REALTOR® Magazine-Daily News-Nine Consecutive Gains for Pending Home Sales
Nine Consecutive Gains for Pending Home Sales Pending home sales have risen for nine months in a row, a first for the series of the index since its inception in 2001, according to the NATIONAL ASSOCIATION OF REALTORS®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in October, increased 3.7 percent to 114.1 from 110.0 in September, and is 31.8 percent above October 2008 when it was 86.6. The rise from a year ago is the biggest annual increase ever recorded for the index, which is at the highest level since March 2006 when it was 115.2.
Lawrence Yun, NAR chief economist, said home sales are experiencing a pendulum swing. “Keep in mind that housing had been underperforming over most of the past year. Based on the demographics of our growing population, existing-home sales should be in the range of 5.5 million to 6.0 million annually, but we were well below the 5-million mark before the home buyer tax credit stimulus,” he said. “This means the tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future.”
By Region
* Pending sales in the Northeast surged 19.9 percent to 100.2 in October and is 44.2 percent above a year ago.
* In the Midwest, the index rose 11.6 percent to 109.6 and is 36.6 percent higher than October 2008.
* Sales in the South increased 5.4 percent to an index of 115.4, which is 31.6 percent above a year ago.
* In the West, the index fell 11.2 percent to 127.7 but is 21.9 percent above October 2008.
Not Out of the Woods Yet
Yun cautioned that home sales could dip in the months ahead. “The expanded tax credit has only been available for the past three weeks, but the time between when buyers start looking at homes until they close on a sale can take anywhere from three to five months. Given the lag time, we could see a temporary decline in closed existing-home sales from December until early spring when we get another surge, but the weak job market remains a major concern and could slow the recovery process.“
Still, as inventories continue to decline and balance is gradually restored between buyers and sellers, we should reach self-sustaining housing conditions and firming home prices in most areas around the middle of 2010. That would mean broad wealth stabilization for the vast number of middle-class families,” Yun said.Source: NAR
Tuesday, December 1, 2009
Monday, November 23, 2009
Happy Thanksgiving!
Wanting to wish everyone a Happy Thanksgiving. To each of you, I am most thankful for. Hope you all have a fantastic holiday!
Jessica Woldenga
Jessica Woldenga
Real Estate Facts
Real Estate Market FAQs Got questions about where real estate is headed? Here are informed answers to some of the most frequently asked questions about today’s housing market.
When will housing hit bottom?
There isn’t any single answer to this question. It depends on where you live. Home prices are rising again in the most convenient suburbs of such cities as New York and Washington, D.C. California has seen an all time high in the past three months. In other places that are in less demand, prices continue to fall.
How can I figure out the value of my home?
Talking to a real estate professional and/or hiring an appraiser is the best idea. But even after getting a professional opinion, it is hard to tell what a home will sell for until you put it on the market.
Is now a good time for a renter to buy a home?
It could be. Prices in many areas are down significantly from their peak a couple of years ago. Plus, Congress has extended the tax credit for first-time home buyers and added a $6,500 credit for many previous owners of homes who sign a contract to buy by April 30, 2010.
Should I invest in foreclosed homes at auction?
A foreclosure/auction home can be a risky buy, even for the most experienced real estate investors. Use caution.
Source: The Wall Street Journal, James R. Hagerty (11/17/2009)
When will housing hit bottom?
There isn’t any single answer to this question. It depends on where you live. Home prices are rising again in the most convenient suburbs of such cities as New York and Washington, D.C. California has seen an all time high in the past three months. In other places that are in less demand, prices continue to fall.
How can I figure out the value of my home?
Talking to a real estate professional and/or hiring an appraiser is the best idea. But even after getting a professional opinion, it is hard to tell what a home will sell for until you put it on the market.
Is now a good time for a renter to buy a home?
It could be. Prices in many areas are down significantly from their peak a couple of years ago. Plus, Congress has extended the tax credit for first-time home buyers and added a $6,500 credit for many previous owners of homes who sign a contract to buy by April 30, 2010.
Should I invest in foreclosed homes at auction?
A foreclosure/auction home can be a risky buy, even for the most experienced real estate investors. Use caution.
