Chris Lee

Tuscaloosa Real Estate MLS
February 2009 Real Estate Statistics
# of Homes Sold: 83 New Const Sold: 24% (20 Homes)
Condos Sold: .01% (1 Units) Condos Active: 14% (253 Units)
Ave Days on Market: 152 Avg Selling Price: $184,344 Median Selling Price: $145000
# of Homes on Market: 1803 New Const. Active: 19.6% (354 Homes)

For up to date date for the Tuscaloosa Real Estate Market visit www.chriswlee.com

Total Sales:

The increase in Tuscaloosa sales by 8% from the prior month(Jan) is consistent with historic and seasonal sales trends between the two periods. In comparison, the 5-year average(04-08) increase in sales from Jan to Feb is 17%.

The increase in Alabama sales by 22% from the prior month(Jan) is consistent with historic and seasonal sales trends between the two periods. In comparison, the 5-year average(04-08) increase in sales from Jan to Feb is 15%.

Inventory:

The increase in Tuscaloosa inventory by 2% from the prior month(Jan) is consistent with historic and seasonal sales trends between the two periods. In comparison, the 5-year average(04-08) increase in inventory from Jan to Feb is 2%.

The increase in Alabama inventory by .6% from the prior month(Jan) is consistent with historic and seasonal sales trends between the two periods. In comparison, the 5-year average(04-08) increase in inventory from Jan to Feb is 3%.

Median Price:

Both Tuscaloosa and the State reversed recent unfavorable median price trends from the prior month(Jan.). However, the year-over-year(Feb 09 vs Feb 08) percentage change has dipped by 4 percent (Tusc) and 7 percent(Ala).

While Tuscaloosa and Alabama are certainly not immune from near-term pricing pressures resulting from the combination of excess supply and lower than normal demand, a trend that is anticipated to continue in the near-term, the recent FHFA 4th quarter report (see attached) continue to highlight the solid underlying fundamentals of our statewide real estate values from a long-term perspective. In today's challenging environment, Alabam consumers should remain mindful of our state's long-term values associated with residential real estate.

Chris Lee • RealtySouth • Tuscaloosa Office

205-233-5183 • clee@realtysouth.com • www.chriswlee.com

I just finished an article on CNBC.com (http://www.cnbc.com/id/29595747) and it was No Job? Can't Refinance? How to Talk to Your Bank. I felt that it was very good however there are a few other options it didn't go over. As a Realtor i feel that everyone should know as many options as possible just in case you find yourself in this situation.

First Things First

This is a very common problem now in America. People are losing their jobs and with no income it would be very difficult to refinance. Although if this happens you are in a bad situation but all hope is not lost. The first thing you should do if you lose your job and know you are going to have trouble paying is Call your lender. As stated in the article above, find who is servicing your loan. If they can't help you, then ask who is the owner of your loan, they will know this information, and you can deal directly with them. The first person you need to ask for is the someone in the loss mitigation department, they are the only people who are trained to say something other than we need our money!

Loss Mitigation

These people are trained to assist you in these situations. The bank really doesn't want to foreclose on your. They will make a lot more money if you can pay your mortgage and it cost them a lot of money to actually go through the foreclosure proceedings. So explain your situation to them. Consider if you can pay anything, if not you may want to write them a letter of forbearance or postponement of payment letter. Although, this isn't guaranteed if you back up your letter with documentation of unemployment or income loss of you or your spouse your bank my grant you the forbearance until you can get back on your feet. However, you interest will keep accruing. If you can pay something you have several other options. One of these options is Loan Modification.

Loan Modification

This is where the lender actually renegotiates the terms of the mortgage. It is always up the the lender on what they can/will do but many times they are willing to work with you instead of just foreclosing. The government is actually offering financial incentives to lenders for loan modifications as a part of the bail out plan, but it's up to the individual lenders to take advantage of this. If this option doesn't work ask you lender about a short-sale.

Short Sale

Now i know the goal is to keep the home but if you think losing it is inevitable the best option is trying to sell it by negotiating a short sell with the lender. This is actually selling your home for less than what you owe. If the lender agrees and you continue to make your payments until it closes you will not get any money out of the deal but you will save your credit, which will be a very important factor in your lease amount, getting a new job, and purchasing a new home or car once you get your new job. First talk to the bank and see if they are will to participate in a short sale. If they say yes, they wont tell you how big of a loss they will take, but some will give you an idea of what to try to sell it for. Get a Realtor who is familiar with short sales and put your home on the market. Have your Realtor fax in the listing paperwork to the lender, the lender should tell you their fax number and what information they need. Once an offer comes in you and your Realtor will need to send it to the lender for review. You don't actually play a role in negotiating since the lender is actually taking a loss and you are not getting any proceeds. If accepted you Realtor will take it to closing and you will need to be there to sign just like a normal transaction. If you lender will not accept a short sale or if your home isn't selling you may want to check into a deed in lieu.

