2008 Home Prices Rise
From Oklahoma Association of REALTORS®
Yesterday at 10:33am
The Oklahoma Association of REALTORS® (OAR) released statewide figures for 2008 home sales and home values today. The OAR statistics show Oklahoma home prices in the state last year increased by .52% percent overall. And while home prices held their ground through the national mortgage crisis and slumping economy, the number of home sales declined 9.4 percent from the previous year near record high. Association officials say the decrease in the number of homes sold is likely attributable to the ‘one-two punch’ of last year’s press coverage of the national housing market followed by the weakening economy which resulted in job losses and reduced consumer spending in most parts of the country. “Oklahoma bucked the national trends on home sales and prices for much of 2008, and it’s no small thing that we saw an increase in home values in the face of a national credit crises and slumping economy,” said Mike Craddock, 2009 president of the Oklahoma Association of REALTORS®. “However, as the national economy continued to falter in the fourth quarter of last year, our markets statewide were impacted as Oklahomans took a ‘wait and see’ approach on home buying. In February of 2008, the OAR launched the ‘Good Thing You’re in Oklahoma’ initiative to educate home buyers and sellers about the affordability, stability and security of the Oklahoma housing market. Many local boards of REALTORS across the state adopted a similar campaign in their home towns. The average cost of a home in Oklahoma increased by a half percent compared to home prices in 2007. In 2008 the average cost of a home sold was $149,482 compared to $148,715 in the 2007. Statewide, 49,269 homes were sold last year. This is 9.5 percent less than the number of homes sold in 2007 in which showed 54,378 homes were sold in the state.“We are encouraged by the fact that Oklahoma’s home values increased despite the national economic downturn,” said Craddock. “It reinforces our belief that buying a home in Oklahoma is still an affordable, stable and secure investment.”
Wednesday, February 18, 2009
Thursday, February 12, 2009
Tornados in Edmond
Well, gosh, I am so thankful everyone is ok. This one was too close for comfort and hit my neighborhood and did significant damage to numerous homes. I am proud of Edmond Schools for taking the right steps in putting our children in lock down. No buses on the road. Everyone was safe. The Atchley Group was safe at the office as it went by. Homestead and Oak Tree were hit hard. The American Red Cross has set up a way to donate if you wish to. I dont know what people need, but it seems they will. Check me out on facebook to see the pictures posted of the damage. Make sure if you live locally you know what to do in a situation like this. Even me being a Yankee knew what to do, as did my children!
Sunday, February 1, 2009
Why Use a Buyers Specialist for Edmond, Deer Creek, Moore, OKC in Oklahoma
While many homeowners turn to a real estate agent when selling their property, not very many home buyers turn to a buyer’s agent when purchasing real estate. It’s very surprising that buyers try to “go it alone” when making a purchase that will affect their finances and their lifestyle for years to come. The average person spends around 1/3 of their income on their home, so any mistakes made when buying a home can add up to huge losses. A good buyer’s agent is a professional with the insight into the market that every buyer needs. A qualified agent offers:
1) Full Access to the MLS Only realtors can fully access a powerful tool known as The Multiple Listing Service (MLS), which lists approximately 99% of homes for sale within a given market. The MLS is a comprehensive list of all homes that have been listed by realtors, and a buyer’s agent has access to this resource. An experienced buyer’s agent can use the MLS to find homes that meet your specific parameters.
2) Big Savings of Time
It can take months or even longer to research neighborhoods, building plans, architectural details, and the real estate market. A good buyer’s agent can not only do all the research for you – he or she can also help you translate your lifestyle needs into a home purchase. Simply tell a buyer’s agent what you are looking for and he or she will do all the work in finding you a list of homes that match what you are looking for. A buyer’s agent has helped many buyers in your position and with his or her help, you can spend your time looking at homes that meet your wants and needs.
3) Representation Real estate agents hired by home sellers enter into legally binding agreements that require them to act in the best interest of the seller. A buyer’s agent, on the other hand, will use their expertise to act in your best interests. Your agent can coach you through every step of the buying process. If the seller has professional help, shouldn’t you?
4) Negotiating Power A Buyer’s Agent will run a Comparative Market Analysis (CMA) to establish the Fair Market Value (FMV) on a property. This not only helps to ensure that you will not end paying more than a home is worth, but it also means that a buyer’s agent can professionally negotiate price on your behalf.
5) Experience The average homebuyer will purchase just 3-5 homes in their lifetime. A good buyer’s agent will help in buying that many homes per month. An agent simply has the experience most buyers do not.
