Although mortgage rates are still above the record lows, 30-year fixed mortgage rates are decreasing. These rates do vary state by state. Fifteen-year fixed mortgage rates fell as well this week, as did 5-1 adjustable rate mortgages. Georgia’s thirty-year mortgage rates were the lowest, at 5.32%. At this time last year the average rate for a thirty-year fixed was 6.37%. The average rate this week was 5.2% – not quite as low as the record low of 4.78% from early spring. Rates rose this past June due to the yields on long-term government debt climbing; investors became concerned that large amounts of extra government debt would trigger inflation. Experts speculate that mortgage rates fell this past week from market concern due to the weakening labor market. Keep in mind that the above rates do not include the add on fees called “points”. The average nationwide fee for a 30-year fixed rate mortgage and 15-year fixed rate mortgage averaged 0.7 of a point, while 5-1 adjustable rate mortgages averaged 0.6 of a point.

For more information on mortgage rates go to Zillow.

If you are finding yourself in a position where you are having trouble making your mortgage payments, you may be able to ask your borrower for a modification. A refinance is more advantageous but if you are ineligible due to inadequate income, a low FICO score, have little or no equity in your home or are behind in existing payments, a mortgage modification may help you. Here are some things to know as you begin the process:

1. Answer all of the questions on the servicer’s questionnaire. If they do not get answers to all of their questions, they may decide not to help you based on the inadequate information they have received from you. 
2. Answer all of these question as accurately as possible. Many of these questionnaires are not borrower-friendly, so if you need help answering a question ask for it. The servicer could reject you based on not receiving enough information.
3. Many servicers prefer you to fax all of your information to them, although some still accept it by mail.
4. When you do fax information, make sure it gets to the right person by labeling each page that you fax with your name and mortgage number in bold at the top of each page.
5. To avoid being overlooked for a “special program” such as “Fast Track Solution” and (MHA) program, be sure to include the reason why you believe you may be eligible in your hardship letter.
6. Due to the large number of folks in need of mortgage help, the number of people hired to do these transactions has greatly increased over a very short period of time. Hence, these servicer employees are very likely newly trained and are doing much of the work manually. It can’t hurt to stay on top of them by calling them to follow-up on your loan.

For more information go to MHA program  or for information on the ”Fast Track Solution” go to Wells Fargo.

If you are concerned about your credit score, there is new information about what credit scoring companies deem important. One change that is being made is that there is a significantly more negative importance on a person that carries their credit balance near the limit. Experts are suggesting that people try to keep all balances owed near 30% of available credit. Another important fact is that you should never close an account with a zero balance. If you close the account, it can alter your total Debt to Credit ratio. It works in your favor to have a long credit history. Also, do not apply for too many credit cards, especially from companies that do not set a spending limit.  To raise your score, always pay your debts ON TIME. Your payment history makes up 35% of your score. A late payment can actually drop your score by up to 100 points and these late payments could last on your report for seven years. Bankruptcies last for ten years. If your score is below 620, people assume you are a bad risk dooming you to credit denial, sub prime interest rates, higher home insurance premiums, and possible checks form landlords withholding a lease.

To order a free report go to annualcreditreport.com.

On the Eastern Shore of Mobile Bay, the community of Spanish Fort saw 8 homes sold in April for an average price of $222,312 ($111.15/ sq ft). One year ago, there were 13 sold for $238,114 ($104.14/ sq ft). Although values have dropped  some, the declines are minimal compared to most other areas locally and certainly nationwide. Surprisingly, days on the market actually got quicker from 106 in April 2008 to ony 60 days for homes sold last month!

There are 395 single family homes for sale in Daphne, with listings averaging $308,657 and $119.12/ sq ft. These are optimistic list prices, as April saw 19 homes sold for an average price of $204,205 ($90.23/sq ft) and 163 days on the market. Compare this with April 2008, when 29 homes sold for an average of $220,865 and $104.46/ sq ft. and 111 days on the market.   Dapne has one of the largest inventories of lovely homes available in the Mobile Bay area, and Barbara Reeves can help guide you into just the right one for you!

The City of Fairhope has a very large inventory, also, with 392 homes for sale. The average list price is $474,005 ($169.93/ sq ft) and these are averaging 160 days on the market. Twelve homes sold in April 2009 for an average of $185,208 or $99.87/ sq ft. Homes that sold spent 279 days on the market, or nine months! In April 2008, there were fifteen sales averaging $407,150 ($152.57/ sq ft).  This is a drop in value of one third. Higher priced homes are simply staying on the market longer and longer with the more affordable homes selling.  The charm and natural beauty of Fairhope have not diminished one bit, and this is an excellent time to enter the market.

April was another challenging month nationwide for housing, and Mobile County had mixed reaction. In the Springhill/ USA area, April saw 8 homes sold for an average of $222,312 ($111.15/sq ft). There are currently 152 active listings averaging $484,080 ($140.97/ sq ft) .  One year ago, the average sales price in Springhill/ USA was $210,315 or $99/sq foot for 20 sales. So, volume is way down, but values are actually staying fairly strong!  And April’s sold homes were on the market in 2009 for 84 days on average, but one year ago they took 106 days to sell.

