According to figures released by MLS Realcomp II Ltd. the number of residential real estate units sold in foreclosure and non-foreclosure in Oakland, Wayne, Macomb and Livingston counties in 2009 showed a combined increase of 19.3 percent to 55,100 in 2009 compared to 46,200 in 2008 with the median price for non-foreclosure sales showed a strong increase toward the end of the year. With the city of Detroit showing a 32% year over year increase in prices.
Of course, what happens in the Detroit Real Estate market has a knock on effect for the region and its neighbors – including Ann Arbor, so this is great news!
Nationwide, according to the National Association of Realtors the latest figures show 2009’s figures were way above 2008; In 2009 there were 5,156,000 existing-home sales, which was 4.9 percent higher than the 4,913,000 in 2008 – the first rise since 2005. This was coupled with great news that there has been an increase in overall prices! The national median existing-home price for all housing types was $178,300 in December, which is 1.5% higher than December 2008! Overall existing home sales in the midwest were up 8.5% in Dec 09 over Dec 08 and inventory nationwide has fallen again!
However, sadly the program is not quite what was expected as Fannie Mae’s REO listings will now go to homebuyers who plan to occupy the units they purchase – so not really for investors.
Fannie Mae has tens of thousands of properties nationwide and lists them through a participating broker so that those who intend to occupy the property get a first look – investors are only allowed to submit bids after the first 15 days.
So for the first 15 days Fannie Mae will only consider offers from owner occupants, local agencies participating in neighborhood stabilization or community development programs.
“First Look” is a great idea but it could be seen as inconvenient for those investors who have cash ready to purchase a property.
We shall see how the program pans out in the new year as the market changes.
The latest figures are the ninth consecutive month for a rise in the number of pending home sales in the pending home sales index for the nation! The first since 2001 when the index was created. For October 2009 the index increased 3.7% to 114.1 from 110.0 in September, and is 31.8% above October 2008 when it was 86.6. The rise from a year ago is the biggest annual increase ever recorded for the index, which is at the highest level since March 2006 when it was 115.2.
Lawrence Yun, NAR’s Cheif Economist, says that he expects home sales to be 5.5 – 6 million this year. Here in the Midwest the index rose 11.6 percent to 109.6 and is 36.6 percent higher than October 2008. He did warn that there may be a slight slow down in sales as the pend up demand released by the First Time Buyer Tax Credit eases. However, despite skepticism by some, it is clear that we have reached a turning point. Buyers know that real estate here in Ann Arbor Michigan and the surrounding area, offers a unique opportunity right now and are taking advantage of the situation. Particularly with the recent news that Ann Arbor Price Per Square Feet is trending up over the last 12 months.
Overall this increase in pending homesales again is fantastic news! Falling inventory as well as low mortgage rates offer a great opportunity for buyers. Also, as we mentioned before, home prices in the area are relatively stable!
Hey, I wanted to share the impact of mortgage rates on payments and value of a house over the life of the loan and found a great video that does this succinctly. We want to make sure our Ann Arbor Real Estate clients are fully informed and have access to tips when looking for a mortgage in Ann Arbor. See what you think and let me know.
Mortgage Interest Rate Impact Is Explained in Video
Check out how changes impact your payments in Ann Arbor Real Estate Experts’ Mortgage Calculator. We can connect you to reliable local lenders who want to commit to loan locally in Dexter, Chelsea, Saline and Ann Arbor. These are people with whom you can meet face to face. If there is a question, you can get a personal response. These are people who give to the community.
Below is from Rhonda Porter, recipient of the Jim Fitgerald Award for Washington Association of Mortgage Professional’s: Don’t get me wrong…rates are still very low. But today the rate you could have locked in yesterday with no points (origination or discount) will probably cost you 1% of your loan amount. With the economy improving along with the stock market, watch this trend of rising mortgage rates continue.
Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). The conforming rate quote below is based on owner occupied with a mid-low credit score of 740 or higher, “full doc” purchase with a sales price of $500,000 and a loan amount of $400,000 single family dwelling (non condo). This scenario includes reserves (taxes & insurance) not being waived. Rates quoted are priced based on a 30-40day closing with no prepayment penalties on any of the rates quoted below.
30 Year Fixed @ 1 Point: 4.750% (APR* 4.904%). 0.25% in rate from last weeks post.
15 Year Fixed @ 1 Pt: 4.25% (APR 4.511%). 0.125% in rate…
10/1 ARM** 5/2/5 CAPS w/1 Pt: 4.125% (APR 5.580%). Same as quoted on last week’s post.
