Senate Clears Homebuyer Tax Credit Extension; MayPass
as Early as This Week
By Steve Cook and Brett Arends
RISMEDIA,
November 5, 2009—After two weeks of delay, the Senate cleared the way to pass a
seven month extension and expansion of the tax credit for homebuyers. By an 85
to 2 roll call vote, the Senate voted to cut off debate on a package of
measures that includes the homebuyer credit, making it virtually certain that
the legislation will reach President Obama for his signature this week.
The
homebuyer tax credit, due to expire at the end of November would be
extended through April 30 of next year. First-time buyers who are in the
process of making a purchase would not need to worry about qualifying for the
$8,000 credit if they close after the November 30 deadline.
U.S. Home Prices for August 2009 Off 11.3% from Year Ago
Wednesday, 28 October 2009
RISMEDIA,
October 28, 2009—Data through August 2009, released by Standard & Poor’s
for its S&P/Case-Shiller Home Price Indices, one of the leading measures of
U.S. home prices, show that the annual rate of decline of the 10-City and
20-City Composites improved compared to last month’s reading. This marks
approximately seven months of improved readings in these statistics, beginning
in early 2009. The annual returns of the 10-City and 20-City Composite Home
Price Indices, declined 10.6% and 11.3%, respectively, in August compared to
the same month last year. Nineteen of the 20 metro areas and both Composites
showed an improvement in the annual rates of decline with August’s readings
compared to July. Cleveland was the only exception.
What You Need to Know About Buying an Urban Property
Tuesday, 27 October 2009
Dear Client and Friends,
In our ongoing effort to
educate our community about today’s relevant real estate topics, we are sending
you this Top 5 Real Estate Social Networking System® “e-Article”.If you find the enclosed information beneficial
to your family and friends, we encourage you to forward it to your “social
network" as well.Please give us
your feedback, which is very important to us.
What You Need to Know About Buying an Urban
Property
Whether it’s a waterfront condo or a downtown brownstone, multi-family
dwellings like condos and lofts are gaining appeal for those considering
downsizing, buying a second or vacation home, or desiring a shorter commute to
work. As Members of the Top 5 in Real Estate Network®, we are often asked for our
advice on the best way to go about choosing and buying an urban home. Here are
some great tips we’d like to share from Frontdoor.com:
1. Consider co-ops.
In many high-priced cities, like New York, Chicago [and Fort Lee],
cooperatives (co-ops) are the easiest way to break into homeownership. About
80% of the housing stock in Manhattan,
for example, is co-ops. Co-ops, however, all have different financial
standards. It's important to be up front with your real estate agent so they
know what you're qualified to buy.
If you don't have the cash to make a 20 – 25% down payment, some co-ops will
allow you to use gift money, while others will not.
Also, some co-ops require that you have a certain amount of cash reserves after
the purchase—sometimes equal to the purchase price. Putting all your financial
information on the table can help your agent find a co-op that's perfect for
you.
2. Explore emerging
neighborhoods.
You might be able to get a deal on an urban property in an up-and-coming area,
but make sure the area is well on the upswing before you buy. An emerging
neighborhood can take several years to redevelop. To make sure it's a good time
to buy, investigate the area—see what stores, restaurants or cultural
establishments have recently opened or are planning to open in the area. These
are always good indicators of neighborhoods on the rise.
3. Investigate a
potential building's financial condition.
When you buy a condo, loft or co-op, you're not just buying a property—you're
also buying into the building or community. HOAs (Home Owner Associations)
govern condo communities, collecting dues and maintaining the common areas. A
board of directors takes care of these tasks in a cooperative.
Hire an attorney to research the association's financial stability and its
rules before you sign on the dotted line. Your attorney should look at the
corporation's yearly financial statements to see how much money it has on hand.
If a building doesn't have a large reserve, they can charge a special assessment
fee to cover a big repair. These fees are typically announced fairly far in
advance (a year or more is normal), so your attorney should also read the
minutes of corporation meetings to see if any fees have been proposed.
You can also do some of your own investigating. Don't forget to find out about
the surrounding buildings and their construction plans as well. You don't want
to buy a home overlooking the water, then find out the week you move in that
someone is building something taller that blocks your view.
4. Don't plan to buy a
co-op as an investment property.
