Mortgage rates declined last week, triggering a dramatic jump in mortgage applications.
The Mortgage Bankers Association reported that its weekly index of mortgage application volume rose 17 percent on a seasonally adjusted basis compared to the previous week.
On an unadjusted basis, the index increased 15.8 percent and was up a whopping 64.5 percent compared to the same week a year ago.
Much of the increase was in refinances, with the refinance index increasing 22.5 percent, the biggest jump since March.
The purchase index rose 9.5 percent, which was the largest gain since early April.Mortgage rates were down across the board:
30-year fixed-rate mortgages decreased to 5.02 percent from 5.15 percent.
15-year fixed-rate mortgages decreased to 4.45 percent from 4.57 percent.
1-year ARMs decreased to 6.69 percent from 6.71 percent.
www.BestRateToday.info
Source: Mortgage Bankers Association (09/09/2009)
Friday, September 11, 2009
10 Housing Markets Likely to Rebound Soon
Real estate forecasting service Local Market Monitor, which predicts housing market trends for investors and banks, forecasts that housing prices will decline an average of 5 percent through 2010.
This prediction includes double-digit decreases in Phoenix, Miami, and Las Vegas.
But then the worst could be over, says CEO Ingo Winzer. As the recession eases, “We’ll see good price increases in many markets,” he reports.
In the following markets, home values are expected to remain level this year but increase in value next year:
Baton Rouge, La.
Buffalo-Niagara Falls, N.Y.
Dallas-Plano-Irving, Texas
Fort Worth-Arlington, Texas
Houston-Sugar Land-Baytown, Texas
Little Rock-North Little Rock-Conway, Ark.
Omaha-Council Bluffs, Neb.-Iowa
Pittsburgh, Pa.
San Antonio, Texas
Syracuse, N.Y.
Here are the 10 largest markets where prices are expected to continue to decline through 2010:
Fresno, Calif.
Las Vegas-Paradise, Nev.
Miami-Miami Beach-Kendall, Fla.
Orlando-Kissimmee, Fla.
Phoenix-Mesa-Scottsdale, Ariz.
Portland-Vancouver-Beaverton, Ore.-Wash.
San Jose-Sunnyvale-Santa Clara, Calif.
Stockton, Calif.
Tacoma, Wash.
Tucson, Ariz.
For Indianapolis Area homes for sale visit: www.IndyRealEstate.info
Source: Local Market Monitor (09/09/2009)
This prediction includes double-digit decreases in Phoenix, Miami, and Las Vegas.
But then the worst could be over, says CEO Ingo Winzer. As the recession eases, “We’ll see good price increases in many markets,” he reports.
In the following markets, home values are expected to remain level this year but increase in value next year:
Baton Rouge, La.
Buffalo-Niagara Falls, N.Y.
Dallas-Plano-Irving, Texas
Fort Worth-Arlington, Texas
Houston-Sugar Land-Baytown, Texas
Little Rock-North Little Rock-Conway, Ark.
Omaha-Council Bluffs, Neb.-Iowa
Pittsburgh, Pa.
San Antonio, Texas
Syracuse, N.Y.
Here are the 10 largest markets where prices are expected to continue to decline through 2010:
Fresno, Calif.
Las Vegas-Paradise, Nev.
Miami-Miami Beach-Kendall, Fla.
Orlando-Kissimmee, Fla.
Phoenix-Mesa-Scottsdale, Ariz.
Portland-Vancouver-Beaverton, Ore.-Wash.
San Jose-Sunnyvale-Santa Clara, Calif.
Stockton, Calif.
Tacoma, Wash.
Tucson, Ariz.
For Indianapolis Area homes for sale visit: www.IndyRealEstate.info
Source: Local Market Monitor (09/09/2009)
Monday, July 27, 2009
June new home sales rise 11 percent
By ALAN ZIBEL, AP Real Estate Writer Alan Zibel, Ap Real Estate Writer
WASHINGTON – New home sales in June posted the fastest increase in more than eight years as buyers took advantage of bargain prices, low interest rates and a federal tax credit for first-time homeowners.
While home prices are still falling, the figures released Monday were another sign the housing market is finally bouncing back. Earlier this month, the government reported that new home construction rose to the highest level since last fall.
And data out last week showed home resales rose almost 4 percent in June, the third straight monthly increase.
"The worst of the housing recession ... is now behind us," said David Resler, chief economist at Nomura Securities. "We're turning the corner toward increased activity in housing."
New home sales rose 11 percent in June to a seasonally adjusted annual rate of 384,000, from an upwardly revised May rate of 346,000, the Commerce Department reported Monday.
Shares of big homebuilders soared on the news, with Beazer Homes USA up by more than 13 percent and Hovnanian Enterprises rising 8 percent in afternoon trading. But with home prices still falling, these companies won't be making much money anytime soon.
The median sales price of $206,200 was down 12 percent from $234,300 a year earlier and off nearly 6 percent from $219,000 in May.
In addition to lower prices, buyers are rushing to tax advantage of a federal tax credit that covers 10 percent of the home price or up to $8,000 for first-time buyers. Home sales need to be completed by the end of November for buyers to take advantage.
"The window of opportunity is closing," said Bernard Markstein, senior economist for the National Association of Home Builders.
June's results were the strongest sales pace since November 2008 and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 360,000 units. The last time sales rose so dramatically was in December 2000.
There were 281,000 new homes for sale at the end of June, down more than 4 percent from May. At the current sales pace, that represents 8.8 months of supply — the lowest level since October 2007. If that number falls to just over 6 months, analysts say, builders will feel more comfortable ramping up construction.
Fallout from the housing crisis has played a central role in the U.S. recession, now the longest since World War II. Foreclosures have spiked, homebuilders have slashed construction, and financial companies have lost billions.
But it will still be a while before homebuilders turn into an engine for the economic recovery. Construction levels are still weak because builders still have too many unsold homes sitting vacant.
FREE New Home Buying Guide - Click Here!
WASHINGTON – New home sales in June posted the fastest increase in more than eight years as buyers took advantage of bargain prices, low interest rates and a federal tax credit for first-time homeowners.
While home prices are still falling, the figures released Monday were another sign the housing market is finally bouncing back. Earlier this month, the government reported that new home construction rose to the highest level since last fall.
And data out last week showed home resales rose almost 4 percent in June, the third straight monthly increase.
"The worst of the housing recession ... is now behind us," said David Resler, chief economist at Nomura Securities. "We're turning the corner toward increased activity in housing."
New home sales rose 11 percent in June to a seasonally adjusted annual rate of 384,000, from an upwardly revised May rate of 346,000, the Commerce Department reported Monday.
Shares of big homebuilders soared on the news, with Beazer Homes USA up by more than 13 percent and Hovnanian Enterprises rising 8 percent in afternoon trading. But with home prices still falling, these companies won't be making much money anytime soon.
The median sales price of $206,200 was down 12 percent from $234,300 a year earlier and off nearly 6 percent from $219,000 in May.
In addition to lower prices, buyers are rushing to tax advantage of a federal tax credit that covers 10 percent of the home price or up to $8,000 for first-time buyers. Home sales need to be completed by the end of November for buyers to take advantage.
"The window of opportunity is closing," said Bernard Markstein, senior economist for the National Association of Home Builders.
June's results were the strongest sales pace since November 2008 and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 360,000 units. The last time sales rose so dramatically was in December 2000.
There were 281,000 new homes for sale at the end of June, down more than 4 percent from May. At the current sales pace, that represents 8.8 months of supply — the lowest level since October 2007. If that number falls to just over 6 months, analysts say, builders will feel more comfortable ramping up construction.
Fallout from the housing crisis has played a central role in the U.S. recession, now the longest since World War II. Foreclosures have spiked, homebuilders have slashed construction, and financial companies have lost billions.
But it will still be a while before homebuilders turn into an engine for the economic recovery. Construction levels are still weak because builders still have too many unsold homes sitting vacant.
FREE New Home Buying Guide - Click Here!
Friday, July 24, 2009
Housing Experts: Now Is a Perfect Time to Buy
Don’t forget to remind potential buyers of something that is obvious to real estate professionals:
Now is the time to buy, but that opportunity may be slipping away.
For people who have a job and money, a dream house is within reach, writes Marc Roth, founder of Home Warranty of America and a columnist for BusinessWeek.
He points out that mortgage rates remain low, prices are still at historic lows, and the government is offering incentives for first-time homebuyers.
He also adds that the inventory of homes to buy is still large, but it is shrinking.
According to the NATIONAL ASSOCIATION OF REALTORS®, the housing inventory peaked in November 2008 at an 11-month supply.
At the end of May 2009, it had fallen to a 9.6-month supply.
Roth says anyone who dallies will miss a good opportunity to buy a first home at a terrific price or go shopping for a move-up property that is a great buy.
For A FREE Home Buying Guide: Click Here!
Source: BusinessWeek.com, Marc Roth (11/17/2009)
Now is the time to buy, but that opportunity may be slipping away.
For people who have a job and money, a dream house is within reach, writes Marc Roth, founder of Home Warranty of America and a columnist for BusinessWeek.
He points out that mortgage rates remain low, prices are still at historic lows, and the government is offering incentives for first-time homebuyers.
He also adds that the inventory of homes to buy is still large, but it is shrinking.
According to the NATIONAL ASSOCIATION OF REALTORS®, the housing inventory peaked in November 2008 at an 11-month supply.
At the end of May 2009, it had fallen to a 9.6-month supply.
Roth says anyone who dallies will miss a good opportunity to buy a first home at a terrific price or go shopping for a move-up property that is a great buy.
For A FREE Home Buying Guide: Click Here!
Source: BusinessWeek.com, Marc Roth (11/17/2009)
Wednesday, July 22, 2009
Staging on a Budget
What's your best, most affordable staging idea? Dozens of real estate pros offer their best tips.
By Melissa Dittmann Tracey
LIVING ROOMS
Create a Focal Point
"Pick out the most visible corner and put a large plant—I've found that silk trees work best. Set up a spotlight behind it so it lights up the leaves and throws an interesting shadow on another wall. It really makes a difference in a person's perception of the space, especially if it's a large room without too much natural lighting."
—Izabela Stone, Keller Williams Realty, Apollo Beach, Fla.
Set Up a Chat Room
"Be sure that the living room furniture is positioned for conversation as well as entertainment. Potential buyers should be able to easily envision sitting in a space where they can easily talk without having to move a chair or turn completely around."
—Rana Lindhorst and Troy Schmidt, Prudential One Realty Centre, Edwardsville, Ill.
Get Rid of Carpet Dents
"Furniture often leaves indentations in the carpet. When a piece of furniture is moved, I tell my clients to put medium-sized ice cubes in the imprints. As the ice melts, it causes the compacted carpet to expand and erase those imprints."
—Shawn Moss, Century 21 C.R. O'Neil & Co.
Accent Special Features
"Place an accent by a home's feature, such as an attractive plant near a fireplace to draw the eye to it or a tall palm or two in place that directs the buyer toward another part of the home or suggests a separation of areas. This also ensures that someone often enters the home to care for it."
—Susan Cramer, HomeSmart Real Estate, Temecula, Calif.
Invoke the Outdoors
"Use a little nature in each room. I create a flow throughout the home using cuttings, flowers, dried flowers, whatever will work. Simple things, such as twigs to spell out a word or a small cutting tied with raffia around a pillow on a bed, draw the eye into the room but don't overpower it. I have even used a branch cutting to make a 'tree' in an empty corner. I try to use one piece of nature in each room to create an ongoing theme throughout the home. It works with any type of decor, whether it's modern or traditional. One important note: Always check for insects!"
—Lauren Scurlock, North Star Real Estate Inc., Virginia Beach, Va.
Indianapolis, Indiana
contact Tony Wilson of Carpenter Realtors at:
317-354-7410 or tonywilson@callcarpenter.com
By Melissa Dittmann Tracey
LIVING ROOMS
Create a Focal Point
"Pick out the most visible corner and put a large plant—I've found that silk trees work best. Set up a spotlight behind it so it lights up the leaves and throws an interesting shadow on another wall. It really makes a difference in a person's perception of the space, especially if it's a large room without too much natural lighting."
—Izabela Stone, Keller Williams Realty, Apollo Beach, Fla.
Set Up a Chat Room
"Be sure that the living room furniture is positioned for conversation as well as entertainment. Potential buyers should be able to easily envision sitting in a space where they can easily talk without having to move a chair or turn completely around."
—Rana Lindhorst and Troy Schmidt, Prudential One Realty Centre, Edwardsville, Ill.
Get Rid of Carpet Dents
"Furniture often leaves indentations in the carpet. When a piece of furniture is moved, I tell my clients to put medium-sized ice cubes in the imprints. As the ice melts, it causes the compacted carpet to expand and erase those imprints."
—Shawn Moss, Century 21 C.R. O'Neil & Co.
Accent Special Features
"Place an accent by a home's feature, such as an attractive plant near a fireplace to draw the eye to it or a tall palm or two in place that directs the buyer toward another part of the home or suggests a separation of areas. This also ensures that someone often enters the home to care for it."
—Susan Cramer, HomeSmart Real Estate, Temecula, Calif.
Invoke the Outdoors
"Use a little nature in each room. I create a flow throughout the home using cuttings, flowers, dried flowers, whatever will work. Simple things, such as twigs to spell out a word or a small cutting tied with raffia around a pillow on a bed, draw the eye into the room but don't overpower it. I have even used a branch cutting to make a 'tree' in an empty corner. I try to use one piece of nature in each room to create an ongoing theme throughout the home. It works with any type of decor, whether it's modern or traditional. One important note: Always check for insects!"
—Lauren Scurlock, North Star Real Estate Inc., Virginia Beach, Va.
Indianapolis, Indiana
contact Tony Wilson of Carpenter Realtors at:
317-354-7410 or tonywilson@callcarpenter.com
Fed Chair Says Foreclosures Could Still Rise
Fed Chair Ben Bernanke testified before the House Financial Services Committee on Tuesday, saying that inflation is likely to decline — not rise, as many have feared.
Therefore, the Fed intends to keep lending rates near zero.Bernanke said inflation should be “lower in 2009 than during 2008 as a whole,” in part "because of the sizable amount of slack in resource utilization.”
Bernanke also discussed foreclosures, which he said probably haven’t peaked because of the rising unemployment rate.
He downplayed the unwinding of the commercial real estate market.
“It is a sector we are paying a lot of attention to,” Bernanke said, noting that commercial mortgages are a small segment of the market. “I don’t think we need to have an enormous program to stimulate improvement.”
Source: The New York Times, Louis Uchitelle (07/21/2009)
Therefore, the Fed intends to keep lending rates near zero.Bernanke said inflation should be “lower in 2009 than during 2008 as a whole,” in part "because of the sizable amount of slack in resource utilization.”
Bernanke also discussed foreclosures, which he said probably haven’t peaked because of the rising unemployment rate.
He downplayed the unwinding of the commercial real estate market.
“It is a sector we are paying a lot of attention to,” Bernanke said, noting that commercial mortgages are a small segment of the market. “I don’t think we need to have an enormous program to stimulate improvement.”
Source: The New York Times, Louis Uchitelle (07/21/2009)
Saturday, July 18, 2009
Report: New-Home Construction Increasing
Despite high unemployment and general concerns of too much existing inventory, new-home construction appears to be rising.
According to Friday’s report from the U.S. Commerce Department, construction of new homes rose 3.6 percent in June compared to May.