Source: The Wall Street Journal, James R. Hagerty (11/17/2009)
Thursday, November 5, 2009
Tax Credit Extended Plus more......
Both Houses OK Tax Credit Extension, and Expansion
The House today and the Senate yesterday passed legislation to extend the $8,000 home buyer tax credit to May 1, 2010 for first-time buyers. But they did not stop there it gets better.............
They have added a $6,500 tax credit for repeat buyers if they've lived in their home for five of the past eight years. Home prices are capped at $800,000.
Yes you heard that right not only do first time buyers benefit but now any buyer benefits *
The legislation in both houses was included in a bill to extend unemployment benefits and is expected to be signed by President Obama shortly. “REALTORS® appreciate the swift action by Congress to extend the home buyer tax credit and expand it to some current homeowners,” says NAR President Charles McMillan. “As the leading advocate of housing and real estate issues, we urge President Obama to sign this legislation into law quickly to keep the momentum going in the fragile recovery of the nation’s housing market.”Under the bill, income limits are expanded to $125,000 for individuals and $225,000 for joint filers. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.
Households who have binding contracts in place by April 30 will be allowed an additional 60 days to complete their transaction. The deadline for members of the military serving out the U.S. for at least 90 days between Jan. 1, 2009, and May 1, 2010, has been extended one year.Taxpayers can claim the credit on their federal income tax returns.
If the credit exceeds their tax bill, the government will issue a check. Taxpayers will be able to claim the credit on their 2009 income tax return for purchases made in 2010.
Source: The Associated Press (11/5/2009)
* Please talk to your tax advisor on the details of this program
The House today and the Senate yesterday passed legislation to extend the $8,000 home buyer tax credit to May 1, 2010 for first-time buyers. But they did not stop there it gets better.............
They have added a $6,500 tax credit for repeat buyers if they've lived in their home for five of the past eight years. Home prices are capped at $800,000.
Yes you heard that right not only do first time buyers benefit but now any buyer benefits *
The legislation in both houses was included in a bill to extend unemployment benefits and is expected to be signed by President Obama shortly. “REALTORS® appreciate the swift action by Congress to extend the home buyer tax credit and expand it to some current homeowners,” says NAR President Charles McMillan. “As the leading advocate of housing and real estate issues, we urge President Obama to sign this legislation into law quickly to keep the momentum going in the fragile recovery of the nation’s housing market.”Under the bill, income limits are expanded to $125,000 for individuals and $225,000 for joint filers. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.
Households who have binding contracts in place by April 30 will be allowed an additional 60 days to complete their transaction. The deadline for members of the military serving out the U.S. for at least 90 days between Jan. 1, 2009, and May 1, 2010, has been extended one year.Taxpayers can claim the credit on their federal income tax returns.
If the credit exceeds their tax bill, the government will issue a check. Taxpayers will be able to claim the credit on their 2009 income tax return for purchases made in 2010.
Source: The Associated Press (11/5/2009)
* Please talk to your tax advisor on the details of this program
Fha And Condo's
FHA Delays Implementing Rules for Condo Loans
The Federal Housing Administration says it will implement a new approval process for condo financing on Dec. 7 – the second time the deadlines have been pushed back. The delay also brings a relaxation of new rules, according to the Mortgage Bankers Association, which has been negotiating with FHA. Under the latest iteration of the rules, 50 percent of units in a condo project will be eligible for FHA funding and up to 100 percent will be eligible in “well-established” projects with a minimum of 10 percent reserves.
Half of the units will have to be sold to owner-occupants before FHA will back any loans.In an important move, FHA said it wouldn't require the recertification of some 40,000 projects that have already been certified for FHA financing. "If what the MBA says is the deal, it's essentially a nonevent," said mortgage banker Faramarz Moeen-Ziai.The U.S. Department of Housing and Urban Development confirmed a delay in implementation but wouldn’t comment on the changes the MBA says FHA has agreed to.[Editor's note: FHA Commissioner David Stevens talks about the new condo rules and other FHA issues, including appraisal guidelines and the agency's credit performance, in an interview with REALTOR® Magazine.
