First the bad news: New home sales have hit a 7 year low last month. This is not great but was not totally unexpected given the current state of real estate.
There is some good news out there that bodes well for the future of the market, however. First, the yield curve is steepening indicating less of a risk of a recession. Next, lenders are going through with some big mergers and acquisitions which is another positive sign for the economy in general. And finally, the Federal Reserve reported that there are no outstanding loans to lenders at the discount window.
These three things are positive because they show that the Fed's moves have helped the market finally start digesting the bad subprime situation, recession isn't as big a worry to increase the housing problem, and if people are still employed they will eventually get around to buying real estate again. So, today was a good day as far as news goes.
Your comments are always welcome!
Brought to you by Professional Mortgage Group, Inc. in Columbia, Missouri.
Thursday, September 27, 2007
Tuesday, September 25, 2007
Market News
I have had several discussions with people lately regarding the market and the recent rate cuts the FED made. Many thought rates would immediately drop when news hit the wire that the FED cut the Federal Funds rate and discount rate. Well this obviously that not happened and people are wondering why! Keep in mind the rates that were cut are ones that affect the mortgage market, but are not directly the rates offered to customers. It will take a little time to see what actually happens and we can only hope more will be done.
On another note, new reports came out today regarding the August market and in summary here is what was reported:
1. Existing home sales fell for the sixth month in a row and are now at a 5 year low!
2. Inventories rose to an 18 year high!
3. Home prices in 10 major cities are falling at the fastest rate in 16 years!
4. Sales of existing homes in the Mid-West fell 5.2%.
They did note that mortgages have become a little more affordable and available than they were in the worst days of August. This means that the coming months numbers could fair a little better. Apparently numerous sales contracts fell through in August due to the mortgage market turmoil and guideline changes.
On the local front an article ran in the Columbia Tribune covering local building permits.
According to county records, permits for single-family homes rose from 331 in 2002 to a peak of 378 in 2004. By 2006, however, the number had fallen to 232. Mid-year permit numbers are down in the county about 30 percent compared with last year.
City records reflect similar trends, with a peak of 1,239 single-family home permits in 2005 dipping to 675 last year
This shows that builders and lenders are pulling back, but as you can see the surplus of homes on the market must be taken care of before things return to normal.
You can read more about these 2 topics at
http://www.marketwatch.com/news/story/glut-unsold-homes-rises-18-year/story.aspx?guid=%7BC02E6F86%2D2D23%2D4D45%2DA83D%2DBF973D6432B9%7D
and
http://www.showmenews.com/2007/Sep/20070925News002.asp
Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"
On another note, new reports came out today regarding the August market and in summary here is what was reported:
1. Existing home sales fell for the sixth month in a row and are now at a 5 year low!
2. Inventories rose to an 18 year high!
3. Home prices in 10 major cities are falling at the fastest rate in 16 years!
4. Sales of existing homes in the Mid-West fell 5.2%.
They did note that mortgages have become a little more affordable and available than they were in the worst days of August. This means that the coming months numbers could fair a little better. Apparently numerous sales contracts fell through in August due to the mortgage market turmoil and guideline changes.
On the local front an article ran in the Columbia Tribune covering local building permits.
According to county records, permits for single-family homes rose from 331 in 2002 to a peak of 378 in 2004. By 2006, however, the number had fallen to 232. Mid-year permit numbers are down in the county about 30 percent compared with last year.
City records reflect similar trends, with a peak of 1,239 single-family home permits in 2005 dipping to 675 last year
This shows that builders and lenders are pulling back, but as you can see the surplus of homes on the market must be taken care of before things return to normal.
