Market Comment - Week of October 20th, 2008

30 year fixed rate loans in low 6's 

Mortgage bond prices remained nearly unchanged last week holding mortgage rates steady. Trading remained extremely volatile with daily movements in discounts points often exceeding 3/4. Much of the volatility in bonds was tied to the stock market where the Dow Jones Index rose by 933 points only to fall 733 later in the week. Trading in the financial markets remains in disarray as governments around the globe grapple with the credit crisis than has spilled over into most facets of their respective economies. One bright spot on the horizon is the continued decline in oil prices. For the week, interest rates on government and conventional loans fell by 1/8 of a discount point.

Fed Chairman Bernanke's testimony to Congress will likely be the most important event this week. The financial markets remain volatile amid uncertainty. Expect the up and down trading pattern to continue.

Are we headed toward a "Depression" ?

• In the the Great Depression 1300 Banks failed - only 13 banks have been taken over by the FDIC this year.
• Unemployment was 24% back then and is currently around 6%.
• From mid 1929 to 1932 the Dow dropped 90% - lately it has been down roughly 30%
• In 1933 when FDR took over 44% of mortgages were in default.  In the 2nd quarter this year only 6% of all mortgages were delinquent. 
  
  
  
  
  WR Starkey Mortgage - A different kind of company...where people come first!

  
  

  Kurt Gonzalez
  Senior Loan Officer
  
  5055 W. Park Blvd #300
  Plano, TX 75093  Work: 972-985-0000
  Fax: 972-985-8282  kurt@kurtgonzalez.com  www.kurtgonzalez.com 

A Nugget of Good News

Well, the economy definitely has its issues but there is also some good news out there for a change.  NAR said the sales of existing homes rose 5.5% in September! You can read the article here...

Radiant Barrier Update

Well, it's time to climb in the attic and install the radiant barrier. In an earlier post, I was in the process of researching exactly what it does and if it would actually save money. After having EAS come out and give me an estimate; I decided this would be a DIY project, but wanted to wait for a cooler season. That season is here.

The goal next week is to decide exactly what foil to use on the roof rafters.  Thus far I've found Attic Foil to be the most comprehensive website around, when it comes to doing it yourself radiant barriers.  You'll find plenty of pictures and instructions on the best way to accomplish this task for yourself and your location.

Market Update - The Kurt Gonzalez Team

More FHA Changes

Down Payment Assistance Programs are being eliminated as of October 1st.  Many banks and lenders are discontinuing the DPA programs much sooner.  We will allow for a closing in October however the loan will need complete underwriting approval by September 30th. Also, HUD has allowed for the down payment to remain at 2.25% with a 3% required total investment for the rest of 2008! 

 

Rates

Rates are in the low to mid 6's year for 30 year fixed and low  6's to upper 5's for 15 year fixed rate loans.  Of course, the down payment and credit score will impact the rate each client can receive.  The fact remains that mortgage interest rates are historically favorable.  Rates continue to be volatile as inflation concerns are prevalent.  

 

 

Great to be in DFW!  

The Dallas-Fort Worth area had the strongest job market among large U.S. cities in the 12 months ending in July 2008, the U.S. Department of Labor said. But the rate of job growth in North Texas has slowed during the last year, said Stanley Suchman, the Labor Department's regional commissioner in Dallas. Still, employment in the Dallas-Fort Worth area grew 2.3 percent during the year ended in July. Houston was a close second, with a 2.2 percent growth rate. The Dallas-Fort Worth area added 68,000 jobs during the 12 months ending in July. Over the same period, overall U.S. employment fell 0.1 percent, shedding 174,000 jobs. Five of the 12 largest metropolitan areas suffered job losses during that time. The largest job losses occurred in the Detroit area, where employment fell by 1.9 percent or 36,700 jobs; and Los Angeles, an epicenter of the housing bust, where employment fell by 0.8 percent or 45,000 jobs . (Dallas Morning News) 

Programs

 

Our Credit Score Simulator can help a buyer raise a credit score by looking at which debts to pay down and how much!

 

Thanks for making August one of our best months of the year!  Most importantly everyone closed on time with no surprises at closing!

 

 The Kurt Gonzalez Team  at WR Starkey Mortgage

 Real Answers - Real Fast

 www.kurtgonzalez.com 

972-985-0000

Taking The Temperature of The Dallas Area Housing Market

CityDreamHome Realty has been watching the economy; and specifically the Dallas Area housing market. As previously stated in our blog post, the Dallas housing market is a little different when compared to most other area in the nation. Yes, we are down, but the hit has been cushioned by a good job market, and lower overall housing cost.

