Hello – thanks for stopping by today. This will be a very short note about my real estate update on the WPTF and WQDR today. I quoted Peter Lynch, best known as a top money manager. Lynch made the point that “there will never be a moment in time when you couldn’t scare yourself into doing ABSOLUTELY NOTHING! Yet, in spite of all the great and minor calamities that have occurred in the past 20 years – owning stocks is more financially rewarding than owning bonds.”
How does this apply to real estate? According to Lynch, the top reason NOT to buy stocks is if you don’t already own a home. In that case, the HOME should be your FIRST investment. Keeping with more Lynch advice – those that have the discipline to “pull the trigger” in a declining market will EXCEL handsomely in the coming years.
This is certainly true of our current real estate market. Any market slow down we’ve experienced is more than half over – yet there are currently some EXCITING opportunities in real estate RIGHT NOW.
Now here is some “Marti Hampton” advice. The time to make money on real estate is not when you sell a home – it’s when you BUY a home! Are you ready?
Call us soon, we’d love to help. Enjoy the two attached articles. God Bless –e-mail or call us soon. Mh
Article 1: Triangle See Strong Growth in Home Prices
Article 2: Ignore the Headlines!
Thursday, February 28, 2008
Monday, February 11, 2008
Proof - NOW is the Best Time to Buy Real Estate in Raleigh and Cary
Hello – thank you for stopping by my blog today. QUESTION. Do you think NOW is the best time to buy Raleigh real estate or Cary real estate? After watching this market for over 20 years, I am convinced that today’s market is a RARE OPPORTUNITY and one of the few true buyers markets that we’ve experienced in Wake County.
Now, I have proof for all you “engineer types” that need the facts in black and white print. Forbes magazine has ranked the “10 Best Places for House Bargains” and Raleigh real estate has ranked as the #2 best place to buy a true bargain. Our unemployment rate is a low 3.4% plus Wake County has a workforce of 435,188. Job growth matters and our local overbuilt real estate market resulted by speculative building spurred on by job growth. We do not have a high foreclosure rate and our thriving economy will likely balance out quickly. So - DO NOT PASS GO - BUT DO COLLECT thousands in profit that you will likely earn by buying Triangle real estate right NOW while it's "on sale!
See the attached articles for reference. Drop by again very soon. Call – e-mail and stay in touch. God Bless. MH
CLICK HERE TO VIEW THE ARTICLE!
Now, I have proof for all you “engineer types” that need the facts in black and white print. Forbes magazine has ranked the “10 Best Places for House Bargains” and Raleigh real estate has ranked as the #2 best place to buy a true bargain. Our unemployment rate is a low 3.4% plus Wake County has a workforce of 435,188. Job growth matters and our local overbuilt real estate market resulted by speculative building spurred on by job growth. We do not have a high foreclosure rate and our thriving economy will likely balance out quickly. So - DO NOT PASS GO - BUT DO COLLECT thousands in profit that you will likely earn by buying Triangle real estate right NOW while it's "on sale!
See the attached articles for reference. Drop by again very soon. Call – e-mail and stay in touch. God Bless. MH
CLICK HERE TO VIEW THE ARTICLE!
Sunday, February 10, 2008
The 10 Ways to Sell Your Home for TOP DOLLAR in Any Market
Hello – thanks for stopping by blog today. Recently on the Triangle real estate update, (heard mornings on WPTF and WQDR) I mentioned that I would post the 10 TOP WAYS to sell your home for top dollar in any market. Only recently has the Raleigh and Cary real estate market received a share of the real estate news that has been prevalent in most of the market now for months. With local and national real estate media headlining the adjustment of our market to a buyers market, home sellers that must sell NOW need to know how to maximize their home equity. Here are 10 ways to do exactly that:
1. Choose an agent that lists and sells a large amount of real estate. Give your business to a proven professional – now (or ever) is the time to trust your home sale to a newly licensed agent, a friend of the family, or an agent that has only a minor presence in today’s market. You want success on your side; pick the strongest agent you can find.
2. Choose an agent with a team. The last thing you need to do is list your home with an agent that promptly puts your home in MLS and then picks up an out of town buyer and is completely consumed for the next 10 days. There are 100’s of details to accomplish concerning the promotion, follow up, and on-line marketing of your home. Teams are the very best way to accomplish these daily & weekly tasks that have major benefit in obtaining the top market price for your home. Teams give you 10+ people working on the sale & marketing of your home vs. 1 person. It is a “no brainer” - choose a team that has experience and you will win more coverage for your homes listing.
