The Woodlands Real Estate Daily

Things are really “hoppin” in home sales with inventory numbers drastically declining from this time last year and buyers literally out-bidding others on some homes with multiple offers. Appraisals are a bit of an issue as certain homes appreciate faster than the comps used on an appraisal will allow.

For example, rather than having 18-19 months of inventory in the high-end homes it is currently at most 12 months. For homes under $300,000 the inventory is down to around 3 months supply. In the mid-range priced homes the inventory is between 2-6 months.

Another factor that throws the numbers off somewhat is that some homes have sat on the market for long periods of time which make the months of inventory seem higher when in fact those homes that are well maintained, updated, good floor plan, in a good location and show well will sell in a matter of days.

Which type of home do you have for sale? If your house has been on the market for some time you may need to change one of the factors above that keeping it from selling.
Call me today if you need any advice on How to prepare your home for the marketplace.

Office: (281) 363-5286 Cell: (713) 702-6334
Fax: (281) 605-5388 www.ferester.com

Article From News Genius Brief:

Wednesday, March 28, 2012 — About one in three real estate contracts were canceled in January, up from 9 percent the previous year. Lowball appraisals are most to blame, agents say.
A recent article at Zillow points out how home owners may be able to improve their appraisal:
Gather about six comps ahead of time. Appraisers will pull their own comparables of recent sale prices to help determine the home’s value, but real estate professionals can walk sellers through at least six comparables beforehand in educating the seller about pricing the home. This can help prepare them for what an appraisal might show later too.
Show off upgrades. The appraiser will inspect the property and sellers and their agents should carefully consider what separate the homes that are similar from theirs. This may include a finished basement, the biggest yard on the block, or maybe its location in a scenic area. Sellers should “respectfully tell [the appraiser] what you know,” treating them as a member of your team, says Sara Stephens, president of the Appraisal Institute. “It will increase the odds of your getting a fair and accurate assessment.”
You can appeal an appraiser. Believe the appraisal was unfair? Most lenders allow home owners to challenge an appraisal they feel wasn’t done correctly, but home owners can just say their home is worth more as their sole justification. Home owners will need to prove an error or omission, such as comps that should have been taken into consideration but weren’t (another reason to review those comps before). Home owners can also take their complaints to the state’s appraisal board if they feel their case isn’t being properly reviewed.

Office: (281) 363-5286 Cell: (713) 702-6334
Fax: (281) 605-5388 www.ferester.com

News Genius Brief Email had an article I found interesting enough to share on how the FHFA proposed a new secondary mortgage market:

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FHFA submits plan to build new secondary mortgage market

By Jacob Gaffney
• February 21, 2012 • 12:40pm

Federal Housing Finance Agency Acting Director Edward DeMarco sent a plan to Congress on how to fix the nation’s mortgage finance market. His solution is to build a completely new infrastructure for the secondary market while contracting activities at the government-sponsored enterprises, Fannie Mae and Freddie Mac.

“No private sector infrastructure exists today that is capable of securitizing the $100 billion per month in new mortgages being originated,” said DeMarco in a letter to Congress. “Simply shutting down the enterprises would drive up interest rates and limit mortgage availability.”

Mortgage bonds, both private and nonagency, trade regularly on the secondary market. DeMarco’s letter indicates that the lack of new private-label, residential mortgage-backed securities is what is missing in a robust housing recovery.

“The absence of any meaningful secondary mortgage market mechanisms beyond the enterprises and Ginnie Mae is a dilemma for policymakers expecting to replace the (GSEs),” the letter states. “Without an alternative market infrastructure that investors could rely on, new mortgages would have been largely unavailable if the Enterprises suddenly had been shut down.”

This new market should be entirely transparent, the FHFA states. Mortgage servicers and bond investors should be able to access information on borrowers and be able to directly track collateral performance. Current pooling and servicing agreements are woefully inadequate and need to evolve, the agency also states, without offering more specifics.

Furthermore, mortgage servicers require more attention, in such a way that competiton is fostered, not hindered. For example, the new secondary market should “take full account of mortgage servicers’ costs and requirements, and consider the appropriate interaction between origination and servicing revenue.”

Home preservation initiatives also factor high in the DeMarco plan, as is compensation for the chief executives of the GSEs. The letter states that the GSEs are unlikely to fully repay taxpayers for $180 billion in bailout funds.

Therefore, it is time to move on to the “next chapter,” according to DeMarco.

The plan, which is more of a broad guideline by its own admission, urges policymakers to get serious about reforming the current secondary markets aways from the GSEs and into this new vision for a stable private market.

“Without further statutory direction, FHFA views the mandate to restore the enterprises to a sound and solvent condition as best accomplished not only through aggressive loss mitigation efforts, but also by reducing the risk exposure of the companies, through appropriate underwriting and pricing of mortgages,” the letter states. “Such actions are consistent with what would be expected of a private company operating without.”