You can read more about these 2 topics at
http://www.marketwatch.com/news/story/glut-unsold-homes-rises-18-year/story.aspx?guid=%7BC02E6F86%2D2D23%2D4D45%2DA83D%2DBF973D6432B9%7D
and
http://www.showmenews.com/2007/Sep/20070925News002.asp
Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"
Monday, September 24, 2007
Rural Development Financing
I thought I would take a moment to talk about a very unique and great lending program especially for the mid-west. USDA or "Rural Development" financing has been a growing trend throughout the lending community, why? Because of it's unique features and geographical friendliness. First, let me say that this loan program offers loan-to-values of up to 102% of the appraised value with awesome rates and no PMI (private mortgage insurance). Another unique feature surrounding this program is the ability to build in needed repairs. For instance, should the property need a new roof, siding, gutters, carpet, or furnace etc. you can build these costs into the loan and have these items fixed after closing. Fannie Mae and Freddie Mac currently do not offer this type of flexibility on there core products. The only negativity I see in this program is that it is "rural" specific, meaning homes within city limits or not in "development" areas do not qualify for USDA financing. However, areas like (for those of you familiar with Central Missouri) Fulton, Ashland, Boonville, Mexico, Auxvasse, Marshall etc. are excellent candidates to take advantage of such a great program both for the borrower and community.
In fact Missouri's USDA Rural Development State Office is located in Columbia, Missouri at 601 Business Loop 70 West Parkade Center Ste. 235. This is logistically an advantage for lenders and clients in Mid-Missouri because one; the USDA obviously sees the benefits and shear numbers of rural areas located around Columbia and two; it's right at our back door. My dealings with the USDA have been very pleasant as they have always helped both myself and my clients needs. The best factor about this program is that there is little to no "red tape" in order to qualify or reserve these funds.
Should you have any questions about this program please visit the USDA website at www.usda.gov or contact Profesional Mortgage Group at www.pmg-inc.net!
Brought to you by Professional Mortgage Group
Your Columbia Missouri Mortgage Broker
In fact Missouri's USDA Rural Development State Office is located in Columbia, Missouri at 601 Business Loop 70 West Parkade Center Ste. 235. This is logistically an advantage for lenders and clients in Mid-Missouri because one; the USDA obviously sees the benefits and shear numbers of rural areas located around Columbia and two; it's right at our back door. My dealings with the USDA have been very pleasant as they have always helped both myself and my clients needs. The best factor about this program is that there is little to no "red tape" in order to qualify or reserve these funds.
Should you have any questions about this program please visit the USDA website at www.usda.gov or contact Profesional Mortgage Group at www.pmg-inc.net!
Brought to you by Professional Mortgage Group
Your Columbia Missouri Mortgage Broker
Friday, September 21, 2007
Featured Agent
This week's "Featured Agent" is Meaghan Kingdon with the Tracy Arey Group. We have had the opportunity to work along side Meaghan Kingdon over the last several months and we have been extremely impressed with her and the Tracy Arey Group. Meaghan is very professional in every aspect of the real estate transaction from; returning phone calls, emails, and her willingness to meet with either us or the clients day or night. Not only is Meaghan very professional in every aspect of her job but she brings with her a very refreshing sense of enthusiasm. If you are looking for a "GREAT" realtor call Meaghan Kingdon today. Thank you Meaghan for caring so much about your clients and taking so much pride in your job. We truly appreciate your business and look forward to working with much more in the future.
Brought to you by Professional Mortgage Group, Inc.
Columbia Missouri 65202
http://www.pmg-inc.net/
573-777-1198
Brought to you by Professional Mortgage Group, Inc.
Columbia Missouri 65202
http://www.pmg-inc.net/
573-777-1198
Rates Worsen
Well, what was seen has a positive move has now hurt mortgage rates. Why? Because companies and individuals are pulling money out of the bond market and investing it in the stock market. This drives the yield down on bonds and therefore raises rates, yields and rates move in opposition.
Before the federal funds rate cut, mortgage rates were holding steady at 6.375% and today's rates are at 6.50%. So for the time being rates are actually increasing due to an over stimulating stock market. My personal belief is that the market is WAY over valued right now and this is truly hurting mortgages rates. Do not let the stigma of a "rate" reduction fool you mortgage rates are determined by numerous factors many of which are out of our control. At times you have to be an economical genius to have enough foresight to see what rates will do.
The biggest concern to me is over coming the negativity currently surrounding the housing market, although the government meant well the current impact on this market is actually further hurting the mortgage woes and the mind-set surrounding it!
Brought to you by Professional Mortgage Group
Your Columbia Missouri Mortgage Broker
Before the federal funds rate cut, mortgage rates were holding steady at 6.375% and today's rates are at 6.50%. So for the time being rates are actually increasing due to an over stimulating stock market. My personal belief is that the market is WAY over valued right now and this is truly hurting mortgages rates. Do not let the stigma of a "rate" reduction fool you mortgage rates are determined by numerous factors many of which are out of our control. At times you have to be an economical genius to have enough foresight to see what rates will do.
