http://www.realty.com/ en matthew@matthewdenton.com Copyright 2010 2010-06-12T20:55:00+00:00 http://www.realty.com/blog/what-to-do-with-this-rhode-island-village/ http://www.realty.com/blog/what-to-do-with-this-rhode-island-village/#When:20:55:00Z Low-cost housing is up for auction Twenty-two houses in Medina Village, one of the poorest communities in West End are going up for auction amidst a very controversial issue that the village is currently facing. According to the exclusive report by The Providence Journal , “The sale comes as the federally subsidized Section 8 rental properties — representing 83 units of housing — continue to decline and the current owners have failed to make mortgage payments to the federal Department of Housing and Urban Development, which foreclosed on the complex in 2009…If the houses are not sold at the foreclosure sale, as housing officials expect, Rhode Island Housing has agreed to take control of the sites for a nominal $1 purchase price, with the purpose of keeping the apartments as subsidized, affordable housing, according to HUD spokeswoman Rhonda Siciliano. The state housing agency would then find a developer to make the necessary repairs, which HUD estimates to cost more than $11 million, says RI Housing spokeswoman Kristine Allard.” The Housing and Urban Development (HUD) may have its good intentions for the residents of Medina Village but it certainly doesn’t make sense to spend $11 million for repairs alone. First, the tenants weren’t able to maintain the place properly so there’s no assurance that they’d be keeping it in good condition for the next ten years, not even five at that. I don’t mean to degrade anyone but it’s common for subsidized housing to fall into disrepair when its residents are taking advantage too much of the situation that they’re in. Second, there’s no way that commercial investments will start pouring in once the redevelopment is completed. In the same report, City Councilman Leon F. Tejada says, “We’re trying to improve the conditions in that area. A lot of new businesses are coming to Cranston Street, but a lot of others don’t want to come there because they don’t want to be next to these abandoned properties.” Abandoned or not, the community itself seems to drive off businesses in the area. There’s no point in rehabilitating it then for $11 million. I’ve got two suggestions. First, when the properties don’t get auctioned off, the HUD must build environment-friendly homes that are not only cost-effective, they’re more durable as well. This can begin a wave of new nature-friendly residential constructions in the entire city. Second, the HUD must conduct regular inspections on the houses to regulate its inhabitants. If they violate rules, they must face consequences like getting evicted in order to maintain the quality of the homes. Do you have any suggestions? Feel free to write your comments. Realty.com is a real estate search portal, dedicated to connecting home buyers and sellers to trusting real estate services. Follow the Realty.com blog for up to date housing news and trends. And monitor local mortgage rates at RealtyGadget.com.   2010-06-12T20:55:00+00:00 http://www.realty.com/blog/june-is-national-home-ownership-month/ http://www.realty.com/blog/june-is-national-home-ownership-month/#When:20:53:00Z Take a look back at the benefits that this month has for buyers At this time of rapid home value downturn, it may seem pointless for the country to still celebrate National Homeownership Month. But the economic crisis itself is one reason why we need to keep the American dream alive. The program began when President Bush declared his support on expanding homeownership opportunities for Americans. Since then, public and private agencies have created their own programs in light of Homeownership Month. For example, the Department of Housing and Urban Development (HUD) sponsors housing counseling agencies throughout the country that can provide advice on buying a home, renting, mortgage foreclosure, credit issues, and reverse mortgages. There are a myriad of homebuyer classes most of which are for free. In 2005, the San Antonio Neighborhood Action Department (NAD) held an eight-hour, HUD-certified class to 600 prospective homebuyers who got a crash course in financing, credit history, down payments, closing costs, selecting a lender/realtor, homeowner’s insurance and rights, and other important issues. Other cities have also launched their free classes as well. Experts have taught more than a hundred thousand potential buyers about how to shop for a loan, how to qualify for lower rates, how budget for monthly mortgage payments and unforeseen expenses, and many more. In 2007, the Home Downpayment Gift