Petra Muses…

Thus far this week there were 15 closed residential sales in Branford, Guilford, Madison, North Branford, and Northford, Connecticut.  There were 4 closings in Branford for $260k, $322k, $590k, and $1.210m.  There were 5 closed sales in Guilford for $275k, $313k, $325k, $512,500, and $585k.  There were 5 closed sales in Madison for $225k, $279,500, $370k, $435k, and $675,500.  There was also 1 closed sale in Northford for $260k.

There were also 6 closed Condominium Sales this week.  There were 4 in Branford for $152,500, $190k, $212k, and $292,450. There was 1 closed condominium sale in Guilford for $120k, and 1 in North Branford for $182,500.

Thus far this week there has been 5 closed transactions in Branford, Guilford, Madison, North Branford, and Northford.  There was 1 closed sale in Branford for $250k.  There were 2 sales in Guilford for $540k and $380k.  There was also 1 sale in Madison for $433k, and 1 in North Branford for $233k.

There were 3 closed condominium sales this week in Branford for $220k, $145k, and $176k.

Although there is talk about extending the tax credit for first time home-buyers this guaranteed $8,000.00 tax credit ends soon.  You must close by November 31st, 2009.

Well we finally got the final results of the Golf Tournament; we raised $20,000 for My Sister’s Place. I want to thank everyone throughout our Metro and beyond for attending this event and a great big thank you to all of the volunteers and sponsors. This event would not be as successful as it is year after year without the help of all of you. I thank you from the bottom of my heart and I look forward to our 10^th annual golf tournament in 2010.

Thus far there were 9 residential single-family closed sales this week.  There were 3 closed sale in Branford, CT for $205k, $300k, and $375k.  There were 3 closed sales in Guilford for $280k, $325k, $441k, and $1m.  There was 1 closing in Madison for $505k and 1 closed sale in North Branford for $247k.

There were 5 condominium closings this week in Branford for $155k, $165k, $170k, $270k, and $215k.

Thus far this week there were 9 closed single-family homes in Branford, Guilford, Madison, North Branford, and Northford.  There was 1 closed sale in Branford for $445k.  There were 4 closed sales in Guilford for $287,500, $298k, $925k, and $1.8m.  There were 2 closings in Madison for $294k and $389k.  There were 2 closings in North Branford for $160k and $172k.

 There were also 11 closed condominium sales this week.  There were 4 closed sales in Branford for $115,300, $101k, $365,250, and $217,500.  1 in Guilford closed for $289k, and 3 closed in Madison for $325k, $279k, and $250k.  There were also 3 closed sales in North Branford for $170k, $178k, and $190k.

MORTGAGE NEWS!Bill Hendrick203-671-1486wthendrick@sbcglobal.net This Month’s Feature ArticleMaybe That IS Light at the End of the Tunnel…or is it a Train?Aren’t sociology and economics fascinating?  Throw in politics and finance and you have yourself some really interesting cocktail conversation.  And then there’s healthcare… Never before have we been faced with a more complicated and colorful array of economic and social dilemmas.  France has just approved a plan to curb excessive compensation for bankers.  How about excessive charges for plumbers?  Or vacuum cleaner salesmen or pastors of mega-churches?  Yeah, I know, it was bankers who ruined the economy.  Or maybe it was the “eight figure a year” people on Wall Street…or perhaps it was those mom and pop mortgage brokers… President Obama also recently proposed salary caps for bankers on this side of the Atlantic, but it wasn’t received too well.  Something about “socialism,” or something….anyway, it really doesn’t matter what the government does, but greed, stupidity and cronyism simply aren’t going to disappear any time soon.One quiet, yet accelerating trend is the consolidation of the banking industry.  The top five mortgage servicers in the U.S. now control about three quarters of the country’s servicing.  Fifteen years ago, the top 20 lenders serviced about half of the country’s loans.  There have been about 80 bank failures this year in the U.S., and that number could rise to 1000 before this financial bloodbath ends.  Meanwhile, the big fish get fatter, and thanks to TARP money, can now eat up littler fish that nobody cares much about anyway.  Well, nobody cares until there are only big fish left and consumers are left with no choices.  Follow the bouncing ball ….Fairground Mortgage originates loans that it sells to mid-sized lenders.  These lenders then sell the loans to large banks, who become the final servicers.  You really don’t care what happens, as long as you got a good deal and everything happened the way it was supposed to.  Consider this mystery:  We originate a loan at 5.25%, make a little bit of money on it, and then our lender makes a little money by reselling it to Wells Fargo or Chase Manhattan Bank.  But if you went directly to Wells or Chase, that same loan would have cost you 1/4% more.  Why?  Because “they can.”  As smaller banks and reputable mortgage brokers get squeezed out of the market, consumers will incur higher interest rates and horrendous service.  Do you know that a bank need not disclose what it makes on your transaction at a mortgage closing, but a mortgage broker does?  And that a larger bank can make twice as much originating your loan as a broker?  80% of mortgage brokers have been forced out of business during the last three years due to regulatory and competitive realities.  The moral of this story?  Please support your local, reputable mortgage broker.  Everybody wins through competition, but nobody more than the consumer.Industry News and Trends:According to Standard and Poor’s, June single family housing sales price figures are in.  The S&P/Case-Shiller Home Price Index just revealed that national home prices in June rose for the second consecutive month, increasing 1.4% over the prior year, exceeding expectations and possibly signaling that the three year, national housing collapse is nearing an end.  This is welcome news, along with other recent improvements, including July total sales units, which rose for the fourth consecutive month along with the homebuilder confidence index.  However, two brainchildren behind the benchmark price index, Yale economist Robert Shiller and David Blitzer of Standard and Poors say, “not so fast.”  The $8000 first time homebuyer tax credit has created a powerful incentive by quickly drawing new buyers into the market.  This credit expires November 30.  Once this credit expires, there will likely be a drop-off in new purchase activity.  In addition, foreclosures have been increasing rapidly each month, as a national foreclosure moratorium ended during the second quarter.  More foreclosures hitting the market will hurt home prices going forward. Thirdly, home prices rise every spring and drop in the fall each year.  It’s a natural phenomenon that is as predictable as death and taxes.  The real test will come when the $8000 tax credit expires and winter sets in.  Don’t be surprised to see home prices continue to slide.  The numbers do suggest, however, that things are getting “less worse.”  We’ll take it, at this point.

