Ground hog day has come and gone, but D day for the first time home buyer credit is coming soon. D day stand for deadline day - April 30, 2010! Folks, that is $8000 to you from the government if you buy a house and you have not owned a house for 3 years, and $6500 is you have owned a home for more than 5 years. There are some limitations so go to www.ashlandprowest.com to read and or print out all of the information you might need.
But! there is more....interest rates are predicted to go up and this prediction is across the board from almost every economist around. What this means is that even if house prices were to go down, your payment might not, and your payment is a long term rate. So again, now is the time to buy if you can.
Saturday, February 6, 2010
Friday, February 5, 2010
Ashland and Medford Homes Sales Statistics for Jan 2010
The Southern Oregon MLS just posted the real statistics for the Ashland and Medford area home sales. The data compares the time period of Nov. 1, 2008 to Jan 31, 2009 to Nov 1, 2009 to Jan 31, 2010. Below are some excerpts from their data:
The median sales price held steady in Ashland and East Medford.
There was a 68.7% increase in the number of sales.
The number of homes on the market in all of Jackson County dropped 17%.
The number of distressed sales made up 49.4% of the closed transactions.
The median sales price held steady in Ashland and East Medford.
There was a 68.7% increase in the number of sales.
The number of homes on the market in all of Jackson County dropped 17%.
The number of distressed sales made up 49.4% of the closed transactions.
Thursday, February 4, 2010
Super Bowl Winner predicts Ashland & Medford Home Sales
The Rogue Valley Association of Realtors is sponsoring an event with Lawrence Yun, the NAR economist, in April,so I thought I should write something about the economy. You should plan to attend Yun’s presentation as he makes economics interesting and relevant to the real estate business. Now my two bits…
In the next few days, the super bowl will be over and there will be a winner. So I am going to use the super bowl indicator (SBI) to predict the future of the housing economy. Since the first Super Bowl in 1967, when Green Bay Packers whipped the Kansas City Chiefs, 35-10, the Super Bowl Stock Market Predictor has been an astonishingly accurate indicator of stock market direction for the rest of the year. The theory holds that when a team from the original National Football League wins the championship, stocks rise. When a team from the now-defunct American Football League wins, that's bearish.
The Super Bowl Indicator (SBI) has been on the money 32 years out of 40, which represents a success rate of 80%. Between 1967 and 1997 it was accurate 28 times out of 31 (a better than 90% average); it then hit the skids, going 0-4 between 1998 and 2001, but rebounded by being correct 4 years out of 5 between 2002 and 2007.
So if the Colts (NFC) win against the Saints (AFC) then look forward to housing sales rising in the Ashland & Medford area in the next year, but for real economic information, plan on attending April 23, 2010 with Lawrence Yun!
In the next few days, the super bowl will be over and there will be a winner. So I am going to use the super bowl indicator (SBI) to predict the future of the housing economy. Since the first Super Bowl in 1967, when Green Bay Packers whipped the Kansas City Chiefs, 35-10, the Super Bowl Stock Market Predictor has been an astonishingly accurate indicator of stock market direction for the rest of the year. The theory holds that when a team from the original National Football League wins the championship, stocks rise. When a team from the now-defunct American Football League wins, that's bearish.
The Super Bowl Indicator (SBI) has been on the money 32 years out of 40, which represents a success rate of 80%. Between 1967 and 1997 it was accurate 28 times out of 31 (a better than 90% average); it then hit the skids, going 0-4 between 1998 and 2001, but rebounded by being correct 4 years out of 5 between 2002 and 2007.
So if the Colts (NFC) win against the Saints (AFC) then look forward to housing sales rising in the Ashland & Medford area in the next year, but for real economic information, plan on attending April 23, 2010 with Lawrence Yun!
Thursday, January 28, 2010
FHA changes on their way....
Read this great post by Karen Cooper on the new FHA changes. Below are some of the highlights:
What changes will be implemented? We announced the following on January 20:
Increase the up-front mortgage insurance premium (MIP) to 2.25%;
Update credit score and down payment requirements for new borrowers;
Reduce seller concessions to three percent, from six percent; and
Implement a series of significant measures aimed at increasing lender enforcement.
Now is the time to buy a home in Ashland or Medford before it gets even harder to get a loan.
