Real estate slumps start slowly, gain momentum, and feed on themselves like a tornado. Panic sets in. Prices drop. Bottom feeders are vilified for profiting from the distress of fellow human beings.
Suddenly (it seems in retrospect) the worst is behind us. Bottom feeders are praised for "speeding up the recovery by establishing a price for the homes and flushing out the least reliable borrowers." (See this Bloomberg article.)
This is a sign that the end is near.
I'm tremendously encouraged in the last month by the number of purchase loans I'm doing for first time homebuyers in their 30s and 40s. REALTORs who haven't sold a house in months are calling me with referrals. Multiple referrals.
I'm encouraged because the turn times in underwriting for Suntrust Bank are no longer 24 hours. Their government underwriters--those who underwrite FHA and VA loans--are swamped, and my loans that were being underwritten locally are now coming out of Phoenix. I'm getting hand written approvals from underwriters because the system is slow, and we need docs out to title.
I'm encouraged because I no longer have time to process my own conventional loans. (I'm grateful for my fantastic processor, Belinda.)
I'm encouraged because out of town buyers are no longer waiting for a revelation from heaven in order to plunk down their earnest money and sign a purchase contract with their REALTORs.
I'm encouraged because I'm so busy that I'm thankful to be able to refer borrowers to my website application platform. (I'm real glad at the moment that I set up that platform, thanks to the advice of an Active Rain mortgage broker in Texas last year.)
These are signs that the end is near. Batten down the hatches!
Call me. I'm Mike in Tucson, your preferred Tucson, Arizona mortgage lender.
Think of me as your Local Expert.
I show up ON TIME. I do WHAT I SAY I'm going to do. I FINISH what I start. If I mess up, I 'FESS UP & I fix it. In the mortgage business, these 4 things are why you'll want to do business with me.
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I think the end is near too. I have had two closings in the last ten days and have an offer going back and fourth that is looking good now.
Yes activity has gained momentum. Its a great thing and We are blessed.
Mike,
I believe we`ve hit bottom as well.
Our investors believe it too..
When I first heard that my mortgage lenders were swamped with FHA and VA underwriting I knew this was another good sign of a recovery. Baby steps all of them, but all of them steps forward.
I am glad that you see these signs. May has picked up for me, but in an email, I heard from a fellow inspector that buyers in his area are scarce due to driving (people are looking at moving closer to their work, which leaves some communities lacking in sales). The best thing is for us to keep a good outlook, and continue to work weel.
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Mike in Tucson
Mike, thanks for the positive post. We have seen some absorbtion in our inventory, which is another good sign. I am looking forward to the May sales figures.
Don R.
I think we have "hit" or are near too, Mike, regardless been very busy in the last 2 months.
Mike,
I believe that the last 45 days are proving it for us (we were never really down) but glad to be back on track....now get the media to print it and I will be your ever humble servant.....
Mike,
I look at this post and also your last post about tightening in funding, and wonder how the pent-up demand will play out with tighter funding.
Mike, I'm seeing more buyer interest, too. I hope this is a sign of the bottom, and not just a Homer Simpson type bump before he continues crashing further down the mountain!
OK...bring'em on! Actually there does seem to be more activity agood sign for all!
It's just so much fun to read a good news post on a rainy Friday!
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Mike - thanks for sharing your encouraging news. Same goes in our neck of the woods. Have a first time home buyer who was out bid on a home he wanted that was extraordinarily well-priced, and am working with an investor whose been grumbling about having too much competition on the homes they are looking to purchase to build up their portfolio. Now, as soon as the MI companies follow FNMA's lead on loosening up the 5% LTV reduction rule for their 97% products, we'll have more choices to offer to buyers, too.
Sorry but the Bryan & College Station, Texas market is good now and has been good for the last 5 years. PLEASE don't let the end be here! We just want our continued slow and stead increase!
Mike - I have been more busy in the past few months as well. I read a positive article on Yahoo yesterday morning that April 2008 was the first month since January 2006 that new construction has seen a positive trend.
I agree. I've been very busy this past week with multiple buyers. Something that hasn't happened in almost a year. I think this summer will be a blow out. All the people who have been waiting will start to fear that they missed the best opportunity to buy a house, and rush in to find that the best is already gone.
I'm pumped..... But why are showings so down?