Your Online Guide to Galveston Real Estate

Foreclosures down in Galveston County

2011-10-23T05:24:00.000-07:00

Foreclosure filings — default notices, scheduled auctions and bank repossessions — fell in Texas, where 10,148 properties were reported in August, a 4 percent decrease from July and 29 percent below the level reported for August 2010, according to the latest RealtyTrac® U.S. Foreclosure Market Report.

Texas had the 24th highest rate in the country with one in every 958 housing units with a foreclosure filing in August.

California continues to lead the nation in terms of total properties with foreclosure filings by a large margin, reporting 59,383 properties with a foreclosure filing. Second ranked Florida reported 23,569 properties with foreclosure filings during the month. Moving up to third place was Michigan, where 13,016 properties with foreclosure filings were reported. Illinois jumped a spot to the fourth highest total, reporting 12,493 properties with foreclosure filings while Georgia dropped two spots and took fifth place, tallying 11,743 properties with foreclosure filings.

The remaining states that make up the nation’s top 10 in August include Arizona (11,081), Texas (10,148), Ohio (9,841), Nevada (9,677) and Colorado (4,933). The top 10 accounted for 73 percent of the nation’s total foreclosure activity for the month.

Kaufman County posts top foreclosure rate in the state for August
One in every 268 housing units in Kaufman County received a foreclosure filing in August — 2.1 times the national average and 3.6 times the state average — the highest foreclosure rate of all Texas counties for the month. Bastrop County had the second highest rate of one in every 391 housing units with a foreclosure filing during the month — 1.5 times the national average and 2.5 times the state average. Rockwall County had the third highest rate of one in every 394 housing units with a foreclosure filing during the month — 1.5 times the national average and 2.4 times the state average.

Harris County led the state in foreclosure activity, reporting 2,485 properties with foreclosure filings for the month. Dallas County was second highest, reporting 1,403 properties with foreclosure filings. Tarrant County was third, reporting 972 properties with foreclosure filings. Fourth highest was Bexar County, recording 863 properties with foreclosure filings. Travis County was fifth tallying 373 properties with a foreclosure filing.

State the nation’s seventh largest contributor to total foreclosure activity in August
Texas accounted for 4 percent of the 228,098 properties with foreclosure filings reported nationwide in August. Total U.S. activity increased by more than 7 percent from July, but was down nearly 33 percent from the level reported in August 2010. One in every 570 U.S. housing units received a foreclosure filing during the month.

“The big increase in new foreclosure actions may be a signal that lenders are starting to push through some of the foreclosures delayed by robo-signing and other documentation problems,” said James Saccacio, chief executive officer of RealtyTrac. “It also foreshadows more bank repossessions in the coming months as these new foreclosures make their way through the process.”

The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing entered into the RealtyTrac database during the month — broken out by type of filing by state, county and metropolitan statistical area. Some foreclosure filings entered into the database during the month may have been recorded in previous months. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). If more than one foreclosure document is received for a property during the month, only the most recent filing is counted in the report. The report also checks if the same type of document was filed against a property in a previous month. If so, and if that previous filing occurred within the estimated foreclosure timeframe for the state the property is in, the report does not count the property in the current month.

Median Sale Price for Galveston is relatively unchanged

2011-08-20T04:44:00.000-07:00

The median sales price varies throughout the year but when compared to the same time as the previous year it is relatively unchanged. Is this an indicator that the market is finally stabilizing?

2nd Quarter Galveston Island Statistics

2011-07-20T09:13:00.000-07:00

The 2nd quarter absorption report shows a 13.5 month supply of homes on the market. As you move up in the price range the longer it takes to sell a home. Homes under $400,000 are twice as likely to sell vs. homes priced greater than $400,000 in which there is a two year supply.

West End of Galveston 1st Quarter 2011 Results are in....

2011-04-14T12:20:00.001-07:00

The monthly absorption rates for the West End of Galveston Island are depicted above. Most notable is the fact that over the last 12 months 64% of the transactions sold for under $300,000; 77% under $400,000; and 85% under $500,000.

The number of units sold the 1st quarter 2011 equals the number of units sold the 1st quarter 2010 on the West End of Galveston. However the volume and average sales price has decreased 9%. Probably most notable is the inventory has decreased 11%. This will help stabilize the prices as the number of buyers increase this Summer.

Gambling in Texas????

2011-02-25T15:55:00.000-08:00

UT/TT Poll: Texans Are Ready to Roll the Dice
•by Ross Ramsey
•2/23/2011
A majority of the state's voters say they're ready for full-blown casino gambling, according to the latest University of Texas/Texas Tribune poll.

In a range of questions on social and other issues, they say they support requiring voters to produce photo IDs, government aid to the poor, the death penalty and requiring doctors to show sonogram results to women seeking abortions.

"The thing that stands out here is that gambling has been consistent [in previous polling]," says pollster Jim Henson, who teaches government and runs the Texas Politics Project at UT. "Texans are not ideologically opposed to revenue increases."

The support for gaming has grown since we last asked the question a year ago. In the new survey, 56 percent say they would allow full casino gambling in Texas. Another 6 percent would expand it, but only to Indian reservations; 12 percent would allow an expansion only in existing locations (racetracks), and the rest would either leave the law alone, 11 percent, or ban gambling altogether, 8 percent. That's a combined "no" vote of 19 percent.

When we last checked with voters on this issue, in February 2010, casinos had the support of 40 percent of voters, and the combined leave it/ban it vote was 31 percent.

Legislators, faced with a budget shortfall of $15 billion to $27 billion, are expecting to see proposals for slot machines at race tracks to more liberal bingo laws to full casinos in the state's major cities and tourist areas on the coast. That sort of legislation requires constitutional amendments, which require two-thirds approval from both the House and the Senate and then approval from voters. Recent efforts to expand the state's gaming laws — bingo, horse and dog tracks, and the lottery are allowed now — have fallen short. But all of those existing forms were approved by legislators in the face of previous big budget shortfalls, which gives hopes to proponents this year.

An earlier part of the poll on the state budget found that 61 percent of Texans would support legalizing and taxing casinos as a way to balance the budget.

Support for requiring photo IDs for voters is overwhelming, with 75 percent in favor and 17 percent opposed. It's favored by virtually every subgroup in the survey: Republicans, independents and Democrats; whites, blacks and Hispanics; men and women; and urban, suburban and rural. Hispanics — one of the populations many fear would be disadvantaged by such a law — favor showing photo IDs by a 68 percent to 22 percent margin. Democrats favor it by a 58 to 32 percent split, independents by a 70 to 19 percent margin. The photo ID law is aimed at voter fraud; on a list of the most important problems facing the state, Texas voters put the voting system and electoral fraud at the bottom.

Texans are divided when asked under what conditions abortion should be legal, with 37 percent saying women should always be able to obtain abortions as a matter of personal choice. The next biggest group, at 31 percent, would allow abortions only in cases of rape, incest and when the life of the mother is in danger. Another 14 percent would allow abortions for other reasons but only after the need for the abortion has been clearly established. And 13 percent say state law should never permit abortions.

