Rates just keep going down…

This is the 2nd cut in just over a weeks time!   The Fed. decreased the federal funds rate which impacts consumer loans.   Today’s cut was 1/2 of a percentage point, and with last week’s 3 quarter point cut, the key overnight lending rate is now at 3%.   This is the lowest point since the middle of 2005!

The Fed is also  showing signs  of cutting rates even more in the future.   This is the type of aggressive action that we need to stimulate our countries economy!  

Heard enough financial bad news? Here is some good news!

Does all of the negative news from Wall Street have you down?   Here is something that might brighten your day.

Interest rates on home mortgages are at their lowest points in a long time, and homeowners are taking advantage of it.  

According to the Mortgage Bankers Association, home mortgage refinance applications are up 92% since November, and the average rate on a 30 year fixed rate mortgage is down to 5.49%.

Now is a great time to refinance, or upgrade to the home of your dreams.

I have a great resource in my office I can refer you to if you have questions about whether or not you should refinance, or if you have questions about financing that home of your dreams.

Rate Cuts by the Fed

This morning, the Federal Reserve unexpectedly announced it was cutting the federal funds rate that effects consumer loans as well as the discount rate effecting bank loans by three-quarters of a percentage point each. This is a bold move which shows that Fed Chairman Ben Bernanke is following through on his promise to take “substantive action in a timely and decisive manner” to keep this country out of a recession.

Rate cuts typically stimulate economic growth over time by making it cheaper to borrow money for consumption or investment after banks follow the Fed™s lead and lower their prime lending rate for their best customers.

If you have been thinking about selling your home, and upgrading to a more expensive home, now is the time to do it. Homes in our area are selling for a bargain, and mortgage rates are already low and look like they will be going lower real soon.

Open House on January 27, 2008 at 14500 Swordale Lane

On January 27, 2008 at 13:00 PM, you are invited to an Open House at 14500 Swordale Lane in Bristow. If you are looking for a Single-family property in this area, don™t miss this rare opportunity to visit this magnificent property. For a preview of this Single-family property, check out my site at http://www.candiceskoby.com. Please do not hesitate to Contact Me if you have any questions or wish to schedule a private showing.

New Listing: 14500 Swordale Lane

Check out this new Single-family property that I just posted on my Web site. It is at 14500 Swordale Lane in Bristow. This Single-family property has 4 bedrooms and 3 baths. Beautiful colonial on large corner lot. Two story foyer.Living/Dining w/ lots of crown molding.Gourmet kitchen w/ upgraded appliances, w/ kitchen island and large pantry.Huge finished basement with rec. room and two additional rooms. Bath on every level. Master suite with his/her closets. Large custome deck overlooking landscaped yard. Freshly painted. Bank Owned. Call contact for combo.

Open House on January 27, 2008

On January 27, 2008 at 13:00 PM, you are invited to an Open House in Bristow. If you are looking for a Single-family property in this area, don™t miss this rare opportunity to visit this magnificent property. For a preview of this Single-family property, check out my site at http://www.candiceskoby.com. Please do not hesitate to Contact Me if you have any questions or wish to schedule a private showing.

Lenders Starting to Tighten Up

Appraisals are receiving much more scrutiny, and lenders are asking some buyers to provide more down-payment cash.

Today, everyone from highflying bond investors to loan officers want more assurances that new loans won’t add to the losses that the country has experienced in the current credit crisis.

When I asked a client about if the declining market makes him hesitate investing in real estate, I was given this answer…”No, you need a place to live….I will be here at least five years. I am not under the false assumption that I am going to get rich. When you are renting, your losses come out to be $20,000 a year in rent plus tax breaks…”

I think things are slowly beginning to look up for the market, and I believe this is a direct result of lenders checking themselves and their clients.

Don’t Forget to Check the Radon

Radon is a colorless, orderless, radioactive gas.  

Radon is a major factor homeowners have to face Northern Virginia.   Radon is the 2nd leading couse of lung cancer in the US.   There are things you can do to protect you and your family.

*One out of 15 homes in the US is estimated to have elevated radon levels.

