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School days and Market Changes..

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The real estate market in Northern Virginia appears to be taking a quick breath so far in September.  Through the first eight months of the year we were on a whirlwind tour with multiple offers, few days on the market and escalating sales prices, but as the summertime came to a close and with the Labor Day holiday and kids going back to school we have seen a slight slowdown in the market.

The inventory of resale homes available remains low at just over 5,400 which is down 25% from the same time last year.  In addition, sales of existing properties are up the last 30 days by 4% over the same period last year.  But the number of houses on the market is up from the previous week and the number of weekly sales the last four weeks has declined each week.  And prices are down slightly from June to July – August prices are not yet released.  As we look at these numbers, again, my belief is it is August, one of the historically slow months for real estate.  People go on vacation, families are gearing up for their kids to go back to school, it is the end of summer, and people are getting back into routines in their lives.

As we look back, in a National report by Corelogic, the July Home Price Index (HPI) showed home prices-including distressed sales-increased year-over-year by 3.8 percent in July. On a month-over-month basis, prices increased 1.3 percent from June and July marked the fifth consecutive increase in home prices on both a monthly and yearly basis.  In Northern Virginia, we are tracking very close to the year of year stats with a 3.2% increase over last year.  Interest rates remain extremely low on all loan products for housing which is good for sellers, more buyers can qualify to buy – buyers, payments are lower and home owners looking to refinance to stay in their homes also have the opportunity to lower their payments.

All in all, we are experiencing a great real estate market in Northern Virginia and we should continue on this path of recovery.  The only issues that potentially could impact the local market is sequestration and Dodd-Frank reform so we will keep on top of these fronts for you and report back as we know more.  If you ever have any questions, always feel free to call us – we are here to help you.

And the market goes on and on and on…

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It is amazing what a difference our real estate market has experienced this year versus the last few years.  Previously we were inundated with short sales, foreclosures, dropping prices and very little confidence in the market.

Today, we are at a low point in the number of short sales and foreclosures on the market since I started keeping track of them over two and a half years ago.  In October of 2010, we had 1,460 short sales on the market, today we have only 386.  Additionally, foreclosures are at a low point as well.  In November of 2010, we had 516 foreclosures on the market and today we only have 178.  Additionally, prices were falling in the Northern Virginia area.  According to RBIntel.com our market prices bottomed out in February of 2009 with an average sales price of $307,225.  Today our average sales price is $469,800.

We are still off our highs of 2006-2007, but we are headed in the right direction.  All of this information coupled with low interest rates has restored confidence in our market.

Rates?  Did I just mention rates?  Yes I did and they are ridiculous!  Yesterday I heard one of our clients locked in a rate of 3.25% with a lender credit of 2%.  We continue to see rates decline which leads to the question of how low can they go before more people act on refinancing or purchasing?  Only time will tell.

The last area I would like to touch on is our rental market.  The inventory of active rentals remains low and interest in these properties remains high.  At this time, many people prefer to rent over buying as they remain skittish about buying or are in a situation such as a recent short sale which prohibits them from being able to purchase.  This situation has resulted in rental rates rising making investing a viable option for many people – maybe even you!

If you would like more information on how these numbers affect you whether buying or selling a house, or if you would like to discuss becoming an investor, pick up the phone and give me a call.  I would love to speak with you about your situation in more detail.

 

 

Got to love great real estate minds….

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Wow, what Platinum Group today.  Agents are feisty, fed up and frustrated with lenders.  Issues were flying across the conference room fast and furious.  The question was asked – How’s the market?  Here is what came about – Financing problems are prevalent.  Some owner problems by not disclosing full details – not telling agent about businesses, tax situations or other properties owned.  But most seem to be lender problems – mainly, not telling the truth.  One lender didn’t tell the agent the Visa expired, said application was in all paperwork submitted and nothing was turned in – contract and lender letter said conventional then switched to FHA at appraisal time.  Lending guidelines are too strict, lenders are too ambiguous and regulations need to be relaxed to make well qualified, legitimate buyers home owners.  We are held accountable to performing at a higher standard and the lenders are not – it is a huge problem!  Lenders need to adhere to a business standard – develop one, make them sign it and if the lender doesn’t, don’t use them.  They have no skin in the game, no accountability and no repercussions.

Agents have buyers coming out of their ears.  Listings are being shown but there doesn’t seem to be any sense of urgency from the buyers.  Move up buyers seem to be lurking out in the market as well.