Building permits climbed 8.7 percent, and single-family home starts jumped 14.4 percent to 470,000, after rising 5.9 percent in May.
In real numbers, ground was broken for an estimated 58,300 houses nationwide in June, and an estimated 58,400 building permits were issued.
Here’s a look at housing starts in different U.S. regions:
Midwest: up 33.3 percent
Northeast: up 28.6 percent
South: down 1.4 percent
West: down 14.8 percent
Source: The Wall Street Journal, Jeff Bater (06/17/2009)
Contact Tony Wilson of Carpenter Realtors for a FREE New Home Construction Buying Guide: tonywilson@callcarpenter.com or 317-354-7410
According to Friday’s report from the U.S. Commerce Department, construction of new homes rose 3.6 percent in June compared to May.
Building permits climbed 8.7 percent, and single-family home starts jumped 14.4 percent to 470,000, after rising 5.9 percent in May.
In real numbers, ground was broken for an estimated 58,300 houses nationwide in June, and an estimated 58,400 building permits were issued.
Here’s a look at housing starts in different U.S. regions:
Midwest: up 33.3 percent
Northeast: up 28.6 percent
South: down 1.4 percent
West: down 14.8 percent
Source: The Wall Street Journal, Jeff Bater (06/17/2009)
Contact Tony Wilson of Carpenter Realtors for a FREE New Home Construction Buying Guide: tonywilson@callcarpenter.com or 317-354-7410
Wednesday, July 8, 2009
Video Featuring Indianapolis
Thinking of Relocating to the Indianapolis Area?
Contact Tony Wilson of Carpenter Realtors to learn more about Indianapolis and the surrounding area: tonywilson@callcarpenter.com
Thursday, July 2, 2009
Treasury Makes Refinancing More Attractive
The Treasury Department on Wednesday expanded its foreclosure prevention plan, lifting the current 105 percent loan-to-value cap to refinance up to 125 percent of a home’s value.
Applications to refinance mortgages have fallen as rates have increased in the last couple of weeks, but this move may bring more borrowers to the table.
At the same time, Fannie Mae and Freddie Mac have agreed to reduce the processing fee for borrowers who select a 25-year mortgage.
Fannie said in a statement, "The reduction is intended to lure borrowers to select shorter terms and build positive equity in their homes sooner than with a typical 30-year mortgage.”
Source: Reuters News, Patrick Rucker (07/01/2009)
www.BestRateToday.info
Contact Us!
Applications to refinance mortgages have fallen as rates have increased in the last couple of weeks, but this move may bring more borrowers to the table.
At the same time, Fannie Mae and Freddie Mac have agreed to reduce the processing fee for borrowers who select a 25-year mortgage.
Fannie said in a statement, "The reduction is intended to lure borrowers to select shorter terms and build positive equity in their homes sooner than with a typical 30-year mortgage.”
Source: Reuters News, Patrick Rucker (07/01/2009)
www.BestRateToday.info
Contact Us!
Wednesday, July 1, 2009
HOT TOPICS - Buyer Incentives
$15,000 for Foreclosed Homes
The Indiana Housing and Community Development Authority (IHCDA) announced that Hoosiers may be eligible for up to $25,000 in zero-interest, non-amortizing loans for Hoosiers to purchase foreclosed homes.
Hoosiers who buy foreclosed homes to use as their primary residence can qualify for a $15,000 loan from IHCDA’s Market Stabilization Fund.
The Federal Home Loan Bank of Indianapolis has committed to supply matching grants of up to $10,000.
“When Hoosiers open the door to their new home, they open several windows of opportunity,” Lt. Governor Skillman said. “This is a unique use of federal dollars that will encourage homeownership while revitalizing communities.”
The money comes from HUD’s Neighborhood Stabilization Program (NSP), which allocated $84 million to IHCDA. The state will use $33 million of that allocation for the Market Stabilization Fund. Assistance from this fund will be made available to income-qualified individuals and families who choose to purchase foreclosed homes in areas of the state in greatest need of assistance.
Areas of greatest need are identified, with the assistance of the Indiana University Center for Urban Policy and the Environment, using a combination of HUD-provided data and proprietary data. Indiana is the only state using NSP money in a statewide program to help people buy foreclosed homes.
How the Market Stabilization Program (MSP) Works:
IHCDA will offer up to $15,000 (not to exceed 20% of purchase price) to assist home buyers with the acquisition and/or rehabilitation of a foreclosed residential property located within an area of greatest need.
These funds may be used in conjunction with the IHCDA First Home product, FHA, VA, USDA, or prime fixed rate product. No adjustable rate or subprime mortgage products will be allowed for the purchase of these homes.
Home buyers may use these funds for closing costs and down payment assistance related to the purchase of a foreclosed home or residential property that will be used as the primary residence.
To be eligible for rehab funds a residential structure must not meet local building code and therefore is unable to be purchased in its present condition.
Buyers may use both acquisition and rehabilitation assistance in the purchase of a home, but the combined assistance may not exceed $15,000.
These funds will be in the form of a zero-interest, non-amortizing, second mortgage loan. These funds do not have to be repaid as long as home buyers use the home as a principal residence for at least ten years. If the home buyer sells the home within the first five years, the subsidy is repayable to IHCDA on a shared net proceeds basis. If the home buyer refinances within the first five years, the entire subsidy is repayable to IHCDA.
After year 5 and through year 10, the home buyer will retain 20% in equity of the award amount per year.
This funding will be available to home buyers that are at or below 120% of area median income and who intend to occupy the home themselves.
To determine income qualification, compare household income and family size to the income guidelines listed below.
To use the current income limits for MSP as a second mortgage only: MSP Stand-Alone Limits.
To use the current income limits for MSP in conjunction with a Municipal Revenue Bond (MRB) or Mortgage Credit Certificate (MCC): MSP Income Limits with Bond or MCC.
Home buyers will be required to participate in 8 hours of pre-purchase education provided by an IHCDA certified counselor.
IHCDA will be coordinating with lenders/servicers, Fannie Mae, Freddie Mac and HUD to list foreclosed properties on a centralized Web site. Visit www.indianahousingnow.org and click on the Market Stabilization Program link to determine if a foreclosed property is in an eligible neighborhood. Lenders will be required to sell the properties listed on the site at a discount that meets or exceeds NSP guidelines.
MSP Brochure and Detailed Information:
The following link is a consumer friendly brochure on the MSP program: Consumer Brochure.
To view a PowerPoint with detailed MSP information click here: NSP PowerPoint.
If you would like more information on all of IHCDA’s programs, please visit their Web si
te at www.in.gov/ihcda.
Federal Home Loan Bank of Indianapolis's Program:
The Federal Home Loan Bank of Indianapolis’s (FHLBI) Neighborhood Stabilization Assistance (NSA) program is offering matching grants of up to $10,000. The main qualification for the NSA program is that the home buyer must have already secured IHCDA funds. Once IHCDA funding is secured, proceed by contacting an FHLBI member financial institution. Find a list of member institutions, program guidelines and other information by clicking here.
View a step-by-step guide from the Indiana Association of REALTORS® here.
$8000 First-Time Home Buyer Tax Credit
The home buyer tax credit is one of 10 key provisions of the American Recovery and Reinvestment Act signed by President Obama into law on Feb. 17, 2009.
The bill provides for an $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.
The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
Tax Credit Bridge-Loan Information
HUD Secretary Shaun Donovan recently announced a program that would allow borrowers to use the first-time homebuyer tax credit for a down payment or closing costs on an FHA insured mortgage to scores of REALTORS® at the 2009 NAR Mid-Year Conference.
Under the guidelines of the program, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent. However, according to senior HUD officials, loans cannot be used to cover the minimum 3.5 percent requirement. Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge-loan to significantly bring down the upfront costs of buying a home, but would still have to come up with the minimum 3.5 percent down-payment.
Secretary Donovan said “We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit.”
Read the detailed guidelines in HUD Mortgagee Letter 2009-15.
Although this program has been formally announced, details on how Indiana will implement the program are not yet available. The Indiana Association of REALTORS® is currently working with the Indiana Housing and Community Development Authority (IHCDA) on details for the state. Watch future editions of Fast Track for additional information as is becomes available. If you have further questions, contact MIBOR’s Government Affairs department at 317/956-1912.
The links below are provided by the National Association of REALTORS® (NAR):
Chart Highlighting the Major Modifications to the First-Time Homebuyer Tax Credit
NAR's Presentation: The 2009 First-Time Homebuyer Tax Credit
Download the IRS First-Time Homebuyer Tax Credit Form 5405
IRS Filing Guidance on First Time Homebuyer Tax Credit
Frequently Asked Questions
For more information please visit NAR’s Home Buyer Tax Credit Web page by clicking here.
For information about purchasing a home through these programs contact:
Tony Wilson
317-354-7410
tonywilson@callcarpenter.com
The Indiana Housing and Community Development Authority (IHCDA) announced that Hoosiers may be eligible for up to $25,000 in zero-interest, non-amortizing loans for Hoosiers to purchase foreclosed homes.
Hoosiers who buy foreclosed homes to use as their primary residence can qualify for a $15,000 loan from IHCDA’s Market Stabilization Fund.
The Federal Home Loan Bank of Indianapolis has committed to supply matching grants of up to $10,000.
“When Hoosiers open the door to their new home, they open several windows of opportunity,” Lt. Governor Skillman said. “This is a unique use of federal dollars that will encourage homeownership while revitalizing communities.”
The money comes from HUD’s Neighborhood Stabilization Program (NSP), which allocated $84 million to IHCDA. The state will use $33 million of that allocation for the Market Stabilization Fund. Assistance from this fund will be made available to income-qualified individuals and families who choose to purchase foreclosed homes in areas of the state in greatest need of assistance.
Areas of greatest need are identified, with the assistance of the Indiana University Center for Urban Policy and the Environment, using a combination of HUD-provided data and proprietary data. Indiana is the only state using NSP money in a statewide program to help people buy foreclosed homes.
How the Market Stabilization Program (MSP) Works:
IHCDA will offer up to $15,000 (not to exceed 20% of purchase price) to assist home buyers with the acquisition and/or rehabilitation of a foreclosed residential property located within an area of greatest need.
These funds may be used in conjunction with the IHCDA First Home product, FHA, VA, USDA, or prime fixed rate product. No adjustable rate or subprime mortgage products will be allowed for the purchase of these homes.
Home buyers may use these funds for closing costs and down payment assistance related to the purchase of a foreclosed home or residential property that will be used as the primary residence.
To be eligible for rehab funds a residential structure must not meet local building code and therefore is unable to be purchased in its present condition.
Buyers may use both acquisition and rehabilitation assistance in the purchase of a home, but the combined assistance may not exceed $15,000.
These funds will be in the form of a zero-interest, non-amortizing, second mortgage loan. These funds do not have to be repaid as long as home buyers use the home as a principal residence for at least ten years. If the home buyer sells the home within the first five years, the subsidy is repayable to IHCDA on a shared net proceeds basis. If the home buyer refinances within the first five years, the entire subsidy is repayable to IHCDA.
After year 5 and through year 10, the home buyer will retain 20% in equity of the award amount per year.
This funding will be available to home buyers that are at or below 120% of area median income and who intend to occupy the home themselves.
To determine income qualification, compare household income and family size to the income guidelines listed below.
To use the current income limits for MSP as a second mortgage only: MSP Stand-Alone Limits.
To use the current income limits for MSP in conjunction with a Municipal Revenue Bond (MRB) or Mortgage Credit Certificate (MCC): MSP Income Limits with Bond or MCC.
Home buyers will be required to participate in 8 hours of pre-purchase education provided by an IHCDA certified counselor.
IHCDA will be coordinating with lenders/servicers, Fannie Mae, Freddie Mac and HUD to list foreclosed properties on a centralized Web site. Visit www.indianahousingnow.org and click on the Market Stabilization Program link to determine if a foreclosed property is in an eligible neighborhood. Lenders will be required to sell the properties listed on the site at a discount that meets or exceeds NSP guidelines.
MSP Brochure and Detailed Information:
The following link is a consumer friendly brochure on the MSP program: Consumer Brochure.
To view a PowerPoint with detailed MSP information click here: NSP PowerPoint.
If you would like more information on all of IHCDA’s programs, please visit their Web si
te at www.in.gov/ihcda.
Federal Home Loan Bank of Indianapolis's Program:
The Federal Home Loan Bank of Indianapolis’s (FHLBI) Neighborhood Stabilization Assistance (NSA) program is offering matching grants of up to $10,000. The main qualification for the NSA program is that the home buyer must have already secured IHCDA funds. Once IHCDA funding is secured, proceed by contacting an FHLBI member financial institution. Find a list of member institutions, program guidelines and other information by clicking here.
View a step-by-step guide from the Indiana Association of REALTORS® here.
$8000 First-Time Home Buyer Tax Credit
The home buyer tax credit is one of 10 key provisions of the American Recovery and Reinvestment Act signed by President Obama into law on Feb. 17, 2009.
The bill provides for an $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.
The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
Tax Credit Bridge-Loan Information
HUD Secretary Shaun Donovan recently announced a program that would allow borrowers to use the first-time homebuyer tax credit for a down payment or closing costs on an FHA insured mortgage to scores of REALTORS® at the 2009 NAR Mid-Year Conference.
Under the guidelines of the program, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent. However, according to senior HUD officials, loans cannot be used to cover the minimum 3.5 percent requirement. Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge-loan to significantly bring down the upfront costs of buying a home, but would still have to come up with the minimum 3.5 percent down-payment.
Secretary Donovan said “We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit.”
Read the detailed guidelines in HUD Mortgagee Letter 2009-15.
Although this program has been formally announced, details on how Indiana will implement the program are not yet available. The Indiana Association of REALTORS® is currently working with the Indiana Housing and Community Development Authority (IHCDA) on details for the state. Watch future editions of Fast Track for additional information as is becomes available. If you have further questions, contact MIBOR’s Government Affairs department at 317/956-1912.
The links below are provided by the National Association of REALTORS® (NAR):
Chart Highlighting the Major Modifications to the First-Time Homebuyer Tax Credit
NAR's Presentation: The 2009 First-Time Homebuyer Tax Credit
Download the IRS First-Time Homebuyer Tax Credit Form 5405
IRS Filing Guidance on First Time Homebuyer Tax Credit
Frequently Asked Questions
For more information please visit NAR’s Home Buyer Tax Credit Web page by clicking here.
For information about purchasing a home through these programs contact:
Tony Wilson
317-354-7410
tonywilson@callcarpenter.com
Friday, June 26, 2009
Home Buyer Tax Credit Could Expand
A first-time home buyer tax credit of up to $8,000 has helped to move housing inventory during an otherwise sluggish real estate cycle.
Now both legislators and the business community are hoping to build on the incentive's success by expanding it.
A number of bills have been introduced in the House and the Senate that lobby for an expansion of the measure.
Among the proposed changes:
Setting a new cap of $15,000.
Extending the tax break into mid-2010.
Making the benefit available to all home buyers, not just first-timers.
Offering a separate tax credit to $3,000 for borrowers who refinance.
USA Today, Stephanie Armour (06/22/09)
© Copyright 2009 Information Inc.
Get HUD listings emailed to you the minute they go onto the market!
Contact Tony Wilson at: tonywilson@callcarpenter.com
Now both legislators and the business community are hoping to build on the incentive's success by expanding it.
