Interest Rate Bottom?

Last month we discussed the possibility of a local housing market bottom. This month, we are unfortunately, going to explore an interest rate bottom.

Last week, the Fed announced at their Federal Open Market Committee meeting that there will be no additional buying of Mortgage Back Security’s, and that they will be rationing out the remaining commitment through the first quarter of 2010. There was some speculation that the Fed would be increasing this amount. Unfortunately, it turned out to be mere speculation.

I know what you’re asking, “What does this mean for interest rates?” Allow me to explain a bit further and then answer. The fed’s purchase of these Mortgage Backed Security Purchases increased the demand for this paper, thereby decreasing the interest rates in the overall market. This has created the historic low rates in the high 4′s over the last few weeks.

So going forward, interest rates are likely to increase. Some are predicting significant increases above 6%. This could result in a ~ $380/month difference on a $400K 30 year loan for an interest rate difference of 6.25% vs 4.75%.

If you’re looking to buy a home within the next year, you might consider contacting me sooner than later…..

P.S. I’ve attached a Short Sale opportunity in this e-mail. If you’re looking for a low maintenance life style or cash flow from an investment, you might consider this home. Call or e-mail me for information on a Short Sale. In short, a lot of investors and buyers consider short sales if they are looking for a great deal on an investment. They’re not for everyone, so call me for more information.

Matt Curtis

NHSP of Year – 2007 & 2008

Nominated as Top 50 Realtor Under Age 30 in US

Senior New Home Sales Professional – Woodland Homes

256.990.7564 (c)

Bottom of the Market???

Quick Story, and then some great information in September’s Real Estate update that you do not want to miss!

Bryce and I took our first football road trip together this weekend (sorry UA and AU fans – it was to Knoxville
http://www.facebook.com/people/Matt-Curtis/1172746660

During the trip, I ran into some old friends. They asked me where I was living, career, etc. When they found out I was in Real Estate, they asked, “Why don’t you move back to Knoxville? You can sell Real Estate anywhere.”

I went on to explain the benefits of living to Huntsville/Madison from the awards we’ve received to quality of life to the stable economy. You can read about some of these awards here: http://www.mattcurtisrealestate.com/resources-matts-archives.asp. When some of the most conservative of economists are predicting depressions, yet are predicting growth for Huntsville, it’s a no brainer on why I have chosen to make Huntsville/Madison my family’s home and why I am investing in Huntsville/Madison.

With that being said, many of my clients tell me, “I know Huntsville/Madison is a great place to live and invest in real estate, but how do I know the best time to invest (i.e. when will we hit the bottom)?”

While no one can predict the exact bottom, we can look for SIGNALS. During the “Top of the Market,” we heard:
-Everyone is buying real estate
-Experts warn that a bubble has developed

Now, we’re seeing other SIGNALS:
-Builder’s Confidence Raises to Highest Level in 1 Year: http://www.cnbc.com/id/32448971
-Huntsville Realtors Association reports Median Sales Price Increase in July:
http://www.huntsvillerealtors.com/share/0709%20HAAR%20Press%20Release.pdf

National Economist Harry Dent has predicted increased migration and growth in southeastern markets. In particular, he is very bullish on North Alabama and Birmingham.

Other experts agree, Madison was recently ranked amongst the top 10 cities in the nation to grow up in:
http://www.usnews.com/listings/americas-10-best-places-to-grow-up/9

Business Week highlights Alabama as a state with projected growth over the next 4 years: http://images.businessweek.com/ss/09/06/0618_house_worth_2012/2.htm

Housing Prices Up Again: http://www.cnbc.com/id/32550485

Could these be signs that now is the time to buy real estate in Madison, Alabama?
I am here to help you NOT MAKE A MISTAKE and to make good decisions during this economy. Call me today for your free real estate consultation.

Matt Curtis

NHSP of Year – 2007 & 2008

Nominated as Top 50 Realtor in US Under Age 30 – 2009

Senior New Home Sales Professional – Woodland Homes
256.990.7564 (c)

 

 

BRAC Update

The Huntsville Times recently reported an update on the progress of the BRAC transfer by interviewing Joe Ritch (Tn Valley BRAC Executive Committee Chairman).

