Real estate

Now is the Time…

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Now is the time for innovation and creativity.  As our market continues to change it is even
more critical to look at how you are running your business and determine where
you are getting results.  Additionally,
you should look at others and see how they are getting results.  Analysis of your business as well as your
competition’s should be an ongoing practice for you to grow and thrive in any
market.

Areas that you should be considering are:  How are you marketing?  How are you expanding your database?  How are you attracting new business?  How can you grow your business?  Are you educating yourself? Let’s review
different options.

From a marketing perspective, have you embraced social
media?  What are you doing to use this
venue to market yourself, your listings and obtain new business?  What are other venues that are available to
get you results?  Do you utilize drip
marketing campaigns to your sphere and new additions to your database?  Are you offering seminars to your clients and
the public?  Seminars you ask? Yes – home
buyer seminars, tax credit seminars, now – move up buyer seminars, investor
seminars, short sale seminars, and there can be more – innovate and create!

How are you expanding your database?  Are you working business to business avenues
to grow your database?  Are you involved
in BNI or other business development groups?  Are you involved in associations such as
alumni, exotic cars or other areas of interest you may share with others?  Do you have the ability to invite people to
subscribe to your website to get market updates like Listingbook offers?  Are you giving back to the community?  Are you involved in a charity?  Have you started a food drive, coat drive,
book drive, or Toys for Tots campaign to help others…get creative and get in
front of others to grow your database!

How are you attracting new business?  We spoke about seminars in the marketing
section but have you offered anything else “free”?  Educate yourself and then educate others.  Also, think of other avenues to create
opportunities for yourself.  Offer a free
home warranty when you buy or sell a home through you or your team, offer free
staging when you are utilized to sell a house, or a free home energy analysis
to your sphere or anyone they know, or anything else like this you can think of
to make your phone ring?  What if you
offered a reduced commission when you sell your home and buy a new one through
you type of marketing campaign?  Get the
word out on what you are doing to get new business – it is out there but you
have to go get it – it won’t come to you!

How is your business growing?  Have you considered starting a team?  Have you thought about merging with another
team or perhaps acquiring one?  There is
a lot of talent out there just needs direction to be successful in this
market.  Do you have systems and
processes in place that can help others grow? 
Are you generating leads that you can’t handle?  Start a referral network if you are in this
situation – don’t lose these extra opportunities.  Are you partnering with your vendor partners
or business associates to offer incentives to your clients and theirs to create
new opportunities?  Are you writing
reverse testimonials for each other?  Are
you looking of opportunities in the market to grow your business in this
way? 

Are you educating yourself? 
If so, how?  Are you obtaining
designations?  Many agents put their head
in the sand and say they won’t do short sales or foreclosures.  Well, they are here to stay and will be for
the next few years so get a designation such as CDRS so you can handle them more
effectively and efficiently and to learn more about the process to determine if
you should work with the agent on the other side of the transaction.  As the world gravitates towards social media,
perhaps you should earn your E-Pro
Certification Designation.  If you have
always been a listing agent and you see the benefit of working buyers or you
see the first time buyer market as a viable market for you – get your ABR.  Are you attending seminars?  If you attend seminars – are they varied or
are you only going to hear one speaker? 
Are you reading publications, blogs, attending conventions, trainings,
mastermind groups, etc or are you just maintaining the status quo as far as
your educational development is concerned? 
The best way to innovation is through education.

As you can see, if you are creative or innovative, you can
come up with ideas that are better than these or expand on the ones
presented.  You need to take the time to
analyze opportunities that are out there. 
Also, speak with other industry leaders in the business and see what
they are doing or what they hear others are doing to grow their database,
market themselves and their teams, how they are attracting business and growing
their business.  Also, conduct your own
research on line, read publications, attend your Realtor association events,
attend builder events, etc. to learn more about your competition and how they
are growing or more importantly, not growing in today’s market.  Basically do something!  Get it? 
Got it?  Good!

Now, go sell something!

