January 2008 Market Stats

Housing supply (Aborption Rate) is 14.4 months in January, up from last month by 4 months and up by 1 month during the same time last year. A "balanced market" rate is 5-6 months of listing inventory.

Looking back to 1990 through 2008 for the month of January, the sales level; dollar volume of sales and average sales price are at the 1996/1997 levels.

January 2009 sales were down 19.5% from January 2008. The average sale price was down 18.4%.

The active residential inventory continues to decline, down from 2008 and 2007 levels and almost equaling 2006...this is good. Inventory is being reduced, not only by sales, but also by properties being leased. It doesn't matter by which method, but just the result.

Important fact: The average sale price for January 2009 took a dramatic turn downward primarily due to the fact that almost 53% of the sales properties subject to lender approval (i.e. lender-owned properties, HUD homes and lender short sales, where seller owes the lender more than what property is selling for). The number of properties subject to lender approval in January 2008 was 40% and in January 2007 it was 29%.

While properties are still selling every day, we're still stressing to sellers to only put your property on the market if you have to sell. There's still too much inventory to compete with and it's all about supply and demand.

Are You On TWITTER?

I want to invite you to follow me on a free service called TWITTER.

Here's a short, 2-minute video about it:

http://www.youtube.com/watch?v=ddO9idmax0o

Once you watch the video, you can sign up on Twitter and follow me at: http://www.twitter.com/danweis

Help Your Kids & Grandkids Invest In Their Future!

Now is a great time for all parents and grandparents who want to help give their children and grandchildren a real financial head start in life.

Buying a home isn't on the minds of many 20-somethings, but is an excellent opportunity to buy real estate low as a long-term investment. Right now we're seeing an over-supply of homes (many lender-owned, vacant foreclosures as well as short-sale properties) while interest rates are near historic lows and housing prices are very favorable. The affordability of existing homes is at its highest level in many years.

During my past 24 years in the real estate business, the majority of the home buyers I speak with are concerned where they can come up with a downpayment for their mortgage. In the buyer's mind, this is without a doubt their biggest road block. This minor obstacle is easily solved with some creative thinking and a little assistance from mom & dad, grandma and grandpa and even a brother or sister.

As recently as 6 months ago, there were many 100% financing mortgage programs available, but they have all but dried up except for VA loans and USDA loans for qualifying rural properties.

The most popular home loan today for first time buyers is an FHA insured home loan, because FHA only requires a 3.5% down payment. The best part is that the entire down payment can be a gift from an immediate family member. This allows the parents to assist their children to buy their first home much earlier in life and essentially skip the need for them to waste their money on a rental. This can result in huge financial savings for their children and it allows them to build equity much faster than they could otherwise.

A few factors to consider about the current housing market:

• Interest rates are near 40 year lows
• Fixed interest rate home mortgages are readily available
• Mortgages with fixed rates help protect against future inflation
• Home values have fallen which makes it an ideal time to purchase.
• Home ownership often creates stability, security and it can become an investment like savings account.
• When you combine today's lower home prices with the low fixed rate mortgages in decades, it's clear that it is the right time to buy a home.
  

If you'd like to get more information on how you can help your child invest in their future, just pick up the phone and call me at (513) 615-1890 and tell me you read my blog and want to help a family member.

Hire Contractors Carefully!

Getting your home ready for sale for the spring market or just want to quit procrastinating on some home repairs?

Today's buyers want homes in great condition, so before you put your home on the market, fix anything that is showing wear and tear. If you're not an expert handyman, this may mean hiring a contractor.

The National Association of the Remodeling Industry (NARI) says that one of the most important steps in hiring a qualified contractor is checking references. NARI suggests you ask references the following questions:

• Were you able to easily communicate with the contractor?
• Were you pleased with the quality of the contractor's work?
• Did the contractor show up for and begin work on time?
• Was the job completed on schedule?
• Did the contractor fulfill all of the terms of your agreement?
• Would you use this contractor again with hesitation?

