In Biblical times, flowing with milk and honey meant very prosperous. If you are unfamiliar with the Bible, that just sounds weird. I mean, I went to HEB (that's our local grocery conglomerate) and the milk aisle was over 50' long with at least six brands of milk and every variation of milk you can imagine... (I am just curious.. SOY? I know some people have to drink that, but...) I digress... the honey aisle... lot's o' choices...
So, America is flowing... why is the economy so crazy? Follow the money, as they say on TV. (Yes, I am a Law and Order fan) Only this time, it has to do with money NOT flowing. The log jam is the institution of lending. Here is how I see it:
Banks lent money to anyone and everyone for about 4 years. If you couldn't qualify, they changed the rules so you could. Everyone was approved. And in typical American fashion, when the poop hit the fan, the pendulum swung way hard the other direction. Lenders now will only lend if you don't need the money. You have to have a 720 score or better to get a face-to-face with a loan officer. After the blood test and the rectal exam, you still might get the loan if you clearly do not need a loan. I even heard of one commercial deal where the Buyer was approved for One Million bucks if they made a deposit of One and a half million into the lending institutions coffers... crazy...
And here we are. Many owners have those creative loans on homes they really couldn't afford. They can't refinance - they don't qualify. So they are stuck. They have to tighten their belts just to stay financially afloat. Others, though not as many as the media would have you believe, simply quit and let the banks foreclose... some do work-arounds or short sales. And of course, savvy buyers are out there snatching up the deals. At least, the buyers who can qualify. And, in a world of tight credit, Cash is king.
On the ground, as a Realtor in San Antonio Texas, I am seeing that prices are pressed down simply by the mentality that every deal should be a fantastic deal. Some very good homes are not selling simply because enough homes in their neighborhood sold cheap, due to foreclosures, or pressure to sell. Relocation companies lower their prices because they simply can't hold onto the homes forever... These are the best of times, these are the worst of times. It all depends if you are buying or selling.
FHA & VA have now stiffened their rules as well: 620 minimum FICO score. And I am seeing many more VA loans then what I had seen in quite some time (I have been helping folks with real estate for over 15 years). But even then, if your score is 620 or higher, prepare yourself for a thorough probing. Wash up.
I have more local info on my site at http:DannyTHomes.com . You can get a Market Snapshot of your home in our area, or if you are buying, set up an auto-search for deals. There is also info on schools, crime, etc.. Take a look. Let me know if I can help.
Until next time - keep your scores up!
Monday, April 27, 2009
Wednesday, April 8, 2009
Once Upon a Time...
It is April already! OMG!! (oh my gosh, for those who are not text savvy...)
This has been the most chaotic real estate market I have ever seen - as a Realtor for 15 years and, really, as an adult. (Some people who know me well may contest that.. the "adult" thing...) The stock market has been up and down, and down, and down, and up... If you like Roller Coasters, this has been one heck of a ride.
I have been reading the news from all over the country, and the concensus seems to be that we are either going to get worse, or going to get better, or stay the same. Some people are buckling in for a rougher ride, and some have them hands held high, screaming at the top of their lungs "Weeeeeeeeee! It's time to Buy.....!"
So, what is the story? What do we do? Here's my rendition of the drama:
Once upon a time, in a land not so far away, a fairly religious group of people decided they did not want to be ruled over by a guy wearing a white curly wig and knickers. So, they threw some tea in the ocean and chose to drink coffee from then on. A lot of the men from across the "pond" who would have never had rose to political power were able to because, in this strange new land, it didn't matter if you were a duke, knight, or other assorted royalties. All men were equal, and all men could participate in this great experiment (unless you were a woman or black... but that's another story.) So they thought some great thoughts, drafted a few documents, and won a war.
After some time, when people forgot what oppression and misuse of power was like, men less honorable manipulated their way into power. They then voted laws into effect that favored themselves, and their friends, and their biases. They forgot they were supposed to serve, and forgot what it was to put others first. Right became wrong, and minority became majority. Justice, who was already blind, lost both arms and legs in a terrible accident called "Tolerance". God, and those who believe He existed, were asked to sit down and be quiet. And they did.
Oh, times were good though, and it really seemed that everyone would have their own home, health care, and plenty of vacation time. Then some very, very bad men decided to fly airplanes into some buildings. The buildings fell, and so did the stock market. The men in power decided they couldn't fix the buildings, but they could fix the market. A little tweaking here, and a little tweaking there... and recovery was on its way. Everyone was entitled to their own home, even if they couldn't afford it, so some rules were overlooked, and pressure was applied, and next thing you know, credit was available to anyone with a breath! Oh what fun!
But, as many stories go, it was too good to be true. All of the tweaking came to a head, and many of the lies became known... as lies often do. Banks began to close, money was no longer available, and markets plummeted. The "Good Men" in power decided a little more tweaking should do the job... and so the tweaking continues. The story continues, with the end nowhere in sight.
>>>>
This was just for fun... I will post more on my thoughts soon... I really won't wait 5 months next time. :-)
This has been the most chaotic real estate market I have ever seen - as a Realtor for 15 years and, really, as an adult. (Some people who know me well may contest that.. the "adult" thing...) The stock market has been up and down, and down, and down, and up... If you like Roller Coasters, this has been one heck of a ride.
I have been reading the news from all over the country, and the concensus seems to be that we are either going to get worse, or going to get better, or stay the same. Some people are buckling in for a rougher ride, and some have them hands held high, screaming at the top of their lungs "Weeeeeeeeee! It's time to Buy.....!"
So, what is the story? What do we do? Here's my rendition of the drama:
Once upon a time, in a land not so far away, a fairly religious group of people decided they did not want to be ruled over by a guy wearing a white curly wig and knickers. So, they threw some tea in the ocean and chose to drink coffee from then on. A lot of the men from across the "pond" who would have never had rose to political power were able to because, in this strange new land, it didn't matter if you were a duke, knight, or other assorted royalties. All men were equal, and all men could participate in this great experiment (unless you were a woman or black... but that's another story.) So they thought some great thoughts, drafted a few documents, and won a war.
After some time, when people forgot what oppression and misuse of power was like, men less honorable manipulated their way into power. They then voted laws into effect that favored themselves, and their friends, and their biases. They forgot they were supposed to serve, and forgot what it was to put others first. Right became wrong, and minority became majority. Justice, who was already blind, lost both arms and legs in a terrible accident called "Tolerance". God, and those who believe He existed, were asked to sit down and be quiet. And they did.
Oh, times were good though, and it really seemed that everyone would have their own home, health care, and plenty of vacation time. Then some very, very bad men decided to fly airplanes into some buildings. The buildings fell, and so did the stock market. The men in power decided they couldn't fix the buildings, but they could fix the market. A little tweaking here, and a little tweaking there... and recovery was on its way. Everyone was entitled to their own home, even if they couldn't afford it, so some rules were overlooked, and pressure was applied, and next thing you know, credit was available to anyone with a breath! Oh what fun!
But, as many stories go, it was too good to be true. All of the tweaking came to a head, and many of the lies became known... as lies often do. Banks began to close, money was no longer available, and markets plummeted. The "Good Men" in power decided a little more tweaking should do the job... and so the tweaking continues. The story continues, with the end nowhere in sight.
>>>>
This was just for fun... I will post more on my thoughts soon... I really won't wait 5 months next time. :-)
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