A number of bills have been introduced in the House and the Senate that lobby for an expansion of the measure.
Among the proposed changes:
Setting a new cap of $15,000.
Extending the tax break into mid-2010.
Making the benefit available to all home buyers, not just first-timers.
Offering a separate tax credit to $3,000 for borrowers who refinance.
USA Today, Stephanie Armour (06/22/09)
© Copyright 2009 Information Inc.
Get HUD listings emailed to you the minute they go onto the market!
Contact Tony Wilson at: tonywilson@callcarpenter.com
Tuesday, June 16, 2009
VA Loan Still a Good Option in a Bad Economy
More servicemembers and veterans are using their Department of Veterans Affairs (VA) home loan guaranty benefit, as VA's loan program remains a strong option in today's housing market.
VA is experiencing a significant increase in home loan volume, with more than 162,000 home loan guaranties provided this year, an increase of more than 31 percent over the same period last year.
"VA attributes this increase to the favorable terms traditionally offered with VA loans and the elimination of many no-downpayment products in the conventional mortgage market," said Secretary of Veterans Affairs Dr. James B. Peake.
Visit: http://www.bestratetoday.info/ for a quick V.A. Loan Quote!
Friday, June 12, 2009
Congress Weighs Buyer Tax Credit Expansion
Legislation introduced in Congress Wednesday would expand the tax credit now limited to first-time homebuyers to any purchaser of a home and increase the maximum available to $15,000.
The tax credit passed earlier this year is limited to $8,000 and has income caps.
U.S. Sen. Johnny Isakson, a Georgia Republican, introduced the legislation, and Senate Banking Committee Chair Christopher Dodd, a Connecticut Democrat, quickly stepped up to co-sponsor.
The National Association of REALTORS® and the National Association of Home Builders have said they would like to see the tax credit improved.
Source: The Wall Street Journal, Jessica Holzer (06/10/2009)
The tax credit passed earlier this year is limited to $8,000 and has income caps.
U.S. Sen. Johnny Isakson, a Georgia Republican, introduced the legislation, and Senate Banking Committee Chair Christopher Dodd, a Connecticut Democrat, quickly stepped up to co-sponsor.
The National Association of REALTORS® and the National Association of Home Builders have said they would like to see the tax credit improved.
Source: The Wall Street Journal, Jessica Holzer (06/10/2009)
Thursday, June 11, 2009
Relocating?
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Today's hectic lifestyles often leave families with little time to spend together, let alone go out of town on an expensive vacation. Splash Island offers a place where residents and visitors can convene, play, and relax!
Splash Island truly is your Caribbean vacation close to home!
Splash Island truly is your Caribbean vacation close to home!
About Splash Island
Located on 3.1 acres, the tropical-themed Splash Island includes three waterslides, an interactive play area for all ages including kiddie slides, water jets, ropes and guns, a gentle winding river, lily pad crossing, two pulsating vortexes, and plenty of deck space and grassy areas for sun bathing and family fun. The park also includes a six lane competition pool with an attached diving well featuring two 1-meter springboards.
Plainfield Trails System: Click Here!
Want to find a place to call home like Plainfield, Indiana? I have partners all across the United States. I can help you with your relocation!
Call/Text Tony Wilson at 317.354.7410 or email at tonywilson@callcarpenter.com
Friday, June 5, 2009
The Two Latest Signs Housing Is Recovering
Here’s more evidence that the housing market is recovering.
Two major home builders, Toll Brothers Inc. and Hovnanian Enterprises Inc., say their losses were shrinking compared to last year because buyers are coming back to the market.
Other encouraging news came from HIS Global Insight, a research firm, which said home prices fell on average at an annual rate of 2.2 percent in the first quarter in 199 of 330 metropolitan areas. That compares with a 12.5 percent decline in the fourth quarter of 2008 in 312 metropolitan areas.
"While it's too early to see a bottom of this housing downturn," the report said, the latest data "may signal that the market is beginning to stabilize."
Source: The Wall Street Journal, James R. Hagerty and John Spence (06/04/2009)
Two major home builders, Toll Brothers Inc. and Hovnanian Enterprises Inc., say their losses were shrinking compared to last year because buyers are coming back to the market.
Other encouraging news came from HIS Global Insight, a research firm, which said home prices fell on average at an annual rate of 2.2 percent in the first quarter in 199 of 330 metropolitan areas. That compares with a 12.5 percent decline in the fourth quarter of 2008 in 312 metropolitan areas.
"While it's too early to see a bottom of this housing downturn," the report said, the latest data "may signal that the market is beginning to stabilize."
Source: The Wall Street Journal, James R. Hagerty and John Spence (06/04/2009)
Should Home Buyers Lock in Rates?
Should home buyers apply for loan lock-in rates that are at their highest level since February? Or should they bet that the federal government will find a way to lower rates?
Money magazine staffers say the wildcard is Federal Reserve Chair Ben Bernanke. The Fed has been buying up long-term Treasuries and mortgage-backed securities to keep rates low. But when rates started to climb in the last week, the Fed seemed to signal that it wasn’t too concerned.
But now that rates have climbed to a six-month high, some observers believe that the Fed will refocus its efforts and push them down.
“It’s one thing to have a Treasury yield backup when mortgage rates are still declining, but that is no longer the case. The yield on the 30-year fixed-rate is already up 20 basis points from the lows; 1-year ARMs have jumped 17 basis points. This is not what the Fed wants to see,” says David Rosenberg, a former Merrill Lynch economist now at Gluskin Sheff.
Source: CNNMoney.com, Carla Fried (05/29/2009)
Money magazine staffers say the wildcard is Federal Reserve Chair Ben Bernanke. The Fed has been buying up long-term Treasuries and mortgage-backed securities to keep rates low. But when rates started to climb in the last week, the Fed seemed to signal that it wasn’t too concerned.
But now that rates have climbed to a six-month high, some observers believe that the Fed will refocus its efforts and push them down.
“It’s one thing to have a Treasury yield backup when mortgage rates are still declining, but that is no longer the case. The yield on the 30-year fixed-rate is already up 20 basis points from the lows; 1-year ARMs have jumped 17 basis points. This is not what the Fed wants to see,” says David Rosenberg, a former Merrill Lynch economist now at Gluskin Sheff.
Source: CNNMoney.com, Carla Fried (05/29/2009)
Thursday, June 4, 2009
NAR: Existing-Home Sales Jump
Existing-home sales rose in April with strong buyer activity in lower price ranges, according to the NATIONAL ASSOCIATION OF REALTORS®.
Existing-home sales — including single-family, townhomes, condominiums and co-ops — increased 2.9 percent to a seasonally adjusted annual rate of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March. Yet, home sales were 3.5 percent below the 4.85 million-unit level in April 2008, according to NAR.
Lawrence Yun, NAR chief economist, says first-time buyers continue to influence the market but there also is a seasonal rise of repeat buyers.
“Most of the sales are taking place in lower price ranges and activity is beginning to pickup in the midprice ranges, but high-end home sales remain sluggish,” he says. “The Federal Reserve needs to help restore liquidity for the jumbo mortgage market by buying these loans under the TALF program.”
Buyers Once Again Emerge
An NAR practitioner survey in April showed first-time buyers declined to 40 percent of transactions, implying more repeat buyers are entering the traditional spring home-buying season. It also showed the number of buyers looking at homes has increased 14 percentage points from a year ago.
“This is consistent with our forecast for home sales in the latter part of the year to be 10 to 20 percent higher than the second half of 2008,” Yun says.
It's critical that distressed homes be quickly cleared from the market, Yun says.
“Fortunately, home buyers are being attracted to deeply discounted prices and are bidding up many foreclosed listings, particularly in California, Nevada, and Florida — this will set the stage for healthy market conditions going forward,” Yun says.
NAR President Charles McMillan says conditions are optimal for buyers with good jobs and long-term plans.
“We have record low mortgage interest rates, a wide selection of homes and affordable prices in most areas,” he says. “When you add the $8,000 first-time buyer tax credit, it’s hard to imagine a better time to make an investment in your future through homeownership.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.81 percent in April from 5.00 percent in March; the rate was 5.92 percent in April 2008; data collection began in 1971.
A Closer Look at the Numbers
National median existing-home price: for all housing types, was $170,200 in April, which is 15.4 percent below 2008. Distressed properties, which accounted for 45 percent of all sales in April, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.
Total housing inventory: at the end of April, rose 8.8 percent to 3.97 million existing homes available for sale, which represents a 10.2-month supply at the current sales pace, compared with a 9.6-month supply in March. “The gain in inventory is largely seasonal from sellers entering the spring market," Yun says. "Even with the rise, inventory over the past few months has remained consistently lower in comparison with a year earlier."
Single-family home sales: rose 2.5 percent to a seasonally adjusted annual rate of 4.18 million in April from a level of 4.08 million in March, but are 2.8 percent below the 4.30 million-unit pace in March 2008. The median existing single-family home price was $169,800 in April, which is 14.9 percent below a year ago.
Existing condominium and co-op sales: increased 6.4 percent to a seasonally adjusted annual rate of 500,000 units in April from 470,000 in March, but are 9.4 percent lower than the 552,000-unit pace a year ago. The median existing condo price was $173,900 in April, down 18.5 percent from April 2008.
By Region
NAR reported the following with existing-home sales across the country:
Northeast: jumped 11.6 percent to an annual pace of 770,000 in April, but are 10.5 percent below April 2008. Median price: $237,400, which is 9.6 percent lower than a year ago.
Midwest: slipped 2 percent in April to a level of 1.00 million and are 9.9 percent lower than a year ago. Median price: $138,800, down 11.7 percent from April 2008.
South: increased 1.8 percent to an annual pace of 1.74 million in April but are 8.9 percent lower than April 2008. Median price: $148,000, which is 12.8 percent below a year ago.
West: rose 3.5 percent to an annual rate of 1.17 million in April and are 19.4 percent higher than a year ago. Median price: $222,600, down 21.8 percent from April 2008.
Source: NAR
www.BestRateToday.info
Existing-home sales — including single-family, townhomes, condominiums and co-ops — increased 2.9 percent to a seasonally adjusted annual rate of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March. Yet, home sales were 3.5 percent below the 4.85 million-unit level in April 2008, according to NAR.
Lawrence Yun, NAR chief economist, says first-time buyers continue to influence the market but there also is a seasonal rise of repeat buyers.
“Most of the sales are taking place in lower price ranges and activity is beginning to pickup in the midprice ranges, but high-end home sales remain sluggish,” he says. “The Federal Reserve needs to help restore liquidity for the jumbo mortgage market by buying these loans under the TALF program.”
Buyers Once Again Emerge
An NAR practitioner survey in April showed first-time buyers declined to 40 percent of transactions, implying more repeat buyers are entering the traditional spring home-buying season. It also showed the number of buyers looking at homes has increased 14 percentage points from a year ago.
“This is consistent with our forecast for home sales in the latter part of the year to be 10 to 20 percent higher than the second half of 2008,” Yun says.
It's critical that distressed homes be quickly cleared from the market, Yun says.
“Fortunately, home buyers are being attracted to deeply discounted prices and are bidding up many foreclosed listings, particularly in California, Nevada, and Florida — this will set the stage for healthy market conditions going forward,” Yun says.
NAR President Charles McMillan says conditions are optimal for buyers with good jobs and long-term plans.
“We have record low mortgage interest rates, a wide selection of homes and affordable prices in most areas,” he says. “When you add the $8,000 first-time buyer tax credit, it’s hard to imagine a better time to make an investment in your future through homeownership.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.81 percent in April from 5.00 percent in March; the rate was 5.92 percent in April 2008; data collection began in 1971.
A Closer Look at the Numbers
National median existing-home price: for all housing types, was $170,200 in April, which is 15.4 percent below 2008. Distressed properties, which accounted for 45 percent of all sales in April, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.
Total housing inventory: at the end of April, rose 8.8 percent to 3.97 million existing homes available for sale, which represents a 10.2-month supply at the current sales pace, compared with a 9.6-month supply in March. “The gain in inventory is largely seasonal from sellers entering the spring market," Yun says. "Even with the rise, inventory over the past few months has remained consistently lower in comparison with a year earlier."
Single-family home sales: rose 2.5 percent to a seasonally adjusted annual rate of 4.18 million in April from a level of 4.08 million in March, but are 2.8 percent below the 4.30 million-unit pace in March 2008. The median existing single-family home price was $169,800 in April, which is 14.9 percent below a year ago.
Existing condominium and co-op sales: increased 6.4 percent to a seasonally adjusted annual rate of 500,000 units in April from 470,000 in March, but are 9.4 percent lower than the 552,000-unit pace a year ago. The median existing condo price was $173,900 in April, down 18.5 percent from April 2008.
By Region
NAR reported the following with existing-home sales across the country:
Northeast: jumped 11.6 percent to an annual pace of 770,000 in April, but are 10.5 percent below April 2008. Median price: $237,400, which is 9.6 percent lower than a year ago.
Midwest: slipped 2 percent in April to a level of 1.00 million and are 9.9 percent lower than a year ago. Median price: $138,800, down 11.7 percent from April 2008.
South: increased 1.8 percent to an annual pace of 1.74 million in April but are 8.9 percent lower than April 2008. Median price: $148,000, which is 12.8 percent below a year ago.
West: rose 3.5 percent to an annual rate of 1.17 million in April and are 19.4 percent higher than a year ago. Median price: $222,600, down 21.8 percent from April 2008.
Source: NAR
www.BestRateToday.info
Friday, May 29, 2009
Forecasters Say Recession Nearing End
More than 90 percent of economists think the recession is nearing its end, but they don't expect the economy to soar anytime soon.
Nearly 75 percent of economists, surveyed by the National Association for Business Economics, say that the recession will end in the third quarter. Another 19 percent think the turnaround will come in the fourth quarter. The rest are betting on the first quarter of 2010.
Americans seem to believe that things are getting better too. The Conference Board's Consumer Confidence Index rose 14.1 points in May to 54.9, the second month in a row in which there have been an increase.
Forecasters say that home sales will bottom out in the second quarter, an important stabilizing factor.
Source: The Associated Press, Jeannine Aversa (05/27/2009)
Nearly 75 percent of economists, surveyed by the National Association for Business Economics, say that the recession will end in the third quarter. Another 19 percent think the turnaround will come in the fourth quarter. The rest are betting on the first quarter of 2010.
Americans seem to believe that things are getting better too. The Conference Board's Consumer Confidence Index rose 14.1 points in May to 54.9, the second month in a row in which there have been an increase.
Forecasters say that home sales will bottom out in the second quarter, an important stabilizing factor.
Source: The Associated Press, Jeannine Aversa (05/27/2009)
HUD: $8000 Tax Credit Can Be Used on Closing Costs
FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.
Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.
The loans can't be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning. Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent downpayment.
There remain many sources of assistance for buyers needing help with the 3.5 percent downpayment, including many state and local government instrumentalities and nonprofit lenders.
In addition, some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their downpayment. These programs are separate from what HUD announced today.
The first-time homebuyer tax credit was enacted last year--and improved upon earlier this year--to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven't owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.
Learn more about the credit, including how to apply for it this year even if you've already filed your taxes, at REALTOR.org.
Source: Robert Freedman, REALTOR® Magazine Online
For more information contact Tony Wilson at: tonywilson@callcarpenter.com
Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.
The loans can't be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning. Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent downpayment.