These questions will give you insight into whether or not you have the right contractor for the job.

I have been recommending a contractor, concierge-type network that has professionals who can cover just about anything.

I am offering to provide you with a free membership to this service network. When a need arises, you just call or email the network and they will put you in contact with an approved contractor, who will provide you with a bid for your job. You can even get multiple bids, if needed. If you're interested, just email me at dan@danweis.com or call me at 513-615-1890.

Cool Video For Kids & Grown-Ups Alike!

I just watched this great inspirational video called "The Race".

It's a story of a boy and a race, the temptation to quit -- and the inspiration to keep going. It brought tears to my eyes watching this short video. It brings back many childhood memories of how badly I always want to win any race I am in. The thought of not letting my parents or those who love me down -- just kept me going. Those same thoughts are still with me today as a grown man.

To think about it, life is just like a race. Sometimes we would fall down, and it’s okay, the most important thing is do we get up and finish our race or do we just stop our race there? This is certainly one of life’s greatest lesson.

Click here to watch this short 5 minute video: The Race.

I hope you will enjoy the video as much as I did. Let me know and feel free to share your thoughts.

Credit Card Companies May Lower Your Limits & That Can Cost You BIG!

Are you closely checking your credit card statements?

Here's a link to a recent CBS News story about how some credit card companies are unilaterally lowering a consumer's credit card balance (which can lower your credit score) while their other credit card companies, after seeing this, then raise their interest rates, because of a tactic called "Balance Chasing".

All of this can happen without you doing anything wrong!

Click here to watch this eye-opening story: http://www.cbsnews.com/video/watch/?id=4672315n

What The Market Stats Are Saying...

Fifty-six times a day a home sold between January 1 and December 31, 2008. People continue to buy and sell real estate despite the shift in the marketplace.

Housing supply, the Aborption Rate, is 10.4 months, down from last month by 2.2 months and down by .4 months the same time last year. A 'balanced market' in the Cincinnati area is 5 - 6 months of housing inventory - supply and demand.

Looking back to 1990 through 2008 year to date, our home sales levels are at 1996/1997 levels and the average sale price is at the 2002 level.

December 2008 sales were down 20% from December 2007. The average sale price was down 20%.

The active residential inventory continues to decline, 7% less than December 2006...this is good.

The number of homes sold per day has decreased by 16% since last year.

We are living in interesting times. Our current market wasn't created overnight nor will it go away overnight. It's my belief that "Real estate is a long-term investment."

Our Cincinnati real estate market hasn't been as badly hit as areas like Florida, California, Nevada, etc, but we're not immune to the challenges faced by many nationwide.

The reality is: it's a GREAT time for buyers to buy. With lots of homes to choose from, almost historically low interest rates, and favorable housing prices, there may be no better time to buy.

As I've mentioned to home sellers, your home must be priced properly and be in good to great condition to sell. If you don't have to sell, stay off the market.

The bottom line: most of us have never seen a real estate market like this one, but real estate is still moving. So whether you're a possible buyer or seller, closely review your options and decide what's best for you.

If you're a first-time home or condo buyer, join us for our next free Home & Condo Buyer Tele-class on February 11th at 7:30pm. To register, go to: http://www.homebuyingclass.com/.

Do You Want To Challenge Your New Property Tax Valuation?

Many of us have seen dramatic increases in our county tax bills just released in 2009, because of increases in property valuations as well as increases in tax rates.

While some county tax assessment value increases are expected, I've heard of many that appear out of line.

I just found out about a free property tax reduction seminar and the information is listed below:

COAST attorneys have been holding a series of free property tax reduction seminars to train homeowners and commercial property owners how they can successfully challenge their property tax valuations reflected on their January 2009 bills from the County Treasurer. Those seminars were each completely "sold out," with more than 60 persons attending each class. As a result, four new, free classes have been added, and they are filling up quickly as well.

