Fannie and Freddie - question mark?

Hello Bloggers – THANK you for stopping by today. It seems that each time we get a moment to breathe in my industry – WHAM, another dramatic headline is there to make the residential real estate market “nervous”. Local Raleigh real estate and Cary real estate are NOT in the “tank” as the national head lines would have us believe. Truthfully, our team’s July numbers are better than 2007 – so for us the market has bottomed out and beginning to rise.

I do want to address Fannie Mae and Freddie Mac headlines. The best way to accomplish this is to get the facts from someone I trust in the banking/mortgage field. That’s exactly what I am going to do. Below, Michael Martin gives a short explanation follow by a link that goes into depth. Here is a word from Michael Martin of Starkey Mortgage.

Regarding Fannie Mae and Freddie Mac: Naturally, a lot of people are wondering
what this may mean to them in regards to a purchase loan or the possibility of
refinancing their home. There is very detailed information listed in the link
below and if you are able to take the time to read it I am sure it will help you
understand what is happening. Here is a brief overview though...

Last
week it was brought to Fannie Mae and Freddie Mac's attention that they needed
to change some accounting procedures to "correct" their books to accurately
report the losses that they are facing. It was then reported on Wednesday that
if Fannie and Freddie were to change the books to the more accurate accounting
method that they would be "insolvent" which is obviously not good. The reality
is and has been that the companies have enough liquidity to remain in business
and that they are also able to raise capital if necessary to continue to remain
in business. On Friday, the Federal Reserve announced that they would open the
Discount Window to Fannie Mae and Freddie Mac if it would become necessary. The
"Discount Window" is basically like a line of credit with the Federal Reserve.
The reality is that this provided a safety feature to investors that will help
many people feel more comfortable in continuing to invest in these companies.
Fannie and Freddie may never actually need to borrow from this window but it is
nice for investors to know it is there in case of emergency.

The real
deal is that the government cannot allow for either of these quasi governmental
companies to cease. They are far too important to our overall economy and it has
been good for everyone to see that the Government has been able to step in to
provide security. If you have any questions at all please feel free to email or
call me with any questions. I certainly don't have all the answers but I have
access to most of them. We are continuing to move through the tough times and
once we have arrived at the other side of these murky waters, we'll all be glad
we’ve studed the market carefully and continued to believe in the value and
strengh of the American Home.

Link: http://www.MartiHampton.com/july_14.pdf

You Need My Pep Talk

Hello Bloggers! Thanks for stopping by. It has been one long month since I have had even a “moment” of time to chat about our local Raleigh and Cary real estate market.

The facts are that we have near a 30% down turn in the number of home sales in our area as compared to this same time last year. We would have to travel back in time to before 2004 to compare a year with a similar tract record in deed transfers. These facts coupled with favorable interest rates deliver a very attractive & compelling buyers market for the smart ones.

I often get asked “When will this market will turn?”. You can imagine that I closely tract my teams sales numbers. From January to June of 2007 – I have not begun to match the sales numbers we achieved in 2007. Aha! My first month of higher sales numbers will arrive this month in July of 2008. Therefore, you could say our team – has got the “hang” of successfully navigating our home sellers and home buyers our current real estate market.

So why do “you need my pep talk”? Because too many of us are allowing the negative news and “fears” that the 24/7 news culture is feeding us to dominate our thoughts and in turn our actions. We face major challenges in our government and the upcoming election. This is nothing unusual – we’ve done this our whole lives.

We are just too focused on Washington right now. It’s understandable during a presidential race but not very productive. Rather than look to Washington to inspire us – we are going to have to inspire ourselves. Rather than look to Washington for leadership – we are going to have to lead ourselves.

What has all this to do with real estate? Over 70% of the OWN a home – what a outstanding blessing of the liberty! Many think that real estate is the backbone of our economy. Therefore, we as Americans will have to continue to make America great in spite of who ever ends up in Washington.

Many people think we can’t do anything to affect all this, but we can. We can learn to express ourselves to influence those around us in a positive way. Instead of concerning ourselves with what the media says should take our mind and attention, perhaps we should get more involved more local and state government where we can truly make an impact.

These are just my thoughts, but I’m really more than a little “miffed” with the negative media and our preoccupation with the same. We will be looking back at the outstanding buyers market of 2008 and wondering why we did not buy more real estate.

If you would like to visit our office to view a 15 minute presentation on current statistical facts on Raleigh real estate and Cary real estate and find the hottest real estate investments – call for an appointment.

Until next time – take care and God Bless. Thanks mh