There remain many sources of assistance for buyers needing help with the 3.5 percent downpayment, including many state and local government instrumentalities and nonprofit lenders.
In addition, some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their downpayment. These programs are separate from what HUD announced today.
The first-time homebuyer tax credit was enacted last year--and improved upon earlier this year--to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven't owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.
Learn more about the credit, including how to apply for it this year even if you've already filed your taxes, at REALTOR.org.
Source: Robert Freedman, REALTOR® Magazine Online
For more information contact Tony Wilson at: tonywilson@callcarpenter.com
Monday, May 25, 2009
More Buyers Lured to Foreclosed Properties
Many households say that foreclosures are a bargain and are increasingly eager to buy them, according to a Harris Interactive survey conducted for Trulia.com and RealtyTrac.
The survey found that 55 percent of U.S. adults are at least somewhat likely to consider purchasing a foreclosed home, up from 47 percent who answered the same question in November 2008.
But buyers aren’t naïve about the hassles involved with purchasing foreclosed property. About 85 percent said that they could identify negative aspects, up from 80 percent who felt the same way last November.
71 percent were concerned about hidden costs;
46 percent believe the process is risky;
31 percent fear the property will lose value.Buyers of foreclosures also expect hefty discounts – at least 25 percent.
Source: RealtyTrac.com and Trulia.com (05/20/2009)
For information about the Neighborhood Stabilization Program click here: http://carpenterrealtors.blogspot.com/search?q=neigborhood+stabilization+program
The survey found that 55 percent of U.S. adults are at least somewhat likely to consider purchasing a foreclosed home, up from 47 percent who answered the same question in November 2008.
But buyers aren’t naïve about the hassles involved with purchasing foreclosed property. About 85 percent said that they could identify negative aspects, up from 80 percent who felt the same way last November.
71 percent were concerned about hidden costs;
46 percent believe the process is risky;
31 percent fear the property will lose value.Buyers of foreclosures also expect hefty discounts – at least 25 percent.
Source: RealtyTrac.com and Trulia.com (05/20/2009)
For information about the Neighborhood Stabilization Program click here: http://carpenterrealtors.blogspot.com/search?q=neigborhood+stabilization+program
Home Affordability Hits 18-Year High
Housing affordability is reaching record levels with nearly 73 percent of all homes sold in the first three months of 2009 considered affordable.
That’s the highest percentage ever reported by the 18-year-old, quarterly Housing Opportunity Index, compiled by the National Association of Home Builders and Wells Fargo Bank.
To be considered affordable, a family making the national median household income of $64,000 must be able to devote no more than 28 percent of their income toward housing costs.
The most affordable major metropolitan areas and their median home prices are:
1. Indianapolis: $98,000
2. Youngstown, Ohio: $67,000
3. Akron, Ohio: $78,000
4. Grand Rapids, Mich.: $97,000
5. Syracuse, N.Y.: $85,000
6. Warren, Mich.: $119,000
7. Cleveland: $86,000
8. Buffalo, N.Y.: $90,000
9. Toledo, Ohio: $78,000
10. Dayton, Ohio: $85,000
The 10 least affordable metropolitan areas are:
1. New York City: $418,000
2. San Francisco: $525,000
3. Los Angeles: $288,000
4. Nassau-Suffolk, N.Y.: $375,000
5. Honolulu: $360,000
6. Santa Ana: Calif., $360,000
7. Newark, N.J.: $315,000
8. Miami: $185,000
9. McAllen, Tex.: $106,000
10. El Paso, Tex.: $127,000
Source: CNNMoney, Les Christie (05/19/2009)
Contact Tony Wilson at tonywilson@callcarpenter.com for a FREE Indianapolis Area Buying Guide!
That’s the highest percentage ever reported by the 18-year-old, quarterly Housing Opportunity Index, compiled by the National Association of Home Builders and Wells Fargo Bank.
To be considered affordable, a family making the national median household income of $64,000 must be able to devote no more than 28 percent of their income toward housing costs.
The most affordable major metropolitan areas and their median home prices are:
1. Indianapolis: $98,000
2. Youngstown, Ohio: $67,000
3. Akron, Ohio: $78,000
4. Grand Rapids, Mich.: $97,000
5. Syracuse, N.Y.: $85,000
6. Warren, Mich.: $119,000
7. Cleveland: $86,000
8. Buffalo, N.Y.: $90,000
9. Toledo, Ohio: $78,000
10. Dayton, Ohio: $85,000
The 10 least affordable metropolitan areas are:
1. New York City: $418,000
2. San Francisco: $525,000
3. Los Angeles: $288,000
4. Nassau-Suffolk, N.Y.: $375,000
5. Honolulu: $360,000
6. Santa Ana: Calif., $360,000
7. Newark, N.J.: $315,000
8. Miami: $185,000
9. McAllen, Tex.: $106,000
10. El Paso, Tex.: $127,000
Source: CNNMoney, Les Christie (05/19/2009)
Contact Tony Wilson at tonywilson@callcarpenter.com for a FREE Indianapolis Area Buying Guide!
Saturday, May 23, 2009
Mortgage Rates Continue to Fall
Freddie Mac reports a drop in the 30-year fixed mortgage rate to 4.82 percent during the week ended May 21 from 4.86 percent the prior week.
Meanwhile, the 15-year fixed mortgage rate dipped to 4.5 percent.
The Federal Reserve is working to hold down rates by purchasing upwards of $1.25 trillion in mortgage-backed securities and $300 billion in Treasuries.
Mortgage rate premiums have declined substantially over the last couple of months even as Treasury yields climbed.
Source: Investor's Business Daily (05/22/09)
For current interest rates visit: www.BestRateToday.info
Meanwhile, the 15-year fixed mortgage rate dipped to 4.5 percent.
The Federal Reserve is working to hold down rates by purchasing upwards of $1.25 trillion in mortgage-backed securities and $300 billion in Treasuries.
Mortgage rate premiums have declined substantially over the last couple of months even as Treasury yields climbed.
Source: Investor's Business Daily (05/22/09)
For current interest rates visit: www.BestRateToday.info
HUD: Homebuyer Tax Credit Loans Still on Track
News reports that the federal government is backing away from its plan to permit eligible borrowers to monetize the first-time homebuyer tax credit are off the mark, a spokesperson for the U.S. Department of Housing and Urban Development says.
"The technical details are still being finalized and will soon be published in a mortgagee letter and posted on our Web site," Lemar Wooley, a HUD spokesperson, told REALTOR® magazine Wednesday afternoon.
Under the guidance that's under development, state agencies and other HUD-approved entities would be able to provide short-term bridge loans that households could use to help with their downpayment. The loans would be repaid with the proceeds from the households' federal tax credit.
The loans were announced on the opening day of NAR's 2009 Midyear Legislative Meetings in Washington, D.C., last week. In his announcement, HUD Secretary Shaun Donovan said guidance would be issued shortly.
When the guidance is released, it is expected to cover eligible lenders and set parameters for loan terms and repayment.
Source: REALTOR® Magazine Online
Contact Tony Wilson at tonywilson@callcarpenter.com About the $8,000 Tax Credit, the $15,000 Foreclosure Program, and the $25,000 Foreclosure Program. It Pays To Stay Informed!
"The technical details are still being finalized and will soon be published in a mortgagee letter and posted on our Web site," Lemar Wooley, a HUD spokesperson, told REALTOR® magazine Wednesday afternoon.
Under the guidance that's under development, state agencies and other HUD-approved entities would be able to provide short-term bridge loans that households could use to help with their downpayment. The loans would be repaid with the proceeds from the households' federal tax credit.
The loans were announced on the opening day of NAR's 2009 Midyear Legislative Meetings in Washington, D.C., last week. In his announcement, HUD Secretary Shaun Donovan said guidance would be issued shortly.
When the guidance is released, it is expected to cover eligible lenders and set parameters for loan terms and repayment.
Source: REALTOR® Magazine Online
Contact Tony Wilson at tonywilson@callcarpenter.com About the $8,000 Tax Credit, the $15,000 Foreclosure Program, and the $25,000 Foreclosure Program. It Pays To Stay Informed!
Monday, May 18, 2009
Thursday, May 7, 2009
Buying/Selling Heritage Lake Property
Click here for links to Realtors and Real Estate Companies
Buying Heritage Lake Property
If looking for property to purchase you can call any Realtor. The POA Office has a book (black three ring binder) in which owners can offer property for sale.
Selling Heritage Lake Property
When you sell a Heritage Lake property, you have the same basic options you would with most real estate. You may sell "by owner" or may employ a broker. There are, however, certain restrictions as to how lots and homes may be physically marked for sale. They are as follows:
(If you place a "for sale" sign on your property you must follow this policy.)
* Orange markers at the property corners are encouraged so long as they are no more than three feet tall with six (6) by six (6) inch placard with the subdivision initials and lot number on them.
*ONLY ONE "FOR SALE SIGN SHALL BE ALLOWED ON ANY LOT AT ONE TIME with only the following exceptions.
*Waterfront homes (as designated by the list on file at the POA Office) shall be allowed one additional sign at the water side of the property if the sign is mounted on the home, attached porch or garage. Signs are not allowed on docks or steps.
*Lots combined by deed shall be counted as one lot.
*ONLY "Open House" directional signs shall be allowed between sunrise and sunset the day of the open house. (Saturday and Sunday only). No other directional signs shall be allowed.
The sign shall not be located closer to the pavement than the right-of way (approximately) twenty feet (20').
*The sign frame shall measure no more than two and one half feet by two and one half feet2 1/2' X 2 1/2') and no taller than five feet (5') from the ground. (This will include most Realtor signs.)
* All property for sale must be mowed and maintained to a height not to exceed eight (8) inches, from the street to the entire depth of the property or as decided by the POA Manager.
*All signs shall have the appearance of being professionally made.
*No sign shall be allowed to fall into disrepair.
*Realtors/owners/agents must notify the POA Office of the location of new signs.
*Signs in violation of this policy as determined by the POA Manager, will be removed and not returned.
* If you use only the orange markers, there is no criteria for mowing the lot and no notification is necessary.
For a Free Heritage Lake Home Buying Guide:
E-mail Tony Wilson at tonywilson@callcarpenter.com
Buying Heritage Lake Property
If looking for property to purchase you can call any Realtor. The POA Office has a book (black three ring binder) in which owners can offer property for sale.
Selling Heritage Lake Property
When you sell a Heritage Lake property, you have the same basic options you would with most real estate. You may sell "by owner" or may employ a broker. There are, however, certain restrictions as to how lots and homes may be physically marked for sale. They are as follows:
(If you place a "for sale" sign on your property you must follow this policy.)
* Orange markers at the property corners are encouraged so long as they are no more than three feet tall with six (6) by six (6) inch placard with the subdivision initials and lot number on them.
*ONLY ONE "FOR SALE SIGN SHALL BE ALLOWED ON ANY LOT AT ONE TIME with only the following exceptions.
*Waterfront homes (as designated by the list on file at the POA Office) shall be allowed one additional sign at the water side of the property if the sign is mounted on the home, attached porch or garage. Signs are not allowed on docks or steps.
*Lots combined by deed shall be counted as one lot.
*ONLY "Open House" directional signs shall be allowed between sunrise and sunset the day of the open house. (Saturday and Sunday only). No other directional signs shall be allowed.
The sign shall not be located closer to the pavement than the right-of way (approximately) twenty feet (20').
*The sign frame shall measure no more than two and one half feet by two and one half feet2 1/2' X 2 1/2') and no taller than five feet (5') from the ground. (This will include most Realtor signs.)
* All property for sale must be mowed and maintained to a height not to exceed eight (8) inches, from the street to the entire depth of the property or as decided by the POA Manager.
*All signs shall have the appearance of being professionally made.
*No sign shall be allowed to fall into disrepair.
*Realtors/owners/agents must notify the POA Office of the location of new signs.
*Signs in violation of this policy as determined by the POA Manager, will be removed and not returned.
* If you use only the orange markers, there is no criteria for mowing the lot and no notification is necessary.
For a Free Heritage Lake Home Buying Guide:
E-mail Tony Wilson at tonywilson@callcarpenter.com
Heritage Lake, Coatesville, Indiana
Heritage Lake is comprised of six subdivisions including over 1,200 homes. As members, you may enjoy the beaches, picnic areas, swimming pool, activities center, campground, softball field, tennis & basketball courts. Several small lakes (ponds) as well as the main lake are within the Heritage Lake boundaries. All offer excellent fishing provided, of course, you’re using the right bait at the right place at the right time. Each season offers its own beauty and wildlife as well as diversified activities.
Within this site you will find additional information regarding Heritage Lake plus a description of the various groups and organizations that meet regularly. Joining one of these organizations is an easy way to become involved in the community and to meet many new neighbors.
Heritage Lake is located approximately 22 miles West of Indianapolis, Indiana, (27 miles west of I-465 exit 13) and just a mile south of US36 in Putnam, County.
There are six subdivisions at Heritage Lake. Subdivisions are identified by letters as follows:
GB = Gettysburg
JV = Jefferson Valley
LH = Lincoln Hills
MS = Mill Springs
PL = Patriots Landing
VH = Victory Hill
Within this site you will find additional information regarding Heritage Lake plus a description of the various groups and organizations that meet regularly. Joining one of these organizations is an easy way to become involved in the community and to meet many new neighbors.
Heritage Lake is located approximately 22 miles West of Indianapolis, Indiana, (27 miles west of I-465 exit 13) and just a mile south of US36 in Putnam, County.
There are six subdivisions at Heritage Lake. Subdivisions are identified by letters as follows:
GB = Gettysburg
JV = Jefferson Valley
LH = Lincoln Hills
MS = Mill Springs
PL = Patriots Landing
VH = Victory Hill
The lots within each subdivision are numbered. There are 2,986 legally platted lots within the six subdivisions.
These Lot Numbers are the mailing address of the property and are utilized for the 911 emergency system. There is also approximately 30 miles of County roads within the subdivisions. The Drives and Courts are all names you may be familiar with from the Revolutionary War.
For Covenants and Restrictions for Heritage Lake - Click Here!
For Heritage Lake By-Laws - Click Here!
For a FREE Heritage Lake Buyers Guide: E-mail tonywilson@callcarpenter.com
Visit http://www.heritagelake.net/ for a printable map.
Sunday, April 26, 2009
Neighborhood Stabilization Program (NSP),
Since announcing our Neighborhood Stabilization Program (NSP), IHCDA has received many positive responses, but also a bevy of questions about the initiative and how Hoosiers qualify.
The federal Neighborhood Stabilization Program (NSP) funds are Indiana's share of $3.92 billion appropriated to all 50 states and more than 250 cities and counties to assist with national foreclosure problems. The state developed a plan to distribute approximately $50 million to local units of government to assist with neighborhood redevelopment needs, and $31 million to be maintained in a fund that would be made available to low- and moderate-income individuals and families who choose to purchase abandoned and foreclosed homes through the Market Stabilization Fund.
· IHCDA will make this funding source available to home buyers who intend to occupy the home themselves, in an effort to stimulate the housing market and encourage asset development among Hoosiers.
· IHCDA will utilize our single-family participating lenders, the Indiana Association of REALTORS, HomeEC certified housing counseling agencies and other partners to provide marketing and outreach to potential eligible homebuyers for this funding.
