Archive for July, 2009
Is That Condo FHA or CHFA Approved?
July 21st, 2009 categories: Real Estate Market
Today, FHA financing accounts for approximately 1/3 of all new mortgage applications (according to Mortgage Bankers Association).
If you’re a buyer looking to purchase a condominium and you plan to use FHA or CHFA (and VA) financing, then the prospective condominium complex must be approved by FHA (if you’re going CHFA, the complex must be approved by both FHA and CHFA).
Thankfully, it’s pretty easy to find out.
CHFA Approved Condos - note that CHFA has additional restrictions so talk with your lender
If the complex is not on the FHA list, talk with your Realtor & lender about getting it approved. FHA has a process called “spot approval” for complexes not already on the approved list.
| Discussion: 4 Comments »
Hartford County Home Sales Up Slightly in June 2009
July 6th, 2009 categories: Central Connecticut News & Information, Real Estate Market
In June 2009, the median sales price of single family homes in Hartford County Connecticut increased to $236,000 over May 2009.
Pending sales are also up in June to 1,431, an increase when compared to May 2009.
But in comparison to June 2004-2008, the number of closed sales for June is way down - there were almost half the number of sales in June 2009 as there were in June 2005.
Event though 2009’s real estate market is relatively slow (this turtle was kind enough to pose for me in my yard last week to use in this post), the number of homes on the market is low enough to make the real estate market fairly balanced.
From April - June 2009, there were 1,590 single family home sales in Hartford County or 530 sales per month. With 3,224 homes currently on the market, there is a 6 month supply of homes on the market or a balanced market - neither a seller’s nor buyer’s market.
However, there is a high number of pending sales that will likely not close which actually puts the months of inventory higher around 7-8 months. I’ll talk about this “hidden” inventory more this week.You may also enjoy reading:
Motivaton Makes the Real Estate Market Go ‘Round
Two Bedroom Homes Not Always Harder to Sell in Central CT
Do you dig real estate news, tips and advice? Sniffing around for pet-related information in Connecticut?
Get Unleashed - the blog that’s helping to find homes for people and pets.
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REMAX.com Redesign
July 2nd, 2009 categories: Real Estate Listings
RE/MAX International just rolled out a newly redesigned and improved REMAX.com.
A few things I like:
You can view comparable sales and even request a comparable market analysis.
There are articles for home buyers and sellers.
Listings show large photos and a photo slider.
You can request a showing.
Your search results will recommend other similar properties.
You can also view market statistics.
Listings are mapped out for easy reference.
I do not like the fact that users cannot search multiple towns in one search or search by map. I e-mailed RE/MAX International already to express my disbelief. This is just plain silly.
As the now #6 real estate website and #2 franchise on Hitwise’s Top 20 Real Estate Websites, RE/MAX needs to step up and reclaim the spot as #1 franchise by offering a better product than consumers can find on Realtor.com.
| Discussion: 2 Comments »
New Appraisal Standards Complicate Real Estate Market
July 1st, 2009 categories: Mortgages & Finance
The problem used to be that lenders and appraisers were too cozy. The lender hired an appraiser for the borrower and more often than not, the appraisal miraculously came in at the buyer’s purchase price. Appraisers felt pressure by their client (the lender) to justify the purchase price so as not to ruin the deal and lose future business. Buyers were skeptical because they thought the appraisal should be a completely independent opinion of price.
In response to a lawsuit from the State of New York, Fannie Mae and Freddie Mac instituted new appraisal guidelines in May 2009 called the Home Valuation Code of Conduct (HVCC). The new code prevents local mortgage brokers from selecting local appraisers; rather lenders will hire appraisers. Also, 10% of all loans bought by Fannie or Freddie will have a second appraisal ordered to validate/invalidate the first appraisal.
To comply, many lenders are hiring appraisal management companies (AMCs) who in turn hire the appraisers.
According to reports from appraisers, the AMCs are demanding appraisers work for less and hand in their reports faster. The initial results seem to indicate that these changes are driving appraisals lower and lower because appraisers can’t spend the time on reports they once did, appraisers hired may not have the local expertise needed, and appraisers are concerned about coming in “too high” on an appraisal and losing future business.
“Lenders burned by huge losses from defaults now are pressing appraisers to be more conservative. And appraising itself is more difficult with home prices fluctuating rapidly and transactions few and far between in some markets; sale prices from a few months back may no longer reliably indicate the value of nearby homes.” Read the rest of this entry »
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