JUMBO loans, Home loans for more than $417,000 for upscale homes in the Triangle market, are coming in cheaper than conforming loans at less than $417,000!
Luxury Home buyers and Home sellers, Rejoice! This may be a shot in the arm to a stodgy real estate market strata.
That just does not happen, historically. There has been a cost penalty for JUMBO loans, varying from a quarter point, to a point or more, just about forever.
The reasons? Banks have money and need to put it somewhere. JUMBO home markets are flooded with stagnant inventory. Luxury homes in the Triangle are just not moving, with 2 years’ inventory in many local areas for homes in the $800,000+ price ranges.
And, as Nick Timiraos noted in the Wall Street Journal last night, volatile mortgage bond yields are driving up confirming loan interest rates.
As usual, fascinating stuff. Structuring loans for upscale and luxury homes with 80/10/10, 75/25 products, or other scenarios has been a staple of JUMBO lenders in the past. And it is hardly a concern today, with JUMBO money very competitive and even more competitive than cohforming money.
Will this give the Triangle’s upscale home and luxury home real estate markets a boost? Stay tuned….
When I list a house for sale, I enjoy getting a variety of photos.
One of my favorites is getting a series of shots at dusk, with all the lights on and the house looking warm and welcoming. It requires a special trip back to the house, but the results make that quite worthwhile. I usually use one of the dusk photos as a feature photo on the Triangle MLS, and Realtor.com
Here are a few listing photographs I shot in Cary and Apex:
Photographers call dusk “Magic Hour.” I think a nice dusk photo of a pleasant home helps curb appeal, exposes the home for sale in a nice fashion, and makes the listing stand out to Home buyers. And, home sellers always like to see their property shown in the best possible light.
Most home buyers I meet prefer a light, bright home. To the point that “Light and Bright” has become a common marketing cliche in listings and ads.
It is difficult to have a “Light, Bright Home” without smart window placement. Too many windows means too much glare and summer heat gain and winter heat loss.
So windows need to be placed well to maximize light without accentuating negatives.
I love rooms with windows on two sides. They always seem airier and lighter.
Notice how pleasant the room is. The door glazing floods that left hand wall with light and makes the room lighter without excessive glare. And that door is on the south side of the house.
The other two windows are split to either side of the bed location. Smart move. Double windows in the middle of the wall would have made bed placement more difficult, and again, being nearer the edges of the room, they add light with less glare.
Here is another example:
Again, windows split and flooding the walls with light. Look at the walls and the reflected light that is cutting down the glare and contrast.
It is a good choice of paint color for the room. I like lighter paint around windows. Bright sunlight entering through windows on dark colored walls creates glare like a sledge hammer. Windows can be difficult to photograph without the photographer dealing with the glare. And your eye finds the stark sharp contrast uncomfortable also.
Additionally, that room faces nearly due north. The coveted North Light. Always light and never a painful glare or heat.
I looked recently at an office space, and wanted it if only for the wall of floor to ceiling windows on the north side.
Here is a breakfast room in a very pretty house.
And it works well, particularly if you like to work with light and shadow. And if a dark room is to your taste. And all that depends on the angle of the sun at any given time, and the time of year, as that window faces due south. It can be very bright, and the wall very dark.
Trees and shrubs can help diminish glare with filtered light to heavy shade. We have a winged elm outside our triple window at our breakfast table. It is on the south side, and spreads far enough that it filters the light nicely. The light green we will have when the elm begins to leaf out is lovely in the morning. We didn’t plan it or plant the tree, or realize it when we bought. We got lucky. If we decide to ever move, it is an effect we will attempt to duplicate.
Craziness reigns in Cary real estate.
But, buyers, if you think you are going to score a new home in a great Cary neighborhood this spring, you are going to have to have a plan.
MLS home listing inventory has shrunk, while demand has boomed. Desirable homes, and even homes of questionable value, are popping off the market.
“He who hesitates is lost,” is the fact of life for Cary home buyers right now.
But, “Haste makes Waste” also comes to mind.
So, buyers need to be methodical, and deliberate. And efficient.
Get funding lined up. Proof of funds for a cash buyer. Solid pre-approval letter from a respected lender for borrowers.
Listen to your Realtor. Get those out of the way.
They are necessary groundwork. Once they are procured, you are in a position to make a quick offer when a home clicks.
And, quickness in deliberation is required!
Home buyers are noticing that desirable properties, depleted inventory, and great demand are creating multiple offers daily in the Triangle.
Welcome to the Cary NC real estate market, 2013 Version.
We are seeing homes sold with 0, Zero, Days On Market. The Pocket Listing is back. Sell them before they hit the MLS.
We are seeing showings declined on Active listings, and no response from the listing agent. Et Voila! A contract!
We are seeing homes go under contract before photos are posted to MLS.
Buyers’ agents must sniff out opportunity and be ready to turn on a dime.
Like the ninja of old, it can take legendary skills to complete the task. I haven’t developed the skills of invisibility, time travel, or shape-shifting, but they may come in handy.
More seriously, the market was strengthening for sellers and getting more competitive for buyers through last year, 2012. Then the news broke that Wake County Public Schools would resume school assignment by address. And some areas went into hyper-drive. Davis Drive Elementary School and Davis Drive Middle School are two very desirable schools. Historically, homes with school assignments for those two schools have traded at a premium. Confusion over school assignments for a couple of years defused that demand. Now? Buyers flock to homes in neighborhoods that have assignments for both schools.