Unless a property is advertised as "Short Sale Approved", no one knows for sure if the property will sell as a Short Sale. Generally, if a property has had an offer submitted to the lender previously for approval and the offer was rejected by the lender or countered, the listing agent will have a pretty good idea of whether or not the lender will agree to a short sale and how much they are willing to accept for a particular property.
If there hasn't been an offer previously submitted, the listing agent is treading in uncharted territory and no one will know for sure if a Short Sale is viable. At that point, everyone involved in the Short Sale is hopeful the offer will be accepted by the lender.
Reasons Lenders May Reject an Offer:
1. Short Sales List Price Is Too Low: A short sale list price generally has little bearing on the actual price a bank may accept. The list price may be too high to attract an offer or too low for the bank to accept. The house needs to be listed at an attractive price to entice an offer from a prospective buyer, but not too low that the bank will automatically reject. Having an experienced Short Sale specialist that is very familiar with the local area and property values in your area will be your best defense in getting the lender to accept an offer on your property.
2. Seller Does Not Qualify for a Short Sale: If the seller is asking for debt forgiveness and they have assets they are at a disadvantage if they are unwilling to work out a repayment plan with the bank. The bank will want to see current financial's and a hardship letter from the seller that explains why they can not afford to pay back the shortfall difference. The seller needs to explain what hardship they have suffered. Just wanting to walk away and get a cheaper house is not a reason to do a Short Sale and most likely the lender will deny the short sale request.
3. Short Sale Package is Incomplete: It is extremely important to have an agent that is experienced in Short Sales to put your package together and submit to the lender. These lenders are overwhelmed and understaffed. If the package is not labeled and packaged as they direct, they may reject the Short Sale just because it did not meet their specifications.
4. Buyer Does Not Qualify: The desire that many prospective buyers have to purchase a home at a great (below market) price and the financial means to do so are two different animals. It is important to have a qualified buyer before an offer is made. Agents will require proof of funds or pre-approval letter prior at the time an offer is made to alleviate going through the whole negotiation process with the lender only to have the buyer not be able to obtain financing.
Buying a Bank-Owned home? What you need to know.
If you are thinking of buying a home, chances are you may be involved in a transaction where the home is owned by a lender, or is needing lender approval, as is the case for Short Sales.
Make your first offer, your best offer. When writing an offer for a property where a lender is involved, it is best to make it as simple as possible, and make it your best because in many cases the lenders do not counter offer. In some cases where multiple offers are submitted, they may ask all buyers to re-submit their highest and best before they decide.
Be prepared for lenders to ask you to signed their own purchase contract. These contracts should include just about everything that a normal contract has, but you need to read it very carefully, as with any contract, so that you know what the process will be and what needs to happen, and when.
Most lenders will not make repairs. If you find out the home needs repairs, you may ask for a credit and some lenders will issue credit, they most likely will not do repairs unless is a safety or health problem that needs to be address in to obtain financing, such as FHA.
Some lenders are requiring to pre-approve buyers themselves before considering an offer. You will not be required to get the loan from them, and you can also insist on them accepting your current approval. Some lenders however, make no exceptions. Having too many credit checks may affect your score in a negative way, so be cautious when letting that take place. A plus on this is that you'll get to see what they can offer you.
Lenders are not required, or able, to disclose all the things a regular seller is. Because the lenders do not have a personal knowledge of the property, they are not able to disclose many things. However, they are not exempt from every thing. You agent will give a disclosure that states what the lenders are exempt from. So this being the case, you must be extra careful as to the inspection of the home.
CLOSE ON TIME. Many lenders have a per diem charge of about $100/per day is you do not close on time. So you must stay on top of the transaction to make sure there no delays cause by something on your side.
Make your first offer, your best offer. When writing an offer for a property where a lender is involved, it is best to make it as simple as possible, and make it your best because in many cases the lenders do not counter offer. In some cases where multiple offers are submitted, they may ask all buyers to re-submit their highest and best before they decide.
Be prepared for lenders to ask you to signed their own purchase contract. These contracts should include just about everything that a normal contract has, but you need to read it very carefully, as with any contract, so that you know what the process will be and what needs to happen, and when.
Most lenders will not make repairs. If you find out the home needs repairs, you may ask for a credit and some lenders will issue credit, they most likely will not do repairs unless is a safety or health problem that needs to be address in to obtain financing, such as FHA.
Some lenders are requiring to pre-approve buyers themselves before considering an offer. You will not be required to get the loan from them, and you can also insist on them accepting your current approval. Some lenders however, make no exceptions. Having too many credit checks may affect your score in a negative way, so be cautious when letting that take place. A plus on this is that you'll get to see what they can offer you.