The Lake community of Little Elm remains one of the most affordable places to live in the area; at an average price just under $171,000. It does not hurt that it borders the boom town of Frisco. Don’t get me wrong, this economy still has issues, and we as consumers are paying more for just about everything we purchase. How many of us were shocked when we got the last electric bill? No rose colored glasses here.

With that said, it’s still a buyers market out there and buyers with their credit ducks in a row can take advantage of the many good deals. If you’re a seller and you have maintained or enhanced the value of your home; your chances of a quicker sale are good. Prices are down, so don’t expect the same margins made just a few years ago. In our next post, we’ll talk about the ways you can make your home stand out from the rest.

Here are some recent facts about our local market:


Little Elm

The median single family home price as of August 10 2008 for LITTLE ELM is $170,828

The average property in LITTLE ELM as of August 10 2008 has been on the market for about 108 days.

The median price per square foot for homes in LITTLE ELM as of August 10 2008 is about $79

There are about 414 properties on the market in LITTLE ELM as of August 10 2008.


Frisco

The median single family home price as of August 10 2008 for FRISCO is $325,066

The average property in FRISCO as of August 10 2008 has been on the market for about 124 days.

The median price per square foot for homes in FRISCO as of August 10 2008 is about $97

There are about 1,517 properties on the market in FRISCO as of August 10 2008.


The Colony

The median single family home price as of August 10 2008 for THE COLONY is $197,777

The average property in THE COLONY as of August 10 2008 has been on the market for about 95 days.

The median price per square foot for homes in THE COLONY as of August 10 2008 is about $85

There are about 331 properties on the market in THE COLONY as of August 10 2008.


Carrollton

The median single family home price as of August 10 2008 for CARROLLTON is $188,361

The average property in CARROLLTON as of August 10 2008 has been on the market for about 82 days.

The median price per square foot for homes in CARROLLTON as of August 10 2008 is about $91

There are about 446 properties on the market in CARROLLTON as of August 10 2008.


Dallas

The median single family home price as of August 10 2008 for DALLAS is $247,239

The average property in DALLAS as of August 10 2008 has been on the market for about 122 days.

The median price per square foot for homes in DALLAS as of August 10 2008 is about $116

There are about 5,602 properties on the market in DALLAS as of August 10 2008.

iPhone: New Applications may help Realtors, Buyers & Sellers

I’ve wanted an iPhone since day one! I also remember the first iPod and how the second release was so much better. So I waited…kind of.
I ended up buying the iPod Touch to replace my old iPod. With the Touch, I have the same software and mode of operation as the iPhone; except the phone part.

When Apple released its 3G version of the phone and updated the software, which applies to the Touch & iPhone; I wanted to test-drive some of the new software from the Apple Store before purchasing the new 3G version. Can the iPhone make our lives easier? Is it really like having your computer with you all the time? The following iPhone & Touch applications could be useful to Realtors, Buyers & Sellers alike.

TypePad for iPhone - Free
If you Blog using Typepad, you’re in luck. You can do it directly from your iPhone. This includes uploading pictures. Take and post pictures with your iPhone or use the pictures from your photo album. The best part about this is that you can blog from anywhere and anytime the mood strikes you to update your blog. Depending on your type of blog, this means you can get info out as it happens.

For those of us using Blogger, the news is not so good.
ShoZu – Free
This app claims to keep you connected to over 40 of your favorite sites, including Blogger, Twitter and more. Some users claim it was hard to install and others have said it crashed their iPhone. I installed it and found that it’s an app with lots of potential, but not yet ready for prime time. The Blogger function only allows picture uploads for now, and you have to sign up on ShoZu’s site. I suspect some users may have skipped this step and therefore found it useless. I’m keeping an eye on this one.

Whether behind the desk or on the road, you can let everyone know that you have just updated your blog with…
Twitterific – Free
A social networking app on your iPhone. If you’re on Twitter, this is one of the best. Be warned that you could get addicted to the Tweets. The company also adds more functionality with Twitterific Premium - $9.99.

More social networking apps you can download:
AIM
Facebook
MySpace Mobile
and some others I have never heard of, like Limbo, Zintin, iFob, Whrrl, Eventful, Exposure (premium for $9.99), LifeCast, Pownce, and Graffitio. All Free

OmniFocus - $19.99
A productivity application and winner of the 2008 Apple Design Award.

