Deeds and Leases

With interest rates at levels not seen since the end of World War II, the urge to refinance is terribly strong. And why not. Loans made a year or two ago are expensive in comparison, and the financing costs can be recaptured in a few years.

Radio and tv ads beat it into our heads to refi. “it’s easy! No appraisal fees! Only $499 closing costs!”.

Well it’s all bullcrap. What a surprise.

If you bought your House 20 years ago and have loads of equity and great financials, yes refinancing is probably for you. But if you bought 18 months ago with a 3.5% down FHA, and market values have continued to decline, no matter how good your credit is you are not getting a refi.

Quite simply you have no equity.

That might be the extreme but you see the point. Even a 10% down buyer who purchased recently will probably run into an appraisal issue, and the lack of equity will doom the deal. Only the owner with lots of equity AND sterling financials will get the loan.

If you feel you are a good candidate, this is the time to do it. Rates are at giveaway levels so take advantage. Just do not be suckered by the media into thinking it is 2003 again. It is not.

The Parkway will be closed from Bronxville to the County Center from 10 am to 2 pm. Riders, joggers and walkers are welcome. Bring your helmet, it is a beautiful day and enjoy!

I realize that brokers are eternal optimists; we have to be or we would end up in insane asylums, especially after the past couple of years. However I sense a glimmer of hope on the horizon. Not only have the past couple of years have been extremely challenging, but in the near term this past winter has essentially crushed the market. Unless you had a Land Rover and the fortitude of an Eskimo who wanted to look at a house this past January or February?

Now that trees and flowers are blooming, and we may actually have back to back days over 70 degrees, I have a sense that buyers are going to come out of the woodwork ready to buy. I have seen houses and coops come on the market at very sensible prices recently, and combined with the continued low interest rate environment, this makes a compelling environment for deals. Weekend traffic is way up.

Does this mean it will be easy? Of course not. The value has to be there, and buyers are still nervous and value conscious. Banks are still pains in the neck. But absent $5+ gallon gas prices or an even greater upheaval in the Middle East, the late spring and summer could be busy.

But let’s be clear: busy yes, price appreciation, no. Not yet. We are quite some time from that occurring.

Talk about rarity. Over a quarter acre of R3-1 zoned residential land plus more underwater waiting for redevelopment! Prime location in a quiet enclave just south of Silver Beech and steps to Edgewater Park and SUNY Maritime. This parcel has lots of potential so please bring your architect and take a look! Contact me at pharris@houlihanlawrence.com for more information.

The woodwork in this house is beautiful! Heart of pine floors, tall windows, stunning pantry and two gorgeous fireplaces evoke an era gone by. Click on the link below to read more about this wonderful home and all that it offers! OPEN HOUSE SUNDAY APRIL 10 1-3 PM. Want to find out more information? Email me! pharris@houlihanlawrence.com

Although this is a real estate blog by far the most popular post is my bicycle Sunday announcement. Quite frankly I do not know why except that the information is surprisingly unavailable. The only way I was able to find out anything was to drive past the sign on the Bronx River Parkway.

The spring dates are as follows:

May 1, 8, 15, 22

June 5, 12, 19, 26

Fall dates are not yet announced.

Briefly the Bronx River Parkway is closed from Bronxville to the County Center in White Plains from 10 am to 2 pm. It is a wonderful opportunity for families to ride safely and have fun.

This event is just one of many reasons why living in Bronxville Village and the Bronxville PO/Yonkers neighborhoods are so popular. We offer so much!

Please wear a helmet and have a great time!!!

I spent a very rainy day showing houses to friends of mine in Yorktown Heights today. I show there on occasion because I am impressed by the value offered.

In the current market you can easily find a 3 bedroom, 2 bath on a parcel of land ranging from .25 to 1 acre at prices from $350,000 to $450,000. These are not short sales or bank owned property prices.

Just try and do that down county! Yorktown offers real value!

A&P announced today that they are closing several stores in the region, including one in New Rochelle. LoHud has reported that the Pelham Road store will close and the Wykagyl store located in the Quaker Ridge Shopping Center will remain open.

Having spent almost my entire life in the Wykagyl neighborhood, I could not imagine not having a supermarket. When I was a kid we had two: A&P and Daitch Shopwell, located in the current CVS space.

While I feel badly for the residents of Pelham Road, I am happy for Wykagyl. Now if they would only hire some decent people!

Improving employment numbers and consumer sentiment continue to suggest that this spring may have “legs” in the real estate market. There is so much pent up demand I am hopeful that it will not take all that much for buyers to commit….deedsandleases
_________________
Feb. 11 (Bloomberg) — Consumer confidence rose in February to the highest level in eight months as decreasing unemployment lifted Americans’ spirits.

The Thomson Reuters/University of Michigan preliminary index of consumer sentiment for the month climbed to 75.1 from 74.2 in January, in line with the median forecast of economists surveyed by Bloomberg News. Another report showed the trade gap widened in December for a second month on a jump in oil imports.

The sentiment data showed households’ perceptions of the economy and job market turned positive this month for the first time in seven years, signaling consumer spending may keep contributing to the expansion. The increase in confidence and Egyptian President Hosni Mubarak’s resignation helped stocks advance, extending a second straight weekly gain.

“At the end of the day, people spend on how they feel about their job prospects, and additional gains in confidence are likely to provide further support for spending,” said Millan Mulraine, senior U.S. strategist at TD Securities in New York, who projected the sentiment index would climb to 75.

If internet inquiries about listings can be viewed as a leading market indicator then possibly, just possibly we may have the makings of a decent spring market. I may be jinxing it but in the past couple of weeks requests for information have poured in. Has it amounted to anything concrete yet? No, but in a market that has been moribund for the past 18 months it is a positive sign.

The positive economic numbers coming out of Washington and hopefully a spring thaw someday will bring the buyers out this spring. Even though interest rates have trended up a bit they are still so low on a historical basis that they should not stop a buyer from making a deal.

Prices are incredibly low. Prices depending on submarket have dropped between 20 and 35% during the recession and you really cannot go wrong.

So send those requests for information in, and I feel positive that along with those daffodils there will be a lot of contracts!