Foundation , a provider of charitable home down payment gifts allotted its funds and efforts in educating first time buyers. They provided educational assistance and support to interested house hunters. In 2008, the National Association of Home Builders has worked with housing finance innovators, consumer education organizations and government officials to advance affordable homeownership in our country. In 2009, the American Bankers Association has provided buyers with a ton of information ranging from selecting a new lender to obtaining the best loan not to mention programs on taking action in case of a foreclosure, getting a tax credit and the perfect time to purchase a home. Home buying need not be a burden. All that we have to do is to educate ourselves. In the words of Minneapolis housing Consultant John Trostle , home buyers who attend these seminars “got the home or the kind of home they really need, first of all. It’s in good condition with a mortgage they can handle. And that they are going to be not only happy and successful in this home, but it’s going to prepare them for the inevitable when they sell this home, get the equity out of it and are able to move on to the next.” This month, make it a point to educate yourself about responsible and affordable home buying! Realty.com is a real estate search portal, dedicated to connecting home buyers and sellers to trusting real estate services. Follow the Realty.com blog for up to date housing news and trends. And monitor local mortgage rates at RealtyGadget.com. 2010-06-11T20:53:00+00:00 http://www.realty.com/blog/racial-concerns-on-real-estate/ http://www.realty.com/blog/racial-concerns-on-real-estate/#When:20:50:00Z Some trends are starting to emerge Recently, Memphis was featured in the New York Times . But it wasn’t about an early tribute to the Carnival Memphis nor about another Hollywood film shot in the area. The NYT focused this time on the real estate downturn that the city has never experienced in the past decades. The newspaper highlights the unjust treatment of Wells Fargo to its residents, majority of which are black and had no clue on how they’ve gotten into the mortgage mess that they’re currently in. Thomas E. Perez, the assistant attorney general in charge of the Justice Department’s civil rights division, told a Congressional committee, “The more segregated a community of color is, the more likely it is that homeowners will face foreclosure because the lenders who peddled the most toxic loans targeted those communities.” In need of a proof? The report cites, “During the post-World War II boom years, banks and real estate agents steered blacks to segregated neighborhoods, where home appreciation lagged far behind that of white neighborhoods.” Fast forward today, Wells Fargo has repeated the past: “Several state and city regulators have placed Wells Fargo Bank in their cross hairs, and their lawsuits include similar accusations. In Illinois , the state attorney general has accused the bank of marketing high-cost loans to blacks and Latinos while selling lower-cost loans to white borrowers. John P. Relman, the Washington, D.C., lawyer handling the Memphis case, has sued Wells Fargo on behalf of the City of Baltimore, asserting that the bank systematically exploited black borrowers. A federal judge in Baltimore dismissed that lawsuit, saying it had made overly broad claims about the damage done by Wells Fargo . City lawyers have refiled papers.” This isn’t any new to followers of industry news but the fact that the last statements have proven that justice was denied among these pathetic homeowners is a wake up call to the government to prosecute bank officials who should be behind bars today. Another report about racial concerns in the country comes from the Brookings Institution. It’s interesting to note that based on its State of Metropolitan America , an analysis of 2008-09 census data, suburbs now have more minorities since a “white flight” is currently observed in key areas – the first time that more than half of all racial and ethnic groups residing in large metro areas live in the suburbs.. It states, “At one extreme are slow-growing, black/white metro areas like Detroit with a longstanding pattern of racial and ethnic segregation. Today, more than four-fifths of residents in Detroit’s suburbs are white, compared to less than one-fifth of the city’s population…In fact, Atlanta and a few other cities experienced a somewhat new phenomenon in the 2000s—a gain in the share of population that is white. In Atlanta , whites increased from 32 percent of population in 2000 to 36 percent in 2008. Similar, though smaller, increases occurred in New York , Washington D.C., San Francisco , Boston , and primary cities in another seven of the nation’s 100 largest metro areas.” This is a seminal output from the institution as it will guide most real estate developers and analysts on how the market in these cities must evolve to spur demand from people moving in. In the words of William H. Frey, a demographer at Brookings as reported by The Associated Press , “A new image of urban America is in the making. What used to be white flight to the suburbs is turning into ‘bright flight’ to cities that have become magnets for aspiring young adults who see access to knowledge-based jobs, public transportation and a new city ambiance as an attraction.” Indeed, we should all watch out. Realty.com is a real estate search portal, dedicated to connecting home buyers and sellers to trusting real estate services. Follow the Realty.com blog for up to date housing news and trends. And monitor local mortgage rates at RealtyGadget.com. 2010-06-10T20:50:00+00:00 http://www.realty.com/blog/glut-of-homes-or-a-shortage-of-it/ http://www.realty.com/blog/glut-of-homes-or-a-shortage-of-it/#When:20:47:00Z Two conflicting reports confuse the public Real estate professionals are in a daze lately of what statistics to believe in. First, The Wall Street Journal has published a report that says it will take nine years before the inventory of foreclosed homes is absorbed. It states, “As of March, banks had an inventory of about 1.1 million foreclosed homes, up 20% from a year earlier, according to estimates from LPS Applied Analytics. Another 4.8 million mortgage holders were at least 60 days behind on their payments or in the foreclosure process, meaning their homes were well on their way to the inventory pile. That “shadow inventory” was up 30% from a year earlier. Based on the rate at which banks have been selling those foreclosed homes over the past few months, all that inventory, real and shadow, would take 103 months to unload. That’s nearly nine years. Of course, banks could pick up the pace of sales, but the added supply of distressed homes would weigh heavily on prices — and thus boost their losses.” And they definitely have a point. Now that the first time homebuyer tax credit is through, we should be expecting added inventory. It’s a wobbly real estate future indeed and the WSJ has some credible numbers to put out in the open. But this has gotten me startled. CNNMoney.com reports that in some areas, real estate agents are complaining that they don’t have enough homes to sell. Quite impossible, isn’t it? The report states, “In some areas, supplies are even bidding-war tight. In Denver , for example, supply has fallen to 5.7 months from 6.2. In Phoenix it has declined to 4.5 from 5.2; and in San Francisco inventory has halved, to 3.2 months from 6.5 last March. In California , almost all cities have a short supply of single-family homes. That’s especially true in the lower-priced categories, according to Leslie Appleton-Young, chief economist for the California Association of Realtors. The supply of homes that sell for less than $300,000 is at 3.2 months statewide, down from an already low 3.3 month supply 12 months ago. Inventory of moderately priced homes, those between $300,000 and 500,000, fell to 4.2 months in March, down from 4.5 months in March 2009. There are plenty of more expensive homes in California , but this inventory is going quick: inventory for million-dollar-plus homes has dropped from 21.6 months to 10.9 months.” The bargain prices are fueling these markets and it must be taken into account that the recently expired tax credit has a lot to do with these numbers. It’s really convincing how the report presents the rate at which inventory is depleting. This goes to show that buyers must consider looking for homes in these cities and have a bounty of low-cost, high-quality choices. So here’s my conclusion: WSJ presents a nationwide analysis whereas CNNMoney.com is more state-focused. Looking at these numbers, one should realize that while there are home inventories fast plunging, the rest of the country is still waiting for a much needed buyer turnout. Realty.com is a real estate search portal, dedicated to connecting home buyers and sellers to trusting real estate services. Follow the Realty.com blog for up to date housing news and trends. And monitor local mortgage rates at RealtyGadget.com. 2010-06-09T20:47:00+00:00 http://www.realty.com/blog/where-arizona-differs-from-colorado/ http://www.realty.com/blog/where-arizona-differs-from-colorado/#When:20:43:00Z Two states are miles apart in terms of real estate prices Arizona’s once strong real estate market is now teetering as home values in the Grand Canyon State are down to extremely disappointing low figures. In