Signs That The End Is In Sight (Blah Blah Blah)

Just an FYI I have been talking to lots of Contractors and People in the Home
Building/Buying Business.
The concrete contractors are saying that they are doing more bids than they have in a long while.
The builders (at least most of those I talked to) are going to have work this year.
More people are doing loan applications and pre-approvals.

Now, how can that be anything but good news?

We can't expect everything to go back to where we were a couple of years ago, but we can
expect the market to start to stabilize throughout this year. I really am a realistic person and
realize that we have far surpassed a normal appreciation for the past 10 years.
Once we've stabilize then you can expect appreciation to start upward.

Will it be next year? The year after? If I could tell you that I'd be looking at property in
Hawaii. No one can predict the future. But we know that lumber prices haven't
dropped very much.

Our biggest problem right now are the multitudes of foreclosure properties and
the over supply of townhomes and condos.

If the government steps in to help out those in trouble with their mortgages and the
lenders are required to help these people, then we will see the bottom much sooner.

My suggestion:
1. If you are going to refinance or even look to buy call Kari and me first.
We understand the mortgages that are out there and we can direct you to lenders that
we use and trust.

2. If you would like a list of all the foreclosures in the Hastings area just e-mail us or call
us at : karistorkamp@edinarealty.com - 651-470-0709
marymurphy@edinarealty.com - 651-353-9838

Persistence Pays

Today we closed on a house that was one of the most rewarding closing I can remember in awhile. The buyer is a single Mom with 2 dependent children. She has been trying to purchase a home for at least 18 months. She did find one in Red Wing about 8 months ago and because of the changing market and a poor loan originator she did not get the loan. This happened at the last moment when she had already given her notice and was to be out of her apartment by the 1st of the next month. A friend of hers
suggested she contact Margaret Swanson with Lake Area Mortgage. The buyer met with her and started the process to purchase. This included raising credit scores, establishing that she had enough self employment income and other things that needed to be established prior to her even looking for a house. The buyer then called me approximately 6 months ago and we started looking for homes under $110,000.
That was challenging to me also. We would look for homes because this buyer wanted a yard for her grandchildren. We checked in Red Wing and Hastings. I was working with Margaret to understand the programs she was going to use. This lady combined about three different programs and came up with a zero down loan. I couldn't believe it.
The first thing was a decent credit rating (which she helped with). Then Margaret
used a CASA program thru MHFA. She obtained a Grant thru AHP alloted thru
Lake Area Banks + she received a monthluy payment assistance thru CASA also.
Margaret Swanson of Lake Area Mortgage you are the HERO of the month.
The Buyer now owns her very own single family home with a yard and at a payment
she can afford. We found her a home for $105,000 (by the way it had all new plumbing,heating,cabinets and flooring) that would not nickle and dime her to death and one
that she is proud to own.
Today is the best day ever because we could help this buyer.
Congratulations Maggie. AND
Thank you Margaret.

If you are a struggling buyer or a buyer who will breeze through the loan process call
Mary and Kari and we'll hook you up with Margaret.
Have a great week!
Smiles

Negative News follows Asset Bubble?

Despite the downturn in housing we should think in positive terms:i.e.
1.Downturns in the economy provide people with many opportunities to make money.
2.For Buyers the timing could not be better. With many opportunities to
purchase homes that are either in foreclosure or finding a motivated Seller
who must liquidate to move to another job this is the time to buy.
3.Most of your top investors buy low and sell high. You can be one of them.
4.In a short period of 5-6 years most Sellers saw their home value increase
from 45-85%. The normal for a time period in all the past years has been
4-5%. I'd say that we homeowners should under normal circumstances have
seen our home values go up only 25%. So what's the big deal! Yes we have lost
some of our gain, but look what the stock market has done over the past months.
We have had huge gains in the stock market too. So if these two markets level
off a bit have we really lost any money? Not to mention that we needed a place to
live, we received a tax deduction and we don't have to pay capital gains tax
on our profit up to a certain amount. We are still making money on our homes.

