Real Estate News

We have all experienced the great void of true customer concern and the lack of professionalism among a number of practitioners in our industry. Mediocrity has become acceptable to those who don’t share a culture of excellence.

Weir Manuel Realtors has long been known for its unique culture. There exists a sense of great internal pride here based upon our predisposition to exceed client expectations. The leadership team at Weir Manuel has always stressed elite customer service and superior client representation. These concepts have been the cornerstone of our culture for 60 years.

While the notion of striving to be the best at what we do makes us all feel better about ourselves, the fact is that it is our clients who are better served by the Weir Manuel Way.

The good news for us is that the new realities of real estate brokerage are working toward our advantage. Gone are the days of the order takers. This fact is borne out by the shrinkage in our profession seen locally. Today there are literally half the number of active agents in this marketplace compared to those of just four years ago. Also numbered are the days of unskilled agents. Consumers today are seeking highly skilled professionals for whom they can rely upon for trusted advice.

The fact that Weir Manuel Realtors are selling higher percentages of the listings taken and continue to enjoy loyal buyer stream that spans multiple generations is testimony to the notion that our unique culture does indeed support our clients’ goals. The Weir Manuel Way does indeed present a “win-win” solution for the consumer.

Fannie Mae announced last Monday that it is finalizing a plan to help renters stay in their homes even if their landlord enters foreclosure.

The mortgage giant said it’s working on a national policy to allow renters living in foreclosed properties — and who can make their rental payments — to sign new leases with Fannie while the property is up for sale. Or they could get cash to help move into a new home.
Sibling company Freddie Mac aims to have a similar plan in place by early January.
Many renters have been caught in the crossfire between landlords who have collected rents and their lenders who have not received payments on the underlying mortgages. The goal of this program is to provide such tenants some stability and not evict them as a result of another’s foreclosure.

The two mortgage giants own or guarantee about half of the $11.5 trillion in outstanding U.S. home loan debt. The government seized control of the pair of companies in September.
Last month, Fannie and Freddie suspended foreclosure sales on occupied single-family homes and halted evictions of homeowners from those properties through January 9. Fannie said the move has enabled an estimated 7,000 to 10,000 families to remain in their homes through the holidays.

It is hoped that this new policy by Fannie Mae will serve as a model to private lenders and state legislators considering actions to assist renters who are being immensely burdened by the foreclosure crisis.

Regardless of where any of us stand with regard to the federal loan guarantees for the Detroit Three, Congress, the President and the Treasury Department will do whatever they are predisposed to do. They haven’t called me for my opinion and it is questionable how much attention they have been paying to my letters, or anyone else’s for that matter. Washington decision makers do not appear to be listening to Main Street.

If the assistance asked for by the Detroit automakers is not granted, there is no question that there will be additional economic pain for some time to come, both in Detroit and around the rest of the country. But don’t be convinced by all of the fear mongers that the Detroit Three and all of their suppliers and subsidiaries will disappear and take all of the US manufacturing capacity with them.

There won’t be 16 or 17 million vehicles sold in this country next year, as the industry has gotten used to. But there will most likely be at least 12 million cars sold. Inasmuch as the foreign companies cannot supply that many vehicles, the domestic manufacturers will still be making and selling cars and trucks. And the tier one and two companies will be doing the same, continuing to supply both the domestic and foreign manufacturers, albeit in a diminished capacity.

Is there a silver lining in all of this? It may just turn out that Washington’s hard line approach may speed up the restructuring of three revered old companies that have provided untold benefits to our region and our country for many years, but which haven’t learned how to find the new location of their cheese. They may not all survive in their present form, but whatever emerges will be leaner, more powerful and more profitable.

At the end of the day, it will make them, and us, stronger.

News that the Treasury Department may use Fannie Mae and Freddie Mac’s influence on mortgage markets, pushing interest rates on home loans down to 4.5 percent, has raised hopes for a boost in home sales.

The Wall Street Journal reported last week that the Treasury is considering using Fannie, Freddie and other government-sponsored entities to purchase securities backed by mortgages at a price equivalent to a rate of 4.5 percent. That would be a drop of approximately one percent from current rates.

Each one percent reduction in mortgage interest rate gives home buyers about ten percent more purchasing power. That can not only get buyers off the fence, but also prop up home prices.

Stabilizing prices in markets where foreclosures have created a glut of homes for sale would be good for home builders struggling to clear backlogs of inventory. It’s unclear if the Treasury plan would also help borrowers refinance, which would also reduce foreclosures.

In a speech last Thursday, Federal Reserve Chairman Ben Bernanke said problems in housing and mortgage markets “have become inextricably intertwined with broader financial and economic developments.” Lenders appear to be on track to initiate 2.25 million foreclosures in 2008, compared with less than 1 million a year before the financial crisis, Bernanke said.

Some observers fear that now that news has leaked that the Treasury is considering such a plan, it will hurt home sales because prospective buyers will stay on the sidelines until it is clear whether the government will take further action to bring down mortgage rates.