|
Jennifer's Blog
My E-Newsletter for February explains the
advantages of "Investing in Cool This Winter."
View a copy here
|
|
|
The homebuying season is starting early this year, thanks to the expanded first-time and move-up homebuyer tax credit.
Typically, the busiest time for home shopping starts in March and continues through May, but this year buyers who want to take advantage of the tax credits have to hold a signed contract by April 30 and close the deal by June 30.
That is getting people off the couch.
"The tax credit will absolutely have an effect," says Pete Flint, CEO of residential real estate search engine Trulia.com. "It is going to shift demand from the later part of the year to the first part. January and February will be very strong. The next three months, there will be a surge in demand."
Source: USA Today, Stephanie Armour (01/20/2010)
|
|
|
The Federal Housing Administration will raise the minimum down payment for its least credit-worthy borrowers, the agency announced Tuesday.
The change is among a number of major changes the FHA is making to ensure its long-term financial soundness.
Borrowers with credit-rating scores below 580 will be required to put down at least 10 percent. Those with a credit score above 580 will be able to continue to put down only 3.5 percent. The changes are intended to shore up the agency's finances.
The FHA also will increase its upfront mortgage insurance premium from 1.75 percent to 2.25 percent. The agency is expected to seek congressional approval to raise annual mortgage insurance premiums, paid by borrowers over the life of the loan, above the current 0.55 percent maximum. The amount it will seek has yet to be announced.
For more information on the FHA changes, inlcuding a summary of all changes, visit REALTOR.org.
Source: Reuters News, Corbett B. Daly (01/19/2010)
|
|
|
10 Big-Impact, Low-Cost Remodeling Projects
~ Budget-minded enhancements to make your home stand out ~
|
|
|
|
On January 5 the Northwest Multiple Listing Service reported that pending sales in December 2009 were up more than 35% from a year ago and marked the best December since 2006!
Shrinking inventory, the extension of the first-time home buyer tax credit, and favorable interest rates are among the factors that brokers believe will sustain activity. For the four-county Puget Sound region, the number of active listings is down more than 18%. For single family homes (excluding condominiums), last month's median sales price was $273,000. Twelve months ago it was $290,000, a difference of about 5.9%. Condo prices have dropped about 14.6%, from $263,475 to last month's figure of $225,000.
|
|
|
|
Sellers who get more than one offer should be aware that the highest offer isnt necessarily the best offer, say experienced practitioners.
In this tough market, going with the buyer who has enough cash to pay a large down payment and who wont be scared away if the inspection uncovers some needed repairs is often the wise choice.
Practitioners should encourage sellers to review all the terms and conditions of the sales contract. In some areas, the allocation of fees can take a big bite out of the net proceeds. While most contracts are written to reflect that, it isnt always the case.
Also, the closing date in the offer should be considered carefully. A buyer who can close quickly can save a seller thousands. Offers contingent on the sale of another property are particularly suspect in this market.
Source: Inman News, Dian Hymer (12/28/2009)
|
|
|
Applying for a mortgage modification and being in a months-long trial period can devastate a home owners credit score.
Under the government plan, troubled borrowers can have their mortgage payments reduced to 31 percent of their pre-tax income. They are first put in a trial modification for several months to test whether they can meet the requirements of the new mortgage.
Borrowers who were previously current on their mortgages will see their FICO scores fall about 100 points while they are in the trial period, according to the Treasury Department. Borrowers who were previously late or missed payments will see their scores fall more, the government says.
The longer a borrower is in the trial period, the greater the impact on their credit scores, Once the modification is approved, the borrowers mortgage credit status will be listed as current and that should improve their scores, the Mortgage Bankers Association explains.
Even so, the delinquency remains on credit reports for up to seven years and can make getting credit for something else like a car difficult and expensive, borrowers report.
Source: CNNMoney.com, Tami Luhby (12/28/2009)
|
|
|
Fewer Americans moved in 2009 than any other year this decade, the U.S. Census Bureau reported this month.
Population also grew less this year than any other year since the turn of the 21st Century. It reached 307 million on July 1, up less than 1 percent from a year earlier, the bureau says. About 850,000 people immigrated from other countries, down 15 percent compared to 2006.
The losers in this trend included Florida, which lost 31,000 people to other states, a first for the Sunshine State, which used to be No. 1 in attracting new residents. "The middle of the decade's huge surge to the Sun Belt stopped on a dime," says demographer William Frey of the Brookings Institution.
Demographers say real estate is one of the big reasons people are staying put. "People are trapped," says Yi Zhao, senior forecasting coordinator for the Census Bureau in the State of Washington. "They can't sell their house or they have a hard time getting credit for a new one."
Source: USA Today, Dennis Cauchon and Paul Overberg (12/23/2009)
|
|
|
The new $6,500 move-up Homebuyer Tax Credit is apparently motivating buyers, according to a Campbell Communications survey of 1,500 real estate practitioners.
Existing home owners accounted for 41 percent of home purchases in November, up from 38 percent in October, the survey found.
Current home owners jumped at the credit, says survey research director Thomas Popik.
Source: Housing Wire, Austin Kilgore (12/22/2009)
|
|
|
|
Home prices in 45 of the largest housing markets are expected to fall another 4.2 percent before they hit bottom in March, according to First American CoreLogics LoanPerformance Home Price Index.
By October 2010, prices are expected to be heading upward again by about 1 percent compared to 2009.
The report warned that this progress could be jeopardized by an increasingly large shadow inventory of homes owned by banks but not yet on the market. The problem is particularly acute in Michigan and Ohio cities, the report said. It projected a 12.7 percent further decline in values in Detroit, an 11.4 percent decline in most of the rest of southeast Michigan, and a 6.3 percent fall in Cleveland.
The report expects the strongest recoveries next year in California cities. These include: - San Francisco, up 5.7 percent
- Los Angeles, 5 percent
- San Diego, 4.7 percent
- Sacramento, 4.6 percent
Source: Inman News (12/21/2009)
|
|
|
|
|
|
253-630-1828
is a service mark of The Prudential Insurance Company of America.
Equal Housing Opportunity.