6) Industry Contacts A good buyer’s agent has access to a quality closing team that may consist of an inspector, listing agent, loan officer, appraiser, insurance agent, general contractors, and others. By working with this team, your buyer’s agent can help ensure that your home purchase is as hassle-free and as positive as possible.
7) Peace of Mind A buyer’s agent acts as a second, professional opinion on one of the largest decisions of your life. By working with a professional, you can rest assured that you are making the right decisions for you. Working with an expert, you know that you can avoid some of the common pitfalls that can affect home buyers.
Buying a home can be exciting and fun. However, no matter what sort of real estate transaction you are interested in making, a buyer’s agent is a must. A real estate professional who specializes in working with buyers can help you avoid costly mistakes and can help you feel more comfortable as you make your decisions. (Source EzineArticles.com)
1) Full Access to the MLS Only realtors can fully access a powerful tool known as The Multiple Listing Service (MLS), which lists approximately 99% of homes for sale within a given market. The MLS is a comprehensive list of all homes that have been listed by realtors, and a buyer’s agent has access to this resource. An experienced buyer’s agent can use the MLS to find homes that meet your specific parameters.
2) Big Savings of Time
It can take months or even longer to research neighborhoods, building plans, architectural details, and the real estate market. A good buyer’s agent can not only do all the research for you – he or she can also help you translate your lifestyle needs into a home purchase. Simply tell a buyer’s agent what you are looking for and he or she will do all the work in finding you a list of homes that match what you are looking for. A buyer’s agent has helped many buyers in your position and with his or her help, you can spend your time looking at homes that meet your wants and needs.
3) Representation Real estate agents hired by home sellers enter into legally binding agreements that require them to act in the best interest of the seller. A buyer’s agent, on the other hand, will use their expertise to act in your best interests. Your agent can coach you through every step of the buying process. If the seller has professional help, shouldn’t you?
4) Negotiating Power A Buyer’s Agent will run a Comparative Market Analysis (CMA) to establish the Fair Market Value (FMV) on a property. This not only helps to ensure that you will not end paying more than a home is worth, but it also means that a buyer’s agent can professionally negotiate price on your behalf.
5) Experience The average homebuyer will purchase just 3-5 homes in their lifetime. A good buyer’s agent will help in buying that many homes per month. An agent simply has the experience most buyers do not.
6) Industry Contacts A good buyer’s agent has access to a quality closing team that may consist of an inspector, listing agent, loan officer, appraiser, insurance agent, general contractors, and others. By working with this team, your buyer’s agent can help ensure that your home purchase is as hassle-free and as positive as possible.
7) Peace of Mind A buyer’s agent acts as a second, professional opinion on one of the largest decisions of your life. By working with a professional, you can rest assured that you are making the right decisions for you. Working with an expert, you know that you can avoid some of the common pitfalls that can affect home buyers.
Buying a home can be exciting and fun. However, no matter what sort of real estate transaction you are interested in making, a buyer’s agent is a must. A real estate professional who specializes in working with buyers can help you avoid costly mistakes and can help you feel more comfortable as you make your decisions. (Source EzineArticles.com)
Sunday, January 25, 2009
Edmond, Deer Creek and Oklahoma Real Estate news
Hello, yes it has been awhile but the numbers are out. The Atchley Group again hit the number one group with Keller Williams in Oklahoma. We are looking forward to the Keller Williams Family Reunion in Feb in Orlando, Florida to gain even more knowledge insight and chance to talk with other KW realtors from all over the country. Our web business is still strong and our Turner and Son model traffic has been increasing. We are still blessed to be in Oklahoma. I've written a number of contracts lately on existing homes, new homes, short sales and foreclosures. So to say business is in all one category would be misleading. Interest rates have been great, a lot of lenders are busy with refi's. Im planning a homebuyer seminar in Feb /Mar so keep your eyes open for info. Always visit our website at www.atchleygroup.com. Also if you are a facebook person feel free to check me out.
Tuesday, December 23, 2008
Lots of questions about todays interest rates In Edmond and Oklahoma City, this just in from one of my preferred lenders The Bomar Team
Looking to Refinance?
6 Important Things To Know
1. Refinancing an FHA Loan – Most people do not know that if you currently have an FHA loan, you will be charged interest through the end of the month no matter what day of the month you pay it off. This is crucial – if you are currently in an FHA loan, and your lender schedules the closing date in the beginning of the month, or even in the middle, you are going to pay interest on your new loan from closing until the 30th/31st, but you will ALSO pay interest on your old loan through the end of the month. Per day Interest can run anywhere between $20-$100 per day (depending on loan size), so if you close too early you could literally waste one to two thousand dollars in interest that is not necessary.
