Good News in Tough Times

Sometimes good news is hard to find in these tough economic times; however Tulsa area real estate values have actually increased. January 2009 average home prices increased 10.6% from January 2008. (January 2008 average price saw a slight decrease from January 2007.) Inventory levels, including the amount of new listings decreased; the available inventory for the month was 7,639 compared to 8,154 in January 2008. This means that fewer homes were available "for sale" throughout the month of January. With a strong buyers market, combined with nearly all-time low mortgage rates, now's the time to get a great deal on your dream home.

2008 YTD Numbers for Tulsa Housing Market Outperform National Averages

In 2008, amid what most consider the worst financial crisis of our time, Tulsa home values remained stable. The local 2008 YTD average price outperformed the national market. The Tulsa MSA average price YTD showed a slight increase from $146,354 in 2007 to $147,118 in 2008. Nationally, the average price of homes sold in 2008 fell 8.6%; it should also be noted that nationally the average price of $243,100 is almost $100,000 more than the local average of $147,118. GTAR noted that as one major strength of the local market; Tulsa has always had significantly lower prices than most of the country which allows buyers to get more house for their money.
Although prices have fallen nationally, lower prices are the stability of the local market. When other markets experienced rapid price increases, we remained steady at reasonable growth rates. The number of closed transactions in December 2008 were 3 fewer than that of a year ago; nationally, sales increased 6.5%.
The Greater Tulsa Association of REALTORS® (GTAR) statistics are published monthly by GTAR based on the Northeast Oklahoma Real Estate Services (NORES) multiple listing service data. The statistics are based on residential properties in the Tulsa MSA (Metropolitan Statistical Area), which is defined as a standard government based area. The Tulsa MSA currently includes seven counties: Tulsa, Creek, Osage, Rogers, Pawnee, Okmulgee, and Wagoner.

Do You Have A Home Inventory?

What's the best way to make the most of your insurance dollars and protect your belongings in case of an emergency or disaster?  Create a home inventory of everything you own.

According to the Insurance Information Institute, the home inventory will help you to:

• Purchase enough insurance to replace the items you own.
• Get insurance claims settled faster.
• Substantiate losses for income tax purposes.

To make the task easier, the Institute created "Know Your Stuff – Home Inventory Software" available as a free download at www.knowyourstuff.org.  The software lets you store digital photographs along with your list of possessions.  You can burn a copy of the information on a CD or print out a room-by-room document and store either in a safety deposit box or other secure location. Here's good advice:  Make it fun by getting the family involved.  Have your kids help out by opening closets and drawers and listing the contents.

Spring Clean - Tips that pay dividends

It's Spring, and the new listing inventory in Tulsa is on the rise. What can give you an edge in the face of this increasing competition? One of the first things to do before putting your house on the market is prepare your house for sale. Show your house off in its best light to maximize your earning potential. First, tour your house with the eye of a buyer to see what works, and what doesn't work.Does your house have curb appeal? Can you give it a little more pizzazz to draw the buyer in? Would a bit of touch-up paint add dollars to the sale? What about the garden? Is the lawn in order and neatly edged? Are trees and bushes neatly pruned? Are flowers in bloom? If not, it may be time for a garden upgrade. Adding colorful annuals to the front garden will make a big difference.As you walk in the door of your house, ask yourself, "Will this house say, 'Welcome home' to a buyer?" Through the eyes of a buyer, look for the changes that will enhance sales appeal.Eliminate anything that gives the appearance of clutter. Countertops should be free and clear. Knickknacks, souvenirs, family photos, refrigerator artwork - it's gone. We need to "de-personalize" the house so buyers can imagine it as their home.Closets and cupboards should appear large and roomy. It's time to make a donation to a Tulsa charity or store belongings at a friend's or family member's home. Reviewing your home room-by-room, look for the pieces of furniture that should be removed, rooms that need new paint, carpet that needs to be changed, fixtures that need polishing, windows that need cleaning, and any other improvement that can easily be made to promote the sale.Before the first buyer walks in your door, I'll can show you how to set the stage. We want to engage the buyer's senses. Lighting is critical. We'll draw back curtains, open blinds, change light bulbs and add lighting where needed to welcome the buyer. We'll enhance the ambiance with music playing lightly in the background and insure a pleasing aroma emanates from every room.For more detailed tips and procedures that will encourage a full price offer, call Richard Kerlin at (918) 809-7778.

Room to Grow?

Did you see where Tulsa made it in the top 5 of "Where the Growth is..." article in Money Magazine last week? Tulsa shared this distinction with Rochester NY, Scranton PA, and El Paso & McAllen TX. The word on the street is that of the 100 most populous housing markets, Tulsa has a lot of room for appreciation, predicting price gains of 4.3% in the Tulsa market through 2008. Imagine what we could do if we can find ways to turn the negative job-growth around. What do you think will bring more jobs to the area?

The Sub-Prime is in the News…How Will it Affect YOU?

The headlines are once again full of news from the mortgage and real estate front…and this time, the “Sub-Prime meltdown” is taking center stage. Mickey Cunningham with F&M Mortgage recently shared this information with me about what exactly is going on, and what it means to you.

A “Sub-Prime” home loan is a loan where the client has some significant credit issues, or was otherwise unable to qualify for a standard, conventional loan. Due to the fact that these loans tend to be quite risky for the lender…they also bear higher interest rates to match, as well as often being adjustable rates that likely have recently hiked sky high, not to mention the steep prepayment penalties they generally carry.

These loans have been around for years - so why all the drama now?

Many Sub-Prime and other adjustable home loan rates have moved dramatically higher, due in part to the Federal Reserve Boards recent rate hike cycle. So as these rates are adjusting higher--and the payment right along with it--the homeowners are finding that they are unable to keep up with the dramatic increase in payment.

In the past, homeowners in this situation would simply throw the house on the market, realize enough of a profit to cover any prepayment penalties, and literally move on. But the soft real estate market isn’t making this quite so easy any more--houses are not selling as quickly, and the home appreciation rates enjoyed in the past have moderated.

So the Sub-Prime homeowner is stuck--and many of these homes are falling into foreclosure, causing even more problems. As more and more loans are defaulting, mortgage lenders are forced to tighten up their lending standards across the board in response…making it tougher for a troubled homeowner to even refinance to get out of trouble. Many Sub-Prime lenders are feeling the pain, and in some cases, actually being forced to close their doors as they are hit with all the defaulted loans and foreclosed properties coming back home to roost.

How does this impact you?

In the short term, home loan rates are benefiting, as the stock market is taking a beating, causing money to flow into Bonds and Mortgage Backed Securities, which benefits home loan rates. But the longer term picture may spell higher interest rates ahead, as lenders have to absorb the cost of the loans that went belly-up, combined with the cost of increased compliance and accountability standards.

Now in many cases, the advice and loan strategy given to the client was perfectly appropriate for the client at the time they took out the loan… but the “perfect storm” of colliding economic events may have just worked against them. Yet unfortunately, many homeowners are paying a very steep price for what may have been poor advice and counsel given them at the time of their home purchase or refinance. Now more than ever before, it is clear that it pays to work with a true professional, especially when your home is on the line. If you’ve ever thought it’s too expensive to work with a real professional…just wait until you work with an amateur. The price paid is clear--and in this case, it’s a very painful one.

Because of these events, credit and lending standards are tightening across the board-- so it’s also a very wise idea to make sure your own credit score is as high as possible.

For more answers to your mortgage questions, call Mickey Cunningham at her office at F & M Bank & Trust (918) 748-7180.