What prices are selling?  The lower price points are selling – mid price points are coming down and languishing on the market.  Prices are up year over year but are dropping month to month since July.  Keep an eye on this trend through the winter.  Prepare sellers to price competitively from the beginning or the house may not sell or you will end up chasing the market.

Are foreclosures coming?  Agents are not doing BPO’s, short sales are down, and notice of trustee sales in the papers is down so the answer is not now.  Asset managers don’t have any idea of what is coming down the road either.

How are short sales progressing?  One has been in process 2.5 years – has had 6 contracts and still not approved – it is a Bank of America deal…no surprise.   We had one agent had 3 short sales drop out last week.  Another one has 10 under contract and they are languishing on the market.

Is the loan limit reduction hurting your business?  It has had only a limited effect on the agents in the group.  Only one deal has had an impact with 10 agents and multiple transactions in process.

Agent’s years are about the same as last year.  Their volume is up but units are down but overall, income will be the same – we will see how the loan limit reduction will affect us next year.  How will 2012 be for you?  Spring is going to be strong.

All the agents agreed that this was one of the best meetings we have had which is great.  The energy was high, there was lots of passion and everyone left with enthusiasm.

Now, go sell something.

Our donation dollars at work!

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Our Visit to Children's Hospital 
There are times in your life when you feel fortunate and humbled at the same time.  Our visit to The National Children’s Hospital in Washington, DC was one of those occasions.  We are fortunate that our children are healthy and not undergoing treatments that many of the children at the hospital have to endure.  We are fortunate to have experienced the hospital as visitors and not as parents or friends of a patient staying at the hospital.  As a result of our contributions to the Children’s Miracle Network we were able to have a VIP tour of the hospital.  It is an amazing facility that provides unbelievable care to children for any reason regardless if they have insurance or not. 

What immediately struck me was the kindness of the staff from the valet parker to our tour guide Milton to our liaison, Kimberly Lane.  They all truly appear to love their job.  Next was the color scheme and design features of the floors we visited.  The design feature input was made by the families and children who had to have a stay at the hospital.  Bright colors, balloons, and vibrantly colored floors and walls highlighted each floor and gave the appearance of no other hospital. 

The art room is another aspect that helped bring a new appreciation of what the children who stay at the hospital have to endure make this facility a special one.  The children can do art projects  to help them escape their current situation and help aid them in their healing process.  In addition to the art room are the playrooms they make available to the children so they can seek solace and “get away” from the hospital staff in a fun environment.

The hospital rooms offer as much privacy as possible and are designed with three separate sections – medical, patient and family areas.  They are designed to make the stay more comfortable for all involved.  There are also separate “family” areas as well as laundry facilities available so parents can remain close to their children while allowing them to get some time out of the hospital room.

The wall of encouragement is what had the biggest impact on me.  The wall features photos of former patients that told their story, what impacted them most about their stay at the hospital, what the current patients can do stay positive and lastly, who is their inspiration and why.  It was a very moving experience to read how these children coped with their conditions and made their stay a success to help the others become success stories as well.

All in all, it was a great experience and one that I am proud to be a part of by contributing a portion of each sale to CMN and encouraging our agents to do the same.  We highly encourage doing all that you can by helping support us in this cause – one visit to the hospital will get you hooked.  As discussed at our Quarterly Meeting in December, all of our Chili Cook-off donations will go to support CMN as well.  As we expand offices, we will be doing soup cook-offs, barbeque cook-offs and other cooking competitions to support this cause so please let us know your thoughts on how we can make these events even better and well attended.  Get it?  Got it?  Good!

Now, go sell something – so you can make a contribution!

You’ve got to do more to get more!

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Sales is a tough job, no doubt about it, especially today in real estate.  You hear, read and talk about with others that in the real estate business, it is a numbers game.  If you want more results, you have to do more activities, talk with more people, hold more open houses, make more calls, and basically, just do more to get more business.  While this is true, it is only partially true. 

You need to have quality contacts to truly have an impact on your bottom line.  You need to provide value to those you speak with and earn the business or else your bottom line won’t change.  You must engage others buy asking about them, their families, their business, etc. and take an interest in them before you talk about you – basic relationship building. 

In addition, it is not just enough to say you are in real estate and business is unbelievable, you need to have an “elevator speech” about the services you provide, the information you share, and how you are different than others in the business.  If you don’t, why would your business increase?  Holding more open houses, knocking on doors, calling more FSBO’s or expired listings won’t get it done – you need to build relationships.  You need to add value to those you speak with to earn their trust and in turn, you will get the opportunity to grow your business through referrals. 