2. Refinancing an FHA Loan, pt 2 – When you purchased or refinanced into an FHA loan previously, you paid an ‘Up Front Mortgage Insurance Premium’ – otherwise called an FHA Funding Fee. If you are refinancing into a new FHA loan, you are entitled to a partial refund of your previous FHA Funding Fee. This could be anywhere between $500-$3,000, and it is important that your lender takes this into account.
3. Streamline Refinancing – If you are currently in an FHA or VA loan, you will not have to requalify for a new one. By virtue of the fact you were qualified before, you automatically qualify for a new FHA or VA loan as long as you are only lowering your interest rate (not getting cash back). So, just because your job or income situation has changed, don’t count yourself out. The only thing that would really be a problem is if you haven’t made your mortgage payments. But a Streamline Refinance is essentially a “everyone qualifies’ refinance, and no employment, income, or assets are even listed on the loan application.
4. True Payback? – Many people look at interest rates as a “shiny red car”, and unfortunately are all too willing to take a refinance option simply because there is a low rate along with it. This may sound cliché, but there are many other factors that need to be considered for you to decide whether you should refinance or not. A $200 per month savings is great – but what if it adds 3 years onto your mortgage, and raises your balance by $5,000? It might still be worth it, but it might now. A lot of it depends on your future plans, and how long you will stay in your house. Make sure that your lender calculates how long it takes for you to recoup the costs of refinancing, to see if it makes sense in light of your future plans.
5. Appraised Values – Although we are seeing values hold steady for the most part in Oklahoma, that isn’t always the case in every neighborhood. Before you spend $300-$400 on an appraisal, your lender should do you the courtesy of checking with an appraiser to make sure your house will still appraise high enough to refinance. 8 times out of 10, you’ll have nothing to worry about, but the other 2 times it would be really bad to spend that much money on an appraisal only to hear that the house won’t appraise, and the refinance will not work. Of course, an appraiser can’t be held to giving a “comp check”, but it at least gives everyone a good idea of whether it makes sense to order a full appraisal, to get the true appraised value at this time. Additionally, I would recommend working with a lender who has a say in who the appraiser is, as opposed to one who has their appraisal orders assigned out in a round-robin fashion.
6. Market Volatility – Neither the government, nor the Fed, sets mortgage rates…they are determined every day by what yields investors in the bond market are willing to receive to invest their dollars into mortgage pools. This can change a LOT from day to day. We have seen rates at 5.5% (or lower) only 3 times this year. Once in January/February, once in June/July, and right now. Both of the other two times, the low rates lasted about 2 weeks. Even with a slight increase in rates on Monday December 22nd, interest rates are still at all time lows. If you can take advantage of this, I would recommend it. Although there is a possibility for rates to go lower, but they can’t possibly go too much lower than the levels they are at now. But also, there is also a possibility that rates go higher, and there is much room for them to increase.
Now of course, you could always buy a newer home, just give me a call :) Heidi
Looking to Refinance?
6 Important Things To Know
1. Refinancing an FHA Loan – Most people do not know that if you currently have an FHA loan, you will be charged interest through the end of the month no matter what day of the month you pay it off. This is crucial – if you are currently in an FHA loan, and your lender schedules the closing date in the beginning of the month, or even in the middle, you are going to pay interest on your new loan from closing until the 30th/31st, but you will ALSO pay interest on your old loan through the end of the month. Per day Interest can run anywhere between $20-$100 per day (depending on loan size), so if you close too early you could literally waste one to two thousand dollars in interest that is not necessary.
2. Refinancing an FHA Loan, pt 2 – When you purchased or refinanced into an FHA loan previously, you paid an ‘Up Front Mortgage Insurance Premium’ – otherwise called an FHA Funding Fee. If you are refinancing into a new FHA loan, you are entitled to a partial refund of your previous FHA Funding Fee. This could be anywhere between $500-$3,000, and it is important that your lender takes this into account.
3. Streamline Refinancing – If you are currently in an FHA or VA loan, you will not have to requalify for a new one. By virtue of the fact you were qualified before, you automatically qualify for a new FHA or VA loan as long as you are only lowering your interest rate (not getting cash back). So, just because your job or income situation has changed, don’t count yourself out. The only thing that would really be a problem is if you haven’t made your mortgage payments. But a Streamline Refinance is essentially a “everyone qualifies’ refinance, and no employment, income, or assets are even listed on the loan application.