West Mobile continued to have good volume of sales, with 31 transactions in April, averaging $180,677 or $90.18/sq ft. These homes spent an average of 97 days on the market prior to selling. One year ago, 35 homes sold for an average of $190,923 or $94.77. So, prices in West Mobile have dropped very slightly compared with other areas. The 317 active listings average $256,358 and 112 days on the market. In this market, that is a relatively brisk pace!

The Downtown/ Midtown area of Mobile lost considerable housing value compared with April 2008.  The average of 32 homes sold in April 2009 actually decreased from $155,055 ($87.31/ sq ft) in 2008 to $105,788 and $70.14/ sq ft in 2009!  These homes took an average of 82 days to sell compared with 65 days in 2008 for Downtown and Midtown.

The best news here is clearly for buyers…time to get off the fence and take advantage of prime conditions for homebuying. You have large inventory, low prices and tax incentives! Contact Barbara S. Reeves, REALTOR, to assist you in finding your dream home in Mobile County!

In Spanish Fort, there are 121 homes on the market with an average price of $344,439, unchanged from January’s $344,717. Homes pending sale rose from an average of $314,633 to $320,164. Maybe the most important figure is that of homes actually sold. In February, sales activity rose from 7 homes with an average sales price of $152,357 ($76.31/ sq ft) to 11 homes with an average sales price of $276,914 ($106.38/sq ft).

Down the highway in Fairhope, there are a whopping 423 homes on the market with an average list price of $452,883, slightly higher than January’s $441,318. Homes pending sale dropped from an average of $327,703 to $323,202.  In February, sold home prices dropped substantially from January’s $399,700 or $146.41/square foot to an average February sales price of $205,695 ($112.70/sq ft). This is a 23% drop in average price, which we attribute to the fact that none of Fairhope’s high end homes over $500,000 have sold since December. Typically the aveage price in Fairhope reflects the upper-end homes that are on the market.

Real estate sales in this very popular Southern city have been hit quite hard by the shaky economy. In January 2009, nine homes sold, compared with eleven in January 2008. The big difference is in the average sales price of $254,947 compared with $399,700 one year ago. That translates to $109.30 per square foot compared with $146.41 last year. The median has dropped comparably, as well, from $360,000 in January 2008 to $225,000 last month.  These homes are also spending nearly twice as long on the market than they were a year ago – up to 226 days compared with 117 in 2008. On the bright side, for buyers there are so many lovely homes available now – 410 on the market in January. See them at www.barbarareevesrealtor.com or call Barbara at the link at the top of this page.

Its nomination recently as the second nicest small town in the South is reflected in Fairhope’s ability to hold onto real estate value, with 2008 average home sales prices dropping by only 1.5%.  The price per square foot dropped 7% and the total number of sales dropped dramatically by 47%. So fewer homes sold, but they are holding their values better than in many other areas, including other Baldwin County communities. Many potential home buyers have been on the fence this past year, with uncertainty in the marketplace. The plentiful home inventory and very low interest rates should motivate those to get off the fence and take advantage of the situation. BarbaraReevesRealtor.com can show you a variety of lovely homes in Fairhope as well as links to other important information.

Daphne

It is no surprise that there were fewer homes sold in Daphne in 2008 compared with 2007. The average price per square foot of living space dropped by 5.6% and the average sales price is down by 5%. Compare these figures with the rest of the U.S. According to Case-Shiller’s 20-city index in November, prices dropped 18.2% on an annual basis.  Going back to the high price point in July 2006, homes in these 20 cities have lost up to 25% of their value. Phoenix, San Francisco and Las Vegas have each lost more than 30% in the last year.  The bright side is that with both home prices and interest rates low, renters and others who have been on the fence, can finally buy a home with a lower mortgage payment than they previously dreamed of. BarbaraSellsDaphne.com has all the listings in Baldwin and Mobile Counties for your viewing. Or give Barbara a call on the Click to Talk button!  

Baldwin County saw a total of 1109 home sales in 2008, compared with 1312 sales in 2007. This is a drop of 15.5% in the volume of sales transactions. Average price per square foot of living space dropped by nearly 14% during the year. The time spent on the market surprisingly dropped in the 4th quarter after spiking in the 3rd quarter of the year.  However, the number of sales, the average price per square foot and average sales price all saw dramatic drops during the last 3 months of 2008.

It has been a bumpy ride, but with interest rates at historic lows and the inventory of homes so high, consider getting off the fence and taking advantage of conditions to make your homebuying decision. barbarareevesrealtor.com has all the listings in Baldwin County to help you find your perfect home at a very competitive price!

Quarter	Homes sold	Average $/SF	Average Price	Average Days on Market
Q1	236	$119.58	$228,003	120
Q2	319	$120.65	$243,997	126
Q3	333	$118.06	$253,984	137
Q4	221	$105.07	$220,093	108

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