Bill Hitchcock

To buy or not to buy, that is the question!

By: Bill Hitchcock

Is now a good time to buy real estate? That is the most common question and hotly debated subject of the day. Only 3% of all homes listed this past January Along the Crystal Coast actually sold. Average sales for that month are around 15%. During 2005, the biggest sales year ever here had January sales at 20%.

So with sales so poor, does that mean it's the wrong time to purchase real estate?

I came up with a saying many years ago that best describes buyers and what they tend to do wrong. "Buyers buy when all the other buyers are buying which is the worst time to buy". Yep, it's a brain twisting saying but happens to be very accurate.

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Price, interest rates & sales continue to drop

Time for William Shatner to Negotiate?

By: Bill Hitchcock

The Crystal Coast real estate market continues to be fantastic-If you are a buyer! The current average sold price of a Crystal Coast home is at $211K. This is averaging the past 30 days and this price is 16% less than the same time period last year. It is 18% less when compared to the 30 day time period before that.

Declining prices generally jump start sales, but not in this case. Sales are off by 31% when compared to last year and down 25% when compared to the month before. And although we have seen a decline in inventory (down 8%) we still have the second all time highest level of inventory to choose from.

According to Bankrate.com the average 30 year mortgage interest rate being offered up in North Carolina Thursday (12/11) was 5.71%. I received an e-mail today from one of our local Crystal Coast lenders that are offering rates as low as 4.75% with no points. As a caveat-This particular lender requires a minimum of a 720 credit score.

Since price, interest rates and sales continue to drop-Does this mean you should wait to buy? Well let me ask you a question- When are one or all three going to rise again? Oops! Trick question-No one knows for sure. This I can tell you-All three-price, rates and sales- are at historic lows. But there is one variable no one ever seems to factor into the equation-Negotiations. Yep-It's time to do your best William Shatner Priceline Negotiator bit with the seller. But please keep in mind that negotiating does not mean offering up some unwarranted price that is ridiculously low. I have seen that back fire on the buyer by offending the seller and then the seller refusing anything but full offer.

The point I am trying to make is this. Most folks don't realize the great opportunity that the current market sometimes offers. Most folks keep their eyes fixed on mortgage rates and totally miss the golden opportunity of the current prices and the great potential to negotiate that price and terms to their benefit.

Great News!

Yes-I'm talking great real estate news!

By: Bill Hitchcock

(Note: The Crystal Coast area is located betwen Hatteras and Wilmington, NC)

I thought it would be interesting to compare each month's sales to it's corresponding month from the year before. What I discovered was that as of October 30, three months this year have had the same amount of sales as in 2007. (OK-I fudged a little bit. August 2007 sold 117 homes and in 2008 it was 116)

How significant is this?? Very significant!!. Sales have been on the decline along the Crystal Coast ever since the spike year of 2005. This is the first time that any month, let alone 3 months have not been in decline when compared to the same month the year prior. This is highly significant!

The only way the Crystal Coast real estate market has been able to chip away at the glut of inventory has been to reduce the amount of new inventory coming on the market. Trust me-That isn't the real estate broker's doings for they still have a "list and sell, list and sell" mentality. It is the market place righting itself.

Fortunately in 2008 every month has seen a decline of new inventory coming on the market

Probably by now some of you are wondering if I really am a real estate broker with all of the above "stuff" I have been writing about. But the reality of the situation is inventory has been at historic highs, sales at historic lows and new on market have outpaced sales by 3 to 1.

Now, finally in 2008 we have had positive sales and new inventory on market have waned greatly. These two aspects created something I haven't seen in years and is the very thing we have desperately needed-A decline in over-all inventory.

This past September (and for the very first time!) showed over-all inventory less than the year before. A-Men! In fact, right now at this very moment we have almost exactly the same amount of inventory on market as we did the first day of the year! Say it again: A-Men!

Are we out of the woods yet? No. Are the signs of improvement a fluke, some unaccountable phenom? No to that too. As my father use to say, "It takes a long time to turn a battleship around in the water" Which was a strange thing for him to say because he was in the Air Force-But the point he was making is clear. It takes time for things to turn around. Especially big things like real estate markets.

In my opinion (and I stress, "opinion") we will see strong signs of improvement at the end of 1rst. Qtr. of 2009 and blossoming during the 2nd Qtr. Just be forewarned-Winter time along the coast of NC is slow. It always has been and it always will be. But don't let the normal ebb of the area fool you into thinking that improvements are not underway.

Bill Hitchcock

Crystal Coast Real Estate Television

http://www.crystalcoastrealestatetv.com

Hitchcock Realty

http://www.hitchcockrealty.net

Bill Hitchcock

http://www.billhitchcock.net

Obama/Biden: When the Judge Becomes Your Mortgage Broker

By: Bill Hitchcock

http://www.billhitchcock.net

From the Palin/Biden Vice Presidential debates on October 2, 2008

Biden:"Number two, with regard to bankruptcy now, Gwen, what we should be doing now - and Barack Obama and I support it - we should be allowing bankruptcy courts to be able to re-adjust not just the interest rate you're paying on your mortgage to be able to stay in your home, but be able to adjust the principal that you owe, the principal that you owe."

The Obama/Biden web site States: "Obama and Biden will work to eliminate the provision that prevents bankruptcy courts from modifying an individual's mortgage payments."

Absolutely incredible! A Judge, acting on his own free will would be able to determine the mortgage interest rate and the principle amount owed by a defaulted borrower.

Do you realize how dangerous this is? A judge allowed to reduce the interest rate and to reduce the principle of a mortgage loan. The potential problem this creates is in encouraging folks to not pay their mortgage bill and file bankruptcy. Why not-It becomes a viable option. Just have the judge lower your rate and reduce the amount of monies owed.

Is this even constitutional?

According to the website USCourts.gov, "Bankruptcy laws help people who can no longer pay their creditors get a fresh start by liquidating their assets to pay their debts, or by creating a repayment plan".

Bankruptcy Courts liquidate. They do not restructure loans, refinance into new interest rates and do not create a new principle balance owed. What qualifications does a judge have to act as a mortgage broker?

This goes beyond being a "cramdown"., which is a forced restructuring/reorganization of a loan against the will of the creditor. This becomes a viable option for refinancing. It encourages people to get into loans that they know that they can't afford.

This also perpetuates the mortgage lending crisis. Too much money being lent to too bad of a risk and millions and billions of dollars will be lost.

Bill Hitchcock of Crystal Coast Real Estate Television gives a complete and comprehensive report on the real estate market along the Crystal Coast of North. Complete analysis of the findings from September and all of the 3rd Quarter. This information can be found no where else!

To watch: Click Here

Crystal Coast Real Estate Television: http://www.crystalcoastrealestatetv.com
Bill Hitchcock: http://www.billhitchcock.net
Hitchcock Realty: http://www.hitchcockrealty.net