In the Know With Kevin Ho, Nov 22, 2013 Ed., No. 47: What If Real Estate Had Black Friday?
The +5% Week
As We All Pause for the Holiday So Does Real Estate
As part of what I do for you all, I share the knowledge I glean to give you the confidence not only that you’re working with someone truly in the know, but also the confidence to know you’re acting prudently and wisely as possible. And, I’m thankful to all my clients for placing their trust in me and my skills.
What if we had Black Friday deals for houses? Imagine door busters to take on an entirely new meaning. Anyway, this is one of the weirder parts of the year made especially so because our calendar is also strange this year with Thanksgiving falling so late.
The closest we can come to the Black Friday phenomenon in real estate is, I suppose, our 5% week which just took place in case anyone noticed. As you’ll see any of the transactions that ratified this week are going into contract at just 5% over the list price.
It’s the weird part of the year that draws out the weirdo properties. On Tuesday Broker Tour there were some weird birds out there. Lots that are located behind another house with a 7 foot x 50 foot access path to a house that needs to TLC, which would be worthwhile because of phenomenal views — just what you need to do with the long-term tenants is another question – compared with the incomplete post-fire Dogpatch house that is being sold with lumber.
Vanguard’s sales activity has remained good and strong — even exceeding spring and summer highs. This is no sign of a bubble, which is nearly impossible to imagine with interest rates remaining as low as they are. Speaking of which, interest rates are remaining nice and stable. The Fed won’t really do anything for the foreseeable future as Ms. Yellen sounds a lot like Mr. Bernake.
Lenders are looking to lend and lend now. Lenders from Citibank to First Republic to Wells are all looking to lend and are looking voraciously. From Tony Alencar at Citibank, here are the most current rates:
- JUMBO 30-year fixed 3.875% 0 points (Vanguard preferred rate with Citibank) up to $2M, with 20% down
- 5/1/ ARM up to $2M, with 20% down, 0 pts, rate = 2.625%
- 7/1 ARM up to $2M, with 20% down, 0 pts, rate = 3%
- 10/1 ARM up to $2M, with 20% down, 0 pts, rate = 3.375%
And, real estate humor.