Source: Inman News, Matt Carter (11/05/2009)
The Federal Housing Administration says it will implement a new approval process for condo financing on Dec. 7 – the second time the deadlines have been pushed back. The delay also brings a relaxation of new rules, according to the Mortgage Bankers Association, which has been negotiating with FHA. Under the latest iteration of the rules, 50 percent of units in a condo project will be eligible for FHA funding and up to 100 percent will be eligible in “well-established” projects with a minimum of 10 percent reserves.
Half of the units will have to be sold to owner-occupants before FHA will back any loans.In an important move, FHA said it wouldn't require the recertification of some 40,000 projects that have already been certified for FHA financing. "If what the MBA says is the deal, it's essentially a nonevent," said mortgage banker Faramarz Moeen-Ziai.The U.S. Department of Housing and Urban Development confirmed a delay in implementation but wouldn’t comment on the changes the MBA says FHA has agreed to.[Editor's note: FHA Commissioner David Stevens talks about the new condo rules and other FHA issues, including appraisal guidelines and the agency's credit performance, in an interview with REALTOR® Magazine.
Source: Inman News, Matt Carter (11/05/2009)
Saturday, October 10, 2009
New Home Buyer tax credit
Aides: Home Buyer Tax Credit Extension Likely
Extending the First-Time Home Buyer Tax Credit, due to expire at the end of November, is high on the Democratic Congressional to-do list, legislative aides said. After Wednesday’s meeting with President Obama and House Speaker Nancy Pelosi (D-Calif.), Senate Majority Leader Harry Reid (D-Nev.) released a statement that the government should “continue efforts to strengthen the housing market by extending the home buyer tax credit.”Mark Zandi, chief economist at Moody’s Economy.com, who is a consultant to Democrats in the administration and Congress, is advocating extending the credit through August and making it available to all home buyers. He said failure to extend the credit just as more foreclosures enter the market will push housing prices down. Also, on Thursday, the House is expected pass legislation to extend the credit through 2010 for people who have been out of the country in the military, intelligence, or foreign services.Source: The New York Times, Jackie Calmes (10/07/2009)
hmmmm interesting. So what do you think? Will/should they extend the credit?
We sure think so......Extending the tax credit will not only help to keep the housing market up, but it will also allow first time homebuyers to purchase a new home. In this market many of the properties we are seeing need to carpet and paint, in addition to sometimes replacing the lawn. This credit allows first time buyer's to get a house and repair what is needed.
Lets keep our fingers crossed and hope it gets extended :)
Extending the First-Time Home Buyer Tax Credit, due to expire at the end of November, is high on the Democratic Congressional to-do list, legislative aides said. After Wednesday’s meeting with President Obama and House Speaker Nancy Pelosi (D-Calif.), Senate Majority Leader Harry Reid (D-Nev.) released a statement that the government should “continue efforts to strengthen the housing market by extending the home buyer tax credit.”Mark Zandi, chief economist at Moody’s Economy.com, who is a consultant to Democrats in the administration and Congress, is advocating extending the credit through August and making it available to all home buyers. He said failure to extend the credit just as more foreclosures enter the market will push housing prices down. Also, on Thursday, the House is expected pass legislation to extend the credit through 2010 for people who have been out of the country in the military, intelligence, or foreign services.Source: The New York Times, Jackie Calmes (10/07/2009)
hmmmm interesting. So what do you think? Will/should they extend the credit?
We sure think so......Extending the tax credit will not only help to keep the housing market up, but it will also allow first time homebuyers to purchase a new home. In this market many of the properties we are seeing need to carpet and paint, in addition to sometimes replacing the lawn. This credit allows first time buyer's to get a house and repair what is needed.
Lets keep our fingers crossed and hope it gets extended :)
Monday, October 5, 2009
Bathroom Upgrades Pay Off
Did you know........
That more than 80 percent of new single-family homes have at least two bathrooms, an average bathroom is 300 square feet of floor space, or 12 percent of the total area, according to a study by the National Association of Home Builders.
The home builder’s study reports a major return on value for extra bathrooms: "When the number of bathrooms is approximately equal to the number of bedrooms, an additional half-bath adds about 10 percent to the home's value, and one additional bath adds about 19 percent."A mid-range bathroom remodel, which costs $10,500 on average nationwide, repays a home buyer at least 100 percent of the outlay when the property is sold, the home buyer study concludes.
