Monday, August 27, 2007
predictions by realtor in Dyersburg,Tennessee
First of all, it seems like everytime the automakers start offering 0 % financing, it usually is a precurser to lower interest rates across the board. The Federal Reserve cut the Fed Funds rate a couple of weeks ago by 1/2 point which helps the banks borrow from the federal reserve at a lower interest rate. I predict that the Fed will cut the discount rate by 1/2 point(at their Sept meeting). The discount rate is what the prime rate is indexed to and the prime rate is what affects all short term loans such as construction loans, car loans, credit cards, etc. With all the housing problems across the country, the Fed (in my opinion) will have no choice but to cut the discount rate. I know the numbers showed new home sales up across the country but I believe those builders literally had to give them away. You can expect continued bad news nationally for some months to come. I have a friend who is a realtor in Tampa, Florida and he is trying to sell his home there to move to Dyersburg. He told me yesterday their market is very depressed. I told him our market is doing pretty well.
I also want to predict that since the summer driving season is over, school is back in session across the country, and ethanol plants are being built at a record clip, gas prices will begin falling. I predict we will see gas around $2.29 a gallon within a few short weeks.
How will all these predictions affect the Dyersburg,Tennessee real estate market?
Buyers will continue to see the long term interest rates creep down and short term rates drop everytime the Feds cut the discount rate.Lower interest rates will help the homebuyers and home builders. Our market will continue on its upward climb.
I am "bullish" short term and long term for the Dyersburg real estate market.
Friday, August 24, 2007
real estate business in Dyersburg,Tn
The article is written by Jeff Cox-contributing editor for CNNMoney.com. Jeff discusses the Neighborhood Assistance Corporation helping individuals and families who have purchased homes with subprime mortgages. Help that is available is counseling and help to negotiate with your lender. He also mentioned that sometimes loans are also available. You can read the entire article by clicking on the article over in the right colume"National Homeowners's Hope Hotline".
Friday, August 17, 2007
business booming but prices have dropped
I took some time this morning to analyse several deals we have on the books ready to close. I also took into account closing costs paid and repairs made just to make the property go thru underwriting for that loan program(deducted those expenses). Here are the results:
property 1 (older home in town in good condition) selling 7.4% under list
property 2 (newer home in booming subdivision) selling 6.3% under list
property 3 (foreclosure home mentioned in earlier post) selling 17% under orig list
property 4 (nice 3 br 1 ba home in good area) selling 7% under list
property 5 (nice newer doublewide w/foundation) selling 7.2% under list
All of these are my sales. I was surprised the ratios were generally so low but I attribute that to my sellers listing their properties for or very close to appraised
Generally speaking, I am seeing a decline of about 7-10% for home prices in the Dyersburg area and I attribute much of this to the foreclosures that are driving values down.
In my opinion, we will continue to see alot of foreclosures here just because people who could not afford to buy a house were given subprime loans to purchase houses and now the expenses have caught up with them. I will have more to say(in next post) about the mortgage companies that have made all these subprime loans.
What does that mean to clients looking to buy property here. Some great deals are out there to be snatched up. A case in point is the foreclosed home mentioned above. I know 20 realtors who would have purchased that home if they knew the bank owner would have come down so low.
What does it mean to sellers of properties here? If they price their home close to current market value, they should be able to sell for around 92-93% of market value.
I am seeing lots of realtors lately in the buying mood. They know that this is just temporary and home prices will rebound.
Labels: sales up and prices down
Thursday, August 09, 2007
Dyersburg real estate market shifting into high gear
All of my active full time and part-time agents are also busy with clients. I mentioned in a post about a month ago that I thought we had entered a buyers market here but I am not sure about that now. We are starting to have trouble finding our clients homes because many homes in the MLS "just got a contract". I believe our active and available inventory for the entire MLS is starting to shrink.
What that means to you, the person moving in from out of town, is that you need to solicit the help of a seasoned real estate professional. The good experienced professional real estate agent here knows this market and the available inventory. He or she also knows of properties getting ready to hit the market.
I am excited about Dyersburg and the real estate business.
Also, I would like to thank all the realtors who have been reading my posts and commenting on the helpfulness and accuracy of the content.
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