*Do-it-yourself tests for radon can be purchased for $10 to $30.   Radon can also be professionally tested.

*The average indoor radon level is about 1.3 picocuries per liter in the United States.   The Environmental Protection Agency recommends homeowners take corrective action if the radon detected in a house is at or above 4pCi/L.

*Reducing radon levels involves installing a vent pipe through the basement slab and venting gass out of the roof.   The cost for this is estimated at $800 to $2,500.

Motivating Finacial News

Jan 8 “ Sales contracts on previously owned homes fell by 2.6% in November, a sign that sales will continue to decline after increasing the previous two months.  

Jan 10 “ Freddie Mac reported that the average 30-year fixed rate mortgage was at its lowest point since September 2005.

Jan 11 “ Bank of America agreed to purchase Countrywide Mortgage, the largest lender in the U.S.

Jan 11 “ A record increase in imported oil prices in November sent the trade deficit to its highest level in more than a year.

Jan 11 “ Oil closed the week at $92.90 a barrel, down from $97.91 last Friday.


Chairman Bernanke said the Fed is ready to take “substantive additional” rate cuts to support growth and insure against the risks of a sharp downturn in the economy. The market is expecting short-term interest rates to be cut by .50% at the Fed meeting to be held on 1/29 “ 1/30/08.   The Fed could drop them quicker in reaction to the decline in the stock market.


Friday™s 10-year Treasury note closed at 3.79%, down from 3.87% last Friday.


This information was compiled by my office’s   Senior Mortgage Adviser,   Dick Opel.


Home Prices in Virginia on the Increase

According  to a Virginia Home Sales Survey published by the Virginia Association of Realtors, median home prices are consistent with figures seen  last month and higher than in September.    

The median home price in November was $232,500,  which is still less than last November’s median price of $237,250.

 Virginia homes are on the market an average of 136 days, which is just a few more than the 10 year average of 122.

 According to Virginia Association of Realtors President Pat Jensen,  “Now is the time to buy.   Housing inventory levels are the  highest in years, and interest rates are low.   If you’re a buyer, this market is for you.”  

Source Prince William Pulse newspaper, 1/10/08.

If you are in the market to buy or sell, please visit my website at www.candiceskoby.com.

Big Financial News!

Bank of America will be buying Countrywide for 4 billion dollars in stock!   The sale is supposed to close in the 3rd quarter of 2008. This will help to rescue the biggest mortgage lender in our country. I believe this is going to help the housing market in the long run.

If Countrywide was to fail, it would be a huge blow to Fannie Mae and Freddie Mac, which are government sponsored mortgage companies.   These two companies are major purchasers of Countrywide’s loans.

Happy New Year

I hope everyone had a great holiday season.   My family and I spent our holiday back in Texas.   One of the new hot trends in home improvement in the South is stained concrete flooring.   It is inexpensive and very stylish.   My husband and redid the flooring in my Mother’s home with this new trend of staining.   The end result was amazing.

I have had many people approach me lately asking me about remodeling their kitchen before they sell.   It is a good idea to do some planning before you call a contractor or visit you local home improvement store.   First, you might want to begin by creating a type of “style book”.     Look through your favorite home magazines and pull out the pictures that YOU like.   Second, think about what you want to use the remodeled space for in your kitchen. Third, come up with an idea of what YOU want to spend.   Finally, decide when you want to start the project and what kind of time frame are you looking at for the completion of your kitchen project.

These tips might sound like common sense to most of you…But when you don’t know what you want or don’t have clear goals, it is much easier to get talked into having things done you don’t want or spending too much money.

Candice Skoby

Interesting article on Remodeling

While conducting research for a client, I came across this article about the positives and negative effects it can bring to your home.

When It Comes to Remodeling, It™s What™s Outside That Counts, Realtors ® Report


WASHINGTON, December 03, 2007 –

Many buyers judge a house by its exterior, or so it seems from the results of the 2007 Remodeling Cost vs. Value Report. Three of the four projects with the highest national percentage of costs recouped this year were exterior upgrades.

