Rumors are circulating that due to improvements in the economy, some investors are moving their investments from the safety of the treasury and putting them back into the more risky, but rewarding stocks. What this means to you is that the low low interest rates may begin to climb, putting a greater emphasis on buyers to get off the fence and buy now.
I have heard that the rates may have jumped nearly .5% overnight. That translates to about a $5,000 price increase when considering your monthly mortgage payments. All signs in my local market suggest that housing prices are bottoming out and with the likelihood that rates may increase soon, you need to get serious about buying. Waiting any longer could cause you to miss it completely.
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Your Realtor of Choice,
Greg Worley
Keller Williams Realty
www.HomeInColumbia.com
Showing posts with label home buying. Show all posts
Showing posts with label home buying. Show all posts
Thursday, May 28, 2009
Tuesday, May 12, 2009
2009 Home Buyer Tax Credit can be used as down payment
Tax Credit Can Be Used for Down Payment
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.
Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.
“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..
He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
Other Solutions for Today's Market
During his address at the summit, Donovan went on to say that the Obama administration plans to further stabilize the housing market. “I do think we have some early signs that the market overall is stabilizing,” Donovan says. “Since January we’ve seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate.”
The morning session included a panel discussion that was moderated by CNBC’s Ron Insana. Panelists examined cutting-edge solutions necessary to promote and preserve homeownership and real estate development, stimulate the economy, and protect the nation’s taxpayers. They also shared their ideas on what the role and responsibility of the federal government is in the revitalization effort.
“Right now the Federal Reserve is the market,” said panelist Jay Brinkman, chief economist for the Mortgage Bankers Association. “What will be the effect when the Fed stops buying?” Brinkman explained that an exit strategy must be planned for the long-term; the federal government cannot continue to support the mortgage markets indefinitely.
“We are thrilled that so many high-caliber individuals were able to join us today at this important meeting to promote stability in the housing market and the U.S. economy,” said NAR President Charles McMillan. “We look forward to an ongoing dialogue and action toward this goal, during our midyear meetings this week and beyond.”
The real estate summit is part of the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo. During the week ending May 16, more than 8,500 REALTORS® will attend meetings, visit lawmakers and inspire action on Capitol Hill.
Source: NAR
This is great news for first time home buyers. If you would like more information about the market conditions in the Columbia, Sc area, please contact me through www.HomeInColumbia.com
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.
Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.
“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..
He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
Other Solutions for Today's Market
During his address at the summit, Donovan went on to say that the Obama administration plans to further stabilize the housing market. “I do think we have some early signs that the market overall is stabilizing,” Donovan says. “Since January we’ve seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate.”
The morning session included a panel discussion that was moderated by CNBC’s Ron Insana. Panelists examined cutting-edge solutions necessary to promote and preserve homeownership and real estate development, stimulate the economy, and protect the nation’s taxpayers. They also shared their ideas on what the role and responsibility of the federal government is in the revitalization effort.
“Right now the Federal Reserve is the market,” said panelist Jay Brinkman, chief economist for the Mortgage Bankers Association. “What will be the effect when the Fed stops buying?” Brinkman explained that an exit strategy must be planned for the long-term; the federal government cannot continue to support the mortgage markets indefinitely.
“We are thrilled that so many high-caliber individuals were able to join us today at this important meeting to promote stability in the housing market and the U.S. economy,” said NAR President Charles McMillan. “We look forward to an ongoing dialogue and action toward this goal, during our midyear meetings this week and beyond.”
The real estate summit is part of the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo. During the week ending May 16, more than 8,500 REALTORS® will attend meetings, visit lawmakers and inspire action on Capitol Hill.
Source: NAR
This is great news for first time home buyers. If you would like more information about the market conditions in the Columbia, Sc area, please contact me through www.HomeInColumbia.com
Sunday, April 12, 2009
A Fresh and New Perspective
In a time where things look grim to many I now have a fresh new perspective as I welcomed my 3rd daughter into the world earlier this week.
Piper Louise was born on April 7th at 3:37pm. She weighed in at 8 lbs 4.7 oz. and measured 19 3/4 inches long. Most importantly, she reminded me of why I get up each morning. When lack of activity in the real estate market beats down on my moral, I am reminded that my motivation is deeper than any market stats the news media can flash on the TV. I know that there are 3 little girls at home that look up to me and depend on me to provide for them. They think that there daddy is the best "house seller" there is and who am I to disagree with them.
As the Spring brings in new blossoms, I have a new focus and feel rejuvenated with offers coming in and new prospects on the horizon. But most of all I have a new addition to my big why.
