Your August Letter From My Heart, with the Good Bad n’ Ugly

Good morning to Summer vacations and trips!

Don’t Wait !!

Home buying continues healthy – Home refi’s are responding to higher rates

Recent News

– Appreciation: San Jose is touted as one of the larger value-drop regions – sensitive to increasing interest rates and a declining stock market. This holds true for the local Bay Area, with the stock market a strong driver in property values – both up or down. 

– Inflation: Current expectations are for a softening, in the face of still blistering inflation – consumer and producer indexes. In this political year, hitting Federal Reserve inflation targets may not become clear, until after November elections. Until then, one can expect and watch for meaningful increases by the Fed, in the underlying Fed Funds rate.

– Inventory: Carefully tracking the ‘normal’ seasonal increase. Typically, it should peak in the next month or so. Yet, the recent sharp drop in the stock market makes such efforts difficult, at best. Some suggest “homes-for-sale” will increase, as people try to beat rising rates, and move on. Others predict potential Sellers will hold back, waiting for more stable numbers in both mortgage rates ands stock market. 

Bottom Line: 

Interest Rates Are Up – ACT NOW!

Key to Success: Being well prepared. It lets your the Realtor and the Seller know your readiness and commitment. It is the first step in turning your dreams into reality. For certain, don’t let the “All Cash buyer” be too concerning. Most Sellers like – even prefer – the hands-on experience of a more traditional Home Buyer. Homes are personal and families are part of the American heritage.

Bottom Line:

Call today and let’s prepare for the Summer Home Buying Today.

Be ready today. A strong loan application is a winning attitude.

It strengthens your Realtors efforts in selling you and your offer 

to be the winning offer. Being “best” prepared is sound advice. 

Interesting News We Can Use

Forbearance and Foreclosures: Good News. Numbers remain very, very low – great for homeowners. Yet, if foreclosure is a possibility, a new loan is possible. Not always pretty, but if the priority is Saving your home. Let’s talk. Sooner the better.

Interest Rates: The short answer: Rates are up – likely moving even higher, near term. 

Conventional loans: Tracking low 5’s. Cash-out refinance and investor loans run a bit higher. 

VA rates and FHA ratesIf a Vet? Call today.  Fixed rates in the high 4’s. Plus Veterans refi special: 1) Refi from conventional loan into a VA loan, and 2) Rate-reduction refi’s have NO income, NO asset documentation.  NEW rule for Veterans, even a 1 % service related disability = NO VA funding fee !

Jumbo Rates: 30-year fixed: Low 5’s. 5-year fixed then adjustable: Low 4’s.

Builders Numbers: Coming in lower and in spite of the lack of overall supply, many builders are offering incentives – for the existing stock. Inflation and rising interest rates are the primary cause for the increase in contract cancellations.

Employment: The canary in the coal mine? Initial Jobless Claims are slowing creeping upwards, as is the continuing benefits numbers. Add to this, the number of companies starting layoffs, and this can portend a softening jobs market.

The Good, the Bad, And the Ugly

THE Good: Nationally, the housing market remains strong – at least for now – June 2022 vs. June 2021. Herein, 52% of homes sold above list vs. 53 % last year. Homes that sold, 18 days vs. 18 days. 45 % of homes going into contract, were within 2 weeks, and 32 % in the first week. Average current list-to-sales price was 101.9 %, and last year, 102.2 %. Good numbers, in the face of the many signs of the market beginning to slow. 

THE BAD: Inflation is in everything, – especially all energy prices. We see smaller portions being sold for the same price in retail, and restaurants. Even in grocery stores, where shelves are not fully stocked.  Key factor:Government mismanagement of priorities. It is coming home to roost and will be with us, for a while. Votes and vote counting matter. 

THE UGLY: My constant complaint: Infrastructure. Many proclamations and government programs, but where are the results promised. Opportunities have been lost and now the looming recession makes meaningful progress less likely. Are we going to hold over-paid elected officials, accountable? At a minimum, agree upon more recycling – batteries, tires, metals, and other consumables – along with water usage, storage, and reclamation projects. 

Planning and Preparation 

Should one invest in stocks, bonds, real estate? Each person has a different view, often based upon comfort levels and sense of risk / reward. It is what we call the market place. It is key to one’s “planning and preparation”. It is here, we bring our expertise and experience. Ours is to complement your perspective. Our goal: Bring a full range of meaningful options that enhance your vision, based upon todays market realities. Call today. Let’s set a time. 

Why call Mike

What We Do – Why We Are Here

We know how to explore and carefully examine the many available real estate options. We scrutinize for safety and prioritize the most feasible. It is how we build a trusted relationship with you, as you grow your wealth and secure a solid future – for you and your family. 

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

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

Tax-deferral strategies:  Investment portfolio tend to be dynamic in nature, subject to change and surprise. It is why it is important to keep updated, as to tax law. Herein, is a key question: Pay taxes today or keep your cash, working for you? How? By “deferring projected capital gains tax”? And if keeping your capital – working for you – sounds good, let’s talk. Let’s discuss the best available options and plans-of-approach. Best: We have the professional team who know how to bring it all together. Details matter and they know all the small details. 

Why: Why payout up to hundreds of thousands of dollars – even Millions – when there are tools to keep your hard earned money working for you – and your estate. Interested? If so, now maybe a good time to talk – to start planning for tomorrow. Tax planning is a good strategy, especially with new laws wanting to stop you from passing highly appreciated real estate, onto your heirs. Let’s talk. Your estate matters.

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. One that is worthy and a profitable use of your valuable time. Let’s talk. 

Tools: We offer multiple tools and proven methods for highly appreciated holdings. The goal: Keeping your cash in your proven hands. Our team offers highly qualified and knowledgable professionals, are ready to make it happen. 

Retirement: Like myself, as we mature, 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 best answers and solutions

Being 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 offer time-tested insights and experience. 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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