 

A Perfect Storm

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I was
recently interviewed for the Washington Examiner newspaper about the extension of the tax credit of home
buyers – here is a synopsis of our discussion:

 

The
extension of the home buyer tax credit will definitely spur housing sales and
here’s why.  It brings into play move up buyers as well as extends the
first time buyer credit.  On the move up buyer side, you have to have
owned and lived in your principal residence 5 consecutive years out of the last
8 years to qualify but it will bring “new” buyers into our market place. 
Over the last year, we have seen little move up buyers as a result of lost
equity; uncertainty of perceived value in the market as a result of
foreclosures and short sales, and consumer confidence has been low because of
reports on unemployment and news on the recession.  Therefore, our market
has been primarily first time buyers and investors with a few relocation buyers
and even fewer move up buyers thrown into the mix.  It is a matter of
education on the REALTOR’s part as well as the media to get the word out on to
our move up market on what an advantage this is to them and why they should
jump on this tax credit.  We have a perfect storm for buying real estate
right now – the tax credit, historically low rates, and prices are affordable
in many areas – especially in the move up buyer price range.  There are a
few restrictions that apply but not many.  The purchase of the new home
must be a principal residence that would qualify for the capital gain tax
exclusion of $250,000 for singles and $500,000 for married people
definition;  the purchaser’s income cannot exceed $125,000 for individuals
and $225,000 for a couple filing jointly on their tax returns; the home’s
purchase price cannot exceed $800,000 and the tax credit is equal to 10% of the
purchase price up to $6,500; you cannot purchase the new residence from a
family member;  the tax may have to be repaid if you sell the acquired
property or cease to use it as your principal residence in less than three
years of acquiring the property; and lastly, it is for contracts written
between November 9, 2009 and April 30, 2010 that must close by June 30,
2010.  The contract and settlement dates will also help builders or people
who wish to build on land they already own if people react quickly as most
builders don’t have inventory/spec houses available and the typical timeframe
to build locally is 4 – 6 months.

 

The
extension of the first time buyer tax credit has been modified slightly but it
is for the better.  The main difference of the previous tax credit and the
new one is the income qualifications – they have been increased to $125,000 for
singles and $225,000 for married couples.  The tax credit is 10% of the
purchase price up to $8,000 so it applies to homes purchased up to
$800,000.  The tax credit applies to homes that are purchased between
January 1, 2009 and April 30, 2010 and they too must settle by June 30,
2010.  There is no repayment of the credit unless you sell with three years
or cease to use the property as your principal residence within the three year
time frame.  If you purchase in DC, you can only use the tax credit and
cannot piggy back the with the District’s first time buyer tax credit –
sorry!  As a clarification, a first time buyer is anyone – including
spouses – who have not owned a principal residence in the previous 3 years.

 

In both
instances, buyers may claim their credit on their tax returns by filling out
IRS form 5405 and documenting the appropriate deductible amount on line 69 of
the 1040 for 2009 tax returns or line 67 for 2008 tax returns.  They must
also provide a copy of the HUD – 1 form proving the completed purchase within
the appropriate timeframes allotted by the guidelines.  Additionally, the
homes purchased must be a principal residence and do not apply to investment
properties or second homes.

 

Today,
our biggest challenge is inventory.  As an example, inventory levels of
existing homes are down 57% from the same week last year in Northern
Virginia.  Our inventory levels are at April/May of 2005
levels– lots of buyers and not many homes to choose from make buying a home
tough in today’s market.  The reasons for the number of buyers in the
market match the aforementioned perfect storm for home buying – the tax credit,
low rates, and affordable housing prices.  We expect the credit to
continue to encourage buyers to enter the housing market through the extension
dates, then the typical spring market should take hold and the housing industry
will help carry us further out of the recession if conditions remain
stable.  There are questions lurking on the horizon in the housing market
that question stability – not everything may be so rosy.  The uncertainty
is over; rate constancy after the government purchasing of mortgage backed
securities ends at the end of March, 2010 and housing prices being suppressed
by the implementation of the HVCC and lastly, the effect of foreclosures moving
forward on housing prices.

 

It is our
job to get the word out and help our clients take advantage of this
unprecedented opportunity.  Get it?  Got it? 
Good!

 

Now, go
sell something!

Where are we today in Residential Real Estate?

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Existing home sales were up 10% in October over last year’s
sales pace.  Why?  One of the main reasons is that prices are
down.   In many price points and
locations, prices are slowly increasing but in others, they continue to
fall.  In a recent poll by Zillow, home owners responded to a question
asking about their property values…here are their answers:  26% thought their property values went
up;  25% thought their value had remained
unchanged and 49% thought their values went down.  Well, the truth of the matter is that 72% of
the country has lost value in their homes this year and only 18% had seen an
increase.  Unfortunately, as we all know,
perception isn’t reality – too bad for us. 
Why are we having value issues? 
As we have discussed in the past, a lot of the problems stem from the
Home Valuation Code of Conduct and the ramifications it has had on our
appraisals lately – let’s hope this gets reversed soon!  Another reason for the increase in sales is
interest rates.  Rates are at historic
lows and have been for several months. And lastly, the first time home buyer tax credit and the subsequent
extension has generated additional sales. 
The extension of the credit also includes a component where home owners
who have been in their principal residence greater than 5 years can sell and
move into another principal residence and receive a $6,500 tax credit under
certain conditions.  See the link above
for additional details.