Republicans were most likely to approve of abortion only with the three exceptions. A majority of Democrats would make it a matter of personal choice. Hispanics, at 18 percent, were more likely than whites, 13 percent, or blacks, 8 percent, to say it should never be permitted.

Requiring doctors to conduct sonograms and to make the pictures and sounds available to the women before performing abortions has the support of most Texans, with 54 percent in favor (including 38 percent strongly in favor) and 36 percent opposed (including 25 percent strongly opposed). It's favored by a majority of Republicans and independents and opposed by a majority of Democrats. Both men, at 56 percent, and women, at 53 percent, support the idea.

Republican politicians watching the influence of the Tea Party won't find much in social issues to worry about, says pollster Daron Shaw, a professor of government at UT. "The notion that the Tea Party is comprised of a bunch of social issues is overstated," he says. "Nothing appears to divide them from rank-and-file Republican voters on these issues."

Support for capital punishment remains strong in Texas, with 78 percent in favor and only 18 percent against. Both Democrats and Republicans, churchgoers and non-churchgoers, voters in various ethnic groups, and men and women all favor it.

Physician-assisted suicide for people with terminal illnesses has the support of 47 percent of Texas voters, with 36 percent opposed and 17 percent undecided. Voters aged 65 and over were most opposed to the idea, with 45 percent in opposition; every other age group had more support than opposition for it. Those who attend church once a week or more were also opposed to the idea.

Ask Texans whether the government has a responsibility to provide social services for the poor and 12 percent say no. The rest are split, with 23 percent saying the government should supply many social services, 27 percent saying some social services and 25 percent saying few social services.

Pollsters also asked whether Texans want to take redistricting away from the governor and the Legislature and hand it over to an appointed independent commission. More like that notion than oppose it, but it doesn't have majority support: 44 percent would favor the change, 24 percent would oppose it, and 32 percent don't have an opinion. Democrats, who are out of power in state government, want to give the map-making to an independent panel. Republicans, who are in, don't. The independents are with the Democrats on this one.

This University of Texas/Texas Tribune poll is an internet survey of 800 registered voters conducted Feb. 11-17 and has a margin of error of +/- 3.46 percent.

Coming tomorrow: A look at Texans' views on immigration.

© 2011 The Texas Tribune

Galveston Island Real Estate Market Statistics

2010-03-20T03:44:00.000-07:00

The link below depicts the Real Estate market on Galveston Island over the past year. If you run your pointer over the graph it will give you the exact number.

http://www.garygreene.com/terabitzApi/graph/alert.php?id=241

As you can see the graphs indicate an upward swing in volume for February from the previous year. A majority of this is a reflection of fewer "as is" hurricane damaged homes selling for $20,000 to $50,000. This is also reflected in the increase in average sales price

The quantity sold in February 2010 was virtually the same as the quantity sold in February 2009.

The supply of available homes is on the rise which is typical for this time of year.

The most interesting graph is reflected for the foreclosures. The new foreclosures coming on the market appears to be leveling off while the number of foreclosure sales appears to be rising. The interesting item to note is not reflected in the graph. A majority of foreclosures sold close for a price greater than this list price. The attraction to foreclosed properties is phenomenal.

Remember this graph is for the entire Island. Tomorrow I will post for the West End of Galveston.

14454 Spyglass Circle - Galveston, Texas

2010-03-09T05:20:00.000-08:00

Contemporary Beachfront home in Pirates Beach West. The beachside of the home is protected by State Owned 600ft of wetlands.

Check out the pool built in the deck of this home!

See more of this gorgeous fully furnished and professionally designed home at www.14454spyglass.com

Think you're in a buyer's market - think again!

2010-03-03T16:43:00.001-08:00

Are you a buyer looking for a foreclosure? Are you one of the many who believe foreclosures are the bargains of the day. Think again!

When you make an offer on a foreclosure you have just entered a seller's market; you, the buyer have no control.

But wait, you say, I will get a great "deal" if I buy a foreclosure. Really??? How great is it when you are in a bidding war with 39 other buyers. Yes, 39. One foreclosure at this time has 40 offers.

When your agent comes back to you and says "they want your highest and best offer", you are now in a bidding war and if you want the home you better be prepared to offer more than asking price - which by the way is just a base price. It is not the end of the line price.

Do your self a favor. Listen to your REALTOR and shop for your home. Look for those motivated sellers whose homes have been on the market a year or more. You'd be surprised what great "deals" you can find with the everyday seller who can pay his bills but still wants to sell his home. Don't be like the 99% of buyers going straight to the foreclosure. Save yourself some time and heart ache by looking at all possible options.

Buyers who wait may lose a lot

2010-03-02T09:08:00.000-08:00

Potential home buyers who delay have a lot to lose.

First-time home buyer and move-up tax credits worth $8,000 and $6,500, respectively, expire April 30. Buyers who qualify get a dollar-for-dollar reduction in taxes or a cash payment if they don’t pay enough taxes to cover the credit.

Other factors that should spur buyers:

Low mortgage rates. If the Federal Reserve stops buying mortgage-backed securities at the end of March, 30-year rates will almost certainly rise to more than 6 percent.

Rising prices. About 30 percent of markets are already experiencing price increases. Prices are falling in 12 percent of markets, says Fiserv (but that only helps if you want to live there).

Source: Money Magazine, Beth Braverman (03/02/2010)

Foreclosure Bargains Getting Harder to Find

2010-02-26T05:04:00.000-08:00

Home buyers hoping to snag a really good deal on a foreclosed home are finding it increasingly difficult because supply is shrinking.

The number of foreclosures that are available for sale nationwide fell to 617,000 in December, down from 845,000 in November 2008, reports Barclays Capital.

Not only have attractive homes in popular neighborhoods already been snapped up, but also government help for distressed buyers is delaying more foreclosures.

Demand is driving up prices. Investors say typical prices have climbed from 75 percent of appraised value to 85 percent or higher when there are bidding wars.

Source: The Wall Street Journal, James R. Hagerty (02/23/2010)

Interest Rates to Remain Low

2010-02-26T04:37:00.000-08:00

Fed: Interest Rates to Remain Low
Investors breathed a sigh of relief Wednesday when Federal Reserve Chair Ben Bernanke told Congress that interest rates are likely to remain low for an extended period. The economy, he said, "still requires support for recovery."

Investors see these low rates as a boon to a recovery of employment and business.

Bernanke’s announcement also took the edge off the news Wednesday that housing sales hit a new low in January.

"Even though nothing he said was particularly new, it was just enough to calm the ruffled feathers that were out there," said Jim McDonald, chief investment strategist at Northern Trust in Chicago.

Source: The Associated Press, Tim Paradis (02/24/2010)

Now is the Time to Buy on Galveston Island - interest rates on the rise

2010-02-12T05:16:00.000-08:00

Fed Plans to Pull Back Money

Federal Reserve Chair Ben Bernanke released a formal proposal Wednesday to collect the trillions of dollars that the Federal Reserve has spent to prop up the economy.