The biggest concern to me is over coming the negativity currently surrounding the housing market, although the government meant well the current impact on this market is actually further hurting the mortgage woes and the mind-set surrounding it!
Brought to you by Professional Mortgage Group
Your Columbia Missouri Mortgage Broker
Wednesday, September 19, 2007
The FED Cuts the Federal Funds & Discount Rate
As expected the FED cut the Federal Funds rate and the discount rate. A bit unexpected was that they cut them both by .50%. This will definitely not be a fix for the slumping housing and mortgage market, but it will be a nice boost. It is yet to be determined the exact effect these cuts will have on mortgage interest rates in the days to come, but we can most certainly expect some positive effect! Interest rates were already reasonably low and the main problems still are liquidity and a surplus of housing inventory.
Liquidity-
There must be enough money available to make new loans! Many companies have folded and banks and investors are leery to invest money into the mortgage market. Trust must be rebuilt between buyers and holders of debt.
High Inventory-
Until the surplus of homes on the market is liquidated, times will be tough! The high amount of foreclosures are only adding to this surplus. Once this inventory is sold off, things should get back to normal.
With that being said , the FED made a bold statement that there is help on the way! Finally there is some good news to report in this crazy market and we can all keep our fingers crossed that this is only the beginning of what lies ahead!
Brought to you by:
Professional Mortgage Group Inc.
"Your Columbia, MO Mortgage Broker"
Liquidity-
There must be enough money available to make new loans! Many companies have folded and banks and investors are leery to invest money into the mortgage market. Trust must be rebuilt between buyers and holders of debt.
High Inventory-
Until the surplus of homes on the market is liquidated, times will be tough! The high amount of foreclosures are only adding to this surplus. Once this inventory is sold off, things should get back to normal.
With that being said , the FED made a bold statement that there is help on the way! Finally there is some good news to report in this crazy market and we can all keep our fingers crossed that this is only the beginning of what lies ahead!
Brought to you by:
Professional Mortgage Group Inc.
"Your Columbia, MO Mortgage Broker"
Tuesday, September 18, 2007
Fed Day Is Here!!!
The long awaited "D-Day" is here. At 1:15 CST time the Federal Reserve will decide what to do with the federal funds rate, a key component to affecting interest rates, and quite possibly even the discount rate, the rate at which banks can borrow money from The Federal Reserve. Many expect the Fed to reduce the federal funds rate by at least .25% and some are optimistic about a .50% reduction. At the same time in an effort to again try and improve market liquidity and the "credit crunch" some are anticipating a .25% reduction in the discount rate (currently at 5.75%) after the .25% reduction on August 17th failed to really spark borrowing from this discount window.
The housing and credit markets have really taken a hit since January 1st with over 50,000 financial sector jobs lost, foreclosures at an all time high and up 115% over last year, and a record slowdown in the housing market. Many have said the Fed is too late; however, late is better than never in this case. Hopefully the increased liquidity, the reduction in rates, and knowledge of how to value the risky mortgage backed securities will spark a pick up in the housing sector. Many believe the ability to value mortgage backed securities alone is enough to spark a boost. This sector has really been hit hard as these portfolios have been burdened with heavy losses from rising delinquencies and foreclosures, mostly associated with sub-prime loans.
In a surprising effort by the government we have also seen FHA guideline changes to accomodate sub-prime woes and bills currently being discussed to lift the loan size requirements for Fannie Mae and Freddie Mac currently set at $417,000. This would further boost the housing market as "jumbo" loans would now be backed by government sponsored entities. Jumbo loans have recently been hit hard with tighter guidelines and rising rates as scared investors no longer have an appetite for these riskier loans. Hopefully today's decision will shed some light on what the future holds for the housing crisis!