So, you ask, what does this mean to me?  Well, you need to get busy finding first time
buyers and move up buyers who have been in their homes for more than 5 years!  You need to become proactive and seek out
people wanting to be educated on the market and take advantage of the
opportunity available to them.  Why?  If you aren’t being proactive and you are
sitting back waiting for people to come to you or you are lucky enough to be in
the situation where you are taking orders – like many did from 2003-2006 – you
will be out of business in 2011!  History
repeats itself as we all know.  Don’t sit
back and wait for it to happen – make it happen.  Get it? 
Got it?  Good!

Now, go sell something!

Numbers, Short Sales and Taxation…oh my!!!

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ScottsCam 001

Wow!  Lots of great info was shared today at training
– numbers, top ten questions ready to be answered, short sales in any market
and then Aronson & Company notes on taxation of debt forgiveness.

 

Numbers (in Northern Virginia)

 

  • Active (Sales)                                      5414
  • Vacant                                                 1597
  • % of Market                                         29.5%
  • Month Supply (For Sale)                      1.8
  • Month Supply (For Rent)                     2.2
  • Month Supply Sold                              2.1

 

 

Top Ten Questions – ready
to be answered!

 

  1. Is the housing market getting better?
  2. When will housing bottom out?
  3. What signals should I watch to determine
    whether my local market is improving?
  4. How can I figure out the value of my home?
  5. Does it matter whether I’m ‘under water’?
  6. If I lose my home to foreclosure, how long
    will it take to repair my credit record?
  7. If I’m renting, is now a good time to buy a
    house?
  8. Can I get a tax credit if I buy a home now?
  9. Can I get a mortgage on attractive terms?
  10. Should I invest in foreclosed homes?

 

 

Aronson & Company
Notes

 

·       
Cancellation
of debt is a taxable event

·       
Bankruptcy
does protect from tax liability from a tax liability that occurred prior to
bankruptcy.

·       
Deed in Lieu
of Foreclosure – similar to short sale – selling to third party with bank’s
approval. 

·       
Loan
Modifications can also result in cancellation of debt and the modifier may
receive a 1099 from the lender – be aware this is could possibly happen!

·       
The discharge
of acquisition debt secured by the taxpayer’s principal residence is excluded
from income up to $2,000,000 until December 31, 2012.  This date is subject to change.


For a complete chart of
the implications of the Taxation of Debt Forgiveness handout we received call
or email me and we will get it to you. 
As is always the case – you learn more by listening, taking notes and
reading the materials than you do by reading my synopsis – get to training
yourself to internalize it more!  Get
it?  Got it?  Good!

 

Now, go sell something!

Determine Your Good to Great Moment!

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Our Accelerent meeting
featured another outstanding speaker Don Yaeger
– the former editor of Sports
Illustrated.  In over hundreds of
interviews and encounters with athletes over the years he developed his 16
Consistent Characteristics of Greatness.

Don-headshot_web

 

Qualities that those who
demonstrate greatness possess

  • Hate losing more then love winning
  • No excuses. 
    Excuses keep you from going from good to great.  Basically make it happen.  Determine
    what is your good to great moment!      

 

Three themes of Greatness

  1. Greatness is a process – no one is born
    great.  You must work at it
    consistently and persistently.
  2. Not one single characteristic requires
    physical skills; you must be mentally, emotionally and spiritually
    disciplined.
  3. Great ones understand they are not perfect – they
    must continually work to get it done.

 

Other
thoughts that were shared

  • Get help if you need it – never too big never
    too small.
  • Something will happen that will affect your
    life – it is destine to happen – will you be better or bitter?  Use adversity as the fuel to motivate
    yourself – this is your inner fire! 
  • Value education

 

If you can’t change the people
around you, change the people you are around – seek to get better!

 

Determine what you will
get out of every situation you are in – yearn to learn! 