You need to know what is impacting our business and how that is impacting both buyers and sellers today.  Yes, today because the real estate market changes virtually daily.  How are property values and why is now a good time to buy and conversely, why it is a good time to sell.  How do the low rates effect payments at loan amounts of $250,000, $300,000 or $500,000 and what is the difference if rates go up 1%?  What are house values in your neighborhood, your town, and county for all categories of houses – condos, townhouses, and single family homes?  How many properties are for sale?  What are the month’s supply of houses and what does this mean?  Is it a buyer’s or seller’s market?   What price ranges are hot, who is buying in those price ranges and why?  How is the rental market locally?  How are their prices?  What is their month’s supply?  If you had the answers to these questions, do you believe you would be perceived as an expert by those you encountered and hence, obtain more business? 

You have to know the real estate business, the numbers and the trends.  Where is the market headed and why?  Give your opinion and be able to back it up with facts.  Watch videos, read blogs, read newsletters, network with others in our industry and absorb what they are saying and develop your conversation strategy based upon what you have learned to earn more business.

As previously mentioned, you need to increase your activities but you also need to improve the quality of your conversations.  You need to become an expert in the business.  If you only increase your activities or only gain knowledge and don’t share it with others, you won’t have the same business building results if you do them in concert with each other.  Get it?  Got it?  Good!

Now, go sell something!

Control your destiny or someone else will!

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You are in control of yourself, your life and all that you do in it.  How do you move past the current situation you are in today?  Get educated – learn all you can about your industry or one you want be a part of and become the expert.   It doesn’t take much.  Read for one hour per day in the field you wish to learn.  One hour per day turns into one book per week.  One book per week becomes 52 in one year.  You tell me if you read 52 books on one subject and can’t become an expert, I will tell you, you are wrong.  Most people don’t read one book in a year.  Learn what you have read and apply it to the real world situations you encounter.

Those who know and do more than others in any walk of life earn more respect, get more recognition and go further in their careers.  And, guess what?  They earn more money.  If you want to change where you are in life, you need to change your attitude and regain control of your thoughts, desires and where you want to be.  As the saying goes, “if it is to be, it is up to me”.   So become positive and optimistic.  There are so many negative people in the world and there is so much negative press on the television, in newspapers, etc. and they all want company.  My advice is to avoid these people.  Look at every opportunity as a learning experience and as an opportunity.  Not a problem.  Become solution oriented and you will get results and become even more optimistic and positive.  If you smile more – this too will help you so start with this simple task!  Hang around positive forward thinking people and learn how they handle situations and remain optimistic.  It is a learned skill – teach it to yourself.

Stop blaming others, the economy, the industry you are in, the government or any other excuse.  You determine where you end up in life.  There are countless numbers of people whom have come from every walk in life with every opportunity presented to them and it is the ones who take advantage of what is presented and makes the most of the experiences that gains the most from them.

Other people get tired of hearing negative responses to everything said or about everything that happens around them.  Take the time to figure it out for yourself.  Do something about your current situation.  Don’t be a victim and become a success story and share your story with others.  Life is a contact sport, become a part of it and direct yourself to where you want to go and reap the rewards.

Again, you control your destiny.  Make the most of your time – do what makes you the most productive, consistently and you will get results.  Get it?  Got it?  Good!

Now, go sell something!

What’s up with Gateway? News from our Quarterly Meeting

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The Lorton office is progressing quite nicely – we should be officially open the week of the 10th along with the help of the county.  Feel free to stop by anytime for a visit as we are getting settled in with the technology, and finishing touches.  Hope to see you there soon!  Since this time, we have received our Occupancy Permit – great job to Brett for seeing this difficult process all the way to fruition – it was extremely frustrating and tenuous.

We have a great opportunity to potentially sublease some of our space in Chantilly.  The landlord has a need for the space coupled with KHov’s desire to give up some space so if you see activity over the next month or so, you will know what is happening.  In addition to relinquishing some space, we will be extending our lease for an additional 10 years.

For those of you unfamiliar with the changes at RE/MAX, RE/MAX has changed their name to RE/MAX, LLC.  What does this mean to you?  It puts our Independent Contract Agreements out of date.  In addition, it refers to RSN which is now RE/MAX University, it references Web Roster which is now on Mainstreet and some other minor changes.  Therefore, we have a 3 page revised agreement that we need you to sign to bring us into compliance with the headquarter company.  Kate will be sending out the agreements for you to sign – please do so at your earliest convenience.  Thanks!