· Through this program, IHCDA will offer up to $15,000 (not to exceed 20% of purchase price) to assist homebuyers with the acquisition and/or rehabilitation of a foreclosed residential property. Matching funds up to $10,000 may be provided by the Federal Home Loan Bank.
We have been out in communities around the state talking to lenders and realtors about this exciting new homebuyer opportunity. If you or your clients would like to learn more about the Market Stabilization Program, please visit our website's "Homebuyer" section. More details about the program can be found on our website, including income limits, a downloadable brochure, and a link to IndianaHousingNow.org where interested parties can type the address of a foreclosed home to see if it qualifies under this program.
Benefits of New Housing Initiative Are Numerous
Earlier this month I was pleased to announce a new program that not only addresses the problem of vacant foreclosed homes, but also helps Hoosiers realize home ownership.
The Market Stabilization Program will make the dream of home ownership a reality for many Hoosier families across the state. Under this new program, low to moderate income Hoosiers who buy foreclosed homes and use them as their primary residence, may be eligible to claim up to $25,000 for a down payment or rehabilitation. The Indiana Housing and Community Development Authority would provide up to $15,000 and the state's partner, Federal Home Loan Bank, would provide up to $10,000.
The benefits of motivating buyers to purchase foreclosed homes are multiple, from removing blight to spurring economic development to providing families with a sound investment.
Indiana is unique in using the funds from the federal Neighborhood Stabilization program to develop a state-wide program to deal with foreclosed homes. Most states are sending all of the federal funds to local governments. Indiana communities will still receive more than $50 million from the state to address any redevelopment needs, but a portion has been set aside for the new housing initiative. First time homebuyers or buyers who haven't owned a home in three years can also take advantage of the federal government's $8,000 tax credit with the combined incentives, there really hasn't been a better time to purchase a home.
Last year, we assisted nearly 3,000 families achieve the American Dream through our existing programs, but with this new program we believe we have an opportunity that exceeds all previous efforts. It is my hope that this new program opens several new windows of opportunity for many Hoosier families.
Email tonywilson@callcarpenter.com for your FREE Buying Guide!
The federal Neighborhood Stabilization Program (NSP) funds are Indiana's share of $3.92 billion appropriated to all 50 states and more than 250 cities and counties to assist with national foreclosure problems. The state developed a plan to distribute approximately $50 million to local units of government to assist with neighborhood redevelopment needs, and $31 million to be maintained in a fund that would be made available to low- and moderate-income individuals and families who choose to purchase abandoned and foreclosed homes through the Market Stabilization Fund.
· IHCDA will make this funding source available to home buyers who intend to occupy the home themselves, in an effort to stimulate the housing market and encourage asset development among Hoosiers.
· IHCDA will utilize our single-family participating lenders, the Indiana Association of REALTORS, HomeEC certified housing counseling agencies and other partners to provide marketing and outreach to potential eligible homebuyers for this funding.
· Through this program, IHCDA will offer up to $15,000 (not to exceed 20% of purchase price) to assist homebuyers with the acquisition and/or rehabilitation of a foreclosed residential property. Matching funds up to $10,000 may be provided by the Federal Home Loan Bank.
We have been out in communities around the state talking to lenders and realtors about this exciting new homebuyer opportunity. If you or your clients would like to learn more about the Market Stabilization Program, please visit our website's "Homebuyer" section. More details about the program can be found on our website, including income limits, a downloadable brochure, and a link to IndianaHousingNow.org where interested parties can type the address of a foreclosed home to see if it qualifies under this program.
Benefits of New Housing Initiative Are Numerous
Earlier this month I was pleased to announce a new program that not only addresses the problem of vacant foreclosed homes, but also helps Hoosiers realize home ownership.
The Market Stabilization Program will make the dream of home ownership a reality for many Hoosier families across the state. Under this new program, low to moderate income Hoosiers who buy foreclosed homes and use them as their primary residence, may be eligible to claim up to $25,000 for a down payment or rehabilitation. The Indiana Housing and Community Development Authority would provide up to $15,000 and the state's partner, Federal Home Loan Bank, would provide up to $10,000.
The benefits of motivating buyers to purchase foreclosed homes are multiple, from removing blight to spurring economic development to providing families with a sound investment.
Indiana is unique in using the funds from the federal Neighborhood Stabilization program to develop a state-wide program to deal with foreclosed homes. Most states are sending all of the federal funds to local governments. Indiana communities will still receive more than $50 million from the state to address any redevelopment needs, but a portion has been set aside for the new housing initiative. First time homebuyers or buyers who haven't owned a home in three years can also take advantage of the federal government's $8,000 tax credit with the combined incentives, there really hasn't been a better time to purchase a home.
Last year, we assisted nearly 3,000 families achieve the American Dream through our existing programs, but with this new program we believe we have an opportunity that exceeds all previous efforts. It is my hope that this new program opens several new windows of opportunity for many Hoosier families.
Email tonywilson@callcarpenter.com for your FREE Buying Guide!
Friday, April 24, 2009
Where to Get Foreclosure Help
With all the dubious assistance programs and out-right scams preying on home owners facing foreclosure, it can be difficult to find legitimate help.
Here’s a list of programs that are either operated by the U.S. government or have its seal of approval:
To find a counselor, contact the U.S. Department of Housing and Urban Development (HUD) at (800) 569-4287 or (877) 483-1515, or go to www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm
Call (888) 995-HOPE, the Homeowner’s HOPE Hotline to reach a nonprofit, HUD-approved counselor through HOPE NOW, a cooperative effort of mortgage counselors and lenders to assist homeowners.
Visit NeighborWorks America’s Web site at www.nw.org/network/home.asp
Go to this Web site for information on federal mortgage modification and refinancing programs: http://www.makinghomeaffordable.gov/
The Controller of the Currency’s consumer information site for banking-related questions is http://www.helpwithmybank.gov/
OCC Customer Assistance Group and consumer assistance site: www.occ.gov/customer.htm
Federal Trade Commission: www.ftc.gov/bcp/edu/pubs/consumer/homes/rea04.shtm
Federal Reserve Board: www.federalreserve.gov/pubs/foreclosurescamtips/default.htm
NeighborWorks America: http://www.nw.org/
HOPE NOW: http://www.hopenow.com/
For additional information - E-mail Tony Wilson at: tonywilson@callcarpenter.com
http://www.wilsonrealtors.net/
See Today's Interest Rates! Click Here!
Here’s a list of programs that are either operated by the U.S. government or have its seal of approval:
To find a counselor, contact the U.S. Department of Housing and Urban Development (HUD) at (800) 569-4287 or (877) 483-1515, or go to www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm
Call (888) 995-HOPE, the Homeowner’s HOPE Hotline to reach a nonprofit, HUD-approved counselor through HOPE NOW, a cooperative effort of mortgage counselors and lenders to assist homeowners.
Visit NeighborWorks America’s Web site at www.nw.org/network/home.asp
Go to this Web site for information on federal mortgage modification and refinancing programs: http://www.makinghomeaffordable.gov/
The Controller of the Currency’s consumer information site for banking-related questions is http://www.helpwithmybank.gov/
OCC Customer Assistance Group and consumer assistance site: www.occ.gov/customer.htm
Federal Trade Commission: www.ftc.gov/bcp/edu/pubs/consumer/homes/rea04.shtm
Federal Reserve Board: www.federalreserve.gov/pubs/foreclosurescamtips/default.htm
NeighborWorks America: http://www.nw.org/
HOPE NOW: http://www.hopenow.com/
For additional information - E-mail Tony Wilson at: tonywilson@callcarpenter.com
http://www.wilsonrealtors.net/
See Today's Interest Rates! Click Here!
Friday, April 17, 2009
6 Landscaping Tricks That Wow Buyers
In today's market, sellers have to work harder to persuade buyers that their property is worth the bite.
April 2009
Landscape designer Michael Glassman has cooked up a recipe for guaranteed curb appeal.
1. Add splashes of color. With every changing season, a landscape should provide a new display of colors, textures, and fragrances. "It’s best to use one or two and repeat them," Glassman says. Example: white iceberg roses that bloom in spring, summer, and fall as a backdrop; in front, a contrasting punch of purple salvia or lavender that will flower at the same time; and as an accent, a crape myrtle tree that provides changing leaf colors in fall and interesting branches come winter.
2. Size trees and shrubs to scale. These should be planted in the right scale for the house so that they don’t block windows, doors, and other architectural features on the home’s facade. A large two-story house can handle a redwood, Chinese pistache, sycamore, or scarlet oak, but a one-story cottage is better paired with a flowering cherry, crabapple, or eastern redbud. Too many trees cast too much shadow and cause potential buyers to worry about maintenance and costs.
3. Maintain a perfect lawn. A velvety green lawn demonstrates tender loving care, so be sure sellers’ homes don’t have brown spots. Some rocks, pebbles, boulders, drought-tolerant plants, and ornamental grasses will generate more kudos, especially in drought areas.
4. Light up the outside. Good illumination allows buyers to see a home at night and adds drama. Sellers should use low-voltage lamps to highlight branches of specimen trees, a front door, walk, and corners of the house. But less is better. The yard shouldn’t resemble an airport runway.
5. Let them hear the water. The sound of water appeals to buyers, and you shouldn’t just reserve this for your backyard. A small fountain accented with rocks provides a pleasant gurgling sound, blocks street noise, and is affordable.
6. Use decorative architectural elements. A new mailbox, planted window boxes, and a low fence wrapped in potato vines add cachet, particularly during winter months when fewer plants blossom. Colors should complement the landscape and home. Just don’t overdo it: Too much can seem like kitschy lawn ornaments.
April 2009
Landscape designer Michael Glassman has cooked up a recipe for guaranteed curb appeal.
1. Add splashes of color. With every changing season, a landscape should provide a new display of colors, textures, and fragrances. "It’s best to use one or two and repeat them," Glassman says. Example: white iceberg roses that bloom in spring, summer, and fall as a backdrop; in front, a contrasting punch of purple salvia or lavender that will flower at the same time; and as an accent, a crape myrtle tree that provides changing leaf colors in fall and interesting branches come winter.
2. Size trees and shrubs to scale. These should be planted in the right scale for the house so that they don’t block windows, doors, and other architectural features on the home’s facade. A large two-story house can handle a redwood, Chinese pistache, sycamore, or scarlet oak, but a one-story cottage is better paired with a flowering cherry, crabapple, or eastern redbud. Too many trees cast too much shadow and cause potential buyers to worry about maintenance and costs.
3. Maintain a perfect lawn. A velvety green lawn demonstrates tender loving care, so be sure sellers’ homes don’t have brown spots. Some rocks, pebbles, boulders, drought-tolerant plants, and ornamental grasses will generate more kudos, especially in drought areas.
4. Light up the outside. Good illumination allows buyers to see a home at night and adds drama. Sellers should use low-voltage lamps to highlight branches of specimen trees, a front door, walk, and corners of the house. But less is better. The yard shouldn’t resemble an airport runway.
5. Let them hear the water. The sound of water appeals to buyers, and you shouldn’t just reserve this for your backyard. A small fountain accented with rocks provides a pleasant gurgling sound, blocks street noise, and is affordable.
6. Use decorative architectural elements. A new mailbox, planted window boxes, and a low fence wrapped in potato vines add cachet, particularly during winter months when fewer plants blossom. Colors should complement the landscape and home. Just don’t overdo it: Too much can seem like kitschy lawn ornaments.
Federal Housing Rescue Plan Launches
The Obama Administration’s program to rescue distressed home owners got off the ground this week.
The program was announced on Feb. 18, but it took several weeks to put the bureaucracy in place.
Six of the nation’s largest banks signed up to participate, the Treasury Department announced Wednesday.
They are JPMorgan Chase, Wells Fargo, Citigroup, GMAC Mortgage, Saxon Mortgage Services, and Select Portfolio Servicing.Treasury says it is allocating $50 billion to the program.
The Department of Housing and Urban Development will provide the rest.The plan calls for loan servicers to reduce interest rates so a family’s monthly mortgage obligation is no more than 38 percent of its pre-tax income.
Loan servicers also can reduce loan balances. After the loans are modified, the government then provides enough money to reduce payments to 31 percent of income.
Participating servicers get $1,000 a year for each modification and another $1,000 a year for three years if the borrower remains current.
Servicers get an extra $500 if they do the modifications before the borrower falls behind in his payments—and the borrower gets $1,500.
Also, homeowners get $1,000 a year for five years if they remain current on their payments. The money must be used to reduce their principal balances.
Source: CNN, Tami Luhby (04/16/2009)
The program was announced on Feb. 18, but it took several weeks to put the bureaucracy in place.
Six of the nation’s largest banks signed up to participate, the Treasury Department announced Wednesday.
They are JPMorgan Chase, Wells Fargo, Citigroup, GMAC Mortgage, Saxon Mortgage Services, and Select Portfolio Servicing.Treasury says it is allocating $50 billion to the program.
The Department of Housing and Urban Development will provide the rest.The plan calls for loan servicers to reduce interest rates so a family’s monthly mortgage obligation is no more than 38 percent of its pre-tax income.
Loan servicers also can reduce loan balances. After the loans are modified, the government then provides enough money to reduce payments to 31 percent of income.
Participating servicers get $1,000 a year for each modification and another $1,000 a year for three years if the borrower remains current.
Servicers get an extra $500 if they do the modifications before the borrower falls behind in his payments—and the borrower gets $1,500.
Also, homeowners get $1,000 a year for five years if they remain current on their payments. The money must be used to reduce their principal balances.
Source: CNN, Tami Luhby (04/16/2009)
Friday, April 10, 2009
Top Economists Say Recovery Has Begun
Economic recovery is about making people feel more confident, says Mark Zandi, chief economist of Moody’s Economy.com.
Zandi evidenced increasing home sales and gains in the stock market are some promising signs that the worst is over and people will start spending again.
“We’re starting to see some pent-up demand for goods,” he says.
But Zandi warns that the situation is still fragile. "Confidence is a very fickle thing. It can go from abject pessimism that pervades now to a more balanced view of the world rather quickly.”
Robert Brusca of FAO Economics is predicting strong growth in the last half of the year and a quick recovery for the labor market. "You've lost 5 million jobs. It shouldn't be hard to put 2.5 million jobs back on rather quickly after you hit bottom," he said.
Joseph Carson, chief economist at AllianceBernstein, calls improving home sales, a rising stock market, and better-than-expected retail sales in February and March good signs of a turnaround. By the time President Obama’s stimulus package takes effect, the economy will be ready, he says.
"The stimulus has a much better chance of working if trends are already turning up than if it needs to halt a decline," he said.
$25,000 For Foreclosed Properties - Ask me how to get yours!
tonywilson@callcarpenter.com
Zandi evidenced increasing home sales and gains in the stock market are some promising signs that the worst is over and people will start spending again.
“We’re starting to see some pent-up demand for goods,” he says.
But Zandi warns that the situation is still fragile. "Confidence is a very fickle thing. It can go from abject pessimism that pervades now to a more balanced view of the world rather quickly.”
Robert Brusca of FAO Economics is predicting strong growth in the last half of the year and a quick recovery for the labor market. "You've lost 5 million jobs. It shouldn't be hard to put 2.5 million jobs back on rather quickly after you hit bottom," he said.
Joseph Carson, chief economist at AllianceBernstein, calls improving home sales, a rising stock market, and better-than-expected retail sales in February and March good signs of a turnaround. By the time President Obama’s stimulus package takes effect, the economy will be ready, he says.