a report by the Arizona Daily Star , “Home values dropped more in Arizona in the last year than in any other state. The price of an average Arizona home in the first quarter of this year is 13 percent less than at the same time a year ago, new figures from the Federal Housing Finance Agency showed Tuesday. Home values in the state, on average, are now more than 20 percent below where they were at this time in 2005, while prices were going up but before the housing bubble burst. And there is no real sign that the slide in values is slowing: The prices dropped by 3.4 percent just between the last quarter of 2009 and the first quarter of this year.” Following the 1Q10 results of the Case Shiller Home Price Index , Phoenix is one of the thirteen metro areas that reflected a decline in March with a 51.8 percent fall. However, there’s still some hope to this. Its YoY change is recorded at 2.4 percent, not something as high as in other cities like Cleveland with 6.7 percent, San Diego with 10.8 percent and San Francisco with 16.2 percent. It may look grim for the entire state but I’d like to count on Bob Beemis, CEO of Arizona Multiple Listing Services who thinks that these drastic numbers shouldn’t put much pressure on us. azcentral.com writes, “He reminds people that national numbers have a severe lag time and real time is more important. More people are trying to sell their homes. 14,000 new listings flooded the market in both March and April. But foreclosures and short sales are still the majority. 26% of the new listings in April were foreclosures. 27% short sales. And of all active listings, 39% are short sales. The highest in the past two years.” If that doesn’t sound good news to you, I wouldn’t know what kind of optimism should be presented. On the other hand, Denver , Colo. is in an upswing. Real estate prices are faring better despite the continued recession. According to The Associated Press , “The drop from February to March marked the sixth straight decline. Prices in 13 of the cities fell. Six metro areas, including Denver , recorded price gains. Metro Denver recorded a month-over-month gain of 0.6 percent, and the local index is up 4.1 percent for the year, double the 2 percent increase in the U.S. national index.” This doesn’t come as a surprise after all. The Wall Street of the West has been hanging on the crisis and this maintains a general atmosphere of stable prices. Let’s get our hopes up, shall we? Realty.com is a real estate search portal, dedicated to connecting home buyers and sellers to trusting real estate services. Follow the Realty.com blog for up to date housing news and trends. And monitor local mortgage rates at RealtyGadget.com.   2010-06-08T20:43:00+00:00 http://www.realty.com/blog/and-the-greenest-state-is/ http://www.realty.com/blog/and-the-greenest-state-is/#When:20:23:00Z These places would excite every environmentalist. Congratulations, Washington ! The Evergreen State is certainly living up to its name as it was named by green directory Greenopia.com as the top in the list of the country’s greenest states. Citing its strong points, the website posts, “Washington has better than average air and water quality according to data from the EPA and American Lung Association. Washington has a very good recycling rate at around 45%, and its state government has been very progressive in adopting environmental initiatives. Washington has a large number of green businesses and LEED buildings (ones that are both registered and certified), even when you scale them to its population. It is also one of the greener states in terms of its per capita emissions, energy consumption, and water consumption. Lastly, Washington is one of the top states in renewable energy sourcing.” Not far behind are Vermont , New York (for real?), Oregon , California , Nevada , Maine , Colorado , Minnesota and New Hampshire that round the top 10. I must admit I got surprised when the Big Apple ranks third but the website’s explanation could answer my questions in a way: “ New York , somewhat surprisingly, has pretty clean air and water, outperforming most states. New York also has a very large number of green businesses, with most of them being in or around New York City . New York is arguably one of the greenest states in terms of per capita emissions, water consumption, and energy consumption. This is somewhat surprising given its climate. New York uses a very large percent of renewable energy, although most of it is hydroelectric.” See? I’m not the only one who’s surprised. But Greenopia’s pleading that the states at the bottom should begin looking at their environmental policies. Delaware , Wyoming , North Dakota , West Virginia and Louisiana are all poor