For foreign buyers, fire sale in U.S. real estate - MarketWatch

In this commentary by Kathleen Madigan, the foreign buyer's perspective on US real estate, including a link to the National Association of Realtors' take on the matter.  Foreign demand is another source of support for real estate prices in the States, and another reason we won't see further decline in the prices of homes in desirable locations.

This is not to support our government's ongoing devaluation of the dollar, but it is an example of how world markets can offset the effects of our own missteps. - David

The Debate over Fannie & Freddy

This Washington couple is in real hot water. Won't see them on the cover of People Magazine though. - David

White House schedules Fannie-Freddie conference - MarketWatch

Best Way to Get the Most Home for your Money? - Depends on Where You Are

Amy Hoak explains that getting the most for your housing dollar depends on your market area.  In some, like the South Bay, your best deal may be a standard sale, properly negotiated.  Let investors fight it out over the relatively few foreclosures and short sales!

In others, prevalent foreclosures (REO's) could be a better bet.

How about short sales? Those are a very long shot UNLESS a previously bank-approved sale has fallen through.  Then the pump may be primed for a successful short sale.

More info: Home buyers, get the most for your money Amy Hoak's Home Economics - MarketWatch

Home In Escrow but Won't Appraise?

One of a buyer's key purchase contingencies is the appraisal contingency. If you're asking considerably more for your home than your Realtor advised, and manage to get into escrow for close to that amount, you might be at risk.  But what if your home is reasonably priced and still doesn't appraise for the agreed-upon purchase price?  Then you're going to need a truly knowledgeable Realtor (or with you had one!) to help fight back against a low home appraisal.- David

Jumbo Money Becoming Available?

Jumbo loans went the way of stated income/stated assets loans in recent years.  But they will come back, because there is a huge market for them, at least on a regional basis (e.g., the South Bay).  Jumbo rates are coming down of late, to the extent that they are available.  The tradeoff is that down payment reuirements are quite high. 

And NO, there are not meaningful jumbo stated income loans out there yet unless you're willing to put down 40-50%!  For more info: Jumbo mortgages now more affordable Amy Hoak's Home Economics - MarketWatch

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Fed Meets, Rates Hold, Time to Refinance

In this MarketWatch video, a BankRate expert explains the importance of locking in low fixed rates while the Federal Reserve keeps rates low (as they reaffirmed today).  This is smart advice in an environment of rates that are low for now but can only go up. - David

Cutting through the red tape of home short sales - MarketWatch

More about short sales, some hopeful.

Cutting through the red tape of home short sales - MarketWatch

If lenders get serious about allowing these and processing them within a reasonable time (there are reasons why they don't want to do so; see my earlier posts on the subject), this is another opportunity to stabilize the real estate market, get homeowners out from their underwater mortgages, and avert foreclosures. That's a good thing, and banks who comprehend it will be making a tough situation better on themselves and the market. - David

Remodeling activity is on the rise, architects say - MarketWatch

Thinking of remodeling instead of trading up? You're not alone! - David

Remodeling activity is on the rise, architects say - MarketWatch

Don't try these improvement projects at home - MarketWatch

From shows on the DIY network and on HGTV, you could get the impression that the majority of homeowners love to purchase fixers and spend every weekend on enormous home improvement projects.  Well, it's more like 5%, but the value of making the right improvements to your home is definitely there.

I say the right improvements because

Is it time to give up your adjustable-rate loan? - MarketWatch

If your credit is strong, your mortgage is above water, and you have an adjustable rate mortgage, you have a very important decision to consider.  While fixed rates are still low, and all rates are poised to increase, it may be time to lock your rate instead of riding the yield curve as it shifts upward.

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How lenders decide whether to modify a mortgage - MarketWatch

Ever wonder how lenders decide whether to modify a mortgage?  Sit down, relax, take a deep breath, and read this (partial) answer. - David

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Added tax-credit benefits for military home buyers

Any benefits we can offer to our military and foreign service personnel are well deserved.  Here's one I'm glad got added.  -David

Added tax-credit benefits for military home buyers Realty Q&A - MarketWatch

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Treasury seeks to speed up mortgage modifications - MarketWatch

This program is yet to be seen, but the Feds have finally incorporated what's been needed all along: an incentive for loan servicers to be receptive, responsive, and participative when homeowners come calling for mortgage modifications.

Treasury seeks to speed up mortgage modifications - MarketWatch

So pleased to see the Federal Government show even the slightest faith in incentives, which in the business world we know can work wonders! - David

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The Right-Sized Home

Many would agree that the term "McMansion" is a fairly transparently biased, loaded, or perhaps even offensive term.  Lots of homeowners prefer larger homes, others prefer downsizing.  Regardless of your preference, here's an informative video from the recent Builder's show on using space more efficiently and effectively.

Builder's Show "McMansion" Video

Ignoring the loaded terminology, it's useful for us to see what both designers and builders are thinking these days. - David

Remodeling activity forecast to pick up in 2010 - MarketWatch

With homeowners hanging onto their homes longer, it's not surprising that remodeling will rise. - David

Remodeling activity forecast to pick up in 2010 - MarketWatch

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Builders, buyers embrace smaller houses - MarketWatch

Builders discovering less is more to many homebuyers. - David

Builders, buyers embrace smaller houses - MarketWatch

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The 10 must-have features in today's new homes - MarketWatch

Here's what the market says we want in new homes - David

The 10 must-have features in today's new homes - MarketWatch

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Clearer mortgage documents make shopping easier - MarketWatch

The new good faith estimate rules, now in effect, require lenders and escrow companies to do a more precise job of estimating closing costs. 

Clearer mortgage documents make shopping easier - MarketWatch

The problem is,

Week-to-week mortgage applications rise 14.3%: MBA - MarketWatch

Rates on fixed rate mortgages slightly DOWN, rates on adjustable rate mortgages slightly UP, number of mortgage applications UP, but about 70% of those are refinances (good time to be looking at that). - David

Week-to-week mortgage applications rise 14.3%: MBA - MarketWatch

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Foreclosure glut deflates all home sales

I'm often asked whether (or why) distressed property listings and sales (foreclosures, short sales) affect the value of normal properties offered for sale under standard terms.  Here's a commentary on that topic from MarketWatch:

Foreclosure glut deflates all home sales Realty Q&A - MarketWatch

The bottom line is that the market prices homes in light of available substitutes, so distressed properties, though usually in much worse condition than other properties, definitely have an impact in the eyes of buyers, appraisers, and lenders.