The free trip to Vegas is moving along nicely for some – not so much for others!  Joe Doman is in the point standings lead as he has participated in the most trainings, charity events, etc. so far.  You still have time to catch up as the contest doesn’t end until the end of the year.  For more details on how you can get to Vegas on us, please let me know!

Please remember to sign your paperwork on listings and buyer agreements!!  As is the case every quarter, we need to discuss paperwork.  Please be compliant so we don’t need to have this covered next meeting!

We are putting together bowling teams for RPAC for each of the offices.  Please let us know if you can make it out on the 16th of June to Bowl America at Fairfax Circle. We’d love to see you there!

Gary Plaag of Couragio Consulting helped us all tremendously with our presentations thanks to Kathy Worek giving Gary her listing presentation.  We were all amused and educated at the same time.  For more details on how Gary can help you get better results, call him at 703-858-6162.

Now, go sell something!

 

Who really knows if the price is right?

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Price 

If you follow real estate at all, you know that there are 3 pricing indexes that get quoted fairly regularly – S&P Case Shiller, FHFA, and Corelogic HPI.  Are they good for tracking home prices as a buyer or seller?  My belief is no – a professional Realtor is your best option.  All of these indices are flawed from what they track, to the timeframe in which they use to track data, to what their data sources encompass, to how much weight is given to price points and to what areas are used to gain their pricing policies.  Why is this important to know you may ask?  Well, it is where your clients, sphere, and potential clients hear in the media about housing prices.  You need to be able to speak intelligently about them and convey the true story about housing prices.  By doing so, you will position yourself as a trusted resource in real estate by providing value to those whom you know.  Now, let’s take a closer look at each pricing model so you can give the right advice when you are helping a client buy or sell a house.

Here is what you may not realize about the S&P/Case Shiller Home Price Index:

  • The index was developed for Wall Street to hedge the housing market, not as a monthly consumer metric
  • Based on a 3 month moving window of closed sales which washes out the annual seasons in housing
  • Lags contract signing dates by 5-7 months
    • Translation:  Q1 2011 report = Q3 2010 Contracts
    • Based on prices, not sales activity where sales activity may be trending
    • Comprised on single family sales only.  Excludes: condos, co-ops and new development sales
    • Only represents 20 cities nationwide
    • Washington DC covers a large area of which includes:
      • Calvert, MD
      • Charles, MD;
      • Frederick, MD
      • Clarke, VA
      • But these areas also included:
        • Warren, VA
        • Jefferson, WV

This is NOT what most readers of the Washington, DC data understand the coverage area to be.

The CSI reported with a two-month lag and is based on three months of data.

  • For example, data released in January 2011 was for the three months ended November 2010 (November, October, and September 2010).

 Understanding the FHFA HPI:

  • The House Price Index is based on transactions involving conforming, conventional mortgages purchased or securitized by Fannie Mae or Freddie Mac – only. All mortgage transactions on single-family properties are included – refinances included but no condos, coops or multifamily are considered.
  • Conventional mortgages are those that are neither insured nor guaranteed by the FHA, VA or other federal government entities.
  • The HPI is a weighted, repeat-sales index, meaning that it measures average price changes in repeat sales or refinancing on the same properties.
  • A full release is provided every three months – not exactly timely.
  • The HPI includes indexes for all nine Census Divisions, the 50 states and the District of Columbia.

The best of the rest – CoreLogic.

The CoreLogic HPI provides a multi-tier market evaluation based on price, time between sales, property type, loan type (conforming vs. nonconforming), and distressed sales.  The CoreLogic HPI is a repeat-sales index that tracks increases and decreases in sales prices for the same homes over time, which provides a more accurate “constant-quality” view of pricing trends than basing analysis on all home sales. The CoreLogic HPI provides the most comprehensive set of a monthly home price indices and median sales prices available covering

  • 6,507 ZIP codes -  58 percent of total U.S. population
  • 611 Core Based Statistical Areas -  86 percent of total U.S. population
  • 1,119 counties -  83 percent of total U.S. population and
  • Located in all 50 states and the District of Columbia.

 The CoreLogic HPI is published on approximately a 5 week lag from the end of the data collection period.

How does the FHFA HPI differ from the S&P/Case-Shiller Home Price indexes?

