The Bains

The National Association of Realtors urged Congress to made the proposed FHA & conforming loan limit increases a permanent part of the 2008 Housing Stimulus bill.
H.R.5958, also known as the Homeowner Opportunity Act, was introduced this week. The bill,
which would make permanent the increase to the FHA & conforming loan limits for high-cost
areas, will be consider an amendment to the large housing stimulus bill.
“By making the loan limit increased to FHA, Fannie Mae & Freddie Mac permanent the mortgage
market, will achieve an immediate increase in liquidity”, said NAR President Dick Gaylord. “This
increased liquidity should help drive down mortgage costs & creat stability in the mortgage
market”.
Gaylord added the amendment can help working families achieve the dream of homeownership
by offering a safe & affordable alternative to risky subprime loans.
quote from RECON, Texas Real Estate Center, A&M U.

Today, investor-owned one-to-four family rental properties account for almost 20% OF ALL
FORECLOSURES. Moreover many of the high-risk home purchase & home refinance loans now
in default are concentrated in low-income & minority communities, so the fallout from foreclosures is hitting the same neighborhoods where many of the nation’s most economically
vulnerable renters live. Some renters on foreclosed properties are hit with sudden EVICTION.

Policy makers need to focus more attention on those rental households severely harmed by the current mortgage market turmoil. The demand for low-rental housing is increasing at the
same time the supply of low-cost rent is declining. Policies that honor the role of rental housing should be addressed as well as homeownership.

The median price of homes sold in TX rose 5.1% in 2005 & 4.6% in 2007 & estimated to be 3%
in 2007, according to the Real Estate Center at Texas A&M University.
House values are determined by net rents. Stock price-to-earnings ratios can be helpful when
studying home price-to-rent ratios. Monitoring these ratios can yeild a “normal” price-to-rent
ratio for an area, which in turn can suggest whether a price bubble may occur.
The ratios of prices in metro areas to the avery price for the United States again indicate that
the risk of a home price bubble for Texas in current economic conditions is LOW.

As America celebrates the 40th anniversary of the Fair Housing Act, REALTORS continue to be
outspoken advocates, working with home buyers & sellers to ensure they receive equal access
to affordable housing & ownership.
The Fair Housing Act protects the basic right of all Americans to pursue the dream of home-
ownership free from discrimination based on race, color, religion, sex, disability, familial status & national origin, & REALTORS have a strong committment to partner with diverse real estate
partners, education & grant & awards programs.
Pushing for flexible FHA, the National Association of Realtors is working with Congress to make
permanent the new FHA conforming loan limits, mandated by the stimulus package, so that
Americans can access affordable financing in all areas of the country. REALTORS also continue
to push for a stronger, more flexdible FHA program, to give more first-time buyers access to
affordable & safe financing options.

best location for investors are DALLAS & HOUSTON, according to HomeVestors of America,
the company famous for the “We Buy Ugly Houses” billboards. The list is based on number of
homes bought in each market.

The Dallas-Fort Worth-Arlington metro grew by 162,250 residents between July 1, 2006 &
July 1, 2007, the biggest population gain the country. Two other Texas metro areas were in
the top 10. This is from the U. S. Census Bureau.

With last week’s blog, this is one of the areas that the market is correcting itself - folks moving away from pricier areas to less pricey, creating a population change.

With the giddiness of the price increases of the early 2000s, we are seeing a price adjustment.
By the summer of 2006, the U. S. housing inventory hit 4 million units - double its level in 2000.
The recent boom and bust in real estate could ultimately benefit the industry and the economy
at large. 1. In the past few years formerlly blighted urban areas have been renewed,
2. the flight from overpriced markets has yielded a long overdue internal
redistribution of the country’s population,
3. more sophistication of American’s knowledge in home financing,
4. greater availablity of information about all components of the house sale
process,
5. price wars are returning affordability to real estate consumers.
For now the housing and real estate bubble served as an important catalyst for the growth
at a time when one was sorely needed.

after 6 straight months of decline according to the National Association of Realtors. Sales
of existing homes rose by 2.9% in February or the biggest increase in a year. The median
sales price fell to $195,000. This is the largest year-over-year drop since 1999. The
surge in the South was 2.1% with the Northeast at 11.3%. The only region to decline was
the West.
Watch what mortgage lenders are doing. They have glagged more than 9,600 ZIP codes in
34 states. This means certain types of loans will not be financed or are more riskier, meaning
a HIGHER INTEREST RATE & HIGHER CREDIT SCORES. Entire states on the list are California,
Florida, Arizona, Michigan, Ohio & Nevada. Generally these are in markets where home prices
are falling, BUT even regions where property values are rising are NOT IMMUNE. Check with
your lender before you get a loan OR refinance.

2,435 residential units closed & average price $171,946 in 2006.
2,370 residential units closed & average price $170,119 in 2007.
Commercial slightly higher as are commercial remodels with average price per sq ft LESS.

According to Dr. Mark Dotsuz, Texas A&M Real Estate Center, prices have slightly increased
in most metro areas, with foreclosure rates are much lower than the national trends.
Inventory in Texas is 5.7 months, compared to national average of 10.1 months. However,
it is noted by the Office of Federal Housing Eenterprise Oversight that price INCREASES in
most Texas metro areas to be GETTING SMALLER.

Go to our website at www.thebains.com and in the center of the page click on the
links & the top one takes you to our Realtor.com list of listings, click on any you want to
view, then go the the top menu bar & CLICK ON THE BLUE TAB to search all listings in our area. Call us at 903-561-4346 for any information you need.

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50% of TX sellers who undertake home improvement projects sell within 3 months,
$2,470 is the medium amount spent on home improvement projects,
$990 - medium amount spent on home improvements for homes priced UNDER $100,000,
$3640 - median amount spent on improvements by sellers of homes priced $300,000-499,999,
$20,690 - median aound spent by sellers of homes priced $500,000 & over

READY TO MOVE INTO & pricing appear to be the key to selling a home in a reasonable amount
of time. Having some taste in the improvements is important & hire some help to do that, if
need be.