Brought to you by Professional Mortgage Group
Your Columbia Missouri Mortgage Broker
The housing and credit markets have really taken a hit since January 1st with over 50,000 financial sector jobs lost, foreclosures at an all time high and up 115% over last year, and a record slowdown in the housing market. Many have said the Fed is too late; however, late is better than never in this case. Hopefully the increased liquidity, the reduction in rates, and knowledge of how to value the risky mortgage backed securities will spark a pick up in the housing sector. Many believe the ability to value mortgage backed securities alone is enough to spark a boost. This sector has really been hit hard as these portfolios have been burdened with heavy losses from rising delinquencies and foreclosures, mostly associated with sub-prime loans.
In a surprising effort by the government we have also seen FHA guideline changes to accomodate sub-prime woes and bills currently being discussed to lift the loan size requirements for Fannie Mae and Freddie Mac currently set at $417,000. This would further boost the housing market as "jumbo" loans would now be backed by government sponsored entities. Jumbo loans have recently been hit hard with tighter guidelines and rising rates as scared investors no longer have an appetite for these riskier loans. Hopefully today's decision will shed some light on what the future holds for the housing crisis!
Brought to you by Professional Mortgage Group
Your Columbia Missouri Mortgage Broker
Friday, September 14, 2007
This week's featured listing from one of our Realtor Partners
This week's featured listing is from Scott Dunkin with Reece & Nichols:
2700 E Buffalo Drive
Columbia MO 65202
$129,900
Single Family HomeNEW ROOF GUTTERS ALSO NEW WATER HEATER HUGE 1/2 ACRE LOT SPACIOUS MASTER BEDROOM WITH HUGE WALKIN CLOSET LARGE WINDOWS IN LIVING ROOM AND KITCHEN LARGE 2ND 3RD BEDROOM
Property Features
Property Type: Single Family Home
School District: Hallsville
Subdivision/Neighborhood: Haystack Acres
County/Area: Boone County
Style: Ranch
Garage: Attached, 2-Car
Year Built: 2003
Fin Sq Ft Main: 1601.00
Lot Dimensions: 111X206
House Faces: N
Age Description: 1 Dy-5 Yrs
ElementarySchool: Hallsville
Jr Sch: Hallsville
HighSchool: Hallsville
Builder Name: VISTA
Arch./Style: Traditional
Cooling: Central Electric
Dining: Eat-In Kitchen
Exterior Features: Driveway-Dirt/Gravel, Windows-Vinyl
Exterior Finish: Brick Veneer, Vinyl
Flooring: Carpet, Tile
Foundation Material: Poured Concrete
Foundation Type: Slab
Heat Fuel: Natural Gas
Heat Type: Forced Air
Interior/Features: Cable Available, Ceiling/PaddleFan(s), Garage Dr Opener(s), Laundry-Main Floor, Smoke Detector(s), Walk in Closet(s), Washer/DryerConnectn
Kitchen/Features: Cooktop-Electric, Counter-Laminate, Dishwasher-Built In, Garbage Disposal, Microwave Oven, Range-Electric, Vent Fan
Patio: Back, Concrete
Porch: Front, Covered
Roof: ArchitecturalShingle
Rooms: Kitchen, Living Room, Main Lvl Master Bdrm, Master Bedroom, Utility Room, Master Bath, Split Bedroom Design
Street/Roads: Gravel, Paved
Utilities: Electric-County, Gas-Natural, Sewage-City, Trash-Private
Courtesy of Scott Dunkin of Reece And Nichols Columbia Realtors
Thursday, September 13, 2007
Columbia's Mortgage and Real Estate Market
I attended the Small Business Committee meeting today at the Columbia Chamber of Commerce. We broke into groups to discuss the challenges faced by small businesses here in Columbia, Missouri. And, while the usual topics of health care costs and wages and lack of qualified labor all were brought up, my interest was peaked by a topic that concerns those of us in the real estate industry.
It is becoming more apparent to the business community that we have a severe lack of low to middle income industry. By that I mean jobs for the so called "blue collar" workers. Columbia is becoming a city of those being catered to and those who are being ignored. It seems that members of the Chamber are concerned that we are too focused on attracting only the highly paid and are forgetting that the majority of people fall into the middle income category. This is certainly true if you examine the focus of new home construction in the past couple of years. Builders have primarily focus on high margin/high priced housing.