  • The S&P/Case-Shiller indexes only use purchase prices in index calibration, while the all-transactions FHFA HPI also includes refinance appraisals.
  • FHFA’s valuation data are derived from conforming, conventional mortgages provided by Fannie Mae and Freddie Mac. The S&P/Case-Shiller indexes use information obtained from county assessor and recorder offices.
  • The S&P/Case-Shiller indexes are value-weighted, meaning that price trends for more expensive homes have greater influence on estimated price changes than other homes. FHA’s index weights price trends equally for all properties.
  • The geographic coverage of the indexes differs. The S&P/Case-Shiller National Home Price Index, for example, does not have valuation data from 13 states. FHA’s U.S. index is calculated using data from all states.

As you can see, it is nowhere near how we value properties but it is where most of Americans get the idea of housing values.  We have more accurate, up-to-date information that we can provide clients.  Let your clients know why these indexes are made available – CSI, for Wall Street and hedge funds;  FHFA HPI, to track valuations on Freddie and Fannie products to assess risk;  and lastly, CoreLogic’s HPI, for banks to assess risk when lending money.  None of them are used to determine the value of a home when selling or buying – let others know the facts and become a source for valuable real estate information.  Get it?  Got it?  Good!

Now, go sell something!

Awesome Top Producer Panel

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**TOP PRODUCER PANEL**

Peter Knapp’s Comments

Subscribe to the 4 P’s

  • Persistence
  • Purpose
  • Perspective
  • Patience
  • Reminding yourself “why”
  • Why are you in the business?  Providing for family
  • The idea of “you signed up for it”
  • Available 24/7
  • It’s your job so do you best
  • Embracing the profession
  • Be responsive
  • Separating yourself from the transaction
  • Don’t be emotional – Be honest
  • Emotions
  • Separate yourself from the transaction – Don’t take personally
  • Creating quality of life
  • Servant mentality
  • serve all the time
  • Outworking people – some people are smarter but no one will outwork me
  • And common sense
  • Each transaction, you are working for more than one sale
  • By servicing everyone they will refer you.
  • Every client is the only client
  • Have people say  – I thought I was the only client you were helping
  • Do Charity events as client events
  • Address previous hurdles with clients in initial interview to minimize problems down the road

 **Tom Connor’s comments

Peter’s list was on target – he didn’t miss a beat!

It is important to block time off.

Spend majority of time on lead generation – Most Agents don’t do this.

Manage Team like a business – presentations, systems, and processes are important.

Website built with lead generation – on Back office – Real Pro Systems

Discuss business and an Agent’s productivity with buyers and sellers so they understand how hard you work and what your results are versus the “standard/average” agent.

Be responsive

Be communicative

Develop online biz but understand it is hard – lots of rejection – must be persistent

Read Book “Work for a Reason”

John Rumcik – ‘RUM’ –No Team – leverage company events with sphere to show you are involved in the community and give back to charities.

  • Hard work has no substitute
  • Work 100% by referral
  • BNI is great – members & clients are referring because of high level of service
  • Tons of referrals
  • Work outside the box
  • Don’t say “no” if it’s legal & ethical – yes, I will try for you is the right answer
  • Advertise on Craigslist to help military for free on rentals and your email will blow up.
  • Nothing is below me
    • BPOs and rentals pay RE/MAX expenses – no deal is to small or beneath me to provide my clients
    • BPOs help with knowing valuations
    • Sell clients for the future 

What are your motivations and how do you stay accountable?

Rum – Motivated by money

  • Has business plan
  • Has goals

Peter – Meets with Scott

  • His “why” of why he’s in the business

Tom – Incoming bills – money

  • Drive from within:  either you have it or you don’t.

Just a few more thoughts…

Do the little things and they will eventually add up to something big – rentals, BPOs, etc.

This job is mental →

Never be satisfied with success – always strive for more.

And we had the market update…

From DSNEWS.com  

Foreclosure Sales in Q1 = 158,434 – Altogether, third parties purchased a total of 158,434 bank-owned and short sale homes during the first three months of this year.  That’s down 16% from the previous quarter’s total and down 36% from the first quarter of 2010.

…REOs that sold in the first quarter had been repossessed by the bank an average of 176 days prior to the sale…

…Sales of bank-owned homes and those in some stage of foreclosure accounted for 28 percent of all U.S. residential sales in the first quarter of 2011 – in our area is was 30%, the highest percentage since the first quarter of 2010.”

