Real Estate Information Archive

Time is running out on the First Time Home Buyer $8,000 Tax credit.  If you haven't had an opportunity to find out about this program to help you buy your first home you need to contact a Mortgage person today.  The progam ends November 30, 2008 and all homes must be closed by  that date.  However, some buyers have not taken into consideration that  November 30 is the day after Thanksgiving and most Title companies will be closed.  When planning your purchase be sure to plan to close well before Thanksgiving to avoid the rush and ensure your home will close on time.  Don't forget that closings are further complicated by the new HERA rules which require re-disclosure  and an additional 3 - 7 days on disclosure before properties may close depending on the situation.  For more information and clarifcation on these rules contact your Mortage person or call:

Chris Simms - Certified Mortgage Planner

Preferred Home Lending

Powered by Pulaski Banks

314-229-4242 or 314-579-7762

You  don't want to miss out on  this program that may help you  purchasee your next home.  To search for homes register at www.StCharlesHomeHunter.com with the details of our search and we will set up a hunt for your new home in the greater St. Louis area.

Call Mike - 314-849-0921 direct or Pat 314-749-986 direct or email to MikeandPat@Trails2OpenSpaces.com  We look forward to hearing from you.

We talked with team member and Certified Mortgage Planner Chris Simms on where rates are and how buyers are being affected.  With such low rates he is extremely busy refinancing clients but he took a minute to tell us this:

According averages 5ates are sitting at 5% - 5.125% for a 30 day lock on a 30 year fixed.  Assuming excellent credit and low loan to value.  Rates are still at 4.875% and 4.7% for 15 years but we are seeing huge differences on credit scores and loan to values.  For example one client may have a $240K loan on $315K purchase with a great credit score and his rate is at 4.875%.  Where as another individual on a loan of $250K on a purchase of $500 is at 4.75%.  The break appears to be at 200k loan amounts with 60% or less loan to value. 

Market wise the Fed finished up its regular two day meeting determining to keep interest rates low.  They plan to continue investing in Mortgage Backed Securities (MBS) and to invest in 10 year Treasuries (10 year notes, 2 year notes etc.).  This is good news.  This means they are going to do whatever it takes to keep rates down.  If jobs get in order we will have a great housing market.

Purchases are picking up.  Let your friends and family know how cheap rates are.  It's a great time to consider buying. 

If  you have questions for Chris he can be reached at 314-229-4242 or via e-mail at csimms@pulaskibankstl.com

It was one of those crisp Sunday mornings that I drug myself out of bed and headed off to Church.  Following the service I was quite famished and not wanting to partake in the normal Sunday morning donut fare headed out the the door to take a drive to the local Bread Co.  I hopped in old faithful who wasn't feeling so faithful that morning.  Turned the crank and heard nothing but clicks. Ugh!  I marched back into Church but my faithful spouse was already off teaching Sunday School.  This must be my punishment for listening to my stomach rather than going to Bible Class.  Frustrated I headed out the door again and looked aroun.  Well . . .  I could walk.  I really hadn't donned my walking shoes that morning but well, I was hungry.  Off I went. 

As I started down the sidewalk I wondered how far it would go and if it would take me to my beloved breakfast haven?  The first portion of my tour took me through the older part of town past the car wash, the smaller grocery stores in the area, a florist, card shop and a lawyer.  Then on past a few other restaurants I thought for sure the sidewalk would end but it didn't.  It just kept going.  I passed the high school, some new strip malls and thought surely it would end here.  But it didn't as I walked passed the newer large shopping chain grocery and more fast food.  At the corner I could see breakfast across the street.  As I waited for the light to change I thought about how lucky we are to have such a great home town within walking distance of a lot of conveniences.  It wasn't a single development intended to be that way but it had evolved.  A lot to choose from the town is growing in leaps and bounds but still holds in Old Town Charm.  The train still runs through the middle of town and though it may hold us up a bit we still love seeing it.  New Construction homes are every where.  You have your choice of quaint older homes or designing your dream home.

The light changed.  It was a large intersection and as I crossed the street the sidewalk picked up again.  I noticed the sidewalk went past my breakfast place.  I was tempted but couldn't continue.  I had to make a stop.  Rich hot coffe and a breakfast sandwhich my stomach was satisfied but you'll have to wait to find out where the sidewalk ends in Wentzville on my next trip for breakfast.  On the other hand you could call us for a personal tour and we'll show you the homes available in the "Cross Roads of the Nation" known as Wentzville.

Contact Mike and Pat Simms, Realtors, Prudential Select Properties, Licensed Realtors in Missouri at 314.749.0921 - Mike Direct or 314.749.9862 - Pat Direct to list or purchase a home. If you prefer to contact us by e-mail - MikeandPat@Trails2OpenSpaces.com What is your Life Style? - To register a search for homes 24/7 in St. Louis, St. Charles, Warren or Lincoln counties go to www.StCharlesHomeHunter.com. If you would would a comparative market analysis to know the value of  your home go to www.StCharlesMarketValues.com. We would be glad to set you up with our complimentary monthly "Market Snapshot" a property investment profile for your home. Servicing the St. Louis Metropolitan Area contact Mike or Pat for all of your real estate needs.