Bernanke emphasized that the economy still needs the support of easy money, but he warned that the Fed will soon have to “tighten financial conditions” and raise interest rates. He didn’t specify how much, although he offered some reassurance that the increase won’t be dramatic immediately.

In his report, Bernanke said the Fed plans to sell securities while simultaneously offering to rebuy them at some point.

He also said the Fed plans to sell the equivalent of certificates of deposit to banks and financial firms and take a piece of the banks’ reserves in return.

The release of Bernanke’s proposal initially rattled the stock market but later stocks crept up again.

Source: CNNMoney.com, Jennifer Liberto (02/10/2010

4 Reasons to Sell Now

2010-02-09T05:17:00.000-08:00

Selling a property in this tough market can seem like a challenge. Here are four factors that actually make this a good time to post a For-Sale sign.

Sell low and buy low. Because all property values are down, the loss on the property a home owner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he’ll be in better shape.

Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time home buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.

Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.

Good help is available. Really talented real estate practitioners, contractors, and designers are available and eager for business.

Source: McClatchy Tribune, Kate Forgach (02/07/2010)

Market Confidence is Growing

2010-02-05T05:38:00.000-08:00

Real Estate CEOs Say Business Is Improving

The 110 members of the Real Estate Executive Roundtable are more positive about their industry in the first quarter of 2010 than they were in 2009 with the sentiment index at 73, up from 63 in the fourth quarter of 2009.

The sentiment index measures confidence in real estate market conditions. However, a common concern of respondents is the employment picture. As one CEO commented, "There are 20 million or more people who are underemployed or unemployed. Businesses are being very cautious. The federal government is considering raising taxes. All of this is causing uneasiness."

Approximately two-thirds of respondents said capital—for both debt and equity—is more accessible now compared to a year ago, during the height of the financial crisis.

Source: Real Estate Roundtable (02/03/2010)

The New Normal Real Estate Market Defined

2010-02-04T06:17:00.001-08:00

What Will the Market's New Normal Be?
In a new study, "Housing in America: The Next Decade," Urban Land Institute senior resident fellow John McIlwain says the housing market will not return to what it was prior to the downturn but rather that a "new normal" will take its place.

He expects another 10 percent decrease in residential prices this year, a jump in the number of borrowers abandoning "underwater" mortgages, and a change in consumer perceptions of homeownership.

"The emotional impact on the children and parents and disillusion about the 'joys' of homeownership will be intense; new attitudes to homeownership and the American dream will emerge," McIlwain writes.

He expects home price appreciation to hover around 1 percent or 2 percent per year after the market recovers and the national homeownership rate to drop from 67 percent currently to 62 percent by 2020.

In the coming decade, McIlwain expects the following:
Older baby boomers to move to urban, mixed-use, mixed-age centers near family instead of retiring to Sun Belt communities;
Immigrants to snub the suburbs in favor of more close-knit communities;
Younger boomers to face the challenges of lost home equity and a smaller pool of move-up buyers;
Generation Y to rent for long periods by choice or because they are paying off student loans or have stagnant incomes.

Source: Inman News (02/01/10)

Foreclosures with closing costs paid by Fannnie Mae

2010-01-30T05:27:00.000-08:00

Fannie to Offer Closing Cost Aid on Foreclosures

Fannie Mae, the largest provider of residential home funding in the United States, announced Friday that it would pay the closing costs on purchases of foreclosed homes in its inventory.

The government-controlled company said buyers of qualified properties will get up to 3.5 percent in closing costs, or an equivalent amount for the purchase of new appliances.

The goal of Fannie is to clear out the nearly 50,000 properties it has in inventory— listed on HomePath.com, the Web site created by Fannie Mae last year to sell the growing number of foreclosed homes.

"Attracting qualified buyers to the market and reducing inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover," said Terry Edwards, executive vice president for credit portfolio management, in a statement.

Source: Reuters News, Al Yoon (01/28//2010)

Housing is near Bottom

2010-01-29T03:52:00.000-08:00

Freddie Mac CEO: Housing Is Near Bottom

The inventory of foreclosed houses still hampers the recovery of the housing sector, but overall, the U.S. housing market appears to be at or near bottom, Freddie Mac CEO Charles Haldeman told the Detroit Economic Club on Tuesday.

He predicted that the 30-year fixed mortgage rate would remain between 5 percent and 6 percent through 2010.

"The big downside risk to all this is a large wave of homes now in foreclosure potentially hitting the market at prices that are destructive," Haldeman said.

Source: Reuters News, Soyoung Kim (01/26/2010)

This is the common theme for the Galveston market. Fortunately, we did not have the volume of investor purchases in 2005 - 2007 as California, Florida, and Nevada which created many of the foreclosures in these resort markets. Overall, our foreclosure result is minimal as compared to other markets.

Housing Economists: Sales Are on the Rise

2010-01-20T18:53:00.000-08:00

Daily Real Estate News | January 20, 2010 | Share
Housing Economists: Sales Are on the Rise
The housing recovery should gain moment in 2010, but the improvement will still be slow, according to a panel of economists speaking at the International Builders Show in Las Vegas.

"It won't be a strong recovery, but it will be a recovery," said David Crowe, chief economist for the National Association of Home Builders.

Crowe forecast that sales of new homes will rise by about 33 percent while resales will go up 7 percent. He expects prices to remain stable in most areas, but some cities may see some slight declines.

"I believe we've seen the worst of the house price declines ... The stage is set for the consumer to return," Crowe said.

Source: Associated Press, Alex Veiga (01/19/2010)

The Market is Heating Up while the Wind Chill is dropping!

2010-01-10T10:33:00.001-08:00

"They" said it would happen and we all knew that eventually it would. The buyer activity is heating up and it is only the second week of January.

During the coldest week we have had in years, I showed property every day of the week. I wrote 2 offers and received 1 from another Realtor. My phone has rung everyday from buyers wanting to buy - not sellers wanting to list.

What a difference one year makes! Whether it is a good stock market; rising interest rates; fear of inflation; or the rising price of oil - most everyone is in agreement - the time to buy Real Estate in Galveston, Texas is now.

If you are sitting on the sidelines it is time to stand up and get in the game. While we will see new listings come on the market over the next 2 months, you can be sure that the homes that have been on the market the longest are the ones that will go first. These are the motivated sellers - not the sellers coming new into the market trying to time the rise in home sales.

If you are a buyer and want to know which homes are the best bargains - call me! There are several available but who knows for how long.

Home Prices Likely to hit Bottom in March

2009-12-24T05:52:00.000-08:00

Home prices in 45 of the largest housing markets are expected to fall another 4.2 percent before they hit bottom in March, according to First American CoreLogic’s LoanPerformance Home Price Index. By October 2010, prices are expected to be heading upward again by about 1 percent compared to 2009. The report warned that this progress could be jeopardized by an increasingly large “shadow inventory” of homes owned by banks but not yet on the market. The problem is particularly acute in Michigan and Ohio cities, the report said. It projected a 12.7 percent further decline in values in Detroit, an 11.4 percent decline in most of the rest of southeast Michigan, and a 6.3 percent fall in Cleveland.