Lenders are not required, or able, to disclose all the things a regular seller is. Because the lenders do not have a personal knowledge of the property, they are not able to disclose many things. However, they are not exempt from every thing. You agent will give a disclosure that states what the lenders are exempt from. So this being the case, you must be extra careful as to the inspection of the home.
CLOSE ON TIME. Many lenders have a per diem charge of about $100/per day is you do not close on time. So you must stay on top of the transaction to make sure there no delays cause by something on your side.
$2,000 Cash Back On Any New Home.
You'll receive $2,000 cash back on any new construction home purchased from a home builder if I'm your registered agent at time of contract signing. Please contact me for details at 210-849-1800 or at danmurphy@remax.net.
Builder inventory link HERE.
Builder inventory link HERE.
Hitwise Rankings: remax.com Climbs to No. 5
Could consumers in transition be thinking about buying? In February, remax.com jumped from the seventh spot to the fifth spot on the Top 20 Hitwise Real Estate Rankings - passing up Rent.com for the first time in five months.
Hitwise, a subsidiary of Experian, has been collecting and analyzing data directly from Internet Service Providers (ISPs) since 1997. The data is based on the percentage of online traffic to the domain name.
Top 10 Hitwise Real Estate Ranking Report, February 2009
1. realtor.com - 6.97 percent
2. Yahoo! Real Estate - 4.38 percent
3. Zillow - 3.10 percent
4. ZipRealty - 2.53 percent
5. remax.com - 2.05 percent
6. Rent.com - 1.89 percent
7. hud.gov - 1.70 percent
8. Homegain - 1.66 percent
9. ServiceMagic - 1.63 percent
10. Trulia - 1.50 percent
Copyright © 2009 RE/MAX International Inc. 3/24/09
Hitwise, a subsidiary of Experian, has been collecting and analyzing data directly from Internet Service Providers (ISPs) since 1997. The data is based on the percentage of online traffic to the domain name.
Top 10 Hitwise Real Estate Ranking Report, February 2009
1. realtor.com - 6.97 percent
2. Yahoo! Real Estate - 4.38 percent
3. Zillow - 3.10 percent
4. ZipRealty - 2.53 percent
5. remax.com - 2.05 percent
6. Rent.com - 1.89 percent
7. hud.gov - 1.70 percent
8. Homegain - 1.66 percent
9. ServiceMagic - 1.63 percent
10. Trulia - 1.50 percent
Copyright © 2009 RE/MAX International Inc. 3/24/09
HOUSING VALUES RISE, Texas Tops The List.
DALLAS (Dallas Morning News) – Only four U.S. housing markets experienced an increase in value during January, and three of those were in Texas, according to a survey released Monday. First American CoreLogic reports that Austin–Round Rock saw a 3.9 percent increase in housing market value.
Houston–Sugar Land–Baytown reported a 3.6 percent increase and Dallas-Plano-Irving home values jumped 1.5 percent. Throughout Texas, home prices were up by just under 2 percent. By comparison, home prices nationwide fell 11.6 percent in January compared to a year ago.
Houston–Sugar Land–Baytown reported a 3.6 percent increase and Dallas-Plano-Irving home values jumped 1.5 percent. Throughout Texas, home prices were up by just under 2 percent. By comparison, home prices nationwide fell 11.6 percent in January compared to a year ago.
APPLICATIONS INCREASE FROM FALLING MORTGAGE RATES
DALLAS (Dallas Morning News) – Last Wednesday, the Federal Reserve said it would buy up to $300 billion in long-term U.S. Treasuries and increase purchases of Fannie Mae- and Freddie Mac-backed securities to $1.25 trillion, up from $500 billion.
Less than a day after the Fed’s action, fixed rates on conforming 30-year mortgages dropped as much as half a percentage point to well under 5 percent, and many analysts doubt that rates will be headed back up anytime soon.
Except for a day or so in December, rates are at the lowest levels since at least 1965, according to mortgage giant Freddie Mac.
"What you've done is you've created affordability," said Scott Simon, head of mortgage-backed securities at Pacific Investment Management Co. "This will make housing bottom sooner than it would have bottomed, and at a higher price than it would have otherwise bottomed."
The rate drop is likely to encourage more borrowers to see whether they can qualify for the lowest rates.
The question remaining is whether lower rates will jump-start the housing market. As much as three-quarters of the mortgage application activity in recent months has been for refinancing rather than home purchases.
Less than a day after the Fed’s action, fixed rates on conforming 30-year mortgages dropped as much as half a percentage point to well under 5 percent, and many analysts doubt that rates will be headed back up anytime soon.
Except for a day or so in December, rates are at the lowest levels since at least 1965, according to mortgage giant Freddie Mac.
"What you've done is you've created affordability," said Scott Simon, head of mortgage-backed securities at Pacific Investment Management Co. "This will make housing bottom sooner than it would have bottomed, and at a higher price than it would have otherwise bottomed."