environmentalists with the Pelican State being reprimanded for its “low recycling rate relative to the national average of around 30%, very few LEED certified or registered buildings even when scaled against its population, and its failure to utilize much in the way of renewable energy even though it is fairly well suited for solar and geothermal energy.” So homebuyers in Washington are pretty much confident that they’d be breathing fresher air than most states whereas those searching in Louisiana , be prepared to write to your governor to reconsider his view on implementing a stringent environmental plan. Realty.com is a real estate search portal, dedicated to connecting home buyers and sellers to trusting real estate services. Follow the Realty.com blog for up to date housing news and trends. And monitor local mortgage rates at RealtyGadget.com.   2010-06-07T20:23:00+00:00 http://www.realty.com/blog/are-art-district-benefits-still-necessary-during-recession/ http://www.realty.com/blog/are-art-district-benefits-still-necessary-during-recession/#When:20:20:00Z Why recent disputes are causing a fiasco They’re found in culture-savvy Europe and pockets of art scenes here in the country. If in London they have Shoreditch and Broadway Market, we match them with Noho in L.A. and Pearl District in Portland . Art districts are teeming with all things beautiful to the eye and yes, all other senses as well. It’s where investors, sellers and curious individuals gather together to do business and celebrate famous and upcoming artists who remain true to their passion despite the risk it has to their personal finances. Art districts are supposed to spur galleries, performance spaces, exhibitions, etc. without the heavy levying of taxes. In return, a city’s reputation for cultivating a mix of creativity is diffused. That’s why every district would like to imitate SoHo perhaps. However, not everything turns out the way they want it to be. In a recent article by the New York Times , Baltimore was put in the spotlight for not reaping the benefits of its arts district. The report states, “The idea for a west side arts district has been around at least since the administration of Kurt L. Schmoke, Baltimore ’s mayor from 1987 to 1999. Over the years, the city took steps to improve the area, though without official arts district designation… The idea for a west side arts district has been around at least since the administration of Kurt L. Schmoke, Baltimore ’s mayor from 1987 to 1999. Over the years, the city took steps to improve the area, though without official arts district designation.” So the issue therefore boils down to the use of space: artsy enclaves or residential pursuits? Think about it, while many people give importance to art, there are a lot more who believe that its purpose is subordinate to better and urgent matters like city revenues and private real estate investments. In the same report, it describes Maryland as having “18 state-approved arts districts, including two in Baltimore . In each district, developers receive property tax reductions for building or renovating arts-related properties. In addition, artists are exempt from Maryland income tax for work created in the district. But according to a state official, there was no way to know how much that exemption costs the state each year.” And it may not be too long before officials start to think about reconsidering the tax benefits. Two years ago, Commissioner John Thompson Jr., proposed that eliminating property tax credits for artists and entertainers who revitalize buildings in the City of Frederick ’s downtown, another glitzy art escape. In an interview with the Gazette.net , he says, “I believe that artists and entertainers should pay property taxes at the same rates and proportions as other taxpayers. I believe in across-the-board tax cuts, rather than going interest group by interest group. You have a government program doing nothing. You get rid of programs that don’t apply anymore. There is no interest in this.” I bet he’s ready to bust the party when Baltimore decides to create another art district soon. Here’s my simple take on this matter. While it is important that the city takes enough revenues every month, it must also give due consideration to the period when an arts district achieves the status of SoHo . It doesn’t happen overnight and in a recessionary economy like this, it would take a while before artists reestablish the district into a profitable hub. If the economy gets back to its feet and still, nothing happens to Baltimore ’s art venues, I say they should take heed of Commissioner Thompson’s idea. Case in point: they’ve transformed Fall Church , Washington , D.C. into an arts district last