7/1 ARM 5/2/5 CAPS w/1 Pt: 3.875% (APR 5.959%). 0.25% in rate.
5/1 ARM 5/2/5 CAPS with 1 Point: 3.500% (APR 6.251%). 0.125% in rate.
Conforming High Balance Rates. Pricing is based on the same criteria above except where the loan amount is $417,001 – $567,500 for properties in King, Snohomish or Pierce Counties; specifically priced for a sales price of $625,000 and a $500,000 loan amount.
30 Year Fixed @ 1 Pt: 4.875% (APR 5.021%). 0.125% in rate.
Jumbo/Non-Conforming. Loan amounts up to 1 million for ARMs and 1.5 million for the 30 year fixed. The quotes below are based on 740 or higher credit scores with 80% loan to value with a loan amount of $700,000.
30 Year Fixed at 1 point: 6.125% (APR 6.276). Same as the last rate quote.
FHA. Pricing based on credit score of 620 or better and loan amounts up to $417,000 for FHA in King, Snohomish and Pierce Counties. The scenario below is based on a sales price of $400,000 with 3.5% down payment.
30 Year Fixed @ 1 Pt: 5.000% (APR 5.635%) 0.125% in rate.
FHA-Jumbo/High Balance. Pricing based on loan amounts from $417,001 – $567,500 for King, Snohomish and Pierce Counties with a 660 or higher mid-credit score. This scenario is based on a sales price of $585,000 with 5% down payment.
30 Year Fixed @ 1 Pt: 5.000% (APR 5.631%). 0.125% in rate.
FHA 203 (k) Rehab-Streamline. Pricing criteria same as FHA above with loan amounts up to $417,000. This scenario is based on a $400,000 base loan amount with a 3.5% down payment.
30 Year Fixed @ 1 Pt: 5.250% (APR 5.999%). 0.125% in rate.
VA. Pricing based on credit scores of 620 or better based on loan amounts up to $417,000. VA loan amounts over $417,000 are also available. Based on a sales price of $400,000 with 0 down payment.
30 Year Fixed @ 1 Pt: 5.000% (APR 5.285%). 0.125% in rate.
USDA Rural Housing. 100%financing with income limits and properties must be located within a specific area (this program is generally available in rural towns with populations of 10,000 or less). For eligibility, click here. 60 day lock is quoted as USDA is a longer transaction to close. This scenario is based on $400,000 with 0 down payment.
This is just a small sample available of rates and products. This is not a guarantee nor is it a commitment of interest rate. Rates are as of October 9, 2009 at 3:00 p.m. and may change at any time. Available programs may change at anytime as well. To see rates that I’m quoting “live” click here.
For purposes of this post: “1 point” is 1% of the loan amount and would be reflected in line 801 or 808 (depending on whether the loan is brokered or not). Unless the rate is bought down; there are zero discount points referenced which would be reflected on line 802 of the GFE/HUD-1 Settlement Statement. Zero points means no points are paid on lines 801, 802 or 808 (this applies to all rates quoted on this post).
Asides from extending the deadline for the credit to mid-2010, the Senate has also agreed to offer a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years. The unofficial word on the conditions of the extension and new credit are that the tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes and that the income criteria has been relaxed from what it is at present.
Diane Ratkovitch Earns Certificate Specializing in Short Sales and Foreclosure Transactions
Joins the Kathy Toth Team’s Distressed Sales Division
In response to requests from many Ann Arbor sellers, and the regularity of short sales and foreclosure-related transactions, Keller Williams created a Short Sale and Foreclosure Certification plan for Pre-Foreclosure Specialists. Video of the instruction can be found below.
“Someone that comes out of the program will have enough education to be a resource,” said Marian Benton, operating principal for Keller Williams Temecula and Ann Arbor Market Centers. “It will familiarize them with the terminology and give them a road map to manage these transactions.”
To earn the PSC certification, Realtors must complete a two-day education program and pass a written test. Diane Ratkovitch joins the Kathy Toth Team distressed sales division in preparing clients in selling and purchasing these properties.
Ratkovitch is a seasoned sales professional focused on client satisfaction and enjoys connecting with home buyers to help them find their dream home. She also hold the Certified Relocation Specialist designation to facilitate relocating families to Ann Arbor, Saline, Chelsea, Dexter and all of Washtenaw County.