The rate drop is likely to encourage more borrowers to see whether they can qualify for the lowest rates.
The question remaining is whether lower rates will jump-start the housing market. As much as three-quarters of the mortgage application activity in recent months has been for refinancing rather than home purchases.
Most 2009 buyers may be first-timers
More than half of those planning to buy in the next 12 months would be first-time homebuyers (53.5 percent), which compares to the 41 percent market share actually taken by first-time homebuyers in 2008, according to the National Association of Realtors.
By Inman News, Tuesday, March 24, 2009.
Inman News
By Inman News, Tuesday, March 24, 2009.
Inman News
San Antonio Texas Property Taxes.
I highly recommend that every Bexar County property owner read this artic www.sanantoniofairtaxes.org
Top mistakes today's home sellers make
By Dian Hymer, Monday, March 23, 2009.
Inman News
Low interest rates could spark a pickup in the home-sale market in some areas. If you're inclined to sell, here are some mistakes you'll want to avoid.
The biggest mistake sellers make is listing at an unrealistic price. If you want or need to sell, your home must be priced at or under current market value, particularly in places where prices are declining.
To avoid pricing too high or too low, carefully research your local market before selling. If you can't get the price you want, and you don't have an urgent need to sell, wait for a better market.
Entire Story
Inman News
Low interest rates could spark a pickup in the home-sale market in some areas. If you're inclined to sell, here are some mistakes you'll want to avoid.
The biggest mistake sellers make is listing at an unrealistic price. If you want or need to sell, your home must be priced at or under current market value, particularly in places where prices are declining.
To avoid pricing too high or too low, carefully research your local market before selling. If you can't get the price you want, and you don't have an urgent need to sell, wait for a better market.
Entire Story
Domino effect of first time home buyers tax credit...Will it happen?
We believe that most home owners don't understand how the $8,000 tax credit will benefit them. The Government believes that first time buyers will purchase existing homes which will allow existing home owners to move up to larger more expensive homes and so forth.
This domino effect will therefore reduce inventories and stimulate the housing market and pull the economy out of the recession. It makes sense in that $100K homes would be purchased by first time home buyers allowing those sellers to move into $200K homes and so forth.
The only problem with this plan is that they are counting on these first time buyers to be credit worthy and have saved the money they need for down payments and closing cost. However, many of these potential purchasers are part of the "got-to-have-it-now" generation who have not saved and now realize they must stop spending and start saving. They have stopped using their credit cards and are instead paying off their credit card debt. They are not buying cars or houses.
Many existing home owners will benefit from the tax credit but will there be enough to dramatically impact our recovery? Will the government extend the program past December 1, 2009? I guess we'll just have to wait and see how it unfolds.
This domino effect will therefore reduce inventories and stimulate the housing market and pull the economy out of the recession. It makes sense in that $100K homes would be purchased by first time home buyers allowing those sellers to move into $200K homes and so forth.
The only problem with this plan is that they are counting on these first time buyers to be credit worthy and have saved the money they need for down payments and closing cost. However, many of these potential purchasers are part of the "got-to-have-it-now" generation who have not saved and now realize they must stop spending and start saving. They have stopped using their credit cards and are instead paying off their credit card debt. They are not buying cars or houses.
Many existing home owners will benefit from the tax credit but will there be enough to dramatically impact our recovery? Will the government extend the program past December 1, 2009? I guess we'll just have to wait and see how it unfolds.
It's a once in a life time gift!
Full Story Here.
March 21 (Bloomberg) -- The Obama administration put the finishing touches on a plan to remove troubled assets from banks’ balance sheets that will be unveiled early next week.
Treasury Secretary Timothy Geithner intends to expand the Federal Reserve’s new $1 trillion Term Asset-Backed Securities Loan Facility to buy frozen assets, according to people familiar with the proposal. The revamped Fed program will sit alongside the Treasury’s planned public-private investment funds, while the Federal Deposit Insurance Corp.’s role will probably involve buying distressed loans, the people said.
Blogger comment: With so much government money (our money) being spent on the repair of the financial system, interest rates at 80 year lows and hyper-inflation coming soon, the bottom of the real estate market can't be far off.
When interest rates start going back up, it will be rapid. When hyper-inflation begins, prices will skyrocket. It saddens me to think of all of the people that are currently waiting for the housing market bottom, only to have possibly already missed it. When you can buy a property for 40%-50% off at 4.5% (or less) interest, jump on it. It's a once in a life time gift!
March 21 (Bloomberg) -- The Obama administration put the finishing touches on a plan to remove troubled assets from banks’ balance sheets that will be unveiled early next week.