The most profitable project on the national level was upscale siding replacement, recouping 88 percent of costs upon resale. Wood deck additions and wood window replacements also returned more than 80 percent of costs, at 85 percent and 81 percent, respectively. On a national average, the only interior project to return more than 80 percent of remodeling costs this year was a minor kitchen remodel, returning 83 percent of project costs at resale.

œThe results of this year™s Cost vs. Value report underscore the importance of curb appeal in the buyer™s eye, said NAR President Dick Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. œRealtors ® know what attracts buyers in their local markets and can help your house put its best façade forward, so to speak “ it™s another way Realtors ® add value to the real estate transaction.

The 2007 Remodeling Cost vs. Value Report compares construction costs with resale values for 29 midrange and upscale remodeling projects comprising additions, remodels and replacements in 60 markets across the country. Data are provided for nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 10th consecutive year that the report, which is produced by Hanley Wood, LLC, was completed in cooperation with REALTOR ® Magazine, as Realtors ® provided their insight into local markets and buyer home preferences within those markets.

Four new projects were added this year: the aforementioned wood deck addition, a back-up power generator, and both a midrange and upscale garage addition. Nationally, the back-up power generator only returned 58 percent of the investment on resale, although the return was highest in the West South Central region, which comprises Arkansas, Louisiana, Oklahoma, and Texas, at 68 percent. Buyers in the Pacific region of Alaska, California, Hawaii, Oregon and Washington value their garages: The midrange garage addition returned nearly 70 percent nationally but 88 percent in this region, while the upscale garage addition returned approximately 65 percent nationally but 78 percent in this area.

Homeowners in the Pacific region could also expect to see some of the highest percentages of remodeling expenses returned at resale, with 13 of the 29 projects returning 90 percent or higher of project costs. Homeowners in the East North Central region of Illinois, Indiana, Michigan, Ohio and Wisconsin might expect some of the lowest returns; only one project “ upscale fiber cement siding “ returned more than 80 percent upon resale (82 percent of costs recouped), while nine projects returned less than 60 percent of project costs.

The least profitable projects were a back-up power generator, sunroom addition, and home office remodel. The back-up power generator returned the lowest percentage of initial cost in the East North Central, New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island, and Vermont), Pacific, and West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) regions.

Sunrooms are least popular in the East South Central (Alabama, Kentucky, Mississippi and Tennessee), Mountain (Arizona, Colorado, Idaho, Montana, Nevada, New Mexico and Wyoming), and West South Central regions. Home office remodels return the lowest percentage of project costs in the Middle Atlantic (New Jersey, New York and Pennsylvania) and South Atlantic (Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia) regions.

Gaylord explained that the resale value of any given remodeling project depends on a variety of factors. œWhen considering a remodeling project, particularly with an eye toward resale, it™s important to evaluate your home™s current condition, how the project will change the existing space in your home, as well as how your remodeled home will compare to other homes in your community, said Gaylord.

œFor example, using a breakfast nook to expand the kitchen seems like a good use of space, but using the same space to add a first-floor bathroom in an older home that doesn™t have one will draw more buyers, Gaylord said. œRealtors ® see hundreds, if not thousands, of homes every year with their buyer clients and can provide valuable insight into what projects and improvements will make a difference with buyers in your area.

Results of the report are summarized in the December 2007 issue of REALTOR ® Magazine. To read the full project descriptions, access national and regional project data, and download a free PDF containing data for any of the 60 cities covered by the report, visit www.costvsvalue.com. œCost vs. Value is a registered trademark of Hanley Wood, LLC.

Hanley Wood, LLC, is the premier media company serving housing and construction. Through four operating divisions, the company produces award-winning magazines and Web sites, marquee trade shows and events, rich data, and custom marketing solutions. The company also is North America™s leading provider of home plans. Founded in 1976, Hanley Wood is a $240 million company owned by JPMorgan Partners, LLC, a private equity affiliate of JPMorgan Chase & Co.

The National Association of Realtors ®, œThe Voice for Real Estate, is America™s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.