REALTOR enotes for week of October 27, 2008

Weekly Market Activity Report

Home sales in the Twin Cities housing market continue to post healthy increases over last year, though the upward movement isn’t as powerful as it was during September. For the week ending October 18, there were 618 signed purchase agreements (pending sales)—an increase of 9.6 percent over the same week last year and the 16th consecutive week of year-over-year upward movement. Foreclosures and short sales continue to comprise a sizable chunk of the market.

New listings for the same time period comparison were 18.1 percent lower, which represents the 30th week of the last 33 to have downward movement in new listing supply. The total inventory of homes for sale sits at 30,343, which is about 3,000 less than at this same time in 2007. Inventory should continue to fall through the remainder of the year but won’t fall as far as previous years given the higher number of foreclosures and short sales, which tend to stay on the market irregardless of snow depth and subzero temperatures.

The Weekly Market Activity Report is sponsored by the largest real estate commission advance company in the U.S., Commission Express.

Click the logo below or click here for this week’s full report. Visit Market Info for more research reports.

 

Listen to the Money Talk

Money talk is all the rage at the water cooler, at the cocktail party, at the dinner table, on the Internet, on the TV, at the…you get it. To keep up with the Joneses, Greenspans, Bernakes, Paulsons, and Buffetts, we’re alerting you to a couple of found money objects on the web.

The first one is from NPR. The blog itself exists in nice, bite-sized bits, but “The Giant Pool of Money” we first noticed is pretty long (50+ minutes in 2 parts). Sure, it’s long, but it’s also pretty good. Maybe play it in the background while you’re balancing your personal budget. If an hour is just too much to think about, the “short” highlight version is 12 minutes long.

The second one skews more local. Check out Ka-Blog!, the blog of Star Tribune finance writer, Kara McGuire. It’s a great little local golumn (blog-column) that will draw you back frequently for an informed (and sometimes quirky) look at money matters on the home front and beyond.

Storefront photo by Robert Smith/NPR; crumpled money photo by Sarah.

Source: NPR, Star Tribune

NAR Sustainable Property Designation
NAR has created a true cross-over designation–one that provides an in-depth understanding of “what green means” for every aspect of real estate: residential, commercial, property management.

Access new markets, build your customer base, and be a positive force for change in your community! This designation addresses the concerns of consumers that are seeking real green expertise, not just lip service. You can be the one they come to for answers. As a real estate professional, you can have a real and lasting impact. Get the designation that will help you make it happen. more

Source: National Association of REALTORS®

If you know of any green opportunities worth talking about, contact Greg Sax at gregs@mplsrealtor.com, and tell him all about it.

 

CREDIT: It’s A Buyers Market – Is Your Credit Ready?

The Emerging Markets Homeownership Initiative and sponsor organizations are hosting an informational session on credit. The purpose of the event is to educate industry professionals and consumers on the importance of credit, create credit savvy consumers and correct credit misconceptions. Industry professionals will receive updates to current mortgage programs and resources for their borrowers who are struggling with credit issues.

Date: Thursday, October 30
Time: 3:00 p.m. to 8:00 p.m.
Location: Brooklyn Park Community Center
Address: 5600 85th Ave N, Brooklyn Park, MN 55443

Event Introduction | Event Flyer | Vendor Application

Source: National Association of REALTORS®

The Real Story – Letter from Mary (PHH)

Hello Everyone,

I am sure that you have recently had as many questions as I regarding the availability of mortgage money.  The current economic crisis has led many in the public to worry about whether or not mortgage money is even available should they choose to buy a house.  Statements from government and commentary by the media have certainly played a part in creating this perception.

So, what is the real story?  Here at PHH Home Loans it continues to be business as usual.  Perhaps, because that statement is so ordinary it gets overlooked.  I would like to give you the facts so that you can share them with your agents and customers.

First, frankly we have access to more funds to lend than we can actually use!  Our warehouse facility has a $350 Million capacity.  Given that most loans cycle through the warehouse in 15 days our group effectively has access to $700 Million a month!  This morning we were only using a fraction of the line.  I would say we have access to plenty of credit.

Second, mortgage product is widely available.  So far this year we have sold loans to 21 different state and national investors.  Within our investor group we still have more than 450 products to offer.  Furthermore, we constantly seek out new investors and, just as importantly, they seek us out to sell their product!  It is important to remember that we have the best mortgage customers around, the purchase money borrowers who come through Coldwell Banker’s doors every day.  Our investors recognize this fact and want to do business with us.

