Housing Shortage Is Likely Coming, Report Says

Within the next decade, 16 million new housing units will be needed to meet population growth and shifting demands, according to Harvard University’s Joint Center for Housing Studies in its latest annual "State of the Nation's Housing" report.

That means household growth, which has dropped drastically in recent years, will need to greatly reverse its trend to meet the forecasted spike in demand. From 2007-2010, household growth averaged about 500,000 per year--less than half the 1.2 million annual pace averaged prior from 2000-2007.

To absorb the current rate of foreclosed and distressed homes plaguing most markets, a more normal rate of household formation is critical, according to the report. However, household growth partially has stalled as young adults have delayed home ownership and immigration has slowed.

As such, in recent years, builders have drastically cut production of new homes.

"With inventories of new homes at historic lows, a turnaround in demand could quickly result in tighter markets," the report notes. "Over the longer term, the number of younger households is set to rise sharply, supporting growth in the population that fuels growth in both new renters and first-time buyers. The path of the economy and evolution of the mortgage market will determine when and if this increased demand materializes."

The report predicts a need for greater housing units for several reasons. For example, the report projects demand for 1 million new homes a year is needed to meet population growth in the coming decade. The report also predicts a surge in smaller homes, estimating that 3.8 million baby boomers will be looking to downsize their homes within the next decade. Also in adding to the increase in housing units needed, Immigration growth, the need to replace existing homes, and demand for second homes will contribute to rising demand, the report notes. Therefore, researchers conclude at least 16 million new housing units will be needed over the next decade.

Source: "Harvard: Real Estate Recovery Hinges on Return of Demand." Inman News (June 6, 2011)

A Simple 10 word email that will revive dead deals from months past.

Here is a simple 10 word email that will revive dead deals from months past.

First, I read a study and it said that over 50% of people that inquire about a purchase, will proceed with what they asked about, within 18 months.

But get this, only 15% of them will do so in the first 90 days.

That means it's crucial to stay in contact with them.

Of course the only way to do that is to have an automatic system in place to stay in
contact with them.

Ok, we all know how important it is to stay in contact, but I am going to give you a
simple email to send out to capture the dead leads that haven't taken action yet, even if you haven't stayed on contact with them.

Here is the email to send out, and then I'll explain why it is so effective.
------------------------------------------------
Subject Line: A quick question for you
Body of email: ‘'Are you still wanting to buy a house in <:put city here>?'’
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You may be tempted to add to this email, but don't. It already has 3 key things going for
it.

1. It's short
2. It's personalized
3. It's expecting a response

Send out this email and then tell me how well it worked out for you.
This is a simple strategy that costs nothing to implement!!!


Posted by Joseph P. Mazzei at www.mymortgagebroker.blogspot.com

4% 15 Year Fixed Officially Available!! No Points!

That's right, now you can get a 15 Year Fixed Loan @ 4% (apr 4.228). Here are some of the requirements to get this loan: Primary Residence, Rate and Term refinance, LTV 80% or less, Loan Amount $150,000 or greater, credit score 720 or greater, and 1 % Origination fee, NO discount points or processing fees. Other restrictions may apply, please call for details. P.S. If you would like to eliminate the origination fee, the rate would be 4.25% (apr 4.329) with a possible credit back to you towards closing costs.

Interest Rate Update: 4.5% 30 year Fixed

4.5 % Percent is available again, although, as usual with certain restrictions. But, if you are a borrower with excellent credit that has been waiting to refinance, now is the time. Here is a sample of the requirements to obtain this rate: Primary Residence, Rate and Term refinance, 70% Loan to Value, Middle Credit Score of 720 or better, and a loan amount of 200K or more. The Cost for this rate would be approximately 1 percent of the loan amount. I say approximately because rates change every day, sometimes they change several times throughout the day. So if you would like to know if you qualify for this rate or better, please feel free to give me a call. There is never any obligation and it doesn't cost a dime to talk to me.