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| October 2009 | | | Record Streak Continues for Pending Home Sales |
Pending home sales have increased for seven straight months, the longest in the series of the index which began in 2001, according to the National Association of Realtors. The Pending Home Sales Index, a national forward-looking indicator based on contracts signed in August, rose 6.4 % to 103.8 from a reading of 97.6 in July, and is 12.4 % above August 2008 when it was 92.4. The index is at the highest level since March 2007. In the Midwest the index rose 3.1 % to 90.8 in August and is 7.6 % above a year ago. The county graphs I am providing you show the local trends, recent activity and current market conditions you should know as a buyer or seller. Whenever you need real estate advice or additional market insights, please call me. |
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| | June 2009 | | Real Estate Trends | |
The real estate market operates very much like the stock market in that a property is only worth what an educated buyer will pay for it at a certain point in time. Buyers make their decision based on current conditions and their perception of value. In most areas, home inventory is high, indicating a downward pressure on home prices. However, even with a lot of properties on the market, when a buyer perceives value - a property they love at a price that seems reasonable in today's market - they buy. Sellers who understand that real estate is a commodity and price their homes accordingly will be much more successful in attracting the interest of buyers. The county graphs I am providing you show the trends, recent activity and current market conditions you should know as a buyer or seller. To view the graphs please click on the county names on the right. For more real estate advice or additional market insights, please call me. I can help you with all your real estate needs. |
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In today’s uncertain market, fear runs rampant on both the buying and selling sides of the fence. Many myths need debunking. Here are five untruths held by buyers.
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When buyers ask, “How long has this property been on the market?” they think “six months” means they can negotiate the price down. It more often means the seller is stubbornly holding on to their price.
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Most aren’t. Always ask why the sellers are selling. It’s the key to finding how motivated and anxious they are. (I’m being transferred to Dallas) is a very different answer than (We’d like to find something bigger.) The first homeowner is hot to trot.
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FHA loans require only 3.5% down, and you can even ask the seller to pay the closing costs.
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Once again, the FHA to the rescue! They often lend money to buyers with less than perfect credit.
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You can’t sharp shoot the real estate market. Once you identify the “bottom,” prices have already moved up.
| | | | Source: Barbara Corcoran (BarbaraCorcoran.com) | | | | | | | |
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| © 2009 Coldwell Banker Real Estate LLC. Coldwell Banker is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Owned and Operated by NRT, LLC. |
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| Making Home Affordable Program What is “Making Home Affordable” all about?
Making Home Affordable is part of President Obama's comprehensive strategy to get the housing market back on track. Through the Making Home Affordable Program, up to 9 million American families may be eligible to refinance or modify their loans to a payment that is affordable now and into the future. Refinancing
If you are a homeowner who is current on your mortgage payments but unable to refinance to a lower interest rate because your home value has decreased, you may be able to refinance. Modification
If you can no longer afford to make your monthly loan payments, you may qualify for a loan modification to make your monthly mortgage payment more affordable. Millions of borrowers who are current, but having difficulty making their payments and borrowers who have already missed one or more payments may be eligible. | |
Are you eligible?
Please use the self-assessment tools provided on MakingHomeAffordable.gov to see if you are among the 7 to 9 million homeowners who may be able to benefit from Making Home Affordable. |
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| Top 10 Tax Tips for Home Buyers, Sellers and Owners |
Tax season is upon us, and homeowners everywhere will reap the benefits of tax breaks and incentives.
1. Deduct the interest you pay on your home loan on your tax return. That means the mortgage interest deduction reduces your tax liability. And because your mortgage payments for the first few years are almost entirely comprised of interest, they are almost entirely tax deductible.
2. Deduct property taxes and points you paid to lower your loan's interest rate. The IRS offsets the expense of your state/local property taxes by allowing you to deduct them from your itemized income tax return. And you get a tax benefit if you paid points to lower your mortgage interest rate.
3. Take advantage of new laws in a challenging market. New homebuyers can get an $8,000 tax credit, short sellers won't be penalized for forgiven mortgage debt, and homeowners can contest their property taxes in a declining market.