While 30 year rates have not dropped below the 5% barrier for several months, they have been surprisingly resilient as they have stalled in the low 5% range.  Mortgage activity has been steady.  However, there is a sense that the “boom” is ending.  At its regular meeting last week, the Fed announced that it was terminating its purchases of Treasury bonds in October.  Treasuries are not the same thing as mortgage backed securities (MBS), but the prices of treasuries do weigh on mortgage bond pricing.  Come October, rising Treasury rates will pressure mortgage bond yields, as well.  Recent MBS auctions have remained surprisingly strong, however, as our bonds continue to be considered among the safest investments in the world (a scary thought).  On August 27^th, the Fed announced that it “may not need to buy the full $1.25 trillion in mortgage backed securities.”  While nobody has a crystal ball, I am sticking with my early 2009 prediction that we have perhaps until the end of this year to take advantage of exceptionally low rates.  Based on the current economic picture, I truly believe that we will start seeing higher mortgage rates in October.  We are still originating 15 year fixed rate mortgages in the mid to high 4’s…Food for thought for those who have not yet refinanced.As always, we appreciate your business, your friendship and your referrals..Kirk Hagert, President, Fairground Mortgage Co., Inc. William Hendrick         wthendrick@sbcglobal.net     203-671-1486 

Thus far this week there are 16 reported closed sales in Branford, Guilford, Madison, North Branford, and Northford.  There were 5 closed sales in Branford for $195k, $231,500, $305k, $382,500, and $599,647.   There were 3 closed sales in Guilford for $274k, $329k, and $380k.  There were 3 closings in Madison for $324k, $375k, and $1.105m.  There were 3 closings in North Branford for $208k, $265k, and $440k, and 2 closings in Northford for $253k, and $379,900.

 There were also 8 closed condominium sales this week.  There were 4 in Branford for $118,500, $184k, $225k, and $138k.  There was 1 closing in Guilford for $561k, and 1 in Madison for $262k.  There were 2 closings in North Branford, CT for $148k and $169k.

Time is running out for the $8000 tax credit.  First Time Home-Buyers have to close by November 31st, 2009.

http://ctmls.ctreal.com/getdoc/776fa23e-499b-4bc0-a327-c52f279356fb/NewHaven2009Q2Stats.aspx

Taking time off from a busy Real Estate schedule is very very very difficult.  I don’t want my buyers to miss an opportunity to find the perfect home while I’m away, yes houses are selling quickly if priced and staged properly.  However, time spent with family is a must!!!  That is why I choose this career to begin with, a flexible schedule where family is not sacrificed.  Yes, camping….in CT is awesome.  It is so nice to get away without having to drive hundreds of miles.  Within 1 hour from my home on the CT Shoreline there are dozens of places to go.  However, I’m quickly growing attached to Hopeville Pond Park.  I’m hoping its one place my kids look forward to visitting once a year.  Okay, so 3 nights is usually my limit and I am home again running around with a brain stuck in slow-motion.  Tomorrow I get to go kick-boxing, shower in a real shower, then go to the office and play catch-up.  (as if I haven’t spent the last 6 hours at the computer already.)

Thus far this week there have been 14 closed residential sales in Branford, Guilford, Madison, North Branford, and Northford, CT.  There were 2 in Branford for $277k and $1.125m.  There were 4 closings in Guilford for $245k, $308k,  $370k, and $589,500.  There were 4 closings in Madison for $460k, $524k, $543,500, and $530k.  There was also 2 closings in North Branford for $240k and $375k; and 2 in Northford for $132,500 and $225k.

Thus far this week there were 3 closed condominium sales.  One in Branford for $209k, one in Guilford for $220k, and one in Madison for $312,500.

Please be sure to look back at previous weeks…sometimes agents get so busy they do not report their closings on the MLS right away.  We are looking at a fabulous year in Real Estate.  So many people taking advantage of the low rates and mass inventory.  We’ll keep working hard so you can find the perfect place to call home and invest in the American Dream.