The report expects the strongest recoveries next year in California cities. These include:

San Francisco, up 5.7 percent
Los Angeles, 5 percent
San Diego, 4.7 percent
Sacramento, 4.6 percent

Source: Inman News (12/21/2009)

More Foreclosures to Come

2009-12-18T18:11:00.000-08:00

More than 1.7 million homeowners were verging on foreclosure this fall, making it likely that these houses will soon end up on the market one way or the other, driving down overall housing values.

"We're going to be dealing with high levels of distressed (sales) in the marketplace for at least a couple of years," says Mark Fleming, chief economist of researcher First American CoreLogic, which has been studying the problem.

Some real estate practitioners say they fear that this onslaught is coming. "We've been in recovery mode for most of the year. How many foreclosures do they have to dump on the market to affect that? I don't know," says Deborah Farmer, owner of StarLight Realty in Tampa, Fla. "Any house priced under $225,000 will be affected by a large increase in foreclosures in this market."

Source: Associated Press, Alan Zibel (12/17/2009)

Do it yourself Solar Panels

2009-12-11T17:13:00.000-08:00

Lowe’s, the home-improvement chain, will begin selling do-it-yourself, 40-pound solar panels nationwide for $895 each. The panels are designed by Akeena Solar, Inc., based in Los Gatos, Calif. Akeena says installation is doable for a novice, but applying for government and utility permits might take some expertise. “You put solar panels on your roof without a permit, bad things (will) happen to you," said Jeff Wolfe, CEO of solar installer groSolar. "The utility could shut off the power." Akeena panels produce 175 watts of electricity, enough to power a flat-screen TV. Most purchasers will want more than one. Lowe’s also is offering software that allows homeowners to use their home computers to monitor the performance of each panel.

Source: Associated Press, Chris Kahn (12/10/2009)

The time to Buy is now!

2009-12-11T16:24:00.000-08:00

Mortgage Rates Creep Back Up

After last week's decrease to a record 4.71 percent, interest on 30-year fixed mortgages rose to 4.81 percent this week, Freddie Mac reported. While the Federal Reserve's effort to purchase $1.25 trillion in mortgage-backed securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae has helped keep rates attractive, Freddie Mac chief economist Frank Nothaft says they rose because a favorable unemployment report pushed long-term bond yields up slightly. With the Fed program projected to end in March, the Mortgage Bankers Association forecast in October that 30-year fixed mortgages will rise to 5.4 percent next year, increase to 6 percent in 2011, and hit 6.3 percent in 2012. Source: Inman News (12/11/2009)

With rates on the rise and anxious sellers ready to unload this Winter may well prove to be the bottom of the Galveston Real Estate Market.

Home Values Have Been Stabilizing

2009-12-09T16:27:00.000-08:00

U.S. homes lost $489 billion in value during the first 11 months of 2009. That’s significantly less than the $3.6 trillion lost during 2008 and evidence that home values are stabilizing, says Zillow.com, online real estate research firm.

Properties in 48 of the 154 markets tracked by Zillow rose in value this year, but Zillow’s Chief Economist Stan Humphries believes prices could decline again in 2010. “We believe that demand will come under downward pressure as mortgage rates creep back up after the first quarter and that housing supply will experience upward pressure as the volume of foreclosures continues to remain high. Both these factors will challenge the recent stabilization of home prices,"

Humphries said in a statement.Areas where home prices rose the most in 2009 were:

Boston
Providence
Denver, Colo.
Atlanta, Ga.
Rochester, N.Y.

Areas where homes continued to lose the most value:

Los Angeles
Chicago
New York
Miami-Fort Lauderdale

PhoenixSource: Zillow.com (12/0920/09)

IRS SETS NEW RULES FOR TAX CREDIT

2009-12-09T04:07:00.000-08:00

The IRS has spelled out guidelines for eligibility for the home buyer credit when co-borrowers purchase a property.

When a home-owning parent of an adult child co-signs for a mortgage and both names appear on the note, the IRS says that under some circumstances, the first-time home buyer can qualify for the whole amount. The IRS says the parent doesn’t qualify for any portion of the credit, but if the child hasn’t owned a home during the three years preceding the current purchase and can qualify based on income, he or she can be allocated the entire $8,000 credit.

When unmarried individuals co-purchase a home and only one of them is eligible for the credit, then the full $8,000 can be allocated to the eligible buyer.

Source: Washington Post Writers Group, Kenneth R. Harney (12/04/2009)

30 Year Rates Hit Record Low

2009-12-05T05:07:00.000-08:00

The average interest rate for 30-year mortgages has fallen to the lowest level since Freddie Mac began compiling its weekly survey in 1971, declining to 4.71 percent this week from 4.78 percent a week ago.

Rates also were more attractive for 15-year fixed loans, which fell from 4.29 percent to 4.27 percent, but many consumers may not have qualified for them because they now face higher credit standards from lenders.

Still, the Mortgage Bankers Association's index of application demand, which rose 2.1 percent on a seasonally adjusted basis during Thanksgiving week from the previous week, shows that consumers were looking to take advantage of mortgage rates at a historic low.

Source: USA Today, Stephanie Armour (12/04/09)

Tax Credit Quandaries Answered

2009-11-28T03:54:00.000-08:00

Daily Real Estate News November 25, 2009

The complexity of new home buyer tax credits leaves potential buyers with many questions. Here are answers to some of the most confusing:

How does a current home owner qualify for the $6,500 credit?

Buyers must have lived in their homes for at least five out of the last eight years. The home they buy must become their primary residence, but buyers don’t have to sell their previous home. They can use the previous home as a rental or a second home and still claim the credit.

Does the new home have to be more expensive than the one the buyer currently owns?

No. It is fine to use it to downsize. If the property sells for more than $800,000, the buyers don’t qualify.

Can buyers who are building a new home claim the credit?

Yes, although the contract must be in place by April 30 and the buyer must move in by July 1.

Can buyers claim the credit if they purchase a home from a relative?

No. The legislation prohibits taxpayers from claiming the credit if the sale is between “related parties,” including parent, grandparent, child, or grandchild.

Source: USA Today, Sandra Block (11/24/2009)

Pending Home Sales Rise for Record Eight Straight Months

2009-11-13T12:12:00.000-08:00

Pending home sales rose again, marking eight consecutive monthly gains – the longest streak since measurement began in 2001, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in September, rose 6.1 percent to 110.1 from a reading of 103.8 in August, and is 21.2 percent higher than September 2008 when it stood at 90.9. The gain from a year ago is the largest annual increase on record, and the index is at the highest level since December 2006 when it was 112.8.

Lawrence Yun, NAR chief economist, said the momentum is understandable. “What we’re witnessing is a rush of first-time buyers trying to beat the expiration of the tax credit at the end of this month,” he said. “Home values will stabilize sooner rather than over-correcting. That, in turn, will mean wealth stabilization for the vast number of middle-class families and lay the foundation for a durable economic recovery.”

