My Bellaire Blog

As you are listening to the national news you probably heard that the Pending Home Sales Index fell by 7.7 percent from December to January to hit its lowest level since the National Association of Realtors began tracking it in 2001.

No matter how dire the national news are, what matters to you as a seller (or buyer) is what is happening on your block!!  Real estate is LOCAL.  It’s like the weather: The average temperature in the US is no indication of what the weather is like in your neighborhood! 

To find out aout what is exactly happening on your block, sign-up for the free Market Snapshot real data newsletter.  It’s free, and you’ll be in touch with the pulse of YOUR market!  Just email Lucie@MyBellaireBlog.com no matter where you live.  The Snapshot is available nationwide, block by block…

The MLS # is 8742200.  This is a 5,699 SF house with a pool and tropical landscaping at the end of a cul-de-sac outside the loop.  Lot size is 8,450 and it is offered in the low $800.  Let me know at Lucie@MyBellaireBlog.com if you would like to receive any details or have any questions about placing an offer on this property!

Search all Bellaire Homes at www.BellaireBestHomes.com

Another exciting week, as rates were up down, up ,down, and finally down .25% from last week. Will we ever see 4.0%? I don’t know, but if it makes sense right now to buy or refinance, do it. That is my ongoing advice.

 There is rumor that a $15,000 homebuyer credit has been approved in the Senate. I have not been able to confirm , but I know it is looming. Currently, there is APPROVED a  $7500 tax credit that is given at the time they file their taxes. So, if a first time homeowner (who makes less than $75,000/year)  buys before July 2009, they can claim this credit for 2008 (if they file an extension) or on 2009 tax return (a whole year from now!). The credit offsets the tax they owe, and is required to be repaid over 15 years. So basically, and interest free loan. 

The NEW PROPOSAL posed to the Senate as a part of the stimulus package is: Increase the credit to $15,000 (or 10% of the purchase price if less), and available to ALL homebuyers, regardless of income or purchase history, and not require repayment. Wow. That would spur some buying for sure. I will just avoid thinking where that money will come from for now. Let’s just take a bat for the team on this one, and call it a good thing.

I saw an article online that said ‘Credit Standards Tighten’. Where has that journalist been? That is old news! Yes, it is true. There are more rules, more paperwork. But we just get through it all somehow. The funniest example I have is one of our investors now requires that any letters of explanation for the borrower are handwritten, not typed. Hint: loan officers have really good writing skills. But isn’t that funny? We are going to such extremes. But again, a bat for the team. When I am 80, I hope to look back on 2009 with a grin, and know that I helped a lot of people accomplish the American dream of homeownership.

Jennifer Hernandez

Vice President/Mortgage Consultant

Patriot Bank Mortgage

Office:    713-337-8400

Mobile:   713-446-7791

E-mail:    jennifer@patriotbankusa.com

Web:      www.loanwithjennifer.com

Should I say only 5 properties closed in January in West U?  Well, considering the very dark national news about employment, I should yell “Yippie! 5 closings!”.  However, comparing with last year’s January closings of 10 properties, sales were down 50% year-to-year.   

Five lucky West U homeowners were able to sell their homes last month, ranging from $625,000 to $3,300,000 for a newly built 7,535 Sq Ft home on a 15,000 Sq Ft lot.  At $437 per square ft, the builder (Domus) did very well! 

Another 5 properties went “sale pending”, ranging from $619,000 to $1,575,000 in list price which announces a similar, if not better February.  

To receive a Market Snapshot, which is an interactive view of the market around you, just email me at Lucie@MyBellaireBlog.com.   It is free, and it is specific to your street and the streets surrounding you!

A dismal 7 properties closed in the City of Bellaire in January, with prices ranging from $250,000 to $590,000 with an average of 53 days on the market and an average price per square foot at $197.85.  Last January had 12 closings ranging from $239,000 to $1,864,500 and the average price per square foot was $213.  The outlook for next month seems brighter:  11 homes went under contract in January and are pending to close this month or next.  Those pending sales range from $360,000 to $2,574,900 in their list price!    So things started picking up with the new year, and if you are wondering whether to list now or in the spring,  call 713-539-1006 for a complimentary in-depth Market Analysis of your home or sign-up for the amazing Market Snapshot email that you can receive free as often as weekly!  My email is Lucie@MyBellaireBlog.com .

Also, please visit www.BellaireBestHomes.com to view everything offered for sale in the City of Homes!

Two incidents happened in the last couple of weeks in our neighborhood that came to my attention.  A car was stolen from my friend’s driveway at night.  Their garage backs up to 1st Street, between Bellaire and Bissonnet.  Since they have 3 vehicles, one stays parked on the driveway.  One morning, prior to the theft, my friend noticed his car doors were unlocked, and thought it was strange since he always makes it a point to lock the doors of his car.  Next thing, the car is completely gone one morning.  His car alarm had failed during Ike, and that’s what the thieves were possibly testing the first time around.  They now feel very violated and unsafe in their own home.

The other incident has to make realtors and their clients aware of the need to keep the alarms activated on  vacant property.  The house at 847 Jaquet has been on the market and vacant for a while.   It’s front door got stolen last week.  The neighbors noticed the house was wide open and the front door gone.  It could also be that appliances were taken.  Now a piece of plywood in the front tells the story.  My friend who lives on Jaquet does not feel too safe either.