year. Apparently, it’s still testing the weather if it’ll work out. So give Baltimore a chance and if it doesn’t work out, have the city think about its future seriously. Realty.com is a real estate search portal, dedicated to connecting home buyers and sellers to trusting real estate services. Follow the Realty.com blog for up to date housing news and trends. And monitor local mortgage rates at RealtyGadget.com.   2010-06-06T20:20:00+00:00 http://www.realty.com/blog/atypical-abode-the-balcastle/ http://www.realty.com/blog/atypical-abode-the-balcastle/#When:20:16:00Z It can be yours for a very high price If you want a piece of history and a touch of real estate opulence, be prepared to spend a lot for this property. The Balcastle is a historic limestone home in Southampton , NY that has stood for more than a century. But designer Bill Sofield who currently owns the house is ready to give it up. In an interview with the New York Times , he explains, “I have a habit of finding houses that are on the brink of destruction. It’s really like a benign eyesore.” For an architect who has been working with Tom Ford all these years, I couldn’t believe that the small castle hurts his eyes. A bit of history for you: the NYT states, “The house is listed on the National Register of Historic Places and was built by J. Edward Elliston. The high ceilings and oversized windows accommodated his 7-foot-4-inch frame. The property includes a gazebo used as a pool house and for putting up guests. Mr. Sofield said that a past owner, a Bulova heiress, housed bear cubs there in the 1930s. One of the cubs eventually found its way to a taxidermist; Mr. Sofield kept it on display.” And its history is admired by many. The National Register has included the house in its growing list of historic places in New York in 1986. Recently, it was included in a house tour last May that benefited Southampton Historical Museums and Research Center. For $75 to $90, visitors were lucky to admire the interiors of the Gothic property. Now listed by Brown Harris Stevens for $4.25 million, the 2,500 sq. ft. 4BR abode is described by the firm as “extraordinary property offers unusually high ceilings and overscaled windows exquisitely detailed with hand-carved mullions and traceries. The main level consists of a charming old-world kitchen with secluded breakfast terrace, spacious formal dining and living rooms. All central living spaces boast floors of intricate hemlock parquet and lead to a spiral staircase in the main tower.” But just as grandiose as its description, I’m not in the position to readily pay for this property anytime soon. I guess an avid multimillionaire historian or an eccentric property investor can easily close the deal for this charming abode. Perhaps, his sons would be playing Dungeons and Dragons all day literally. It’s a fancy catch, really. In the post by Ian Ratner of Curbed.com , he describes the Balcastle: “Instead of master bedrooms, we have ‘master chambers’; instead of hardwood floors, we have ‘cobbled floors’; and instead of cabanas we have ‘Gothic Revival follies.’” Realty.com is a real estate search portal, dedicated to connecting home buyers and sellers to trusting real estate services. Follow the Realty.com blog for up to date housing news and trends. And monitor local mortgage rates at RealtyGadget.com.   2010-06-05T20:16:00+00:00 http://www.realty.com/blog/washington-dc-still-the-fittest-city/ http://www.realty.com/blog/washington-dc-still-the-fittest-city/#When:20:13:00Z Get ready to shed those pounds off. If you’re bordering on the overweight side and you’re planning to buy a house at the same time, why not consider Washington , D.C. ? The American College of Sports Medicine recently revealed that the city topped its American Fitness Index for the third straight year. Aside from the state of health and fitness in an area, the index also “evaluates the infrastructure, community assets, policies and opportunities which encourage residents to live a healthy and fit lifestyle “. It explains, “Characteristics of the D.C. area that helped it achieve the top ranking are a relatively low smoking rate, a higher-than-average percentage of folks eating the recommended daily serving of fruits and vegetables, and lower-than-average rates of chronic health concerns such as obesity, asthma, cardiovascular disease and diabetes. D.C.