ReSULTS REPORT

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ReSULTS REPORT

• April Edition

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CBS Early Show
CBS Early Show money maven Ray Martin weighed in
on the Saturday Edition about whether buying is
indeed the way go to now.
Question IS THIS A GOOD TIME TO INVEST IN REAL
ESTATE?
Answer Yes, it is, and for a number of reasons.
For one thing, housing prices are declining just
about nationwide. Plus, mortgage rates are at a
serious low. Rates on a 30-year, fixed-rate
mortgage are at a level we won't see again in our
lifetime. Finally, if you buy before December 1,
you'll get an 8,000 tax credit if you're a
first-time buyer. For all those reasons, there's
really never been a better time to go shopping
for real estate.
Source CBS.com 3/14/09
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Forbes.com
Ten Things To Buy Before The Economy Improves
At the top of the list housing. This may be the
best time in a generation to buy a home.
Source Forbes.com 3/31/09
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8,000
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Pew Research Center Survey
75 percent said it was a good or very good time
to buy a home.
Source Pew Research Center 3/16/09
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Sales month over month
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Interest Rates
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Mortgage Rates 30 year fixed
Since 1/1/2009
1/1/2009
Source Federal Reserve
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Source Ashley B. Garner, Intracoastal Realty
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Mortgaging
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Source FHFA 3/18/09
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Major Banks Re-Enter Jumbo Arena
Bank of America is among the major banks rolling
out jumbo mortgage programs and holding the loans
in their own portfolios. It will offer loans
from 730,000 to 1.5 million with 30-year fixed
rates under 6 percent but borrowers must make a
20-percent down payment, have good credit,
provide proof of income, and hold six months' of
principal, interest, property tax, and insurance
payments in reserve. Other banks offering jumbo
loans include ING Group's ING Direct unit and
Luxury Loans of San Diego.
Source Chicago Dailey Herald 3/20/09
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Pricing
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List Prices
The 10-City Composite Index was effectively flat
during the last month but still down 2.1 over
the most recent three month period. This
represents the first non-declining month since
inception of the Composite Index in January 2008.
Listing prices moved up or down by less than one
percent for the month in 16 of 26 markets
indicating at least some level of stability.
Source Altos Research Real IQ 2/09/09
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Prices - year over year
Source Macro Markets, IAS, OFHEO, Census Bureau,
NAR
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Source Seeking Alpha, Tom Iacono 3/24/09
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Source Seeking Alpha, Tom Iacono 3/23/09
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Conclusion The fourth quarter of 2008 saw
substantial increases in price risk as the nation
experienced weaker home price growth, rising
mortgage delinquency rates, and higher rates of
unemployment. Risk is likely to continue
increasing for a while We still expect that
national home prices will fall further because of
the large number of homes for sale. The worst
national price drops are probably behind us,
however, and by 2010 national prices should begin
to stabilize.
Source PMI Report April 2009
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Foreclosures
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Source FHFA 3/18/09
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Shadow Inventory?
Some of the top U.S. lenders own as many as
700,000 foreclosed homes they have yet to offer
for sale, said Rick Sharga, executive vice
president for marketing for RealtyTrac.
Source Bloomberg 3/12/09
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Future Inventory?
A third of owners will stop making mortgage
payments if the value of their homes drop 20
percent or more below what they owe, a situation
known as rational default.
- Norm Miller, director of real estate programs
at the University of San Diego School of Business
Administration.
Source Bloomberg 3/5/09
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