So Bellaire be careful!  The recession is not helping the crime around here, and lets watch out for our own streets and neighbors.  Also, setting your alarm is important even if you’re just going to the grocery store!

So where are the 4.5% rates, you are wondering? Your clients are asking, I am sure. They ask me too! Well, as you can see below, the rates are not far from that at  4.625%. But keep in mind, to get that, you MUST pay 1% origination fee (1% of the loan amount added to closing costs). If you want to ‘waive’ that fee, you can expect .625-.75% higher interest rate. That is a far cry from the .25% in the past. In other words, it makes sense to pay the 1% origination for many people, who expect to be in the home a long time. For those on a 6 year or less timeline, maybe not pay the point, and save your cash.

Why such a large spread between the 1 Origination and 0 Origination? I have heard several theories (a) lenders do not want to sell the higher coupons (rates), as they anticipate rates will go down, and their fallout will increase (b) they have been burned in the past paying originators the premiums on the back end, just to have early payoff in low rate markets, and (c) no one knows.  I pick C!  Does anyone really know?

Another rumor I have heard, is that some , if not all, of the big banks are losing money in their mortgage divisions. Big money. So they are hesitant to lower their rates because they are adding larger margins than in the past. To make it ‘worth it’ for them to stay in business. The margins from 03/04 when the rates were also at historic lows, and lenders could not print money fast enough, were turbulent times. Hiring frenzies, backlog in processing and fundings. The grass was not necessarily greener on the lenders’ side. Are they now remorseful and learning from their mistakes?

The FED meets this week for a 2 day meeting (Tuesday/Wednesday). For the first time, they will not consider lowering or increasing the rates. They will be concentrating instead on strategy to get the economy turned around.

Jennifer Hernandez

Vice President/Mortgage Consultant

Patriot Bank Mortgage

Office:    713-337-8400

Mobile:   713-446-7791

E-mail:    jennifer@patriotbankusa.com

Web:      www.loanwithjennifer.com

Happy New Year to all!  This long absence only reflects the busy-ness of my business.  Yes, real estate is doing well, and it has been given a jolt in December when the Fed lowered interest rates.  We have seen closings at 4.5% on a 30-year fixed, unheard off rates for the last 50 years.  That’s a powerful incentive for buyers and investors standing on the sidelines to get into the game…  As for mover-uppers, there are so many homes for sale that the savings you will get on your higher priced bigger home will more than compensate for whatever you think it will take to sell your existing home! 

Besides “divine”, another mantra for the new year could be ”2009 is my Inaugural Year”.  I am sure you have witnessed the events in Washington, which had a magical, almost “fairy tale” feel to it.  I suppose you have taken it all in, and hoped for changes in your own lives.  Well, if you keep thinking of 2009 as your Inaugural Year, it will carry you a long way to implement many changes that you have perhaps been thinking about.  So what are you inaugurating this year? Let us know!

Jennifer Hernandez from Patriot Bank Contributed this:

Well, on Friday I did receive confirmation from Santa that I have been good….rates were 4.625% on a 30 year fixed. (They were 4.5% for about an hour). This is for purchases. Refinances are a bit higher, so additional quotes apply. My feeling is that this WILL spark the interest of home buyers, and that activity in the new year will be renewed, and that it will spark the activity the government is hoping for. Why are rates so low? Who cares…take it for what it is, if I can be so blunt.

I would like to address builders. I predict that this is the next industry to be really affected by our economic downturn (recession!).  In fact they already are. Track builders mostly, who build specs. But custom builders too. They are being squeezed , and in some cases cut off, by banks . The strong builders are surviving, and are being required to put more equity in deals. Gone are the days of 100% cost lending. So, in turn, builders with inventory worried . They cannot get more lines to build more homes. Many will unfortunately go under. Spec lending is on hold with many banks, including ours. The banks just don’t want the risk. So I sit here and think what this could mean for consumers:  (a) Good deals on new construction (b) less inventory , and that will cause inventory homes to be more expensive. (c) less new homes, for now. ONLY MY PREDICTION that has no merit other than my own.

I hope you are enjoying the holidays! Have a great week, and keep saying your prayers. Its working.

Jennifer Hernandez

Vice President/Mortgage Consultant

Patriot Bank Mortgage

Office:    713-337-8400

Mobile:   713-446-7791

E-mail:    jennifer@patriotbankusa.com

Web:      www.loanwithjennifer.com

I ran into a friend of mine today, and she asked me the question “How’s the market?” She knows I am in Real Estate.  I gave her a fact: a house in Bellaire closed last week after being 3 days on the market.  She could not believe it.  So I told her it sold for a little over $2 million and she was even more perplexed!  Yes, this is how Real Estate is.  There are no generalizations to be made.  We can pull alot of statistics and look at numbers, however it will not tell you how long your particular house will take to sell…  I sold an older home in West U in November the day after it hit the market…To get a better idea of what your home will sell for, get the help of a professional.  Or, if you’re just playing with the idea of selling or purchasing, you can sign-up for an automatic email update that will send you information on recent sales around your house.  It is free!  Just email me at Lucie@kw.com with your email address, street address and the frequency of the updates you would like (weekly, bi-weekly or monthly).  You can remain anonymous.  Why not take advantage of it?  It is based on real MLS sales data as opposed to assessed tax values you find on many “real estate valuation” websites.  Now you can get the answer first hand on how YOUR market is doing!