My wife’s grandfather is an educated, Godly man.  He sends a weekly letter (I get the email version) to his friends, family, and congregation.  He gave me the thumbs up to share his thoughts within my blog.  I’m excited to share some of his words with my readers.

8 February 2009

Dear Bethel Family and Friends: (E-Mail Version)

Common sense, defined as sound judgment, appears to be in short supply. In its purest form, common sense isn’t usually all that difficult. Just identify the problem and then apply the simplest solution. Children do this automatically. Farmers do this or go broke.

If the water’s too hot, cool it down. When an object is too heavy, get help. When it is raining, take an umbrella. If the soup needs flavor, add salt. When the sun is too hot, wear a hat. When your money runs out, stop spending and earn more. Common sense.

If ever America needed common sense it is now. It isn’t that politicians do not know what to do, they just won’t do it. Personal ambitions and greed appears to drive those we have put in high places. We can only hope common sense will rise from the ashes.

…

Just this week I was reminded once again how many unchurched are turned off by showy, glitzy, and jazzy TV evangelists. Sad, but true. This is not the Christianity described in the adult SS lesson this morning. Ephesians 4 shows that humility, patience, and gentleness should typify one’s demeanor as he seeks to live in a manner that witnesses to a lost world. Not easy, but God’s way.

Ephesians 4:1ff: “I implore you to walk in a manner worthy of the calling with which you are called, with all humility and gentleness, and patience, showing tolerance for one another in love, being diligent to preserve unity in the bond of love.”

May this be a good week for each one. Love…Larry Buhler

Today the US Senate advances the new Stimulus Bill which includes an increase in the current home buyer tax credit.  Currently a home buyer purchasing a home from April 2008 to July 2009 may be entitled to a tax credit up to $7,500.  Currently the credit is to be paid back in increments of $500 each year thereafter.  The new Stimulus Bill proposes an actual tax credit of 10% of the sales price with a maximum of $15,000.  This provision may rid of the requirement to repay the credit, making it a true benefit for the home buyer.

In the article Senate Advances Tax Breaks for Homebuyers, Senator Johnny Isakson said,

“We do have a history in this country with housing and it goes back to the crash of 1974, which actually in terms of inventory and price declines was comparable to what’s happening now”.

“Within one year of the inception of that tax credit, two-thirds of the available inventory that was on the market was gone. The market moved back to a balanced inventory, values stabilized and things became very healthy. The only reason I know all of that is I was selling houses in 1974, that’s what I was doing to feed my family and make a living.”

The Stimulus Bill that was passed by the house last week will be reconciled with the Bill passed today and may have a final approval as early as Thursday February 5th.

Stay tuned for more information regarding this tax break.  Rates are still great and inventory is beginning to move again!

Today the Federal Open Market Committee adjourned their meeting without a change in interest rates.  The primary focus of Chairman Ben Bernanke was on the need to resuscitate our private credit markets.  The Feds announced that they are prepared to buy long term treasuries if the credit trend continues to be tight in the market.

With so much attention to mortgage rates with recent refinance inquiries and now with increasing purchase activity, banks are exercising the law of supply and demand.  Currently the Fannie Mae 30 year fixed coupon rate is trading in such a fashion that mortgage rates should be near 4.5%.  However, due to the slow banking inquiries over the past 24 months many banks and lenders have downsized their operations to stay afloat.  With a surge in new applications the pipelines are full and the banks are holding rates slightly higher so they can manage the current loans in process.  The capacity of the lenders should be eased in the coming week or weeks as these loans begin to clear the temporary warehouse lines.

Stay tuned and be prepared if you have not already began the refinance process.  It is best to know you current situation and get your loan application started so when the desired rate is available you can grab it before it’s gone!

Call me at 503.798.9183 or email me by clicking on my name –> Conrad Venti.

A report of existing home sales showed an unexpected rise in December.  Purchases grew 6.5% at the end of 2008.  As foreclosures have forced existing home sales down throughout most of 2008 it was nice to see a gain on board.

2009 is setting up to be another recording breaking year.  Hopefully we’ll see more positive news than in 2008, but with so much on the line it’s tough to say which direction it will go.  The sign of rising exisiting home sales shows that people are beginning to take advantage of the amazing purchase opportunity at hand.

