Tuesday, December 11, 2007

Can the Fed bring Stability?...12/11/2007

Interesting question. There are some great debates over this issue with respect to our industry (REAL ESTATE). There is probably little doubt that the Fed will lower the target for the Fed Funds by 1/4 percent (possibly by a 1/2%). What does this mean for us in the real estate industry? Hopefully with the lower short-term rates, this will help those with short-term financing tied to the prime rates. In the end remember that the Fed plays a role in helping maintain a good supply of money in the market, but the market is driven by supply and demand.
Indirectly we hope to see a reduction in long-term interest rates and creating more money for the real estate market. According to an article on CNBC today, the CEO's of both Fannie and Freddie are not expecting the market to pull out of the current situation until 2010.
For us as agents that means a weeding out, and a better conviction to making the calls and driving business (Lead Generation). The current situation will create an interesting dynamic, that to a large extent we have seen in our market before, but will add some new twists on how to compete and be profitable.
The good news is that buyers and sellers will need our services more now than in the past. Buyers will need professionals to help them find and price homes reasonably. Buyers remember you should never pay more than the current market. Sellers, you'll need help in determining where you need to be to sell. This current market will only get better for the professional who is not afarid to work! Good Luck!

Saturday, December 8, 2007

Utah Winter Market Watch...2007-2008 Season...Jason Botelho

With approx. 23,000 homes to sell in Utah currently, Buyers are holding all most every card possible (Data from the MLS and estimated FSBO activity). This is a great time to buy.
I was helping with a buyer currently that has decent income, but credit was the issue for him. It is important to remember that even in good times like these for the buyers, they need to have their house in order (figuratively speaking). There are great deals available and banks will be increasingly helpful during the entire winter.
As most of you are aware this is the slow time in our industry and to make it worse banks are having to take back too much inventory! The new proposed legislation will help banks minimize this with freezing interest rates. So many of these homeowners that are forced to sell, will be able to hold on to their homes for the short term. It's impossible to see how this will effect the market, so be cautious with this information. It may be a good thing and help to stabilize the market, or it could have an adverse effect and hurt the free market by imposing governmental restrictions. Time will tell.
Utah is still a great place to live and with the winter in full swing now, the snow season is looking great!!!
As for the Winter forecast, due to the high volume of listings on the market the winter will appear to be exceptionally long, but keep in mind units are still selling and yes homeowners are very overpriced on their respected properties given the market as a whole. This equates to longer days and market and for a lot of Utah sellers this will mean no home sales.
Price those homes to sell and they'll sell! For pricing homes correctly click here.
Have a great Holliday Season! :)