Treasury Secretary Timothy Geithner intends to expand the Federal Reserve’s new $1 trillion Term Asset-Backed Securities Loan Facility to buy frozen assets, according to people familiar with the proposal. The revamped Fed program will sit alongside the Treasury’s planned public-private investment funds, while the Federal Deposit Insurance Corp.’s role will probably involve buying distressed loans, the people said.
Blogger comment: With so much government money (our money) being spent on the repair of the financial system, interest rates at 80 year lows and hyper-inflation coming soon, the bottom of the real estate market can't be far off.
When interest rates start going back up, it will be rapid. When hyper-inflation begins, prices will skyrocket. It saddens me to think of all of the people that are currently waiting for the housing market bottom, only to have possibly already missed it. When you can buy a property for 40%-50% off at 4.5% (or less) interest, jump on it. It's a once in a life time gift!
REPORT: The Healthiest Housing Markets for 2009
San Antonio, Texas is #4 in the nation.
2008 total building permits: 10,261
San Antonio is another Texas market that is still adding jobs, about 18,000 last year. A city of more than 2 million people now, its population is also growing, at a 2.8 percent annual clip through last year. Existing-home prices are barely declining in San Antonio, down less than 1 percent in the last year, to an affordable median price of $152,800, 25 percent below the national average of $200,500, according to the National Association of Realtors. The upper end of the housing market was hurt recently when AT&T announced it would be moving its corporate headquarters to Dallas.
Busiest builders: D.R. Horton, K.B. Home, Centex Homes, Pulte Homes, Fieldstone Communities
2008 total building permits: 10,261
San Antonio is another Texas market that is still adding jobs, about 18,000 last year. A city of more than 2 million people now, its population is also growing, at a 2.8 percent annual clip through last year. Existing-home prices are barely declining in San Antonio, down less than 1 percent in the last year, to an affordable median price of $152,800, 25 percent below the national average of $200,500, according to the National Association of Realtors. The upper end of the housing market was hurt recently when AT&T announced it would be moving its corporate headquarters to Dallas.
Busiest builders: D.R. Horton, K.B. Home, Centex Homes, Pulte Homes, Fieldstone Communities
A CONSUMER GUIDE TO THE FIRST-TIME HOMEBUYER FEDERAL INCOME TAX CREDIT
A CONSUMER GUIDE TO THE FIRST-TIME HOMEBUYER FEDERAL INCOME TAX CREDIT
As Modified in the American Recovery and Reinvestment Act
February 2009.
FIRST-TIME HOMEBUYER FEDERAL INCOME TAX CREDIT:
EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009.
The amount of the homebuyer federal income tax credit is the lesser of 10% of the cost of the home bought or $8,000.
Any single-family residence (including a condo, co-op, or townhouse) may be an eligible property under the homebuyer income tax credit, provided it will be used as the homebuyer's principal residence.
This homebuyer income tax credit reduces income tax liability. The $8,000 tax credit is a clean refundable credit, unlike the one that was passed last summer, which required a repayment. If you qualify as a first-time buyer (i.e., haven't been a homeowner in the past 3 years), then you can claim the $8,000 to reduce your tax burden. If the $8,000 is greater than the tax you owe, then you will get a refund check for the difference. Example: you owe $2,000 in taxes on April 15, 2010. But if you bought a home before the stimulus expiration on Dec. 1, 2009, then you will get a tax refund check for $6,000 from the IRS.*
In order to be eligible for the homebuyer income tax credit in full, the homebuyer can have an annual adjusted gross income of no more than $75,000 ($150,000 on a joint return). A homebuyer with an annual adjusted gross income above that level and up to $95,000 ($170,000 on a joint return) is eligible for a reduced tax credit.
The homebuyer income tax credit is designed for first-time homebuyers, which means the homebuyer (and/or the homebuyer's spouse) can not have owned a principal residence in the 3 years prior to purchase of the eligible property.
A homebuyer who utilizes revenue bond financing may be eligible for the homebuyer income tax credit.
There is no repayment of the homebuyer income tax credit by the homebuyer.
However, if the eligible property is resold within three years of purchase, the entire amount of homebuyer income tax credit is recaptured on the sale.
The First-Time Homebuyer Federal Income Tax Credit is effective for purchases on or after January 1, 2009 and before December 1, 2009. This guide reflects a modification from the First-Time Homebuyer Federal Income Tax Credit, which remains in effect for homes purchased by eligible homebuyers between April 9, 2008 and Dec. 31, 2008.
As Modified in the American Recovery and Reinvestment Act
February 2009.
FIRST-TIME HOMEBUYER FEDERAL INCOME TAX CREDIT:
EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009.
The amount of the homebuyer federal income tax credit is the lesser of 10% of the cost of the home bought or $8,000.
Any single-family residence (including a condo, co-op, or townhouse) may be an eligible property under the homebuyer income tax credit, provided it will be used as the homebuyer's principal residence.
