Reports of “touching bottom” seem to be increasing
among media analysts in their comments about the housing
slump and credit crisis. The San Francisco Chronicle
recently reported an increase in properties being bought…
citing April sales in the Bay Area increasing by the largest
percentage in 20 years, a 30% from March. A group of 52
professional forecasters agreed that the worst of the credit
and housing crisis is over. I’m seeing loan options increasing
again. Some new lenders have sprung up in spite of
the market and I can again offer stated income jumbo
loans with decent rates. The new “conforming jumbo”
loans have come down in rate too, to the 6% range.
Locally we’re seeing a shift that signals better times are
just ahead. In January of 2008 my parent brokerage, First
Priority Financial, charted 35% of all loans being closed as
purchase money (as opposed to refi’s). This percentage
has increased to 60% in the months since. The number of
FHA loans being originated also rose dramatically. Both of
these trends seem to support hopes that some of the new
loan programs recently born from Congress’s intervention
are actually having a positive impact on the larger real estate
market. When these trends are added to others we’re
seeing on Wall Street, and among financial analysts, the
picture takes on a decidedly rosy glow… especially given
the rough ride we’ve had lately. It may not be time to dust
off that hammock yet… because your summer as a realtor
may be busier than you thought!
It’s “local heart felt service on transactions that counts,
not call center sweat shops”, wrote Tim Kearns, CEO of
First Priority Financial. He certainly has a point! The great
thing about real estate as a career is that you can literally
create the quality of business you want. Sure, we need to
follow impeccable ethics and have excellent training, but
in the end it’s your presence, demeanor, and unique ways
of conducting your business that makes you stand out…
and in these areas there is lots of room for creativity. If you
haven’t given your past clients a call recently to see how
they’re faring this is a terrific time to reach out with a heart
that genuinely cares. One thing may lead to another and
gain you valuable referrals. As you find unique ways to
reach out to others, you open doors for more business to
come your way. Enjoy the ride as your business grows!