4. True Payback? – Many people look at interest rates as a “shiny red car”, and unfortunately are all too willing to take a refinance option simply because there is a low rate along with it. This may sound cliché, but there are many other factors that need to be considered for you to decide whether you should refinance or not. A $200 per month savings is great – but what if it adds 3 years onto your mortgage, and raises your balance by $5,000? It might still be worth it, but it might now. A lot of it depends on your future plans, and how long you will stay in your house. Make sure that your lender calculates how long it takes for you to recoup the costs of refinancing, to see if it makes sense in light of your future plans.
5. Appraised Values – Although we are seeing values hold steady for the most part in Oklahoma, that isn’t always the case in every neighborhood. Before you spend $300-$400 on an appraisal, your lender should do you the courtesy of checking with an appraiser to make sure your house will still appraise high enough to refinance. 8 times out of 10, you’ll have nothing to worry about, but the other 2 times it would be really bad to spend that much money on an appraisal only to hear that the house won’t appraise, and the refinance will not work. Of course, an appraiser can’t be held to giving a “comp check”, but it at least gives everyone a good idea of whether it makes sense to order a full appraisal, to get the true appraised value at this time. Additionally, I would recommend working with a lender who has a say in who the appraiser is, as opposed to one who has their appraisal orders assigned out in a round-robin fashion.
6. Market Volatility – Neither the government, nor the Fed, sets mortgage rates…they are determined every day by what yields investors in the bond market are willing to receive to invest their dollars into mortgage pools. This can change a LOT from day to day. We have seen rates at 5.5% (or lower) only 3 times this year. Once in January/February, once in June/July, and right now. Both of the other two times, the low rates lasted about 2 weeks. Even with a slight increase in rates on Monday December 22nd, interest rates are still at all time lows. If you can take advantage of this, I would recommend it. Although there is a possibility for rates to go lower, but they can’t possibly go too much lower than the levels they are at now. But also, there is also a possibility that rates go higher, and there is much room for them to increase.
Now of course, you could always buy a newer home, just give me a call :) Heidi
Saturday, December 20, 2008
Great rates for New Construction
Are considering building, NOW is the time. This just in from our preferred lender The Bomar Team "We just wanted to let you know that rates are really good this morning. If you have anyone in the works, closing more than 60 days out, we are setting up quite a few folks with some 6 months locks with float down options. If you have anyone that you think would be beneficial, we would love to help (we are doing an FHA today on a 6 month lock at 5.0%). " To get yourself preapproved for this, call the Bomars today at 445-5445.
Consider a Turner and Son Home view at www.turnerandsonhomes.com.
This is quite a savings, if you want to pick your lot, and start building your home, call Heidi at 285-2856 today. You can be in a new home in less than 6 months, and Turner has great new plans starting at $85/ft. We even have programs to help sell your exisiting home. Dont miss this opportunity. As always our models in Frisco Ridge and Lone Oak are Open 1-6 weekends, and Deer Spring and Hidden Prairie are currently by appt.
Consider a Turner and Son Home view at www.turnerandsonhomes.com.
This is quite a savings, if you want to pick your lot, and start building your home, call Heidi at 285-2856 today. You can be in a new home in less than 6 months, and Turner has great new plans starting at $85/ft. We even have programs to help sell your exisiting home. Dont miss this opportunity. As always our models in Frisco Ridge and Lone Oak are Open 1-6 weekends, and Deer Spring and Hidden Prairie are currently by appt.
Tuesday, December 9, 2008
News from Edmond Cornerstone Lender - The Bomar Team
There has been quite an uproar about “4.5% Interest Rates” here recently. Apparently, someone suggested it in a meeting as a possibility to help the market out, the suggestion got published, and now there are many, many people starting to hold out for better rates to come.
I wanted to send an email out with my thoughts on it, and hopefully that will help all of us be better prepared when asked about it. I hope this isn’t too long or too technical, but I think it is good for you to not only have an answer for this question, but also to know they “why” behind it.
First of all, mortgages are pooled up as a securities, and sold back and forth every day. When a 6.0% bond sells for more than it’s worth, then it actually pays less than 6.0% (It pays 6.0% interest on $100, but you actually paid $102 for it, thus you are making 4% on $102, not 6.0% on $100). So, the higher the prices on Mortgage-Backed Securities, the lower the yield. The lower the yield, the lower the rate that borrowers have to pay. In order for the US Treasury to drive rates down by buying mortgage-backed securities (which is what was mentioned), the only way to do this is by simply buying up A LOT of mortgages. How much is “a lot”? Well, the federal government would have to enter into the market with such a huge amount of money that it begins to swallow up the all of the supply, causing prices to rise. And, as the prices rise, it will draw in more supply (old mortgages to be sold, or new mortgages created as refi’s or purchase), and then the demand will have to again increase to outstrip that supply.
