Homebuyer Credit Gets New Life
Key lawmakers in the Senate have tentatively agreed to extend the existing $8,000 tax credit for first-time home buyers and also offer a new $6,500 credit for existing homeowners who have lived in their current residence for a consecutive five-year period in the past eight years.
Home buyers must be under contract by April 30, 2010, and close before July 1.
House Democrats have expressed concern about the cost of the tax credit for the government, and allegations of abuse have resulted in an IRS probe of the program.
Source: Wall Street Journal, Corey Boles and John D. McKinnon (10/29/09)© Copyright 2009 Information Inc.
Friday, October 30, 2009
Tuesday, October 20, 2009
Practitioners Say Luxury Market Is Up
Below is an exerpt form Daily Real Estate News. I found this interesting since we have also noticed an uptick in the higher end market. Whereas the homes values discussed below are generally 1 mil and above our indicator is that homes in the $500,000 and $600,000 range are now being sold. To me this is another sign that the Galveston Real Estate market will be on the upswing in 2010.
The luxury home market is picking up, according to real estate practitioners all over the country. This trend is strictly anecdotal – no hard data yet. In fact, the National Association of REALTORS® say sales of homes priced above $2 million fell 39.1 percent in August compared to the previous year.
But Barbara Feldman, vice president with Saunders & Associates in Long Island, N.Y.’s community of Bridgehampton, says, "We've seen a significant upturn in activity in the last four to six weeks.”
And Charleston, S.C., associate Pat Broghamer with RE/MAX Advanced Realty, says buyers are “making investments in beach homes.
”Kevin Schmidtchen, an associate with Sotheby's International Realty in Santa Barbara, Calif., echoes the sentiment: "We've started to see a fair amount more pending and closed sales here in just the last two to three months."
Source: Investor’s Business Daily, Kathleen Doler (10/15/2009)
The luxury home market is picking up, according to real estate practitioners all over the country. This trend is strictly anecdotal – no hard data yet. In fact, the National Association of REALTORS® say sales of homes priced above $2 million fell 39.1 percent in August compared to the previous year.
But Barbara Feldman, vice president with Saunders & Associates in Long Island, N.Y.’s community of Bridgehampton, says, "We've seen a significant upturn in activity in the last four to six weeks.”
And Charleston, S.C., associate Pat Broghamer with RE/MAX Advanced Realty, says buyers are “making investments in beach homes.
”Kevin Schmidtchen, an associate with Sotheby's International Realty in Santa Barbara, Calif., echoes the sentiment: "We've started to see a fair amount more pending and closed sales here in just the last two to three months."
Source: Investor’s Business Daily, Kathleen Doler (10/15/2009)
Monday, October 19, 2009
Things Condo Buyers Should Consider
Buyers who are considering the purchase of a condominium should inspect the health of the home owner’s association before they close. The seller should provide the buyer all financial documents relating to the association in time for an attorney for the buyer to review them before closing.
Here’s some advice from Leonard Baron, professor of finance at San Diego State University, about the information that the seller should consider:
Here’s some advice from Leonard Baron, professor of finance at San Diego State University, about the information that the seller should consider:
- Does the association budget include money for operating expenses such as water, lights, elevator maintenance, and landscaping?
- Is there extra money set aside in a reserve fund for long-term maintenance? If there is an outside reserve study, that should be provided. If not, there should be adequate money in the reserves right now to cover 50 percent of the estimated cost of repairs over the next 30 years.
- Do the condo’s expenses exceed revenues due to a high foreclosure rate or other reasons that owners’ debts go unpaid?
- If there is a shortfall, does the association have a plan besides cutting back on services for making it up?
Source: The Wall Street Journal, June Fletcher (10/17/2009)
Thursday, October 15, 2009
Congress Debating the Tax Credit
Congress is considering expanding and extending the $8,000 first-time homebuyer tax credit, which expires Nov. 30. More than 1.8 million home buyers will have used the credit by the end of November, including an estimated 355,000 who wouldn’t have bought a home without it, according to the National Association of REALTORS® and other analysts.
Mark Zandi, chief economist for MoodysEconomy.com, is among those in favor of extending the credit. Zandi would also make it available to all homebuyers. "The most fundamental argument for the credit is that nothing works in the economy if housing is falling," Zandi said. "[The credit] is a good insurance policy. It's vital to stem the housing price declines.
"Opponents argue that the tax credit is too expensive and doesn’t help enough people. Extending the credit through the end of 2010 and making it available to single filers earning up to $150,000 and joint filers earning up to $300,000 would cost an estimated $16.7 million. Some in Congress propose using unspent money from the $787 billion stimulus bill to pay for it.
Source: CNNMoney.com, Les Christie (10/14/2009)
Mark Zandi, chief economist for MoodysEconomy.com, is among those in favor of extending the credit. Zandi would also make it available to all homebuyers. "The most fundamental argument for the credit is that nothing works in the economy if housing is falling," Zandi said. "[The credit] is a good insurance policy. It's vital to stem the housing price declines.
