What's Stopping Buyers from Buying?

Buyers across the country have been holding off from making a home purchase. This is, in part, the fault of the media and the "gloom & doom" scenarios they are painting.

While I am not minimizing the economic effect on our country, not all markets are the same and you can't paint them with the same broad-stoked brush. Commentators like Suzie Ormond are proponents of the "holding off" position and I can respect her conservative approach to a point but I still believe that right now is the best time to buy a home.

In our area, Monmouth and Ocean County, there are pockets of markets that have hit bottom already and have started to increase the selling prices. Right now today interest rates are extremely low and housing prices are at their lowest point in 8 years and I can't see any reason for waiting especially if you think the prices will fall even lower.

Now I do not have crystal ball. If I did I would be rich and enjoying a Bahama Mama on the beach. Unfortunately that's not the case! But I want to make a point that the huge variable here is interest rates and where they may be heading.

Take a case in point. If you were to wait for that $250,000 home to drop 3% and the interest rates went up just 3/8% you would have lost all of the savings you would have gained by waiting.
I don't know about the buyers out there but I believe a bird in hand is worth more than two in the bush! Which means buy now and know what your rate would be as opposed to rolling the dice hoping the rates would be the same AND the price of homes will still drop.

Veltri Blog

This is a great new addition for Veltri & Associates, Realtors. Al has once again jumped to the forefront in creating a blog for the online community. This is the wave of the future, and we all need to 'ride the wave'

FannieMae Helps Investors to Buy More Properties

On February 6, 2009 FannieMae published Announcement 09-02 which makes updates to Multiple Mortgages to the Same Borrower Policy.

This is a good thing because it allows investors to become more active. Last year FanneMae reduced the number of properties a single borrower could mortgage under it's guidelines to 4 units. This announcement has increased the number this year to 10 properties!

I guess they figured they made a mistake? Investors who have maximized their buying potential under last years guidlines can now take advantage of purchasing "short sales" and "foreclosures". The effect can be that the inventory will be reduced and that will help stabilize prices.

There are some strict requirements for borrowers such as 720+ FICO scores, 75LTV, and new reserve requirements.

Anyone interested in receiving a copy can call any of our offices and request a copy be sent.

Real Estate Careers

Most people think that having a career in real estate right now is not a good choice. I couldn't disagree more. Real estate, like any other profession, can be very rewarding. I can say without any hesitation that this is an industry that has no glass ceiling. Your earnings will be directly proportionate with the time and effort you put into it.

People are always moving. Be it a growing family, relocation, retirement and the like there is a constant need for professional real estate sales associates.

It's a great way to start your own business with little money and having support of a good Broker. Our company, for instance, fosters individuality, professionalism and ethics. We are constantly looking for sales executives that have been downsized from corporate America and love what they do without all the corporate competitiveness. The only competitor you have is yourself!

Obama Stimulus Plan

Here is my take on the Obama Stimulus Plan as it relates to our local real estate market.

There is one significant items that helps first-time buyers only. It's the $8,000 tax credit. This will help buyers by giving a credit that can reduce or eliminate their income tax liability. Balances not used in the year of purchase can be carried over until credit is used up.

It can be used for single family homes, condos, co-op's that will be your primary residence.

The full credit is available for purchasers who make less than $75,000 (single) $150,000 (joint) and phases out after $95,000 (single) $170,000 (joint).

Here's the catch. If the home is sold after three years of purchase the credit is recaptured on sale.

This applies to home purchased between January 1, 2009 and December 1, 2009