This has affected our industry in a negative way. Currently the majority of homes sold are under $200,000 and most of those have been pre-owned. We have been lucky in Columbia as the University, the city and the insurance industry have helped our city from downturns in the past. But, Columbia has grown to the point that other industries must be attracted (and bring in new citizens) so that we can continue to grow steadily. We need to get "blue collar" industry so that we don't have a future problem with our burgeoning construction industry. Bringing in buyers of lower priced homes will increase demand and contractors can turn to building at those price levels so that we can ease out of our overstock of high priced homes.
We, as an industry who are concerned about keeping our city a good place to live, need to let our city council and mayor know that we are concerned about more than parks and bike trails. Those are nice but not too much comfort if you are not able to find a job or afford the housing.
Your comments are always welcome!
Brought to you by Professional Mortgage Group, Inc. (http://www.pmg-inc.net/) in Columbia, Missouri.
It is becoming more apparent to the business community that we have a severe lack of low to middle income industry. By that I mean jobs for the so called "blue collar" workers. Columbia is becoming a city of those being catered to and those who are being ignored. It seems that members of the Chamber are concerned that we are too focused on attracting only the highly paid and are forgetting that the majority of people fall into the middle income category. This is certainly true if you examine the focus of new home construction in the past couple of years. Builders have primarily focus on high margin/high priced housing.
This has affected our industry in a negative way. Currently the majority of homes sold are under $200,000 and most of those have been pre-owned. We have been lucky in Columbia as the University, the city and the insurance industry have helped our city from downturns in the past. But, Columbia has grown to the point that other industries must be attracted (and bring in new citizens) so that we can continue to grow steadily. We need to get "blue collar" industry so that we don't have a future problem with our burgeoning construction industry. Bringing in buyers of lower priced homes will increase demand and contractors can turn to building at those price levels so that we can ease out of our overstock of high priced homes.
We, as an industry who are concerned about keeping our city a good place to live, need to let our city council and mayor know that we are concerned about more than parks and bike trails. Those are nice but not too much comfort if you are not able to find a job or afford the housing.
Your comments are always welcome!
Brought to you by Professional Mortgage Group, Inc. (http://www.pmg-inc.net/) in Columbia, Missouri.
Wednesday, September 12, 2007
The PMG Advantage
THE PROFESSIONAL MORTGAGE GROUP ADVANTAGE!
Online Loan Status
Available 24/7 at http://www.pmg-inc.net/
Free "Buyers Guides"
An educational tool for your clients.
Service Guarantee's
For the client, listing agent, and buyers agent.
"Featured Realtor" Page
Free advertising for you and your listings!!
Daily Educational Blog
Knowledge is Power.
Free Weekly Featured Listings
Driving Business for you!!
Brought to you by Professional Mortgage Group, Inc.
Columbia, Missouri
573-777-1198
www.pmg-inc.net
Tuesday, September 11, 2007
Featured Realtor Page
Coming very soon to http://www.pmg-inc.net/ Professional Mortgage Group will roll out our "Featured Realtor" page. On this page you will find a photo and contact information for that month's realtor. You can also read up on their bio and a question and answer session. Last but not least there will be property listings and links to more information about those particular homes and more. The best part of this web feature is that it is completely FREE to our realtors. We hope this will help increase your exposure and possibly land you some business! We have new and unique visitors to our site everyday and you never know when one could find their way to you!
If you are a realtor in the mid-missouri area and are interested in being featured, please contact PMG. We would be happy to establish a relationship and get you on the list in order to be a "PMG Featured Realtor!"
Be sure to check back to see who is the first to be featured!
Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"
If you are a realtor in the mid-missouri area and are interested in being featured, please contact PMG. We would be happy to establish a relationship and get you on the list in order to be a "PMG Featured Realtor!"
Be sure to check back to see who is the first to be featured!
Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"
Monday, September 10, 2007
Fall Home Sales Push
It seems yet again amid all the mortgage turmoil that the fall push has begun. Increased mortgage activity is something that has been atypical for this industry lately. At times the mortgage market can be very predictable even in the most unstable environment. The months of September, October and November have always been "good" months for the real estate market and hopefully, god willing, this year will be no different.
