Existing-Home Sales Ease Following 4 Monthly Gains
RISMEDIA, September 28, 2009—Existing-home sales in August 2009 gave back some of their strong gain in July but remain above year-ago levels, according to the National Association of Realtors®.
Existing-home sales- including single-family, townhomes, condominiums and co-ops- declined 2.7% to a seasonally adjusted annual rate of 5.10 million units in August from a pace of 5.24 million in July, but remain 3.4% above the 4.93 million-unit level in August 2008. In the previous four months, sales had risen a total of 15.2%.
Lawrence Yun, NAR chief economist, said the tax credit is working. “Home sales retrenched from a very strong improvement in July but continue to be much higher than before the stimulus. The first-time buyer tax credit is having the intended impact of bringing buyers into the market, allowing them to take advantage of very favorable affordability conditions,” he said. “Some of the give-back in closed sales appears to result from rising numbers of contracts entering the system, with some fallouts and a backlog contributing to a longer closing process, but the decline demonstrates we can’t take a housing rebound for granted.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.19% in August from 5.22% in July; the rate was 6.48% in August 2008.
An NAR practitioner survey shows first-time buyers purchased 30% of homes in August, and that distressed homes accounted for 31% of transactions; both were unchanged from July. “The recent trend shows broad improvement in most of the country, but with an expected rise in foreclosures over the next 12 months we need to maintain a healthy level of ready buyers to absorb the inventory. An extension of the tax credit is critical to preserve incentives for financially qualified buyers to enter the market,” Yun said.
He added that many buyers had been on the sidelines during the past few years, waiting for signs of stabilization. “Now that the market is showing some momentum, we have an opportunity to achieve a more rapid and broader stabilization in home prices. Extending and expanding the tax credit also would help to keep other families from becoming upside down in their mortgages or risk foreclosure,” Yun said.
“When home prices show sustained gains, credit will become more widely available to other sectors because Wall Street will be able to price risks confidently. Stable home values will also allow more families to purchase consumer products and provide a strong boost for the broader economy.”
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said time is running very short for the existing tax credit. “Because it’s generally taking 60 days to close on a home after a contract is offered, buyers have little time to act to complete a purchase by the November 30 deadline,” he said. “There’s no guarantee what Congress might do, so there’s really no time to waste. Since Realtors® have unparalleled knowledge of local markets, they can also advise first-time buyers on any additional state or local programs that might be able to offer them financial assistance, and help them close on a home before the tax credit expires.”
Total housing inventory at the end of August fell 10.8% to 3.62 million existing homes available for sale, which represents an 8.5-month supply at the current sales pace, down from a 9.3-month supply in July. Unsold inventory totals are 16.4% lower than a year ago. The national median existing-home price for all housing types was $177,700 in August, down 12.5% from August 2008. Distressed properties continue to downwardly distort the median price because they generally sell for 15 to 20% less than traditional homes. Single-family home sales fell 2.% to a seasonally adjusted annual rate of 4.48 million in August from a level of 4.61 million in July, but are 2.55 higher than the 4.37 million-unit pace in August 2008. The median existing single-family home price was $177,500 in August, down 12.1% from a year ago. Existing condominium and co-op sales slipped 1.6% to a seasonally adjusted annual rate of 620,000 units in August from a spike of 630,000 in July, but are 10.1% higher than the 563,000-unit level a year ago. The median existing condo price was $179,300 in August, which is 15.7% below August 2008.
Regionally, existing-home sales in the Northeast declined 2.2% to an annual pace of 910,000 in August, but are 5.8% above August 2008. The median price in the Northeast was $241,100, which is 10.5% below a year ago. Existing-home sales in the Midwest fell 6.6% in August to a level of 1.14 million but are unchanged from a year ago. The median price in the Midwest was $149,900, down 10.4% from August 2008. In the South, existing-home sales were down 3.1% to an annual pace of 1.89 million in August but are 1.6% above August 2008. The median price in the South was $157,400, which is 11.0% below a year ago. Existing-home sales in the West declined 2.7% to an annual rate of 1.16 million in August but are 7.4% higher than a year ago. The median price in the West was $220,500, down 12.2% from August 2008.