3. Interview the agent by reviewing their website with the “eyes of the buyers”. Your agents online presence (or lack thereof) is a critical factor. Find out which agent has a “serious” web site that will attract home buyers AND hold their attention. Submit an inquiry and evaluate the time it takes to hear a follow up. Evaluate how the agent’s personal listings are presented.
4. Find out how many home listings the agent you are considering has in active inventory. This is one of the clearest ways to project how many calls your agent is likely to receive from home buyers. Remember, more home listings = more calls from home buyers. It is VERY IMPORTANT to be listed where buyers are shopping and likely to call.
5. Do not depend on MLS to do the agents job. There is a lot more to listing and promoting your home than just popping it on the local MLS. For example: find out how many additional websites your agent post your home’s listing on.
6. List your home with an agent that has a strong company backing. List your home with a company that has national recognition. Find out what company is ranked #1 in sales AND in internet visitors from buyers locally, nationally and globally. (Here is a hint – NO ONE SELLS MORE REAL ESTATE THAN REMAX)
7. Find out how your home listing will be presented on www.Realtor.com. As we’ve discussed, the World Wide Web is a BIG place and homes buyers have “different” ways of searching (review #5). However, Realtor.com has consistently ranked as the #1 stop for buyers searching for homes. Therefore, it is a very important site. Ask how many listings does my agent have on Realtor.com and do they stand out with multiple photos and printed information.
8. List your home with an agent that is NOT desperate for your business. This is not the time to do a favor. Listing your home is very important; choose an agent that does enough business to tell you the truth the first time on price and condition. Listing a homes multiple times with various agents is not the formula to earn top dollar.
9. Once you’ve chosen an agent with these standards – stay with that agent. Listen to your agent and remember that you are in partnership with that agent against the competition. Agents work very hard and very long hours. They pay a tremendous price to do the work necessary to stay on top of an ever changing real estate market. Ditching an agent that has spent time, money and hours of toil on selling your home is rarely the answer.
10. Remember, ALL AGENTS ARE NOT ALIKE. There is a vast difference between agents and your job is to find the one that will get you the highest price for your home. You’re not looking for a friend. You are looking for a “pro” with a proven track record. Hire the best agent you can find and the results will enhance your home sale in all ways INCLUDING your bottom line.
Thanks for stopping by today. I’d love to hear from you. Drop by again very soon. God Bless.
1. Choose an agent that lists and sells a large amount of real estate. Give your business to a proven professional – now (or ever) is the time to trust your home sale to a newly licensed agent, a friend of the family, or an agent that has only a minor presence in today’s market. You want success on your side; pick the strongest agent you can find.
2. Choose an agent with a team. The last thing you need to do is list your home with an agent that promptly puts your home in MLS and then picks up an out of town buyer and is completely consumed for the next 10 days. There are 100’s of details to accomplish concerning the promotion, follow up, and on-line marketing of your home. Teams are the very best way to accomplish these daily & weekly tasks that have major benefit in obtaining the top market price for your home. Teams give you 10+ people working on the sale & marketing of your home vs. 1 person. It is a “no brainer” - choose a team that has experience and you will win more coverage for your homes listing.
3. Interview the agent by reviewing their website with the “eyes of the buyers”. Your agents online presence (or lack thereof) is a critical factor. Find out which agent has a “serious” web site that will attract home buyers AND hold their attention. Submit an inquiry and evaluate the time it takes to hear a follow up. Evaluate how the agent’s personal listings are presented.
4. Find out how many home listings the agent you are considering has in active inventory. This is one of the clearest ways to project how many calls your agent is likely to receive from home buyers. Remember, more home listings = more calls from home buyers. It is VERY IMPORTANT to be listed where buyers are shopping and likely to call.
5. Do not depend on MLS to do the agents job. There is a lot more to listing and promoting your home than just popping it on the local MLS. For example: find out how many additional websites your agent post your home’s listing on.