We have several key factors that are conducive to a late fall push in homes sales. First, rates are very good with a 30 year fixed rate mortgage holding strong at 6.125% and should drop after September 18th when the fed is expected to decrease the Federal Funds Rate by at least .25%. Second, the secondary market has relaxed a little bit on mortgage backed securities mostly because of relaxing underwriting standards on the FHA product, the increased liquidity on the banking market to fund loans, and the tightening of underwriting standards for sub-prime products. You may be asking yourself, why would tighter underwriting guidelines benefit the mortgage market. Well in the eyes of the secondary market tighter standards mean more quality loans, which then translates into reduced risk and increased profit margins, which then should, hopefully, spark new trends in this market and in turn increased mortgage activity. Third, it is a "buyer's" market. If you are in the market for a home there is no better time to purchase as both sellers and builders are discounting homes in order to reduce inventory and interest costs before the winter months. A savvy buyer can use this to their advantage and strike a great deal on a new or existing home.
Let the fall push begin, every lender, seller, builder, agent, appraiser and title company are ready to service you in your quest to purchase a home. The market needs, wants and desperately requires increased sales. Are you ready?
Brought to you by Professional Mortgage Group.
Your Columbia Missouri Mortgage Broker
We have several key factors that are conducive to a late fall push in homes sales. First, rates are very good with a 30 year fixed rate mortgage holding strong at 6.125% and should drop after September 18th when the fed is expected to decrease the Federal Funds Rate by at least .25%. Second, the secondary market has relaxed a little bit on mortgage backed securities mostly because of relaxing underwriting standards on the FHA product, the increased liquidity on the banking market to fund loans, and the tightening of underwriting standards for sub-prime products. You may be asking yourself, why would tighter underwriting guidelines benefit the mortgage market. Well in the eyes of the secondary market tighter standards mean more quality loans, which then translates into reduced risk and increased profit margins, which then should, hopefully, spark new trends in this market and in turn increased mortgage activity. Third, it is a "buyer's" market. If you are in the market for a home there is no better time to purchase as both sellers and builders are discounting homes in order to reduce inventory and interest costs before the winter months. A savvy buyer can use this to their advantage and strike a great deal on a new or existing home.
Let the fall push begin, every lender, seller, builder, agent, appraiser and title company are ready to service you in your quest to purchase a home. The market needs, wants and desperately requires increased sales. Are you ready?
Brought to you by Professional Mortgage Group.
Your Columbia Missouri Mortgage Broker
Friday, September 7, 2007
Columbia Missouri Market Statistics
In lite of current market conditions both nationally and locally I thought I would dazzle you with some very interesting statistics courtesy of the Columbia Board of Realtors.
NEW HOME SALES STATISTICS: (Boone County Missouri)
- New Home Sales are down 34% through the 1st half of 2007'.
* 218 units sold in 2006' vs. 133 for 2007'
* $42.8M in volume for 2006' vs. $27.7M in 2007'
* Through the 1st half of 2007' building permits are down 67% from 2006' and
105% from 2005'.
* Through the 1st quarter of 2007' the Sales Prices List Price ratio was 98.94
compared to 100.55 in 2006' and 100.04 in 2003'
* The median sales price through the 1st half of 2007' was $150,000 compared
to $149,600 in 2006'
EXISTING HOME SALES STATISTICS: (Boone County Missouri)
-Existing Home Sales are down 2.5% through the 1st half of 2007'
* $105.5M for 2006' vs. $103.2M for 2007'
* Median sales prices for 2007 was $144,000 vs. $146,000 for 2006'
* Through the 1st quarter of 2007' the Sales Price / List Price ratio was
97.56 in 2007' vs. 97.76 for 2006' and 96.62 in 2005'
* 61% of the sales have been under $200,000
* 87% of the sales have been under $250,000
* The average days on market for 2007' has been 131 vs. 119 in 2006' and 117
in 2005'
MISC STATISTICS: (Boone County Missouri)
- The hottest area of was the SW with 208 units sold through the 1st half of 2007'
- The 2nd hottest area was NE with 122 units sold through the 1st half of 2007'
- Overall the Columbia Missouri Market is down 11% from last year
- The slowest area was the SE with only 53 units sold through the 1st half of 2007'
Brought to you by Professional Mortgage Group, Inc.