About Kathy Toth and Team
Kathy Toth and Team, REALTORS®, ranks among the top one percent of REALTORS nationally , has been helping individuals and families find a place to call home in all price ranges for over 20 years in Washtenaw and Southern Livingston Counties. A Certified Distressed Property Expert and Accredited Seller Representative, Kathy Toth has helped over 1,000 people maximize profits and minimize costs in the sale or purchase of homes and condos. Whether you are looking for your first home or your dream home, planning to relocate, or need to sell for the highest value, the Kathy Toth Team can help. For more information, please call 734-669-0337 or visit www.KathyToth.com
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Comprehensive list of Bank Owned, Pre-Foreclosure and Short Sales list. The team will assist you with any of these. It is estimated that 50% of sales in 2009 will be from these type of properties as buyers are looking to take advantage of low prices and interest rates. Short Sales are properties that are selling for less than what is owned but buyer will get clear title and no liens.
And don’t forget about our new feature on our website which allows you to do a self search properties offered for sale in Washtenaw County – Ann Arbor, Chelsea, Dexter, Saline, Michigan: www.KathyToth.com.
This system will also allow you to receive automatic e-mails of new properties that match your search criteria
United Bank and Trust and Top Ann Arbor Agents Host Free Home Buyer’s Roundtable
Today’s market is extremely challenging for both sellers and buyers. Kathy Toth and Team will be hosting a round table discussion about current housing trends in hopes to arm buyers with knowledge about the changes in lending guidelines and programs.
Nationally known, Toth has been a real estate agent since 1989 and is consistently one of the top selling Realtors® in Michigan. With local knowledge and years of experience, Kathy Toth and Team provide this seminar to help potential buyers understand this difficult market. As part of one of the leading real estate teams in Michigan, Keller Williams Realty, the buyer agents take a personal interest in guiding Ann Arbor residents through purchasing a home.
During the seminar, United Bank & Trust and our Team will cover various home buying topics in clear, easy-to-understand language that will include:
• Gain the knowledge that will help them buy and/or sell a home in a slow market
• Discover ways to save money
• Learn how to buy a home with no money down and other helpful buyer tips
• Participate in our open discussion to dispel real estate myths
Home Buyer Seminars are open to everyone, whether or not a home purchase is in the foreseeable future.
The upcoming seminar is scheduled for the following date:
JAN 13TH 5:30 PM OLD Date: Wednesday, October 7th 2009
Time: Seminar Begins at 5:30 p.m.
Where: United Bank and Trust, 355 S. Zeeb Road, Ann Arbor, MI 48103 Come into the building’s South entrance to get into the bank.
To RSVP, please get your name on the list; call Diane 734-845-6542 or email Info@KathyToth.com.
Existing-home sales rose for the third consecutive month with inventory easing and home prices declining less sharply in June. The increase nationally is 3.6% to a seasonally adjusted annual rate of 4.89 million units in June.
Total housing inventory at the end of June fell 0.7% to 3.82 million existing homes available for sale, which represents a 9.4-month supply at the current sales pace, down from a 9.8-month supply in May. Although local inventory levels do vary. In the Existing home sales figures is condominium and co-op sales which on their own jumped 14.0% in June – this is great news for those looking for that perfect condo!
More interestingly, first-time buyers accounted for 29% of transactions – this is likely due to the first time homebuyer tax credit. Also the number of buyers looking at homes is up around 12% over June 2008. However distressed sales accounted for a whopping 31% of sales in June
The new requirements apply to all mortgages secured by a borrower’s home, including primary and second homes and refinances. Investor loans continue to be exempt.
Lenders must give good faith estimates of mortgage loan costs within 3 business days after the consumer applies for a loan (early disclosure). The lender may not collect any fees before the disclosure is provided, except for a reasonable fee for obtaining a credit report.
The closing may not take place until expiration of a 7 day waiting period after the
consumer receives the early disclosure.
If the annual percentage rate (APR) changes by more than 0.125 percent, the lender
must provide a corrected disclosure to the borrower and wait an additional 3 business days before closing the loan
The Truth In Lending Regulation has always been complicated and wide encompassing, however these new rules are aimed to protect the consumer further, however they can cause problems. Which is why it is vital to select an experienced Real Estate agent and team.
Of course the global economy and the stock market remain concerns that buyers have, however they are understanding that a home is not just an financial investment, it is an investment in their future on a personal and emotional level.
Realty Times reported this week that pending home sales rose sharply, by nearly 7 percent in all four major regions of the country, in the latest month measured by the National Association of Realtors and that Mortgage rates continue to be favorable, at an average of 5.3% last week for 30 year fixed rate loans.
While mentioning the Mortgage front, according to the Mortgage Bankers Association’s weekly survey, new applications to buy houses increased by nearly 7% in the week ending July 3rd, which is excellent news!
Listen to this post 
found a great video that does this succinctly. We want to make sure our Ann Arbor Real Estate clients are fully informed and have access to tips when 