Multi-family homes can be great investment properties, but co-ops have very
restrictive rules about renting. While condos are typically much more lenient
about rentals, be sure to check the property's covenants, conditions and
restrictions (CC&Rs) to make sure you're allowed to lease it to a tenant.
For many, today’s marketplace represents a great opportunity to buy an urban
dwelling that may have been out of reach in years past. If you would like more
information on purchasing urban properties, especially on the Hudson River Gold
Coast, please e-mail
us—and please feel free to forward these tips to members of your social
network who might also find it beneficial.Thanks.
Sincerely,
Lois and John
Lois Feinand John Schwartz
Prominent Properties Sotheby's International Realty
Top 5 in Real Estate Member
Existing-home
sales bounced back strongly in September with first-time buyers driving much of
the activity, marking five gains in the past six months, according to the National
Association of REALTORS®.
Existing-home sales—including
single-family, townhomes, condominiums, and co-ops—jumped 9.4 percent to a seasonally
adjusted annual rate of 5.57 million units in September from a level of 5.10
million in August, and are 9.2 percent higher than the 5.10 million-unit pace
in September 2008. Sales activity is at the highest level in more than two
years, since it hit 5.73 million in July 2007.
Lawrence Yun, NAR chief
economist, said favorable conditions matched with a tax credit are boosting
home sales. “Much of the momentum is from people responding to the first-time
buyer tax credit, which is freeing many sellers to make a trade and buy another
home,” he said. “We are hopeful the tax credit will be extended and possibly
expanded to more buyers, at least through the middle of next year, because the
rising sales momentum needs to continue for a few additional quarters until we
reach a point of a self-sustaining recovery.”
Even
with the improvement, Yun said the market is underperforming. “Despite
spectacular gains in the stock market, principally from the financial sector
recovery, most of the 75 million home-owning families have more wealth tied to
their homes. Home values could soon turn consistently positive and help the
broad base of middle-class families, but we are not there yet,” he said.
Conditions
for First-Time Buyers Early
information from a large annual consumer study to be released on Nov. 13, the
2009 National Association of REALTORS® Profile of Home Buyers and Sellers ,shows
that first-time home buyers accounted for more than 45 percent of home sales
during the past year. A separate practitioner survey shows that distressed
homes accounted for 29 percent of transactions in September.
NAR
President Charles McMillan said affordability
conditions remain historically high. “Potential first-time buyers can take
heart in that affordability conditions this year are the highest on record
dating back to 1970, but with the first-time buyer tax credit scheduled to
expire at the end of next month, people could hold back from entering the
market,” he said. “Our read is that housing overshot on the downside because
homes are selling for less than replacement construction costs in much of the
country, and the home price-to-income ratio has fallen below the historical
average.”
Inventory
Falls Total
housing inventory at the end of September fell 7.5 percent to 3.63 million existing
homes available for sale, which represents an 7.8-month supply at the current
sales pace, down from an 9.3-month supply in August. Unsold inventory totals
are 15.0 percent below a year ago.
“The
current housing supply is the lowest we’ve seen in two and a half years,” Yun
said. “If we could continue to absorb inventory at this pace, home prices would
return to normal, modest appreciation patterns next year.”
According
to Freddie Mac, the national average commitment rate for a 30-year,
conventional, fixed-rate mortgage fell to 5.06 percent in September from 5.19
percent in August; the rate was 6.04 percent in September 2008.
Home
Sales Breakdown The national
median existing-home price for all housing types was $174,900 in September,
which is 8.5 percent lower than September 2008. Distressed properties continue
to downwardly distort the median price because they generally sell at a
discount relative to traditional homes in the same area.
Single-family
home sales rose 9.4 percent to a seasonally adjusted annual rate of 4.89
million in September from a pace of 4.47 million in August, and are 7.7 percent
above the 4.54 million-unit level in September 2008. The median existing
single-family home price was $174,900 in September, which is 8.1 percent below
a year ago.
Existing
condominium and co-op sales jumped 9.7 percent to a seasonally adjusted annual
rate of 680,000 units in September from 620,000 in August, and are 9.7 percent
above the 561,000-unit pace a year ago. The median existing condo price was
$175,100 in September, down 11.7 percent from September 2008.
Here’s
the region-by-region picture:
Northeast: Existing-home
sales increased 4.4 percent to an annual level of 950,000 in September,
and are 11.8 percent higher than September 2008. The median price was
$234,700, down 7.0 percent from a year ago.