No longer available this home is located in the heart of O'Fallon.   If you would like to find similar homes register to "total access" and tell us what you are looking for.  We will set up a search to automatically e-mail you new listings as they become available on the market.

Chris Simms, Certified Mortgage Planner had this to say about today's rates in the market:

Rates right now are holding steady at 6^.  I know its not the news you wanted.  But I might have some good news!

Here's the What, Why and How!

What:  Simply investors are nervous.  They aren't sure what "is" a safe investment any more.  No financial institution seems to be worth a dime.  Insurance is no better either (Case in Point AIG the nation's largest insurer).  Stocks can't make heads or tails, besides who says what they are reporting is accurate anyway?  Not to mention its notlike they have to be accurate because if they fail the government will just pick them back up again.  so its got to be putting it in cash, right?  No not exactly.  Besides putting it under your mattress (which you can't do because if your house burns down its gone and how do you know the insurance company will be able to pay out anyway, won't work. 

You can't put it into a money market fund because you aren't sure if that will be safe either.  Besides will the financial institution holding it be safe?  What about bonds and treasuries?  Well as of last Friday Lehman was still an A rated bond.  On Monday they were worth just about nothing.  So our ratings system doesn't see to work either.  Ok treasuries have to be the way to go.  No not really because the yields on treasuries ran negative yesterday, meaning that the cost of the bond was so high that the interest you would receive wouldn't make up for the additional cost, but its guaranteed.  so what do we have left to invest in?  real Estate.  What, did you say the "R" Word?  Yup!  And here is why.  Real Estate is the only investment that you can still buy (and understand) buy declines have been very minimal compared to the rest of the country.  Most of our declines have come from foreclosures and new construction.  Does that mean your house won't depreciate, no but it does mean that we have mush less risk here in St. Louis.  so lets look at the numbers.

You buy a $100K house in Overland (3bed, 1 bath, 1,000 sq ft).  You put down 20% and get a 30 yr fix rate at 6.75% (a great rate considering).  That brings your total payment (Principal, Interest, Taxes and Insurance) to $693 per month.  Lets just say $700.  You can rent it out for $1,000 per month.  That means you get $300 per month in positive cash flow.  That is $3,600 per year in Cash flow.  That is an 18% return annually on your 20K investment.  The best part is I haven't taken into account the tax benefits of writing off the interest, taxes, insurance, and should you choose depreciation.  Oh and the best part is that if you want to you can sell it in 5 years and expect to at the worst get your money back for it.  But what happens if at the end of five years the value went up 6% or $6K?  With my total investment of $20K, my annual return of $3,600 over 5 years for $18,000 plus not $6,000 in appreciation yielding a total return of 24K for a 20K investment.  That's a 120% return on your money in 5 years.  Wow

Again, this is hypothetical and I have left some additional advantages out.  With anything you can buy a property that is a lemon and loose your . . . . , that's where a great agent and building inspector come in, all of whom the seller will pay for you.

To wrap up, this is a great time to pick up an inexpensive investment with great returns and potential.  Like all things it has to be done right and the property has to be good.

For questions or additional information contact Chris at 314-229-4242 or csimms@pulaskibankstl.com.

The Simms Team has experience working with investors on all types of properties to meet their investment needs.  You may register for a property search 24/7 by logging on to www.StCharlesHomeHunter.com or by e-mailing us at MikeandPat@Trails2OpenSpaces.com.  Our websites search homes in the great St. Louis area including, St. Louis, St. Louis County, St. Charles, Lincoln, Warren, Jefferson counties and more. 

Keeping up on the market on a daily basis is key to our business.  It is how we customize our marketing plans for eac h and every seller.  When looking at the statistics for 2nd Quarter 2008 versus 2nd Quarter 2007 we found some very interesting information. 

In St. Louis County  there were 3,480 less homes on the market in 2nd Quarater 2008 than there were in 2007.  However agents only sold 358 less homes with 3,399 selling in 2nd Quarter 2007 and 3,041 in 2nd Quarter 2008 per the Mid America Regional Infomation System.

In St. Charles County there were 2,046 less homes on the market in 2nd Quarter 2008 than there were in the same time period in 2007.  The selling rate decreased 10% which was the equivalent of 127 homes. 

Third quarter data is not yet available however the multi listing system shows there are 2,644 active homes on the market in St. Charles County and 6,883 active homes in St. Louis County.

This information demonstrates that life events continue to happen, people get married, have children, loose loved ones which cause them to make a housing change.  We help sellers prepare their homes to sell in this market every day.  We are currently scheduling interviews for additional listings.  Call or e-mail to schedule an appointment.

The Simms Team

Specializing in New Construction, Custom, and Country Homes

Yesterday, Chris Simms, Certified Mortgage Planner with Pulaski Bank of St. Louis, had this to say about the market:

Rates are at 6% on a 30 year fixed.  They jumped today even though the news has been hugely bond friendly.  Investors are feaful that the US govt is writing checks it can't cash.  Beng the US decided overnight to bail out AIG with an 85 billion dollar loan, people are a little nervous. An f your Lehman, you really have to be upseet.  Needless to say, investors are pulling their money out of the stock market and keeping it in Cash.