…California and Arizona, foreclosure sales accounted for 45% of all residential home sales during the first quarter – in Vegas it was 53%.

…Residential home prices slipped 2.5% during the first quarter of this year when compared to the previous quarter…Our area sales prices are up 5.84% – an 8.24% difference.  We are lucky to be where we are today in regards to home sales and pricing!

From Builderonline.com

Foreclosures Continue to Take Toll on Pricing…only 20% of the 1.2 million homes in some stage of foreclosure have hit the markets – how is this going to affect prices?  In addition, over 4,000,000 are behind/in default on their mortgages.

From Realtor.org – Today’s REALTOR:  older and more experienced

Sales agents report $25k median net income in 2010. How much did you or your Realtor earn last year?  Experience=money – you better ask!

The typical REALTOR of today is older and has more experience than the typical REALTOR on year ago, according to the national Association of REALTORS’ 2011 Member Profile.  The average age is 56.

NAR had 1.01 million members.

Only 12% of REALTORS under 40, half are between 40 and 59, and 38% are age 60 or older. Only 6% of REALTORS said real estate was their first career. By comparison, homebuyers had a median age of 39 in 2010.  Get in tune with your buyers!

8% did not complete a single transaction in 2010, down from 12% in both 2009 and 2008.  I believe this number is very suspect…

Real estate was the sole occupation for 75% of REALTORS…

From DAILY REAL ESTATE NEWS

 New-home sales see monthly rise in April

Sales of new, single-family homes saw a monthly rise in April, the U.S. Census Bureau and Department of Housing and Urban Development reported today.

New Home Sales increased an estimated 7.3% in April compared with March and it is 29.2% above the rate in February, when such sales hit an all-time low.

The median sales price of a new homes rose 4.6% year-over-year in April, to $217,900.  Builder’s homes are priced right that is why they are selling and they are seeing price increase.

From WASHINGTON BUSINESS JOURNAL

 Rates fall for sixth straight week – what a great time to buy!  Rates are down and prices are up.  Time to get in now before both are too far out of reach!

 HOUSING DATA

Last May versus this May – week 4

                                                                2010                                                       2011

Active homes for sale                                7,428                                                     7,516

Month’s supply  of u/c                              2.1                                                          2.1

Settlements last 30 days                           3162                                                       2598

Month’s supply of solds last 30                  2.3                                                         2.9

Percent of market that is distress inventory      15.2

We are in a very similar situation to last May – pretty crazy!  As usual, we had a great training that shared a lot of information.  Be sure to see video footage at www.youtube.com/scottmacdonald5 to hear more!  Get it?  Got it?  Good!

Now, go sell something!

Help! Don’t allow Congress to hinder housing recovery!

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The Northern Virginia Real Estate market continues on it strong pace but there is legislation that can bring this to an end – and fast.  The legislation is known as Qualified Residential Mortgages.  NAR believes Congress intended to create a broad QRM exemption. Evidence shows that responsible lending standards and ensuring a borrower’s ability to repay have the greatest impact on reducing lender risk, not high down payments. Proposals that require high down payments will drive more borrowers to FHA, increase costs for borrowers by raising interest rates and fees, and effectively price many eligible borrowers out of the housing market.

A provision in the Dodd-Frank Act requires that financial institutions retain 5% of the risk on loans they securitize. The purpose is to discourage excessive risk taking and create strong incentives for responsible lending and borrowing.

Congress came up with the QRM concept to ensure that banks were only putting up ‘safe’ loans for securitization. NAR supports this goal, but in practice, regulators have come up with draconian parameters for what constitutes a QRM.

NAR feels this will not only affect buyers, but would also affect the ability of home owners to sell their homes, since there would be fewer buyers who could qualify for home ownership.

NAR wants federal regulators to honor Congressional intent by crafting a QRM exemption that includes a wide variety of traditionally safe, well underwritten products such as 30-, 15-, and 10-year fixed-rate loans; 7-1 and 5-1 ARMs; and loans with down payments in the 5% to 20% range with PMI, where required, and with other features found in low-risk loans such as no prepayment penalties or balloon.  Implementing a new rule requiring a twenty percent or higher down-payments would stop the housing recovery in its tracks and we can’t have this happen to our fragile recovery in the housing sector.  Please contact your elected officials today and have them stop this in its tracks.  If you are interested in receiving a letter to forward on, please let me know.

 

I would like to thank NAR for allowing me to take their words and post this for you.

 

Now, go sell something!