Make sure you’re prepared to take advantage of the opportunities at hand!

Remember, opprtunities are never lost…someone will take the ones you miss!

Happy Monday!

With so much media attention on the economy and real estate markets in 2008 I am asked daily by clients what the current home values are in the Willamette Valley.  As a loan officer real estate values play a very important role in opportunity to work with a client, regardless of whether it is a purchase or refinance.  I do my best to use available resources on each and every inquiry and conversation I have with a client.  We’ve all heard the doom and gloom of what the media has to say about the real estate market in the U.S., but it’s very important to focus on the Willamette Valley when we’re talking about our own homes.

Home values in the Salem/Keizer and surrounding areas did see some decline in home sales prices in 2008, but if we look at the big picture, we have to be thankful for where we stand.  The majority of the country has experience even greater declines in value.  I have included the statistics from Willamette Valley Multiple Listing’s December year-end report.  West Salem and South Salem had the largest decline in average sales price in 2008.  With so much new construction in the last three years those neighborhoods still have a substantial amount of new homes listed for sale therefore making it a great opportunity for those looking to purchase.  Keizer showed a small percentage of appreciate in 2008, mainly due to the law of supply and demand.

I met with several clients in 2008 who were looking to purchase a foreclosure or bank owned property.  Some for the investment purposes or for the purpose to use as a primary residence.  I thought I would give a brief description of few common types of foreclosure or pre-foreclosure properties.

Short sale: A home that is typically listed with a real estate agent.  The owner has to contact the lender and prove some sort of financial hardship and has to show that they have tried to sell the home to at least break even.  Each bank has specific guidelines for short sale approval.  Once the thumbs-up is given by the bank, the borrower can then list the home with a real estate agent for a price that is less than the mortgage owed on the property.  The offer will then go to the bank for approval.

Foreclosure/auction sale: A home that is typically sold the county courthouse steps via a trustee sale.  After several attempts to work with the home owner the bank will eventually sell the home at an auction for a starting bid starts at or sometimes less than the amount owed on the mortgage plus fees and defaulted payments.  Investors will purchase the property at the auction with cash on hand (cashier’s check).

REO: A home that is owned by the bank and typically listed with a real estate agent.  If a home does not sell at the auction the retains ownership and will list the property with real estate agent.  Once the home is listed offers will again be made to the bank for approval.  This type of property is now owned by the bank (i.e. REO – real estate owned).

According to Willamette Valley MLS there were 236 REO/bank owned properties sold in the Willamette Valley in 2008.  This number grew about 39% between 2007 and 2008, however, the number of properties sold as an REO was less in 2004.  To see the stats from WVMLS year end click on REOs in the Willamette Valley.

On November 26th I mentioned in my post that Treasury Secretary Henry Paulson made an announcement that the Treasury would buy additional mortgage backed securities from GSEs (Fannie Mae and Freddie Mac).  To read more about that article click on Help For Main Street. As we’ve heard several announcements about help for our economy over that last 6 months, my main focus of Help For Main Street was the lasting affect of the announcement.  With recent announcements we’ve seen pockets of opportunities, not lasting for more than a day or two.

Today, Thursday December 11th, 15 days later, we’re still seeing the benefits of the help from the Treasury.  Mortgage rates have dropped to a four year low.  We’ve seen the 30 year fixed no higher than 5.5% (5.625% APR) since the announcement.  There has been a few days in the past two weeks when rates have dropped as low as 5% (5.126% APR).

The future of the mortgage market and Treasury announcements is unpredictible, thus making it important to be prepared to make a move now or to be prepared to make a move when it is necessary for your individual situation.  The key to taking advantage of this amazing opportunity of low mortgage rates is preparation and education.  If you are thinking about purchasing a house, these lower rates may help you afford more or make the price range you were thinking about more affordable.  If you currently own a home and pay more than 6% on your mortgage, it is definitely worth inquiring about the possibility of refinancing.

To contact me today feel free to email me or call my direct line at 503.798.9183.

