Tupelo, MS

A letter received from a local mortgage company by my office on Sep 3rd, 2008, containing the following excerpt:

In October 2007 we sent out a letter talking about the changes that were happening across the country and how it might affect us. At the time of the first letter the biggest problems were coming from seven states. That is still the case. Adjustable rates and Option Arms were causing most of the problems and again that is still true. Today, however, the falling values of homes across the country are causing the issue to deepen and broaden. Coupled with high-energy costs the consumer in the US is under tremendous strain. Most experts believe that nationally the real estate market will bottom out sometime in the next 6 months if it has not already. Certainly we all hope this to be true. Our market locally is in a good position to move forward but if the picture is too negative nationally it will continue to slow our recovery locally. Last October we stated, "Locally we are going to have to deal with tighter guidelines, higher interest rates on riskier loans, and some program discontinuations." This has proved to be very true. We have seen programs completely discontinued and are about to experience another round of this. On thing that we did not foresee at all was the total disintegration of FNMA and FMAC. These companies are on the verge of bankruptcy. While most believe the Fed will step in to "save" these companies, no one knows what impact that will have on the market. The next 6 months will hold significant change in our industry."

In addition to the above comments Mr. Shirley also pointed out that Down Payment Assistance (DPA) programs could go away October 1st, 2008. Most lenders are adopting guidelines that will end these programs. Also on Jan 1st, 2009, the minimum down payment for FHA is going up to 3.5% from 2.5%, and Up-Front PMI is going to change, however, the new rates are unknown at this time.

This all equates into two main delema's: First, fewer buyers period! (expecially in the entry level market) Second, an added responsibility on the REALTOR. We must all learn to re-educate our buyers of times past, when money was needed to buy a home.

In the words of the old beekeeper: "No Money - No Honey!"

Portions Printed with permission from Mr. Jim Shirley of Gum Tree Mortgage, Tupelo, MS

Can you believe it? What this market has done for luxury living! In one of Tupelo's golf course communities, there are homes for sale that just aren't moving. Moving quickly that is. Homes from $299,000 to $600,000. Bargains compared to like properties in other parts of the country. It's not that they are viewed as over priced...just that they are viewed as pricey! I believe the difference herein lies between affordability, consumer confidence, and perceived risk.

Some lots are elevated, and with a view of the golf course and water, they are some of the most enjoyable views real estate has to offer in this area. It's not that nobody wants to live here...just unable.

A couple of years ago, some of these homes would not be on the market but for a short time.Now the opposite is true. When higher priced homes for sale saturate the market, there is just too much competion from would-be move-up buyers trying to sell their moderatly priced homes. With out the desire (or the ability) of the young consumer to enter the real estate market, the domino effect in reverse is realized.

Once the economy begins it's positive treck again, first time buyers will begin showing up with good enough credit, money, and the desire for home ownership. And the the move-up buyers will move up. And then we will progress. Question is: where is the big kick start going to come from? Surely not from another $600 tax rebate that, for the most part will go into my gas tank, and ultimately to the big oil companies in the form of profits. I think we will need something bigger.

Maybe a new president and a new round of tax cuts can do it!

For those who have the means and the desire, you should consider buying now!!! This buying opportunity will not be around very long and it will be years before a similar opportunity presents itself. If you plan on living until you reach, say 300, then ok....WAIT!

This Cub Fan thinks this is the year (or maybe next) it will all turn around! It's going to happen. I Believe!

Another local real estate company has picked up a new slogan titled "A Sign of Things to Come". Although they have been around for over 100 years, their sign is nothing new.

Now, if you want to see a REAL Sign of Things to Come, here it is:

It is proclaimed that EXIT Realty is the FASTEST GROWING real estate company in HISTORY, growing 6 times faster than Re/Max ever did, and this simply cannot be discounted. If you haven't already checked it all out, visit www.ExitRealty.com , and at a minimum, watch the videos. It will simply amaze you how a simple thing like residuals can revolutionize an entire industry!

Want to sell you home? Our creative technology based marketing solutions are second to none. We have a solution for you.

Buying in the Tupelo Mississippi area? Our agents have the experience you need. Check out www.ExitPreview.com and seach all the homes for sale in our area.

Agents: Want more from your career? Call or email me and I'll send you an informations package. (Indicate Audio or Video CD, or both)

I know that this is not the right venue in which to make my favorite team known, but I don't care! It's been 100 years, and while it may come as no supprise to many, it comes as a fever to many others! As a life long Cubbie Fan, I am almost at that point where I don't know what I will be rooting more for, a RE sale or a world series victory come October. Obviously, I would like to make that next sale, it's just that when you have been spoiled by years of dissapointment, how is one suppose to act when the curse could actually end this year? What will us Cub fans have to look forward to if they do win the series? Maybe another 100 years! Thank goodness none of us will ever have to go through it again. Same goes for real estate. Some of us will probably never go through it again, although others will. Thank goodness re droughts don't last that long or we would all be working for Walmart.

100 Years since the CUBS have won a World Series! It's gonna happen...I believe!

Wow. If you are in a buying position right now there are tons of deals to be had. Never before has there been so many foreclosures on the market here in the Notheast Mississippi area. While I still believe our part of the country isn't as hard hit as other parts of the country we are feeling the mortgage squeeze. Right now Investors in real estate should be jumping all over the many homes they have to chose from.

Remeber the past and make strides in the future. Some of the wealthiest people in our world today always buy when the markets are tanking. Those people who were buying stock during the great depresson were quickly made into very rich people when the markets picked back up. Just like the great depression this real estate market will pick up and hum again.

The problem were are experiencing right now has its root in the exact same situation that has caused many recessions over the years. In 2007 we had a negative savings rate. People are getting into debt and are not able to climb out of the whole they have dug themselves into. Now I am not blaming bankers or lenders for this problem. Although they had a hand in it. We all know that banks were throwing money at anyone with a pulse just 2 years ago but no one held a gun to the consumers head and made them buy more home than they could afford. I am also not asking the governement to get involved in helping people who bought too much and now cant afford to make there payments. Hard lessons learned are not quickly forgottten

So my advice is Investors jump in full force and start buying up those foreclosures.