NAR estimates approximately 3 million renters are now financially well-qualified to buy a median-priced home. “As long as buyers do not overstretch and stay well within their budget, a sizable pent-up demand can be tapped among financially qualified potential buyers,” Yun said. “Although the tax credit is greatly reviving the existing home market, new-home sales may continue to struggle as home builders hold back production to drive down inventory. In addition, there remains an ongoing credit crunch for construction loans.”

The Pending Home Sales Index in the Northeast slipped 2.0 percent to 83.6 in September but remains 16.9 percent above September 2008. In the Midwest the index rose 8.1 percent to 98.2 in September and is 17.8 percent higher than a year ago. In the South, pending home sales increased 4.9 percent to an index of 109.7 and is 22.8 percent above September 2008. In the West the index jumped 10.2 percent to 143.8 and is 23.7 percent above a year ago.

Yun added that strong near-term reports should not be overstated. “We’re clearly not out of the woods because an excess of homes remains on the market despite recent improvements,” he said. “Although current inventory is getting closer to price equilibrium, foreclosures will continue to enter the pipeline. An extended and expanded tax credit would help absorb this incoming inventory.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
# # #
*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.
A forecast for housing and the economy will be released November 13 at 11 a.m. PST at the 2009 REALTORS® Conference & Expo in San Diego. Existing-home sales for October will be reported November 23 and the next Pending Home Sales Index will be on December 1; release times are 10 a.m. EST.
Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data, tables and surveys also may be found by clicking on Research.
NAR at a Glance

© Copyright NATIONAL ASSOCIATION of REALTORS® Headquarters: 430 North Michigan Avenue, Chicago, IL 60611
DC Office: 500 New Jersey Avenue, NW, Washington, DC 20001-2020 I 1-800-874-6500

Low Prices Draw Investors Back to Market

2009-11-12T03:58:00.000-08:00

Real estate investors are moving back into the market, according to a new survey from Move.com. According to the Move.com survey, 12.1 percent of home buyers today plan to buy a home as an investment property, compared to 5.6 percent in March 2009. The survey found that 15.8 percent of those interested in investment property were men and 8.1 percent were women and 52.6 percent of the investment buyers were between ages 35 to 49.

Of the 25.3 percent of buyers who are focusing on foreclosure properties, 42 percent regard the purchase they are considering an investment and don’t plan to live in the property themselves; 13.2 percent plan to rent out the property; 11.3 percent are going to fix up the property and resell it; and 17.4 percent plan to house a family member until the property can be sold profitably.

Of the 9.8 percent of buyers who say that they plan to purchase and live in a property in the next two years, 5.4 percent plan to purchase in the next 12 months; 48.3 percent are first-time buyers; 52.8 percent are women, and 44.1 percent are men.Buyers of investment and personal property say they are motivated by these factors:

Prices are as low as they will go, 23.6 percent
Foreclosure prices are a bargain, 18.7 percent
Great selection of homes for sale in their target community, 21.2 percent
Concerned interest rates will rise, 14.2 percent

Source: Move.com (11/11/2009)

Obama Signs Extended Tax Credit into Law

2009-11-07T04:27:00.000-08:00

Expected to contribute approximately $22 billion to the economy, Congress overwhelmingly passed a bipartisan measure this week extending the $8,000 home buyer tax credit to April 30, 2010.

The legislation, which is part of a larger bill that also extends unemployment benefits, was signed into law by President Obama today. More people are now eligible to take advantage of the law, which includes a $6,500 tax credit for buyers who are current home owners and have lived in their home for five of the past eight years.

Income limits for eligible home buyers were also expanded to $125,000 for single buyers and $225,000 for couples, up from $75,000 for individuals and $150,000 for couples. Qualifying home prices are capped at $800,000.

NAR's Government Affairs Division has compiled facts on the changes made to the current tax credit.

Sources: NAR and The Associated Press, Julie Hirschfeld Davis (11/06/2009)

Tax Credit may be extended prior to expiration

2009-11-05T03:22:00.000-08:00

Senate May Approve Tax Credit Wednesday. The U.S. House and Senate are close to an agreement to extend the home buyer tax credit due to expire at the end of this month.

The Senate is expected to vote Wednesday while the House could approve it later in the week – likely before Friday when the monthly report on the unemployment rate will be released. The measure that is slated to pass would cover homes under contract by April 30.

Also, anyone taking the credit from a home purchased in 2010 would be able to take the credit when they pay their 2009 taxes. First-time home buyers would be eligible for $8,000, but purchasers don’t have to be first-time buyers. Anyone who has owned a home for at least five years could get a $6,500 credit on a new residence.

Income limitations rise under the new plan with individuals earning up to $125,000 a year and couples earning up to $225,000 eligible. People who earn more would be eligible for smaller credits.

Source: The New York Times, Jackie Calmes (11/4/2009)

Home Buyer Tax Credit

2009-10-30T08:38:00.000-07:00

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.

Practitioners Say Luxury Market Is Up

2009-10-20T03:38:00.000-07:00

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)

Things Condo Buyers Should Consider

2009-10-19T18:33:00.000-07:00

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:

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)

Congress Debating the Tax Credit

2009-10-15T17:40:00.000-07:00

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)

Homeownership Still A Good Investment

2009-10-14T03:16:00.000-07:00

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)

Are you going to miss out?

2009-10-12T05:08:00.000-07:00

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???

A Historic Time to Buy

2009-10-07T04:01:00.000-07:00

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)

Will that extra bath payoff?

2009-10-05T10:08:00.000-07:00

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)

$8,000 tax credit is the stimulus for the housing market

2009-09-24T05:21:00.000-07:00

Analysis: Tax Credit Adds 357,000 Buyers

A study estimates that 357,000 buyers have been motivated so far by the $8,000 First-Time Homebuyer Tax Credit.The study by Campbell Surveys, a division of Campbell Communications, calculated the figure by comparing the number of first-time homebuyers before and after the tax credit was instituted. The percentage of first-time buyers rose from 32 percent in January and February to 43 percent for the rest of the year – except July when the rate fell to 42 percent. Campbell’s Research Director Thomas Popik pointed out that this survey mirrors the numbers calculated by the National Association of REALTORS® and those from Moody’s Economy.com.The data supports legislative efforts in both the U.S. House and Senate to extend the tax credit.

Source: HousingWire.com, Austin Kilgore (09/22/2009)

Good News for Interest Rates

2009-09-21T16:09:00.000-07:00

Fed Unlikely to Raise Rates The Federal Reserve is likely to keep interest rates near zero when it ends its two-day meeting on Wednesday, say economic researchers. It is also predicted that the Fed will not slowdown its lending and bailout programs.Peter Morici, professor of economics at the University of Maryland, says, "The Fed normally anticipates the recovery by raising rates, taking away the punch bowl just as the party gets interesting. But this is not a normal recovery. It's tepid and weak.