"The stimulus has a much better chance of working if trends are already turning up than if it needs to halt a decline," he said.
$25,000 For Foreclosed Properties - Ask me how to get yours!
tonywilson@callcarpenter.com
Up To $25,000 to Buy A Foreclosed Property
Indianapolis - Help to get Hoosiers into homes was announced Wednesday at the Statehouse.
You may qualify for up to $25,000 for free, but there are some conditions.
You have to buy a foreclosed home. If you live in that home for 10 years, you don't have to pay the loan back. If you sell or refinance the home during the decade, you have to pay all or a portion of the loan.The state is offering a loan up to $15,000 for closing costs or home improvements.
The Federal Home Loan Bank of Indianapolis has committed to matching loans up to $10,000. How the Market Stabilization Program Works: ·
IHCDA will offer up to $15,000 (not to exceed 20% of purchase price) to assist homebuyers with the acquisition and/or rehabilitation of a foreclosed residential property located within an area of greatest need.
· These funds may be used in conjunction with the IHCDA First Home product, FHA, VA, USDA, or prime fixed rate product. No adjustable rate or subprime mortgage products will be allowed for the purchase of these homes.
· Home buyers may use these funds for closing costs and down payment assistance related to the purchase of a foreclosed home or residential property that will be used as the primary residence.
· To be eligible for rehab funds a residential structure must not meet local building code and therefore is unable to be purchased in its present condition.
· Buyers may use both acquisition and rehabilitation assistance in the purchase of a home, but the combined assistance may not exceed $15,000. These funds will be in the form of a zero-interest, non-amortizing, second mortgage loan. These funds do not have to be repaid as long as home buyers use the home as a principal residence for at least ten years. If the homebuyer sells the home within the first five years, the subsidy is repayable to IHCDA on a shared net proceeds basis. If the homebuyer refinances within the first five years, the entire subsidy is repayable to IHCDA. After year 5 and through year 10, the homebuyer will retain 20% in equity of the award amount per year.
· This funding will be available to home buyers that are at or below 120% of area median income and who intend to occupy the home themselves.Home buyers will be required to participate in 8 hours of pre-purchase education provided by an IHCDA certified counselor.
· IHCDA will be coordinating with lenders/servicers, Fannie Mae, Freddie Mac and HUD to list foreclosed properties on a centralized website. Lenders will be required to sell the properties listed on the site at a discount that meets or exceeds NSP guidelines.
Site will be live by the end of April.A downloadable brochure for consumers is available on IHCDA's web site.
For additional information - E-mail Tony Wilson at: tonywilson@callcarpenter.com
www.WilsonRealtors.Net
Need Financing? Click Here!
You may qualify for up to $25,000 for free, but there are some conditions.
You have to buy a foreclosed home. If you live in that home for 10 years, you don't have to pay the loan back. If you sell or refinance the home during the decade, you have to pay all or a portion of the loan.The state is offering a loan up to $15,000 for closing costs or home improvements.
The Federal Home Loan Bank of Indianapolis has committed to matching loans up to $10,000. How the Market Stabilization Program Works: ·
IHCDA will offer up to $15,000 (not to exceed 20% of purchase price) to assist homebuyers with the acquisition and/or rehabilitation of a foreclosed residential property located within an area of greatest need.
· These funds may be used in conjunction with the IHCDA First Home product, FHA, VA, USDA, or prime fixed rate product. No adjustable rate or subprime mortgage products will be allowed for the purchase of these homes.
· Home buyers may use these funds for closing costs and down payment assistance related to the purchase of a foreclosed home or residential property that will be used as the primary residence.
· To be eligible for rehab funds a residential structure must not meet local building code and therefore is unable to be purchased in its present condition.
· Buyers may use both acquisition and rehabilitation assistance in the purchase of a home, but the combined assistance may not exceed $15,000. These funds will be in the form of a zero-interest, non-amortizing, second mortgage loan. These funds do not have to be repaid as long as home buyers use the home as a principal residence for at least ten years. If the homebuyer sells the home within the first five years, the subsidy is repayable to IHCDA on a shared net proceeds basis. If the homebuyer refinances within the first five years, the entire subsidy is repayable to IHCDA. After year 5 and through year 10, the homebuyer will retain 20% in equity of the award amount per year.
· This funding will be available to home buyers that are at or below 120% of area median income and who intend to occupy the home themselves.Home buyers will be required to participate in 8 hours of pre-purchase education provided by an IHCDA certified counselor.
· IHCDA will be coordinating with lenders/servicers, Fannie Mae, Freddie Mac and HUD to list foreclosed properties on a centralized website. Lenders will be required to sell the properties listed on the site at a discount that meets or exceeds NSP guidelines.
Site will be live by the end of April.A downloadable brochure for consumers is available on IHCDA's web site.
For additional information - E-mail Tony Wilson at: tonywilson@callcarpenter.com
www.WilsonRealtors.Net
Need Financing? Click Here!
Friday, March 27, 2009
The average interest on a 30-year mortgage fell to a 38-year low of 4.85 percent during the week ending March 27 from 4.98 percent the prior week, Freddie Mac reported.
The decrease came on the heels of the Federal Reserve's announcement that it plans to purchase another $750 billion in mortgage-backed securities and up to $300 million in Treasuries. President Obama says refinancing is now possible for 40 percent of mortgages and encourages home owners to reap the benefits of the record-low rates.
Click Here For Current Interest Rates!
The decrease came on the heels of the Federal Reserve's announcement that it plans to purchase another $750 billion in mortgage-backed securities and up to $300 million in Treasuries. President Obama says refinancing is now possible for 40 percent of mortgages and encourages home owners to reap the benefits of the record-low rates.
Click Here For Current Interest Rates!
Survey: Households Say Now Good Time to Buy
More than three-quarters (78 percent) of potential first-time home buyers say that now is a good time to buy a home, despite widespread concern about the economy.
Out of the 1,000 prospective U.S. first-time home buyers surveyed in early March for the CENTURY 21 First-Time Home Buyer Survey, 68 percent think now is a better time to buy than six months ago.
Prices are the driving motivation for potential first-time home buyers with more than eight of ten first-time home buyers (85 percent) saying they consider current home prices affordable and 73 percent citing that taking advantage of current prices is a major factor in their decision to buy.
Interestingly, potential first-time buyers are still split between “being willing to consider an offer now” (42 percent) and “waiting for prices to go down before they seriously consider making a purchase” (48 percent).
“Current pricing, rates and incentives, such as the First Time Homebuyer Tax Credit, provide tremendous opportunities for first-time home buyers to get into the market,” said Tom Kunz, Century 21 Real Estate president and CEO.
“Our research shows that while consumers still have concerns about the future of the economy, many are actively considering their options as we move into the spring selling season.”
Among the survey’s other key findings:
Bargains in the marketplace are providing additional options for buyers to consider.
56 percent of potential first-time home buyers are considering purchasing a foreclosed or short sale home, and 63 percent are open to purchasing either a “fixer-upper” or “as-is” home.
When asked to rate the features that they look for when choosing a home, price is the primary consideration with 87 percent saying this feature is “very important,” followed closely by neighborhood safety (80 percent) and the condition of the home (71 percent).
Having enough money for a down payment is a top concern of potential first-time home buyers as nearly half (46 percent) said they are “very worried” about the issue.
Most respondents (86 percent) are in the market for single family homes.
Stay Informed! Subscribe!
Free No-Obligation Consultations Available Anytime!
Call, Text or E-mail us at:
Tony Wilson (317)354-7410 tonywilson@callcarpenter.com
Valerie Wilson (317)441-3921 vwilson@callcarpenter.com
or visit www.WilsonRealtors.Net
Thinking about selling and not sure if the time is right?
Visit www.WilsonWorksForYou.com to see what we can do for you!
Out of the 1,000 prospective U.S. first-time home buyers surveyed in early March for the CENTURY 21 First-Time Home Buyer Survey, 68 percent think now is a better time to buy than six months ago.
Prices are the driving motivation for potential first-time home buyers with more than eight of ten first-time home buyers (85 percent) saying they consider current home prices affordable and 73 percent citing that taking advantage of current prices is a major factor in their decision to buy.
Interestingly, potential first-time buyers are still split between “being willing to consider an offer now” (42 percent) and “waiting for prices to go down before they seriously consider making a purchase” (48 percent).
“Current pricing, rates and incentives, such as the First Time Homebuyer Tax Credit, provide tremendous opportunities for first-time home buyers to get into the market,” said Tom Kunz, Century 21 Real Estate president and CEO.
“Our research shows that while consumers still have concerns about the future of the economy, many are actively considering their options as we move into the spring selling season.”
Among the survey’s other key findings:
Bargains in the marketplace are providing additional options for buyers to consider.
56 percent of potential first-time home buyers are considering purchasing a foreclosed or short sale home, and 63 percent are open to purchasing either a “fixer-upper” or “as-is” home.
When asked to rate the features that they look for when choosing a home, price is the primary consideration with 87 percent saying this feature is “very important,” followed closely by neighborhood safety (80 percent) and the condition of the home (71 percent).
Having enough money for a down payment is a top concern of potential first-time home buyers as nearly half (46 percent) said they are “very worried” about the issue.
Most respondents (86 percent) are in the market for single family homes.
Stay Informed! Subscribe!
Free No-Obligation Consultations Available Anytime!
Call, Text or E-mail us at:
Tony Wilson (317)354-7410 tonywilson@callcarpenter.com
Valerie Wilson (317)441-3921 vwilson@callcarpenter.com
or visit www.WilsonRealtors.Net
Thinking about selling and not sure if the time is right?
Visit www.WilsonWorksForYou.com to see what we can do for you!
Monday, March 9, 2009
Outside buyers drawn to Detroit's foreclosed homes
DETROIT – Welcome to Landlord Nation, where foreclosure notices are plentiful and for-sale signs offer at least 1,800 homes for under $10,000 that once were worth at least 10 times more.
In extreme cases, homes are on sale for $1 or less, which has enticed investors to Detroit from as far away as the United Kingdom and Australia.
"In the past few months, I've picked up 10 new clients from out of state that are buying in bulk," said Mike Shannon, a suburban Detroit real estate agent. His office specializes in foreclosures in a city that's among the national leaders.
"They're coming to us, saying `Look, I want to buy 50, 100, 1,000.' They want to own every decent and cheap house they can find."
Despite a stagnant retail housing market, real estate sales of foreclosed homes are booming. Shannon regularly fields calls from eager prospects, and recently sold 30 homes in one day to one buyer. A trio of U.K. investors has bought a half-dozen and plans many more.
"I thought it would be quite good fun to have a look," said Darren Veness, who lives near Brighton, England.
Outside buyers are the latest in a long line of landlords taking over the deteriorating housing stock of a city that because of its once mighty auto industry boasted one of the highest owner-occupied housing rates in the U.S. And unlike many large cities, Detroit's single-family homes dominate its landscape, not high-rise apartment buildings.
The outside investors aren't only interested in Detroit, but it's been targeted because of the sheer volume of homes and the fact that values have fallen so much more than elsewhere.
Detroit now has the lowest ownership rate for single-family detached homes of the 20 largest cities in the country, according to data analyzed by longtime Detroit demographer Kurt Metzger.
Even the sale of U.S. Housing and Urban Development homes has been impacted by the poor housing climate in Detroit. The average sales prices of such homes plunged from $46,702 in 2003 to $8,692 last year. Through the first month of 2009, average sales were $6,035.
Still, not all of Detroit's real estate market has bottomed out. Listings include a seven-bedroom, 11,580 square-foot Tudor in Detroit's historic Indian Village neighborhood for $849,900, and a $765,000 penthouse condo in the city's Albert Kahn Building.
What's the effect on a city whose population has plummeted to half its size since the 1950s with no sign of return? The winners might be the renters lucky enough to live in a home that's been fixed up by a legitimate landlord. The losers might be those who end up in less reputable hands.
The stakes could go either way for the landlords arriving in a market that may not have found its bottom. Same for the dwindling number of neighbors who still own their homes — they could benefit from having the vacant home fixed up and occupied but likely will find theirs will fetch a fraction of what they paid or owe.
Novella Willis, a longtime resident of Cruse Street, soon will have her mortgage paid off but she is among those caught in the changing market.
"None of these houses are selling. None of them," she said. "If you go down to the next block you'll see a lot of foreclosures all around here."
The once-stable neighborhood of well-tended brick homes on Detroit's northwest side has some with brick paver driveways and front walks, trimmed bushes and new windows. But foreclosures are creating what Shannon calls "an investors' dream." These are not the infamous $1 homes, but well-built structures falling on hard times that are available for under $10,000.
Willis, a 70-year-old retired court worker, says renters have hurt the neighborhood.
"A couple of houses across the street, they are in-and-out renters," she said. "They don't stay long, maybe three or four months. The renters rarely cut the grass, rarely do the snow. You don't see the owners until people leave the house."
But out-of-town investors have rescued two homes from abandonment.
Anthony Pierson and Henry Suell of Oakland and Wayne counties bought their home for $8,500. It's one of several they bought through HUD, and they expect to rent it within a month after they perform mainly cosmetic repairs.
Pierson, of West Bloomfield Township and Suell, of Harper Woods said the goal is to cover taxes and maintenance through the rent and maybe make some money if property values turn around.
"We just want to invest into it and bring the neighborhood back," Suell said.
Next door, the road to rehabilitation hasn't been as smooth. Days before a tenant was to move in, someone set fire to the home and caused significant interior damage.
"To be fair, with all the publicity and all the scare-mongering that goes with Detroit, we were expecting it to happen a lot sooner," said Veness, whose SVC LLC has so far rented three of the six homes they own.
Veness said he sent 10 e-mails to Detroit-area real estate agents after learning about the city's real estate bargains. He promptly heard back from Shannon, whose firm invited him to Detroit for a tour. Veness came for three days, and he and his colleagues bought their first two homes.
Veness said they have considered other U.S. cities, but so far Detroit is it. For them, it's simple: The homes are cheap and plentiful.
"Do the math, you can buy and rehab a home for $20,000, then rent for $900 a month," he said. "Three to four months of the year, rent is going to pay the taxes."
Rentals typically range from about $800 to $1,000, and many are subsidized by the government.
He rejects the label "absentee landlord," — or at least the image it conveys. He uses local construction and property management companies, and returned last month to take care of business and shop for new properties.
He also takes a long-term view on investing. Besides raising its stake in Detroit, his group plans to buy, fix and sell groups of homes to other U.K. investors.
"We just want to build our portfolio as big as we can," Veness said. "I know Detroit has been in a mess ... and I think now is the time. The next 10 years, it's going to change.
"If my investment still pays for itself, why am I going to leave it?"
City officials say they know numerous outside investors are buying homes because those who want to rent them must contact the Building Safety and Engineering Department. But exact numbers are hard to come by.
"For every call we get, I would guess there are five or six people we never know are out there," Detroit Planning Director Douglass Diggs said.
Diggs said city officials are trying to bring some stability to neighborhoods.
"We try to make sure that the people who are coming in and making an investment in the properties are going to keep them up. We don't want another crisis down the road where we have inferior housing stock."
Still, the tight credit market makes it difficult for many people to secure mortgages.
"We are pushing that individuals do rent-to-own and lease-to-own so people are moving toward home ownership roles," Diggs said.
