Bridget Fredericks

So many people are out shopping and handling their children who are out of school now, that very few people are out looking at real estate. This time of year brings a two-fold issue for a REALTOR. While it's a welcome reprieve from the busy day-to-day that being a real estate agent is normally, it's also a bit disconcerting to have all my prospective business "on hold."

I know I should be out shopping, visting with friends and family, and enjoying the down time. But the truth is, I enjoy helping people with real estate. And I'm addicted to the non-stop, constantly evolving, changing day of a REALTOR. So, I'm really not sure to do with all this spare time.

In fact, I think most real estate agents are action junkies. We need that busy day. We need all the fires to put out. We thrive on the success of solving problems and helping our clients "win" as each goal is met on a daily basis. The stress is not only a motivator, but is also the "juice" that is as important as the air we breathe. Of course, we like the easy deals. The clients who are paying cash, want to close in a week, offer the seller full price, and don't ask for any repairs. But if they were all easy, no one would need a REALTOR!

Those easy deals are really only a once-a-year transaction. You see, the very thing that REALTORS thrive on are the very things that consumers need from us. We are the buffer between them and the other side of the transaction. Half of what we do, is providing the buyer or seller with all the things they need and expect from us. The other half of what we do is handling all the things that neither the buyer nor the seller ever knew would "pop" up! We come prepared for the unexpected.

So, I'll take this down time, to regenerate. I'm ready for 2009. I'm ready to help as many people as I can in 2009. I'll be recharged, refocused, and rearmed with everything that my client needs (whether they know what they need or not).

I'm ready! Come on 2009... bring it on!

So rates are low. I'm sure you've heard that by now! Rates are below 5%, lower than they have been in at least the last 30 years says Freddie Mac in an article they released yesterday. But what does that mean to you?

Well, it could mean that now is a good time for you to refinance. I may mean that now is a good time for you to move. And, I may take some heat for saying this, but it may mean nothing at all to you.

If you plan on owning you current home for several more years and if your current interest rate is 2 percentage points higher than today's rate AND if your credit scores are very good, then it might be a good time refinance. You are going to have to pay to refinance so you'll want to know that you will own this home for some time to recoup the closing costs of the refinance in the savings you have each month on your payment. So don't run out and refinance if you plan on selling within the next year! Also, you want there to be a reasonable savings between your current rate and the new one. 2 points is the general rule, but you can do your own figuring to see if a 1.5% savings on your rate is worth it to you. Finally, the rate that you will see quoted by agents, lenders, etc. tends to be the best rate available and applies to people with 720+ credit scores. If you credit is only average, say 680 or 650 then your rate will be higher, and thereby not as much of a savings on your monthly payment.

If you were planning to move in the near future, the low rates may mean that it's time to move up your timeframe to move so that you may take advantage of the lowest rates available. Even if your credit scores aren't perfect, you will still get a lower rate today. You may or may not get the "best" rate. The point is that the rate starts off so good today that even if the lender has to add to the rate because this is an investment property for you or because your score isn't perfect or because you are buying a condo, it's still better than starting off with a higher rate and adding to it.

Today's rate that I've received from Hancock Bank is 4.75% for a 30 year fixed rate conventional loan. I'm providing you with a mortgage calculator below so that you can start your own calculations.

After watching 60 Minutes last night, I'm happy to report that I don't know what the producers are smoking! First of all, they report on the housing market as if there is such a thing as a national housing market. Folks: Let me just clear up this little myth right now. THERE IS NO NATIONAL HOUSING MARKET. All real estate is local. Let's put it another way. If it snows in Colorado, what affect does that have on the weather in Louisiana? If you answered: None. Then: ding ding ding You are correct! Real Estate is like the weather and there are little, if any affects on one housing market because of another.

In fact, through all the doom and gloom news about housing prices falling, the Baton Rouge real estate market has seen an increase in the average home price for 2008 up from 2007. But wait! Don't just take my word for it. I'm going to SHOW you. I have collected average sales data on a monthly basis for Baton Rouge from 2004 through 2008. The chart below depicts the data for you.

First, please note that housing prices are up and down from month to month all the time. Remember that Real Estate is a long term investment, so when comparing look at 2008 verus 2004.

Second, look at the red line. This line shows the average home sales price for the year. Note how it is steadily increasing even though the "national real estate market" is crashing. Proof Positive that there's no national real estate market.

2005 and 2006 had much bigger steps up in value due in large part to the mass influx of population after Hurricane Katrina, but look at the step up for 2008. Here's an increase in home values even though there's supposed to be a recession going on. Historically, Baton Rouge has shown a modest but steady appreciation. We didn't experience the abnormal increases in appreciation like some of the other markets that are now having trouble, nor did we have a mulititude of predatory lending. These two factors have helped to create a more stable real estate market in the Baton Rouge area.

If you are considering a move within the Baton Rouge area, consult your local real estate professional to get the facts and be armed with data. The news stations are unlikely to provide you with this information. The data I am providing here I have pulled from the Greater Baton Rouge Association of REALTORS MLS.

Here's another interesting point to note. Baton Rouge is expected to see an increase in job growth over the next two years. That's right! 2400 new jobs in 2009 and 6800 new jobs in 2010. More jobs means even more activity in our housing market. So turn off that news station (local or not), close the newspaper, and get the real facts. Baton Rouge is a great place to live with a strong economy, a stable housing market, and expected job growth.

So if you are planning to buy or sell, do it! Now is the best time to make that move. Rates are great I'm ready to help you move.

Interest rates are great! My business partner (and Mother), Linda Fredericks went on the local news to let people know about the great rates. Really the video says it all, but first, let me remind you of my previous post where I talk about the interest rates to be had. Next, let me just say that Baton Rouge is such a great place to live. The local economy is strong and more jobs are coming in to town. You can read about the job stats on Linda's recent post. Now, check out the video below!

I posted a picture of tree in my front yard. It never blooms quite as pretty as it was yesterday covered in snow. We've never had a snow like yesterday, so if you or someone you know is planning a move to the south for the warmth, it's still safe. In fact, we'll have highs in the 70's by this weekend.

Yesterday was a real treat to us southerners. We had 3 inches of snow. And, interest rates are a double Christmas treat. I have contact with lenders that are offering 30 year conventional fixed rate loans at a rate of just 4.875%. WOW! So if you're looking at a $250,000 home with 20% down your principal and interest payment is a mere $1058.42.

Great rates like these may not last any longer than the snow, so if you or someone you know is planning a move - let's get 'em moving!

UPDATE: I've been asked for my lender information. There's a couple of lenders here in Baton Rouge with this rate. One is Hancock Bank and the other is US Capital Corp. And, Yes, the snow had the whole town shut down all day. No school. No Work. But the shopping malls were full!