January 2021 Residential Lending News and Successes

Good morning to the New Year, 

I trust this letter finds you in the best of spirits and excited about your new year prospects! 

Federal Reserve: The needful “tapering” is underway. The guidance is to first hit zero in the 2nd Quarter of 2022, and then evaluate raising interest rates.  Key: Keep watching how the actual market place responds. The world is often surprising, even shocking. Further, this guidance is unable to evaluate DC spending, proposed tax increases, and efforts to regulate the economy / economic growth. 

Big Question: Inflation – domestic and foreign. We expect the numbers to continue to increase through February, then flattening, with some retracing to follow. The Feds are hopeful. 

The Bottom Line: Interest Rates ARE Hedging Upwards

Key to Success: Being well prepared lets the Realtor and Seller know your readiness and commitment. It is the first step in helping tomorrow’s dreams become your reality. Further, Buyers often express a  concern about the “Cash buyer”. Yet most Sellers prefer, even like, the hands-on experience of the more traditional Home Buyer. Homes are personal and families are part of the American heritage.

Be ready today. A strong loan application and winning attitude.

This strengthens your Realtors efforts in selling you, and being sure 

your offer becomes the winning offer. Being most prepared is sound advice. 

Bottom Line:

Call today and let’s prepare for the Spring Season Today.

Interesting News We Can Use

New Loan Limits: With the continued increases in property values, we have new conforming – conventional loan limits.  $ 647,200 for conforming, single family residences. This number goes up to $ 970,800, in the higher cost Counties. Lets talk and see how these new number can benefit you. 

Forbearance and Foreclosures: Good News. We still make new loans for those who maybe in or entering the foreclosure process. Not pretty, but the priority: Save your home. Let’s talk.

Inflation and Rates: Yield-spreads are back in the news. After showing a negative yield-spread between the 2-year and the 10-year, in November of 2019, came the calls of a domesday “recession”. This before CoVid collapse. Soon after – as anticipated – the spread became positive and headlines went quiet. We again see a “closing of the spread” and again, calls of recession. For now, please don’t fall into their knee-jerk responses. We are better than this and a possible Carter-styled stagnation is not written in stone. Instead, we remain in a post-Covid state of confusion where patience and careful preparation is key to success. And we can help. Call us and let’s talk about 2022.

Housing: 2022 Preview.  Supply vs Demand is key to home pricing. From 2007, we had 12 M more US households, with 2 1/2 M less homes available, to meet this demand.  Estimates for nationwide appreciation range from mid to high single digits. On the Forbearance front, we began with 5 M households in Forbearance, of which 3.6 M left.  Of the 3.6 M, only 23,000 actually went to short-sale or foreclosure.  Of the 1.5 M still in Forbearance, I think a higher percentage will go “short-sale” or foreclosure. Question: Will this impact market values? My best estimate is no.

The Good, the Bad, And the Ugly

THE GOOD: The wonder of what YouTube can do. Mark Rober and Jimmy (AKA MrBeast) Donaldson are working to raise 30 M over the next 3 years. This with the goal to remove 30 M lbs. of waste from oceans, rivers and beaches. Currently, they have raised 17 M at “#TeamSeas”.

These are the same 2 who have raised $ 23 M raised over the past 2 years to plant 20 M + new trees. Their goal is to do even more, and we all win !

THE BAD: Supply Problems Summarized. Hat tip to Elliot Eisenberg for this synopsis:  “The home ownership vacancy rate is 0.9%, the lowest rate since at least 1956. The rental vacancy rate is 5.8%, the lowest rate since 1984. Existing inventory is 1.27 million, the lowest October reading in over 20 years, built new inventory is at its lowest level since at least 1973, and the cost to buy a single-wide manufactured home went from $55,000 pre-Covid to $70,200. Talk about a supply problem!”

THE UGLY: The coming maelstrom called election year politics, with its childish noise, distraction, strutting, and finger pointing. Yet, my continued hope and prayer is none of this will stop each of us from voting. We are learning the importance of becoming informed voters and the significance of our vote. The country, each state, and each locality belong to the people. It is not meant to be owned by special interests, secret fundings, nor ballot manipulations. It time to take charge. 

Planning and Preparation 

Are our market peaking – stocks, bonds, real estate? Each of us has a different view and it is what makes the market. It’s what presents opportunities and key to our planning and preparing for your tomorrow. With this, we strive to meet you where you are. Our goal is to bring to the discussion, a full a set of solutions, meant to enhance your view of the market.

What We Do – Why We Are Here – Why call Mike

We know how to explore and carefully examine the many options open to real estate. We scrutinize for safety and prioritize what is most feasible for you. It is how we build a trust relationship with you as you set your goals on building wealth and a secure future for you and your family. 

Small Business: We love small business and provide loans offering a full array of financing.

Residential and Commercial: We offer strong lenders and a full package of lending options.

Tax-deferral strategies:  Most investment portfolio are dynamic in nature, subject to change or even surprise. With this, a solid suggestion is to keep updated as to changes in tax law. With this, is a key question: “Pay taxes now” or keep your cash working by, “deferring projected capital gains tax”? If best to keep your capital working for you, today, let’s discuss best available options, plans of approach, and professionals best able to bring it all together. 

Question: Why payout up to hundreds of thousands of dollars ( even Millions ) today, when you have the options, tools, and ability to keep your hard earned money working for you and your estate today. If it is time to talk, to plan ahead, let start today, I am ready. Call today. 

What We Do: Our role is to explain and bring clarity to time-tested strategies able to keep your money working for you. For me, this presents a solid opportunity to keep your cash and build wealth. It is a profitable use of your valuable time. Let’s talk. 

Tools: We offer multiple proven tools and methods for highly appreciated holdings. The strategies of success that keep your cash in your proven hands. With this, we offer our highly qualified and knowledgable professionals. This combination is the defining key to your success. 

Retirement: Like myself, as we age, real estate becomes more personal. If you agree, let’s talk. Together, we can help find answers and solutions to questions about a too soon, tomorrow. We can start today. We can address a range of questions, from working at home, to a multitude of retirement options. Our effort is to bring clarity to important real estate planning issues.

Our Purpose:

Be insightful and practical. 

To Work with you, finding the best answers and solutions. 

Straight Forward and No short cuts. 

Success begins with solid preparation and a proven professional – Mike Ryan. I know the ropes and am a proven advocate. I have the needed insight and experience for success. Best, I love to see my clients achieve their goals. Call us – the professional team who stands with you. Call today. We are ready. 

Thank you and continued blessings. 

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