Third, borrowers can still qualify for a loan.  It is absolutely true that today’s underwriting standards are now stricter than those of the recent past.  However, that is a good thing for our industry.  Borrowers should be able to document their income, their assets and prove that they are credit worthy.  Old fashioned?  Perhaps, but it is certainly prudent.  Furthermore, PHH Home Loans was never a major player in the sub-prime market.  In 2005 when things were getting rather wild and crazy PHH Home Loans did just 3.5% of our closed loan volume in this category.  It was never our stock in trade and this has served us, and our parent company, quite well.  The marketplace is littered with the wreckage of companies who choose the sub-prime path.

Finally, as you know, this weekend wraps up Coldwell Banker’s 10 Day Sales Event.  This is a tremendous opportunity for the consumer to get into a new house.  This is all the more true because, as you know, interest rates have been moving up for the last several weeks.  It will certainly do the consumer little good to hold out for that last $5,000.00 on the sales price and then have to pay a half percent or more on their interest rate for the next 30 years.  This may well be the best time to buy!

Have a great weekend.

Mary

Letter regarding economy

 

To my loyal clients, friends and new readers:

 

This is a challenging time for our country and the real estate industry.  I would like to make a few comments on the status of our area’s market and to talk about what I am doing individually and our company collectively to stay ahead of these challenges.

 

First, thank you for your loyalty and continued support.  I truly appreciate your confidence and the opportunities you have given me.  It is always my goal to meet and exceed your expectations and get your desired result effectively.

 

The housing market has experienced unprecedented challenges in the last three years. For those of you buying, the many and varied buying opportunities can be confusing.  For those of you selling, the extended marketing times and uncertain pricing parameters can be frustrating.

 

These challenges are discussed and analyzed within our company on a daily basis.  The question that is constantly at the heart of our discussions is:  In addition to using the long-tested and effective methods to get the job done, what new ideas can we incorporate to improve our effectiveness?  Coldwell Banker Burnet has a proven history of “thinking outside the box” and that, combined with our track record and great sales force, allows us to move ahead of the pack which is supported by our overwhelming dominance in our market place.

 

To that end, let me describe some of our plans, both near and long term, to stay ahead of the curve:

 

1.  The statistics are not as bad as one might think.  Please see the attachment.  If you only listen to the media, you might think that no one is selling or buying real estate.  The truth is quite the opposite; we maintain good sales, and our inventory is shrinking.

 

2. We constantly improve our web-sites for maximum effectiveness.  (70% of home searches start on the internet)

 

3. We study our print advertising continually – is it result oriented?

 

4. Listing reassessments:  What more can be done?  Is the price realistic?   Does it look as good as possible?  Is the advertising targeted to the right market, etc.

 

5. Keeping our clients educated to market changes and challenges.

 

6. Offer ideas to improve our “one-stop shopping” in all real estate aspects; mortgages, title, and insurance; the ultimate services for those seeking efficient and effective processing.

 

7. Participation in our bi-annual “Lakeshore Tour” in early October with over 144 homes featured on a company-wide basis with in our highly advertised Open House Tour, five of which were my listings.

 

8. Participating in the national “10 Day Sale” promotion, which has brought great results in other parts of the county, will be offered for the first time in our area.  I will feature three homes.

 

9. Always keeping you, the client at the top of my list.  I am in the service industry providing just that…”service”! My attention, as well as the attention of my licensed assistants and all the Coldwell Banker Burnet associates is hard at work for you.

 

10. Running our businesses efficiently and effectively.  Like most businesses, to stay in front we must be must be careful to be effective in our expenses to stay ahead on your behalf.

 

11. We stay open to suggestions and improvements from our clients, so if you see, hear or feel something is not working for you; please let us know immediately as we strive to improve our service to provide the best for you. 

 

I want to thank you again for your confidence in the job I do for you.  I am totally vested and committed to bringing you a great result!  If you have any questions, or concerns or would just like to “chat”, please do not hesitate to call me (952-476-3646) or send me an e-mail (edehaven@cbburnet.com).

 

Thank you, and together we can get it done!

 

Cordially,

 

Ellen DeHaven