Heather OSullivan Canney

According to various local media sources, we have more good news to be happy about!

In The Triangle (Raleigh, Durham, Chapel Hill NC):

Unemployment rate is down!

Foreclosures are down 46%

Home Sales are up 5.5%

Woohoo! Spread the word!

I recently read the Obama Tax Plan and was concerned to find (on pg.2) that it stated that homeowners would recieve a 10% tax credit for mortgage interest paid. Since mortgage interest is currently fully deductible, I asked my CPA who said that under the Obama plan, that would change. I can't seem to find any other information regarding this, and haven't heard anyone discussing it. Obviously such a change would dramatically shift the current buy vs. rent advantage (not to mention the fact that it would affect the taxes of all income levels, not just those above $250k). The last thing that we need is something else to deflate the housing industry! Does anyone have any information to support or clarify this?

Wow, what a roller coaster the past few weeks have been! The news certainly hasn’t been great, but it’s also being spun in very broad strokes. To say that ALL credit is frozen is about as accurate as the media’s portrayal of the housing market for the past year!

Recent events have definitely affected many financial institutions. No question about it. But there are still strong companies out there, and they are still in the lending business. Look at those who are buying these fallen entities. Citicorp, Bank of America and Wells Fargo are still out there doing business. In fact, I know loan officers at Suntrust and Wells Fargo, who are still quite busy. Wells for one, has loans available for borrowers with credit scores as low as 620, and even some with no down payment!

If you want or need to move, there are ways to do it. First, go to your Credit Union, or the larger companies listed above. Find out the truth, don’t make assumptions based on the “junk food” that the media is feeding you. If you do qualify for a loan, find a professional to help you navigate through the market. This is always my advice, but now so more than ever. There is a lot to choose from, and a lot of “deals “to be had. But don’t be fooled by properties that were priced too high to begin with and then “reduced”, and don’t overlook those that are priced as bargains to begin with. Many people think if they get a home for less than the “asking price” they have gotten a great deal. Many also miss out on great deals if they can’t “get the price down drastically”, because they think that they are supposed to be getting a great deal, and aren’t.

If you don’t qualify for a loan, look at other options. Seller financing, lease options, etc. are all great ways to get into a property, but find a professional with experience in these. Many Realtors have only been in business during the “boom times” and have NO idea how to work in times like these.

Think you can’t buy because you can’t sell? Not always true. You may be able to rent your property, and then buy. You also may need a more experienced professional to get your home sold. Listen to them! Forget what your neighbor sold theirs for last year, what you think it “should be worth” and what you “want to buy”. None of these factors ever had anything to do with real “market value” anyway. It never ceases to amaze me the people who will say “but I need to make $X because I want to buy a home that’s $Y”. I always want to say “I want my home to be worth a million bucks, but that doesn’t make it so!” That’s like saying “I need to sell my kia for $50,000 because I want to buy a Porsche!” Good luck with that!

There have always been people who fail miserably in the worst of times, and those who create huge success in the worst of times. The difference? Mindset!

You will always find what you are looking for. Say “ I can’t” and you will create that reality. Ask “how can I?” and you will find a way…

I had a professor in college who said:

"Statistics are like bikini's. What they reveal may be interesting ,but what they cover up is crucial!".

Truer words were never spoken! For example, (from the article linked below):

Florida prices were off 5.3% from last year and 12.4% from the previous quarter. Which sounds worse? Down 5.3% or 12.4%? If you want it to sound bad, just pick the latter.

We all know that in the media world "what bleeds, sells". There is no drama if the news isn't bad, I guess. Ironically, I have been involved in a number of community meeting that a local news station has sponsored to find out what "we like, don't like, and want in our local news reporting". Every single time, the RESOUNDING consensus is that "we want more good news"! What a concept! You mean we don't want to be completely depressed by our local media providers every day when we wake up and every night at dinner???

I can only speak for our area (which we are very lucky to be in!), but people here are saying "I don't know if I should buy_____ right now, they say the economy is going to get worse". They are NOT saying " I've lost my job", or "I can't afford it" (unless they are a builder, lender, Broker. or small business owner!).

I've said it before, the consumer needs the real "unspun" truth. They need be advised against making bad choices. We don't serve them by not doing so. HOWEVER, it is also our responsibility to make sure that they don't miss out on opportunities! There are loads opportunities out there to generate real wealth right now, and we owe it to ourselves, our clients and our community, to spread the word and to not allow the media, or anyone else screaming "the sky is falling" to rob us of not only opportunities, but of the ability to sleep at night!

Our clients need us to give them truthful advise, valid information, and most of all, hope and confidence! If we don't, who else will!

Need proof? Look at these stats...Yes some numbers are pretty bleak, but many aren't nearly as bad as you think!

In the Raleigh-Cary area, our appreciation rate (1yr) is at +4.84%!

Home Prices by Metro Area - MSN Money 8/26/08