Your Columbia, Missouri Mortgage Broker
NEW HOME SALES STATISTICS: (Boone County Missouri)
- New Home Sales are down 34% through the 1st half of 2007'.
* 218 units sold in 2006' vs. 133 for 2007'
* $42.8M in volume for 2006' vs. $27.7M in 2007'
* Through the 1st half of 2007' building permits are down 67% from 2006' and
105% from 2005'.
* Through the 1st quarter of 2007' the Sales Prices List Price ratio was 98.94
compared to 100.55 in 2006' and 100.04 in 2003'
* The median sales price through the 1st half of 2007' was $150,000 compared
to $149,600 in 2006'
EXISTING HOME SALES STATISTICS: (Boone County Missouri)
-Existing Home Sales are down 2.5% through the 1st half of 2007'
* $105.5M for 2006' vs. $103.2M for 2007'
* Median sales prices for 2007 was $144,000 vs. $146,000 for 2006'
* Through the 1st quarter of 2007' the Sales Price / List Price ratio was
97.56 in 2007' vs. 97.76 for 2006' and 96.62 in 2005'
* 61% of the sales have been under $200,000
* 87% of the sales have been under $250,000
* The average days on market for 2007' has been 131 vs. 119 in 2006' and 117
in 2005'
MISC STATISTICS: (Boone County Missouri)
- The hottest area of was the SW with 208 units sold through the 1st half of 2007'
- The 2nd hottest area was NE with 122 units sold through the 1st half of 2007'
- Overall the Columbia Missouri Market is down 11% from last year
- The slowest area was the SE with only 53 units sold through the 1st half of 2007'
Brought to you by Professional Mortgage Group, Inc.
Your Columbia, Missouri Mortgage Broker
Thursday, September 6, 2007
A Big Thank You To Our Guests
We wanted to say thank you to our Realtor friends who came to our first monthly luncheon today. It was a great time to socialize with our peers in the industry.
The following people attended the lunch:
Tracy Arey, Gaslight
Meaghan Kingdon, Gaslight
Hayes Murray, Plaza Real Estate
Tim Kuchta, 3D Realty
John Sorenson, The Ginsburg Group
The meal was catered by our friends from D'Rowe's. We hope everyone had a good time and took away some new information about Professional Mortgage Group and the way we do business.
Brought to you by Professional Mortgage Group, Inc. in Columbia, Missouri.
The following people attended the lunch:
Tracy Arey, Gaslight
Meaghan Kingdon, Gaslight
Hayes Murray, Plaza Real Estate
Tim Kuchta, 3D Realty
John Sorenson, The Ginsburg Group
The meal was catered by our friends from D'Rowe's. We hope everyone had a good time and took away some new information about Professional Mortgage Group and the way we do business.
Brought to you by Professional Mortgage Group, Inc. in Columbia, Missouri.
Wednesday, September 5, 2007
Mortgage Market Slowdown
I am an avid reader of our local newspaper, the Columbia Tribune. Every Saturday in the Business Times section they publish Deeds of Trusts that were recently recorded, all of which are public record. Well last Saturday September the 1st I saw something that absolutely astonished me! What was it? For the first time in 5 years of me actively reading this paper I noticed that there were only 22 Deeds of Trusts recorded for Boone County Missouri. Normally on a given Saturday there are at least 2 pages of recordings and in peak market conditions there have been as many has 4 or more pages. However, this past Saturday the Deeds of Trusts section only required about 1/5 of one page. This shocked me to say the least, have home sales fallen that much, is the Columbia market in this kind of shape, what has happened?
I have said time and again that both nationally and locally the mortgage market has seen better days. However, I had no idea we (Columbia, Missouri) were in this kind of predicament. What can we attribute this slowdown to; a large inventory of homes, the sub-prime meltdown, rising interest rates, slow job growth, a slowing economy, a stigma tied to the overall market, rising gas prices? To be honest with you this market is a little scary right now. The good news is the Federal Government finally recognizes the issue at hand and I believe will take the necessary steps to correct the housing meltdown. They have already begun the process of creating liquidity in the market place by reducing the discount window .5%, they are beginning the process of relaxing FHA guidelines to help individuals that have gotten caught in the sub-prime mess get on their feet again, they are planning reform for the sub-prime mortgage market, they have issued statements to help the secondary market relax. Will this be enough and is it too late?
