I am posting this image which I got from the latest issue of Banker and Tradesman. I think it makes it easy to see just how long we have been in a declining market.

Do you have any news articles you would like to see published? Do you have a current event that you want to have reach people? Send me a copy and I will make sure it gets published ~ some restrictions will have to apply ~ email it to me at bobbiefiles@berkleymass.com

For the latest information of homes for sale visit www.berkleymass.com

Bristol County - Close up

I know the type appears small but just click on the image and it will enlarge.

As you can see from this chart, all towns in Bristol County have had price corrections. Raynham has had the largest reduction and Easton with the least, based on sales recorded at the Registry of Deeds. Not only have the prices gone down but the number of homes sold has also considerably dropped.

The latest housing numbers are released!

I wanted to share with you the latest housing and economic data released by N.A.R. (National Association of Realtors). These figures are through July ~ so they do not include the time frame with Countrywide's bad financial situation ~ and the information is compiled from nationwide data.

I sometimes wonder when I see announcements such as this if anyone has visited my neighborhood to get information. Our area has not seen an increase in housing starts, and I really don't see that consumer confidence is higher than earlier this year. Quite frankly I see people as more nervous about the economy and their job security. However, it does give us all a reason to be hopeful that we are almost, or at least on our way, out of this mess.

We'll see what the numbers look like at the end of August and September when the impact of some of the largest lenders going belly-up show. If the numbers still remain positive than we can all start breathing and hoping by the end of next year this will actually be considered the past!

HOUSING & ECONOMIC INDICATORS

		Current Figures	Time Period Covered	Next Release Date
Existing-Home Sales		SAAR* of 5.75 million units -- down 3.8% from previous month. Median price up 0.3%	June	8/27
Pending Home Sales Index		102.4 -- up 5.0% from previous month	June	9/5
New-Home Sales		SAAR* of 834,000 units -- up -6.6% from previous month	June	8/24
Housing Starts		SAAR* of 1.381 million units -- up 2.3% from previous month	July	9/19
Housing Affordability		104.4 -- down 5.4% from previous month	June	8/30
Mortgage Purchase Application Index		465 -- up 3.9% from previous week	Week of 8/10	8/22
Fixed-Rate Mortgage Rate		6.62% -- up 2 basis point from last week	Week of 8/16	8/23
GDP Growth		3.4% -- up from 2006:Q2	2007:Q2	8/30
Consumer Confidence		Surged 8.7 points to 112.6	July	8/28
Employment Situation		up 92,000 jobs from previous month	July	9/7
Consumer Price Index		edged up 0.1% from previous month	July	9/15
Producer Price Index		up 0.7% from the previous month	July	9/18
Retail Sales		up 0.3% from previous month	July	9/14

*SAAR = Seasonally Adjusted Annual Rate

Copyright NATIONAL ASSOCIATION OF REALTORS®
Headquarters: 430 North Michigan Avenue, Chicago, IL. 60611-4087
DC Office: 500 New Jersey Avenue, NW, Washington, DC 20001-2020
1-800-874-6500

Helping Borrowers Expected to Become Easier for Lenders

I just got this article out of the latest edition of Banker and Tradesman. If you know of anyone who is having difficulty paying their mortgage this is an option that may help them. I have a lot of additional information available on how to prevent a foreclosure, please contact me ...don't go through this alone.

August 13, 2007
By Jeff Haynes,Reporter

Homeowners facing foreclosure just got a potential lifeline from the accounting department.
A recent professional opinion on accounting standards should make it easier for lenders to restructure loans to borrowers likely headed toward foreclosure. Focusing specifically on loans that already have been sold to the secondary market, the opinion states that lenders are not required to repurchase troubled loans in order to rewrite their terms.

Changes to the loans could include lowering the interest rate, lengthening the term of the loan or other steps that would make the loan more affordable to the borrower. In addition to helping borrowers, the change may help investors in those loans, too.

For investors, “the benefit will be that they are going to lose less money,” said Robert B. Segal, chief investment officer for Danvers-based J. William Mantz Investment Advisors. Even though the yield will be less if a troubled loan’s interest rate is dropped, for example, from 8 percent to 6 percent, “investors could have a larger principal loss if that loan goes to foreclosure,” Segal said.