What changes will be implemented? We announced the following on January 20:
Increase the up-front mortgage insurance premium (MIP) to 2.25%;
Update credit score and down payment requirements for new borrowers;
Reduce seller concessions to three percent, from six percent; and
Implement a series of significant measures aimed at increasing lender enforcement.
Now is the time to buy a home in Ashland or Medford before it gets even harder to get a loan.
Ashland and Medford Homes Sales for 2009
Below are the highlights from the recent SOMLS data released for sales in Ashland, Medford, and Jackson County:
Ashland - 45 more homes in 2009 than 2008. The median sales price for existing home sales went down from $375,000 to $328,125.
Medford - 184 more homes in 2009 than 2008. The median sales price for exisitng home sales went down from $175,000 to $134,000 in W. Medford and $239,500 to $205,950.
Countywide 387 more homes in 2009 than 2008. The median sales price for existing home sales went down from $225,000 to $186,000 (-17.3%).
Note that the median price decline does not mean sales prices went down county wide by 17.3% rather that the number of homes selling in the lower price range due to the first time home buyer credit caused the median home price to be lower than in 2008.
Ashland - 45 more homes in 2009 than 2008. The median sales price for existing home sales went down from $375,000 to $328,125.
Medford - 184 more homes in 2009 than 2008. The median sales price for exisitng home sales went down from $175,000 to $134,000 in W. Medford and $239,500 to $205,950.
Countywide 387 more homes in 2009 than 2008. The median sales price for existing home sales went down from $225,000 to $186,000 (-17.3%).
Note that the median price decline does not mean sales prices went down county wide by 17.3% rather that the number of homes selling in the lower price range due to the first time home buyer credit caused the median home price to be lower than in 2008.
Wednesday, December 30, 2009
Medford Oregon Homes Sales Skyrocket?
According to a recent post in USA today by Christine Dugas, she quotes the Southern Oregon Multiple Listing Service statistics as home sale up 73% in 2009 from 2008.
I can say from my own experience that Medford and Ashland area homes sales were much better in 2009 than 2008, but 73% is a little bit of an exaggeration. Although, it may be technically true for the time period quoted in this post due to the parameters used in the calculation, I am predicting the overall percentage increase for 2009 compared to 2008 to be more in the 25 to 35% range. In a couple of weeks, I should be able to post the correct number.
I can say from my own experience that Medford and Ashland area homes sales were much better in 2009 than 2008, but 73% is a little bit of an exaggeration. Although, it may be technically true for the time period quoted in this post due to the parameters used in the calculation, I am predicting the overall percentage increase for 2009 compared to 2008 to be more in the 25 to 35% range. In a couple of weeks, I should be able to post the correct number.
Friday, December 11, 2009
Loan Modifications... Are they working?
According to: Associated Press, Alan Zibel (12/10/2009)
Only about 4 percent of the home owners who signed up for loan modifications—fewer than 31,000—had received them by the end of November, according to figures released Thursday by the U.S. Treasury Department.
Of the largest lenders, Bank of America Corp. had the worst results. It completed a total of 98 modifications. With 7,100, GMAC Mortgage completed the most.
Lenders have blamed their lack of success in part on the failure of borrowers to complete the paperwork necessary for the process.
The government says it will expedite its efforts to push through as many modifications as possible.
I have heard from a few people that their loans have been approved for modification, BUT the loan payment is more than the existing loan payment. In one case, $700 more than the homeowners current payment.
My theory is that the lenders are doing what the government asked them to do - give loan modifications....just not a loan mod a homeowner would want. Hence a win-win for the lender.
Only about 4 percent of the home owners who signed up for loan modifications—fewer than 31,000—had received them by the end of November, according to figures released Thursday by the U.S. Treasury Department.
Of the largest lenders, Bank of America Corp. had the worst results. It completed a total of 98 modifications. With 7,100, GMAC Mortgage completed the most.
Lenders have blamed their lack of success in part on the failure of borrowers to complete the paperwork necessary for the process.
The government says it will expedite its efforts to push through as many modifications as possible.
I have heard from a few people that their loans have been approved for modification, BUT the loan payment is more than the existing loan payment. In one case, $700 more than the homeowners current payment.
My theory is that the lenders are doing what the government asked them to do - give loan modifications....just not a loan mod a homeowner would want. Hence a win-win for the lender.
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