The cost of Indecision

If you are on the fence about buying a house right now, consider this... if you had bought a $200,000 house roughly 2 weeks ago your monthly principle and interest payment could have been around $1,167 per month but if you bought that same $200,000 house today... it would likely be $1,297 per month. That's $130 per month just because interest rates have gone up.

Now is a great time to buy. There are a lot of homes on the market to choose from and prices are competitive. Don't let indecision cost you even more.

Brandi Nelson, Realtor

The Hill-Nelson Real Estate Team

Century 21 Signature Real Estate

www.hill-nelson.com

515-291-0914

Licensed Realtor in the state of Iowa

Each office independently owned and operated.

Pending Home Sales Rise

The National Association of Realtors reports that pending home sales are up sharply. Check out the full article below.

Daily Real Estate News October 8, 2008 Pending Home Sales Up Sharply
Pending home sales activity surged as buyers took advantage of low home prices and affordable interest rates, according to the NATIONAL ASSOCIATION OF REALTORS®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in August, jumped 7.4 percent to 93.4 from an upwardly revised reading of 87.0 in July, and is 8.8 percent higher than August 2007 when it stood at 85.8. The index is at the highest level since June 2007 when it stood at 101.4.

Improved Affordability
Lawrence Yun, NAR chief economist, says home buyers were responding to improved affordability. “What we’re seeing is the momentum of people taking advantage of low home prices, with pending home sales up strongly in California, Nevada, Arizona, Florida, Rhode Island, and the Washington, D.C., region,” he says.

“The improvement also reflects the drop in mortgage interest rates after the government takeover of Freddie Mac and Fannie Mae. It’s unclear how much contract activity may be impacted by the credit disruptions on Wall Street, but we’re hopeful most of the increase will translate into closed existing-home sales", adds Yun.

The PHSI in the West surged 18.4 percent to 109.5 in August and remains 37.8 percent above a year ago. In the Northeast the index jumped 8.4 percent to 79.8 and is 2.0 percent higher than August 2007. The index in the Midwest rose 3.6 percent to 84.5 in August and is 6.6 percent above a year ago. In the South, the index increased 2.3 percent to 96.0 but is 2.1 percent below August 2007.

Yun notes the unusual timing of contract activity in August. “Home buyers in July were hampered by overly stringent lending criteria in the months before the government takeover of Fannie and Freddie,” he said. “August shows some unleashing of pent-up demand before the credit crisis accelerated in September.”

He cautioned that the sampling size for pending home sales is smaller than the track on existing-home sales, so there is more volatility in the forward-looking series. “We need to see just how much of this gain holds up,” Yun adds.

NAR President Richard F. Gaylord says despite all the turmoil in world financial markets, home mortgages are available. “The recently enacted economic stimulus package should help housing by gradually freeing the flow of credit," he says.

Yun now expects growth in the U.S. gross domestic product (GDP) to contract for two consecutive quarters, in the fourth quarter of this year and the first quarter of 2009, before expanding in latter part of 2009 as the housing market begins a steady improvement.

Existing-home sales projected to rise next year
Looking at middle-ground assumptions, existing-home sales are forecast at 5.04 million this year and 5.41 million in 2009. Following national declines of 5 to 8 percent in 2008, home prices are projected to increase 2 to 3 percent next year.

New-home sales should total around 503,000 this year and 471,000 in 2009. Housing starts, including multifamily units, are likely to fall 28.2 percent to 973,000 units this year, and come in around 843,000 in 2009 as builders continue to clear the accumulation in inventory.

The 30-year fixed-rate mortgage will probably average 6.1 percent in the fourth quarter and rise gradually to 6.6 percent by the end of 2009. NAR’s housing affordability index is expected to average 18 percentage points higher this year than in 2007.

The unemployment rate is projected to average 6.4 percent in the fourth quarter and then average 6.6 percent in 2009. Inflation, as measured by the Consumer Price Index, is estimated at 4.0 percent for 2008 and 2.0 percent next year. Inflation-adjusted disposable personal income is forecast to grow 1.7 percent this year and 1.0 percent in 2009.— NAR

Brandi Nelson, Realtor

The Hill-Nelson Real Estate Team

Century 21 Signature Real Estate

515-291-0914

www.hill-nelson.com

Each office independently owned & operated.

Licensed Realtor in the state of Iowa

You fix you!

Yesterday I heard the best description of the economic bailout plan yet. I highly suggest and encourage you to use the link below and listen to the highlights from Monday's Dave Ramsey Show. Dave is definitely putting the ball back in our courts!

http://www.daveramsey.com/tdrs/index.cfm/2008/10/6/YOU-fix-you

Brandi Nelson, Realtor

The Hill-Nelson Real Estate Team

Century 21 Signature Real Estate

515-291-0914

www.hill-nelson.com

Each office independently owned & operated.

Licensed salesperson in the state of Iowa

Sale! Sale! Sale!

The real estate industry is having a sale!

We don't know how long these prices and inventory will last, so act now!

Financing is available at very low rates, call for details!

First time home buyer incentives!

Incredible opportunities for investment &/or income!

Brandi Nelson, Realtor

The Hill-Nelson Real Estate Team

Century 21 Signature Real Estate

515-291-0914

www.hill-nelson.com

Each office independently owned & operated.

Licensed salesperson in the state of Iowa.

October is Century 21 Open House Month

Check out www.century21.com , or www.hill-nelson.com or www.openhouse.com to see all of the open houses available in October. My office, Century 21 Signature Real Estate has at least one house open every day in October!

Brandi Nelson, Realtor licensed in Iowa
Century 21 Signature Real Estate
Each office independently owned & operated
www.hill-nelson.com
515-291-0914 (cell)

4th Annual Hill-Nelson Golf Tournament

It's that time of year again! Time for the Hill-Nelson Real Estate Team's 4th annual Client Appreaciation Golf Tournament on Friday, September 12th at the Jewell Golf & Country Club.

We'll serve lunch at noon, the 4 person best shot tournament will start at 1:00 and we'll have appetizers around in the club house around 5pm. Even if you don't golf feel free to join us for lunch or after the tournament for appetizers and socializing!!


Brandi Nelson - The Hill-Nelson Real Estate Team
Century 21 Signature Real Estate, Ames, Iowa
Each office independently owned & operated.
515-291-0914 (cell phone) www.hill-nelson.com

Lesson Learned

I've said it before, I'll say it again...and maybe this time I will listen to myself! If you have a sump pump, you should have a dual sump system or a battery backed-up system.

Then I urge everyone to check their home owner's insurance for septic/sewer/sump failure coverage. I was told that most insurance companies only add this coverage when asked. In most homes with basements, your most important mechanical items are down there... your furnace, water heater, washer/dryer, pressure tank, etc. Those items add up fast when your basement floods!


Brandi Nelson - The Hill-Nelson Real Estate Team
Century 21 Signature Real Estate, Ames, Iowa
Each office independently owned & operated.
515-291-0914 (cell phone) www.hill-nelson.com

Rain, rain go away!

Well folks, its been raining here forever... or at least it seems that way. The rivers are all out of their banks, fields have huge ponds in them and yes, basements have water in them. Just remember if you are looking at homes right now its actually a good thing. You are most likely seeing the basement at its worst. If it doesn't have water now - it probably never will!!

Brandi Nelson - The Hill-Nelson Real Estate Team
Century 21 Signature Real Estate, Ames, Iowa
Each office independently owned & operated.
515-291-0914 (cell phone) www.hill-nelson.com