You just can't "flip a switch" and correct the housing market. It will take time and consistent follow-through by the government, banks, wholesale lenders, mortgage companies, builders, real estate agents, appraisers and anyone else involved in the real estate community. Hopefully, the fed will reduce a key interest rate (federal funds rate) by at least .25% and maybe even .50% to help the market place. The next move is to reduce our inventory of homes currently on the market. The problem I see here is that it has been my experience that individuals who are in the market have a home to sell. The secondary market must make a concerted effort to purchase "mortgage backed securities", hopefully with the tightening lending guidelines and the influx of liquidity potential hedge funds will again start purchasing these mortgages. We has brokers must also be aware of what the market can bare and do our job professionally, ethically, and honestly. This means thinking of our clients first and our pocket books second. Much like Professional Mortgage Group's business model "The client for life" mentality.
Job growth and economic expansion are a leading attribute in fixing this problem. We must continue to build on our community both at the city, state and national level. Tax cuts for corporations, lowering gas prices, an ending to the war in Iraq what a nice thought that would be. How can average everyday people pay close to $3.00 a gallon for gas while quarterly profits for these companies are over $1 billion? How can we constitently give $50B-$300B in a war when we have real issues here in America. I do not know what the answer is that is left to individuals much smarter than me but am I the only one thinking of this? The American spirit has taken a blow and we must do our part to get it back! I've gotten a little off track here but you get my point. The American economy is VERY sensitive and "the American dream" of home ownership is at the very heart of what makes us a nation. I and Professional Mortgage Group are determined to be here for our community to help individuals achieve this dream!
Brought to you by Professional Mortgage Group
Your Columbia Missouri Mortgage Broker
I have said time and again that both nationally and locally the mortgage market has seen better days. However, I had no idea we (Columbia, Missouri) were in this kind of predicament. What can we attribute this slowdown to; a large inventory of homes, the sub-prime meltdown, rising interest rates, slow job growth, a slowing economy, a stigma tied to the overall market, rising gas prices? To be honest with you this market is a little scary right now. The good news is the Federal Government finally recognizes the issue at hand and I believe will take the necessary steps to correct the housing meltdown. They have already begun the process of creating liquidity in the market place by reducing the discount window .5%, they are beginning the process of relaxing FHA guidelines to help individuals that have gotten caught in the sub-prime mess get on their feet again, they are planning reform for the sub-prime mortgage market, they have issued statements to help the secondary market relax. Will this be enough and is it too late?
You just can't "flip a switch" and correct the housing market. It will take time and consistent follow-through by the government, banks, wholesale lenders, mortgage companies, builders, real estate agents, appraisers and anyone else involved in the real estate community. Hopefully, the fed will reduce a key interest rate (federal funds rate) by at least .25% and maybe even .50% to help the market place. The next move is to reduce our inventory of homes currently on the market. The problem I see here is that it has been my experience that individuals who are in the market have a home to sell. The secondary market must make a concerted effort to purchase "mortgage backed securities", hopefully with the tightening lending guidelines and the influx of liquidity potential hedge funds will again start purchasing these mortgages. We has brokers must also be aware of what the market can bare and do our job professionally, ethically, and honestly. This means thinking of our clients first and our pocket books second. Much like Professional Mortgage Group's business model "The client for life" mentality.
Job growth and economic expansion are a leading attribute in fixing this problem. We must continue to build on our community both at the city, state and national level. Tax cuts for corporations, lowering gas prices, an ending to the war in Iraq what a nice thought that would be. How can average everyday people pay close to $3.00 a gallon for gas while quarterly profits for these companies are over $1 billion? How can we constitently give $50B-$300B in a war when we have real issues here in America. I do not know what the answer is that is left to individuals much smarter than me but am I the only one thinking of this? The American spirit has taken a blow and we must do our part to get it back! I've gotten a little off track here but you get my point. The American economy is VERY sensitive and "the American dream" of home ownership is at the very heart of what makes us a nation. I and Professional Mortgage Group are determined to be here for our community to help individuals achieve this dream!
Brought to you by Professional Mortgage Group
Your Columbia Missouri Mortgage Broker
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