YPmobile – Free
From yellowpages.com
Mini Mortgage Manager - $1.99
Use this to quickly estimate how much your monthly mortgage payments will be, based on the amount you want to borrow.

Weather Bug – Free
Nice to have on the iPhone… I followed and avoided an isolated thunderstorm with this! Hopefully they will animate the radar in a future update.

Puluwai Real Estate Search – Free
Do a quick search on homes for sale. This app also allows you to see pictures, save your favorite homes and send email directly to the Realtor. Nice app and one to watch for sure.

With Apple opening up to software developers, you can bet that there will be plenty of apps to come in the near future. Most of these programs are very small, so they don’t take up too much iPhone space. The free ones are fun to try, and if you don’t like or can’t use the software, it’s very easy to delete.

See all the Apps here

The Growing Town with Lake Attitude

NTTA Rendition

This is a quiet community which enjoys spring & summer music in the park; all sitting just off Lake Lewisville. Besides being a lake town; Little Elm, TX has plenty of shopping and if you can't find it here, it's close enough to Frisco, Plano and Dallas.
Access to major highways is improving everyday. If you work from 8am-5pm, it can be a challenge at times, but traffic is rarely at a standstill and tends to move quicker than you might expect. The city is adding roads in some cases and extra lanes to major roads in others. Highways include: the Dallas Tollway, Highway 380, and 121. The Lewisville Lake Toll Bridge is also being constructed to connect Little Elm to I35. It's a town growing up nicely to accommodate the increasing population.

NTTA Photos

View Larger Map

Links...

Official Website

City Data

LEISD

Wikipedia

Fall in love with this spacious and well designed Lennar home!

High Quality version

Pimping My Attic

Radiant Barriers: Hype or Hope? Part 2

We are well into June now and the electric bills are starting to reflect that. I’ve heard of electric bills as high as $700! Some say their last bills doubled past the previous month. Our bill jumped $100. The squeeze is on and we’re all trying to cut what we can and still maintain our lifestyles.

I appreciate Home Depot. That’s why I looked into this offer in the first place. A good name and a business I already trusted, how could I go wrong. The radiant barrier sounded like a great idea on so many levels. It still is a great idea, but not from Home Depot.

Call me a skeptic, but I wish there was a door scan which every “salesperson” had to walk through before they entered our homes. This scan would automatically de-scam the visitor and allow them to deal with me in an honest and upfront manner. Since the De-Scammer” does not exist, I attempted to peel the layers back on my own to see what I could find. It really is a shame I have to take this stance, but better safe than sorry. It’s all part of being a careful shopper during tighter economic times.

Home Depot sent out a consultant from EAS. Nice guy; sorry deal. I led “Tye” upstairs and he walked in every room, approximating attic size. He then climbed the ladder to the attic and spent some time walking around. So far, so good… this is pretty much what I expected him to do. What I didn’t expect was the price tag. Home Depot requires you to purchase at least $500 worth of insulation, but mine came in over $900. If you do so, they will cut the price of the radiant barrier in half. The price for the “radiant barrier” would be well into the $900’s also(half price?). Sigh… so I’m looking at $1900 for both; the attic floor insulation, which sits on top of the insulation already there, and the sprayed insulation on the attic roof.

That’s when I decided I could do this on my own. Hiring Home Depot, at this time, seems like a luxury. This can be done for less than a $1000 in most cases. The downside of that decision is that I’ll have to wait. The attic is not where you want to be during a Texas summer.
For me, this deal is hype, but the radiant barrier offers hope. I hope I can save the 30% on my electric bill, like all the experts say I will.

More info and pics...

A word from a Preferred Lender...

Shopping for a Mortgage

In theory, finding the right mortgage should be a fairly simple process. After all, there are literally hundreds of options to choose from, including Fixed Rate, Adjustable Rate, Hybrids, and Interest Only loans, to name just a few. Mortgages are available with interest rates ranging from an introductory rate of 1.00% to well over 10.00%. Borrowers can even finance up to 100% of their home's value and, in some cases, their closing costs as well.

In reality, however, this vast selection of mortgage products has made choosing the right one a challenging endeavor, to say the least. Without sound advice from an experienced mortgage professional, consumers are at the mercy of a complex financial decision that could impact their lives for years to come. At a minimum, home buyers should consider the following questions before putting any mortgage into place:
• How long do you anticipate living in your new home?
• Do you foresee any changes over the next few years, such as expanding your family or having children go off to college?
• Do you anticipate any adjustments in income due to promotions, relocations, retirement, inheritance, or pensions?
• Are you expecting a change with regard to your investments?
• When it comes to investment strategies, are you conservative, aggressive, or somewhere in between?