 

So here are the 16 Consistent Characteristics of Greatness

 

How They Think

  1. It’s Personal – They hate to lose more then
    they love to win.
  2. Rubbing Elbows – They understand the value of
    association.
  3. Believe – They have faith in a higher power.
  4. Contagious Enthusiasm – They are positive
    thinkers…They are enthusiastic…and that enthusiasm rubs off. 

 

How They Prepare

  1. Hope for the Best, But…They prepare for all
    possibilities before they step on the field.
  2. What Off-Season?  They are always working towards the next
    game…The goal is what’s ahead, and there’s always something ahead.
  3. Visualize Victory – They see victory before the
    game begins
  4. Inner Fire – They use adversity as fuel

 

How They Work

  1. Ice in Their Veins – They are risk-takers and
    don’t fear making a mistake.
  2. When All Else Fails – They know how and when to adjust their game plan.
  3. Ultimate Teammate – They will assume whatever
    role is necessary for the team to win.
  4. Not Just About the Benjamins – They don’t play
    just for the money.

 

How They Live

  1. Do Unto Others – They know character is
    defined by how they treat those who cannot help them.
  2. When no one is watching – They are comfortable
    in the mirror…They live their life with integrity.
  3. When Everyone is Watching – They embrace the
    idea of being a role model.
  4. Records are Made to be Broken – They know
    their legacy isn’t what they did on the field.  They are well-rounded. 

November Listing Exchange

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Listing Exchange 004

We are experiencing short sale success!  One agent got a short sale approved with
clients being current on their mortgage, another one was approved in 3.5 weeks,
many are being approved with the commission negotiated with the sellers, and
one agent got one approved while sitting in the exchange – 6 months after
submission but it was still approved. 
Bank of America is now retaining the right to pursue a deficiency
judgment and letting the seller know that the MI Company may also pursue the
deficiency.  More banks may follow suit –
stay tuned!

Inventory is dropping all over Northern Virginia and the
market continues to be extremely price sensitive.  A home was listed at $275,000 received 3
contracts and the price was escalated up to $300,000 and appraised close to the
sales price.  As luck would have it, the
loan was denied due to fraudulent tax returns being submitted.  Property was relisted for $300,000 because of
the appraisal and 27 showings occurred with no contracts in 2.5 weeks so price
was reduced to $275,000 and two offers are coming in – price properties
correctly and they will sell.

At a recent Buffini
conference he noted:  in 2010 be a Go
Getter or be a Go Goner;   Be a stay
puter and be a bankrupter;  be a do
nothinger and be an out of the businesser! 
What are you going to be next year?

4 million foreclosures expected in 2010 – filings are
slowing down after 6 consecutive months of increases in foreclosure filings.        

Rates are at near low rates for the year.  MBS being purchased by the government will
stop in March – what will happen to rates? 
Who will be a buyer of mortgages at that time?  Right now, we are in a high 4’s market will
probably be in a high 5’s market now.  Again,
now is the time to buy a house!

FHA has reserves of .5% because of demand on their
insurance…what will happen?  Will we need
higher down payments?  Will upfront
mortgage insurance be higher?

In a recent survey of buyers, they felt that on a scale of 1
– 10, 10 being difficult to obtain a loan, getting a loan today ranks as an
8.1.  Lenders are requiring more
paperwork, analyzing loans more and are more difficult to get through.

As most of us know, the tax credit has been
extended…but most REALTOR’s and lenders are not explaining it correctly.  Take advantage of the opportunity and explain
it to your clients and ask for new business!

Upcoming events:

Food Bank ends Friday – please contribute

December 4th is our Quarterly meeting featuring
Dave Stevens – please register!

Breakfast with Santa is December 5th in the
Chantilly office – invite all of your clients!

At our events, the education is great, the food is plentiful
and the networking is awesome – you need to attend.  Get it? 
Got it?  Good!

Now go sell
something!

Tips for Time Management

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I was recently interviewed for the NVAR
Update magazine about time management tips here is what was said!

First you must have goals – daily, weekly, monthly and
yearly.  We have an exercise where you
take a chart, put 5 year goals, 3 year goals, 1 year goals, 270 day, 180 day,
90 day, 60 day and 30 day goals and work backwards  to determine what steps  you need to take to accomplish them within
the timeframe set for yourself. 

Schedule these activities on your calendar and prioritize
them so you work effectively throughout the day.  Also, make sure you schedule family time; fun
time and friend time into your calendar to give you balance in your life.   Treat these activities as appointments like
any other appointment.