One out-of-state investor is attempting to do just that. Newport Beach, Calif.-based Michael Alexander has bought more than 150 homes in Detroit and has hired a local property manager to work with renters to eventually purchase some of the homes.
The recent rush offers some experts hope for a housing market with no better options left. Property values drop when homes are rented, but in many cases the alternative is an empty house.
"At times, it's the only way to get the homes occupied," said John Mogk, a Wayne State law school professor.
Detroit began seeing more homes being rented in the mid-1960s as many white homeowners bought homes in the suburbs but kept their property in the city. It accelerated following the 1967 riot, when even more of the city's white residents moved out.
A HUD program affecting more than a quarter of the homes in Detroit allowed purchases with no down payment to borrowers with reduced credit standards.
"At that time Detroit was beginning to lose jobs and unemployment was building up," Mogk said. "Homes began to be abandoned, and then foreclosed on and taken over by HUD and sold en masse to investors.
Metzger said he's skeptical based on the city's history but hopes new efforts succeed where others have failed.
"If indeed these investors are going to ... strengthen the housing stock and really make sure the repairs the homes are stabilized, I think it's a great thing," he said. "We need housing stability, however that comes."
In extreme cases, homes are on sale for $1 or less, which has enticed investors to Detroit from as far away as the United Kingdom and Australia.
"In the past few months, I've picked up 10 new clients from out of state that are buying in bulk," said Mike Shannon, a suburban Detroit real estate agent. His office specializes in foreclosures in a city that's among the national leaders.
"They're coming to us, saying `Look, I want to buy 50, 100, 1,000.' They want to own every decent and cheap house they can find."
Despite a stagnant retail housing market, real estate sales of foreclosed homes are booming. Shannon regularly fields calls from eager prospects, and recently sold 30 homes in one day to one buyer. A trio of U.K. investors has bought a half-dozen and plans many more.
"I thought it would be quite good fun to have a look," said Darren Veness, who lives near Brighton, England.
Outside buyers are the latest in a long line of landlords taking over the deteriorating housing stock of a city that because of its once mighty auto industry boasted one of the highest owner-occupied housing rates in the U.S. And unlike many large cities, Detroit's single-family homes dominate its landscape, not high-rise apartment buildings.
The outside investors aren't only interested in Detroit, but it's been targeted because of the sheer volume of homes and the fact that values have fallen so much more than elsewhere.
Detroit now has the lowest ownership rate for single-family detached homes of the 20 largest cities in the country, according to data analyzed by longtime Detroit demographer Kurt Metzger.
Even the sale of U.S. Housing and Urban Development homes has been impacted by the poor housing climate in Detroit. The average sales prices of such homes plunged from $46,702 in 2003 to $8,692 last year. Through the first month of 2009, average sales were $6,035.
Still, not all of Detroit's real estate market has bottomed out. Listings include a seven-bedroom, 11,580 square-foot Tudor in Detroit's historic Indian Village neighborhood for $849,900, and a $765,000 penthouse condo in the city's Albert Kahn Building.
What's the effect on a city whose population has plummeted to half its size since the 1950s with no sign of return? The winners might be the renters lucky enough to live in a home that's been fixed up by a legitimate landlord. The losers might be those who end up in less reputable hands.
The stakes could go either way for the landlords arriving in a market that may not have found its bottom. Same for the dwindling number of neighbors who still own their homes — they could benefit from having the vacant home fixed up and occupied but likely will find theirs will fetch a fraction of what they paid or owe.
Novella Willis, a longtime resident of Cruse Street, soon will have her mortgage paid off but she is among those caught in the changing market.
"None of these houses are selling. None of them," she said. "If you go down to the next block you'll see a lot of foreclosures all around here."
The once-stable neighborhood of well-tended brick homes on Detroit's northwest side has some with brick paver driveways and front walks, trimmed bushes and new windows. But foreclosures are creating what Shannon calls "an investors' dream." These are not the infamous $1 homes, but well-built structures falling on hard times that are available for under $10,000.
Willis, a 70-year-old retired court worker, says renters have hurt the neighborhood.
"A couple of houses across the street, they are in-and-out renters," she said. "They don't stay long, maybe three or four months. The renters rarely cut the grass, rarely do the snow. You don't see the owners until people leave the house."
But out-of-town investors have rescued two homes from abandonment.
Anthony Pierson and Henry Suell of Oakland and Wayne counties bought their home for $8,500. It's one of several they bought through HUD, and they expect to rent it within a month after they perform mainly cosmetic repairs.
Pierson, of West Bloomfield Township and Suell, of Harper Woods said the goal is to cover taxes and maintenance through the rent and maybe make some money if property values turn around.
"We just want to invest into it and bring the neighborhood back," Suell said.
Next door, the road to rehabilitation hasn't been as smooth. Days before a tenant was to move in, someone set fire to the home and caused significant interior damage.
"To be fair, with all the publicity and all the scare-mongering that goes with Detroit, we were expecting it to happen a lot sooner," said Veness, whose SVC LLC has so far rented three of the six homes they own.
Veness said he sent 10 e-mails to Detroit-area real estate agents after learning about the city's real estate bargains. He promptly heard back from Shannon, whose firm invited him to Detroit for a tour. Veness came for three days, and he and his colleagues bought their first two homes.
Veness said they have considered other U.S. cities, but so far Detroit is it. For them, it's simple: The homes are cheap and plentiful.
"Do the math, you can buy and rehab a home for $20,000, then rent for $900 a month," he said. "Three to four months of the year, rent is going to pay the taxes."
Rentals typically range from about $800 to $1,000, and many are subsidized by the government.
He rejects the label "absentee landlord," — or at least the image it conveys. He uses local construction and property management companies, and returned last month to take care of business and shop for new properties.
He also takes a long-term view on investing. Besides raising its stake in Detroit, his group plans to buy, fix and sell groups of homes to other U.K. investors.
"We just want to build our portfolio as big as we can," Veness said. "I know Detroit has been in a mess ... and I think now is the time. The next 10 years, it's going to change.
"If my investment still pays for itself, why am I going to leave it?"
City officials say they know numerous outside investors are buying homes because those who want to rent them must contact the Building Safety and Engineering Department. But exact numbers are hard to come by.
"For every call we get, I would guess there are five or six people we never know are out there," Detroit Planning Director Douglass Diggs said.
Diggs said city officials are trying to bring some stability to neighborhoods.
"We try to make sure that the people who are coming in and making an investment in the properties are going to keep them up. We don't want another crisis down the road where we have inferior housing stock."
Still, the tight credit market makes it difficult for many people to secure mortgages.
"We are pushing that individuals do rent-to-own and lease-to-own so people are moving toward home ownership roles," Diggs said.
One out-of-state investor is attempting to do just that. Newport Beach, Calif.-based Michael Alexander has bought more than 150 homes in Detroit and has hired a local property manager to work with renters to eventually purchase some of the homes.
The recent rush offers some experts hope for a housing market with no better options left. Property values drop when homes are rented, but in many cases the alternative is an empty house.
"At times, it's the only way to get the homes occupied," said John Mogk, a Wayne State law school professor.
Detroit began seeing more homes being rented in the mid-1960s as many white homeowners bought homes in the suburbs but kept their property in the city. It accelerated following the 1967 riot, when even more of the city's white residents moved out.
A HUD program affecting more than a quarter of the homes in Detroit allowed purchases with no down payment to borrowers with reduced credit standards.
"At that time Detroit was beginning to lose jobs and unemployment was building up," Mogk said. "Homes began to be abandoned, and then foreclosed on and taken over by HUD and sold en masse to investors.
Metzger said he's skeptical based on the city's history but hopes new efforts succeed where others have failed.
"If indeed these investors are going to ... strengthen the housing stock and really make sure the repairs the homes are stabilized, I think it's a great thing," he said. "We need housing stability, however that comes."
Sunday, March 8, 2009
Reasons to Buy a Home This Year
People are afraid to buy a home in times like these, with the economy tanking and home prices continuing to fall. But if you're brave enough to stray from the herd, you might be in for the home-buying opportunity of a lifetime.
Ask for price reductions, improvements, closing costs—whatever—and the seller, desperately trying to get a contract, is very likely to work with you, said Jay Papasan, one of the authors of the book "Your First Home." When the market starts improving, your negotiating power starts to diminish, he added.
"People can get a lot of what they need and almost all of what they want today," Papasan said. "Once a few people get off the fence, there's safety in numbers and you lose your leverage."
If you're qualified to buy a home now, the purchase makes sense for your situation and you're prepared to live in that home for at least five years, there are reasons why you may be headed for a great deal:
1. Affordability is better than ever.
According to the NATIONAL ASSOCIATION OF REALTORS® (NAR) housing affordability index, homes were more affordable in December than at any other point since the group started the index in 1970. The affordability index is a measure of the relationship between home prices, mortgage interest rates and family income.
John and Julie Chilman, for example, recently have been able to stretch their dollars in the Las Vegas area. The listing price for the five-bedroom home they're buying was $265,000; they offered $250,000.
"Our real estate agent was like 'Yeah, pipe dream. Like they're going to take that,'" John Chilman said. "And all they did was counter $255,000 ... and they're paying all closing costs." The home had lingered on the market, and was listed for $310,000 just six months ago, he said.
In Las Vegas, prices have fallen 50.7 percent from their peak and are now where they were in the second quarter of 2002, according to data from Clear Capital, a real estate valuation and data provider for banks and investment firms.
A report from Moody's Economy.com, released this month, predicted that house prices will stabilize by the end of this year, even though the Case-Shiller house price index will fall another 11 percent from the fourth quarter of 2008. By the end of the real estate downturn, prices will have fallen by double digits, from peak to trough, in almost 62 percent of the nation's 381 metro areas, according to the report. In 10 percent of the areas, declines will be more than 30 percent.
Not all markets have experienced huge drops, however, so it's wise to take a look at how far prices have fallen in your area. The Office of Federal Housing Enterprise Oversight's Web site has a house price calculator that can help at www.ofheo.gov/HPI.aspx.
2. You have a large inventory to choose from.
In many places it is taking months to sell a home, creating loads of inventory—from new homes to existing homes to foreclosures. There was a 12.9-month supply of inventory in December given that month's sales pace, according to NAR.
A large selection gives buyers more choices and drives down prices. And home sellers have gotten the picture.
It's fair to say that home sellers have become "increasingly desperate," Papasan said. "People who have had for-sale signs in the yard for six months are starting to become in tune with the reality of the situation," he said. Buyers can take advantage.
But if you put off a purchase until inventory shrinks substantially, you might not get as good a price, said Eddie Fadel, author of the book "Don't Rent, Buy!" And be forewarned: It's nearly impossible to time the exact bottom of the housing market and even if you do there's no guarantee you'll make a killing.
"You buy for quality of life ... don't buy on speculation," said Duane Andrews, CEO of Clear Capital. "I wouldn't buy a home expecting the housing market to rebound quickly in the next 10 years," he said, adding that he expects moderate gains in values when the turnaround does happen.
Historically, real estate appreciates about 5 percent a year over the long term, said Nancy Flint-Budde, a Salem, N.Y.-based certified financial planner. But as the country crawls out of a recession, many markets probably won't see huge home-price gains any time soon.
3. Builders are offering big discounts.
Homebuilders are getting even more aggressive with their pricing.
In fact, Fadel recommends looking at completed new homes first because builders are offering such steep discounts. Plus, you'd have a warranty not only on the home itself, but also on the home's appliances, he said.
"(Builders) want to save their credit, save their brand, save their reputation and clear out inventory," he said. "They can go buy cheap land today with that cash."
His advice: Walk in with a preapproval for a mortgage, make an offer, then walk away without making a deal if you have to. Chances are, a builder will call back and reconsider that offer rather than let a potential buyer get away.
4. Mortgage rates are historically low.
It's not just the price of the home that will affect affordability; mortgage terms will also affect your monthly payments. These days, rates are very attractive for conforming loans, those that can be purchased by mortgage agencies Fannie Mae and Freddie Mac. (The current limit is $417,000, although that can rise as high as $625,500 in high-cost markets.)
Earlier this year, rates on the popular 30-year fixed-rate mortgage hit a level not seen in decades, and rates have stayed relatively near that low for weeks. For the week of Feb. 5, the 30-year fixed-rate mortgage averaged 5.25 percent, according to Freddie Mac's weekly mortgage survey.
But low rates don't mean lenders are handing out mortgages easily. You'll need good credit, a substantial down payment and a willingness to document your income in order to qualify for those great rates, if you can qualify at all.
5. You can get a federal tax credit.
There's currently a federal credit of up to $7,500 for home buyers who haven't owned a home in at least three years. That extra cash will come in handy: The average first-time home buyer spends about $6,000 in the first six months of owning a home, said Flint-Budde.
Ask for price reductions, improvements, closing costs—whatever—and the seller, desperately trying to get a contract, is very likely to work with you, said Jay Papasan, one of the authors of the book "Your First Home." When the market starts improving, your negotiating power starts to diminish, he added.
"People can get a lot of what they need and almost all of what they want today," Papasan said. "Once a few people get off the fence, there's safety in numbers and you lose your leverage."
If you're qualified to buy a home now, the purchase makes sense for your situation and you're prepared to live in that home for at least five years, there are reasons why you may be headed for a great deal:
1. Affordability is better than ever.
According to the NATIONAL ASSOCIATION OF REALTORS® (NAR) housing affordability index, homes were more affordable in December than at any other point since the group started the index in 1970. The affordability index is a measure of the relationship between home prices, mortgage interest rates and family income.
John and Julie Chilman, for example, recently have been able to stretch their dollars in the Las Vegas area. The listing price for the five-bedroom home they're buying was $265,000; they offered $250,000.
"Our real estate agent was like 'Yeah, pipe dream. Like they're going to take that,'" John Chilman said. "And all they did was counter $255,000 ... and they're paying all closing costs." The home had lingered on the market, and was listed for $310,000 just six months ago, he said.
In Las Vegas, prices have fallen 50.7 percent from their peak and are now where they were in the second quarter of 2002, according to data from Clear Capital, a real estate valuation and data provider for banks and investment firms.
A report from Moody's Economy.com, released this month, predicted that house prices will stabilize by the end of this year, even though the Case-Shiller house price index will fall another 11 percent from the fourth quarter of 2008. By the end of the real estate downturn, prices will have fallen by double digits, from peak to trough, in almost 62 percent of the nation's 381 metro areas, according to the report. In 10 percent of the areas, declines will be more than 30 percent.
Not all markets have experienced huge drops, however, so it's wise to take a look at how far prices have fallen in your area. The Office of Federal Housing Enterprise Oversight's Web site has a house price calculator that can help at www.ofheo.gov/HPI.aspx.
2. You have a large inventory to choose from.
In many places it is taking months to sell a home, creating loads of inventory—from new homes to existing homes to foreclosures. There was a 12.9-month supply of inventory in December given that month's sales pace, according to NAR.
A large selection gives buyers more choices and drives down prices. And home sellers have gotten the picture.
It's fair to say that home sellers have become "increasingly desperate," Papasan said. "People who have had for-sale signs in the yard for six months are starting to become in tune with the reality of the situation," he said. Buyers can take advantage.
But if you put off a purchase until inventory shrinks substantially, you might not get as good a price, said Eddie Fadel, author of the book "Don't Rent, Buy!" And be forewarned: It's nearly impossible to time the exact bottom of the housing market and even if you do there's no guarantee you'll make a killing.
