Columbia Missouri Market Statistics Part III

Part II of this post isolated July of 2007' against July of 2006'. The following information will expand a little bit and encompass the first half of 2007 vs. the first half of 2006' in Columbia, Missouri and more specifically Boone County. Like past posts the targeting of this subject will include an abundance of statistics followed by some commentary.

EXISTING HOME SALES (First half of 2007' vs. 2006')

• Volume: Down $1,931,275 or (.6%)
• Units Sold: Down 24 units or (1.3%)
• Average Price: Up $2,087 or (.6%)

NEW HOME SALES (First half of 2007' vs. 2006')

Volume: Down $23,755,300 or (20.3%)

Units Sold: Down 118 units or (20.4%)

Average Price: Up $1,116 or (.3%)

TOTAL COMBINED SEGMENTS (First half of 2007' vs. 2006')

Volume: Down $25,686,574 or (5.2%)

Units Sold: Down 142 units or (5.7%)

Average Price: Up $2,087 or (.6%)

Just as I stated in the previous post, existing home sales are at least steady and holding their own. However, just the opposite can be said of the new home market. All three areas (volume, units sold, and average price) have been hit hard. This is especially true for the amount of homes being sold (down 118) over last year. The total picture is less bleak than I originally thought, however we are still down over $25M in volume and 142 homes which is a lot for this market!

Brought to you by Professional Mortgage Group, Inc.
Your Columbia, Missouri Mortgage Broker

Helpful Links

The whole purpose for Professional Mortgage Group, Inc. to publish this blog on www.pmg-inc.net is to provide useful information to visitors. Each day we provide valuable information and insight into the current market in Columbia, MO and sometimes Nationwide. It has been quite awhile since we did a refresher on some of the valuable websites out there that can be of assistance to you. I will just give a quick rundown of several sites that may be useful to you.

www.pmg-inc.net - Our website of course!
www.google.com - You can find anything on this powerful search engine.
www.gocolumbiamo.com - The City of Columbia website.
www.missouri.edu - The University of Missouri
www.zillow.com - Real Estate Valuations
www.bankrate.com - Rate and Lending comparison site.
www.realtor.com - Search for home for sale.
www.fanniemae.com - They are the largest buyer of securitized mortgage paper.
www.freddiemac.com - Another large buyer of mortgage paper.
www.bloomberg.com/markets/rates - Check Mortgage and Bond rates.
www.countrywide.com - Large Nationwide Lender
www.wellsfargo.com - Large Nationwide Lender
www.bankofamerica.com - Large Nationwide Lender and Bank with local branches.
www.realestatebook.com - Another site for home listings.
www.boonebank.com - Boone County National Bank Website. Largest local bank.
www.fnb-columbia.com - First National Bank. Another large local bank.
www.pisinspections.com - Local Respected Home Inspector.
www.myfico.com - Information about credit scores.
www.annualcreditreport.com - Obtain a free credit report once a year.


Here are some links to Local Real Estate Companies

Re-max Boone Realty
House of Brokers
Plaza Real Estate Services
Central Missouri Real Estate LLC
Weichert Realtors (First Tier)
3D Realty
Reece and Nichols
Gaslight Properties
Century 21 Advantage

These are several links to browse for information.
PMG hopes this information can be useful to you.

If you have a link that you think should be on this list, please post a comment and we can add it.

Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"

Selling Your Home

In today's market where the inventory of homes is at an all time high and buyer's are not in abundance what can you "the seller" do to help make your home "stand-out" and thus have the best possible chance for a quick and painless transaction.

There are several components to this discussion but I will mention just a few of the major items you will want to address. First, your home must be in the best possible shape in order for you to maximize both your profits and your sale time. By this I mean making any necessary repairs that potential buyers will find issues with. For example; repairing any leaky faucets, the drywall crack by the window sill that has bugged you for years, the garage door opener that only works half the time, or the kitchen cabinet by the dishwasher that has cracked. These are just a few examples, but you get my point. Also, a clean house obviously looks better than a filthy one. All things considered equal, the home that has been kept clean, looks orderly, and smells fresh will sell faster than it's opposite. If you follow this simple rule, you will be on the right track.

Second, choosing the right realtor is crucial for a professional and optimal sale. Realtors are valuable tools and they have access to the MLS (Multiple Listing System). This advertises your home to other realtor's and buyers who may be looking for a home like your property. They understand what potential buyers are looking for and how to reach them whether that be print advertising, radio, word of mouth, or a combination of the three . Also, you need a realtor that will put the time and effort it takes to market your home in the best possible scenario for "you" whether that's something they have used in the past (i.e. The Real Estate Book) or some new more expensive medium. Finding the right realtor is no art but using references and referrals is key!