As of yesterday afternoon, we saw a sight surge back into mortgage bonds.  This will help with pricing today but we do feel this roller coaster is going to continue.

If you are wanting 5%, it could happen but you are taking a huge gamble.  Look at your situation and what numbers make sense.  Review this with your Mortgage Advisor.  If 5.75% appears it is a goodtime to consider to lock.  If you want 5.5% it may get there it may not.  I have a huge lilst of clients who were waiting for 5.5% and now think its going to 5.25%.  They missedd the boat the last time when it was at 5.75%.  B now they would have saved an average of $1,000 by taking the 5.75 back in February.  Buyers and those refinancing really need to weigh what makes sense.

For questions or additional information you may contact Chris at 314.229.4242 or by e-mail at csimms@pulaskibankstl.com.  

Chris Simms, Certified Mortgage Planner with Preferred Home Lending powered by Pulaski Bank of St. Louis provided the following about last weeks activity in the maret:

Just like and octopus on skates, so goes the volatile Bond market in recent days - and last week.  Bonds and home loan rates skated around, but ultimately closed out the week very close to where they had begun.

Bonds and home loan rates ended the week on a sour note, but had spent the early part of the week moving sideways and slightly higher on a blend of mixed economic news and action in the Stock market.  Grim news arrived from insurance giant American International Group (AIG), who reported an enormous first-quarter loss of $7.81 billion or $3.09 a share, compared with earnings of $4.13 Billion just a year ago.  The important part of this loss is due to write-downs on Mortgage Bonds, which tells us that the credit crissis is not yet entirely behind us.  On these negative headlines, Stocks moved lower and money flowed over into bonds, helping home loan rates improve.

By Thursday, bonds were looking good and holding their ground above several floors of technical support, as the weekly initial Jobless Claims numbers were reported at 365,000, slightly below expectations of 375,000.  The more closely watched four-week average of Claims edged higher to 367,500.  This not-so-hot read on the labor market helped bonds and home laon rates continue to improve.

But then on Friday, bonds gave back some gains on news of oil hitting $126 per barrel - and the inflationary effects of high oil prices is bad news for both Stocks and bonds.  Oil prices are reaching exceptionally high levels, and may get higher still.  Read on for where oil prices are forecast to go in the future - and what it means for some loan rates. 

AND IT'S NOT JUST FILLING UP THE TANK WHERE YOU'RE SEEING PRICE INCREASES. . . IT'S WHEN FILLING UP YOUR BELLY AS WELL!  THAT'S RIGHT, FOOD AND DRINK PRICES ARE ON THE RISE IN A BIG WAY. CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW FOR SOME MONEY-SAVING TIPS

After last week's thin economic calendar, where Stock market action and technical factors had a big impact on bonds and home loan rates, this coming week brings a much jucier economic report agenda.

Retail Sales for April will be reported on Tuesday, followed by Wednesday's Consumer Price Index (CPI).  This widely watched measure of consumer inflation will take special significance, now that the Fed has signaled their current rate cutting cycle may be at an end.  On Thursday come a read on the new construction housing market with Housing Starts and Building Permits.  We will have to see if these reports can keep Bonds above their 50 and 100 Day Moving Averages . . . as see in the chart below.  If the raports are economically weak or negative, bond prices and home loan rates should hold their ground, and perhaps even ind some improvement.

Remember when Bond prices move higher, home loan rates move lower . . and vice versa.  And right now, there's an important story breaking that will be very important to stay turned in to.  Last Friday, oil prices reached a lofty $126 a barrel, and Goldman Sachs is forecasting that black gold could rise even ghigher, perhpas as high as $150 - $200 a barrell in the next twelve months.  If they are right, the inflationary effects of high oil prices could pressure Bond prices to move lower, causing home loan rates to move higher. This will be a story to watch carefully in the days andmonths ahead. 

If you have noticed your grocery bill getting bigger lately, you're not alone - and it's likely not because you're eating more.  According to Rising Foold Prices:  Policy Options and World Bank Response, global wheat prices have increased a whopping 181% over the past three years - and overall, food prices have increased by 83%!

Concerned?  You're not alone.  A recent poll showed that 73% of consumers cite higher grocery bills as a concern; with nearly half saying food inflation has caused a hardship for their households.  In fact, food prices ranked just below record-hgigh gasoline prices on the list of things people are worried about.

According to Gregory Karp, author of Living Rich by Spending Smart there are a number of ways to save.

Time Grocery Shopping by stocking up on sale items,

Make eating out a special treat - save time by cooking ahead when you do have time and you can convert two restaurant meals into frozen meals and could save up to $360 per year.

Don't buy bottled water - you could save $311 per year

Have comments or questions for Chris?  Call 314.229.4242 or email him at csimms@pulaskibankstl.com