Mondays Mission

Do you operate from a plan everyday? Most people dont (this includes me!). So many of us struggle when we really do not have to. A effective plan can help you, your family and your business. Here are 3 simple components in every plan:

1. Have a goal or an outcome.
2. What disciplines are essential in obtaining your goal(s)?
3. What improvements do you need to make?

If you fail to plan then you are planning to fail. I cannot remember who coined this phrase but I am certain many of us can relate. Having a plan allows us to work smarter, not harder.  However,  a plan does not guarantee that we will be productive but it does bring an element of accountability that is designed to keep us on the right path.

Yesterday, millions of people witnessed the result of a well designed plan, set in motion by individuals that had a desired outcome, a heart of discipline and sacrifice, and the willingness to make the necessary improvements to bring a championship to a city in that has endured tragic loss and destruction.  Congratulations to the City of New Orleans and the entire Saints organization.

[Via http://toddcrist.wordpress.com]

Edmonton Real Estate Stats for January 2010

Single family homes sold through the Edmonton Multiple Listing Service® System sold on average for the same amount in January as at year-end while condominium prices dipped 2%. Month-to-month sales slowed by 6.8% as compared to December but the number of new listings in January doubled the December numbers. 

The average* residential price was $314,783 for January, down 1.4% from last month and down just 0.7% from a year ago. Single family home prices on average were stable increasing minutely from $366,761 in December to $367,747 in January. Condominium prices dipped just 2% in the month from $244,174 to $239,006. Duplex and rowhouse prices were up 1.5% to $300,563.

“There will be month-to-month fluctuations in prices for all types of properties,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “We expect that the local market will continue to be robust and prices will trend upwards through the year.”

Compared to December, housing sales were down in January with 524 single family sales and 288 condominium sales. Total residential sales were 884 units – 154 ahead of last January. There were 2,199 residential listings added during January resulting in a 40% sales-to-listing ratio and a month-end inventory of 4,864 homes. The average days-on-market was 57 days. Total sales (including residential, commercial and rural properties) in January were valued at $315 million (up 19% from last year).

“While the low prices may have motivated some buyers, the continuing low interest rates are probably a bigger factor for first time and repeat buyers,” said Westergard. “The inventory increase shows that current owners are poised to enter the market and to offer their homes for sale. Buyers and sellers should consult their REALTOR® to work out an appropriate strategy for their situation.”

Highlights of MLS® activity

January 2010 activity Record for
the month* % change from
January 2009 Total MLS® System sales this month 990 24.20% Value of total MLS® System sales – month $315 million 18.70% Value of total MLS® System sales – year $315 million 18.70% Residential¹ sales this month 884 21.10% Residential average price $314,783 -1.40% SFD² average selling price – month $367,747 4.20% SFD median³ selling price $356,000 1.30% Condo average selling price $239,006 0.10%

¹. Residential includes SFD, condos and duplex/row houses.
². Single Family Dwelling
³. The middle figure in a list of all sales prices

* Average prices indicate market trends only. They do not reflect actual prices, which may vary.

Provided by www.CliffTurner.ca

[Via http://edmrealestate.wordpress.com]

Shomler Funding Team Welcomes Jessica Chestnut!

As some of you know – Occupationally I am an AE for a Wholesale Mortgage Lender. I have my own funding team and I am delighted to share with you that Jessica Chestut has joined my team as an AE with a focus on Outsides Sales!

Jessica has spent the past 4 years working in the wholesale mortgage business as a CSR (Customer Service Representative). Jessica’s extensive experience working in wholesale lending will definitely  be an asset to my team and to our clients!

Catherine (my CSR) and I are excited about the energy and commitment to customer service  that Jessica will bring to our team!

[Via http://stevenshomler.com]

Weekly Mortgage Rate Update

For the week of February 1-5, the 30 year fixed mortgage rates averaged 5.01%.  This was up a little from the previous week when the average was below 5% at an average of 4.98%.  Compare this to 1 year ago, when the average for the same week was 5.25%, proving that now is still a great time to buy a home.  In addition to the low interest rates- buyers and sellers- don’t forget about the tax incentives of $6500 and $8000 available to home buyers.  However, time is running out for the tax credit, as well as the very low interest rates, I am afraid.  Experts are predicting that interest rates will climb back to around 5.5%-6% during 2010,  which by the way, still is not a bad rate at all!   So if you are sitting on the fence, trying to decide whether or not now is a good time to buy a home, it is time to get off.  The low rates and tax incentives will not be around forever.