Many of you heard that mortgage rates were good last week.  Many of you also heard that rates may go even lower.  The fact is that last week rates were great and today the trend has followed through on this chilly Monday morning.  Rates actually held a trend around or below 5.5% for the better part of 7 working days.  In the recent market a steady trend of anything is unexpected.  The announcement of the Treasury willing to buy additional mortgage backed securities was the cause of our low trends.  The short term future of rates is still something that cannot nor should be forecasted.  The market doesn’t allow us to follow traditional trends and driving indicators of where rates will go.  With that said, it is better to take advantage of an opportunity of already low rates when you can rather than waiting for something that may never happen.

Great prices, yes, I say great prices.  As I’ve said numerous times, we’re fortunate to live in the Willamette Valley where we haven’t seen too drastic of a drop in home values.  However, there is enough inventory currently on the market to offer an amazing opportunity for anyone thinking about buying a home (regardless of whether you are a first time home buyer or a seasoned veteran).

The key to success in this market is understanding that now is the time to take advantage of each of these opportunities at hand.  If you wait for the rates to drop even lower or the prices to fall even more, you’re likely to miss the boat.

If you need help finding the starting point call or email conrad(at)conradventi.com today.

Happy Monday!  I hope everyone had a great Thanksgiving Day.  I can say that those in the real estate or lending industry had plenty to be thankful for heading into the long weekend.  After the Feds announcement last week among other things, to purchase mortgage backed securities, mortgage rates dropped.  Rates on Wednesday were the lowest we had seen since January.  As I stated in my post “Help For Main Street”, there have been many recent announcements that have caused moments of opportunity for those looking to for purchase financing or those looking to refinance.  However, the volatility of the market has caused these moments to last for just a day or two.

Heading into a new week, we opened the market in positive territory this morning.  It looks like this moment of opportunity may be extended past the one or two day norm.  I’m certain that with the talk of our “slowing economy” or “recession”, we’ll need more than just a few days of low mortgage rates to stimulate our housing market.  As the week progresses we’ll see if this is simply another moment of “opportunity” or if it is a trend to stimulate our struggling housing market.

You’re probably wondering the story behind the two pictures above and how in the world it may pertain to the mortgage market.  On Thanksgiving morning I took Wyatt (my dog) for a walk around the block.  I returned to the awesome sight of a shattered window from someone breaking into our car (among four others in my neighborhood) on Thanksgiving eve.  My father-in-law was kind enough to help me vacuum up the glass as we were nearing our lunch time with the family.  Knowing the Oregon weather, we knew it was necessary to find a cover for the window.  He mentioned, “do you have one of those signs from church?”.  So I dug our Merry CHRISTmas sign out of the garage and thus the remedy.  Despite the broken window on our newer van we were able to make the most of the opportunity to share the simple sign that represents the true meaning of Christmas.  So far that is the extent of our Christmas decorating!

As this short day at the office nears an end I thought I would share my Thanksgivings.   I look forward to tomorrow, spending time with family and eating good food.  This year will be mine and K’s first Thanksgiving with our twins.  Coming up to 10 months M and N continuously make us laugh with their distinct personalities.  It will be a joy to spend the day giving thanks for our growing family!

As I reflect on my life and think about what I am thankful for, I could probably write a list for days.

I am so thankful for my wonderful wife who is able to pour every drop of love and time into our babies.  I think she’s got the supermom award coming at year-end.  She’s been such a huge support in my business and my passion for running.  We are also fortunate to have most of our family members living in close proximity.

I am also thankful for our friends.  As many of them are young families it is fun to watch our children go together.  The support we share with each other is unmeasurable.

I am thankful for my business and my clients who make my business possible.  Every single day I am thankful for the opportunity to help my friends, family, and new clients take one more step towards building a strong financial foundation.

I am thankful for where I live – Salem is such a beautiful place (especially as I look out my windows this afternoon at the 12 different colors of trees and the crisp blue sky) and wonderful community.

I am thankful for the Lord.  He has blessed me in so many ways and has a hand in control of each of these parts of my life.  I am also thankful for the community at Salem Evangelical.

As you embark on your Thanksgiving festivities this long weekend take a moment to recognize what you have to be thankful for.