"Opponents argue that the tax credit is too expensive and doesn’t help enough people. Extending the credit through the end of 2010 and making it available to single filers earning up to $150,000 and joint filers earning up to $300,000 would cost an estimated $16.7 million. Some in Congress propose using unspent money from the $787 billion stimulus bill to pay for it.
Source: CNNMoney.com, Les Christie (10/14/2009)
Wednesday, October 14, 2009
Homeownership Still A Good Investment
The American dream of homeownership is still a good bet, financial advisors say firmly.
Despite the downturn in the last couple of years, homes have still appreciated an average of 4 percent a year since World War II. Plus, it’s a leveraged investment; a 10 percent down payment yields a 1,000 percent return if the price of the home doubles.
There are also valuable intangibles. Owning a home provides independence, security, community, and a roof over the owner’s head. No one can say that about investing in stock.
Source: Associated Press, Dave Carpenter (10/12/2009)
Despite the downturn in the last couple of years, homes have still appreciated an average of 4 percent a year since World War II. Plus, it’s a leveraged investment; a 10 percent down payment yields a 1,000 percent return if the price of the home doubles.
There are also valuable intangibles. Owning a home provides independence, security, community, and a roof over the owner’s head. No one can say that about investing in stock.
Source: Associated Press, Dave Carpenter (10/12/2009)
Monday, October 12, 2009
Are you going to miss out?
There is a strong sense of urgency brewing. Buyers who have been sitting on the sidelines are preparing to pounce. The indicators are strong that the 2010 Galveston Real Estate market will surpass the 2009 Real Estate market by leaps and bounds.
Why? How do we know this? It is a simple matter of data. In the last 3 months the number of months to sell a home on the West End of Galveston has decreased from 23 to 21.
There are currently 20 West End Second Homes (discretionary) pending. These homes range in price from $109,000 to $1,300,000.
While the higher end Real Estate market (above 500,000) continues to suffer we are experiencing an increase in buyer activity. 1/4 of the West End pending sales will close at $500,000 and better.
All of this activity is occurring during our "off" season. The buyers continue to peruse the inventory as indicated by Prudential's internet activity reports.
The momentum is growing. As the stock market continues to climb and Houston's economy continues to grow so will Galveston's Real Estate market.
Are you going to miss the bottom of Galveston's Real Estate market? Will you be the one next year wishing you had taken advantage of motivated sellers, low interest rates, and 2004 real estate market prices?
The season begins again in March. Why not beat the rush???
Why? How do we know this? It is a simple matter of data. In the last 3 months the number of months to sell a home on the West End of Galveston has decreased from 23 to 21.
There are currently 20 West End Second Homes (discretionary) pending. These homes range in price from $109,000 to $1,300,000.
While the higher end Real Estate market (above 500,000) continues to suffer we are experiencing an increase in buyer activity. 1/4 of the West End pending sales will close at $500,000 and better.
All of this activity is occurring during our "off" season. The buyers continue to peruse the inventory as indicated by Prudential's internet activity reports.
The momentum is growing. As the stock market continues to climb and Houston's economy continues to grow so will Galveston's Real Estate market.
Are you going to miss the bottom of Galveston's Real Estate market? Will you be the one next year wishing you had taken advantage of motivated sellers, low interest rates, and 2004 real estate market prices?
The season begins again in March. Why not beat the rush???
Wednesday, October 7, 2009
A Historic Time to Buy
Young people just starting to invest and buying their first homes are potentially the winners in this recession. First-time homebuyers, most between the ages of 25 and 45, accounted for about 45 percent of home sales from January through July 2009, according to the National Association of REALTORS®
"This is a historic time," says George Jaramillo, a 35-year-old business analyst in Atlanta, who recently bought three homes, two of them foreclosures. "It's a great opportunity to make some great gains in the future."
A study by investment company T. Rowe Price points out that investing when prices are low can result in amazing gains. For instance, between 1970 and 1990, the annualized rate of return for the S&P 500 was 11.5 percent.
"We need to be shouting from the rooftops that this is not the time to get out of the market if you're young," says Christine Fahlund, a senior financial planner with T. Rowe Price. "This is the time to be in the market.
"Source: The Associated Press, Chip Cutter (10/05/2009)
"This is a historic time," says George Jaramillo, a 35-year-old business analyst in Atlanta, who recently bought three homes, two of them foreclosures. "It's a great opportunity to make some great gains in the future."
A study by investment company T. Rowe Price points out that investing when prices are low can result in amazing gains. For instance, between 1970 and 1990, the annualized rate of return for the S&P 500 was 11.5 percent.
"We need to be shouting from the rooftops that this is not the time to get out of the market if you're young," says Christine Fahlund, a senior financial planner with T. Rowe Price. "This is the time to be in the market.
"Source: The Associated Press, Chip Cutter (10/05/2009)
Monday, October 5, 2009
Will that extra bath payoff?
Bathroom Upgrades Pay Off
More than 80 percent of new single-family homes have at least two bathrooms, which occupy an average of 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.
Source: Chicago Tribune, Mike McClintock (09/21/2009)
More than 80 percent of new single-family homes have at least two bathrooms, which occupy an average of 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.
Source: Chicago Tribune, Mike McClintock (09/21/2009)
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