Third, you need the right lender involved from the beginning. More times than not your realtor will know who to use but the lender is a vital part of closing a successful escrow transaction. The last thing you want is to get a contract and at closing find out the lender has "miss-represented" the transaction and now you cannot close. How much time, money, energy, and other potential buyers have you missed out on? The right lender can help ease the stress of the transaction by helping your realtor market your home (i.e. Internet links, flyer's, yard signs, potential buyers, etc.) while at the same time "pre-screen" any potential buyers for your home so you do not have the former scenario happen to you.

I hope this helps and should you have any questions or comments as usual they are welcomed!

Brought to you by Professional Mortgage Group
Your Columbia, Missouri mortgage broker

New Featured Listing 502 Mustang Drive, Ashland MO

This week's featured listing comes from Kristi Collins with Plaza Real Estate. Call her for a showing today at (573) 268-8505.

502 Mustang Drive

Ashland, MO 65010

Currently listing for $210,000 MLS#304689

*BUYER TO VERIFY ALL DATA*

Beautiful Basement Home with lots of room to expand. Large lot with tons of natural light throughout. Check out the unique stone and stucco front!

Property Details
Style: Ranch
Bedrooms: 3 bed
Full Baths: 2 bath
Square footage: 1,750 sqft
Garage: 2 car(s)
Age: New-Never Occupied
Acreage: 0
Lot Size: 88X233

Individual Room Information:

Kitchen: Main 23.9 x 11.6
Dining Room: Main 10 x 12
Living Room: Main 17.3 x 18.9
Master Bedroom: Main 15 x 13
Bedroom 2: Main 11.3 x 11.5
Bedroom 3: Main 11.4 x 11

Property Features:

Exterior Finish: Stone Veneer, Synthetic Stucco, Vinyl

Exterior Features: Driveway-Paved, Windows-Vinyl

Roof: ArchitecturalShingle

Foundation: Walkout, Full Bsmt Unfinished

Heat: Natural Gas, Forced Air

Cooling: Central Electric

Flooring: Carpet, Ceramic

Deck: Back

Interior/Features:
Ceiling/PaddleFan(s), Garage Dr Opener(s), Laundry-Main Floor, Smoke Detector(s), Stand AloneShwr/MBR, Tub/Built In Jetted, Walk in Closet(s), Washer/DryerConnectn

Kitchen/Features:
Cabinets-Wood, Counter-Laminate, Dishwasher-Built In, Garbage Disposal, Microwave Oven, Range-Electric, Vent Fan

Fireplace:
Gas, In Living Room

Utilities:
Electric-City, Gas-Natural, Sewage-City, Trash-City, Water-City

Listed By: Kristi Collins - Plaza Real Estate Services

Disclaimer: All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, and misprints and shall be held totally harmless. Listing(s) information is provided for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

Cash-Out Refinance

During the tough economic times of today many more Americans are tapping their home's equity, what's left of it, to try and obtain some sort of cash relief. Whether that is paying off credit cards, personal loans, auto loans or even cash to put in some sort of savings account. Americans are feeling the pinch of both the slumping housing market and rising commodity items like fuel, utilities and groceries. I thought I would shed some light on things you need to know should you be one of the thousands facing this dilemma.

First, conforming loans (those backed by Fannie and Freddie) typically only allow for a loan-to-value of 95% cash out. This means should you have a home that appraised for $100,000 the maximum loan you can receive, if you are taking cash out, is $95,000 or 95% of the homes value. This typically can be structured as one loan or two (80% first/15% second) for those of you who do not want to pay PMI (Private Mortgage Insurance).

Second, as a precautionary matter you need to make sure that the appraised value is "realistic". The last thing you want is to go and try to sell your residence in a couple of years and find out you owe more on your home than what you can sell it for; otherwise known as over-leveraged or negative equity. I have seen this way too many times over the years, mostly because of "shady" lending practices in connection with an over-valued appraisal. Be sure you deal with a lender who looks out for your best interests!

Third, you may be able to work the timing of the transaction that will allow you the benefit of skipping two mortgage payments. Many clients really like this perk as it frees up "extra" cash flow that they would ordinarily be without. Imagine consolidating credit cards and other personal loans saving $900.00 a month and pocketing $2,000 cash while at the same time remaining in a financially stable position on your home. Believe or not it can and does happen everyday!

Fourth, and perhaps the most important, the entire process normally takes only approximately two weeks to complete. No long waiting period or constant questioning going back and forth. The entire refinance process has become very streamlined and efficient.

Brought to you by Professional Mortgage Group, Inc.

Your Columbia Missouri Mortgage Broker

New Home Sales News

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.

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"