All This Money and No One To Give It To

Photo by nomadic homemaker on Flickr.

Apparently what's wrong with the real estate market today is not so much the unwillingness of banks to loan money, but rather people's unwillingness to ask for it. There are billions of dollars that the FHA is trying to loan home buyer's, but people still aren't biting. With mortgage rates as low as they are, even if you can't afford a 20% down payment and have to pay PMI, the net payment is virtually equivalent to the 6%+ 30 year fixed rates of only a few months ago. And if you can afford the 20% down payment, most people are too scared to jump into the housing market and would rather sit on their cash rather than live in it.

Either way, you can't argue that home prices around the country are at their lowest levels in the past few years, with some case by case exceptions. If you are in the market, now is the time to kick it into high gear and start to seriously look. We are sitting on 5% 30 year fixed rates with no points today and those numbers are looking like they will come down even further. We have record low mortgage rates. We have record levels of housing inventory. We have record levels of foreclosures and bank owned properties and we still don't have people buying. It's amazing that the FHA is having such a tough time finding a home for all that money. - By special guest blogger Adam Steinhandler

Home Buyers Can Easily Find Money for Mortgages or Refinancing [KnowledgePlex]

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Even Brooklynites LOVE Staten Island!

Photo by *One* on Flickr (View in St. George)

I came across this forum post on the Brownstoner the other day about a Brooklynite moving to the St George area of Staten Island. The positive comments from both Brooklyn and Staten Island residents was a breath of fresh air and I'm glad to see that Staten Island has been getting the respect it deserves. People fear what they don't know, but as you can see Brooklynites are starting to accept and love Staten Island as well. I genuinely believe Staten Island will have it's moment of glory, and I hope through my blog I can help revitalize the perception of this historical island.

My allergies are acting up right now and my head feels like a ton of bricks, so I'll make this short and sweet. Gentrification in the St. George and surrounding areas have been prevalent over the past few years, making headlines in big blog and media sites such as the NY Times, Curbed, Gothamist, NY Observer and The Real Deal. I don't care for labels that much, but they are calling it "Williamsburg II". With an abundance of affordable homes, BEAUTIFUL Victorian homes, the exclusive Bay Street Landing development, a thriving artist community (you can always see hot local bands at Martini Red or national acts at the St. George Theatre), great restaurants, Richmond County Bank Ballpark...home to the SI Yankees, Borough Hall, the exquisite Snug Harbor Cultural Center and Botanical Garden, you really can't go wrong if you choose to live here. Apparently this post wasn't short, but it certainly was sweet!

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Opportunities are Knocking at Your Door at the Estates at Opal Ridge

Photo by SIREN on Flickr.

I just want to thank Google for being a blogs best friend. Apparently the sales team over at Opal Ridge were googling the development's name, and they came across the posts I did on them. They were very appreciative and sent me some more information about their new development that I would like to share with y'all. There was something endearing about the brochure they sent me, which is a good reflection of the development. I stopped by Opal Ridge the other day and with only 9 of the 22 homes left, it's only a matter of time before they are completely sold. By this point, I'm sure I mentioned the benefits of the low mortgage rates, tax incentives and reduced home prices many times that it's been instilled in everyone's brain. Coinciding with the monetary benefits, you should not overlook the intrinsic feeling you obtain by owning a family-oriented Opal home. The brochure below outlines your potential savings made available by the government and the great amenities that Opal Ridge has to offer.

(Click on thumbnails to view original size)

or
Download Opal Opportunity Knocks Brochure [PDF]

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Tips on Reusing Foreclosed Properties

Photo by Mint Software on Flickr.

Last May, the Furman Center for Real Estate and Urban Policy, with support from the Ford Foundation, convened leading housing researchers, policymakers, lenders, and nonprofit housing organizations to discuss how best to leverage public and private resources to reuse foreclosed properties in a manner that helps stabilize neighborhoods. With all that has happened in the housing and broader financial markets since then, this issue is more central than ever to the challenges facing cities around the country.

Below is the link to the White Paper the Furman Center has produced to document that roundtable conversation. In addition to summarizing much of the discussion's substance, they have included links to resources—ranging from existing research papers on related topics to listings of REO properties. This should be useful to practitioners, researchers and policymakers involved in neighborhood stabilization projects. — Vicki Been & Ingrid Gould Ellen

Transforming Foreclosed Properties into Community Assets
[NYU Furman Center White Paper]

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Golden Age For First Time Home Buyers

Photo by PatchworkPottery on Flickr.

The housing market today is a very controversial topic in the media that people rarely take a moment to assess their own situations. Everyone's priority is different and although no one knows how to time the bottom, if you look over the past year bargains are definitely available, mortgage rates are at their all time lows and there are an abundance of tax benefits. There are still opportunities to buy new construction developments that are eligible for 421b tax abatement. Even if prices decrease further, if you are looking long term, I believe the next generation of wealth will be made in this market. The following NY Times article emphasizes the advantages first-time home buyers have if they choose to buy a home now. With constant talks about the federal government trying to drive down rates to 4.5% that is truly an incredible rate to lock into for the next 30 years. Also, income-eligible first-time home buyers won't want to miss the opportunity for a $7,500 federal tax credit, since the deadline is June 30th. Most people don't realize that first-time home buyers don't have the luxury of gambling on the market bottom. Once the market starts to turn around, existing home buyers who wanted to move years ago will quickly sell their current home to buy a step-up home.

We wouldn’t let another decline bother us, said Michael Proman. You can never time a bottom. This is a long-term investment for us (referring to their recent home purchase in Minneapolis), and it truly is the best investment we have in our portfolio right now.

It May Be Time to Think About Buying a House [NY Times]

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Sexy Staten Island Courts Brooklynites

Photo: Victorian Mansion on St. Pauls Ave.

In the words of Borat...I liiiiike (just imagine his accent when reading this). I ate too many silly pills this morning, so don't mind me...let's get back on track boys and girls! For anyone who is reluctant to move to Staten Island for the stereotypical unjustified reason of, "because it's Staten Island", it is imperative you read this NY Times article, which is more like a tale of a Brookyln family's desirable search for their suburban dream home. I agree there is an appealing factor of living in Brooklyn, but when you really look at it from a practical unbiased perspective, it is almost a no brainer of why you would choose to live on Staten Island. For example take the family from the NY Times article, Glenn and Melina Gontha, who wanted to leave the hustle and bustle of brooklyn to move to a tranquil area where they can raise their son in a bigger house with a backyard and garage for an affordable price. Unlike Melina, Glen was extremely apprehensive about moving to Staten Island until he gave it a solid look and they finally moved into their beautiful 4,000 square-foot, four-bedroom house, on Clinton Avenue in New Brighton for only $615,000.

Our family's needs matched up with what Staten Island had to offer, he said. Maybe part of it is psychological. Part of the appeal was it was still in the city.

Staten Island didn't seem as dense as Queens and Brooklyn, even though they say it is being overpopulated and overdeveloped, Mrs. Gontha said. We didn't get that sense at all. Then Glenn said, 'I think I love Staten Island.' It was the most hilarious thing.

I think you guys get the gist of what I'm trying to say, so I'll see ya guys later!

Learning, Finally, to Love Staten Island [NY Times]

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