Here’s the stats:

-4700 new positions added by the end of 2011

-700 of those positions were moved here in 2008

-Only ~ 240 BRAC posts are expected to be moved here in 2009.  Ritch commented on 2009 moves by saying, “They now have filled up any available space where they can put people on a temporary basis,” he said.  “The next thing is, we’ve got to have completed buildings in order to accomodate them.” In 2008, construction started on MDA’s 840,000 square foot addition to the Von Braun Complex. Construction also began on the 400,000 square foot Material Command headquarters, which will host ~ 1325 AMC positions and ~ 360 Security Assistance Command jobs.

-There’s been a total of ~ 1600 positions moved to Redstone since 2006.

-The majority of the positions are scheduled to be here in 2010 and 2011, with nearly 1900 positions in 2010 alone!

……Just another reason why 2009′s Buyer’s Market is the time to build your dream home, unless you like competing with 1900 other home buyers……

Matt Curtis

Senior New Home Sales Professional

NHSP of Year – 2007 & 2008

Woodland Homes

256.990.7564 (c)

256.721.9255 (f)

mcurtis@woodlandhomes.com

www.MattCurtisRealEstate.com

Alabama Home Sales Data for August 2008

The Alabama Center for Real Estate (of The University of Alabama) released it’s monthly housing report for August 2008. For the state, we saw a modest price increase of 3.34% from $163,119 to $168,572. However, sales slowed state wide including in the Huntsville area. There were 789 homes purchased in Huntsville in August 2008 versus 983 homes purchased a year ago. The average days on the market state wide increased 15 days from 116 to 131 days. The largest concern came from increased monthly supply from 7.7 months to 10.5 months.

The Huntsville market is seeing an increase in supply, particularly in the $400K + range. Future supply could decrease with continued economic expansion, BRAC transferees, and a decrease in the supply of builders in the area.

This is a great move up market. I am seeing a lot of individuals take advantage of this market. I personally helped 8 clients find new Woodland Homes last month in October. There were 4 new home owners in Walden Preserve and 4 new home owners in Foxfield, the two areas in which I am the on-site realtor. I attribute this activity to homes being priced below the market.  This is an incredible opportunity to take advantage of market conditions to find the home of your dreams for a price that one could only dream about months ago. Move up buyers can take advantage of this market by pricing their home competitively to gain a tremendous amount of equity in a larger home. My resell business is experiencing similiar results. Home owners who are serious about pricing their competitively are seeing quick sales. Over the last couple of months, I have had 3 homes sell for list price or above. This week, I had a listing bring in 3 offers in 1 day (2 of the offers were list price or above).

Favorable Prices + Favorable Interest Rates = A Once in a Lifetime Opportunity to Purchase the Home of your Dreams. And if you’re not convinced on the tremendous affect that interest rates have on a home purchase, I have a homework assignment for you. Calculate the payments for a $400,000 home at 6% for 30 years. Now let’s assume, this home decreases in value 5% and rates go up .5% to 6.5%. Now decrease the home value to $360,000 and increase rates 1% to 7%. What is the monthly payment on 30 years for these 3 scenarios? I’ll give you a hint, they’re all within a few dollars (literally) of each other. Here’s a finance calculator for your convenience: http://www.mattcurtisrealestate.com/r_mortgage-calculator_loan.asp

Call me today to find out more information and to begin your dream home search: Matt Curtis 256.990.7564.

Bottom of the Real Estate Market???

I recently attended a training session by one of the top real estate trainers in the country. A question was posed to him, “How do you know when we’re at the bottom of the market?” This is a valid question because everyone wants a good value or “deal,” and no one wants to overpay for anything, let alone one of the largest investments most Americans make.

Here’s the indicators he said we should be looking for to know that we are at the bottom of the market:

1) NAR (National Association of Realtors) reports a slight increase in sales.

2) “Experts” are predicting that there’s no end to the problems in sight, i.e. we’re headed into  a long recession.

Now read, the recent headlines:

1) NAR reports highest level of sells since June 2007: http://www.cnbc.com/id/27083816

2) US Recession: http://news.sbs.com.au/worldnewsaustralia/deep_recession_likely_in_us_imf__559035

Call me today for your bottom of the market pricing: 256.990.7564 or e-mail at mcurtis@woodlandhomes.com.