Archive for October, 2008
Stafford and Fredericksburg Market Update
October 17th, 2008 categories: Market Trends, Relocating
“Figures don’t lie, but liars figure.”
Mark Twain
As we’ve discussed with numerous reluctant home sellers during the past three years, nothing speaks louder, when it comes to assessing the value of your home, then recent home sales. In other words, the market is the determiner of your home’s value. Yes, it is as simple as supply and demand.
The slide in home values has gone on long enough that even those who’ve been hiding under a rock during the current mortgage crisis have come to realize that selling a home in today’s market is tough going. Prices continue their descent, coupled with an increasing inventory. But, fortunately, accurate market data provides us the information we need to draw important conclusions and make intelligent decisions when preparing to sell our home.
Altos Research, which we use to track local market data, plots current data in graph form, which makes it easier for many of us to interpret. As they say, a picture is worth a thousand words.
The first chart indicates the average days on market for Fredericksburg and Stafford zip codes. The snapshot indicates the change in days on market (DOM) for the last sixty days. Today’s market is fluid, if nothing else. Unfortunately, the normal absence of buyers that characterizes this time of the year, now coupled with the tightened credit rules, has led to an even greater number of days that homes remain on the market.
In just a couple of months, the average days on market increased by over twenty days for both indicated locations. Similarly, for both Fredericksburg & Stafford, prices continue to decline as days on market increase.
While these charts provide accurate data points and indicators of the local market, they are averages. From home to home, and neighborhood to neighborhood, there will be variances. That depends on the conditions and quality of the neighborhoods, and the condition, features, and appeal of the individual homes.
Having said that, in the current market, these trends are anything but comforting to sellers. But, more importantly, they keep you aware of some of the obstacles you need to overcome to successfully market your home. And, with that in data in hand, sellers are certainly better equipped to meet the challenges of preparing their home for the market with their eyes wide open.
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That’s Why It’s Called the Sunshine State
October 8th, 2008 categories: Real Estate News
A landmark settlement was reached earlier this week between Florida and Countrywide Financial Corp. The agreement establishes the country’s most comprehensive mortgage-modification program, resolving allegations of predatory lending that Florida and ten other states have made against Countrywide. Those states participating in the agreement with Florida are Arizona, California, Connecticut, Illinois, Iowa, Michigan, North Carolina, Ohio, Texas, and Washington.
The agreement calls for Countrywide to provide as much as $8.7 billion in loan relief, assisting some 400,000 borrowers across the country. The program is aimed at borrowers who had secured what are termed as “the most risky loans.” Those include adjustable rate mortgages (ARM) that feature what’s been characterized as a teaser rate to attract buyers, whose rate then rose significantly after expiration of the teaser.
While this latest agreement between Countrywide Financial Corp. and its borrowers is a step in the right direction, it is merely a first step in attempting to rescue the economy from the mortgage crisis Tsunami. Presidential politics aside, there are miles to go before we right the mortgage mess ship. With projected foreclosure estimates in the millions, much more relief borrower relief is expected, and, according to many of our leaders in Congress, help is on the way. As they say, better late than never.
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