The Feds Cut Rate Again

The Federal Reserve cut interest rates modestly Tuesday, (a quarter of a percentage point, to 4.25 percent) to a nearly two year low. They left the door open for further reductions if the housing market and the rest of the economy continue to slump. The Dow Jones fell 294 points after the annoucement,Wall Street had hoped for a larger cut. For more on this story check out the following links:
http://www.statesman.com/news/content/news/stories/nation/12/12/1212fed.html
http://www.nytimes.com/2007/12/12/business/12fed.html?hp
http://news.yahoo.com/s/ap/20071211/ap_on_bi_ge/fed_interest_rates
~Sandy

"Property Virgins"

I know the term "Property Virgin" sounds a bit kinky, actually it's a new series on HGTV from Canada about first time home buyers, but if you think about it, "property virgin" hits the nail on the head. First time home buyers are "virgins", that is they are about to make a huge commitment, in an area they probably don't have a lot of experience. If you are a first time home buyer, here are a few of the things you should be aware of:

1. Check out the different areas of your town, are you looking for an area populated mostly by mature homeowners or young families, are there a lot of apartments, car washes, convenient stores etc.. Do you want an area close to downtown or out in the suburbs, is a neighborhood park important?

2. Be sure to ask for a Seller Disclosure Statement. This should tell you anything the present homeowner (good or bad) is aware of about the home.

3. Once you have chosen a home, be sure you get a home inspection. This will insure that you are making a wise investment, and should reveal any problems you may encounter with the home. For example, are there termites, is the plumbing and electrical wiring up to code, will the roof last another 5-10 years or does it need to be replaced now, is the property structurally sound etc...

4. Working with an established realtor can help you with all of the above and provide comps of each area you are interested in to be sure the price of any home you consider is in-line with other homes that have sold in the area recently. A realtor along with a mortgage lender can help determine which price range would be best for your current situation, so that you don't end up biting off more than you can chew!

These are just a few of the things you should consider when buying a home for the first time, or for that matter the second or third time!

Southwest Airlines Drops Another Midland Flight

I don't know if you saw this or not, but Southwest Airlines has yet again dropped another Midland flight. Beginning November 14 we were no longer able to fly to El Paso. However, on January 13, 2008 we will be able to fly to El Paso via Albuquerque in a mere 3 hours and 50 minutes! I don't know about you, but I'm pretty sure I can drive to El Paso faster than this flight would take after figuring in early arrival for baggage check-in, security, and retreiving bags on the other end etc... It seems strange to me that enplanements are up (and have exceed by 1% pre-9/11 numbers) and yet we continue to lose flights.
~Sandy

Besting – Or Better Nesting

A new book out by Bob Waun called “Besting” describes new retirement trends for Baby Boomers. “Besting” essentially is better nesting or an improvement in the quality of housing with amenities and luxuries far beyond traditional retirement. Basically, this isn’t your father’s retirement!

“In 1994 there were approximately 6.4 million second homeowners, by 2020 this number is projected to grow to 8.5 million. Retirement communities of mobile home parks with pleasant weather and simple amenities like shuffleboard are ancient history for the boomer generation.” Baby Boomers who are now empty nesters, but not yet ready for the “old folks home,” want more options, luxuries, and amenities all in fabulous locations!

With this trend comes new innovative ownership options such as: condo hotel, fractional, private residence clubs, timeshare, destination clubs, ship condos, hobby farms, and themed communities all of which will play a role in the Besting stage of life.”
~Sandy

Excerpts from Between Empty Nesting and the old age home - Besting, Better Nesting: The New American Dream by Bob Waun

Housing Recovery

According to John Burns the founder of Real Estate Consulting in Irvine, California the housing market future is looking brighter. In a guest column on Inman Real Estate News Burns said, "Despite the tough times in housing, the economy continues to grow, and that will make the recovery in housing happen much sooner. The energy sector, in particular, is thriving, spurred by a falling dollar and skyrocketing commodity prices."
for the complete story click here
http://www.inman.com/inmannews.aspx?ID=65193
~Sandy

Home Insurance Fraud

The Midland Police Department is currently investigating a case involving a man who is accused of selling insurance policies and then not ever providing the policies.

Anyone who purchased a policy from Bob Moore Insurance should check into their policy. Anyone who was notified by their mortgage company at renewal time that they did not have a policy should contact Midland Police.

To report suspicion of Theft of Business Practice involving Robert “Bob” Moore, contact the Midland Police Department at 685.7108.
For more information click this link.
http://www.midlandtexas.gov/press_release/2007_10/10_31_07.htm
Don't forget to vote today!
~Sandy

Fed Cuts Interest Rate Again

The Federal Reserve, confronted with surging oil prices and a slumping housing market, on Wednesday cut a key interest rate by a quarter-point, the second rate reduction this year.

The central bank lowered the federal funds rate to 4.5 percent in an effort to stimulate economic activity and keep the country from dipping into a recession. The move will make it cheaper for consumers and businesses to borrow money.

The Fed's action came on the same day the government announced that the overall economy grew at a stronger-than-expected 3.9 percent rate in the July-September quarter.
(read the rest of the story here) http://hosted.ap.org/dynamic/stories/F/FED_INTEREST_RATES?SITE=TXMID&SECTION=HOME&TEMPLATE=DEFAULT
~Sandy
Be safe this evening Trick or Treating!