4. Request a property tax reassessment if your home's market value has declined. You don't need to pay for a special service to have your local tax assessor adjust your property taxes. If your property value is significantly lower now than when you bought it, show proof of your home's current market value and recent comparable sales in your neighborhood.
5. Research past and proposed assessments that may apply to your home. Understanding property taxes and assessments will give you a truer picture of the cost of homeownership and help you predict and control your monthly expenses.
6. Get a reliable estimate of your property tax bill. If you're buying a home, don't rely on the tax data in the property listing. Depending on the circumstances of the sale, your tax bill can differ from the previous owner's bill.
7. Wrap your property taxes into your monthly mortgage payment. If paying one huge tax bill once or twice a year seems daunting, consider getting an escrow account. Also called an impound account, it protects the lender and offers convenience for the homeowner.
8. Understand how capital gains tax is calculated. When you sell your home, you're taxed on any profit over $250,000 if you are single, $500,000 if married. But calculating your gains isn't as simple as "price you sold it for" minus "price you paid for it." The IRS takes into account the money you put into improving the home as well. So remember to save receipts for any repairs, maintenance and upgrades.
9. Know how your tax situation changes with every real estate move you make. Whether you're buying a home, refinancing or renting out an investment property, understand how you'll be affected tax-wise.
10. See if homeownership lowers your tax liability. Your tax situation varies depending on your stage in life. Examine your payroll withholdings and reduce them to account for the reduction in net tax liability. That means more money in your pocket every pay period. |
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 | Five reasons to buy a home this year |
1. Affordability is better than ever
According to the National Association of Realtors' housing affordability index, homes were more affordable in December than at any other point since the group started the index in 1970. 2. You have a large inventory to choose from
A large selection gives buyers more choices and drives down prices…But if you put off a purchase until inventory shrinks substantially, you might not get as good a price, said Eddie Fadel, author of the book "Don't Rent, Buy!" And be forewarned: It's nearly impossible to time the exact bottom of the housing market and even if you do there's no guarantee you'll make a killing. 3. Builders are offering big discounts
Home builders are getting even more aggressive with their pricing. "[Builders] want to save their credit, save their brand, save their reputation and clear out inventory," he [Fadel] said. 4. Mortgage rates are historically low
It's not just the price of the home that will affect affordability; mortgage terms will also affect your monthly payments…Earlier this year, rates on the popular 30-year fixed-rate mortgage hit a level not seen in decades, and rates have stayed relatively near that low for weeks. 5. You can get a federal tax credit
There's currently a federal credit of up to $7,500 for home buyers who haven't owned a home in at least three years. The credit needs to be paid back, although the repayment feature is removed in the economic stimulus plan that passed in the House of Representatives.
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 | Financial Analyst Cites Positive Signs in the Housing Market |
According to Richard Bove of Ladenburg Thalmann, one of the country's veteran financial analysts, there is a positive dynamic taking shape in the current cycle: - Bove said he expects “housing prices to stabilize and/or rise (in 2009) after a likely boom in mortgage refinancings as rates fall and loan applications increase.”
- Add in the expected massive economic stimulus package being put together on Capitol Hill with the incoming Obama administration – and there's a good chance we're going to see a gradual transformation of the downward cycle into a slow rebound over the coming several quarters.
- Mortgage rates continue to hover at 50-year lows – 5% and even 4.75% for 30-year mortgages, and still lower for 15- and 20-year mortgage terms.
- There are signs that housing prices are stabilizing in some parts of the country. The latest monthly Federal Housing Finance Agency index found home prices up by 0.6% in the Mountain states and by 0.2% in New England.
- We're all paying a lot less at the gas pump, and sharply discounted prices for retail goods and autos.
- Americans are actually saving again, the national savings rate took a nearly 3% jump last month. That might sound small, but it's hugely important if it is the start of a trend.
Keep your eyes open for the small positive signs that are accumulating out there … because all down cycles tail off and come to an end. |
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