6. List your home with an agent that has a strong company backing. List your home with a company that has national recognition. Find out what company is ranked #1 in sales AND in internet visitors from buyers locally, nationally and globally. (Here is a hint – NO ONE SELLS MORE REAL ESTATE THAN REMAX)
7. Find out how your home listing will be presented on www.Realtor.com. As we’ve discussed, the World Wide Web is a BIG place and homes buyers have “different” ways of searching (review #5). However, Realtor.com has consistently ranked as the #1 stop for buyers searching for homes. Therefore, it is a very important site. Ask how many listings does my agent have on Realtor.com and do they stand out with multiple photos and printed information.
8. List your home with an agent that is NOT desperate for your business. This is not the time to do a favor. Listing your home is very important; choose an agent that does enough business to tell you the truth the first time on price and condition. Listing a homes multiple times with various agents is not the formula to earn top dollar.
9. Once you’ve chosen an agent with these standards – stay with that agent. Listen to your agent and remember that you are in partnership with that agent against the competition. Agents work very hard and very long hours. They pay a tremendous price to do the work necessary to stay on top of an ever changing real estate market. Ditching an agent that has spent time, money and hours of toil on selling your home is rarely the answer.
10. Remember, ALL AGENTS ARE NOT ALIKE. There is a vast difference between agents and your job is to find the one that will get you the highest price for your home. You’re not looking for a friend. You are looking for a “pro” with a proven track record. Hire the best agent you can find and the results will enhance your home sale in all ways INCLUDING your bottom line.
Thanks for stopping by today. I’d love to hear from you. Drop by again very soon. God Bless.
Thursday, February 7, 2008
Why Fed Rate Cuts DO NOT Show up in Mortgage Rates
Hello – Thanks for stopping by today. Fed Rate Cuts have encouraged many buyers in the Raleigh and Cary real estate market. Here’s the challenge: If a prospective home buyer is “waiting” for additional rate cuts before buying a home, beware – this might not be the wisest plan. Barry Habib, the contributing Editor to CNBC.com, wrote a great article outlining why the Federal Reserve cuts rates, and why they DO NOT equal lower mortgage rates.
Here is Barry’s article:
"The Federal Reserve has been on a rate cutting spree once more. Many mortgage applicants are calling their mortgage representative and expecting a lower interest rate. Others who have been waiting to refinance are puzzled as to why mortgage rates have not moved lower during the recent five Fed rate cuts. This is difficult to explain to consumers who have watched a 2.25% reduction by the Fed with very little benefit in mortgage rates.
Is a Fed rate cut really good news for mortgage rates? The facts may be surprising. The Fed can only control the Discount Rate and the Fed Funds Rate. This is very different from mortgage rates. A mortgage rate can be in effect for 30-years while a rate set by the Fed can change from one day to another.
It is often said history repeats itself. And if history is any teacher, we can learn from what happened to mortgage rates the last time the Federal Reserve was in a rate-cutting cycle.
The last time the Fed was in a lengthy rate cutting cycle was back in 2001 from January 3, 2001, to December 11, 2001. In the span of 11 months, they cut the Fed Funds rate 11 times with eight of those cuts by 50bp. This resulted in a total of 475bp or 4.75% in short-term interest rate cuts taking the Fed Funds Rate from 6.00% down to 1.75%. Now most uninformed people would naturally think because the Fed cut rates by so much during this time that mortgage rates would follow suit and trend lower as well. Not so. Mortgage rates actually moved higher during this time of significant rate cuts because inflation, the arch enemy of bonds, gradually rose.
Now let’s take a look at what happened with the Fed’s most recent cutting cycle, the first since 2001. On September 18, 2007, the Fed cut the Fed Funds Rate by 50bp. The mortgage bond market briefly enjoyed a “knee-jerk” reaction to the Fed move by closing higher that day, but lost 140bp over the following two sessions. Then on October 31, 2007, the Fed lowered the Fed Funds rate by 25bp. The mortgage bond market responded by losing 78bp over the following five trading days. On December 11, 2007, the Fed once again lowered rates by 25bp and the mortgage bond market lost 88bp in the next three days. This past month, the Fed delivered a surprise 75bp rate cut on January 22, 2008, and mortgage bonds lost a whopping 144bp in just 2 days. Eight days later and as widely expected, the Fed cut rates by 50bp and mortgage bonds had little reaction – but, were unable to recover the enormous pricing loss seen back on Jan 23, the day after the surprise 75bp cut. "
We have an outstanding local real estate market for prospective home buyers. Our current buyers market is best described as “opportunistic”. If you are going to buy a first home or move up to a larger home – don’t wait another day to take advantage of the best buyers market in years. Remember, by the time you hear our market is going up – it will be too late.