When you are at work – work – don’t waste time socializing
or hang around with others that do.  Be
focused on your activities to ensure they get accomplished.

Create task lists to keep you on track for accomplishing
your goals.

On your schedule, have a complete understanding of the
timing of events – if you don’t know ask someone.  You should know how long it takes to get
places, how long your listing appointments should last, home inspections, etc.

Develop a routine in your schedule.  Set your schedule to do certain tasks at the
same time every day.  As an example:   prospect first thing in the morning, return
emails and phone calls next, visit properties, conduct showings and listing
appointments in the afternoons, etc. 
Make your schedule a habit and you will see results.

Close your door at the office to minimize distractions.

As a general rule, delegate. 
Stay focused on what you do best and delegate the rest of the activities
that are not revenue generating activities.

Have an agenda for meetings to keep on track and not waste
time by getting off topic.

Utilize tools such as phonetag and blackberries to handle
phone calls and emails.

It is more important today than ever before to get organized
to get ahead in the business.  Get
it?  Got it?  Good!

Now, go sell something!

It’s all about continuous improvement!

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Continuous improvement is a critical piece of the puzzle when putting together a successful career.  To be the best in any field, it requires practice, education, training/coaching and participation.  Let’s take a quick look at Tiger Woods.  Without question, he is the best in his field today.  Does he practice golf?  Does he study the golf course he is going to play and visualize each shot on the course?  Does he train and have a coach or multiple coaches? And does he go out and play or just sit back and watch?  I think we all know the answers to the questions.  If you want to be the best, why aren’t you doing what it takes?  Why do you only go half way?  Continuous improvement means you take risks, make mistakes and then learn and grow from those mistakes.

In order to determine where you need to improve, you must first analyze where you are today.  How is your business?  How are your marketing efforts?  What is your ideal client? How is your prospecting?  How is your follow up?  How are your results?  How is your knowledge of our business? How are your systems?  By careful, through thoughtful analysis of these areas, you can determine how, if you pay a little attention to what you can do to improve yourself and your business.

When looking at your business, are you working “on” your business or are you working “in” your business?  Do you study trends?  Meet with other industry experts?  Review and revise your business plan?  Do you educate yourself on what is currently happening in the marketplace?  Are you obtaining designations?  Are you involved in your association and hear different points of view on what is happening in the industry?  Do you have the right team members and are they in the right job to ensure your success?  Take a look and see where you can improve on your business.

Where are your marketing efforts, marketing dollars and time going and are you seeing results?  How do you know if you are getting results?  What tracking systems do you have in place?  Have you researched other advertising venues?  The question is – are you a secret agent?  Make yourself known in the market but do it wisely and inexpensively!

Have you determined who your ideal client is for you and your business?  Are you spending time or better yet, wasting time with people who don’t fit your profile?  If you are – why?  By working with those outside of your parameters can cause frustration, higher stress levels and drain your energy.  If people won’t help themselves, why should you help them?  Take the time to define your ideal client then spend your time finding and helping them.  You will be much happier and have more energy when working with them and your business will prosper.

We just hit on finding your ideal client so let’s review your prospecting strategies.  How are your sphere contacts?  How often are you communicating with them?  How are you communicating with them?  How are you building your database?  How broad is your database?  How are your networking skills?  Are you referring prior to asking to be referred?  Are you getting out in front of clients or are you hiding behind your desk either at home or in the office?

How do you measure results?  Is it number of leads?  Sales?  Hours worked?  Your pay per hour?  Have you analyzed and determined if you are getting the results you desire?

How is your education?  How is your knowledge of the contract?  The listing agreement?  Can you recite each paragraph and reference its number without having to see it?  Do you know what the right advice is to give your clients based upon how the contracts read?  What addendums are you using and are you intimately familiar with what they mean?  Are you obtaining designations in areas of our business that will help your clients buy and sell real estate in areas like distressed properties, green designations or with your Accredited Buyer Representation designation?  Are you attending training?  Seminars?  Are you building your educational base to help your clients?  You’ve got to learn more to earn more!

If you continuously improve in each of these areas – consistently – you will get results and obtain the success in our business you desire.  Get it?  Got it?  Good!

Now, go sell something!