For more information, visit www.realtor.org.
Read more: http://rismedia.com/2009-09-27/existing-home-sales-ease-following-4-monthly-gains/#ixzz0SVdAMpNc
Tuesday, September 29, 2009
Wednesday, September 16, 2009
First-Time Buyers Race to Beat the Clock, Qualify for $8,000 Federal Tax Credit
First-Time Buyers Race to Beat the Clock, Qualify for $8,000 Federal Tax Credit
RISMEDIA, September 15, 2009—First-time home buyers have just 12 weeks to find and close on a home to qualify for the $8,000 Federal tax credit before the November 30th deadline. Those just beginning the process will have to beat the average time it takes to buy a home, a challenge smart buyers can meet even though it’s taking longer today to close most transactions.
Two significant challenges first-time buyers face today include the potential for a lengthy process related to search and closing if not managed carefully at every step, and intensified competition. On average, first-time buyers search 12 weeks to find a home, while closing can take up to 60 days, depending on individual circumstances and local regulations. Additionally, the tax credit has proved to be extremely popular this year, since taking advantage of the first-time homebuyer’s Federal tax credit and relevant state incentives is the most important reason motivating 10.8% of buyers today. In fact, approximately 1.14 million buyers have already filed for the credit. Many more are expected to file for the credit when income taxes are due April 2010.
Still, while time is short and competition high, historically high affordability is a major factor driving first-time home buyers today, a growing group accounting for one third of all purchases in July 2009. The National Association of Realtors’ affordability index in July 2009 was 36.0 percentage points higher than July 2008. Under these conditions the typical median-income family can allocate 15.8% of their gross income to mortgage payments, well below the traditional allowance of 25%. Interest rates, which play a major factor in affordability, remain low, at 5.22% in July for a 30-year fixed rate loan.
Realtor.com President Errol Samuelson explains, “The national median home today costs approximately 174,100. By moving quickly to find and close on a home by November 30, first-time buyers qualifying for the $8,000 tax credit can actually purchase this same home for only $166,100, an almost four and a half percent discount off of the price of a typical new home. Because affordability this year is at its highest level in 28 years, and the market offers an incredible selection of homes within reach of most first-time buyers, we expect their numbers to grow as they pursue today’s once in a generation opportunity to become homeowners.”
Samuelson suggests that by combining effective use of technology and the greater access to information it delivers with expert advice from local Realtors, today’s first-time home buyers can beat the clock and use the $8,000 Federal tax credit along with any available state-level credits to purchase a home under the November 30 deadline. “By moving quickly, being prepared to make decisions in the face of increased competition, and taking the learnings from others to reduce time without cutting corners, first-time home buyers starting today can close on time and qualify for the $8,000 Federal tax credit,” added Samuelson. “To help this important group trying to enter today’s market, Realtor.com offers tips and expert advice that can help expedite the search, negotiation, finance and closing processes so they can beat the clock.”
Tips for the first time home buyer starting their search today:
-Searching – Search While You Sleep – Since 87% of all buyers start online, you probably will too. On Realtor.com it’s easy to sign up for email alerts and create personal portfolios for homes of interest. Soon you’ll be searching while you sleep, at the office or even while you’re at an open house. You’ll be the first to know if a home you want comes up for sale or receives a price reduction.
-Negotiating - Freshness counts. You don’t have time to look at unavailable homes. Stale data on prices, time on market, features, or property values puts you at a disadvantage when negotiating.
-Appraisals - Appraisals can be a problem today; make sure the lender can deliver the appraisal on time. Your loan will not be approved if it doesn’t appraise for the agreed price, so don’t delay. If the property doesn’t appraise for the bid price, ask for a desk appraisal; you’ll receive a second look.