Office: (281) 363-5286 Cell: (713) 702-6334
Fax: (281) 605-5388 www.ferester.com

If our company’s production so far in 2012 is any indication of the market for 2012, our numbers are up 29% from last year’s numbers for February. Good listings are becoming scarce and buyers are appearing transferring in with many different companies.

Get on board and get your house properly prepared for the market and call me for a free market analysis – It’s the time to sell!!!

Office: (281) 363-5286 Cell: (713) 702-6334
Fax: (281) 605-5388 www.ferester.com

TODAY, NEWSGENI.US EBRIEF COMMENTED ON MORTGAGE RATES. QUOTING PART OF THEIR EMAIL BELOW:

Monday, January 30, 2012 — Over the past few months, a spate of good news about the U.S. housing market has led some to think a recovery is finally on the horizon.
The evidence is compelling. It now costs almost as much to rent as buy. Since the housing bubble burst in 2006, home prices have fallen by 33% nationwide — more than they did during the Great Depression. Waves of foreclosures and tighter lending standards have helped drive a surge in rentals. And during the third quarter, the median monthly mortgage payment totaled $698 compared to the median monthly asking rent of $700, according to Capital Economics, citing data from the National Association of Realtors and the Census Bureau. What’s more, the cost of borrowing has fallen to record lows, with interest rates for 30-year fixed rate mortgages hovering around 4%.
Builders are even building again. (Albeit, at a very modest pace and driven largely by construction of multi-family homes.) As a January report by CoreLogic shows, both single-family starts and permits rose at an annualized pace of 15% over the six months ending November 2011. The California-based mortgage data provider also notes that existing home sales nationwide have been trending up, rising 12% higher in November 2011 compared with January 2011. “While we cannot say with a high degree of certainty that 2012 has in store for us, indications based on the latter part of 2011 are that both the broad economy and the housing market are moving toward positive growth in 2012,” CoreLogic wrote in a research note.
That optimism is well-deserved, right? Not exactly.
Since the housing market imploded, analysts have predicted year after year that prices might at long last bottom out. Will it finally happen this year? Perhaps next? Bottoming out necessarily precedes turning the corner — and until that happens optimists should be cautious. Economists widely cite the short-term obstacles weighing down prices. These factors range from high unemployment and household debt to the so-called “shadow inventory,” or all the properties that have yet to come into the market because of pending foreclosures or skittish homeowners delaying sales until prices improve.

FOR THE WOODLANDS MARKET WE CONTINUE TO IMPROVE ON SALES AND IN FACT ARE SHORT ON GOOD INVENTORY WHICH WE HOPE WILL CHANGE AS SPRING APPROACHES.
CALL ME TODAY IF YOU ARE THINKING OF LISTING YOUR HOME. I HAVE A PROVEN TRACK RECORD IN THE WOODLANDS.

Office: (281) 363-5286 Cell: (713) 702-6334
Fax: (281) 605-5388 www.ferester.com

By the end of 2011 the real estate market in The Woodlands had steadily improved and left those looking for housing with much less inventory to choose from. High inventory numbers of 8-16 months steadily declined to approximately: $200,000 – $500,000 homes – around a 3 month supply
$500,000-$800,000 homes – around a 3 month supply
$700,000-$800,000 – around a 8 month supply
Over $100,000,000 – a 12 month supply but way down from last year.

Much of the inventory as well are homes that have had difficulty selling for one reason or another and just seem to linger on the market

It seemed that the high-end took off tremendously towards the end of the year as people decided real estate was a better investment than most other choices.

We expect this trend to continue as more business’ move into The Woodlands leaving buyers scrambling to try and find homes to purchase.

If you are thinking of buying or selling I hope you will call me.

Office: (281) 363-5286 Cell: (713) 702-6334
Fax: (281) 605-5388 www.ferester.com

The year has been a great one for real estate in The Woodlands, Texas overall. I would say we surpassed by a good margin last year’s sales as I know I have. I look forward to 2012 with optimism that things will continue to improve not only in Texas but in the country. And I hope for a better life and peace in all parts of the world. As we enjoy the Christmas season may the true spirit of Christmas be in our hearts. This will be my signing off blog for the year as I go to enjoy my family gathering from around the world at our ranch in the country. All of our children and their spouses along with our nine wonderful grandchildren will be there to roast hot dogs, get roasted marshmallows all over them from head to toe, enjoy nights by the campfire, fish and go on hayrides singing Christmas carols. I hope everyone can spend Christmas with their loved ones and experience the joy of the season. And, may you all have a Happy New Year!

Thanks for reading my blog,

Office: (281) 363-5286 Cell: (713) 702-6334
Fax: (281) 605-5388 www.ferester.com