"Source: CNNMoney.com, David Goldman (09/21/2009)

Extending the Housing Tax Credit

2009-09-16T19:23:00.000-07:00

Daily Real Estate News September 16, 2009

Economists: Extend the Housing Tax Credit More than 40 percent of all home buyers in 2009 will qualify for the federal tax credit, costing the government about $15 billion, twice the original estimate, but most housing experts applaud the policy and favor expanding it.Now the decision is up to Congress.Mark Zandi, chief economist for Moody’s Economy.com, believes that the credit should be expanded to all homebuyers, even investors, through summer of 2010. “The risks of not doing something like this are too great,” he said. “I don’t think the coast is clear.”James Glassman of JPMorgan Chase also favors expanding the credit but continuing to limit it to first-time buyers.Industry members who are lobbying for the extension are optimistic and say they believe an extension will be approved in some form. “There will be a lot of water under the bridge, a lot of compromise, between now” and a final bill, said Richard A. Smith, chairman of the Business Roundtable’s Housing Working Group.

Source: The New York Times, David Streitfeld (09/15/2009)

7 Tips for First Time Home Buyers

2009-09-14T17:46:00.000-07:00

Daily Real Estate News September 14, 2009

7 Tips for First-Time Home Buyers

A year after the financial collapse of 2008, the housing market is very different than it was before the foreclosure crisis.Here are seven bits of wisdom from economists and financial planners for anyone contemplating a home purchase today:

Old-fashioned basics are more important than ever. The safest way to purchase a home is to put down 20 percent on a fixed-rate, 30-year (or less) mortgage.
Don’t become overconfident about income growth. Even though buyers in their 20s and 30s will likely see their incomes grow more quickly than previous generations, it is important to act sensibly when borrowing.
Anyone contemplating adding children to the family should calculate whether they could live on one income because having both halves of a couple work may turn out to be impractical.
Include a maintenance budget. Even new homes need upkeep and repairs.
Buyers who can't afford their dream home now should opt for a starter home where they can save money each month for what they really want.
Consider a property that can be expanded and improved down the road when money is available.
No two buyers are the same, but they should all feel confident with the loan they enter into, no matter the size of the mortgage.

Source: The New York Times, Ron Lieber (09/12/2009)

Is turning that languishing property into a rental the right move?

2009-09-05T18:46:00.000-07:00

More Sellers Turn to Rentals More people are becoming landlords in an economy where selling a home can be challenging.The nation’s second-largest home insurer, Allstate Corp., says the number of homeowners converting their homeowners insurance to landlord policies rose 27 percent in the first quarter of 2009.Jim Bass of Jim Bass Real Estate Group in Frederick, Md., says he has begun offering property-management services for absent owners, many of whom are convinced it will be easier to sell in a couple of years.Holding on probably isn’t the best answer, says economist Edward Leamer, director of the UCLA Anderson Forecast. Leamer suggests negotiating a short sale instead. “Better to take your losses and move on.”Another factor to consider is whether renting will reduce or eliminate the value of the capital-gains tax exclusion. Federal tax law requires living in the home at least two of the previous five years to qualify for the full capital-gains tax exclusion when the house is sold. Of course, if there is no profit to be had, then this isn’t a problem.

Source: The Wall Street Journal, M.P. McQueen (09/02/2009)

Tips for Seller Financing

2009-09-02T04:08:00.000-07:00

5 Steps to Financing a Sale

Selling a home and helping the buyer finance may be a good option to getting a house sold, experts say. Yet it is imperative that the seller thoroughly investigate the buyer’s finances before agreeing to the deal.

Here are some important initial steps to take:

Investigate the buyer by asking him to fill out a Uniform Residential Loan Application.

Get bankruptcy details by checking out the case through Public Assess to Court Electronic Records (PACER), a service of the U.S. Judiciary.

Pull the buyer’s credit report and eviction and criminal history via http://www.american-apartment-owners-association.org/tenant-screening/.

Insist on 20 percent down or offer a contract for deed, which only confers full ownership rights after the home is paid off.

Consider offering a lease-option with part of the payment going toward the purchase price, which gives the buyer time to repair his credit before seeking conventional financing.

Source: The Wall Street Journal, June Fletcher (08/28/2009)

Internal Revenue Service plans Audits

2009-09-02T04:03:00.000-07:00

Audits Planned for High Mortgage Deductions

The Internal Revenue Service plans to step up its reviews of taxpayers who take the mortgage interest deduction and target some for audit.

The Treasury inspector general for tax administration released a memo Monday announcing plans for the review, pointing out that there are thousands of homeowners who paid more than $20,000 in mortgage interest in 2005 who either failed to file a tax return or reported income that was less than would have been required to pay their mortgage and other basic living expenses.

The move is not without its critics.

"We shouldn't presume that these struggling families are tax cheats just because they continue to make their mortgage payments despite losing their income," says Rep. Charles Boustany (R–La.), the top minority member of the House Oversight Subcommittee.

Source: The Wall Street Journal, Martin Vaughan (09/01/2009)

REALTOR® Designations

2009-08-29T05:43:00.000-07:00

Just what do all those initials mean and why should I care?

Below is a list of designations and certifications recognized by the National Association of Realtors:

ABR - Accredited Buyer Representative
CRS® - Certified Residential Specialist®
green - the NAR sustainable property designation
GRI - Graduate REALTOR® Institue
RSPS - Resort & Second-Home Property Specialist Certification
SRES® - Seniors Real Estate Specialist
CRE - Counselor of Real Estate
CIPS - Certified International Property Specialist

When evaluating your Real Estate needs and who may best serve those needs the above designations can assist you in choosing your REALTOR®. Individual REALTORS® who have earned a designation have chosen to further their education in specialty areas to better serve their buyers and sellers thus giving credibility to the services they provide.

For further information on the designations and certificates go to http://www.realtor.org/education

More Good News

2009-08-27T10:33:00.000-07:00

Daily Real Estate News | August 27, 2009 |
Dallas Fed Chief Says Worst is Over
The recession is over and the economy is no longer in freefall, says Richard W. Fisher, president and chief executive of the Federal Reserve Bank of Dallas.

Fisher says the worst is certainly over for the residential housing market. "The way the math works, I call it the Johnny Mercer effect," he says, referring to the singer- songwriter who wrote the lyric: “Accentuate the positive, eliminate the negative. …"

“When you start to eliminate the negative, you get a little positive momentum."

Meanwhile, Richmond Federal Reserve President Jeffrey Lacker offered similar sentiments, saying that the housing market had begun to improve five months ago and was no longer a drag on economic growth.

Source: The Dallas Morning News, Brendan Case (08/26/2009); Danville Register & Bee (08/26/2009)

$8,000 First Time Home Buyer Tax Credit

2009-08-22T18:30:00.000-07:00

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.

Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Latest news: NAR Research First-Time Home Buyer Tax Credit Webinar: September 3, 2009

Who Qualifies?
First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?
The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?
The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer's income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

© Copyright NATIONAL ASSOCIATION of REALTORS® | Headquarters: 430 North Michigan Avenue, Chicago, IL 60611

DC Office: 500 New Jersey Avenue, NW, Washington, DC 20001-2020 I 1-800-874-6500

What is a Short Sale?

