April 2019 Letter From My Heart

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Good morning to the Month of April,

As we transition to the excitement of Spring Buying, here is some insightful data.

Great News:  US economy stands on strong footing.  See our Good News below.  

Are you ready for Spring Buying?  Let’s start preparing today. Solid offers with few contingencies – plus inviting down payments – is an eye-opener for Sellers.  A great way to overcome the concerns of last Fall.  Our real estate friends, when talking about their listings going into contract, Support our call to be prepared by a proven lender, who loves real estate. 

Hoping to buy this Spring? Now is the time to call me –  Call Mike.  

Headlines are often written to sell fears.  Not here.  We see facts as the golden opportunity. 

Housing Stats:

  • With rising loan rates, refinance loan volume decline from 1.5 T to 400 B. For purchases, loan volumes have been on a steady increase from 500 B in 2011, to 1.2 T last year.  With rates falling again, I expect positive results in both numbers. 
  • Some suggest our recent slow down is a sign of decline. Instead let’s consider what those who specialize in numbers and facts, say about our markets. In a recent survey by the National Association or Realtors,  63 % of respondents said it a good time to buy. This before recent mortgage rates reductions.  Our market is primed for a good Spring. 
  • Cash-out refinances: An interesting stat – 41% of all refinances include cash out. This matches the peak of Summer of 2004.  I love people who love real estate. Call today.
  • With lower mortgage rates, no prime rate bumps expected in 2019, promises of a deal with China,  and a strong US economy, this year is the year to be prepared. Please start now.  

Good news of 2019:  

1) Fear of rising mortgage rates have calmed, with rates now falling. 2) It looks like accelerated  price appreciation has stabilized. 3) Consumer friendly mortgage rates and an increasing home supply, are supportive to a good Spring. 4)  Interesting: Locally, entry level homes sales are near double normal market pace. This excitement should move all. 

As news increases of slowing economies around the world we can expect a bit of slowing up in our market as well.  At the end of the day, the primary question we all ask ourselves is “Why do you or don’t you own?”

Bottom line: 

Call today and lets prepare for Spring Buying Now.

The Good, the Bad n the Ugly

The Good:  Pat Caddell, before leaving us, is to be appreciate, even emulated, when offering:  “I don’t have a team. I’m not a Democrat.  I’m not a Republican.  I am an American.”  First he worked for the election of Jimmy Carter and then supported Trump.  He will be missed.

Good News for Santa Clara County: Affordability in 2007 was 12.4 %.  Over the past 2 years, the number is now between 16 – 17 % range.  Now with rates and home prices in a friendly decline, with wages and employment far more favorable, both suggest exiting times.

The Bad:  Allowing fiction and falsehood to be represented as truth.  We all know headlines are written to sway public opinion and attitudes. 

Let’s begin: CA real estate is volatile, not to be trusted. Leading indicators point to a downturn, with months of unsold inventory exploding.  Untrue.  Foreclosures increasing drastically. No! New home construction is declining. Instead – going sideways, not up or down. Sales are declining. Isolated locations, most areas remain hot.  Unemployment increasing. Not true. Pricing collapse. No – we are up 10 % since 2016 or 5 % per year.  

The emotional ‘Bad’ is headlines that leave people in the dark, even when the sun of good news is shining. Our goal: Bring to ‘We The People’ the straight forward facts. Call for more.

The Ugly:  The way local governments manage our scarce resources.  Do they do so for the needs of the people, or for politics of power.  Question: How many ‘flood control’ percolation ponds are still dry, even this extra rainy season. They should be filled and not left dry as a bone. Then the water can percolate and recharge our aquifer.  For me, our processed water is lacking and not as good as spring fed water.  Perhaps why “bottled” water is preferred to tap water?

The Spring Buying Season

If you, your friends, or co-workers are looking to buy, please contact me. Why? Because I am a highly qualified,  proven loan officer.  You will find my advice and recommendations put you first – both today and your tomorrow.  Our desire is for you to be a successful homeowner. WE will not sell you, just to make a sale. Your trust and our partnership, is key. 

What about “Internet-only”.  It can be helpful. But this information does not have my 30 years of experiences, perspective, or my emotional commitment to your success.     

Closing Thoughts: 

We are the financing arm to help leverage your assets and accumulate wealth. We offer needed information – perspective and plausible financial solutions – with strong lenders ready to say Yes, to your loan request.  Give us a call.  Let’s start building your future today.

Remember, when considering real estate – short, mid, or long-term – your best success begins in strong preparation.  Let us be your team member and advocate for you. Together, we can best explore all options. We provide loans for Small Business and commercial. We are also proud to offer specialized tax-advantaged alternative when selling highly appreciated real estate.  Don’t pay Capital Gains taxes unless you want to. 

Thank you and continue blessings.

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