-area residents also use public transportation regularly, meaning they are likely to walk to and from their places of work or transit stations. Also, the area of parkland as a percentage of the city’s land area is significant, providing residents with lots of space to run, bike, play sports or take a leisurely walk.” If you prefer other areas, you may want to settle in Boston , MA , the Twin Cities of Minneapolis and St. Paul , MN , Seattle , WA , Portland , OR and Denver, CO. The biggest year-on-year jumpers in the list are Sacramento , CA (from 12th to 7th), Jacksonville , FL (from 28th to 24th) and Riverside , CA (from 40th to 36th). Speaking to Forbes Magazine , Washington Mayor Adrian Fenty expressed, “We are thrilled to be the fittest city in the nation for the third consecutive year. We are investing in our recreation centers, building new swimming pools and opening more parks so our residents can exercise, swim, walk, bike and compete in sports.” On the other hand, stay away from Oklahoma City , OK which is last, dropping 5 places to 50th. It’s a major concern for city officials to say the least. According to the same report, Mayor Rick Cornett explains, “I’m not saying we shouldn’t be last. There are issues here that are real that we’re not running away from. We have an obesity problem.” He contends the ranking procedure however since the city doesn’t run schools and so its playgrounds won’t count in the survey’s city-owned parks criterion. I have some suggestions on the method though. First, while the rate of illnesses can speak highly of a city’s current state of health, it must also find a way how to measure the frequency of usage of exercise facilities that it has originally counted. This can put more relevance on the criteria. Second, while it has included smoking rate among a city’s population, it must also take into account the various health campaigns that its local government is implementing. While access to fitness facilities is important, it must also evaluate the programs that each public office is instituting as a preventive measure against diseases and illnesses. Realty.com is a real estate search portal, dedicated to connecting home buyers and sellers to trusting real estate services. Follow the Realty.com blog for up to date housing news and trends. And monitor local mortgage rates at RealtyGadget.com.   2010-06-04T20:13:00+00:00 http://www.realty.com/blog/economists-say-you-should-buy-a-house-now/ http://www.realty.com/blog/economists-say-you-should-buy-a-house-now/#When:20:09:00Z There’s never been a better time. Greece started to see the cracks of its economic Parthenon when it succumbed to financial ruins and needed the 10 billion euro bailout from neighboring European countries and the International Monetary Fund. It’s a global tragedy waiting to happen and we’re bracing ourselves once the crisis is defused. If the country won’t be saved, the entire continent and North America must be ready for a capital flight that will lead to a fall in lending and ultimately businesses will be pushed to the gutter. But not everything’s for the worse. CNBC eports a very promising advice in its interview with Moody’s chief economist Mark Zandi. He stresses, “It’s the best time in our generation to buy. It may be the best time in any generation. Mortgage rates are so low and with homes prices down and lots of inventory, you couldn’t pick a better time to buy or re-finance.” The report has the numbers to boast of: “The current average rate for a 30 year fixed loan is 4.87 percent, according to Bankrate.com. That’s the lowest rate for the 30 years since Bankrate started keeping track 25 years ago. Even jumbo loan rates-loans for more than $417,000-have fallen. The 30-year fixed jumbo loan is at an average rate of 4.5 percent, down from nearly 6 percent at this time last year.” This is supported by Bankrate.com’s chief economist, Greg McBride: “That’s particularly true for people who can take advantage of the government’s Home Affordability Refinance Program (HARP)-which allows home owners to refinance into low mortgage interest rates even if they’re property value has gone down.” This news is most likely to encourage more buyers following a surge in home sales brought about by the tax credit offered to first time homebuyers. The National Association of Realtors’ chief economist Lawrence Yun states, “The upswing in April existing-home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires, but other factors also are supporting the market. For people who were on the sidelines, there’s been a return of buyer confidence with stabilizing home prices, an improving economy and mortgage interest rates that remain historically low.” I say, buyers who are still undecided whether to pursue buying or not must take heed from these industry analysts. Realty.com is a real estate search portal, dedicated to connecting home buyers and sellers to trusting real estate services. Follow the Realty.com blog for up to date housing news and trends. And monitor local mortgage rates at RealtyGadget.com.   2010-06-03T20:09:00+00:00