Platinum Group – November

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PG1

Don’t wait to put houses on the market – multiple contracts
at $875,000 in Lansdowne – needs work but 7,500 sq ft on three levels – people
waiting in line to buy

Reasons to list today – you know what prices are today, you
know inventory levels, you know what  rates are today, buyers who are looking this
time of year are serious buyers

Where do you price properties and why – psychology of buyers
or internet strategies of being on the number for search engines – when market
is hot, it doesn’t matter – analyze DOM and number of showings in first week in
same area at same price

Agents continue to be agitated over short sales when
expectations are not set up front.  When
expectations are communicated from the beginning agents are easier to work
with…also, don’t burn bridges with agents who pester you – don’t blow off agent
because they are keeping your feet to the fire.

CDRS – America’s Home Rescue Short Sale process is the
program to work with when dealing with short sales

Write addendum to contract outlining your process for
handling the short sales – communication the time frame, your communication
frequency and type, who communication is with and when and why then have buyer
sign.  Are you committed?  Are you sure this is the right house for
you?  Are you prepared for the process to
take several months?  Will you be ok with
not hearing from me, as the listing agent for sometimes weeks at a time?

The foreclosure report: 
sense from Kent Eley and Fannie Mae is 2nd quarter of
2010.  Administration is trying to be
gentler on folks and not kicking them out in winter and around holidays as well
as push loan modifications.  Also, money
given in stimulus package, banks were told not to foreclose by try and work the
loans out.  Other agents feel that it is
the ignorance of the bank and no one moving fast enough because no one is
giving them direction on what to do as banks are overwhelmed.

Is anyone specifically marketing to get move up buyers into
the market?  What are you doing to get
the word out because most people don’t know or understand what was in the
extension.  Email campaigns, newsletters,
phone calls – just do it. 

Quick analysis: 
Market on upswing, foreclosures coming in second quarter, MBS are going
to stop being purchased by the government in March, tax credit ends on April 30th
even though you have to close by June 30th – therefore you will make
a majority of your money in the first quarter of next year and you need to get
busy today to take advantage of the future market.

What happens to Fannie and Freddie moving forward?  Who will absorb the secondary market funds?

PG2

Answering the ‘Not So Simple Questions’

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I was recently asked by an old friend, an innocent question
in his mind I am sure but as you can see from my answer it is anything but a
simple question.  He asked, “How will the
market be in the spring?”. 

Here is the response: 

You ask an interesting question which requires me to pull
out my crystal ball.  Here goes my best
guess.  There is a lot of uncertainty of
what can happen in the spring.  There is
speculation that the extension
of the Tax Credit will pass and be offered to all buyers (with
restrictions) through April 30th, then reduce quarterly through the end of the
year until it is gone.  This measure will
help sustain momentum that we currently have in the market – especially in the
under $400,000 market.  In all likelihood
it should pass this week.  This, as
previously mentioned will be good for our market. 

At this time we have very low inventory – it's down 54% from
this time last year.  It has been rumored
that foreclosures
will be released into the market by the banks – the question is, how many
are in NOVA and how will they be released? 
Slowly or just dumped.  If we have
a lot and they are released simultaneously, how far will prices fall?  We have seen the phenomenon of prices falling
with low supply and high demand – it is a true economic anomaly in my
opinion.  If they are released
strategically and are allowed to be absorbed by the market naturally, we will
continue to see a rebound price wise and have a healthier market.  Tying into this question is how soon will
they be released?  This supply and demand
aspect which is tied to pricing is also critical to the strength of new home
sales.  With the cost of land, builders
can’t build product and make money in many areas, they are “shut out” of being
able to build.  Until we see an increase
in prices, many builders will remain on the sidelines.  This carrot of foreclosures has been dangling
in front of us for about a year now. 
Stay tuned on this one as it may be a critical piece to our housing
recovery depending upon how it is handled.

Mortgage interest rates are low now but have slowly
increased upward the last few weeks. 
The government has committed to buy Mortgage Backed Securities through
next spring – to the tune of $1.2 trillion. 
Who will step up to buy these securities in the future?  If no one does, how high will rates go and
how quickly?  Additionally, it appears as
if we see the high loan limit of $729,750 stay at this level for our area, if
it doesn't, how drastically will it hurt the upper price points that are
already experiencing a slower market.

Right now, we have buyers looking for homes, we have low
inventory levels, low interest rates and loan programs to get buyers into
houses.  It is a great time to be in the
market.  Over the next few weeks, we will
see how things play out for the spring – beyond that will require a second
crystal ball.  Hope this helps!