US House OKs Jumbo Loan Increase As Part Of Stimulus Plan
January 31, 2008 | Filed Under Real Estate News, Mortgage and Finance | 2 Comments
As part of a newly-proposed economic stimulus plan under consideration on Capitol Hill, the U.S. House proposed an increase in the size of home loans that can be purchased by Fannie Mae and Freddie Mac. The National Association of REALTORS® sent a letter to Congress urging this move earlier in the month.
The conforming loan limit will rise to $729,750 for one year. The current limit is $417,000. The Federal Housing Authority will also be allowed to indefinitely insure loans up to the same level, which is currently set at $367,000.
“The stimulus package announced today is a positive step toward strengthening the housing market and our economy,” NAR President Dick Gaylord said in a public statement. “The increase in loan limits should provide liquidity to the mortgage market in all parts of the country allowing qualified home buyers who may have been on the sidelines to enter the market.”
NAR estimates that the increase would strengthen current home prices by 2-3 percentage points, reduce the supply of homes on the market to one to one-and-one-half months, generate $42 billion in increased economic activity and possibly reduce foreclosures by 140,000 to 210,000.
In high cost states, such as Massachusetts, home buyers with good credit could save up to $5,000 a year by not being forced into the current jumbo mortgage market, according to NAR.
Source: NAR
Boston Real Estate Market Seen As Better Off Than Nation’s
January 27, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Boston Real Estate | Leave a Comment
Boston seems to be better positioned for recovery than other parts of the country. At least that is what was portrayed at a dinner hosted by the Builders Association of Greater Boston last Wednesday and reported by Banker and Tradesman. Boston’s low unemployment and steady income growth will help the local housing market rebound, predicted Robert Denk, an economist with the National Association of Home Builders.
States such as California and Florida, as well as cities such as Las Vegas and Phoenix saw extreme price growth in a short amount of time. “These are markets that are riddled with thse bad (sub-prime) loans. They’re going to cause trouble in teh market,” said Denk. He also added that “Boston, in particular, (doesn’t) have these problems.”
The national headlines may not apply specifically to the Boston real estate market, as we have seen in recent months. Every market is different and, though national trends are important, local trends tend to be more meaningful.
Existing-Home Sales Prices Fall in 2007
January 26, 2008 | Filed Under Real Estate News | Leave a Comment
The year 2007 ended on a low note with existing-home sales at 5.652 million for the year, 12.8 percent below the 6.478 million transactions recorded in 2006, NAR reported this morning. Despite the decline, sales for 2007 were the fifth highest on record. The median sale price for all housing types was $218,900 in 2007, down 1.4 percent from a median of $221,900 in 2006.
December figures are just as bleak. Existing-home sales slipped 2.2 percent to 4.89 million units from 5.00 million recorded in November and were 22 percent below the 6.27 million units sold in December 2006, reports NAR. The national median sale price for existing homes for all housing types fell 6.0 percent in December to $208,400 from $221,600 a year ago. At the end of December, 3.91 million homes were available for sale, representing a 9.6-month supply at the current sales pace.
NAR chief economist Lawrence Yun says, “Home sales remain weak despite improved affordability conditions in many parts of the country, but we could get a quick boost to the market if loan limits are raised in combination with the bold cut in the Fed funds rate.”
Buyers Sue Agent Over Home Price
January 26, 2008 | Filed Under Real Estate News | Leave a Comment
Many people may feel they overpaid for a home they bought during the housing boom, but one California couple is trying to do something about it. According to the New York Times, Marty Ummel and her husband Vernon, of Carlsbad, are suing their real estate agent, claiming he withheld information that similar homes in the neighborhood were selling for less than the home they eventually bought. Real estate lawyers say the case, which goes to trial on Monday, brings into question the valuation process and could be “the first of many similar cases in which regretful or resentful buyers seek redress from the agents who found them a home and arranged its purchase,” the Times reports.
Forclosure Rate in Massachusetts Increased 148% In 2007
January 25, 2008 | Filed Under Mortgage and Finance | Leave a Comment
Banker and Tradesman reported this week that the foreclosure rate increased 148% in 2007 compared to 2006. There were total of 7,653 foreclosure deeds in 2007. To find foreclosure information and foreclosure auctions, subscribe to Banker and Tradesman on-line.
Luxury Condo At An Affordable Price
January 24, 2008 | Filed Under Boston Condos, Boston Luxury Developments, Boston Real Estate | Leave a Comment
The Bushari Team listed a new luxury condo at the Regatta Riverview Residences: 8 Museum Way Unit 502 Cambridge. This 2 bedrooms 2 bathrooms condo is tastefully renovated and features marble floors entry and hardwood floors throughout the condo, cherry kitchen cabinets with granite counter-top and breakfast bar, stainless steel appliances, marble bathrooms and 1 valet garage parking space. The Regatta Riverview is well known for its high end services, including concierge, full size gym, indoor pool, screening room and a party room - all available to residents at no additional charge.
Price: $549,000
Druker Plan for 330 Boylston Street unveiled
January 19, 2008 | Filed Under Commercial Real Estate, Boston Lifestyle | 1 Comment
The Back Bay neighborhood association gathered at the Boston Public Library Thursday night to hear deatails for the planned development of 330 Boylston Street. If the plan is approved, Ronald Druker, president of The Druker Co., will build eight floors of Class A office space with ground-floor retail and 150 garage spaces at the sight of the former Shreve, Crump & Low building. The proposed 221,230 square foot building on the corner of Boylston and Arlington has received a warm response from most Back Bay residents and business owners.
Interest Rates Hit 2-Year Low
January 15, 2008 | Filed Under Mortgage and Finance | 2 Comments
Interest rates hit a 2-year low at 5.5% for 30yr-fixed. This is a great opportunity to refinance or lock your rate.
Ricardo Brasil from Wells Fargo Home Mortgage is offering this rate with closing costs or “under 6%” with no closing costs and no points! With that in mind, you will have the option to float down the rate within 30 days, just in case the fed will lower the rate further. Wells will require a $500 lock deposit and will reimburse it to you at closing.
For Example: If you have a loan of $500,000 at 6%, you will save $159 per month; and if your rate is 6.5%, you’ll save $321 per month!
Disclaimer: Rates are subject to your credit score and income and may very from one to another; contact Mortgage Banker ricardo Brasil to get qualified.
Views, Views and more Views
January 7, 2008 | Filed Under Boston Condos, Boston Luxury Developments, Boston Real Estate | Leave a Comment
The Bushari team started marketing another great property at the Regatta Riverview Residences. This unit has the most amazing views the Regatta has to offer: panoramic views of the Back Bay, Beacon Hill, Financial District, Zakim Bridge and the North Point Park. Unit 2122 is located on the 21nd floor of the North Tower and has 2 bedrooms, 2 bathrooms and 1 garage parking space. The unit needs some renovation and care — One thing is for sure: The views are just amazing!!!
Price: $799,000
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