Why banks are making it tough on consumers looking for mortgages

John Sauro of North Atlantic Mortgage has this interesting take on mortgage rates today as viewed in an interview with Bloomberg News. Click on the title to see the video interview.

Reuters Article. Housing Market has Turned

Click on the title above to read the article.
This article mentions that the rates of sales have increased because of the amount of foreclosed homes being sold at attractively low prices. The National Association of Realtors say that the inventory of homes on the market fell 11.7% in December translating into a 9 month backlog (not so bad because in a healthy market we see a 6month backlog). In New Canaan, we currently have 211 homes on the market. Although the article speaks to a national audience, there are some similarities between national averages and our New Canaan market. Well before the statistics and graphs publish sales data and average prices, I see what is happening first through the level of buyer interest generated. Phone calls start, emails begin with questions, showings result and then negotiations begin. While we are not yet seeing an abundance of sales, we are seeing increased activity and a tremendous amount of interest. For example, I see several properties bindering extremely quickly because the asking price has been reduced substantially or they come on the market at a very attractive asking price. These homes are generating a multitude of showings initially and then offering bids, sometimes even multiple offers resulting in a sales price over the asking price. The bottom line is "for those who have to sell, price is the name of the game". You definately can sell, but it has to make sense for each and every homeowner because every body has a different story and a different level of motivation. Also, mortgage rates are at 30 year historic lows, allowing so much more buying power.

A Look At Another Real Estate Market

I spent the weekend in Florida visiting parents and had the opportunity to look at some condos for sale. While is is dizzying to try to sort through the myriad of available properties, short sales and foreclosures in South Florida, I singled out a few and I found this condo particularly appealing.
1147 Hillsboro Mile Unit #1006 Hillsboro Beach Florida
Originally listed at $329,000, the current listing price is $169,000. However, the highlight feature of this condo is the view. Located at the 10th floor penthouse level, it has commanding views of both the Atlantic Ocean and the Intercoastal and the views to the west inland. It is located on Hillsboro Beach on The Hillsboro Mile adjacent to a string of single family multi million mega mansions, so the view over the tops of these homes is commanding and will not change. Common charges are $536 monthly, which include a 24 hour security guard, lovely pool, immaculate beachfront, community room, gym and garage parking. Taxes are $4896 per year, so the total cost of carrying the unit is approximatley $1,000 per month excluding mortgage. But at the asking price of $169,000,the mortgage is minimum. Click on the title to see the listing detail. What an eyeopener!

New Canaan Real Estate Activity January 19, 2009 through January 25, 2009 (Residential Only)

New Listings

105 Richmond Hill $699,900
183 Smith Ridge Rd $870,000
82 Lakewind Rd $1,165,000(relisted)
792 North Wilton Rd $1,925,000
128 Dunning Rd $1,995,000(relisted)
1343 Smith Ridge Rd $2,990,000
887 Weed St $7,250,000

Pending Contracts

577 Cheesespring Rd $1,189,000