Thanks for stopping by, God Bless. MH
Here is Barry’s article:
"The Federal Reserve has been on a rate cutting spree once more. Many mortgage applicants are calling their mortgage representative and expecting a lower interest rate. Others who have been waiting to refinance are puzzled as to why mortgage rates have not moved lower during the recent five Fed rate cuts. This is difficult to explain to consumers who have watched a 2.25% reduction by the Fed with very little benefit in mortgage rates.
Is a Fed rate cut really good news for mortgage rates? The facts may be surprising. The Fed can only control the Discount Rate and the Fed Funds Rate. This is very different from mortgage rates. A mortgage rate can be in effect for 30-years while a rate set by the Fed can change from one day to another.
It is often said history repeats itself. And if history is any teacher, we can learn from what happened to mortgage rates the last time the Federal Reserve was in a rate-cutting cycle.
The last time the Fed was in a lengthy rate cutting cycle was back in 2001 from January 3, 2001, to December 11, 2001. In the span of 11 months, they cut the Fed Funds rate 11 times with eight of those cuts by 50bp. This resulted in a total of 475bp or 4.75% in short-term interest rate cuts taking the Fed Funds Rate from 6.00% down to 1.75%. Now most uninformed people would naturally think because the Fed cut rates by so much during this time that mortgage rates would follow suit and trend lower as well. Not so. Mortgage rates actually moved higher during this time of significant rate cuts because inflation, the arch enemy of bonds, gradually rose.
Now let’s take a look at what happened with the Fed’s most recent cutting cycle, the first since 2001. On September 18, 2007, the Fed cut the Fed Funds Rate by 50bp. The mortgage bond market briefly enjoyed a “knee-jerk” reaction to the Fed move by closing higher that day, but lost 140bp over the following two sessions. Then on October 31, 2007, the Fed lowered the Fed Funds rate by 25bp. The mortgage bond market responded by losing 78bp over the following five trading days. On December 11, 2007, the Fed once again lowered rates by 25bp and the mortgage bond market lost 88bp in the next three days. This past month, the Fed delivered a surprise 75bp rate cut on January 22, 2008, and mortgage bonds lost a whopping 144bp in just 2 days. Eight days later and as widely expected, the Fed cut rates by 50bp and mortgage bonds had little reaction – but, were unable to recover the enormous pricing loss seen back on Jan 23, the day after the surprise 75bp cut. "
We have an outstanding local real estate market for prospective home buyers. Our current buyers market is best described as “opportunistic”. If you are going to buy a first home or move up to a larger home – don’t wait another day to take advantage of the best buyers market in years. Remember, by the time you hear our market is going up – it will be too late.
Thanks for stopping by, God Bless. MH
Friday, February 1, 2008
The Sky is NOT Falling
Hello – thank you for stopping by my blog today. What have you been reading about Raleigh real estate and Cary real estate? I imagine that the Marti Hampton Team's version of what is actually occuring daily in our local real estate market since the beginning of 2008 might vary a bit (or quite a bit) from what you are reading and hearing in the local and national news media. Let’s explore.
I am blessed with a very talented and diverse team of professionals. One of my team leaders, Claire Slaughter, has a background in health insurance before becoming a successful real estate broker. Claire was a former Regional Sales Manager for Blue Cross and Blue Shield of NC and Vice President of Marketing at Medical Mutual Insurance Company. Claire has a strong business sense that gives her unique & experienced prospective when evaluating our current real estate market. Here is Claire’s review of the "real world" of Raleigh and Cary real estate:
Have you read a newspaper lately? Or watched the evening news? If you have, I’m sure you’re convinced where real estate is concerned—the sky is falling. You are being told you can’t get a loan, if you could get a loan you would have to have led a perfect life and the price of houses will plummet into the year 2010. Taking all this into account, why should you even consider buying a home in 2008.
Well, not so fast there, Chicken Little!
Here are some things you should know about the Raleigh, NC real estate market.
First, let’s look at mortgage loans. Interest rates are as low as they have been at any time in the past three years, even in 2006 when the Raleigh market was booming. And you don’t have to have perfect credit or a 700 score to get a mortgage loan today. In fact, anyone who qualified for a conventional loan in the past 10 years can still qualify. Local mortgage lenders, both banks and brokers, are aggressively soliciting loan applications. Don’t believe me----call one.