[Via http://kellysullivan1.wordpress.com]

It looks like waiting to get mortgage financing could be dangerous to one’s financial health!

Quarterly Rate Chart

Hello-
It’s often very difficult to predict where mortgage rates are headed and most of the time when asked where rates are headed the best answer is “they’ll go up and they’ll go down.” In today’s market however there’s an event on the horizon that almost certainly will drive mortgage rates up- the Fed will stop buying mortgage backed securities (MBS) this spring. Buying MBSs has been an effective way to hold mortgage rates down.

Many experts are expecting rates to jump a half a point or more after the program wraps up at the end of March.
Take a look here to see how historically low rates are today. It looks like waiting to get mortgage financing could be dangerous to one’s financial health!

[Via http://primelendingutah.wordpress.com]

President Obama Comments On Vegas

2/2/2010 at a press conference in New Hampshire President Obama refers to Vegas.
President Obama’s statement from a White House transcript:
“Responsible families don’t do their budgets the way the federal government does. Right? When times are tough, you tighten your belts. You don’t go buying a boat when you can barely pay your mortgage. You don’t blow a bunch of cash on Vegas when you’re trying to save for college. You prioritize. You make tough choices. It’s time your government did the same.”

Later that day President Obama responded:
“I wasn’t saying anything negative about Las Vegas,” Obama’s letter stated. “I was making the simple point that families use vacation dollars, not college tuition money, to have fun.  There is no place better to have fun than Vegas, one of our country’s great destinations.”

Rep. Shelley Berkley, Rep. Dina Titus, Senator Reid, and Las Vegas Mayor Oscar Goodman have all responded to the President regarding the comments.

President Obama is expected to vist Las Vegas, Feb 18 to campaign for Senator Reid.

[Via http://prvegas.wordpress.com]

Strategic defaults on the rise

Strategic defaults are on the rise. The number of “strategic defaults” doubled from 2007 and 2008 (588,000 in 2008) and now comprise more than a quarter of mortgage defaults. I’ve also seen both 16% and 17% quoted.

So what is a strategic default? A strategic default is when a homeowner (presumably includes investors) walks away from his mortgage payment when he or she is still fully able to pay.

Strategic defaulters get special scorn for their actions. Never mind that it would take fully 60 years, in one example, to recoup their losses, you are a deadbeat for walking away according to Henry Paulson (even though it’s a “good business decision” in other arenas).

I wanted a more precise definition of is considered a strategic default, while I’m sure there are situations where it is perfectly clear that the borrower could afford the mortgage, it’s not always a black and white scenario. What if you could scrape together the money every month but it required a second job to do so? If you decided that after a year of insane workweeks you couldn’t keep it up, would you fall into the “strategically defaulting” camp?

Per studies done by Experian and Oliver Wyman people who strategically default have a different profile than the classic borrower in trouble. Borrowers who are strategic defaulters will typically have a high credit score and suddenly default on the mortgage without warning, but on no other debts. Compare this to the typical pattern of financial distress on multiple debts, where the mortgage payment is the last thing that a borrower will give up paying on. Strategic defaulters are typically concentrated in the negative equity markets and often have large mortgage balances.

The exact criteria that Experian-Wyman used to mine 24 million credit histories to find the 588,000 strategic defaults in 2008, is the following: “We define such borrowers as those who rolled straight from current to 180+ [days past due], while staying current on all their non-real estate debt obligations, 6 months after they first went 60 [days past due] on their mortgage.” With this definition, my “second job” scenario I outlined above, would be considered in scope.

The recommendation is to not offer these borrowers loan modifications. I guess the option of offering to reduce the principal balance still appears to be a foreign concept to the lenders.

[Via http://realestatecash.wordpress.com]