As a mortgage professional, it's my job to match clients with the mortgage product that best serves their changing goals and needs. I take pride in helping each and every client succeed.

Aaron Duca
Mortgage Loan Expert
PrimeLending, A PlainsCapital Company
Phone: (972)370-5626
Fax: (866)607-1547
aduca@primelending.com
http://www.ducamortgage.com

Radiant Barriers: Hype or Hope?

I’ve been researching “Radiant Barriers” for the last few days; wondering if they can contribute to our home energy saving efforts. We called Home Depot to schedule a consultation. I hoped to eliminate the constant barrage of questions I would normally have; especially since prior to the call, I knew absolutely nothing about radiant barriers. I only knew it sounded good in theory.

Most do-it-yourself radiant barriers are of the rolled foil type, either applied to the rafters or the attic floor. EAS (Efficient Attic Systems), a partner to Home Depot, list how they create a radiant barrier in your attic. I did not see foil in any of the pictures, and I wonder if this sprayed on gunk will reflect well and have low emissivity.

Here are some links I found helpful.

http://www.radiantbarrier.com/
http://en.wikipedia.org/wiki/Radiant_barrier
http://www.freepatentsonline.com/4776142.html

For in-depth Department of Energy information on Radiant Barriers click here . Although this is dated June 1991, there is still plenty to learn and digest.

Before doing my research, my first 2 questions would have been:
how much?
and how much will it save me?

After doing some research and gaining some rudimentary knowledge of the subject; my first two questions remain:
How much?
and how much will it save me?

They may have to be my last 2 questions answered. Whoever they send out must see the space and find out what & how much before they can give me an estimate.
I’m eagerly awaiting the consultation. I have questions and I’m confident they will have the answers. I’ll post my findings here after the appointment.

Key Housing Stats Today

• US Home prices fell 14.1% in first quarter of 2008
• New Home Sales post unexpected 3.3% increase
• US Median Home price down 4.2%
• High inventories fell from a 11 month supply to 10 month.

The following news report from MSNBC has more stats... and illustrates the fact that this could be good news for Buyers in DFW!

NOTE: this video is no longer available

Meghan Carter on "Going Green"

Ask the Decorator

This is not good... Oil prices hit record high

Frank Holmes, it appears you were mostly right. The problem is that the dollar is not rising and may not any time soon. Today, a barrel of oil went up to $133.79!

Could it be that we have finally reached that point where how we consume this resource matters? Must we actually consider changing our habitual behaviours, like... driving? Should our city councils think about mandating energy saving measures for home builders, as Frisco, TX recently did? New homes in Frisco must meet federal Energy Star efficiency standards.

Another Frisco goes green...

A small step, but an important one. This takes more than a city or a village. It will take a serious attitude towards a problem; much like a sore tooth, that just won't go away. In addition to a grassroots effort on all of our part; it will also take a concerted effort from the federal government.

think links...

SmartCar

Mini Cooper

Greenest Vehicles of 2008

Thumbs up for Gas Prices going down

Appearing today on financial news channel CNBC, US Global Investors CEO Frank Holmes said that the price for a barrel of oil will “fall back to $85 - $100" per. Why? Because historically as the dollar gets stronger, the price for oil declines. After 20 years of tracking this, the financial markets agree there is a trend. The flip side they say, is that oil prices will go up again because demand remains high.

“MyConomy”

Most of my current and prospective clients are concerned about our economy in general and “myconomy” in particular. They have heard all the bad news and some of the good. They watch as gas prices dig deeper and deeper into their pockets, and they wonder if now is the right time to buy a house.

The answer to that depends on your situation of course, and you need to know; you need to find out where you stand in today’s financial market. A reputable lender is a good place to start in order to take that necessary look at your “myconomy". The best of breed will tell you how much house you can afford and how much they will charge you for the loan; furthermore, if you are not qualified they will let you know what it would take to become qualified in the near future.