Monday, January 26, 6 - 7:30 PM

Home Builders Association

415 Glensprings Dr 45246

Wed, January 28, 6 - 7:30 PM

Home Builders Association

415 Glensprings Dr 45246

Tues, February 3, 6 - 7:30 PM

Anderson Center

7850 Five Mile Rd 45230

Fri, February 6, 7:30 - 9 AM

Employer Resource Association

1200 Edison Dr 45216

Mon, February 9, 6:00 - 7:30 PM
HORAN Building

4990 E. Galbraith Rd 45236

RSVP to Gretchen Stevenson at:

gws@fssp-law.com or call 513-533-2730.

Depending on which county you live in, it's important to not let your challenge time expire. Go to your county web site to find out within what time frame you can challenge property valuation. Here are the county auditor web sites:

• Hamilton County - http://www.hcauditor.org/
• Butler County - http://www.butletcountyohio.org/
• Clermont County - http://www.clermontauditor.org/
• Warren County - www.co.warren.oh.us/auditor/index.htm

I hope this gives you some direction in what steps to take to challenge your valuation.

How One Client Saved $3,500 in Future PMI Premiums!

When interest rates first started dropping back in December, I was letting clients know it might be a good time to re-finance their mortgage to lower the term or rate.

One of my clients, who has lived in their home for 6 years, still had a great interest rate, but they were sick and tired of paying their monthly private mortgage insurance (PMI) premium and wondered how they could get rid of it from their payment.

Most mortgage programs require a private mortgage insurance premium be added to a mortgage payment when a consumer is putting less than a 20% downpayment on a property.

Here's how I responded to them:

You've got a great rate. The only question I would have is how much is the PMI portion of your payment each month? There's no reason to be paying PMI, because loan balance is way under 80%. I would talk with (your lender) to see if you pay for an appraiser, approved by them, would they drop the PMI from your payment. If they aren't willing to do that, you may want to shop around.

You see, depending on what paperwork you sign at your closing, some lenders typically won't announce to you when you have 20% equity in your home. They want to keep receiving the monthly PMI premium. Now, with some recent rule changes, they may be required to remove the PMI once you get to the 78% LTV (loan-to-value) or in other words, when you have built up 22% equity in your home.

Well, I just heard back from my clients. They called (their lender) and the PMI has been eliminated. Their amortization schedule showed the PMI (by doing nothing) would not have been eliminated until Oct 2014, but their current principal balance enabled them to get rid of the PMI and save them $600 per year.

They picked up the phone and now they won't have to needlessly pay a total of approximately $3,500 in PMI payments over the next 70 months.

Congratulations! They took action and now have some 'new-found' money!

If you've owned your home for the past 6 years or longer, are still paying private mortgage insurance premiums (PMI) as part of your monthly mortgage payments and think you may have 20% or more equity in your home, then take action...pick up the phone and call me at (513) 615-1890 or email me: dan@danweis.com with any questions you have before you start talking with a lender. I'm here to help you.

Beware of Re-Financing Rip-Offs!

Are you thinking about re-financing your current mortgage?

Before you sign any paperwork or even get the process started, please contact me and let me take a few minutes to review your situation with you.

It's too easy right now with starving, fast-talking mortgage salespeople trying to tie you into a new loan that could end up costing you thousands of additional dollars.

You could lose hundreds of dollars in an upfront-paid, application fee if your loan doesn't go through!

Interest rates are near historic lows, but they can widely vary based on the type of mortgage program you qualify for, your credit score, your downpayment, an acceptable appraisal, etc.

I've heard stories about well-known mortgage lenders as well as mortgage companies I've never heard of before.

It's possible for you to:

• NOT get the interest rate you thought
• NOT be quoted the correct closing costs figures
• NOT get the mortgage term you thought
• NOT get the fixed rate program you thought
• NOT get a competitive interest rate
• NOT be told there's a pre-payment penalty

Let's see if now is really the right time and situation for you to re-finance your current mortgage. I want to make sure you don't get taken advantage of.

Please pick up the phone and call me at 615-1890 or email me at: dan@danweis.com.