-Finance - Don’t let the financing process slow you down; 35% of first-time buyers find the mortgage application and approval process more difficult than what they expected. Start saving pay stubs and bank statements now. Collect your tax returns; anything proving your income qualifies you for the home you want.
-Closing - Get your insurance company and the home owner association, if applicable, to forward a cost estimate to the escrow company early. This will make it easier for them to more accurately estimate your closing costs, which in many states must be paid in cash at closing.
For more information, visit www.realtor.com.
Read more: http://rismedia.com/2009-09-14/first-time-buyers-race-to-beat-the-clock-qualify-for-8000-federal-tax-credit/#ixzz0RIOBnCDt
RISMEDIA, September 15, 2009—First-time home buyers have just 12 weeks to find and close on a home to qualify for the $8,000 Federal tax credit before the November 30th deadline. Those just beginning the process will have to beat the average time it takes to buy a home, a challenge smart buyers can meet even though it’s taking longer today to close most transactions.
Two significant challenges first-time buyers face today include the potential for a lengthy process related to search and closing if not managed carefully at every step, and intensified competition. On average, first-time buyers search 12 weeks to find a home, while closing can take up to 60 days, depending on individual circumstances and local regulations. Additionally, the tax credit has proved to be extremely popular this year, since taking advantage of the first-time homebuyer’s Federal tax credit and relevant state incentives is the most important reason motivating 10.8% of buyers today. In fact, approximately 1.14 million buyers have already filed for the credit. Many more are expected to file for the credit when income taxes are due April 2010.
Still, while time is short and competition high, historically high affordability is a major factor driving first-time home buyers today, a growing group accounting for one third of all purchases in July 2009. The National Association of Realtors’ affordability index in July 2009 was 36.0 percentage points higher than July 2008. Under these conditions the typical median-income family can allocate 15.8% of their gross income to mortgage payments, well below the traditional allowance of 25%. Interest rates, which play a major factor in affordability, remain low, at 5.22% in July for a 30-year fixed rate loan.
Realtor.com President Errol Samuelson explains, “The national median home today costs approximately 174,100. By moving quickly to find and close on a home by November 30, first-time buyers qualifying for the $8,000 tax credit can actually purchase this same home for only $166,100, an almost four and a half percent discount off of the price of a typical new home. Because affordability this year is at its highest level in 28 years, and the market offers an incredible selection of homes within reach of most first-time buyers, we expect their numbers to grow as they pursue today’s once in a generation opportunity to become homeowners.”
Samuelson suggests that by combining effective use of technology and the greater access to information it delivers with expert advice from local Realtors, today’s first-time home buyers can beat the clock and use the $8,000 Federal tax credit along with any available state-level credits to purchase a home under the November 30 deadline. “By moving quickly, being prepared to make decisions in the face of increased competition, and taking the learnings from others to reduce time without cutting corners, first-time home buyers starting today can close on time and qualify for the $8,000 Federal tax credit,” added Samuelson. “To help this important group trying to enter today’s market, Realtor.com offers tips and expert advice that can help expedite the search, negotiation, finance and closing processes so they can beat the clock.”
Tips for the first time home buyer starting their search today:
-Searching – Search While You Sleep – Since 87% of all buyers start online, you probably will too. On Realtor.com it’s easy to sign up for email alerts and create personal portfolios for homes of interest. Soon you’ll be searching while you sleep, at the office or even while you’re at an open house. You’ll be the first to know if a home you want comes up for sale or receives a price reduction.
-Negotiating - Freshness counts. You don’t have time to look at unavailable homes. Stale data on prices, time on market, features, or property values puts you at a disadvantage when negotiating.
-Appraisals - Appraisals can be a problem today; make sure the lender can deliver the appraisal on time. Your loan will not be approved if it doesn’t appraise for the agreed price, so don’t delay. If the property doesn’t appraise for the bid price, ask for a desk appraisal; you’ll receive a second look.
