Garman Difference #3: Give it Back

One of the most imortant Garman Differences is what we call "Give it Back." Here is a story about how I would like to give it back.

I first became involved with Big Brothers Big Sisters of the Triangle in 2001. I was a "Big" for my "Little" Torian. When I first met Torian, he seemed very shy and very quiet. He and his mom had recently moved to NC from NY so he didn't know many people. I had a similar situation when I moved here from NY so I could relate.

The first few meetings were tough. I had to painfully pull conversations out of him as we got to know each other. BUT all it took was one mention of NBA basketball or WWE wrestling...and the kid came out of his shell! He was like a new person. I saw excitement and confidence, and he knew every thing about every one. It was tough to keep up! We spent a couple hours together each week and became great friends.

Unfortunately, we have not kept in touch as much as I'd like. Torian's mom got remarried and he has a wonderful new support group. I also have two children of my own so our time together has been limited. I miss him very much but I will never forget one event that will stay in my mind forever. When Kate and I got married in 2003 we had a very "interactive" wedding that involved lots of friends and family. We asked Torian to be a part of the procession and carry the bible into the church in front of our priest. He happily accepted our inivtation. He went from being a shy child to a young man who was confident enough to be the center of attention in a room full of adults. It was inspiring.

That inspiration has led me to choose Big Brothers Big Sisters of the Triangle as my "give it back." I have pledged to donate $100 of every transaction in 2009 to the local chapter- so more kids like Torian can inspire grown-ups like me.

Garman Difference 3#: Give it Back

Garman Difference #2

About 8 years ago I took my first trip to Las Vegas with my wife Kate. She was working for Jack Daniels and was there on a business trip during the NFR (National Finals Rodeo). This was my first taste of being treated like a rocktar! Our good friend Jenn Smith was the marketing manager for Jack Daniels in Las Vegas. Thanks to Jenn, every place we went treated us like rockstars. No waiting in line, free drinks, private tables, exclusive clubs...the works. I felt like I was being treated just a little bit better than everyone else.

This exemplifies Garman Difference #2: Rockstars Wanted.

This is probably the most complex of the 4 differences. First, if you work for a Garman company, you are a rockstar. You have a great attitude, you make people feel great, and you work hard. (the trashing of hotel rooms and bowls of m & m's with no green ones is just a myth). BUT, the attitude is contagious because all of our partners are also rockstars (lenders, attorneys, inspectors, appraisers). We will not tolerate negative attitudes or poor work. However, the most important part of the equation is our clients. We want them to feel like they get the royal treatment every step of the way. Whether they are buying a home or selling a home, they get the rockstar treatment.

Garman difference number 2: Rockstars Wanted. It's the blue square.

Garman Difference #1

In only my second day with Garman Realty I am learning that one question is on everyone’s mind…even if they don’t ask me. So here is the answer.

I joined the team as a member of Garman REALTY. I will be helping people buy and sell homes just like I did when I was at RE/MAX. However, Garman HOMES is a building company and focuses on new homes. BUT- one of the huge benefits of being associated with Garman HOMES (the building company) is the G-Team! I have access to one of the finest group of trades people in the Triangle. They pride themselves on doing great work and treating people like Rockstars! The G-Team can help get your house ready to list or help make repairs after inspections. Listing your home can be stressful but our goal is to make life as easy as possible while your home is on the market.

Having the G-Team is awesome…and it is known as Garman Difference # 1. For those of you keeping score at home- that’s the green box in the logo. Check it out.

Oh What a feeling!

I recently took a trip to Marbles kids museum with my son Tyler for his 2nd birthday. And how cool was it to jump in the ball pit...(excuse me-the peas and carrots)...it was like I was a kid again! What a great feeling!

Well today I joined the Rockstars at Garman Realty...and I am filled with the same awesome feeling! I am so excited about working with such a great group of people who are truly devoted to offering a unique experience. Stay tuned to learn more about the 4 Garman differences...

I love the rockstar treatment...and so will you!

Refuting the N & O- The other side of the story

For those of you who are tired of constantly reading or hearing negative news about the housing market, here are some facts about how our LOCAL market is doing. Not too bad if you ask me. I truly believe it is a great time to buy a house in the Triangle area.



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Stacey Anfindsen Shares More Accurate Depiction of Market and Five Reasons Not to Panic Over Local Home Prices

In response to the main headline in the 10/27/08 N&O, I am presenting facts to contradict
the headline, which is yet another attempt to scare local readers by using data from selected national sources. The writer states five reasons; crashing home prices, investor speculation, complex investments, job losses and repeat delinquencies. I will respond to each of these to provide some local perspective.

1) When analyzing our market, I look at data from the counties of Wake, Durham, Orange and Johnston. Within this market, the average closed price of all housing is up 8% and the average closed price of resale housing is up 6%. House price appreciation, which compares the two most recent sales prices of the same house , is an area where the Triangle outperforms the national market. Our current rate of house price appreciation in the Triangle is just over 4%. This rate beats the state (+3.6%) and national rates (-4.5%).