This homebuyer income tax credit reduces income tax liability. The $8,000 tax credit is a clean refundable credit, unlike the one that was passed last summer, which required a repayment. If you qualify as a first-time buyer (i.e., haven't been a homeowner in the past 3 years), then you can claim the $8,000 to reduce your tax burden. If the $8,000 is greater than the tax you owe, then you will get a refund check for the difference. Example: you owe $2,000 in taxes on April 15, 2010. But if you bought a home before the stimulus expiration on Dec. 1, 2009, then you will get a tax refund check for $6,000 from the IRS.*
In order to be eligible for the homebuyer income tax credit in full, the homebuyer can have an annual adjusted gross income of no more than $75,000 ($150,000 on a joint return). A homebuyer with an annual adjusted gross income above that level and up to $95,000 ($170,000 on a joint return) is eligible for a reduced tax credit.
The homebuyer income tax credit is designed for first-time homebuyers, which means the homebuyer (and/or the homebuyer's spouse) can not have owned a principal residence in the 3 years prior to purchase of the eligible property.
A homebuyer who utilizes revenue bond financing may be eligible for the homebuyer income tax credit.
There is no repayment of the homebuyer income tax credit by the homebuyer.
However, if the eligible property is resold within three years of purchase, the entire amount of homebuyer income tax credit is recaptured on the sale.
The First-Time Homebuyer Federal Income Tax Credit is effective for purchases on or after January 1, 2009 and before December 1, 2009. This guide reflects a modification from the First-Time Homebuyer Federal Income Tax Credit, which remains in effect for homes purchased by eligible homebuyers between April 9, 2008 and Dec. 31, 2008.
U.S. NEW HOME CONSTRUCTION SURGES.
WASHINGTON (Associated Press) – Construction of new homes and apartments in February was 22.2 percent higher than in January, according to a report issued today by the Commerce Department. Total activity was at a seasonally adjusted annual rate of 583,000 units.
Despite the increase, construction activity was 47.3 percent below where it was a year ago. Last month’s surge was led by a big increase in apartment construction, which can be highly volatile from month to month.
Increases were reported in all areas of the country except the West, which has been hardest hit by the current housing slump.
Despite the increase, construction activity was 47.3 percent below where it was a year ago. Last month’s surge was led by a big increase in apartment construction, which can be highly volatile from month to month.
Increases were reported in all areas of the country except the West, which has been hardest hit by the current housing slump.
San Antonio home prices stay flat
By Jennifer Hiller - Express-News
San Antonio's home prices remain in neutral — good news when many other housing markets look more like a car crash on the side of the road.
San Antonio's median price remained steady at $145,100 compared to February 2008 when the median price was $144,900, according to the San Antonio Board of Realtors.
And while fewer homes sold last month than at the same time last year — 1,097 homes sold, down 26 percent from February 2008 — San Antonio's home buyers have shifted into house-hunting mode the last few months, according to SABOR.
The number of homes under contract and nearing a sale increased in February for the fourth month in a row — a sign that buyers are shaking off the Thanksgiving, Christmas and New Year's holidays and getting into house-hunting mode for the traditional springtime and summer buying season.
San Antonio's home prices remain in neutral — good news when many other housing markets look more like a car crash on the side of the road.
San Antonio's median price remained steady at $145,100 compared to February 2008 when the median price was $144,900, according to the San Antonio Board of Realtors.
And while fewer homes sold last month than at the same time last year — 1,097 homes sold, down 26 percent from February 2008 — San Antonio's home buyers have shifted into house-hunting mode the last few months, according to SABOR.
The number of homes under contract and nearing a sale increased in February for the fourth month in a row — a sign that buyers are shaking off the Thanksgiving, Christmas and New Year's holidays and getting into house-hunting mode for the traditional springtime and summer buying season.
Real Estate Divorce Scam
The married couple bought their home for approximately $300,000 in 2005, at the height of the market. Now, just four years later, their home is worth a mere $150,000. The couple divorced, and the wife quit claimed the home to the husband as a part of the divorce settlement. The husband, in turn, decided to short sale the home. The wife, using her maiden name, submitted an offer on the home. The bank, not recognizing the relationship between the two, accepted the short sale offer. The couple is now planning on remarrying in 3-4 months.
‘Hospital of the future' opens in Stone Oak
By Joni Simon - Contributing Writer/North Central News
The role of the north central area as the new medical heart of San Antonio was cemented further on Monday when the Methodist Hospital System opened Methodist Stone Oak Hospital, the city's first new full-service hospital in nearly 20 years. The hospital is also attached to a 120,000 square-foot medical office building, where physicians and specialists in all fields will practice.
