standards for borrowers with less-than-sterling credit could slow home sales in the future.
• Keeping new-home sales from falling farther last month was demand in the West, which soared 24.6%. A month prior, sales in the region plunged 25.8%. Elsewhere, new-home sales in February fell 26.8% in the Northeast, 20.0% in the Midwest, and 7.0% in the South.
• The average price of a home last month increased to $331,000 from $310,100 in January. The median price was $250,000, higher than $243,200 in January but below $250,800 in February 2006.

There were an estimated 546,000 homes for sale at the end of February, representing an 8.1 months’ supply at the current sales rate — the highest supply since 9.4 in January 1991. In January, an estimated 538,000 homes were for sale, a 7.3 months’ inventory.

This data means that home buyers are still at advantage, in this strong buyer’s market, despite mortgage issues. Although the issues pertaining to sub-prime mortgage lenders are likely a factor contributing to the data trends.

More analysis to come.

If you have a good credit score, say a FICO above 680, and have enough cash on hand to provide a 10% deposit on the home of your choice, now is the best time in years to purchase your new home! Interest rates are back down, with a person meeting the above criteria able to get a rate of 6.2% or better. At the same time, home prices are reaching downward, with large inventories of houses for sale on the market.

If you have less that a 680 score, the rate will be higher, even with a 10% deposit, but still good… if you have a score below 640, there is no possibility of 100% financing these days at anywhere near these rates… averages for this month show rates above 8% for 100% financing combo loans (80/20, etc.)

If you are a real estate investor, things could be very good for buying, although the lenders are getting tighter on what they are willing to do for an investor. If you have a track record of success, it is a good time to buy… if not, you might find money a bit pricey right now.

So, for you folks out there who have managed your credit well, and have some savings, this is the best time to buy in years. Contact us to find out more details specific to your circumstances.

The following is excerpted from Virginia Halter’s blog at ActiveRain and discussed the issues surrounding Foreclosures and Buyers… and reflects the thoughts of all the agents and brokers, lawyers and loan officers here at Focus Real Estate Group, Inc. The particulars are for her market area, and are detailing issues and facts particular to that area, but the general concepts are true in all places. Real Estate is local, but the concept is global.

There is nothing more important as a home buyer than to make sure that you can afford the home you are buying… NOTHING… a qualified, honest, loan originator is key to helping you understand the costs… Be straightforward with your Realtor and loan officer, and make sure you find an honest one who will guide you in concepts, practices, and capabilities… do not be pushed into a purchase you cannot afford, and make sure that what you do in fact buy is a good buy, and that all aspects have been accounted for… this issue is a real problem, especially these days.

We do realize that many people have dreams of owning multi family houses, when as first time buyers, they would be much better off buying a condominium… if you have a trustworthy Realtor and loan officer, rely on their advice… what are you paying them for if you don’t listen to them.

Here is the excerpt:

Front Page of the Charlotte Observer…Foreclosures!

This is the headline on this morning’s newspaper. It is a series of six articles on how and why the foreclosure rates are sooooo high in some neighborhoods. It is also a comment on how it affects us all, not just the individual home owners.

Let’s start with the embarrassing information. Charlotte has the highest foreclosure rates in the state. Yikes!! These are our clients. Why aren’t we protecting them? (more…)