Week in Review: 8/24 -8/28/2009

Rates improved slightly this week as we have seen swings of about .125% in either direction of the 5.5% mark over the last couple of weeks. These rates do help keep home owner affordability up, which in general is a good thing. As far as market news, check this out:

1. Housing Market set to enter new stage??? - I am not a person that entertains bad news easily. However, I do like to read different perspectives on the market so that I can be well versed in potential trends. For example, in this article, "Housing Crises set to enter new stage.", the author explores some very interesting statistics that might make some hold still before jumping into the market. The analysis was on how buying trends are not following a normal pattern, foreclosures are beginning to affect even prime borrowers, and the multitude of ARM loans set to readjust. Those three points could definitely have a drag affect on the market, and by drag I mean drag down affect. Nothing is certain but we have to definitely keep our eyes on the overall picture and not just a short snapshot of the last couple of months. It is the prudent thing to do.

2. Extend and EXPAND the tax credit? Are they crazy or smart? - That is right, apparently major lobbying is taking place to extend the tax credit and to even EXPAND it by way of the amount of tax credit and to more buyers (i.e. not just FTHB). Over the last week I have begun to see more and more of these articles/blogs discussing the possibility of extending the tax credit. I don't know if it is a right or wrong question as to whether or not we should take action to extend the credit, there is simply too much gray? We do know that it has helped many FTHB in getting a break for buying the home, but it hasn't had as much of an impact as say, Cash for Clunkers program. Namely because obtaining a mortgage is a bit more stringent than obtaining a car loan. Regardless, I believe an extension could help, but I believe expanding it will not help the market. Further, if the expansion of the credit is tied to the extension of the credit, it might be rejected all together. Just food for thought.

3. Ways to Beat the Slow Down - That's right, as football season begins and the holiday months roll in, typically the housing market slows down. So, in order to keep from letting the slow down affect you, here are some tips:

a. Revisit old contacts - There are a ton of people in our lives that may be able to help our business succeed and in turn you may be able to help their business succeed. Reach out to old contacts, past clients, etc. and get them excited about homeownership opportunities.

b. Amp up Marketing ­- That's right before you are slow, see it in front of you and be determined to keep it from happening. Come up with a seasonal slogan or something exciting that you can talk with people about so that instead of missing the boat, you find yourself on a cruise ship of opportunity.

c. Grind it out - There is something to be said for plain old grit. Understand that with the holidays and family pulling people in different directions it may be difficult but it isn't impossible. Be determined to keep business going strong and make it fun through competition or other means. Remember, sometimes a bit of elbow grease will get the job done. Nothing takes the place of old fashioned hard work.

As always, my number is 602-670-3272. Your referrals and business always makes me smile.