April 29, 2010

Lakeview Title Company Real Estate Market News

New Short Sales Program Will Pay Homeowners to Vacate
The Obama administration has adopted a short sales program to help end the foreclosure crisis. Well . . . if you've worked in residential real estate sales for the last few years, then you've probably handled a short sale or two, which means you probably know they can be an absolute nightmare!!  That's because they're labor-intensive and it takes forever to get an answer.

Lenders put you through the ringer because they have preset/non-negotiable guidelines, use BPO agents who are unfamiliar with the local market, and respond with counteroffers that are so off the charts it makes you want to stick your head through the phone and ask, "Really?!! Are you kidding me?!!"

As a matter of fact, I'm working on a short sale now and the lender contacted me yesterday with a counteroffer.  He asked me to counter back to the buyers at $40,000 more than what they offered, remove a $16,000 seller credit, and reduce realtor commissions by 1%.  In a nutshell, he wants an extra $60,000. "Really?!! Is he kidding me?!!"

But . . . I digress. 

I was trying to tell you about the new short sales program that's set to begin on April 5, 2010.  The goal of the program is to "streamline and standardize the short sale process" and make it easier for borrowers and lenders.  Buyers must meet eligibility requirements and program highlights include:

• $1,000 to the servicing bank
• $1,000 to second lender (if there is one)
• $1,500 to borrower for relocation assistance
• Standard timeframes, processes, and documents
• Prohibits servicers from reducing real estate commissions agreed upon in the listing agreement

The program sunsets on December 31, 2012.

Spring Is in the Air, So Who's Buying Real Estate?
Historically, home sales increase during the spring and summer months. In part, because the weather is good and the kids are out of school. This year should be no exception. And the way I see it, there are 4 key reasons why homebuyers (largely first-timers and investors) will have some pep in their step! Here they are:

1.Low interest rates
2.Low prices
3.Tax credits
4.Desperate sellers

OK . . . so you don't exactly have to have a degree in biochemistry to figure that out. But that's beside the point! The point is, these next couple of months should cause you to develop a serious case of "bigger pockets." Get it?

The Economy Is Looking Up
According to the Fed Beige Book (a survey/report by Federal Reserve Banks consisting of information from businesses, economists, market experts, and other sources around the country), economic conditions improved in January and February despite the recent snowstorms. Residential real estate markets reported a mixed bag-some improvement, some weakening, and some unchanged. Low-priced and starter homes show the strongest sales, while high-end, McMansions are being kicked to the curb . . . literally. Commercial real estate activity remained weak or declined.

Mortgage Applications Increase
According to the Mortgage Bankers Association, mortgage loan applications are up. As of the week ending March 5, 2010, purchase applications increased 5.7% from the previous week, which saw a 9% increase. Refinance applications decreased 1.5%, but were up 17.2% the previous week. Another interesting note is that the refi share of mortgage activity accounted for 67.2% of total applications.

Downtown Columbia Is Getting a Makeover
The 30-year redevelopment plan was approved in February. The goal of the plan is to create a more pedestrian-friendly, urban downtown area. Among other things, the plan includes:

• 4.3 million sq. ft. office
• 1,250,000 sq. ft. retail
• 5,500 housing units
• 640 hotel rooms

It also includes cultural and recreational venues, environmental restoration of open space, and restoration of the Merriweather Post Pavilion.

Well . . . that's all the news for now.

Until next time.

Be well.

Posted by: shana@lakeviewtitle.com