Rocky Mount, NC

The government continues to say that it has to address the problems in the housing market. According to news reports, the Treasury Department is considering a plan to drive down mortgage rates as low as 4.5% to help stimulate the housing market.

"Treasury officials said that the [buydown] plan could be a more effective way to help home owners than focusing solely on borrowers who are struggling to meet their monthly payments," the Washington Post story says.

Under the Treasury plan, lenders would sell newly issued mortgage-backed securities to the government provided the interest-rate on the loans collateralizing the securities was no higher than 4.5 percent.

I think that lowering the interest rates are always a good idea. However, if they think this will bring buyers back into the housing market I think they have missed the boat. Interest rates are currently hovering around 5%. This is a historically low interest rate and still we lack enough buyers to impact the excess inventories.

Why? The banks are still not lending money. Until the lending institutions begin to loan money more freely we will not see a turnaround in the housing market.

We have all heard about the credit freeze for a couple of months now. Everybody in Washington is talking about ways to get our economy on track. But, I still haven't had a single buyer prospect qualify for a loan since September of this year.

I don't care if mortgage rates are at 4.5%. If the standards at the lending institutions are so high that credit worthy middle class Americans can't get a loan it isn't going to have any broad positive impact.

It's all about cash flow, not interest rates!

David C Recker, Associate Broker, Realtor ® licensed in North Carolina. Reach David at: 252-442-2687

Copyright © 2008 By David C Recker, NC Real Estate Web Blog. All Rights Reserved.. * Lowering The Mortgage Rates Isn't The Answer*

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I was reading the paper this morning, http://www.rockymounttelegram.com/news/slow-sales-close-prudential-franchise-276713.html, and saw that the local Prudential franchise, Prudential Ferrell Realty, has closed due to slow sales. The Prudential Ferrell Realty had offices in Rocky Mount and Tarboro.

The agents have been absorbed into the local Coldwell Banker and Century 21 franchises.

I want to extend my wish that all involved will recover and prosper in the near future.

Our local real estate market is suffering a perfect storm. The recession, a poor local economy, the credit crunch, constant bad news via news outlets, and low consumer confidence all combine to create a less than desirable environment.

Even though the government finally said we are in a recession this week we have all known this for some time. I hope our economy begins to recover sometime in 2009.

Locally we will continue to see agents take on part-time jobs, take full-time jobs waiting for better days, or simply leave real estate forever.

I continue to work real estate full-time. This is what I do and I'm good at it. I don't care how many hours I need to work, I will be here and available when people need to buy and/or sell. After all, there are always reasons why people need to move.

David C Recker, Associate Broker, Realtor ® licensed in North Carolina. Reach David at: 252-442-2687

Copyright © 2008 By David C Recker, NC Real Estate Web Blog. All Rights Reserved.. *Local Real Estate Firm Closes*

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Bargain hunters and home owners who pulled their properties off the market hoping for better days down the road helped shrink the inventory of available homes in November for the second month in a row.

Total listing of homes for sale declined 2.9 percent in November compared to October, according to figures compiled from the Rocky Mount MLS.

Total listings at the end of November were less than one percent higher than they were in November 2007 in areas serviced by the Rocky Mount MLS.

Demand for housing slowed in November and pending sales were also down.

Two months do not make a trend, but it's nice to see local inventories drop for the second month in a row.

David C Recker, Associate Broker, Realtor ® licensed in North Carolina. Reach David at: 252-442-2687

Copyright © 2008 By David C Recker, NC Real Estate Web Blog. All Rights Reserved.. *Local Inventories Improve*

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As a seller "Days on Market" are important. Not only do you want to sell your house as quick as possible, you also want the best price. Typically, the quicker you get an offer the better price you will receive.

How do you do this? First, you work with a Realtor© that understands how to market your property to the widest possible audience. Placing an ad in the Sunday paper is NOT marketing. Second, you ensure you have a reasonable and justifiable price for the type, location, size, and condition of the property.

Finally, if after 90 days or 10 showings you still haven't gone under contract then you and your Realtor© need to review the sales plan and make some needed adjustments.

Just this morning I showed a house and the first question the potential buyer had was, "How long has this house been on the market?" The number of days a particular home is on the market is an important factor when buyers are considering making an offer.

Buyers figure the longer a home has been on the market, the more eager a seller is to sell. If the seller is eager to sell, the seller might be willing to negotiate a much lower price.

So, you can see how this piece of knowledge is used by buyers.

A few things to consider, the slower a particular market is the higher the average days on market will be. Therefore, talk with your Realtor© to determine what the normal days on market is for your area and price range.

David C Recker, Associate Broker, Realtor ® licensed in North Carolina. Reach David at: 252-442-2687

Copyright © 2008 By David C Recker, NC Real Estate Now Blog, North Carolina Real Estate Now Blog, and Real Estate Now Blog, All Rights Reserved.. *Why Days on Market Matter*

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Price it Right

I get calls almost everyday from people looking for foreclosed homes. In these tough times it makes sense to look for the best bargain. Unfortunately the local MLS system is not set up to filter out foreclosures as a group. Therefore, to satisfy the growing demand for foreclosed properties I have created my own system.

I have just launched a new service, www.M3Forclosures.com. This service will email foreclosures when they are released and listed "For Sale" by the banks. Many foreclosures sell quickly as they are sold well below current market value.

The initial service area is Nash, Edgecombe, and Wilson Counties. I will consider expanding this service based on feedback and need.

If you would like to receive these "Foreclosure Alerts" simply go to www.M3Foreclosures.com to register.

Your information remains confidential.

It will take about 30 seconds to fill out a simple form to register.

No Fees, No Hassles, No Obligation!

There is NO better time to purchase a home than right now.

David C Recker, Associate Broker, Realtor ® licensed in North Carolina. Reach David at: 252-442-2687

Copyright © 2008 By David C Recker, NC Real Estate Web Blog. All Rights Reserved.. *New Service - Foreclosure Alerts!*

Visit David C Reckers website, www.NCRealEstateWeb.com, and Blog, NC Real Estate Web Blog, for more relevant information about the North Carolina Real Estate Market.