Deed in Lieu

This is actually when you deed your home over to the lender and walk away. If the lender agrees to this they will allow you to walk away from the property owing nothing and saving your credit. This is only a last resort but is much better than being foreclosed on. Again your lender has to agree to this and is not likely to do so unless all other options have been exhausted.

Remember when dealing with your lender and the loss mitigation departments take note of who you are speaking with, their title, what was said and keep copy's of any information you send your lender or its servicer. Try to stay away from businesses that offer to help modify a loan for a hefty price, reputable companies many times offer 100% money back guarantees or no payment upfront. Even if a company offers this check them out through the BBB and on line resources and ask for referrals because the last thing you want to do is spend a lot of money and end up worse than you are now!

Chris Lee • RealtySouth • Tuscaloosa Office

205-233-5183 • clee@realtysouth.com • www.chriswlee.com

While average home prices in the US fell 8.2%, Tuscaloosa had a rise in prices of 4.84%. Robert Brooks, an economics and finance professor at the University of Alabama, contributed the housing market to the areas diversity of industry and fiscally well-run local government.

"Look at the financial management of Tuscaloosa County compared with Jefferson County up the road. It is quite a contrast," he said. Jefferson County is on the verge of filing the largest municipal bankruptcy in U.S. history because of its inability to pay bondholders who financed the county's multibillion-dollar sewer system update. The Birmingham-Hoover metro area, which is mostly in Jefferson County, ranked 66th nationally.

Nicki Simmons, executive vice president of the Tuscaloosa Association of Realtors, said the report shows the Tuscaloosa housing market remains stable. She said on average, homes in the Tuscaloosa area sell for 97 percent of their list price.

That's good news for home sellers, she said. For home buyers, she said, homes here still are gaining in value and there still are plenty of bargains. Among new construction, many builders are offering concessions like paying closing costs or including extras, she said. There are more than 1,800 homes and condominiums on the market in the Tuscaloosa metro area. In January, the average home was on the market for 123 days, compared with 113 days a year earlier.

This year Tuscaloosa, as well as the rest of the country, looks to see the market stabilize but to remain strong in comparison.

For more information on the Nation housing Report go to www.ofheo.gov/media/hpi/4q08hpi.pdf

For More on the Tuscaloosa market go to http://www.chriswlee.com or Call Chris Lee at 205-233-5183.

Tuscaloosa Real Estate MLS
January 2009 Real Estate Statistics
# of Homes Sold: 77 New Const Sold: 25% (19 Homes)
Condos Sold: 0% (0 Units) Condos Active: 14% (248 Units)
Ave Days on Market: 123 Avg Selling Price: $144,591 Median Selling Price: $131,000
# of Homes on Market: 1769 New Const. Active: 21% (366 Homes)

Click here for past Tuscaloosa Real Estate Statistics

The average selling price and the median selling price are off from December but the number of days on market has improved slightly. The number of homes sold is slightly down while the number of new construction sold increase a little. Overall our market is holding up well with the exception of a few bad months toward the end of 2008.

For updated real estate statistics for the Tuscaloosa real estate market visit http://www.chriswlee.com

Chris Lee • RealtySouth • Tuscaloosa Office

205-233-5183 • clee@realtysouth.com • www.chriswlee.com

Tuscaloosa Real Estate MLS
December 2008 Real Estate Statistics
# of Homes Sold: 109 New Const Sold: 20% (22 Homes)
Condos Sold: 2.8% (03 Units) Condos Active: 14% (240 Units)
Ave Days on Market: 124 Avg Selling Price: $170,158 Median Selling Price: $145,000
# of Homes on Market: 1770 New Const. Active: 21% (378Homes)

The Tuscaloosa Real Estate market is still holding, while much of the rest of the country is having huge declines. From December 2007, the Median Selling price is up from $143,950. While the number of homes on the market is down from 1813. The Days on Market has roughly remained the same during this time (120 in Dec. 07 and 124 in Dec. 08).

There are roughly 69 Active Foreclosures in the Tuscaloosa area, however this number is somewhat skewed since many foreclosures are not currently listed as many banks are holding inventory (see http://www.cnbc.com/id/28898377) and some foreclosures are not listed as foreclosures and you must speak with an agent to have this disclosed to you. This amount of foreclosures is slightly over normal for Tuscaloosa but not by much.

To see individual listings or to see a current market report for Tuscaloosa visit www.chriswlee.com .