HOME LOAN CREDIT EASING

More lenders report easing of mortgage lending standards across all loan types according to a recent Fannie Mae third quarter survey.

The gap between lenders easing as opposed to tightening over the period jumped 20% reaching a new survey high for ‘net easing.

 Doug Duncan, chief economist at Fannie Mae reported, “Our survey responses appear to reflect that lenders may becoming more comfortable with new lending guidelines coming into play.  Overall, we expect that lenders’ tendency toward easing credit standards, together with relatively low rates and a strengthening labor market will continue to support the housing market expansion.”

 The survey also reported that senior mortgage executives continue to be more optimistic about the economy than general consumers, and they continue to be less optimistic than general consumers when it comes to the ease of getting a mortgage today.

 Bangor area Realtors report that the general easing of credit is a result of lenders confidence in the local economy and consumers confidence in the benefits of home ownership.

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AUGUST HOME SALES STRONG

The number of homes sold in August rose 8.8% across the State of Maine,  according to the Maine Real Estate Information System(MLS) with 882 sales.

 Statewide dollar volume reached $882 million compared to $797 million for the same period last year. The median sale price rose  by $5000. 

 Lawrence Yun, chief economist for Realtors said that there is inventory shortages in many metro areas and that it appears that it is a seller’s market as more buyers are competing for a limited number of homes available for sale.

 Home sales in the Greater Bangor Area (Bangor, Brewer, Glenburn, Holden, Hermon, Hampden, Orono, and Old Town) followed the state wide trend increasing 5% over last August with a  median sale price of $152,000.

 Bangor Area Realtors note that mortgage rates at their historic lows continue to support home ownership for first time home buyers who prefer ownership versus renting.

-Jon Dawson

 

 

 

OPEN HOUSE- OR NOT?

A recent survey by RIS Media asked real estate agents whether they are still conducting open houses as part of their marketing plan.

Nearly 72 percent of the agents polled claimed to host 1-6 open  houses per month while 24% had none.  Reasons for having open houses?  Thirty five percent indicated that sellers expect open houses.  Others indicated that they are an excellent source of ‘buyer feedback’ about why the particular home is appealing to them.

 

The top method for promoting ‘opens’ was social media followed by email blasts and print advertising.

 

Many agents felt that opening homes to the public may not be wise.  They may be scoping out a hose and leave a window unlocked with a plan to return later to rob some item or items of personal property they identified during the open house.  It is obvious that sellers should remove or store jewelry and other items of particular value.

 

Others commented very positively about open houses knowing that they can be a good source of buying prospect.

 

One agent distributes invitations to the neighborhood knowing that most neighbors like their location and may have friends or acquaintances who might share their enthusiasm for their area.  Also, neighbors often comment that they are impressed  by the effort the agent is making on behalf of the Seller and would consider strongly selecting that agent when it comes time to sell.

 

Source: Rismedia Survey

 

Realtor Code of Ethics

In 1915, two years after the founding of the National Association

of Realtors, its members adopted a code of ethics establishing standards

of practice which guide Realtors in their practice of real estate.

In its  introduction it states, “ Under all is the land.  Upon it wise utilization

and widely allocated ownership depend the survival and growth

of free institutions and of our civilization.   Realtors should recognize that

the interests of the nation and its citizens require the highest and best use

of the land and the widest distribution of land ownership.

They require the creation of adequate housing, the building of

functioning cities, the development of productive industries and farms,

and the preservation of a healthful environment.  Such interest impose obligations

beyond those of ordinary commerce.  They impose grave social responsibility and

a patriotic duty to which Realtors should dedicate themselves, and for which

they should be diligent in preparing themselves.

Realtors, therefore, are zealous to maintain and improve the standards of

their customers, the public, and each other.”

These mandates are as relevant today as they were a hundred years ago.

– Jon Dawson