Is There Blood On The Street ???

I believe that it was Rockefeller who said that one should buy when there was blood on the street (Wall Street). Warren Buffet believes the same. In other words, buy when things are low, sell when they are high. Hello..........it is a BUYERS MARKET!! If you have decent credit and a little bit of money saved, why aren't you buying?

This same edict works for sellers. If you have equity and have owned your house for awhile, why not buy the house of your dreams when you can get a great deal on it?

Interest rates are low, banks are lending (believe it or not!), sellers are willing to be creative. The world is NOT coming to an end.

I have posted the most recent stats for the rolling quarter July to September 2007 compared to the same period 2008 in the prior post. While sale numbers have declined and prices have also come down, this means one thing for buyers - housing is becoming more affordable. As we move into the traditionally slower Fall market, the smart buyer is out looking for that perfect house at the perfect price. Watch the absorption rates, as they move closer to 6 months supply demand will begin to pressure prices up and there will be less deals to be made. Watch for my entry on the absorption rates for Portland, Maine!

Buyers--------get out there!!!!!

Rolling Quarter Stats - Maine Real Estate

I apologize that this is hard to decipher! I will comment on the following BLOG!







FOR IMMEDIATE RELEASE




CONTACTS: Listed Below
Maine Real Estate More Affordable
SOUTH PORTLAND (October 27, 2008) - Maine’s median sales price for a single-family existing
home was $177,750 in September 2008, down 6.45 percent from one year ago. The median sales price
indicates that half of the homes were sold for more and half sold for less.
According to the Maine Real Estate Information System, Inc., statewide sales dipped 9.73 percent.
Realtors reported that 928 homes changed hands during the month, compared to September 2007’s
statistic of 1,028 homes.
Across the United States, single-family existing home sales were up 3.8 percent in September. The
National Association of Realtors reported a national median sales price of $190,600 represents an 8.6
percent decline over the past 12 months.
Regionally, sales in the Northeast were 7.7 percent lower than a year ago. The regional median sales
price was $246,800—a decrease of 5.4 percent.
Jim Fitzgerald of Coldwell Banker Residential Brokerage in Kennebunk says, “Having a Realtor is
essential in this market. Understanding the immediate past performance of the market and
determining the level of pricing aggressiveness that’s required to move the property are best
developed using an experienced Realtor—one who is currently in the trenches, dealing with the
realities of this market on a daily basis.”
For those looking to buy, Fitzgerald adds, “There is enormous potential to secure property at reduced
prices, using rates that remain close to historic lows. Half of our closings remain second homes, which
tells me that people are looking for a special place, like Coastal Maine, to bring their families. Quality
of life still ranks very high on people’s wish list when it comes to securing their next home in Maine.”
Below are two charts showing statistics for Maine and its 16 counties. The first chart lists statistics for
the month of September only, statewide. The second chart compares the number of existing, singlefamily
homes sold (units) and volume (MSP) during the months of July, August and September of
2007 and 2008.
(Continued)
Maine Real Estate Statistics –September 2008 Housing Report—10/27/08—Page 2 of 2
SEPTEMBER ONLY CHART
From September 1-30, 2007 and September 1-30, 2008
County # Units Sold # Units Sold % MSP MSP %
2007 2008 Change 2007 2008 Change
STATEWIDE 1028 928 -9.73% $190,000 $177,750 -6.45%
ROLLING QUARTER CHART
From July 1, 2007 – September 30, 2007 and July 1, 2008 – September 30, 2008
County # Units Sold # Units Sold % MSP MSP %
2007 2008 Change 2007 2008 Change
STATEWIDE 3700 2915 -21.22% $195,000 $182,500 -6.41%
Androscoggin 251 197 -21.51% $165,000 $145,000 -12.12%
Aroostook 118 95 -19.49% $77,175 $100,000 29.58%
Cumberland 876 709 -19.06% $255,000 $238,825 -6.34%
Franklin 101 75 -25.74% $142,000 $125,000 -11.97%
Hancock 171 117 -31.58% $192,000 $235,000 22.40%
Kennebec 334 315 -5.69% $155,950 $141,500 -9.27%
Knox 157 83 -47.13% $208,000 $192,000 -7.69%
Lincoln 127 88 -30.71% $239,000 $189,750 -20.61%
Oxford 178 118 -33.71% $145,750 $138,950 -4.67%
Penobscot 400 317 -20.75% $145,000 $141,000 -2.76%
Piscataquis 69 47 -31.88% $120,000 $108,000 -10.00%
Sagadahoc 114 71 -37.72% $211,600 $180,000 -14.93%
Somerset 92 100 8.70% $120,000 $125,000 4.17%
Waldo 118 79 -33.05% $185,000 $159,000 -14.05%
Washington 13 17 30.77% $110,000 $77,000 -30.00%
York 581 487 -16.18% $238,000 $224,900 -5.50%
Source: Maine Real Estate Information System, Inc. Note: MREIS, a subsidiary of the Maine Association of REALTORS, is a statewide
Multiple Listing Service with over 5,200 licensees inputting active and sold property listing data. Statistics reflect properties reported as
sold in the System within the time periods indicated
Contacts:
Marie Flaherty, President, MREIS (Prudential Northeast Properties, Westbrook) – (207) 797-8585 – marie@tfre.com
Marc Chadbourne, Past President, MREIS (Century 21 Nason, Winslow) - (207) 873-2119 – info@marcchadbourne.com
Kevin Robert, Past President, MREIS (Coldwell Banker Residential Brokerage, Saco) – (207) 282-5988 – Kevin.Robert@nemoves.com
For additional names – MREIS – (207) 780-1366; help@mreis.com
# # #

