The National Association of Realtors is running an ad campaign.

This ad says, “Buyer’s market, seller’s market. Either way, it’s an ‘I-need-a-Realtor’ Market.”

“Right now rates are low and home choices are plentiful…”

In our Bradenton - Sarasota , Florida market it certainly is true. We have an abundance of homes and condos for sale. Prices have fallen to quite attractive levels. Buyers are starting to re-enter the market.

If you have been thinking of buying, now is an opportune time.

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Bradenton Real Estate

• Existing-home sales are projected at 6.42 million this year and 6.66 million in 2008, compared to 6.48 million last year. The national median existing-home price is projected to rise 1.2 percent to $224,500 this year, following a 1 percent gain in 2006. “Although existing-home sales will be marginally reduced due to subprime lending restrictions, they should be gradually rising this year and next,” Lereah says. “However, total sales this year will be fairly close to 2006 because last year started high and ended low.”

• Lending problems in the subprime marketplace, which continue to grow, will also play a role in housings’ recovery. “[This] could inhibit future housing activity and further dampen our forecast,” Lereah says. “Even so, these problems are likely to be contained and not spill over into the prime mortgage market.”

• The 30-year fixed-rate mortgage is expected to rise to 6.7 percent by the end of the year. Last week, Freddie Mac reported the 30-year fixed rate dropped to 6.14 percent. “Over the last few years, mortgage interest rates have moved in surprising directions — the unexpected dip we’re seeing now and a rise in mortgage applications are positive signs,” Lereah says. “With soft home prices and lower interest rates, affordability has improved for home buyers and that is encouraging them to get into the market.”

• New-home sales are forecast at 950,000 in 2007 and 981,000 next year, down from 1.06 million in 2006. The median new-home price should grow 1.7 percent to $249,600 in 2007, following a 1.9 percent increase last year. Housing starts will probably total 1.50 million this year and 1.56 million in 2008, in contrast with 1.80 million units last year.

Last week Freddie Mac, the second largest government backed mortgage underwriter, made some significant changes to its underwriting guidelines. Concerned by their potential exposure to non-performing loans as the number of borrowers defaulting is increasing sizably, they tightened the parameters required for Freddie Mac to purchase these loans from the originators. The investors who buy Mortgage Backed Securities on Wall Street are fearful that their portfolio of loans will default and they will be left holding the bag. The shocking statistic I read last week was that almost 50% of the mortgage loans currently held by Freddie Mac would no longer qualify under the new guidelines.

What does all of this mean to you…
Sub-Prime lenders are scrambling to accommodate the new Freddie Mac guidelines. I’ve received multiple notices from lenders whose product lines are being pared down or eliminated to meet the new conditions and demands coming indirectly from Wall Street. A few days ago was news that New Century Mortgage is tittering on the brink of bankruptcy, looking to join competitors who have already closed their doors:

Own it Mortgage - closed its doorsS

ebring Mortgage - closed its doors

Axis Mortgage - closed its doors

Oak Street Mortgage - closed its doors

Right Away Mortgage - closed its doorsSecured Funding - closed its doors

Encore Credit - closed its doors

Acoustic Home Loans - closed its doors due to a sudden increase in repurchases

Ampro - gone acquired by United Financial Corp.

Silver Trust - closed it’s doors

Freedom Mortgage - not doing 2nd TD’s anymore.

Decision One - closed 6 regional centers.

Division of Option One.

Mortgage Lender Network (MLN) - “stopped funding residential loans” on 12/29 (they didn’t actually say they were closing) but they have closed.

E-loan - announced it will close their sub prime wholesale division

Meritage - Sold to Lime Financial

Mandalay - Closed it DoorsPlus rumors of others struggling financially

Action required…
If you have a transaction which will require Sub Prime lending, my strong recommendation is to consult with your mortgage specialist immediately to confirm the program still exists and if it does, lock it right now before that changes. I know I’ve filtered my pipeline to ensure no one is surprised down the road.

Source: TheHarperTeam.com
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Bradenton Real Estate

I’m Dan Forbes and I want to be your Realtor and resource for all your Bradenton real estate needs.