-Finance - Don’t let the financing process slow you down; 35% of first-time buyers find the mortgage application and approval process more difficult than what they expected. Start saving pay stubs and bank statements now. Collect your tax returns; anything proving your income qualifies you for the home you want.
-Closing - Get your insurance company and the home owner association, if applicable, to forward a cost estimate to the escrow company early. This will make it easier for them to more accurately estimate your closing costs, which in many states must be paid in cash at closing.
For more information, visit www.realtor.com.
Read more: http://rismedia.com/2009-09-14/first-time-buyers-race-to-beat-the-clock-qualify-for-8000-federal-tax-credit/#ixzz0RIOBnCDt
Friday, September 4, 2009
Happy Labor Day
Labor Day is more than just an extra day off from work or simply the last fling of summer. It's a much-deserved rest in recognition of the hard work and daily disciplines that fuel our businesses and drive our economy.
We hope you enjoy this time relaxing with friends and loved ones.
You deserve it.
Monday, August 31, 2009
Only 90 Days Left to use the $8,000 Tax Credit
Did you know it can take up to 30 days to close a home using the $8,000 Tax Credit? You have even less than 90 days to use it before the end of November!
Contact us today to get your first home before November! We can help!
Friday, August 21, 2009
What Would You Do With $8,000?
What Would You Do With $8,000?
What if the government decided today that, instead of bailing out Wall Street, it was going to give every American $8,000? What would you do with the money?
For most Americans, paying off credit card debt would be a great way to use the free money. According to a Nilson Report released in April 2009, the average credit card debt per household in the US was $8,329 at the end of 2008. That money from the government would almost wipe out your debt completely. Imagine being completely debt free.
Healthcare is a big topic these days. According to the most current Census Bureau statistics, some 45.7 million Americans do not have health insurance. So, many Americans might choose to use their $8,000 to enroll their family in a healthcare program through their employer. The federal government tracks the average spending on health insurance for people with job-based coverage, and the most recent figures (from 2005!) indicate that the average individual's premiums were $3,991, while families spent an average of $10,728. Your $8,000 would go a long way in insuring your family.
Some Americans might choose to start a small business. Experts estimate that start-up costs for many new business ventures are between $10,000 - $15,000. With $8,000, a large portion of your initial investment would be covered.
If you really think about it, there are so many things you could do with $8,000. You could open a 529 college savings plan. You could add your 8 grand to the government's $4,500 Cash for Clunkers plan and buy a new car. You could take your family on an amazing once-in-a-lifetime vacation. You could open an IRA and save for retirement...
But what's the point in dreaming. The government's not giving away $8,000, right?
Wrong.
Right now, through November 30th of this year only, the government is giving qualifying first-time home buyers up to $8,000 for purchasing a home (or up to 10% of the purchase price). This is free money that you do not have to pay back. And here's the best part: if you qualify, you can get your money from the IRS this year, even if you've already filed your 2008 taxes.
There are, of course, limitations and other qualifying factors, but they are all pretty reasonable and easy to explain, and we'll be glad to discuss these with you or anyone you know who is looking to buy a home. With today's combination of lower home prices and lower interest rates, this temporary incentive from the government is really a great option for many Americans who act now to finally fulfill their dreams of owning a home.
What if the government decided today that, instead of bailing out Wall Street, it was going to give every American $8,000? What would you do with the money?
For most Americans, paying off credit card debt would be a great way to use the free money. According to a Nilson Report released in April 2009, the average credit card debt per household in the US was $8,329 at the end of 2008. That money from the government would almost wipe out your debt completely. Imagine being completely debt free.
Healthcare is a big topic these days. According to the most current Census Bureau statistics, some 45.7 million Americans do not have health insurance. So, many Americans might choose to use their $8,000 to enroll their family in a healthcare program through their employer. The federal government tracks the average spending on health insurance for people with job-based coverage, and the most recent figures (from 2005!) indicate that the average individual's premiums were $3,991, while families spent an average of $10,728. Your $8,000 would go a long way in insuring your family.