I Will Be Glad When the Election Is OVER!

I love politics, believe me! That was my major in college. But, frankly, this election season has been painful. Nothing but bad news...potshots....negativity....no leadership. In the spirit of full disclosure, I am supporting the Obama/Biden ticket because we need a change and I think change of parties and policies is helpful. I wish that all the candidates could be out there outlining specifics on what they will DO to get this country back on the right track after the debacle of the legalized gambling aka credit swaps, derivatives, and other chicanery that has been allowed to dominate the financial markets. I thought a better idea on the part of politicians would be to have given every homeowner in the country a grant on their primary residence that went directly towards their mortgage or equity line. If they didn't owe money, then put it in a CD or other vehicle that could be accessed at retirement. Something!!!

So...we wait and hope that the next President surrounds himself with smart people who are willing to do the right things to turn us around. I am banking on Obama! How about you???

Wild New World!!

I have been following this economic turmoil with great interest, and not just because of the historic potential! While my IRA's have been melting away, I have become somewhat philosophical about it all. After all, yesterday is gone and tomorrow isn't even here yet! So, what are the good things to come out of all of this mess?

First, it is a reminder that money is nothing more than a theory really. It is a symbol for time, power, material goods, or...in the case of weird things like derivatives....just theory!! Money is the cause for more angst, or more joy than just about anything. Money doesn't really belong to anyone. It can be used - for good or for bad. When it is hoarded, like the banks have been doing, it doesn't do any good for anyone. When it is freely circulated with good intention, it is very powerful.

I am very hopeful that more people will get into a better relationship with money as a result of this tumult! Buy only what you need, choose debt wisely, and, above all, spend it forward!!

Sizzling Summer - and dazzling oil prices!

Good evening as I gaze out at the beautiful mid summer sunset! I seems hard to believe that another six months will see us in the cold and dark. Have you planned for the oil prices? With a sense of deja vu ( I came of age in the last major oil crisis), I gritted my teeth and made plans to lock in my oil and gas for the winter. $4.42 a gallon seemed unbelieveable a month ago, but now looks like a darned good deal. It's all relative I guess. So..what do we do?

Just like the late seventies and erly eighties, we need to get serious about conserving what we have and searching for new soluttions. It's too late to bemoan what might have been, but it is real easy to start thinking about winterizing the house, figuring out how to turn down the heat or close off rooms, tuning up the furnace, checking out alternatives, and putting aside some money to pay for it all.

Does your oil supplier offer lock in prices? Is there a downside plan if prices drop? Can you hook into natural gas? Would a Rinnai or Monitor work? How about those old drafty windows? Can you make use of passive solar gain? How about quilts for the windows?.......the list goes on.

Don't wait until the snow flies! Make plans now. It won't hurt as much. I promise!

