Good morning: I hope all of you had a fantastic 4th! We ended up down at my brother-in-law's house. He lives on a small lake and had about 75 people there. It was a lot of fun.
I was thinking yesterday about the current real estate market and, although it's still tough, there are signs of life out there. In my world, I'm seeing lenders doing super jumbo loans again that are not at 8%. For example, U.S. Bank will do jumbos to $900,000 (even with cash out) at 5.95%. They are portfolioing these loans. Thus, the better rate. Wells Fargo will still finance up to 10 investment properties whereas most lenders will only do four. And I've been fielding a lot more calls from buyers looking to buy this summer as opposed to last. Part of this could be that I've been in the business another year now. The other part is I think buyers are hearing and realizing that it's a buyers market right now.
So all is not doom and gloom. It's still pretty tough out there. Lenders guidelines, for the most part, are still pretty stringent and there seems to be a disconnect between buyer and seller on what a fair price to offer is. But I'm starting to see signs of life out there. In my world, almost all the mortgage companies, workers, etc. that were going to fail have. We've gone from a high of 16 people originating loans for my branch to 6 and probably to 4 or 5 by the end of the summer.
I still think we're going to be slow through the end of this year and possibly into next. But, again, I'm encouraged. Obviously, some folk are sensing a great opportunity. And if they can spread the word, good times will be right around the corner! I'm curious how you're faring in your neck of the woods. Have a great day!
Paul
Paul McFadden
We flew around the Disney area in a small experimental aircraft. At about 1200 feet, we could see plenty of building going on.
There is business to be had if you are out there and are proactive.
Paul----I agree with you that there seems to be light at the end of the tunnel. I am noticing increase in my pre-quals and pre-approval requests. Let us continue to believe that the market is starting to turn the corner.
So the question is how long can we tred water waiting for the life boat ! There are some nibbles here too
good post..you just have to be positive and keep on prospecting..it will get better!!
Thanks, Randall. Yes, on the commercial side, business is still pretty good although slowing. It's good to hear you're seeing signs of life in Florida as I know that state has been hit particularly hard.
Lisa: I agree. I remember golfing in a tournament last fall with a guy who had just retired. He had always done well and his comment was "people are always buying real estate". So true!
Hans: Good for you. It's going to take a while but I expect the lenders will start to ease up a bit next year. That's a key piece to the puzzle. Take care.
Paul
Charlie: Probably for another 6 months or so. I've seen a lot of good people either leave the business entirely or have to get another job to make ends meet. Best of ludck to you. Good times will return!
Thanks, Michael. I appreciate it. Yes, if we just do what we know we should, we'll be fine. It's not easy right now but there is opportunity! Have a great day!
Paul
I feel very positive as well. I have seen a turn around in my area. Real Estate sales are picking up, and mortgages are coming in. Right now its about purchasing in my area, rather than refis...but we will get thru this.
Thanks, Nancy. Your positive attitude will win the day!
Paul
Hi Paul,
There are some wonderful opportuntities available and those that can will be smart to take action.
Cynthia: I agree completely. The smart ones are getting in now!
Paul
Paul, let me throw this out as some additonal "glass half full" thought....business in most markets is off 20to 50% and the attrition of industry is greater that 50%. So in almost every market, that would equal additonal opportunity among those that are left. Hang in there, late '09 is the star of huge opportunity.
Your title source!
Thanks, Bo: I agree with you. I plan on hanging around and expect better times all the time! Take care.
Paul