Some Americans might choose to start a small business. Experts estimate that start-up costs for many new business ventures are between $10,000 - $15,000. With $8,000, a large portion of your initial investment would be covered.
If you really think about it, there are so many things you could do with $8,000. You could open a 529 college savings plan. You could add your 8 grand to the government's $4,500 Cash for Clunkers plan and buy a new car. You could take your family on an amazing once-in-a-lifetime vacation. You could open an IRA and save for retirement...
But what's the point in dreaming. The government's not giving away $8,000, right?
Wrong.
Right now, through November 30th of this year only, the government is giving qualifying first-time home buyers up to $8,000 for purchasing a home (or up to 10% of the purchase price). This is free money that you do not have to pay back. And here's the best part: if you qualify, you can get your money from the IRS this year, even if you've already filed your 2008 taxes.
There are, of course, limitations and other qualifying factors, but they are all pretty reasonable and easy to explain, and we'll be glad to discuss these with you or anyone you know who is looking to buy a home. With today's combination of lower home prices and lower interest rates, this temporary incentive from the government is really a great option for many Americans who act now to finally fulfill their dreams of owning a home.
Thursday, August 20, 2009
Tax-Free Weekend
Tax-Free Weekend
We are a week away from the back to school bell, and this weekend we will all be scrambling to get those last minute items. Shoppers can get a break this weekend from sales tax with the states annual tax holiday beginning Friday and extending through Sunday. This saves shoppers about $8 for every $100 spend. New items added to the list this year are backpacks, and most school supplies, that include binders, folders, lunch boxes, pens, pencils calculators, book bags and much more.
For more detailed information click on the link below
Texas Tax Holiday Official Page
We are a week away from the back to school bell, and this weekend we will all be scrambling to get those last minute items. Shoppers can get a break this weekend from sales tax with the states annual tax holiday beginning Friday and extending through Sunday. This saves shoppers about $8 for every $100 spend. New items added to the list this year are backpacks, and most school supplies, that include binders, folders, lunch boxes, pens, pencils calculators, book bags and much more.
For more detailed information click on the link below
Texas Tax Holiday Official Page
Tuesday, August 4, 2009
Pending Home Sales up for Fifth Consecutive Month
Pending Home Sales up for Fifth Consecutive Month
RISMEDIA, August 5, 2009-Pending home sales are up for the fifth consecutive month, the first time in six years for such a streak, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in June, rose 3.6% to 94.6 from an upwardly revised reading of 91.3 in May, and is 6.7% above June 2008 when it was 88.7. The last time there were five consecutive monthly gains was in July 2003.
Lawrence Yun, NAR chief economist, said a combination of positive market factors is fueling the gains. “Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who’ve been on the sidelines. Activity has been consistently much stronger for lower priced homes,” he said. ”Because it may take as long as two months to close on a home after signing a contract, first-time buyers must act fairly soon to take advantage of the $8,000 tax credit because they must close on the sale by November 30.”
The Pending Home Sales Index in the Northeast rose 0.4% to 81.2 in June and is 5.8% above a year ago. In the Midwest the index increased 0.8% to 89.9 and is 11.6% above June 2008. The index in the South jumped 7.1% to 100.7 in June and is 8.9% higher than a year ago. In the West the index rose 2.9% to 100.4 but is 0.2% below June 2008.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, is hopeful that a recently elevated level of contract cancellations will ease. “Last month, Freddie Mac and Fannie Mae clarified that appraisals should be done by professionals with clear local expertise,” he said. “This should mitigate the situation of many valuations done by out-of-area appraisers coming in below the price negotiated between buyers and sellers. Hopefully, in the months ahead, we’ll see an even closer relationship between contract activity and closed transactions.” McMillan said NAR is continuing to press the appraisal issue. “We have asked Congress and the Federal Housing Finance Agency to immediately implement an 18-month moratorium on the new appraisal rules to further address unintended consequences of the new guidelines,” he said.