Buying a house and the cost of oil

It has been awhile as I have been very busy with my real estate business - a good thing. However, the perceived crush from oil prices seems to be having a choking effect on people's desires to move. This being said, I think that if I were looking for my first home, I would be anticipating that at least I can control my own fuel costs and not be at the whim of a landlord who will jack the rent to cover expenses, or, if I were paying my own heat, wouldn't be attempting to tighten up insulation, improving efficiency, etc. When one owns their own house, they are in control of their own destiny - and fuel costs - which in this market is a great thing!



Also, it looks like rates may be on the rise. If you are looking to buy, you might want to get out there now!



Happy hunting!

Where has the time gone??

Believe it or not, the time has flown since my last sign in and that is because I have been very busy selling real estate! It is about time. As mentoned in previous musings, now is the time to be out there scooping up deals. With the dollar in a dive and treasuries not being sold, the only direction for mortgage rates is UP!! Contrary to popular belief, the prime rate which has fallen in recent months only helps the short term borrowers, like equity lines, credit cards, and the like. The mortgage rate is tied to long term treasuries which in turn are very susceptible to the vagaries of the dollar and the stock market. With the dollar at historic lows, investors are not buying tresuries which means less money is avail ble to be lent which means rates go up.........and on and on. While housing prices might come down some more in the next six months, with a rise in rates there will be no difference in monthly payment to borrowers. I have read that it would take an additional drop of 12% in value to make up for an increase in rates. In fact to wait for a drop in price may mean you end up paying more monthly due to a rate increase! Why wait?? The savvy buyers are out now and are getting great deals! This is the time to buy!

The Recession is Good News

OK. I think we are in a recession. I am no economist, but I am a consumer and a small business owner. I think folks have taken their money and gone home. At the very least they are warily looking about for the great deal, the highest and best use for their hard earned dollars. This is the good news.

According to Ben Stein, "in a recession in this era, more than 10 million men and womenwill need cars and trucks. Many millions will need new homes. ....even in a recession, there are plenty of people with money to spend." (Rethinking the Recession, January 17, 2008, Yahoo Finance)

He goes on to write," Those who tend to their work, who get to the office or showroom or shop early, stay late, work hard, stay on the phones dialing for deals ....will make money. Those who stay sharp and make a point of befriending their clients will make money. Yes, some extra effort will be needed, but it'll pay off."

Stein reminds us that that there are always going to be recessions and they always end. The economy is adjusting to "move onto a new plateau."

Listen to Stein and "Stay hungry. Work harder. Dig deeper. Keep investing....You'll come out all right on the other side."

Get to it!!!

Buyers are coming out of hibernation!

Maybe we are in a recession, or maybe not, but the showings a re picking up and the offers are coming in! With the Fed Rate at 3% and the inventory plentiful, buyers are CRAZY not to get out there and make their dollars go further!

The most recent report from MREIS indicated that prices have come down over the state. While one will not see the huge drops in value seen in the speculative markets of Florida, California, and Las Vegas, there are still good values out there. These values will not continue indefinitely!

2001 to 2002 saw a recession after the tragedies of 9/11. Within a year after, the housing market started to pick up and soared into the stratosphere. By 2005, the sky seemed to be the limit. With the slowdown of 2006 and 2007, it only makes sense that prices will begin to increase again. The analysts are predicting a bottoming out this year.

If you have a house with equity and want to buy up, now is a great time to take advantage of the opportunity. If you are a first time homebuyer, now is the time to get into the market. YOU will NOT be disappointed!

If you must sell for whatever reason, get yourself a professional REALTOR who knows the market and get priced competitively. Your house will sell!!

Mortgage Rates are LOW!

Did you know that today's mortgage rates are the LOWEST since the Summer of 2005??!! It is a terrific time to find out what you qualify for and take advantage of today's low FIXED rates.

Don Cohen, Downeast Mortgage
207-773-6161

Save on closing costs by choosing your title company.

Your title company may seem like the last step in the purchase of a new home or refinance. In reality your title company has been working along with your realtor and/or lender to produce that magical day where you refinance or buy your home. (And sign a 2 inch thick stack of paper work). It’s called the closing, escrow or settlement depending on your state.

The title company you choose performs three essential functions, the title search, issuing title insurance and the closing. The title search consists of reading the previous deeds and any other in documents recorded in your county’s offices regarding the property to determine if the seller does indeed have title to the property. A title company should be searching back at least 40 years in the registry of deeds to establish clear title.