2009-08-11T02:49:00.000-07:00

Something I am asked almost on a daily basis is "what is a short sale?" What it definitely is not is a "quick sale". Based on experience, many short sales take minimum 90 days if not 6 months to a year to close - if it ever does.

In basic terms, a short sell is when a lender allows an owner to sell a property for less than is owed to the lender. The discounted loan is then "written off" by the lender and the borrower is issued a 1099 from the lender for the discounted amount.

The theory of a short sale is that the seller will not have as big a hit on their credit report if a loan is discounted versus allowing the property to go into foreclosure. For the lender there is a cost savings associated with a short sale versus a foreclosure.

There are numerous problems with the entire short sale process. First, the lenders have not standardized a short sale process thus every lender has different rules. This is part of the reason the process takes as long as it does. The documentation a lender may require is not always the same thus the REALTOR® must endure a pain staking learning curve with each lender in order to finalize a complete package for submittal.

Second, lenders order Broker Price Opinions (BPO) instead of Appraisals to determine the value of a property. Broker Price Opinions are generated by Brokers while Appraisals are generated by Appraisers. Some REALTORS® are adept at creating a BPO but there are many who are not and the process is unregulated. Some BPO's submitted to lenders are just inaccurate. I have also had REALTORS® tell me that the lender "made them" change the value on the BPO after it was submitted.

The third issue is negotiating with the lender before the property ends up in foreclosure. Foreclosures are processed on the first Tuesday of every month. Thus if a property is in the final stages of foreclosure then it is possible an offer can be sitting on a short sale negotiator's desk but the property is now in the hands of the foreclosure department.

This very scenario has happened more than once. In one particular incident an offer was sitting on the short sale negotiator's desk the Monday before the date of the foreclosure. The negotiator could not find the attorney to stop the foreclosure. The property was foreclosed upon and then ended up selling for less than the short sale offer.

Short sales may sound like a deal to a buyer but the truth is that at times the buyer ends up paying more for a property than it is truly worth or they end up spending time and money on a property that they never end up owning because of the inadequacies of the short sale process.

The key for a buyer is to work with a REALTOR® who knows the local market. A good REALTOR® can tell you if a property is a good deal or not. There are many motivated sellers in this market who may be willing to sell for much less than the asking price - or a short sale asking price. You just need to ask.

Sellers, always ask the REALTOR® how many short sales they have completed successfully before hiring them. This one question may save you a lot of time and headache later on down the road.

3 Real Estate Tax Breaks

2009-07-27T19:48:00.000-07:00

3 Tax Breaks to Take in 2009

The passage of the Emergency Economic Stabilization Act of 2008 (H.R. 1424) last fall extended several tax benefits for commercial properties.
April 2009
1. The 15-year straight-line depreciation cost recovery period for leasehold improvements placed in service after Dec. 31, 2008, has been extended through 2009.

2. Deductions for energy-efficient upgrades in commercial buildings (not apartments) have been extended through 2013. Deductions are up to $1.80 per square foot for buildings achieving a 50 percent use reduction.

3. The cost of environmental remediation can still be deducted rather than capitalized for property placed in service after Dec. 31, 2007; this is extended through 2009.

LyondellBassell Bike Around the Bay

2009-07-26T13:12:00.000-07:00

LyondellBasell Bike Around the Bay 2009
will be held
October 10th and 11th.

LyondellBasell Bike Around the Bay is a fun, two-day, 150 mile bicycle ride around Galveston Bay
showcasing the natural beauty of the bay and benefiting the Galveston Bay Foundation.

Over 250 volunteers volunteered at LyondellBasell Bike Around the Bay 2007.
After Hurricane Ike interrupted the ride in 2008, over 350 volunteers rallied and helped create “Clean Up Around the Bay 2008,”
which benefitted Galveston Island State Park, Virginia Point Peninsula Preserve, and the Anahuac National Wildlife Refuge.

NOW WE NEED YOUR HELP AGAIN!

Currently, we need of groups of volunteers that are interested in coordinating a breakpoint.
Groups of 10-20 volunteers will help set-up, manage, and take-down rest areas where riders stop for drinks, snacks, bike support, etc.

Volunteers are needed from 7:00am-5:00pm with most shifts running 3-6 hours.

ALL VOLUNTEERS WILL RECEIVE A FREE LyondellBasell Bike Around the Bay 2009 T-SHIRT!

If you would like to participate, please send an e-mail to jmintzer@galvbay.org or call 281-332-3381 ext. 207 by August 21 and we’ll send you a registration packet.

Thank you! We hope you can make it!

--
Julie MintzerDirector of Community ProgramsGalveston Bay Foundation17330 Highway 3 Webster, TX 77598Office: (281) 332-3381 x 207Fax: (281) 332-3153www.galvbay.org

Galveston Home Sales Data

2009-07-25T18:20:00.000-07:00

The chart above is taken from the Real Estate Center at Texas A&M University. The gray bars show the 2009 sales as compared to 2008 (blue) and 2007 (yellow). While we are not currently breaking any records it is obvious residential sales have increased tremendously in June as compared to the first 5 months of the year. Indications are July will fall short of June but there are still 6 days to go!

Galveston Real Estate Market shows improvement

2009-07-12T05:51:00.000-07:00

The Galveston Real Estate market has shown improvement since April 2009. The chart below depicts the median price has shown a dramatic increase over the last 3 months.

2009 1st Quarter Real Estate Sales Stats on Galveston Island

2009-04-08T15:48:00.000-07:00

Island Wide 1st quarter single family sales are down 64% as compared to the same period in 2008. The number of units sold fell 9% while the average sales price has fallen from $296,392 to $116,612. A majority of the reduction is reflective of "in town" Ike damaged homes selling for as low as $9/sq ft.

An analysis of Galveston "In Town" sales shows a rise in the number of homes sold by 29 units. The averages sales price has fallen from 161,901 to 96,102. A majority of the sales are flooded homes selling "As Is".

Galveston West End homes sales are down by 39 units (64%). The volume is down $22,509,000 (84%). The average sales price is down 54% from 441,906 to 202,150.

What does all this mean? There is not a better time to buy on Galveston Island.

Jumbo Loans

2009-04-07T19:05:00.001-07:00

Jumbo Loans Getting Easier to Find.

