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Mortgage News
As of 12-18-08, some of my clients and customers were able to lock mortgage rates in at as low as 4.875%, with 0 points, for 30 years. If you are interested in refinancing or purchasing, contact your lender now. If you need a referral, you'll find contact information for two mortgage lenders I work with right here in this newsletter, or call me to match you up with a bank or lender of your choice. | |
Dear Friends, Colleagues, Clients:
It's early in the Holiday Season, but I have to admit ... some of my Christmas wishes (and I can only hope, yours too) already have come true. Topping the list: good ... no GREAT ... news about Burlington and about Chittenden County real estate ... from being ranked the Healthiest City in the US (by CNN) to being named One of Six Safe Havens for Real Estate Investment in the country (by Kiplinger Finance). With Mortgage Interest rates heading down toward a possible 4.5% (gracious ... does anyone remember 1983?) and the New York Times proclaiming that Now is the time to Buy Real Estate, what we have is what one might call "A Perfect Storm" of conditions if, perchance, a new home, or a second home, is on your holiday wish list.
Now, I know, I know ... we're all feeling a bit off-kilter given the economy. I get it. But, if we listen to Warren Buffet, who says: the time to buy is when no one else is buying ...
Anyway, in the spirit of giving, I give to you, my friends, colleagues and clients ... a collection of press clips that comprise some of the shining lights of the season. And one more present: Under "I recently met ..." (below), you'll find out about the "Purchase and Renovate" loan -- a one-stop solution to making it easy to buy that almost-but-not-quite right house that feels like the best you can afford. It's a one-stop solution to finding a way to not only buy the house, but pay for improvements (update a bath, add on a sunroom, re-do the kitchen!) under just a single mortgage. Find out more (and who to call to get it) below .
May your holidays be merry and bright! |
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"So, how's the market?" updated 12/6/08 |
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Even as we watched in horror the gyrations of the Dow during October and November, Burlington-area real estate stayed steady-as-she-goes (perhaps why Kiplinger likes us so much!). Year over year numbers for Chittenden County continue to show that while the overall number of sales remain down about 18% since last year (no change from a month ago), average prices remain steady at about 4% lower than last year (no change from last month). The homes that are selling are still moving in about three months on the market ... our inventory of homes suggests sellers should be prepared for an average of seven months on the market.
County Active Pending Inventory Number of Avg Price Price Change
Absorption Sales Closed YTD 07-08
Rate YTD
Chittenden 833 104 7.5months -18% $281,335 -4%
Franklin 441 25 15.5months -20% $194,569 -3%
Addison 302 16 15months -11% $258,601 -<2%
(source: VREIN data through 11/31/08) | | |
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Burlington, VT Named One of Six Safe Havens for Real Estate (Quoted from Yahoo! Real Estate, Kiplinger Finance- see link below)
With foreclosures skyrocketing and home prices plummeting, real estate has had a tough year. But in certain pockets across the country the damage has been minimal -- if nonexistent.
We found six cities with slow, steady growth, using data from Fiserv Lending Solutions, a home-price research company. These cities' local economies have kept unemployment and foreclosure rates below average. Plus, their affordability index -- a measure of home prices versus family income-- is low.
Burlington, VT
Population: 145,360
Median home price: $250,000
12-month change in home value: +1%
Affordability index: 4/10
Homes sold this year: 592
Home value vs. national average: +21%
Top employer: IBM
On the shores of Lake Champlain, Vermont's largest city focuses on retaining its high standard of living rather than growing its population. Strict zoning standards make homebuilding difficult and discourage speculators.
Burlington's small-town mentality ensures that home lenders maintain personal relationships with their clients and help them stay within their spending means. Technology, health care, and education drive the local market.
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Lower Mortgage Rates for Homebuyers (Quoted from CNNmoney.com- see link below)
Reducing mortgage rates to a historically low 4.5% may entice some homebuyers out of the shadows, but it won't be enough to really spur housing sales, experts said.
Only a week after the Federal Reserve unveiled a $600 billion plan to reduce mortgage rates, the Treasury Department is considering adding to the effort to lower rates even more. Both moves are intended to get more buyers into the market in hopes of stabilizing home prices and reviving the economy.
Chart courtesy of Denise Vignoe, Spruce Mortgage, 802-846-5050, greatrate@sprucemortgage.com |
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The New York Times Says It's Time to Buy Real Estate!(Quoted from NYTimes.com- see link below)
Five or 10 years from now, when the financial crisis has ended and housing prices are up smartly once more, we will look in the rearview mirror and realize that we missed a golden age for first-time home buyers.
Then, everyone who sat on their down payment savings accounts for a few years too long will kick themselves for not taking advantage of what may turn out to be the buying opportunity of a lifetime for those who can qualify for a mortgage.
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Burlington, VT Named Healthiest City in US (Quoted from CNNhealth.com- see link below)
What's the healthiest city in America? It appears to be Burlington, Vermont...
Vermont's largest city is tops among U.S. metropolitan areas by having the largest proportion of people -- 92 percent -- who say they are in good or great health.
It's also among the best in exercise and among the lowest in obesity, diabetes and other measures of ill health, according to a recent report from the U.S. Centers for Disease Control and Prevention.
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Remodeling Magazine's Annual Cost vs. Value Report: Still Many Happy Returns for Home Rehabs (Quoted from Realtor.org- see link below)
Remodeling magazine's annual report shows that maintenance-related projects and moderately priced upgrades are providing stable paybacks, even in a slower market.
Despite home price drops in many cities, remodeling projects are holding their own as a way for owners to add value.
Many people are wondering where their money will be safest during these uncertain economic times. When home owners turn to you for your expert advice, counsel them that some things never change: Investing in their home still pays off.
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I Recently Met...
 Katherine Wallace, a mortgage loan originator with Wells Fargo's South Burlington office, who specializes in helping homebuyers bridge the gap when they want to buy a home, but may not have cash or cash-flow enough to make the immediate renovations they desire. The product is called a "Purchase and Renovate" loan, and it is a single mortgage written for the amount of the purchase price, PLUS the amount you need for improvements, all set up as one single mortgage with one single monthly payment. The house is appraised at its future value -- as if the improvements were already made -- and the loan is granted with cash back to the purchaser to pay for supplies, contractor fees, etc. Improvements have to be made within a specified timeframe. Rates are somewhat higher than conventional mortgage rates, but in today's low-interest-rate environment, it's not nearly as much of a stretch as it might have been at another time. When renovations are complete, the homeowner (with now the "perfect" home!) is free to refinance at a lower conventional rate. One application, one set of closing fees, one closing ... at time of purchase .. .and one single mortgage payment. Worth looking into! Here's how to contact Katherine:
A "Purchase and Renovate" Loan Specialist
Katherine Wallace
Wells Fargo , South Burlington office
802-861-2834
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Market Updates from Eileen Townsend 
