Well as expected last Friday, in the face of wonderful employment statistics indicating a continued economic improvement, mortgage rates rose. I’m still in shock that some people are up in arms about it! They went from 4.71% on a 30-yr fixed-rate mortgage to 4.81%. On a 15-yr fixed-rate mortgage the rates went from 4.27% to 4.32%. So, yes, they rose, but are still at historic lows and still lower than a year ago in the same month…

If the Federal Reserve stops buying mortgage-backed securities next March rates will rise, but it won’t be anything Earth shattering. If and when it occurs, rates will go up, however, reknowned financial observers state that it is most likely they will nominally increase, not rise exponentially. Keith Gumbinger, VP of HSH Associates, predicts that when the FED discontinues it’s intervention, it will bolster rates approximately 3/4 of a point for a 30-year conforming loan. He also predicts that at the end of 2010 rates will be somewhere around 6%.

Several real estate experts as well as financial experts contend that the Fed will more than likely continue it’s intervention as long as the housing market’s recovery is teetering…

That said, this is all conjecture. With rates at a record low, continued rate increases projected, home prices incredibly low, absorption rates improving, the extension and expansion of the First Time Home Buyer Tax Credit, and Builder/Seller incentive offers more creative and lucrative for buyers than ever, it truly is the best time to buy!

The continual correction and improvement of real estate trends will continue to fuel consumer confidence, and along with all of the above mentioned motivators, I think that a huge surge in real estate purchases will soon be upon us, and Middle Tennessee will continue to be an amazingly healthy and corrected market. The vast majority of homes that are continuing to sell with a lower absorption rate in Middle Tennessee are under $200k, with the majority of that price point subset that is selling being actually under $150k. It is going to be very interesting to see in mid-2010 how these lower price point absorption rates compiled with the extension and expansion of the Tax Credit to include those who are not first-timers will affect the broader spectrum and all of the price points.

For now though, let’s all take a deep breath and sigh…mortgage rates rose a whole tenth of a percent, but are still under 5%!!!!!!!!!!!!!!!! Amazing. Ok, call me and buy a house now lol.

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We are in a day and time where there is an actual service for Social Media Management for Busy Professionals. Seriously. If you are too busy to manage your own social media site, you can pay people to do it for you. Which kinda cracks me up, because isn’t one of the points of social media to be “in touch ” with our friends, family, and sphere of influence?

Social Media has introduced a greater level of transparency for real estate professionals. We are not the keepers of the information, and we are no longer insulated. In the same way that the internet has offered the consumer  your own outlet for real estate information and research, Social Media is offering you a true glance at your real estate professional…and a vast avenue for word of mouth reviews on the services that we provide…

It is not uncommon for consumers to look, gather info, and begin to form their own strategy for their home purchase before you ever even find us nowadays. Consumers come to professionals pre approved, informed, and prepared, and it is a product of the fallout, the crash of the market, the wake of the subprime market… Be the reason a lack of trust, an easier access to info, or just a heightened consumer awareness in scary economic times our service capabilities, demand, and needs have changed considerably…and your expectations of us have as well.

All of these windows into our professional, our personal lives, and the Real Estate Market as a whole is also changing how we sell to you. The entire methodology of real estate sales has done an about-face and is in the process of being reinvented…and by and large you the consumer are the author of the new sales methodology guide. LOL!

What we do and who we know is right there for you to see, and you are online tracking our info and forming your opinions.  And we are paying attention to how you follow us, come to us, and react to us. The “call to action” sale is not for today, the “trusted professional” sale seems to be what you are after, and you don’t trust easily. Cold calls are dead, mass marketing is inefficient, inciting a sense of urgency is ineffective…making online connections, instilling trust in our professionalism and knowledge, and giving you the information is our reaction to social media and real estate transparency in today’s market…

So, where we used to brand our name and ourselves, we now brand our tech savvy, our knowledge, our relevance to you because of our expertise and professionalism not our ability to hand you information. Now that you have the knowledge, our relevance to you is our guidance, our ability to interpret the information that you have and apply it to your personal transaction, and our real life applications and experiences of the information that you have when you come to us.

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The expansion of the First Time Home Buyer Tax Credit and the Expansion of the Tax Credit to include people who have lived in their primary residence for 5 consecutive years of the last 8 is a blessing that we all will benefit from.

Real estate agents all over were cringing as the November 30, 2009 deadline for the First Time Homebuyer Tax Credit loomed. Sure, we all got a nice surge of activity as people scurried to get in under the umbrella, but what was to happen after the fervor died down? Agents go back to throwing darts at a wall in hopes that something sticks? Sellers go back to frantically keeping their homes clean and show-ready in hopes that a buyer would come from the sky? Buyers go back to kicking tires and climbing fences?

Obama said nope Not only did he say “Nope” but he made the impact of the tax credit on America’s real estate market more pronounced by adding/expanding the original incentive to include people who have been homeowner’s in the past.

Now, first timers, second timers, third timers whatever have until April 30, 2010 to be in a binding contract and until June 30, 2010 to close to be able to benefit from the tax credit. I love the 60 day window to close! For agents it will mean not just a last minute surge, but a steady stream for a few months of closings, improved absorption rates, and active clients And for buyers and sellers it means less time-constraint stress and smoother transactions…

The beauty of the expansion is also that where the first time home buyer tax credit heavily benefited the lower price points and mid-range pricepoints (as first timers by starter homes, those sellers move up to mid-range pricepoint homes), the expansion will have the capability to trickle up to the upper echelon pricepoints as well as movement across the board is affected. Everyone wants free money, and movement in any pricepoint at this point in slow absorption will benefit the big picture.

What I’m curious to see is how this will the correction of the market time wise. Will it make the upswing of the U-Curve more noticably pronounced? Or will it make only a slight swing? Will the confidence instilled in the players in the real estate market be contagious, and if so, how will the confidence level rising in agents, builders, professionals, and buyers and sellers affect the bigger picture?

So many questions, so many benefits, and so much excitement attached to this extension and expansion…

I suppose only time will tell the answers, but for now let’s just all ride the wave

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