Happy House Hunting

An unexpected super surge in sales in March 2010 has many of us in the industry, and many buyers and sellers jumping for joy. As consumer confidence continues to rise, buyers and sellers continue to become more adapted to the current market, and real estate professionals continue to exude professionalism in our continually correcting market, real estate sales are abounding in a positive and promising way.

According to Lawrence Yun, NAR chief economist, it is positively promising to see an expansive home sales rebound in nearly every corner of America. This rebound has two resounding trends: “Sales have been above year-ago levels for nine straight months, and inventory has trended down from year-ago levels for 20 months running,” he said. “The home buyer tax credit has been a resounding success as these underlying trends point to a broad stabilization in home prices. This is preserving perhaps $1 trillion in largely middle class housing wealth that may have been wiped out without the housing stimulus measure.”

This spring time sales surge has birds singing in the Real Estate industry, but behind the sunshine there is a cloud looming. What happens after the tax credit ends? According to NAR Chief Economist Yun:

“With home values stabilizing, a revival in home buying confidence will likely help the housing market get back on its feet even as the tax credit impact disappears,” Yun said.

With any luck, this statement will resonate to be true, and every home owner in even the farthest reaching corners of America will breathe a heavy sigh of relief. When looking at each region of America, the correction is resoundingly positive and numbers across the board have increased, even if only nominally. Here in the South, existing-home sales showed an increase of 7.1% for an annual level of 1.97 million in March 2010 and are 13.9% higher than in 2009. The median home value was $154,800, up 5.2% from March 2009.

With 4 days left to get contracted and benefit from the Home Buyer Tax Credit, I am gearing up for a busy week. If anyone needs help buying or selling, or just needs some positive words of wisdom about real estate...feel free to call me:)

Happy House Hunting!!!

10,9,8,7,6,5,4,3,2,1...

The First Time Home Buyer Tax Credit:

As the tax credit winds down, we are seeing many people who have not yet committed to a property scrambling to get in under the First Time Home Buyer's Tax Credit deadline. The tax credit is part of the Worker, Homeownership, Business Assistance Act of 2009.

As it stands, the tax credit of $8000 for 1st time home buyers, and $6500 for existing home owners who meet certain guidelines, is set to end on April 30, 2010. In order to receive the credit, there must be a binding contract in place on a property by April 30, and it must be closed on or before June 30.

In order to qualify, a "first time home buyer" must be a person who has never owned a home OR who hasn't had an interest in a principal residence in the last 3 years, the home that is being purchased must be the purchaser's principal residence, and there are certain income guidelines that must be met.

A survey of more than 1,500 sales agents by Campbell/Inside Mortgage Finance found a record 48.2 percent of home purchases were first-time home buyers in March. This is an almost 2% increase of over even last October (46.9%), when the original Tax Credit incentive was set to expire in November 2009. This recent almost 50% share of market activity by first time home buyers sets a record. And it's a record that will trickle up to affect the other price points, markets, and demographics that comprise the modern Real Estate landscape.

The Extension and Expansion of the Tax Credit:

In November of 2009 the Tax Credit was extended, and expanded to encompass and benefit a broader range of home buyers and owners...

In order for a purchaser to qualify for the expanded tax credit designed for home owners who are selling in the current marketplace, there are also income guidelines, and the home being sold must have been consecutively used for 5 of the last 8 years as the seller's primary residence.

This expanded aspect of the tax credit will benefit those whose home may be being purchased by the first time home owners, those who are moving move up, as well as those who may be downsizing. Essentially, if a person has had a significant amount of time in their current home, there is tremendous potential to not only make a profit on the sell, but also get that added incentive, thus creating a balanced and thriving market in varied price points, and driving more money into the economy. It's a win/win:)

With 10 days left and counting, I have seen an increase in showings, calls, and activity across the board. Looks like I'm not the only procrastinator I know. LOL! The beauty of procrastination in this case is that the winding down of the tax credit in conjunction with the Spring boost in sales, is making for an uplifting and promising selling season! With consumer confidence raised, and happy buyers and sellers, we are currently looking at a correcting market on the upswing:)

Humpty Dumpty Needs A Good Fall

We are all guilty of alittle fence riding. Be it a car, a house, or any other major purchase, all of us can be well, indecisive.

However, now more than ever the Humpty Dumpty inside us all needs to face plant off of that wall on one side or another, and the most savvy of savvy will land on the side of the wall/fence that means making a home purchase.

Record low rates, record low prices, record high inventory, record breaking incentives and tax breaks, and a motivation level that's through the roof make this the best time imaginable to get off the fence and buy a house. And, it is our job as Real Estate agents, to help push you over the fence:) Not just because it's our livelihood for now, but because making a choice to purchase a home right now could be not only the best time to buy into the American dream, but a cornerstone in a person's wealth building strategy. Which means that you will love us for helping you make the leap, and we will continue to build a relationship with you for years to come, continue to do more business with you, and build a mutually beneficial relationship...which is a win/win for everyone involved:)

By and large, the biggest argument that I hear from my first time home buyers who are teetering on the edge of homeownership but are too timid to make the leap is the fear that homeownership comes with a huge price tag above and beyond the mortgage payment (i.e. maintenance and upkeep). Also, I hear people saying that they'd like to be debt-free otherwise before committing to such a large debt. Well. Here are my soapboxes on both of those arguments (and yes, I will recite them while helping you to the other side of the fence) lol:

You are not debt-free right now, but you have to pay rent to live somewhere. That rent could possibly be more than what you would pay to own. Living expenses for shelter are unavoidable no matter what other financial commitments you have (unless you are living with a relative rent free. This argument doesn't go so far if that is the case). LOL!

Making a commitment to a 15 or 30 year debt for a house can be quite daunting. However, when looking at every incentive, and all of the other positive identifiers in the market right now, it makes the possibility of renting a more daunting alternative. Even with the added expense of taxes, PMI, and home owner's insurance, with interest rates and incentives, the cost of ownership is so low, that an interest bearing savings account where one deposits the money saved per month from renting could go a long way for a person's comfort level when dealing with the "what if this breaks" fear... Not to mention that if you qualify for the First Time Home Buyer Tax Credit, you have the potential of an $8000.00 nest egg right off of the bat. And you are building an equitable return on your money when you pay for your living expenses every month pertaining to your home.

As the deadline for the First Time Home Buyer Tax Credit looms, I find more and more people trying to make a commitment to become a homeowner. The time is now. Sieze the day. Take the leap. You won't regret it :)

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