2) The Wake County Revenue Department reported +/- 21,000 closed sales within the past 13
months. Roughly 5% of these sales were purchased by buyers from out of town, a huge difference compared to the 20% rate nationally.

3) It is almost impossible to track what percentage of local purchases were made via the subprime loan mechanism. Per the FHFA mortgage metrics survey for the second quarter of 2008, 17% of all outstanding mortgages in the U.S. are rated as subprime. Therefore it would be hard to argue that a majority of house purchases were made via this mechanism.

4) Job losses are real both nationally and locally. The Raleigh/Cary/Durham MSA did not have a workforce increase comparing 8/08 with 8/07 for the first time since the 8/01 versus 8/00 period.

5) The mortgage metrics survey reveals some additional information regarding the national mortgage market. They surveyed over 30 million outstanding loans in the Fannie Mae and Freddie Mac system and found that 98.6% of these loans were rated as current. They also state that foreclosure proceedings were initiated on 432 homeowners per day during the second quarter, a big difference from the 2,700 per day figure stated in the lead paragraph. There are currently +/- 14,000 listings within the four county area in TMLS. Roughly 3% of these listings are classified as foreclosure, bank or corporate owned. I have been tracking the residential market within the Triangle for over 20 years. The foreclosure market has always accounted for a very small percentage of activity.

Our current market can be summed up with my version of the good, the bad and the ugly;

The Good
-Third quarter closings were the 6th highest in history
-Current supply of 8 months is lower than national current supply of 11 months
-Average house price appreciation is superior to state and national rates
-Average re-sale sales price +6%, average overall sales price +8%, average list price +2%
-Houses priced correctly have sold in an average of 55 days

The Bad
-Overall inventory grew 7%, making 2 consecutive months of less than 10% growth
-Withdrawn listings increased 2% compared to 9/07

The Ugly
-29 consecutive months of inventory growth, 20 consecutive months of lower pending sales
-63% of all price points have an oversupply of housing product
-9/08 expired listings were 227% higher than 9/07 expired listings

A survey of Wake County house purchases where the house was purchased and then re-sold within the past 12 months reveals a median percent per gain of 0%. I think that is pretty impressive compared to what is happening in the national market.

As we have seen during 2008, our local market is not immune from happenings in the national
market. Our biggest challenges during the fourth quarter of this year and into next year are to grow the workforce and cut down on the number of price points with an oversupply of housing.

Raleigh Home Prices Stay Strong

More positive news about the local housing market from the Triangle Business Journal. With affordable interest rates and lots of choices, it is a great time to buy a home!


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Home prices grew by 4.8 percent in the Raleigh area between the second quarter of 2007 and the second quarter of this year, new federal data say.

The figures, from the Office of Federal Housing Enterprise Oversight, tend to overstate the actual growth in home prices across the country. But they are useful on a comparative level, and by that measure, they place the Raleigh-Cary region at No. 13 among the nearly 300 areas tracked in terms of home price appreciation.

Prices in the Durham region, which also includes Orange County, grew by 4.1 percent, putting the region at No. 26 overall.

Nationally, OFHEO says, home prices slipped by 1.7 percent in the last year.
The OFHEO data have their limits. Specifically, they do not include homes with mortgages that can't be bought by government-sponsored enterprises Fannie Mae and Freddie Mac. That means most homes owned by subprime borrowers, the hardest hit part of the market, aren't included in the index – helping to make housing price declines look less severe in OFHEO data than in other indices.

For example, another widely cited barometer of housing prices, the Standard & Poor’s/Case-Shiller index, said home prices fell by 15.4 percent nationally in the second quarter from a year earlier.

That 20-city index does not provide data on Raleigh housing, though they also provide some indication that North Carolina home prices are holding up better than most. Charlotte showed the lowest drop in prices among the 20 cities tracked, with home prices there falling just 1 percent from June 2007 to June 2008.

Housing Bill Summary

There is a "radio station" that everyone listens to whether they know it or not... WII-FM (Whats in it for me?). With the recent coverage of the "housing bill" being debated by members of Congress, I find many consumers asking me "What's in it for me?" How will I benefit from this housing stimulus package?

Here is a summary provided by the National Association of Realtors showing some of the benefits to consumers...

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HR 3221, the Housing and Economic Recovery Act of 2008
National Association of REALTORS® Summary
(as of 7/24/08)

H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23rd by a vote of 272-152. The Senate must now approve the language adopted by the House. The Senate is expected to approve the bill on Friday, July 25th or Saturday, July 26th. The President has said he will sign the bill. It includes:

· GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

· FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

· Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).

· FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.

· Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.

· VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.

· Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision does will be effective from October 1, 2008 through September 30, 2009.

· GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.

· Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.

· National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.

· CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.

· LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.

· Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.