Midwest: Existing-home
sales jumped 9.6 percent in September to a pace of 1.25 million and are
7.8 percent above a year ago. The median price was $147,600, which is 1.0
percent below September 2008.
South: Existing-home
sales rose 9.0 percent to an annual level of 2.06 million in September and
are 10.8 percent higher than September 2008. The median price was
$153,500, down 7.6 percent from a year ago.
West: Existing-home
sales surged 13.0 percent to an annual rate of 1.30 million in September
and are 5.7 percent above a year ago. The median price in the West was
$219,000, which is 15.0 percent below September 2008.
How Short Sales Affect Our Community and Your Home
Monday, 18 May 2009
As a leader in real estate, I am repeatedly asked specific questions about today's market - especially in today's economy. In an effort to provide more information to my community, I am sending you this Top 5 in Real Estate Social Networking Systemsm “e-Article,” in which I provide useful real estate information to my real estate networks. If you find the enclosed information beneficial to your family and friends, I encourage you to forward it to your “social network" as well.
How Short Sales Affect Our Community…and Your Home
Whether you are on easy street, just keeping up with the Jones' or withdrawing savings to stay current, an understanding of real estate short sales and how they affect the value of all homes within our community is becoming more and more important. Hardly a day goes by without at least one person asking me about the implications of short sales—either in terms of how it affects them as a home seller, or what it means to them as a buyer looking for a great opportunity.
For that reason, I have decided to proactively communicate some basic information about short sales as well as provide everyone with access to The Four R's of Short Sales, a publication offered by the Top 5 in Real Estate Network®, of which I am a member.
Accounts of distressed, or so called "under water" properties, seem to be a daily occurrence. The term "under water" was coined to describe the condition of the outstanding balance of a mortgage exceeding the market value of the home. If a property is under water but the homeowner is current with their mortgage, the situation is of less consequence. If a homeowner stops paying their mortgage, however, lenders have little option but to act. This can result in the forced sale of the property.
When a mortgage lender enables the sale of a property for an amount less than the mortgage balance, this is a "short sale." The problem is, the lower prices that short sales generally command on the market can negatively affect the value of other properties in our community…including yours and mine!
This is why I believe that greater transparency is needed in order to fully understand short sales.
Homeowners facing financial challenges need to have a better understanding of their many, and in some cases better, alternatives. Moreover, all parties involved in a short sale will benefit from knowing the perspective and motivation of the other participants associated with the transaction.
To that end, as a Top 5 in Real Estate Network® member, I am pleased to offer a complementary copy of our recently published and ground breaking publication,The Four R's of Short Sales, to anyone who is interested in receiving comprehensive information regarding short sales or distressed properties in general. The Four R's of Short Sales addresses how:
• Home sellers can recover
• Lenders can aim to recoup
• Buyers can benefit, and how
• Real estate related professionals can render the best services
If you know anyone facing mortgage related financial challenges, please feel free to have them contact me for a copy of The Four R's of Short Sales or simply forward this email to them. This information is vital and I will provide it free of charge and with absolutely no obligation.
For those thinking of buying real estate, it is important to fully understand the opportunity and the financial return that a short sale-related property purchase can represent...as well as the pitfalls. All of this is covered in The Four R's of Short Sales.
I am making this information available with the intent that this very delicate and highly personal issue should be addressed with great sensitivity and care. Even though the subject of distressed properties, either directly or indirectly, impacts every homeowner in North America, I respectfully suggest that you only make this information available to those whom you believe would appreciate receiving it from you. Please remember, whether it be a short sale related issue or anything to do with real estate, please feel free to contact me. Please also feel free to forward this article to family, friends and colleagues who might benefit from this important foreclosure information.
If you are a buyer or seller under contract with a broker or agent please disregard this information.
Sincerely,
Lois
LoisFein
Prominent Properties Sothebys International Realty
Top 5 in Real Estate Member lois.fein@sothebysrealty.com
www.loisandjohn.com
Real Estate Insights for April
Friday, 24 April 2009
As part of our ongoing effort to keep our clients up to date, please read the following article from the National Association of Realtors. It is about Second and Vacation Home Purchases in today's real estate market. As with other properties today, inventory is high and buyers have a great opportunity to buy second home properties at greatly reduced prices.
If you are interested in any buying opportunities in New Jersey, New York, any where else in the U.S. or overseas, contact either John or me immediately.