Next let’s look at the future. Opinions vary as to when the current real estate cycle will end. Be careful about comparing the Raleigh market to the national market. In fact, there is no true national market. Real estate varies state to state and even community to community. True, sales were down in the Raleigh/Durham/Chapel Hill area in 2007 as compared to 2006 when there were record highs, but prices of homes that did sell were 6-7 percent higher than the year before. According to the Comptroller General of the , this area is one of the top 5 markets nationwide for real estate sales.
What does this mean to you as a buyer?
Waiting to buy a home here may not be to your advantage after all. Interest rates are historically low, loans are readily available and prices are continuing to rise. Unlike in recent years, you have the opportunity to make a negotiable offer on a house without having to enter a bidding war with other buyers. And if mortgage rates rise as expected, you may pay more for having waited! By the time you hear things are getting better, the best opportunities are gone. We are already seeing a pickup in the market as we would every year at this time and we expect it to continue into the spring and summer.
People want to buy homes. And when they have a job to pay the mortgage, the ability to borrow and the availability of reasonably priced homes, all of which we do here in Raleigh ---they will.
The Sky Is Falling is a great headline but as Chicken Little found out, in some places its only a passing cloud.
Thank you Claire. It is good to hear from you.
Thank you for stopping by today. Please call or e-mail us anytime. We’d love to hear from you. Take care & remember, by the time you hear that our local real estate market is going up – it will be too late to get one of the outstanding values that are available in today’s market. Stop by again soon. God Bless!
I am blessed with a very talented and diverse team of professionals. One of my team leaders, Claire Slaughter, has a background in health insurance before becoming a successful real estate broker. Claire was a former Regional Sales Manager for Blue Cross and Blue Shield of NC and Vice President of Marketing at Medical Mutual Insurance Company. Claire has a strong business sense that gives her unique & experienced prospective when evaluating our current real estate market. Here is Claire’s review of the "real world" of Raleigh and Cary real estate:
Have you read a newspaper lately? Or watched the evening news? If you have, I’m sure you’re convinced where real estate is concerned—the sky is falling. You are being told you can’t get a loan, if you could get a loan you would have to have led a perfect life and the price of houses will plummet into the year 2010. Taking all this into account, why should you even consider buying a home in 2008.
Well, not so fast there, Chicken Little!
Here are some things you should know about the Raleigh, NC real estate market.
First, let’s look at mortgage loans. Interest rates are as low as they have been at any time in the past three years, even in 2006 when the Raleigh market was booming. And you don’t have to have perfect credit or a 700 score to get a mortgage loan today. In fact, anyone who qualified for a conventional loan in the past 10 years can still qualify. Local mortgage lenders, both banks and brokers, are aggressively soliciting loan applications. Don’t believe me----call one.
Next let’s look at the future. Opinions vary as to when the current real estate cycle will end. Be careful about comparing the Raleigh market to the national market. In fact, there is no true national market. Real estate varies state to state and even community to community. True, sales were down in the Raleigh/Durham/Chapel Hill area in 2007 as compared to 2006 when there were record highs, but prices of homes that did sell were 6-7 percent higher than the year before. According to the Comptroller General of the , this area is one of the top 5 markets nationwide for real estate sales.
What does this mean to you as a buyer?
Waiting to buy a home here may not be to your advantage after all. Interest rates are historically low, loans are readily available and prices are continuing to rise. Unlike in recent years, you have the opportunity to make a negotiable offer on a house without having to enter a bidding war with other buyers. And if mortgage rates rise as expected, you may pay more for having waited! By the time you hear things are getting better, the best opportunities are gone. We are already seeing a pickup in the market as we would every year at this time and we expect it to continue into the spring and summer.
People want to buy homes. And when they have a job to pay the mortgage, the ability to borrow and the availability of reasonably priced homes, all of which we do here in Raleigh ---they will.
The Sky Is Falling is a great headline but as Chicken Little found out, in some places its only a passing cloud.
Thank you Claire. It is good to hear from you.
Thank you for stopping by today. Please call or e-mail us anytime. We’d love to hear from you. Take care & remember, by the time you hear that our local real estate market is going up – it will be too late to get one of the outstanding values that are available in today’s market. Stop by again soon. God Bless!
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