Eric Fischer, a partner at Boston-based law firm Goodwin Procter Inc. who specializes in banking regulations, agreed that reworking a loan can save money. “It’s more expensive to foreclose than to lower the interest rate,” Fischer said. Foreclosure, he added, is “a messy, expensive prospect.”

The green light for lenders to rewrite troubled, securitized loans without repurchasing them comes from the U.S. Securities Exchange Commission; its chief accountant, Conrad W. Hewitt; and the Norwalk, Conn.-based Financial Accounting Standards Board, whose standards are officially recognized by the SEC. The opinion was written in response to an inquiry from the House Financial Services Committee chaired by U.S. Rep. Barney Frank, D-Mass.
The request outlines the committee’s efforts to help prevent foreclosures by rewriting troubled loans, and the complications that securitizing loans creates for lenders trying to rewrite those loans.

“A number of parties have brought to our attention that [Financial Accounting Standards Board Statement No. 140], the accounting standard that guides securitizations, may not clearly state at what point a loan may be modified – when default is reasonably foreseeable or once default or delinquency has already occurred,” states Frank’s letter. “The lack of clarity may be leading some institutions to withhold making some loan modifications that may benefit borrowers – and bondholders – for fear of being found in violation of FAS 140.”

The response from the SEC was that lenders could indeed rewrite the securitized loans “when default is reasonably foreseeable,” and without having to buy them back. “Specifically, there appears to be a consensus in practice, and it is our view that entering into loan restructuring or modification activities (consistent with the nature of activities permitted when a default has occurred) when default is reasonably foreseeable does not preclude continued off-balance sheet treatment under FAS 140,” wrote Hewitt in the response.

‘A Constructive Approach’

Frank liked the SEC’s response. “This is a constructive approach that will allow mortgage lenders to provide help at the earliest possible moments to people who might otherwise be trapped in bad loans or forced into foreclosure,” the congressman said in a prepared statement.
The entity that winds up working with the borrower to restructure the loan, however, may not be the original lender, but the company with servicing rights on the loan.

Banks can sell loans without recourse, meaning there is no obligation to buy them back, said Christopher Dannen, vice president and residential lending sales manager for Bridgeport, Conn.-based People’s United Financial Inc. If the bank has sold both the loan and the servicing rights, “there’s not a lot of incentive for us to get into loan modification,” Dannen said. But People’s United does keep some of the loans it originates, and evaluates on a case-by-case basis if a loan needs to be restructured, he said. “If we own the loan, we own the asset, and it behooves us to do that,” said Dannen, who is also second vice president of the Connecticut Mortgage Bankers Association.

It’s an approach Segal understands. “Typically, banks don’t want to be property owners,” Segal said. “It’s just expensive to go through the foreclosure process. If [borrowers] can stay in the house, it’s beneficial to everyone.” “I think the more the federal government gets involved, the bigger incentive [lenders] will have,” Segal said. “Ultimately, the goal of Congress will be to help consumers stay in their homes.”

While industry observers believe the opinion rendered by the SEC will make it easier for borrowers to get their troubled loans rewritten in more manageable terms, the success the borrowers will have under those new terms remains to be seen. “Making such accommodations does not guarantee the loan won’t eventually wind up in foreclosure,” Fischer said. “So often, dropping a loan to a 6 percent interest rate isn’t a long-term solution. If the economy turns bad, or if the loan itself is bad enough, lowering the interest rate or lengthening the term of the loan is not going to solve the problem. It’s just going to delay it.”

(c)2007 The Warren Group Inc., 280 Summer Street, Boston, MA 02210. All rights reserved.