The role of the north central area as the new medical heart of San Antonio was cemented further on Monday when the Methodist Hospital System opened Methodist Stone Oak Hospital, the city's first new full-service hospital in nearly 20 years. The hospital is also attached to a 120,000 square-foot medical office building, where physicians and specialists in all fields will practice.
The Top 10 Foreclosure States as of February
Click map to enlarge.
1. Nevada: 1 in 70 homes
2. Arizona: 1 in 147 homes
3. California: 1 in 165 homes
4. Florida: 1 in 188 homes
5. Idaho: 1 in 358 homes
6. Michigan: 1 in 360 homes
7. Illinois: 1 in 369 homes
8. Georgia: 1 in 389 homes
9. Oregon: 1 in 446 homes
10. Ohio: 1 in 451 homes
*Courtesy of RealtyTrac
What is a Realtor's VOW? Why must I register to do an MLS Search?
Real estate brokers now have a new powerful tool called a Virtual Office Website (VOW), due to a settlement between the US Department of Justice and the National Association of REALTORS®. Broker sites can now provide more information to their customers than non-REALTOR® websites, and this is important as consumers are constantly looking for more information when they are looking to buy or sell real estate.
Registration is required to access this level of real estate information through the settlement agreement because it was determined that this information should only be shared when there is an expressed working relationship with the consumer and REALTOR®.
(Full Article)
Registration is required to access this level of real estate information through the settlement agreement because it was determined that this information should only be shared when there is an expressed working relationship with the consumer and REALTOR®.
(Full Article)
Positive real estate housing developments.
Real Estate Outlook: Balancing the News
By Kenneth R. Harney
There are some positive real estate housing developments out there.
Let's start with housing affordability. What will ultimately get the turnaround ball rolling will be the ability of ordinary consumers, in large numbers, to afford to buy a home with their current incomes at current mortgage rates. And right now, the affordability equation is at its most favorable point in decades. In local markets across the country, more households with median incomes can now afford to buy the median-priced house than at any time since 1970, when the National Association of Realtors first began its "Housing Affordability Index." Thanks in part to rising household incomes and continuing declines in the prices of housing being sold, the index jumped by 3 points in January alone and now stands at its all-time record high.
Here's another significant trend that gets almost no media attention: Almost all economists agree that a huge obstacle standing in the way of a housing recovery is the big overhang of unsold houses in inventory in many local markets. But inventories have been steadily declining over the past couple of months, and in January alone dropped another 3 percent to the lowest level in more than two years.
We are burning off the excess unsold supply of houses clogging local markets -- and that bodes well for stabilizing prices in the months ahead. Add in Congress's new $8,000 nonrepayable tax credit for buyers who haven't owned a house during the past three years and you've got the potential to pull hundreds of thousands of people off the sidelines and into the market during the remainder of 2009.
By Kenneth R. Harney
There are some positive real estate housing developments out there.
Let's start with housing affordability. What will ultimately get the turnaround ball rolling will be the ability of ordinary consumers, in large numbers, to afford to buy a home with their current incomes at current mortgage rates. And right now, the affordability equation is at its most favorable point in decades. In local markets across the country, more households with median incomes can now afford to buy the median-priced house than at any time since 1970, when the National Association of Realtors first began its "Housing Affordability Index." Thanks in part to rising household incomes and continuing declines in the prices of housing being sold, the index jumped by 3 points in January alone and now stands at its all-time record high.
Here's another significant trend that gets almost no media attention: Almost all economists agree that a huge obstacle standing in the way of a housing recovery is the big overhang of unsold houses in inventory in many local markets. But inventories have been steadily declining over the past couple of months, and in January alone dropped another 3 percent to the lowest level in more than two years.
We are burning off the excess unsold supply of houses clogging local markets -- and that bodes well for stabilizing prices in the months ahead. Add in Congress's new $8,000 nonrepayable tax credit for buyers who haven't owned a house during the past three years and you've got the potential to pull hundreds of thousands of people off the sidelines and into the market during the remainder of 2009.
Loan Scam Uses RE/MAX Name to Dupe Consumers
By Deborah Ball, RE/MAX Times Associate Editor
A fake company is using the RE/MAX name to scam consumers for loans - and RE/MAX International asks you to be on the alert for suspicious activity.
A fake company is using the RE/MAX name to scam consumers for loans - and RE/MAX International asks you to be on the alert for suspicious activity.
Real Estate Transfer Tax Is Proposed.
To address budget shortfalls due to the economic slowdown, lawmakers in Austin are turning to the real estate industry as the funding source for their special interest programs. Many of these programs have absolutely nothing to do with anything related to the real estate industry. Three bills have already been filed calling for the implementation of a sales tax on real estate transactions, also known as a real estate transfer tax, and there will be more such bills in the coming weeks.
Please call your state senator and voice your opinion on this critical issue.
Please call your state senator and voice your opinion on this critical issue.
