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