Price reduction

An extended Aspen that was placed on the market 24 days ago at $280,000 has just reduced their asking price to $270,000. This home was originally placed on the market in August of this year at $335,000...subsequently reduced to $290,000, but the listing agreement with that agent was cancelled and the home was re-listed with a new agent at the $280,000 price this month.

The sellers purchased the home in 1999 for $167,400.

Merry Christmas Freddie and Fannie...from us, the taxpayers!

In an oddly timed move, on Christmas Eve The Treasury announced what essentially amounts to a blank check for the potential bad debt of Fannie Mae and Freddie Mac. Prior, the Treasury had a $200 Billion (each) limit on bailing out the "insolvent" mortgage lenders. At the present time, the two, combined have drawn down a little over $110 billion of the approved $400 billion.


Makes you wonder about the stability and equity of the $6 trillion dollars of loans on their books, doesn't it? If there is almost $300 billion still to go under their "credit-line" but The Treasury lifts all limits...on Christmas Eve no less! That scares me a little bit...as a taxpayer, homeowner and real estate agent...

FHA, 1st time buyers, short sales and perceptions...

Nearly 40% of existing homes purchased in November used an FHA-insured mortgage, according to a National Association of Realtors survey.

As a result, the FHA is having to defend the program, saying that it is well enough capitalized to avoid any major losses in case of surging defaults. Earlier this month, Department of Housing and Urban Development secretary Shaun Donovan was before Congress defending the FHA, and ensuring the House Financial Services Committee that the single-family insurance program is “not the next subprime.”

The increase in demand caused the capital reserve ratio at the FHA to drop below the Congressionally mandated 2% minimum, leaving HUD and the FHA scrambling to ensure the FHA program’s soundness.

A number of proposals are being considered, including the raising of insurance premiums, raising the minimum FICO (credit score) requirements, raising the minimum required down payments and reducing the allowable seller contribution...all of which will make it more difficult for buyers to qualify for and obtain financing (and hence, not good for sellers).

Other results from the Realtors survey showed first time homebuyers accounted for 51% of all transactions and are actively competing with investors for distressed properties...

And, distressed properties aren’t just affecting transaction price, however. The presence of distressed properties is influencing buyers’ perceptions of other homes for sale and many buyers have pricing expectations that treat every property as if it were a distressed sale.

Additionally, HUD issued a ruling that borrowers who were in default on their mortgage at the time of a short sale are not eligible for an FHA-insured mortgage for three years...

A Bank-Owned property has sold...

The bank foreclosure on Blue Bay (an Aspen 5) closed on 12/11/09

The bank priced the home at $285,000, however the final selling price was $223,000 with the bank accepting a cash deal. The home was on the market for a total of 48 days.

The prior owner paid $450,000 for the home in December of 2006 and it appears that the purchase was 100% financing (80/20).

Price reduction

An Antigua (floorplan on the left), on Blue Bay, that was placed on the market on October 20th at $349,900 has reduced their asking price to $344,900.

Aspen on the market

An Aspen with a pool on Blue Bay has just gone on the market as a short sale, priced at $299,000. The current owners purchased the home in March of 2005 for $422,500.

Back in 2007/2008 the current owners had the home on the market at $421,400 however after 6 months at that price, the listing expired. Doing a little research reveals that back in early to mid 2008, an Aspen with a pool may have commanded a price in the mid $300's.

Sample of some of the video marketing we have done recently