Foreign Investors: Now is the Time to Get into the U.S. Real Estate Market.
There has never been a better time for foreign investors to purchase real estate in the United States. Simply put, historically low home prices plus the rising value of many foreign currencies equals a real estate investment that is second to none. People all over Europe are recognizing this opportunity and taking this chance to own their own home in the U.S. Recently, in many cities, foreign investors are coming to real estate agents requesting to buy numerous homes at a time. Why? It is really one of the safest investments that you could possibly make.
It is only a matter of time before the U.S economy stabilizes and recovers from the current recession. With President Obama so determined to stabilize the housing market, change is bound to come sooner rather than later. When that happens, homes purchased during this down time will spike in value and investors will see a dramatic return on their investment.
It is only a matter of time before the U.S economy stabilizes and recovers from the current recession. With President Obama so determined to stabilize the housing market, change is bound to come sooner rather than later. When that happens, homes purchased during this down time will spike in value and investors will see a dramatic return on their investment.
Get ready to fight the Appraisal District.
In many neighborhoods, property values are sinking. But property taxes? Many of us are still paying like it’s 1999.
Homeowners across the country are starting to realize that property taxes, which are supposed to be based on property values, are not sinking as fast as they should be. Your municipality is not likely charging you more out of spite - even if property tax hikes sometimes feel that way.
Here’s what’s happening: To be more efficient, most local governments only appraise your house every couple of years. On the years they don’t physically look at your home to decide what it’s worth, they base the assessment on the assumption that home values will increase marginally from year to year.
Your property tax appraisal report should arrive in the mail soon. If the assessed value looks high, challenge it. If your challenge is successful, you will realize a savings of a few hundred dollars off your tax bill.
Homeowners across the country are starting to realize that property taxes, which are supposed to be based on property values, are not sinking as fast as they should be. Your municipality is not likely charging you more out of spite - even if property tax hikes sometimes feel that way.
Here’s what’s happening: To be more efficient, most local governments only appraise your house every couple of years. On the years they don’t physically look at your home to decide what it’s worth, they base the assessment on the assumption that home values will increase marginally from year to year.
Your property tax appraisal report should arrive in the mail soon. If the assessed value looks high, challenge it. If your challenge is successful, you will realize a savings of a few hundred dollars off your tax bill.
Half Acre Lot With Views! $57,750
Priced below county assessed value. Beautiful half acre, oak tree studded, corner lot on a cul-de-sac/dead-end street with outstanding views. Neighborhood amenities include fishing lake, olympic size swimming pool, tennis courts, clubhouse, par 3 golf course, jogging trails and much more. Some view lot's in the neighborhood sell for more than twice this much! The lot across the street sold for $75K. Hurry, this bargain won't last!
Call Dan Murphy at 210-849-1800.
Point Bluff in Rogers Ranch $555,000
Prestigious luxury Custom home, with encl. pool, in (gated) Point Bluff at Rogers Ranch. Beautiful ceiling treatments and art niches thru-out. Floor to ceiling slate front, gas/wood burning fireplace. Large downstairs split master with outdoor pool access. Separate shower/Jacuzzi tub and huge 14x11 walk-in closet. All bedrooms have a full bath plus a half bath down. Office/study off entry. Kitchen has dbl. ovens, granite island and custom 42" cabinets. 3 car garage finished out w/ slat-wall paneling. Four bedroom, 4 1/2 baths. 3,784 square feet. Call Dan Murphy 210-849-1800
Encouraging sign for the markets ahead.
Good news? Housing inventory is down: The total number of homes for sale has dropped to a two-year low; that’s an encouraging sign for the markets ahead.
Builder magazine’s list of “Healthiest Housing Markets for 2009.”
The Good News! Congratulations, Texas! Five Texas cities swept the top spots on Builder magazine’s list of “Healthiest Housing Markets for 2009.” Houston ranked first, Austin second, Fort Worth third, San Antonio fourth and Dallas fifth. Texas continues its trend of weathering the recession better than most other states. The state’s major metros top the nation in home price appreciation over the last year according to a study done by California’s First American CoreLogic, Inc.
Austin–Round Rock leads the country’s largest core-based statistical areas (CBSA) in home price appreciation with a 3.7 percent increase in 2008, according to First American CoreLogic. Houston–Sugar Land–Baytown experienced a price appreciation of 3.3 percent over the last year, putting it right behind. Dallas-Plano-Irving homes appreciated 1.92 percent and San Antonio’s homes 0.17 percent, putting them third and fourth in the nation.
Of the 958 smaller communities the study observed, College Station–Bryan experienced the sixth highest home price appreciation, with an increase of 6.78 percent. Overall, Texas homes saw an appreciation of 1.83 percent in 2008, putting the Lone Star State sixth among all state rankings.