NAR’s Housing Affordability Index (HAI) remains very favorable. The affordability index stood at 159.2 in July, down from record peaks in recent months but it remains 36.6 percentage points above a year ago. Under these conditions the typical family would devote 15.7% of gross income to mortgage principal and interest, well below the standard allowance of 25%. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.
“A monthly rise in home prices and somewhat higher mortgage interest rates led to a modest decline in affordability in June, but it was still the sixth highest index on record dating back to 1970,” Yun said. “Because housing is so affordable in today’s market, job security and the first-time buyer tax credit are bigger factors in influencing home sales.”
A median-income family, earning $60,700, could afford a home costing $289,100 in June with a 20% downpayment, assuming 25% of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80% of what a median-income family can afford. The affordable price was much higher than the median existing single-family home price in June, which was $181,600.
Yun expects existing-home sales to gradually rise over the balance of the year, with conditions varying around the country. “It appears home sales are on a sounder footing and inventory is gradually being absorbed.”
For more information, visit www.realtor.org.
Read more: http://rismedia.com/2009-08-04/pending-home-sales-up-for-fifth-consecutive-month/#ixzz0NFTbnzEY
RISMEDIA, August 5, 2009-Pending home sales are up for the fifth consecutive month, the first time in six years for such a streak, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in June, rose 3.6% to 94.6 from an upwardly revised reading of 91.3 in May, and is 6.7% above June 2008 when it was 88.7. The last time there were five consecutive monthly gains was in July 2003.
Lawrence Yun, NAR chief economist, said a combination of positive market factors is fueling the gains. “Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who’ve been on the sidelines. Activity has been consistently much stronger for lower priced homes,” he said. ”Because it may take as long as two months to close on a home after signing a contract, first-time buyers must act fairly soon to take advantage of the $8,000 tax credit because they must close on the sale by November 30.”
The Pending Home Sales Index in the Northeast rose 0.4% to 81.2 in June and is 5.8% above a year ago. In the Midwest the index increased 0.8% to 89.9 and is 11.6% above June 2008. The index in the South jumped 7.1% to 100.7 in June and is 8.9% higher than a year ago. In the West the index rose 2.9% to 100.4 but is 0.2% below June 2008.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, is hopeful that a recently elevated level of contract cancellations will ease. “Last month, Freddie Mac and Fannie Mae clarified that appraisals should be done by professionals with clear local expertise,” he said. “This should mitigate the situation of many valuations done by out-of-area appraisers coming in below the price negotiated between buyers and sellers. Hopefully, in the months ahead, we’ll see an even closer relationship between contract activity and closed transactions.” McMillan said NAR is continuing to press the appraisal issue. “We have asked Congress and the Federal Housing Finance Agency to immediately implement an 18-month moratorium on the new appraisal rules to further address unintended consequences of the new guidelines,” he said.
NAR’s Housing Affordability Index (HAI) remains very favorable. The affordability index stood at 159.2 in July, down from record peaks in recent months but it remains 36.6 percentage points above a year ago. Under these conditions the typical family would devote 15.7% of gross income to mortgage principal and interest, well below the standard allowance of 25%. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.
“A monthly rise in home prices and somewhat higher mortgage interest rates led to a modest decline in affordability in June, but it was still the sixth highest index on record dating back to 1970,” Yun said. “Because housing is so affordable in today’s market, job security and the first-time buyer tax credit are bigger factors in influencing home sales.”
A median-income family, earning $60,700, could afford a home costing $289,100 in June with a 20% downpayment, assuming 25% of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80% of what a median-income family can afford. The affordable price was much higher than the median existing single-family home price in June, which was $181,600.
Yun expects existing-home sales to gradually rise over the balance of the year, with conditions varying around the country. “It appears home sales are on a sounder footing and inventory is gradually being absorbed.”
For more information, visit www.realtor.org.
Read more: http://rismedia.com/2009-08-04/pending-home-sales-up-for-fifth-consecutive-month/#ixzz0NFTbnzEY
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