Do we really have a c omplaint? Maybe if you bought in the past 3-4 years.
The rest of us should count our blessings.
So we won't make as much as we once would have. We can't go back 2-3-4 years and
sell our stocks either.

It's time to be realistic and remain positive. This market will not last.
When we look back over the long run we'll clearly see the positive.

A Valentines Preview!

On a personal note............

I am so excited about our ad in the Hastings Paper this week that I am posting a sneek peek. I just fell in love with this photo. It is just a tribute to how in love the greandkids are with Nana and Papa! I picture is worth a thousand words! See for yourself! HAPPY VALENTINES DAY!!!!

-Kari

It's All About Attitude

With all the media attention the housing market has been receiving it's no wonder
buyers are thinking that this is a rotten time to buy a house.
The truth is that drama sells advertising and newspapers and it gets attention all over.
I for one am sick to death of all the negative attention. Let's be realistic.
Some of what you are hearing and reading is true. However, the truth of the matter is that there are some really great buys in the market today. Interest rates are
hanging lower than they have been for a long time and Sellers are willing to
negotiate their asking prices. No matter what happens people will still have a need to buy or sell. The difference now is that you Buyers have the upper hand.
Don't be swayed by some reporter who says the market is terrible - check it out for yourself. It takes a while to search out the market, to get pre-approved and to
feel comfortable that the offer you may choose to make on any given house is a fair and equitable offer for you and your situation. You only learn to do this by
getting out there. When the right house comes up you'll KNOW because you did your homework. If you have a negative attitude you may never get into a house of your own.
Questions? Just write or call us anytime.

Market Realism

Economic downturns provide ample opportunities to make money.
Remember - Most Sellers are also Buyers. If you sell at a discounted
price and you have purchased from the mid 1990's through 2005 your
home possibly appreciated up to as much as 80%. So now you have to take a
discounted price of 10 to 20%, you still made a nice profit.
When you go to purchase another home you have the advantage of a buyers market,
which means that there are many homes and few buyers. Your purchase price
will be discounted at the same 10 to 20%, possibly more with a highly motivated
seller. The interest rates are as low as 5.50% this week also.

However, if you decided to do a home equity loan to purchase a vehicle,
pay off credti cards or do remodeling, then you may have a situation
where you would need to bring cash to closing. If you don't need to sell
and you find yourself in this situation I'd suggest you wait until the market
changes. However, it may be a good time to refinance if you are in an adjustable
rate or interest only mortgage plan. Interest rates are favorable so check it out.
We have some favorite lenders that we recommend because we know they will not
take advantage of your situation. Call us for their names and telephone numbers.

We are anticipating that we will work even harder this year, but remember
there are always people who must sell and must buy. The real estate market is
not dead!!!!

January Updates

If you've kept up with the news lately the only thing you seem to hear is that the real estate market is really depressed (bad). I would agree that some of the things you read or hear are true but most are exaggerated to sell newspapers and to capture a listeners attention. It should be no surprise that the market would level off at some point, The surprise is that no one (no one) predicted that there would be a downturn that affected so many people. The economists are not always right either.
This is my prediction - Now the economists are saying that 2008 will be another
poor year, with foreclosures up, inventory high and new construction in the tank.
Well, I already see rumblings that this could be a better year. First of all, Buyers are more aware that there are bargains out there. They also realize that the interest rates have come down (5.85%) if you have a good credit rating.
Sellers who need to sell will always be with us. Either they are forced to sell or they simply choose to sell in this market. Retirement, Downsizing, Relocation etc. are all reasons someone may choose to sell. These people will not go away and are now more aware of the new pricing needed to sell their home. Simply put if we have a willing buyer and a willing seller we will put the transaction together. So, don't hesitate to check this market out at the very least.