Hopefully I am not the only REALTOR seeing an increase in activity lately. I also know that regardless of what type of business you're in, if you don't have a "big why" to keep you focused and motivated that you need to find one. Just don't let it be about the money.
Piper Louise was born on April 7th at 3:37pm. She weighed in at 8 lbs 4.7 oz. and measured 19 3/4 inches long. Most importantly, she reminded me of why I get up each morning. When lack of activity in the real estate market beats down on my moral, I am reminded that my motivation is deeper than any market stats the news media can flash on the TV. I know that there are 3 little girls at home that look up to me and depend on me to provide for them. They think that there daddy is the best "house seller" there is and who am I to disagree with them.
As the Spring brings in new blossoms, I have a new focus and feel rejuvenated with offers coming in and new prospects on the horizon. But most of all I have a new addition to my big why.
Hopefully I am not the only REALTOR seeing an increase in activity lately. I also know that regardless of what type of business you're in, if you don't have a "big why" to keep you focused and motivated that you need to find one. Just don't let it be about the money.
Tuesday, February 3, 2009
A look back at Groundhogs Day and a Call to Action
Puxsutawney Phil, the Seer of Seers, Prognosticator of all Prognosticators, saw his shadow, thus predicting an extended Winter. Given his stature and fame, I wonder if good ol' Phil would mind giving us his forecast on the country's current economic condition.
While we may not yet be able to change the weather, we can unite and strongly influence the economy.
The news relayed by the national media outlets paint a grim and gloomy portrait. This information may speak truths about some markets, however it is not a fair representation of the status of all individual and local markets. As a result of the national media, consumer confidence is at an all-time low. We as a nation can take action to jump start an economic recovery one house at a time.
If you are a homeowner who is still deciding whether or not to sell, here are a few things to consider.
- Let's say you want to upsize your home. Now is a great time to do so. Be open to the idea that you may take a loss on the sale of your current home, but by the same account (or discount) you will be receiving a better price on the nice new larger home. When you do the math you will find that your savings on the new home will be greater than the loss on your old one, which means an overall net savings for you.
- If down-sizing is what you had in mind, whether to save money or because of financial difficulties, there may be a solution for you, as well. Banks are more willing, now more than ever, to work with you and help you absorb the financial loss and avoid foreclosure.
- If you don't have to sell, move or you're not struggling to make your payments then don't sell. It's a buyer's market. You can afford to wait until it's a balanced or seller's market again. You may want to consider refinancing to take advantage of the low rates.
On the other hand, if you are looking to buy a home, now is the perfect time. It's called a buyer's market for a reason. I'll give you three.
- Low Rates!!!
- Low Prices!!!
- Lots of Choices!!!
It's simple. Mortgage rates are at an historical low. Did you know that in terms of your payments a 1% reduction in rate is the equivalent of a $10,000 reduction in the home purchase price? Let me put it another way. The lower rates mean that you can buy more house for the money. With lower prices, it means you get double the bang for your buck. Not to mention you have your pick of homes with high inventory levels.
If you are a buyer waiting for the market to hit rock bottom, I suggest you get off the fence and buy now. There are only a lucky few who can claim to have bought when the market bottomed out and even they didn't realize it until after the fact. The truth is, as you patiently wait for the market to hit bottom you will not know it has until prices begin to go back up. At that point it's too late. You missed it. Bummer. Buying now will insure you of getting a good price, rate and selection. In turn, you will be helping out sellers who may be struggling to make ends meet, avoid foreclosure or take a new job through a relocation. This my friends will help families free up what was once disposable income that can be spent on other goods and services, which will lend to the local economy and begin to spread until the economy is once again headed in the right direction. It's a domino effect and buyer's hold the key.
Still not convinced that now is the time to buy. Well I don't know about all the markets out there. However, I do keep track of what is happening in my local market. (Columbia, SC) From 2007 to 2008 the number of home sales dropped 20.6% in our area. Home prices, during the same time only slid 1.7%. Meanwhile in another market area in SC home sales dropped 19.6% while home prices actually increased 2.4%. There are many reporst coming in from December and ealry January that activity is increasing. For some areas around the country the market may have already bottomed out.
So what are you waiting for?
This is my real world perspective. I'm putting the "Real" back in real estate.
Greg Worley
Broker, REALTOR
Keller Williams Realty
www.HomeInColumbia.com
Monday, February 2, 2009
This Month In Real Estate (US): January 2009
This is a very informative video on the current real estate market conditions as a whole. If you would like to know more or have questions, contact me.
Your local economist of choice,
Greg Worley
Broker, REALTOR
Keller Williams Realty
www.HomeInColumbia.com
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