Consumer Confidence Continues to Be Low

 

"Consumer confidence is at its weakest level in 17 years," according to Lynn Franco, director of The Conference Board's Consumer Research Center, producer of the Consumer Confidence Index, which surveys 5,000 households every month for their economic views. Franco says, "it looks troubling for current conditions and in terms of where the economy is headed." Another survey that tracks consumer confidence — the Reuters/University of Michigan Surveys of Consumers — had similar findings.

 

When consumers are satisfied or optimistic about their economic situations, they are more likely to buy a home. But with consumer confidence at its lowest level in nearly two decades, some economists think the real estate market is unlikely to rebound until at least 2009.

 

Early in 2007, both those surveys reported an uptick in consumer confidence, leading some economists to predict that 2007 would mark a real estate industry turnaround. Instead, consumer confidence dropped sharply last summer.

 

Though no one doubts the economy eventually will turn around, the consensus is that it will be a gradual process and consumers should not expect to see a market turnaround over night. However, consumer confidence surveys typically give economists a preview of what the market is going to do.

 

So what does that mean for the housing market?

 

Homebuyers and home sellers are largely sitting on the sidelines, but for different reasons. Homebuyers aren't so much concerned about interest rates since rates are still the low side. Instead, many prospective buyers seem more concerned about their creditworthiness.

 

What about you? We'd love to hear your opinion. Just leave a comment by clicking on the "comment" link below. Your email address will never be published here, although it is required in order to leave a comment. We respect your privacy, and only want your comment, not your identity. Go ahead, tell us what you think about consumer confidence in general. We'd love to hear from you.

 

 

 

Home Loans Without the Big Down Payment

 

Many people give up on the dream of home ownership before they even get started because they just don’t believe they will ever be able to afford the down payment and closing costs.

 

A down payment can be as much as 20 percent or more of the purchase price of the house and if you are looking at homes that cost as little as $150,000 you will need to come up with as much as $30,000 just to be approved for the mortgage. Most people don’t have this sort of money sitting in their bank account.

 

For those thinking these fees would hold them back from home ownership, there is an alternative. There are home loans out there that will help you to get into a home for very little in the way of a down payment and very little in the way of closing costs. Not everyone will qualify for these loan programs, but many people will and many people have been able to buy a home because of them. Why not find out if you qualify?

 

One of the best home loans for people without a large down payment is an FHA loan. FHA loans are loans provided by a lender but insured by the Federal Housing Administration. These loans allow a lender to provide funding to those who may have less than perfect credit because they are insured against default. These loans are a great option when you don’t have a lot of cash on hand because the down payment can be as little as three percent. When you are buying that same $150,000 home you would be looking at a down payment of $4,500 instead of $30,000. That's a much better deal, and while it still make take some time and effort to come up with the funds, it is much more doable for most people.

 

In addition to having lower down payment requirements, these loans also have limits as to what can be charged when it comes to closing costs. Many people are not prepared for the cost of closing a loan and they are handed a bill for thousands of dollars and their jaw sort of drops open. It’s hard to come up with these funds and a down payment. When you look at FHA home loans you will find they make closing costs much more affordable. There are also programs out there for you to take advantage of that will help you pay for the closing costs as well as the down payment.

 

Do your homework when it comes to financing the home of your dreams. You may just find that you can get into that new home for a lot less than you thought.

 

 

 

Homes: Buy or Rent?

 

Owning your own home: an idea so popular it's known as the American dream. But as prices fall and foreclosures rise, for many it's become a nightmare instead. How do you know whether renting or owning is the way to go?

 

Stacy Johnson examines a few considerations you need to keep in mind when trying to answer this age-old question of whether it's better to buy or rent. (Video runs 1:18)

 

Trying to determine whether renting or buying is best for you? We'd love to help you answer that question. Give us a call for a no-obligation discussion of your situation. We'll help you determine whether renting or buying is your best approach.

Homeowner Mortgage Bailout Poll

 

Americans remain split on whether homeowners about to default on their mortgages should receive special treatment to help them keep their houses, according to a new research poll.

 

The poll finds 49% of Americans believe such homeowners should receive special treatment, while 48% feel homeowners should not get assistance. Three percent of those polled had no opinion.

 

Congress also appears split on the issue. The House is debating Democrat-sponsored legislation that would let the government back loans for homeowners facing foreclosure and would reduce the principal owed on those mortgages. Many Republicans oppose the bill, and President Bush has threatened to veto it.

 

What's your opinion? Do you think homeowners in danger of losing their homes should get government assistance to keep them from losing that home? Use the comment link below to give us your thoughts on this touchy subject. Your email address, although required to post a comment, will not be published here for your privacy and protection from unwanted email. We'd love to hear how you feel about the home bailout issue.

 

 

Pricing Your Home to Sell

 

Pricing your home is one of the most important items when choosing to sell your home and doing this wrong can be a costly mistake. You have to consider more than just the price to do this properly. The condition of your home, average market time for your area, availability for showings and the competing homes can all play a big role in choosing the proper price.

 

To accurately determine the right price for your home you need to find current prices for comparable homes in your area, as well as find recent comparable sales in your area, and know the demand for housing in your area.

 

Here are some helpful steps to help you select the appropriate price when selling your home:

Step #1: Measure Your Home

Measure your home against similar homes in your area that have recently been sold or currently are for sale.

 

Step#2: Compare Features

Find what features either make your home stand out against the comparable homes or maybe appear not as attractive. Items such as square footage, number of bedrooms, number of garage spaces and lot size can make a big difference. Buyers will be comparing your home to these others, so it's a good idea to do so yourself.

 

Step#3: Cosmetic Fix-Up's

Determine what cosmetic fix-ups you can complete to make your home more appealing than the competition but without spending too much. You don't want to invest money you will not recoup when you sell your home. This will highly increase the marketability of your home.

 

When Pricing Remember:

The right price is usually within 5% of the market value. If you select a price that is too high the home will have little interest and few showings. If the price is too low there will be many buyers and you will miss out on potential profit.