Wow....that's amazing!
And Did you also know........
That when it comes to first impression of a home, a interested home buyer is most likely to remember the bathrooms. hmmmm interesting.
Well it's true because when it comes to decorating they say your bathroom is one of the most important places to decorate. Its the place that people remember the most. In fact interior designers will tell you that if you only have $30 dollars to spend on decorating your home your bathroom (guest specifically) is where you should spend it!
What does your bathroom represent?
Check out this link to make your bathroom it's best and check out pictures below of beautiful bathroom's done on a budget from hgtv.
http://www.hgtv.com/bathrooms/bathrooms-on-a-budget-our-10-favorites-from-rate-my-space/pictures/index.html
That more than 80 percent of new single-family homes have at least two bathrooms, an average bathroom is 300 square feet of floor space, or 12 percent of the total area, according to a study by the National Association of Home Builders.
The home builder’s study reports a major return on value for extra bathrooms: "When the number of bathrooms is approximately equal to the number of bedrooms, an additional half-bath adds about 10 percent to the home's value, and one additional bath adds about 19 percent."A mid-range bathroom remodel, which costs $10,500 on average nationwide, repays a home buyer at least 100 percent of the outlay when the property is sold, the home buyer study concludes.
Wow....that's amazing!
And Did you also know........
That when it comes to first impression of a home, a interested home buyer is most likely to remember the bathrooms. hmmmm interesting.
Well it's true because when it comes to decorating they say your bathroom is one of the most important places to decorate. Its the place that people remember the most. In fact interior designers will tell you that if you only have $30 dollars to spend on decorating your home your bathroom (guest specifically) is where you should spend it!
What does your bathroom represent?
Check out this link to make your bathroom it's best and check out pictures below of beautiful bathroom's done on a budget from hgtv.
http://www.hgtv.com/bathrooms/bathrooms-on-a-budget-our-10-favorites-from-rate-my-space/pictures/index.html
Sunday, October 4, 2009
Tax Credit Soon Coming To An End!
Homebuyer's Tax Credit Set to Expire
The $8,000 first time homebuyer's credit is set to expire in November and buyers are busy finding the best deals. Can you believe it....Riverside County home sales rose 14% in July according to market analys. With 7,000 transactions closing escrow, 299 were in Murrieta and 225 in Temecula. Wow that's Great!
The recent rise in home sales is being attributed to both historic low prices, down over 40% from their peak in 2007, and the federal tax credit that grants up to $8,000 to first time homebuyers that is slated to expire in November of this year. Originally expected to end in June, Congress took action to extend home buying credit in an effort to help qualified buyers find great deals on foreclosures.
The tax credit program has been a tremendous success by all accounts, with nearly 20,000 homes in Riverside County changing hands this year. Buyers hoping to get the best prices on homes in addition to the tax credit has made the decision of first time home buying a much easier choice.
But for those of you who have not yet taken advantage of this credit not to worry as they say.....it's never to late....well for now that is. Take advatage of this great time to buy a home....and recieve that great credit. But act fast because it is coming to an end (November 30th) Contact us today and we would be happy to help :) www.jessicawoldenga.com
The $8,000 first time homebuyer's credit is set to expire in November and buyers are busy finding the best deals. Can you believe it....Riverside County home sales rose 14% in July according to market analys. With 7,000 transactions closing escrow, 299 were in Murrieta and 225 in Temecula. Wow that's Great!
The recent rise in home sales is being attributed to both historic low prices, down over 40% from their peak in 2007, and the federal tax credit that grants up to $8,000 to first time homebuyers that is slated to expire in November of this year. Originally expected to end in June, Congress took action to extend home buying credit in an effort to help qualified buyers find great deals on foreclosures.
The tax credit program has been a tremendous success by all accounts, with nearly 20,000 homes in Riverside County changing hands this year. Buyers hoping to get the best prices on homes in addition to the tax credit has made the decision of first time home buying a much easier choice.
But for those of you who have not yet taken advantage of this credit not to worry as they say.....it's never to late....well for now that is. Take advatage of this great time to buy a home....and recieve that great credit. But act fast because it is coming to an end (November 30th) Contact us today and we would be happy to help :) www.jessicawoldenga.com
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