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.

Another Reason, On Top of 4.5% - 5.5% Rates, To Buy A Home!

Congress recently passed the Housing and Economic Recovery Act of 2008.

This act provides for a possible tax credit up to $7,500 for qualified, first-time home buyers purchasing homes priced at $75,000 or greater (tax credit equal to 10% of the purchase price up to a maximum of $7,500. Contact your tax advisor for specific program details and tax advice.) The tax credit is paid back to the federal government interest-free over a period of 15 years.

Program eligibility:

• first-time buyer who have not owned a home within the past three years
• income limits: single taxpayer with adjusted gross income of less than $75,000 and married couples filing jointly with adjusted gross income of $150,000

For more information on the tax credit, go to: http://www.federalhousingtaxcredit.com/.

You May Qualify For 100% Financing on a Rural Home!

The USDA Rural Development Guaranteed Mortgage is still available and is a great program for first-time, move-up or low to moderate income home buyers, who have no money for a down payment. Properties in open country and in areas with populations under 25,000 may be eligible.

Here's some of the details:

• loan amounts up to $417,000
• closing costs my be included in the loan amount
• no PMI - private mortgage insurance
• rates comparable to conventional fixed programs

To see if you qualify for the USDA Rural Development program, contact Rick Pilger of Union National Mortgage at (513) 234-4987 or email him at: rpilger@unmco.com.

We will also need the property address you're interested in to check and see if it's qualified property under the program.

$200 Million Cincinnati Street Cars?

I was in my car and happened to be listening to Bill Cunningham on 700WLW. He was talking to Charlie Winburn about the Cincinnati City Council's vote on the $200 million Street Car system.

City council voted 8 - 1 in favor of the Street Cars.

Unbelievable!

They completed tossed out the Trolley car idea, which in my mind, has many advantages over the street car system.

Here are just a couple thoughts:

• trolley is more flexible - can change street routes
• only installing tracks on certain streets limits the routes used
• downtown businesses would suffer through construction
• how long will ridership stay viable?
• when would the tax payer have to start subsidizing?

I wonder if this is a project that can be put in front of the public and voted on by the voters?

More to follow!