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Sensationalism:
Don't
believe everything you hear! The media beats us up with bad news about
the economy daily. Texas and specifically, Central Texas and the Austin
Area have repeatedly proven that we don't fall into the "norm"
when it comes to the news. Real Estate is LOCAL and we have fared better
than most of the nation through this entire crisis. Note the article at
the bottom of the page, the Texas economy is better than the rest of the
nation! Matter of fact the Austin Statesman
reported on August 4th: "Austin Economy is better than the
Nation". We continually receive accolades, awards, and top
rankings from different businesses across the land. We are continually
being named one of the best real estate markets in America and it seems
as if someone is always talking about how Austin is the best place in
the U.S. to live. Alamo Title has a list of some of the positive news
you don't hear much about, click here: Austin
Accolades. Now, I'm not glossing it over, it is still tough out
there, but not nearly as tough as it is in some areas of the nation.
We'll all pull through this and be all the smarter for it! Think
Positive!
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Bastrop/Smithville Monthly Statistics
Well,
this is probably not news to most of you, but in contrast to last month,
we are not doing as well as the Austin market this month. They saw gains
and we are seeing losses. We have more listings and less sales this
month. Good news is I do see it starting to pick up a bit.
Click
here for full statistics
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Buyer's
Corner
Buyer's,
you have the edge in this market. As you'll note in the Seller's Corner,
the homes you have to choose from are truly the "cream of the
crop", and they're priced very well to be competitive in this
Buyer's Market. The Feds have put a hold on interest rates, but as
you'll note in the column below, that does not necessarily affect
Mortgage Rates, they could easily rise if the market rises.
We
are lucky to have USDA financing available in almost all of our areas
because we are "rural". This allows $0 down and you can ask
the seller to help with closing costs, making it possible for a true $0
move-in. Also, FHA financing is available to many homes/buyers allowing
for a 3.5% down payment and seller's assisted closing costs are allowed
as well. The article at the bottom explains how lenders are beginning to
ease their terms for loans. It doesn't get much better than it is
now.
If
you've ever thought about investment property, now is definitely the
time for that. Buy it, fix it, and rent it until the market comes back.
Rental properties in our area are much too hard to come by and therefore
bring higher rental rates.
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Seller's
Corner
As you can see from the chart above. Sellers are the ones feeling
the pain in this market. The homes that are selling are the "cream
of the crop". The buyers have plenty to pick from and they are
priced below value, making competition tough.
Make
sure your home shows as well as, if not better than the competition.
Clean out the clutter and make any necessary repairs. Open, clean and
bright is the name of the game here. Walk in and look at your home as if
you were a buyer. Rearranging the furniture can make a room look larger.
Get rid of extra furniture and personal effects (I'm not a fan of this,
but "show" homes sell better than lived-in homes).
Most
importantly, make sure it's available to show. Most buyers won't give
you a 2nd chance. If they're out looking at homes in your area one day,
make sure yours is one of them! Lastly, make sure you're priced
correctly. Dropping the price, even if it's minimal, will put your
listing in front of buyers again with a change in the MLS. If you want
to see what the buyers are seeing, call me and we'll go look at your
competition.
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It
has been a roller coaster for the last three weeks in financial markets.
The European Union is dealing with Greece and now the down grade
from S&P on US debt and the governing body in the US can’t seem
get on the same page to make a simple debt ceiling decision.
To top it all off Ben Bernanke, chairman of the Federal Reserve,
has made it clear that he will not consider raising the Federal Funds
Rate until 2013. So, what does all
that mean for mortgage interest rates?
I
get a lot of questions when the FED talks about lowering interest rates
dealing with a borrowers current rate lock.
The Federal Funds Rate is not directly correlated with
mortgage interest rates. In
plain English the Federal Funds Rate is what it costs a bank to borrower
money. The rate has been at 0.25%
since November 2008 and has not moved. When
a bank needs some extra capital to make additional loans or to cover
certain short term transactions they can borrow the funds from the FED.
Mortgage
rates are based on Fannie Mae and Freddie Mac coupons that are sold on
the secondary market. They are
individual fixed rate securities that have a yield a lot like the 10
year bond. So this is a long term
debt for most investors and are not involved in the day to day banking
asset allocation.
How
does all of this effect us, well the more investors that move their
money into less risky fixed rate investments (bonds) then the lower the
rate of return. The lower the rate
of return the lower the rate that has to be charged in the open market,
which means lower mortgage rates. If
investors move more of their money into higher risk higher return
investments (equity/stocks) the higher the rate needs to be on the fixed
income (bonds) to compete with the rate of return on the equities.
That means higher mortgage rates.
Clear as mud…
Hugo
Madrid
Branch Manager
Ameripro Funding
512-426-9225 direct
Hugo@fpftx.com
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Worth
Repeating:
Things
That Look Like
Foundation Problems
But
Aren't
Oh,
my gosh! I've got sticking doors or windows, cracks in my walls inside
and out - it must be a foundation problem. Well, maybe not. Don't call
that expensive foundation repair company just yet. There is a whole
variety of what engineers call "non-foundation distress"
problems in three general categories that look like foundation
problems.
The
Foundation Performance Association has published a very good chart that
lists more than 25 things that may occur in buildings or their
foundations that are sometimes incorrectly attributed to foundation
movement. The chart suggests more probable causes of the problems, the
possible reasons for such problems and makes repair
recommendations.
To
see the chart CLICK
HERE
 Home Inspection Service
Dianna Burley
Professional Inspector
TREC
#6847
512-585-4610
For more information visit D&S at: www.dshomeinspection.com
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Other
Articles of Interest:
Now
is the Time to Invest in Central Texas
Texas
Economy Better than Nation
Home
Lending at Its Lowest Point in 14 Years
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Bastrop County School Ratings:
The TEA
recently made changes to the way school ratings are calculated,
prompting the number of Unacceptable campuses to jump from 104 to 569.
They are now including special education grading and drop outs. They
also raides the standards in math and science 5 pts, among others..
Below are the local ratings, I can send you other areas if you like as
well.
2011
School Ratings
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