A few glimmers of hope?

March 17, 2009

We have been barraged by bad news for the past nine months or more. Are things starting to turn around just a little bit? Let's look at some of the good news that we have seen lately.

• The Dow stabilized earlier this week at almost 7400. Let's hope the positive run continues.
• Housing starts were reported as up over 22% for the past month.
• The Fed has been actively purchasing mortgage-backed securities and helping to keep rates stable.
• The new conforming limit for mortgages is about to increase up to $729,250.
• There are new banks entering the lending market.
• M & A activity is poised to grow this year - a great shot in the arm to Wall Street.
• Banks are still lending!

The above are just the highlights that have crossed the wires in the past few days. It certainly doesn't mean that the economy is growing again but points to an economy that may be slowly showing signs that we are not going to fall off the edge of the cliff.

The real estate market has certainly taken the brunt of this recession but as confidence is restored to the marketplace, the odds are good that we will see renewed activity - and that is a major positive for the economy. We have seen greater interest in purchases especially in the past few weeks and as the good news continues to trickle in, more buyers will hopefully get off the fence and back into the market. There has also been a resurgence in refinances, putting more cash flow into people's hands by lowering their carrying costs - and also helping to stimulate the economy.

Yes, banks are still tough with their lending guidelines but for a well-qualified borrower there are great rate opportunities available, e.g. 5-Year adjustables now below 5% for loans up to $2,500,000. Who could say no to 4.75%? Fixed rates also remain low with conforming loans near 5% as well.

Financing for foreign investors is still available - and the jumbo market, thanks to our portfolio lenders, continues to remain strong with very competitive rates.

On the flip side, many banks are looking for higher presales especially for new condos but there are still banks that will finance in a building with a low presale. The rate may be higher but the loans are still available.

Starting to sound like the glass is filling up again ...

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• Buying a Condo: Now vs. Later (New York Times - January 28, 2010)

• Reaching Out to Condo Buyers (New York Times - November 22, 2009)

• Breaking the bank (New York Post - November 12, 2009)

• New York Appraisals Get Shortchanged (New York Times - September 27, 2009)

• Top Women (Real Estate Bisnow - September 16, 2009)

• City Seeks to Turn Stalled Projects Into Moderate-Income Housing (New York Times - September 2, 2009)

• Contract Signings Rise, and Deal-Watchers Exhale (New York Times - August 30, 2009)

• Mortgages Made Easy (Brokers Weekly - August 19, 2009)

• Low Appraisals Sabotage More Deals (The Real Deal - July 31, 2009)

• Lock Steps (New York Post - June 25, 2009)

• The Top Originator: Melissa Cohn (Mortgage Originator - April 2009)

• 'Cashing Out' Is Now Harder (New York Times - March 29, 2009)

• Making Your Way Through The Mortgage Market (CNBC.com - March 23, 2009)

• Housing Market Needs More Help (CNBC.com - March 5, 2009)

• Need a House Fast? Skip the Pre-Approval (Main Street - March 3, 2009)

• For Home Buyers, More Bank Roadblocks (New York Times - February 1, 2009)

• Mortgage Applications Surge (CNNMoney - January 14, 2009)

• Run For The Money (New York Post - January 1, 2009)

• Mortgages Less Easy To Come By For The Self-Employed (NY1 - December 16, 2008)

• Interview with Melissa Cohn (Marquis Who's Who in America - December 2008)

• Bright Spots (New York Post - December 4, 2008)

• Bailout Efforts Now Focus On Main Street, Not Banks (CNBC.com - December 4, 2008)

• Mortgage Refinance Applications Soar As Rates Fall (Dow Jones Newswires - December 3, 2008)

• U.S. Consumer Loan Aid Will Trickle Only So Far (New York Times - November 27, 2008)

• Can This Market Be Saved? (New York - November 23, 2008)

• Lending Recovers (Overseas Living - January 2009)

• Whittle Down Your Mortgage (New York - November 2, 2008)

• Bear market squeezes mortgages (The Real Deal - November 3, 2008)

• Foreign apartment buyers grow scarce (The Real Deal - October 28, 2008)

• Lenders tighten up standards for co-op loans (The Real deal - October 3, 2008)

• The Default Phenomenon Comes to N.Y. (The New York Sun- September 25, 2008)

• For Buyers, Many Roadblocks (The New York Times - September 21, 2008)

• Mortgages: Considering the Seven-Year Plan (The New York Times - September 21, 2008)

• Jump in Mortgage Rates Disappoints Home Buyers (Wall St. Journal - September 18, 2008)

• Amid mortgage woes, first-time buyers seek solutions (The Real Deal - September 1, 2008)

• It's a Wonderful Life (In Jersey) (Newsweek - August 2, 2008)

• Rich, but Rejected (The New York Times - July 13, 2008)

• What You Need to Know to Get a Mortgage (The New York Times - June 1, 2008)

• The 100 Most Powerful People in New York Real Estate (The New York Observer - May 19, 2008)

• Need $23 Million Fast? (The New York Observer - April 28, 2008)

• Tiptoeing Through a Minefield (CNBC.com - March 6, 2008)

• SHOPPING SPREE: It's not every building that will give its buyers a free winter wardrobe (New York Post - February 28, 2008)

• Jitters for First-Time Homebuyers (The New York Times - February 17, 2008)

• Waiting to see if ARMs fallout reaches Manhattan (The Real Deal - February 2008)

• Rates luring homeowners to refinance, but for better deals, not to tap equity (Daily News - February 4, 2008)

• What's Next for New York City Real Estate? (The New York Times - January 13, 2008)