Current Market Trends

HOUSING

Where Housing Is Headed

A look at fundamental indicators in 28 major real-estate markets. (See related article) — Compiled by James R. Hagerty, 07/25/07

Metro area	Recent price trend*	Change in housing inventory**	Employment outlook***	Loan payments overdue****
Atlanta	Down	+43%	Strong	4.6%
Boston	Down	-16%	Weak	3%
Charlotte, N.C.	Up	-	Strong	3.2%
Chicago	Down	+37%	Weak	3%
Dallas	Down	+8.5%	Very Strong	4.3%
Denver	Down	-5.2%	Average	3.4%
Detroit	Down	+15%	Very Weak	5.1%
Houston	Flat	+18%	Very Strong	4.2%
Jacksonville, Fla.	Down	+33%	Average	3.7%
Las Vegas	Down	+21%	Very Strong	4.8%
Los Angeles	Down	+28%	Weak	2.9%
Miami	Down	+43%	Average	5.3%
Minneapolis	Down	+11%	Average	3.3%
Nashville	Down	+35%	Average	3.4%
New York	Down	+4.5%	Weak	3.3%
Orange County, Calif.	N/A	+22%	Average	2.4%
Orlando	Down	+41%	Very Strong	3.7%
Philadelphia	Down	+11%	Weak	2.7%
Phoenix	Down	+20%	Average	2.9%
Portland, Ore.	Down	+57%	Strong	2.1%
Raleigh-Durham, N.C.	Up	+17%	Strong	2.5%
Sacramento	Down	+7%	Very Strong	3.8%
San Diego	Down	+0.3%	Average	2.8%
San Francisco	Down	+16%	Average	2.3%
Seattle	Flat	+55%	Strong	1.8%
St. Louis	N/A	+31%	Weak	3.3%
Tampa	Down	+29%	Strong	3.7%
Washington, D.C.	Down	+11%	Average	2.7%

* Overall metro area price trend compared with prior month, based on a June survey of real estate agents by Banc of America Securities. Actual price movements often vary sharply within a metro area.

**Change from a year ago in the number of single-family homes, condos, townhouses and co-ops offered in multiple-listing services at the end of June 2007. New York includes Manhattan, Brooklyn, Queens, northern New Jersey, Long Island and Fairfield County, Conn. San Francisco includes the city plus eight surrounding counties. Washington includes the city plus Maryland and Virginia suburbs. Dallas includes Fort Worth and other North Texas towns.

***Job growth projections by Moody's Economy.com for the two years ending in mid-2009.

****Percentage of mortgage loans 30 days or more delinquent in latest quarter, based on data from Equifax and Moody's Economy.com. U.S. average is 3.3%.

This is from the latest addition from the realestatejournal.com

The long view of the market

When thinking about the real estate market it is most important to take the long view.

Real estate is cyclical. We are two years (yes 2 years) into a downturn. Despite all the gloomy headlines now, eventually -- and possibly as early as next year -- the market will turn around. Think back into the past and you will remember this same situation 15 years ago (remember the late 80's early 90's?) If you plan to live in your house for more than a year or two, there is no reason to be "scared to death." Instead, rejoice that you are a buyer right now and not a seller.

And sellers don't think that you are getting soaked by the buyers.....as most sellers are buyers too! What you may lose on one end you will gain on the other.

The current financial situation......

I am sure you all have heard by now, but in case you haven't, Countrywide is in financial trouble.

Why am I reporting this? Well, Countrywide is the biggest mortgage lender. This is a major blow to the housing market. If Countrywide doesn't have the money available to lend there will be no mortgages. Countrywide is borrowing eleven million dollars to help alleviate the financial crisis, and they will more than likely start selling off their current mortgage portfolio to relieve the burden. However, that is only a bandaid.

This will have not only a trickle down effect it will have a flood gates open effect. If you are in a situation to purchase a home YOU HAVE THE POWER!!! Hear me loud and clear you have what is needed now and you can be greatly rewarded for that!!!

Sellers need to know that pricing is becoming a more important issue everyday! YOU MUST HAVE YOUR HOME PRICED ACCORDINGLY IN ORDER TO SELL!!!! Whatever the sold comps told you your house was worth 3 months ago you need to subtract between 5 - 10%.
Depending on the town or city that your home is in and how significantly the prices have been dropping every month is how you need to price your home. Example) 3 Comps for your home sold, 1 last month for $350,000 and 2 sold 2 months ago at $ 356,000 and $355,000. Your asking price needs to be NO higher than $344,900 with an expected sale price of $335,000. Prices are still declining and there is a lot of competition from the amount of foreclosed properties on the market.