Spring Selling Season – Tips for Better Curb Appeal
Friday, 24 April 2009
With the spring selling season
just around the corner, many homeowners are looking to prep their
home for a smooth real estate sale. According to experts, one of the
best places to start could be the backyard. A recent Gallup survey of
home buyers revealed that a well-tuned and professional outdoors can
add nearly 15% to a home’s selling price. What’s more, according
to the Society of Real Estate Appraisers, 95% of Realtors concur that
landscaping adds to the dollar value of real estate.
According
to Chris Cipriano, a nationally-known luxury landscaping expert,
investing just 5% of the value your home on landscaping can return
150% or more of the money invested. First, however, homeowners must
know which enhancements can ensure maximum return, he says.
“It
starts with cleaning,” says Cipriano. “After a simple cleanup,
you can move on to more extravagant planting and repairs so that you
create the feeling that someone belongs and the perspective homeowner
can envision moving in without having to do anything to the outside
of the home.”
Real
estate professionals agree that getting people in the door is
critical to a home visit. “If they don’t like what they see
outside, they won’t want to go inside,” says Cipriano. “So
you’ll need to showcase your yard for the times in which home
buyers will view the home.”
For
daytime prospective home buyers, Cipriano suggests showcasing color
throughout the yard, while during the evening, he suggests lighting
up the property.
“This
way,” he says. “People can still stop by and look to see the
features of the home, regardless of the time of day.”
Next,
Cipriano suggests taking a good look at the hardscapes within your
landscaping. Hardscapes, or the solid, non-plant fixtures within the
yard, include walkways, gates and fences, patios, decks, etc. A
common cost-effective material for hardscapes is concrete, however,
Cipriano recommends natural stone, especially when it comes to
walkways.
In
addition to keeping your walkways tidy at all times, Cipriano says
that, “Natural stone has great return on investment (ROI) for
walkways. It’s made for longevity and it gives a clean look—far
greater than any other paver.”
Once
you’ve taken a good look at your hardscapes, the next place to
increase your ROI is the tree and shrub choices within your
yard.
“These,
too, are a great investment because as they grow, they increase in
value,” says Cipriano.
The
best and easiest fix for homeowners looking to sell this season is
annuals. With a minimum investment, Cipriano says, you can have
show-stopping color throughout the entire spring and summer seasons.
If
your yard includes full sun, Cipriano recommends using simple, large
masses of color from annuals such as petunias. On the other hand, if
you have more shade, impatients and other tropical looking plants are
a great option.
“I
would also suggest mixing in perennials,” says Cipriano. “They’ll
help fill in any open areas. You will want to pick summer flowering
perennials such as black-eye Susans or salvias so that at the end of
summer you get a big push of color.
While
adding color is a great way to attract potential home buyers,
Cipriano cautions homeowners from going overboard. “Depending on
your landscape theme, you don’t want to add too many colors, so
stick to larger masses,” he says.
What’s
more, if you’re looking to spruce up your front yard specifically,
Cipriano says that there are ways to make the most of this smaller
space.
“In
this case you would just use smaller groups but still add the color,”
he says. “You can do this by including flower pots in your
landscaping to highlight the front door and keep it interesting. If
you’re adding color to your walkways, also light them up in the
evenings.”
Homeowners
who take the time and effort to make their landscaping more appealing
to home buyers are helping to get their home sold in a more
reasonable time frame.
“The
ROI can be anywhere from not having to make double mortgage payments
over the next few months, saving time, or even getting the asking
price in a more competitive market,” says Ciprianio. “Ultimately,
keeping a great garden will keep your home fresh and help get the
home off the market as fast as possible.”
As Modified in the American Recovery and Reinvestment Act - February 2009
FEATURE
DESCRIPTION
Amount of Credit
$8,000.
Eligible Property
All principal residences eligible.
Refundable
Purchasers receive refund for unused amount when tax return is filed.
Income Limit
Full amount of credit available for individuals with Adjusted Gross Income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000).
First-Time Homebuyer Only
Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.
Revenue Bond Financing
Purchasers who utilize revenue bond financing can use credit.
Repayment
No repayment for purchases on or after January 1, 2009 and before December 1, 2009.
Recapture
If home is sold within 3 years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
Termination
December 1, 2009.
Effective Date
All revisions are effective as of January 1, 2009.
Note: Always check with your attorney and/or mortgage broker to verify the above.
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