"You buy for quality of life ... don't buy on speculation," said Duane Andrews, CEO of Clear Capital. "I wouldn't buy a home expecting the housing market to rebound quickly in the next 10 years," he said, adding that he expects moderate gains in values when the turnaround does happen.
Historically, real estate appreciates about 5 percent a year over the long term, said Nancy Flint-Budde, a Salem, N.Y.-based certified financial planner. But as the country crawls out of a recession, many markets probably won't see huge home-price gains any time soon.
3. Builders are offering big discounts.
Homebuilders are getting even more aggressive with their pricing.
In fact, Fadel recommends looking at completed new homes first because builders are offering such steep discounts. Plus, you'd have a warranty not only on the home itself, but also on the home's appliances, he said.
"(Builders) want to save their credit, save their brand, save their reputation and clear out inventory," he said. "They can go buy cheap land today with that cash."
His advice: Walk in with a preapproval for a mortgage, make an offer, then walk away without making a deal if you have to. Chances are, a builder will call back and reconsider that offer rather than let a potential buyer get away.
4. Mortgage rates are historically low.
It's not just the price of the home that will affect affordability; mortgage terms will also affect your monthly payments. These days, rates are very attractive for conforming loans, those that can be purchased by mortgage agencies Fannie Mae and Freddie Mac. (The current limit is $417,000, although that can rise as high as $625,500 in high-cost markets.)
Earlier this year, rates on the popular 30-year fixed-rate mortgage hit a level not seen in decades, and rates have stayed relatively near that low for weeks. For the week of Feb. 5, the 30-year fixed-rate mortgage averaged 5.25 percent, according to Freddie Mac's weekly mortgage survey.
But low rates don't mean lenders are handing out mortgages easily. You'll need good credit, a substantial down payment and a willingness to document your income in order to qualify for those great rates, if you can qualify at all.
5. You can get a federal tax credit.
There's currently a federal credit of up to $7,500 for home buyers who haven't owned a home in at least three years. That extra cash will come in handy: The average first-time home buyer spends about $6,000 in the first six months of owning a home, said Flint-Budde.
10 Easy Ways to Boost Property Value
Homeowners play an important part not only in how their home is perceived by prospective buyers, but also its actual appraised value. To help sellers better maximize their profit potential, Robert Jenson, CEO of The Jenson Group at RE/MAX CENTRAL, offers 10 tips for readily increasing a home’s worth:
1. Paint the exterior - A fresh coat of paint can give even a relatively new home a much needed facelift, and can often be done for as low as a few thousand dollars. Select a neutral tone that is consistent with other residences in the neighborhood. Also be sure to pay close attention to eaves, gutters and drains that may also need painting.
2. Complete all needed repairs - To maximize a home’s worth, it should be in good condition both inside and out. Don’t wait until there is an offer on the home. Hire an inspector now, and fix any and all problems, such as roof deficiencies, leaky plumbing and electrical concerns.
3. Purchase a home warranty - Establish peace of mind that comes with knowing a home and its contents are adequately covered in the event of a loss. A transferrable home warranty protection plan can provide added security to the home owner - and buyer - in this regard.
4. Furnish the home to sell - Appeal to the buyer’s emotion. Furnishing a home can go a long ways to getting your home sold, actually increasing the odds of it selling. Give buyers the option to procure the property with or without furnishings, and have a pre-established sale price set for either scenario.
5. Upgrade front yard landscaping - Curb appeal plays a big role more so than people realize. Potential buyers driving the neighborhood may never call on the For Sale sign, if your home doesn’t look appealing from the outside. As well, buyers waiting for their Realtor to show up will often spend a good amount of time critiquing the landscaping while waiting. In addition to purposeful foliage, add landscape lighting and a weather and soil moisture-based landscape irrigation scheduling device to boost value even more.
6. Create a quick kitchen makeover - Kitchens are one of the number one room in the home where you’ll get the most bang for your remodeling buck. Countertops and appliances are the quickest fix, as are faucets, fixtures, door knobs and other easily changed items that can have a large impact on the space.
7. Think spa, not bathroom - The master bath is an important a factor in a home’s worth. Think spa, or private sanctuary, where the master bath is concerned. A space meant to be relaxing, rejuvenating and more. Give buyers something to be excited about with upgraded faucets, fixtures, lighting, cabinetry, mirrors and the like. Then dress it up with plants, candles and other inexpensive, high impact décor.
8. Install soft and hard window treatments - There’s nothing more boring than a plain window. Take advantage of this easy opportunity to give the home’s interior design more impact, while also increasing the home’s actual worth. In addition to “hard” treatments such as blinds and shutters that offer privacy, also add soft treatments hung from decorative fixtures, which can alter the appeal of a room entirely. Look to a professional to ensure the best outcome.
9. Replace carpet rather than just cleaning - Rather than simply steam cleaning old, used carpet, replace it with fresh, neutral-toned carpet with an upgraded pad for an extra luxurious feel. Spending the extra money on new carpet will really make your home stand out from the crowd, in sight, feel and even smell.
10. Don’t overlook your closets - The better organized a closet, the larger it appears and the better it reflects on a home overall. Now is the time to box up those unwanted clothes and shoes and donate them to charity. Then, invest in a closet organization system - either by a professional or self-installed - which will positively impact an appraisal.
Tuesday, March 3, 2009
Stimulus Package Tax Credit
I wanted to give you some more info on the Tax Credit. The info is from the IRS 5405 form (attached below).
So now we have more info on what qualifies & what some differences are between the 2008 Credit Versus the 2009 Credit.
Here are some facts about the 09 Credit (references from IRS 5405 form):
1. First Time Homeowner is still 3 years. It also states if you are MARRIED THAT YOU & YOUR SPOUSE cannot own a home in the past 3 years!!!!!
2. Must live in it.
3. $75,000 individual/$150,000 married income limits for full $8000. Can get partial credit if income is sub $95,000 individual/$170,000 married.
4. Bond Loans are able to get credit now ($7500 did not allow it)
5. Nonresident Alien will not receive credit.
6. Acquired home by gift or inheritance does not qualify
7. Acquired home from a related person does not qualify.
Related person is defined as:
a. spouse, parents, grand parents, children, & grandchildren.
b. own 50% or more of outstanding stock w/ another person.
c. have a partnership business in which you directly or indirectly own 50% of capital interestor profit interests.
8. Credit is $8000 if closed post 1/1/09. Credit is $4000 if married but file separately. Credit max is 10% of purchase price up to $8000. See IRS rules on Modified Adjusted Gross Income.
9. No repayment if:
a. live in home 36 months
b. also please refer to specific info on page 2 of IRS form (Homes purchase in 2009 section) on other situations on no repayment
10. Exceptions to repayment rule (pre 36 mo's):
a. if you sale home to someone you are not related to, the penalty is will be the gain on the sale up to $8000.
b. if home is destroyed, condemned, etc. & you get another home w/in 2 years no repayment.
c. in a divorce, the spouse who receives the home will be responsible for the repayment.
d. if you die repayment is not required. if you have a spouse they will have to repay half of their credit.
11. Form requires date you acquired the home. So must have property prior to getting credit. 12. You can close in 2009 & modify 2008 taxes so you get $$ in 2008.
Again, please note we are NOT a Tax Advisor. Above we itemized some bullet points. So any questions on the Tax Credit Info above HAS to be referred to a licensed CPA or IRS. I am sure more questions/answers will arise from the IRS . As we hear them, we will forward that info as it's received.
Below I have also cut & pasted a article from the IRS on the 2009 Tax Credit.
Expanded Tax Break Available for 2009 First-Time Homeowners
IR-2009-14, Feb. 25, 2009
WASHINGTON — The Internal Revenue Service announced today that taxpayers who qualify for the first-time homebuyer credit and purchase a home this year before Dec. 1 have a special option available for claiming the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.
Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.
“For first-time homebuyers 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. “This important change gives qualifying homebuyers cash they do not have to pay back.”
The IRS has posted a revised version of Form 5405, First-Time Homebuyer Credit, on IRS.gov. The revised form incorporates provisions from the American Recovery and Reinvestment Act of 2009. The instructions to the revised Form 5405 provide additional information on who can and cannot claim the credit, income limitations and repayment of the credit.
This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.
The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.
For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.
The IRS also alerted taxpayers that the new law does not affect people who purchased a home after April 8, 2008, and on or before Dec. 31, 2008. For these taxpayers who are claiming the credit on their 2008 tax returns, the maximum credit remains 10 percent of the purchase price, up to $7,500, or $3,750 for married individuals filing separately. In addition, the credit for these 2008 purchases must be repaid in 15 equal installments over 15 years, beginning with the 2010 tax year.
IR-2009-14, Feb. 25, 2009
WASHINGTON — The Internal Revenue Service announced today that taxpayers who qualify for the first-time homebuyer credit and purchase a home this year before Dec. 1 have a special option available for claiming the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.
Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.
“For first-time homebuyers 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. “This important change gives qualifying homebuyers cash they do not have to pay back.”
The IRS has posted a revised version of Form 5405, First-Time Homebuyer Credit, on IRS.gov. The revised form incorporates provisions from the American Recovery and Reinvestment Act of 2009. The instructions to the revised Form 5405 provide additional information on who can and cannot claim the credit, income limitations and repayment of the credit.
This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.
The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.
For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.
The IRS also alerted taxpayers that the new law does not affect people who purchased a home after April 8, 2008, and on or before Dec. 31, 2008. For these taxpayers who are claiming the credit on their 2008 tax returns, the maximum credit remains 10 percent of the purchase price, up to $7,500, or $3,750 for married individuals filing separately. In addition, the credit for these 2008 purchases must be repaid in 15 equal installments over 15 years, beginning with the 2010 tax year.
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Call, Text or E-mail us at:
Tony Wilson (317)354-7410 tonywilson@callcarpenter.com
Valerie Wilson (317)441-3921 vwilson@callcarpenter.com
or visit www.WilsonRealtors.Net
Thinking about selling and not sure if the time is right?
Visit www.WilsonWorksForYou.com to see what we can do for you!
Thursday, February 26, 2009
C.P. Morgan Is Going Out Of Business
It's true, C.P. Morgan is going out of business! C.P. Morgan was Indiana's leading builder for decades and even they cannot survive this economic downturn.
Calling it one of the most "difficult decisions I've ever had to make," Chuck Morgan, the company's founder and chairman, said in a statement that the collapse of the real estate industry "makes it impossible for us to serve our customers effectively and remain viable."
"This is a sad day for thousands of people across Indiana and the Carolina's. All of the people that were so dedicated to the success of C.P. Morgan have just lost a little more hope that a recovery will happen anytime soon," a contractor from Indiana said, "C.P. Morgan is a company with great people... people of faith. Something good will come from this. We have faith"
"The hardest part of this decision for me has been our associates who have worked tirelessly over the last several months to prevent this from happening," said Morgan. "I'm extremely grateful for their exceptional commitment to our company, which only adds to the sadness I feel about closing our doors."
____________________________________________________________________
As new home sales hit record lows not seen since 1963, we must all wonder what is next? What is over the horizon for us? As the recent stimulus package has yet to stimulate everyday Americans spending habits. Where is the leadership that we as Americans yurn for, to lead us to recovery? Is an $8000 tax credit for first-time home buyers enough to stimulate home sales? I believe a more aggresive approach is what we need to jump-start the economy, like the proposed $15,000 tax credit for all home buyers that was taken out of the stimulus package in Commitee after it was passed by the Senate. I think they missed the boat on this one.
http://www.wilsonworksforyou.com/
Calling it one of the most "difficult decisions I've ever had to make," Chuck Morgan, the company's founder and chairman, said in a statement that the collapse of the real estate industry "makes it impossible for us to serve our customers effectively and remain viable."
"This is a sad day for thousands of people across Indiana and the Carolina's. All of the people that were so dedicated to the success of C.P. Morgan have just lost a little more hope that a recovery will happen anytime soon," a contractor from Indiana said, "C.P. Morgan is a company with great people... people of faith. Something good will come from this. We have faith"
"The hardest part of this decision for me has been our associates who have worked tirelessly over the last several months to prevent this from happening," said Morgan. "I'm extremely grateful for their exceptional commitment to our company, which only adds to the sadness I feel about closing our doors."
____________________________________________________________________
As new home sales hit record lows not seen since 1963, we must all wonder what is next? What is over the horizon for us? As the recent stimulus package has yet to stimulate everyday Americans spending habits. Where is the leadership that we as Americans yurn for, to lead us to recovery? Is an $8000 tax credit for first-time home buyers enough to stimulate home sales? I believe a more aggresive approach is what we need to jump-start the economy, like the proposed $15,000 tax credit for all home buyers that was taken out of the stimulus package in Commitee after it was passed by the Senate. I think they missed the boat on this one.
http://www.wilsonworksforyou.com/
Saturday, February 21, 2009
30-Year Rates Drop to Near 5%
Mortgage rates across the board fell this week, a welcoming sign to potential buyers and home owners looking to refinance.
The 30-year fixed-rate mortgage averaged 5.04 percent this week, a drop from last week's 5.16 percent. Last year at this time, the 30-year rate averaged 6.04 percent, Freddie Mac reports.
Freddie Mac reported the following for other rates for the week:
15-year mortgage rates: averaged 4.68 percent, down from last week's 4.81 percent. Last year at this time: 5.64 percent.
5-year hybrid adjustable-rate mortgages: averaged 5.04 percent this week, a drop from last week's 5.23 percent. Last year at this time: 5.37 percent
1-year ARMs: averaged 4.8 percent, down from last week's 4.94 percent. Last year at this time: 4.98 percent
"Mortgage rates followed bond yields lower this week as recent economic reports suggest the economy is still slowing, which reduces the future threat of inflation," says Frank Nothaft, Freddie Mac's chief economist.
Stay Informed! Subscribe!
Free No-Obligation Consultations Available Anytime!
Call, Text or E-mail us at:
Tony Wilson (317)354-7410 tonywilson@callcarpenter.com
Valerie Wilson (317)441-3921 vwilson@callcarpenter.com
or visit www.WilsonRealtors.Net
Thinking about selling and not sure if the time is right?
Visit www.WilsonWorksForYou.com to see what we can do for you!
The 30-year fixed-rate mortgage averaged 5.04 percent this week, a drop from last week's 5.16 percent. Last year at this time, the 30-year rate averaged 6.04 percent, Freddie Mac reports.
Freddie Mac reported the following for other rates for the week:
15-year mortgage rates: averaged 4.68 percent, down from last week's 4.81 percent. Last year at this time: 5.64 percent.
5-year hybrid adjustable-rate mortgages: averaged 5.04 percent this week, a drop from last week's 5.23 percent. Last year at this time: 5.37 percent
1-year ARMs: averaged 4.8 percent, down from last week's 4.94 percent. Last year at this time: 4.98 percent
"Mortgage rates followed bond yields lower this week as recent economic reports suggest the economy is still slowing, which reduces the future threat of inflation," says Frank Nothaft, Freddie Mac's chief economist.
Stay Informed! Subscribe!
Free No-Obligation Consultations Available Anytime!
Call, Text or E-mail us at:
Tony Wilson (317)354-7410 tonywilson@callcarpenter.com
Valerie Wilson (317)441-3921 vwilson@callcarpenter.com
or visit www.WilsonRealtors.Net
Thinking about selling and not sure if the time is right?
Visit www.WilsonWorksForYou.com to see what we can do for you!
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