RealtyMan Spotted at the Mass Assoc. of Realtors Convention

See if you can find Gerry 'RealtyMan' Bourgeois in this video: Click Here to find Realtyman
This was recorded by the girls at BatchBlue.com

Could This Be The Best Time To 'Trade Up' in Real Estate?

Ok, anyone who does not live in a cave on a remote island somewhere (and probably them too) know that the real estate market has been beaten up over the past couple of years. Most of us know how and why we got here and where things went 'wrong'.

Fine, we were 'there' and now we are 'here', but has anyone cared to take a look at where 'here' is?
House prices have fallen pretty much across the board in Leominster, MA and the rest of North Central Massachusetts (some areas more than others). One of the interesting facts is that the Fixed Rate 30 year mortgage has been ranging in the 6%'s for quite some time now - with the rare occasional dip into the very high 5%'s. So, prices have softened but rates have remained relatively stable (and still historically very low).

So what does this mean? In my opinion, this is one of the BEST times to trade up to a more expensive home. Why?
Many people are trying to 'downsize' which is resulting in a lot of inventory on the upper end of the market - therefore supply/demand is in your favor.

In addition, the market is very compressed in many of the towns in central MA. Meaning, that a 'little more money' will buy you a LOT more house. Just compare what you can get in Leominster, MA for $250,000 to something at $350,000 and you'll clearly see what I mean.

Also, you are buying into the down market. When prices appreciate (and they will at some point), the percentage gain on a larger value will result in a larger return (e.g. 20% of $500K is greater than 20% of $275K).
And remember, mortgage rates can't stay this low forever.

So there is opportunity for those with a long-term view of residential real estate. How does it play into your current situation? I don't know - but contact me; I'd love to help you figure it out.

92 Revolution Dr., Leominster, MA 01453

Foreclosure Deeds in MA Reach A Record in April, 2008

I received an email this morning from Banker and Tradesman (a publication of The Warren Group) indicating the following:

"Massachusetts foreclosure deeds soared to their highest recorded level in April, according to The Warren Group, Banker & Tradesman’s parent company. The number of deeds so far this year outpaced those in the first four months of 2005 by 1,165 percent."

Sounds bad doesn't it? But here are some points to consider:
These foreclosures are largely a result of activities that took place 2 to 4 years ago.

Since then:

• Lending Standards Have Tightened significantly (and in my opinion; TOO much).
• 100% financing is no longer available to 'Just Anyone' anymore.
• Prices have adjusted.
• Conventional Fixed Mortgage are still Historically 'Good'.
• Conforming Loan Limits in some counties have been increased (unfortunately Not in Worcester County).

So what does it mean for Sellers?

• You MUST price your property correctly for The Current market we are in!
• You MUST have your properties Marketed aggressively!
• Your property MUST be Better than every other that you are directly competing against!

So what does it mean for Buyers?

• You have a Great Opportunity right now!
• Mortgage Rates are Historically LOW!
• There are Many Homes for you to choose from!
• You are 'Buying Into a Down Market'!
• Your lender does NOT want to put you in a situation where you will face foreclosure!
• The Real Estate Market will go up again - not sure when - but it will!

So Remember The Following:

• ALL Real Estate is LOCAL!
• Nobody will see 'The Bottom' until we are past it!
• Mortgage Interest Rates Cannot stay this low Forever!
• The Real Estate Market is Worse in some parts of the country and is Better in others!
• The "media" cannot sell 'The Middle' of any story. Only extremes can sell papers/tv/etc... so they always report on the worst!
• Always use the most Knowledgeable and Reputable Realtor that you can find to assist you if you are selling OR buying!

Fannie Mae (FNMA) Takes Away Declining Market Penalty

On May 16th, 2008 FNMA (otherwise know as Fannie Mae) has repealed the reqirement that borrowers in 'Declining Markets' put an Additional 5% down payment on top of the typical down payment required for the program Effective June 1st, 2008. This is GREAT NEWS for Worcester Country, MA which was declared by FNMA as a declining market (FNMA's definition of a declining market is 2 consecutive quarters showing 1% or more decline in value).

This provision was pretty unreasonable given the current climate and has further aided in the slowdown in the market in 'declining markets'. In addition, FHA Lons have gained in popularity over the past few months due to low downpayment requirements and the realative ease of qualifying borrowers (especially first time borrowers) - In essence FHA was eating Fannie's lunch!

More lending opportunities can only help this market which still is ripe with opportunity.

Could it be that 'common sense' is now starting to prevail in the mortgage lending markets?

What do you think?

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