Your title insurance company also issues title insurance. Title insurance is an insurance policy which protects the lender and the homeowner against loss resulting from any defects in the title or claims against a property that were not uncovered (or missed!) in the title search. These claims may result from liens on the property, claimed easements, forged documents, unrecorded “wild deeds” or the lack of proper authority to sign a document.

You will be required to purchase Lender’s title insurance which protects the lender. You will also have the option to purchase an owner’s policy of title insurance. It is a one-time fee that protects you as long as you own the property against claims to your title. Note, that a lender policy protects the lender only, not you. The only way for you to benefit from the title search that was performed is to purchase the owner’s title insurance.

The last service the title company you choose will perform is the closing. The closing is the day when you will go to the title company and sign all of the paperwork to purchase or refinance your house. The title company will coordinate the lender, the real estate brokers, the sellers, the buyers and any lawyers if they are involved. After the closing your title company will record the relevant documents and you can move into your new home.

I’ve used the phrase “title company you choose” a few times in this article. That’s because you should choose your title company and avoid being directed to one particular title company by your lender or realtor. You should be shopping for your title company just as you shopped for a realtor or shopped for an interest rate. State law guarantees you the right to choose your title insurance company and protects you from any increased fees for exercising this right. If you feel that you are being forced to use a particular title company, you should contact the attorney general.

All title companies are not created equal. They vary on the quality of service, price and the product they provide. Here are the questions you need to ask.

1. What is the price for the closing and what is the price for the title search? These are the fees for coordinating all of the parties involved in the closing and performing the title search at the registry of deeds. You should ask your title company to account for every charge that it is going to assess to you.

2. What is your overnight carrier fee? Title companies will have to overnight mortgage payoffs and all the documents you just signed at closing to the bank via an overnight carrier. This is an area where there are frequent “up-charges.” You shouldn’t pay any more than $15.00 for each overnight package.

3. How much will I pay for recording? Recording fees at the registry of deeds are the same in all 16 Maine counties. Generally the charge is $16.00 for the first page of a document and $2.00 for every page thereafter. On your settlement statement you will be able to note the amount you are being charged and at closing you will be able to count the pages of your deed and mortgage to make sure the amount is correct.

4. Will you close at my real estate sales agent’s office? It may be more convenient to close at your mortgage brokers’ office, your real estate sales agent’s office or even your home. Will the title company you are choosing close away from their office?

5. If I am not satisfied with your service will you refund my closing fee? The closing fee is payment for organizing and performing the closing. You as a buyer will most likely be paying the closing fee and if you are not satisfied with the service you received, ask for it back. Make sure your title company puts this guarantee in writing; don’t just accept their word on this.

6. How much is the title insurance premium? Different companies charge differing amounts for title insurance and you can request a quote ahead of time. You will be required to purchase a loan policy of title insurance to protect the lender and the owner policy is optional (but a very good idea).

7. Are there any other fees I will be paying directly to you? This is the catch-all question to hopefully identify any other miscellaneous charges that the title company may charge.

You should be shopping for a title company just as you shopped for interest rates and a great real estate sales agent. You can save hundreds of dollars (or more) and more importantly, you can choose a quality title company which will result in a smooth and problem free closing.

And lastly, buy the owner’s title insurance. It is optional so you could save a few hundred dollars by declining it. However, your home is your largest investment and just as you would not want to be without hazard insurance, you don’t want to be without title insurance. A recent survey by the by American Land Title Association found that there were title problems in one-third of all residential real estate transactions. An owner’s title insurance policy is your protection against a title error such as previously recorded liens or an outstanding ownership interest by prior owners in the chain of title. It is cheap protection for your most valued possession.

For More information contact Matthew J. McDonald
mjmcdonald@landam.com

First time homebuyers take note: if you qualify for the Maine State Housing program, you could receive a rate under 5% on a 30 year fixed mortgage loan!! Even if you do not qualify for this program, FHA fixed mortgage rates are as low as 6.25%!!

Sellers take note: work with a Realtor who understands the affordable loan programs that are available in today's market, thus assuring you the expertise needed to navigate through today's market.

There are many fixed rate programs available to help buyers BUY and sellers SELL.

D. Cohen, Downeast Mortgage