Fed Action

In light of the Federal Reserve slashing the Federal Funds Rate and Discount Rate 75 basis points in less than 60 days, I thought I would dispel the myth that mortgage rates are dropping as well. The Federal Reserve acknowledges the need for "liquidity" in the market place. Why? They know that unless banks, wholesale lenders, retail lenders and others have the funds to lend then regardless of what mortgage rates are there is no chance of a housing recovery! The government is trying to give lenders "money to lend". The largest factor behind the "credit crunch" is the fact that lenders had little to no money to lend to qualified borrowers. Typically, wholesale lenders use mortgage lines of credit to fund certain loans and when the "credit crunch" hit these lenders had their lines pulled. Therefore, the Federal Reserve is trying to push money back into the financial market place for lenders to lend, for buyer's to access and the end result would be for the housing inventory to decline thus bring values back in line.

Don't get me wrong mortgage rates are GREAT! However, do not be fooled that The Federal Reserves actions are to ultimately lower mortgage rates. The problem is not that rates are high, they are just the opposite and it's not like there are no homes to choose from again it's quite the opposite as inventory of unsold homes have never been higher. The financial market's have a "credit crunch" and they (Feds) are trying to reverse this. In fact, it's a great time to be a home buyer right now you have a plethora of homes to choose from at discounted prices and unbelievable rates to boot!

Brought to you by Professional Mortgage Group
Your Columbia Missouri Mortgage Broker

Columbia Missouri Market Statistics Part II

Well, I have done some research and would like to elaborate on some analysis of the July 2007' housing numbers for Columbia Missouri. As per part I of this commentary this blog will be mostly comprised of statistics.

Existing Home Sales July 2007' vs. July 2006'

• Volume: Up $2,992,554 or (4.2%)
• Units Sold: Up 32 units or (7.6%)
• Average Price: Down $11,258 or (3.4%)

New Home Sales July 2007' vs. July 2006'

• Volume: Down $5,033,238 or (23.4%)
• Units Sold: Down 18 units or (17%)
• Average Price: Down $26,872 or (6.7%)

Total Homes Sales July 2007' vs. July 2006'

• Volume: Down $2,040,684 or (2.2%)
• Units Sold: Up 14 units or (2.6%)
• Average Price: Down $16,993 or (4.9%)

What does all of this mean?

Well, to summarize the numbers, it seems existing home sales in Columbia Missouri are holding strong. However, the price of the homes selling is down an average of over $11,000 or 3.4% from a year ago. New construction sales are really suffering. Volume, units sold, and average price are all down an average of 15.7% over last year. This is especially true for the sales price. Can you believe these homes are selling almost $27,000 less than July of 2006'? This shows the eagerness of builders wanting to unload their inventory.

Overall the market is down, but this is somewhat skewed as the majority of our issues lie in the "new construction" area which has simply been over built for the community. With the majority of the homes being over $200,000, there seems to be no "quick fix" to rid us of these problems. Time is the answer. Over time the Columbia market should rebound nicely!

I am sure I speak for most of us in the real estate community, the sooner the better!!

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