For nearly a year, it has been almost impossible for buyers of homes selling for more than $417,00 in most parts of the country and up to $729,750 in pricier areas to find jumbo mortgages to pay for them.Now that appears to be changing. Bank of America recently began offering a 30-year fixed rate jumbo at less than 6 percent. "We decided it was time to really go after that market," says Vijay Lala, a product management executive for the bank.Other banks, including Wells Fargo, J.P. Morgan Chase, GMAC, ING Direct and Citibank are following suit, said Guy Cecala, publisher of Inside Mortgage Finance.Borrowers for jumbos should be prepared for a complex process and should shop aggressively for the best rate, Cecala says.Source: The Wall Street Journal, Amy Hoak (04/04/2009)

Custom Canal Home

2009-03-22T14:49:00.000-07:00

www.13507Moyenne.com

4 Bedroom/ 3 full & 2 half Bath / 4,629 sq. ft.

Custom canal home built by prestigous Island builder Doug Leboeuf. Canal cul-de-sac location offers Southern views down canal & Bay Views to the North. Oak wood finishes & flooring. Travertine flooring in wet areas. Professional grade appliances. Wet Bar w/wine cooler down. Dry Bar w/frig up. 2 Master Suites. Phone w/paging system. Elevator. Central Dehumidifier. Screened Patio. Storm Shutters. Enclosed entry rear of home. Custom cabinets/closets/storage rooms. Ask for list of amenities.

www.kellykelley.com

300 new trees coming to Galveston

2009-03-17T17:33:00.000-07:00

FOR IMMEDIATE RELEASE
Turning Over a New Leaf: Galveston’s Push
to Rebuild, Recover, and … Replant!
Galveston, Texas
March 16, 2009
Ike certainly dealt the Island a blow, but with spring in the air the City of Galveston is
taking steps to replace many of the trees and plants that were damaged by the hurricane’s
salty tidal surge. On Saturday, March 28th, volunteers will plant nearly 300 trees
throughout the Island. Working closely with the Texas Forestry Service, Texas
Department of Transportation, and the National Arbor Day Foundation, the City has
organized this reforestation effort to replant trees in the esplanades along Broadway and
25th Street as well as within in several city parks.
Hurricane Ike’s fury uprooted 32 of the historic live oaks that line Galveston’s main
streets. Since last September, City officials have worked closely with the Texas Forest
Service and Texas A&M University to save the remaining trees along the grand
esplanades. Nearly 100 years old, these oaks were planted after the 1900 Storm as an
integral part of the Island’s original reforestation. They are contributing features to
Galveston’s historic landscape.
In addition, the National Arbor Day Foundation has donated 5,000 seedlings for residents
to plant on their properties! The main seedling distribution point will be Ball High
School, 4115 Avenue O. City officials will be handing out seedlings in conjunction with
the Galveston Community Recovery Committee’s last public open house meeting. The
seedlings will be given away on a first-come-first-serve basis.
The City wishes to thank the many sponsors who made this event possible: Texas
Forestry Service; Texas Department of Transportation; City of Galveston; Texas A&M
University at Galveston; Clean Galveston; Keep Houston Beautiful; Houston Galveston
Area Council (H-GAC); National Arbor Day Foundation (NADF); Houston Area Urban
Forestry Council (HAUFC); International Society of Arboriculture - Texas Chapter (ISAT);
Apache Oil; Rodeo Houston; Boyer; and Christison Landscape.
###
Press Release
For information:
Alicia Cahill
Public Information Officer
(409) 797-3546
cahillali@cityofgalveston.org
This release is also located on the City of
Galveston’s website under the News heading.
Please visit www.cityofgalveston.org

Galveston City Council Meetings can be found on streaming video

2009-03-01T04:07:00.000-08:00

Are you like me and would love to watch the city council meetings but do not subscribe to Comcast nor have time to attend the 6 to 8 hour meeting? I found out just this a.m. that you can watch it at http://www.guidrynews.com/ via streaming video. The link is right on the front page! The city council in their wisdom is not advertising the fact this has been available since December 18. The hours I could have saved had I only known. Read the article below taken directly from http://www.guidrynews.com/. Thank you Jim Guidry!

Galveston County
Remarks to Galveston City Council
by Jim GuidryThursday, February 26, 2009
These remarks were prepared for delivery to Galveston City Council:
Mayor Thomas and Members of City Council.
I am Jim Guidry, co-owner of Guidry News Service with my wife Lynda. We are currently headquartered in Galveston City Council District 3 at 1818 Church.

GuidryNews.com has been posting Streaming Video recordings of Galveston City Council meetings, which are accessible on any computer connected to the Internet, since December 18, at no cost to the City of Galveston.

We decided to provide this service because of the severe budget problems caused to the city by Hurricane Ike. You had budgeted for an elaborate system of live and archived streaming video of the city council meetings, but were forced to abandon that project this year, because of Ike. I hope that the city council will choose to provide the service in the FY 2010 Budget.

Lynda and I believe that it is important that the video be provided online so that Galveston residents who have been forced to live off the island until their properties are restored can follow your deliberations.

Also, residents who remain on the island have had budget problems themselves because of Hurricane Ike and many no longer subscribe to Comcast; and thus, cannot follow the city council meetings from their homes.

While many residents have expressed appreciation for this service, that has not been the case here at City Hall.

Here is a little background on this project.

Our first offer was to upload the video to GuidryNews.com at no cost to the City, if the City would provide an appropriate video file.

The City initially declined this offer because of the expense of converting the DVD recordings by Darrell John’s DLJ Productions. My webmaster said that he had software to accomplish this and we decided to move forward at our own cost.

Then we had a problem with timing. Darrell John said that he normally provides the DVDs to the City several days after the meeting, but said that he would accommodate us with speedier delivery if the city manager approved. We agreed to pay for "rush" delivery, which DLJ has been providing. It has been costing us from $75 to $125 per meeting, depending on the length of the meeting.

The DVD's of tonight's meeting will be converted to streaming video on Friday and we will have it posted Friday evening.

My reason for appearing before the city council this evening is two-fold.

I want to announce to the public watching on Channel 16 that this service is available at GuidryNews.com and they can tell their friends and neighbors who are living off the island or who do not have cable.

The second reason is to complain that the City of Galveston has refused to include an announcement of this service in the scroll on Channel 16 and also has refused to put a front page link to our free service on the City's website.

Alicia Cahill, the City's public information officer, first said that the agreement with Comcast would not permit such an announcement on Channel 16. Later she revised that to say it would violate city-adopted rules for use of the channel.

"The rules clearly state that advertising is prohibited," she said.

Well, this is not advertising. It is advising residents of Galveston about a service that is available.

The City also has refused to put a link to the Streaming Video on the front page of the City's website, presumably for the same reason.

Using that logic, the City could not advise evacuating residents to monitor KTRH Radio, which is now the city's official radio station, for emergency information during hurricanes.

This is one of those things that if it were not so serious, it would be silly.

Please review the current policy and add an announcement about the GuidryNews.com streaming video of city council meetings to the Channel 16 scroll and to the front page of the City's Website.
Thank you for your attention.
Listen to the actual presentation: RealPlayer MP3

Post Ike Real Estate Sales

2009-02-11T04:38:00.000-08:00

Since September 12th there have been 17 homes sell on the West End. 6 of these homes were in contract prior to Ike. There are currently 9 homes pending and there are an additional 212 homes listed for sale.

The homes have ranged in sales price from $40,000 to $910,000. The price per sq ft has been as low as $65 for a dry home in Sea Isle to as high as $297 for a beachfront home in Indian Beach.

Contact me if you would like specifics for your neighborhood.

22007 Zachary

2009-02-08T09:14:00.000-08:00