The average trading volume of mortgage-backed securities (for January through August of 2008) is $344 Billion per day. Yes, Billion with a B. That isn’t just new mortgages, but also trading back and forth of old mortgages that are still alive. That means, for the government to affect market rates, they would have to put a TON of money into the system…possibly more money than they have put in anything else. $344 Billion per day equals a Trillion in about 3 days. And, as the interest rates/yields on mortgage backed securities go down, a lot of private money will simply leave the market place, meaning the treasury will have to increase its buying of MBS even more to not only continue to drive prices up, but also suck up the supply of the sellers that enter due to the unreasonably high prices, and also buy up enough to compensate for much of the demand from private money exiting, due to the returns being too small.
In short, to manipulate the markets in any way that has a long-lasting effect would be something so incredibly enormous, I am skeptical that it could be pulled off. If attempted, I can’t possibly see how rates could stay that low for longer than a week, simply because the supply of mortgages would sky-rocket, and the demand simply would not be there unless the government increased it’s buying even more.
There are option that is more likely is for some pool of “special mortgages” that only certain people qualify for – whether it be low-income housing, purchases in a distressed market, etc. The key here is that it would be very limited, as opening up that cheap of money to the general public would create such a flurry of activity, the money would be gone very, very quickly.
So, hopefully this helps explain the situation a little better. Right now, rates are extremely low – at their historical lows. For a customer to hold off and wait for something better is truly looking a gift horse in the mouth. But, it happens all the time…someone goes from 6.0% down to 5.5%, and they think they’ll hold out for 5.375…only for it all to shoot back up to 6.0% within a day or two!
I wanted to send an email out with my thoughts on it, and hopefully that will help all of us be better prepared when asked about it. I hope this isn’t too long or too technical, but I think it is good for you to not only have an answer for this question, but also to know they “why” behind it.
First of all, mortgages are pooled up as a securities, and sold back and forth every day. When a 6.0% bond sells for more than it’s worth, then it actually pays less than 6.0% (It pays 6.0% interest on $100, but you actually paid $102 for it, thus you are making 4% on $102, not 6.0% on $100). So, the higher the prices on Mortgage-Backed Securities, the lower the yield. The lower the yield, the lower the rate that borrowers have to pay. In order for the US Treasury to drive rates down by buying mortgage-backed securities (which is what was mentioned), the only way to do this is by simply buying up A LOT of mortgages. How much is “a lot”? Well, the federal government would have to enter into the market with such a huge amount of money that it begins to swallow up the all of the supply, causing prices to rise. And, as the prices rise, it will draw in more supply (old mortgages to be sold, or new mortgages created as refi’s or purchase), and then the demand will have to again increase to outstrip that supply.
The average trading volume of mortgage-backed securities (for January through August of 2008) is $344 Billion per day. Yes, Billion with a B. That isn’t just new mortgages, but also trading back and forth of old mortgages that are still alive. That means, for the government to affect market rates, they would have to put a TON of money into the system…possibly more money than they have put in anything else. $344 Billion per day equals a Trillion in about 3 days. And, as the interest rates/yields on mortgage backed securities go down, a lot of private money will simply leave the market place, meaning the treasury will have to increase its buying of MBS even more to not only continue to drive prices up, but also suck up the supply of the sellers that enter due to the unreasonably high prices, and also buy up enough to compensate for much of the demand from private money exiting, due to the returns being too small.
In short, to manipulate the markets in any way that has a long-lasting effect would be something so incredibly enormous, I am skeptical that it could be pulled off. If attempted, I can’t possibly see how rates could stay that low for longer than a week, simply because the supply of mortgages would sky-rocket, and the demand simply would not be there unless the government increased it’s buying even more.
There are option that is more likely is for some pool of “special mortgages” that only certain people qualify for – whether it be low-income housing, purchases in a distressed market, etc. The key here is that it would be very limited, as opening up that cheap of money to the general public would create such a flurry of activity, the money would be gone very, very quickly.
So, hopefully this helps explain the situation a little better. Right now, rates are extremely low – at their historical lows. For a customer to hold off and wait for something better is truly looking a gift horse in the mouth. But, it happens all the time…someone goes from 6.0% down to 5.5%, and they think they’ll hold out for 5.375…only for it all to shoot back up to 6.0% within a day or two!
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