Yes, the time is right to buy a house. It’s a buyer’s market. You hear it all the time; but make sure that the people you deal with give you both sides of the story. You want the good, bad and the ugly. You not only want the dream, you want the reality.

related article: Credit Score Needed for Buying a Home in 2008

A Market for Your Listing

Our marketing plan is designed to help you sell your home in the least amount of time, for the highest price possible, with the least inconvenience to you. Our marketing techniques and activities include…Professionally designed flyers with interior and exterior photos, and marketing information about the property. We will place a flyer in the home to assist Agents when showing, providing property descriptions and any special requirements. Installation of a personalized sign on your property. Our website address and our phone number is on the sign so we can screen all leads. Along with the sign, a brochure box (if appropriate) containing an informational flyer with photographs, as well as our phone number and website address for viewing additional photos. Your Home Online...Over 80% of potential buyers start their search online. This growing segment of the population will be able to see at least one photo of your home on the front page of our website. We will enter your property in the MLS listing system where it will appear with digital photographs, a description of your property and showing instructions. We will advertise your listing on Craigslist, which will be updated every 48 hours, for better visibility. Your home will also be listed on Postlets for even more visibility and overall Internet presence. These efforts will continue until your property is sold!

Call or email anytime to setup your listing appointment.
214.625.9510
angie@citydreamhome.com

www.citydreamhome.com

The Green Table: a 4-point starter kit to energy efficiency

1 - Our appliances use about 18% of a typical home's total energy bill. The refrigerator is one of the biggest energy hogs. so if you have a second older one, you might consider getting rid of it or upgrading to something newer with an Energy Star rating. According to the Energy Star site, if just one in 10 homes used energy-efficient appliances, it would be equivalent to planting 1.7 million new acres of trees.

2 - Save water. The Web site "Water -- Use it Wisely," created by a group of Arizona cities, list 100 simple ways to save water.

3 - Be aware of the thermostat... almost half of our energy cost comes from heating or cooling.

4 - Light your home the energy efficient way... by using Compact Fluorescent Light bulbs (CFLs) you can use 66% less energy than the standard incandescent bulbs. The upfront cost is a little more, but they last 10 times longer.

Frisco, TX. reaches 100,000!

Learn more about Frisco and the surrounding communities...

http://www.ci.frisco.tx.us/

http://www.plano.gov/

http://ci.little-elm.tx.us/ - a new look website for this thriving lake community.

The Green Table

Once we learn that going green not only helps save the planet, but also has a positive impact on our money (the other green); we are finding that more and more people are pulling up to the green table. As the business world becomes more involved in the process, we as consumers will find more doable ways to save both the planet and our money. Maybe we'll see conversion kits, not only for our cars but for our homes; i.e. light bulbs, weather stripping and power meters to measure electrical use of our appliances. All combined in a handy package for our convenience.

As of April 2008, Texas continues to lead the states in terms of both total installed wind power capacity and the amount of new wind power capacity that was installed last year. Texas has the largest wind farm in the world and the Texas Public Utility Commission announced its approval for even more transmission lines. This is all great because using wind turbines to create power is clean. There is no pollution, and no greenhouse gas.

One day Texas may get behind homeowners and help with the initial expense of building a green home, converting an existing home or installing solar power; especially when this lessens the overall load on the power grid. There has to be a financial savings in that for the state and the nation.

We All Have a Dream

The dream I'm speaking of is the one which commonly takes most of our money and discipline to realize. The dream of owning our own home may be harder to qualify for these days, but it's not impossible; and for some this could be the best time to get in the market. Generally speaking, prices are lower and the choices are great. So, if all of your credit ducks are in a row, it may be time to do your Internet search, make some calls, and plan to drive (considering the price of gas, a 'plan' is a good thing) through your desired area of town.

I live in the sprawling and constantly growing DFW area. I must admit that I was envious a few years ago when we all watched housing prices explode into the stratosphere in California, Arizona and Florida, to mention a few. We heard of the fortunate folks doubling, tripling or simply becoming millionaires selling their homes; buying another and making even more money. Television shows popped up, enticing our greed, telling us how we could buy, fix-up and flip. We did; and some of us made out like bandits.

It was like a bad flu season. It all started in the before mentioned areas and slowly spread to the center of the country. Lucky for those of us who live in this area, you could say we had been inoculated, because we never saw the prices explode. Yes, they went up and in some hotspots of the area, they went up a lot... upwards of 30%-50%.... that's it!

As they say in the financial markets, "high risk, yields high returns" and "low risk, yields low returns". I like to think of it as low risk/low stress. This is your home, not a piece of paper. We all hope to buy low and sell higher, and in most cases home ownership is still a great investment. A great investment which needs to be protected and possibly enhanced to make your home a great deal for the next buyer. We all have a dream.

Today is Earth Day, and next we'll talk about how we can make our homes more green.