Austin–Round Rock leads the country’s largest core-based statistical areas (CBSA) in home price appreciation with a 3.7 percent increase in 2008, according to First American CoreLogic. Houston–Sugar Land–Baytown experienced a price appreciation of 3.3 percent over the last year, putting it right behind. Dallas-Plano-Irving homes appreciated 1.92 percent and San Antonio’s homes 0.17 percent, putting them third and fourth in the nation.
Of the 958 smaller communities the study observed, College Station–Bryan experienced the sixth highest home price appreciation, with an increase of 6.78 percent. Overall, Texas homes saw an appreciation of 1.83 percent in 2008, putting the Lone Star State sixth among all state rankings.
Home Buyer Tax Credit Checklist: Do You Qualify?
By LEE FERRAN: ABC News
According to the new plan, first-time home buyers who buy a home this year will be eligible to receive an $8,000 tax credit -- if they meet a battery of qualifications.
"For first-time home buyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit," said IRS Commissioner Doug Shulman, in a news release. "This important change gives qualifying home buyers cash they do not have to pay back."
According to the new plan, first-time home buyers who buy a home this year will be eligible to receive an $8,000 tax credit -- if they meet a battery of qualifications.
"For first-time home buyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit," said IRS Commissioner Doug Shulman, in a news release. "This important change gives qualifying home buyers cash they do not have to pay back."
Foreclosure Scams Up as 'Piranhas' Circle.
ABC News, by Matt Gutman.
It was $3,500 Nickie Struthers couldn't afford -- but desperate to stave off foreclosure, the 45-year-old and her fiance, Dr. Dan Howard, a surgeon, scribbled their signatures on the check they thought would yield salvation. She handed the check to someone she'd done business with in the past, a mortgage broker-turned-foreclosure rescuer. But months went by, and the broker seemed to disappear. He had promised to modify her loan, she said, "but he wouldn't take our phone calls, e-mails, nothing. I never thought this would happen."
It was $3,500 Nickie Struthers couldn't afford -- but desperate to stave off foreclosure, the 45-year-old and her fiance, Dr. Dan Howard, a surgeon, scribbled their signatures on the check they thought would yield salvation. She handed the check to someone she'd done business with in the past, a mortgage broker-turned-foreclosure rescuer. But months went by, and the broker seemed to disappear. He had promised to modify her loan, she said, "but he wouldn't take our phone calls, e-mails, nothing. I never thought this would happen."
Details of Home Loan Plan Are Released.
Click here for the details of the Home Loan Plan. It's called the Making Home Affordable initiative.
National Association of Realtors Scam Alert.
WASHINGTON (National Association of Realtors) – The National Association of Realtors (NAR) has learned that its name is being used as part of a property rental scam.
In this scam, rental property is offered to consumers, who are led to believe that NAR is functioning as an intermediary to receive rental deposits from prospective tenants and, upon receipt of the deposit, to deliver the keys to the property to the tenant. The tenant is instructed to send money via Western Union to NAR's purported agent in the United Kingdom.
NAR has contacted law enforcement officials to have the matter investigated.
Complaints can be filed with the Internet Crime Complaint Center, sponsored by the Federal Bureau of Investigation and the National White Collar Crime Center.
In this scam, rental property is offered to consumers, who are led to believe that NAR is functioning as an intermediary to receive rental deposits from prospective tenants and, upon receipt of the deposit, to deliver the keys to the property to the tenant. The tenant is instructed to send money via Western Union to NAR's purported agent in the United Kingdom.
NAR has contacted law enforcement officials to have the matter investigated.
Complaints can be filed with the Internet Crime Complaint Center, sponsored by the Federal Bureau of Investigation and the National White Collar Crime Center.
San Antonio Ranks High as Energy Efficient City.
WASHINGTON (U.S. Environmental Protection Agency) – Texas' four major metros are among the 25 U.S. cities that boasted the most Energy Star–certified buildings last year.
Has housing found a floor?
By Irwin Kellner, MarketWatch
PORT WASHINGTON, N.Y. (MarketWatch) -- Home prices are closer to stabilizing today than at any time in the past nine years.
Based on the latest data, median selling prices for new and existing homes combined now equal 2.9 times median household incomes, nationwide. This is exactly the ratio that prevailed during the halcyon days of the 1980s, when sales and construction of housing were booming. Three years ago, just before the housing bubble burst, this ratio was 4.5 times incomes.
PORT WASHINGTON, N.Y. (MarketWatch) -- Home prices are closer to stabilizing today than at any time in the past nine years.
Based on the latest data, median selling prices for new and existing homes combined now equal 2.9 times median household incomes, nationwide. This is exactly the ratio that prevailed during the halcyon days of the 1980s, when sales and construction of housing were booming. Three years ago, just before the housing bubble burst, this ratio was 4.5 times incomes.
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