How to improve curb appeal!!

A large percentage of home buyers decide whether or not to look inside a house or take it seriously based on its curb appeal—the view they see when they drive by or arrive for a showing. You can help make sure they want to come inside your house by spending some time working on the its exterior appearance.

It's difficult to look at our own house in the same way that potential home buyers do, because when we become accustomed to the way something looks and functions, we can't see its faults. Decide right now to stop thinking of the property as a home. It's a house—a commodity you want to sell for the highest dollar possible.

Curb Appeal Exercise

The next time you come home, stop across the street or far enough down the driveway to get a good view of the house and its surroundings.

1. What is your first impression of the house and yard area?

2. What are the best exterior features of the house or lot? How can you enhance them?

3. What are the worst exterior features of the house or lot? How can you minimize or improve them?

Park where a potential buyer would and walk towards the house, looking around you as if it were your first visit. Is the approach clean and tidy? What could you do to make it more attractive?

Take photos of the home's exterior. If you have a digital camera, view the color versions first, then remove the color and look at it in black and white, because it's easier to see problems when color isn't around to affect our senses.

Make a list of the problem areas you discovered. Tackle clean up and repair chores first, then put some time into projects that make the grounds more attractive.

• Kill mold and mildew on the house, sidewalks, roof, or driveway.

• Stow away unnecessary garden implements and tools.

• Clean windows and gutters.

• Pressure wash dirty siding and dingy decks.

• Edge sidewalks and remove vegetation growing between concrete or bricks.

• Mow the lawn. Get rid of weeds.

• Rake and dispose of leaves, even if your lot is wooded.

• Trim tree limbs that are near or touching the home's roof

MARKET REPORT FOR BERKLEY AS OF AUGUST 4, 2007

Berkley, MA

Total Market Report is provided to give you an overall picture of the current market conditions.

The following report is for single family homes sold in Berkley from May 4, 2007- August 4,2007.

Single Family Homes


Number of Homes on Market
49


Average Days on the Market
156


Average Sold Price
$349,073 $356,473 AS OF JUNE 24, 2007***


Average Asking Price
$433,565


Lowest Price
$149,900


Highest Price
$1,095,000

MY LAST MARKET UPDATE WAS JUNE 24 AND THE AVERAGE SALE PRICE WAS $356,473 THIS IS A DECREASE OF $7,400 OR 2%. THAT MEANS THE MARKET PRICE IS STILL DROPPING BY APPROXIMATELY 2% PER MONTH. PRICING YOUR HOME AT OR 2% BELOW MARKET IS WHERE YOUR HOME PRICE BELONGS NOW IF YOU WANT TO SELL YOUR HOME IN A TIMELY MANNER FOR MAXIMUM MARKET VALUE!!!

Moving On ~ It's more than just the physical stuff!

Moving is tough! You’ve got to sort, organize, pack, label, labor and then bring all of your belongings to your new place. But moving on is more than just moving out and moving in. There is a lot of emotion that goes with you too.
The beauty of making the physical move though, is that it forces you to sort through a lot of the emotional clutter that might need sorting and organizing too anyway. And just as you make decisions about what isn’t going to fit into your new home and your new space, you have an opportunity to choose what other parts of your life you no longer need as well.
If you are moving, take the time to really sort through what you are bringing with you, on all levels. Choose wisely what you want to live with. Even if you are not moving to a new location, you can take the time to evaluate both your belongings and your attitudes. Decide what fits now and eliminate the rest.
As you let go of things that no longer fit, the new things that belong in your life now will have room to come in.

I have to start somewhere

This is a beginning for me. You would think that for someone who has diarrhea of the mouth and just never shuts up, this would be easy. Well, I guess my never ending mouth has trouble reaching my fingertips!



My goal is to have this be a community where we all can ask questions, exchange thoughts, or just vent. Our area has a lot to offer and every person experiences things differently and if we share our experiences we can find new and exciting places to go or things to do.




I had to add this photo. Look closely at the words on the sign...now who will be applying for a job here??? I took this photo myself several weeks back in Bridgewater, and think it is so hysterical that I have to share it!!!