Real Estate Industry Heating Up | RISMedia

My wife and I recently attended our once-a-month cruise club cocktail hour, in which we are two of the only working stiffs in the group, as most of the members are retired. Obviously whenever I show up because of my real estate history in this area of the state, the conversation always goes straight to: “What is happening in the real estate market?”

I found myself in a very upbeat, and excited mood and I was raving about the real estate market and what I see happening over the next few years. I was particularly excited, because for the very first time in my entire career, I signed 30 closings in one day the day before the cruise and had in fact signed almost 60 closings that week.

Our business in March was up 31% over February and by April 9th, we had already passed the halfway mark of what we did in March. The real estate industry is heating up and will only continue to heat up. Needless to say I ended up surrounded by several members dying to hear the good news.

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With Affordability Up, Home Buyers Return to the Market

Thanks to record low mortgage rates and declining home prices, 55 million families - or half of all U.S. households - can afford today’s $200,000 median-priced new home, according to figures released by the National Association of Home Builders (NAHB). “That’s an increase of 17 million households from conditions just two years ago and the best housing affordability number we have seen in years,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “We are now seeing the first signs that buyers are returning to the marketplace.”

Based on data from the U.S. Census Bureau comparing home prices, mortgage rates and minimum income needed to purchase a median-priced home in February 2007 and February 2009, a typical family today can purchase a house with $20,000 less in household income and save nearly $500 per month on their principal, interest, taxes and insurance. The number of households that can afford to purchase a home today is 55.4 million, compared with 38.4 million two years ago, according to figures compiled by NAHB.

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First-Time Home Buyer? Choose When to Claim Your Tax Credit | RISMedia

RISMEDIA, April 4, 2009-With the deadline for filing federal tax returns fast approaching, the National Association of Home Builders (NAHB) has made information available for qualified home buyers about how and when to claim the $8,000 first-time home buyer tax credit.

The basic eligibility requirements for the credit are: the home must have been purchased on or after Jan. 1 and before Dec. 1, 2009; the buyer may not have owned a home in the three years prior to the purchase; and the buyer must have a modified adjusted gross income (MAGI) less than $95,000 for single tax payers or $170,000 for married filers.

Two factors affect the amount of credit qualified buyers can claim: it can only be equal to 10% of the purchase price of the home, up to a maximum of $8,000; and it is reduced for buyers with a MAGI between $75,000 for single taxpayers ($150,000 for married filers) and the upper income limit.

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6 Reasons Why It's Still a Good Time to Buy

The housing market is looking healthier. Here are six reasons why now is the time to jump into the market.

1. Uncle Sam is willing to help. First-time buyers (defined as anyone who hasn’t owned a home in the last three years) are entitled to a maximum $8,000 tax credit; interest rates are at record lows; and the Federal Reserve is doing its best to make mortgage loans available. (Sign up for a Webinar to learn more about the home buyer tax credit)

2. People have to live somewhere. About 800,000 new households are formed each year in this country, ensuring that the housing market will tighten, even if the economy doesn’t soar.

3. Borrowers leverage their investment. If you put $10,000 into the stock market and it earns 10 percent, you’ve earned $1,000. If you put $10,000 down on a home and its values increases 10 percent, you’ve made $10,000.

4. When prices come back up, you’ll have instant equity. In parts of the country where foreclosures have driven down prices, better times will mean the price of the home you buy will rise rapidly.

5. Mortgage costs stay the same. If you get a fixed-rate mortgage, the monthly payment stays the same – while everything else, including rent, goes upward.

6. You own it. There is something comforting in the notion that your home is your own. You can paint it any color you want, let the dog run in the back yard and hang a swing for the kids in the front.

Source: The Wall Street Journal, June Fletcher (03/27/2009)

5 Recommendations for Navigating Today’s Mortgage and Housing Markets

”There are five distinct strategies that can help home owners, buyers, and sellers successfully navigate today’s turbulent mortgage and housing markets,” said Gibran Nicholas, chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers.

1. Understand and Utilize the New Tax Credits. Many home owners are not aware that the latest government stimulus package gives them a special tax credit of up to $1,500 for making certain home improvements. Also, if you are buying a primary home and you have not owned a primary residence in the last 3 years, you may qualify for the new $8,000 first-time-homebuyer tax credit. “Although you can’t use the credit to help with your down payment, the credit can be claimed on your 2008 tax returns if you buy the home in 2009,” Nicholas said. “This means that even if you buy the home after you file your taxes on April 15, you can simply file an amended 2008 tax return and the IRS will send you a refund check for $8,000.”

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Pending home sales rise 2.1 percent in February from January

An index that tracks signed contracts to purchase previously occupied homes rose in February from a record low a month earlier as buyers took advantage of deeply discounted prices and low interest rates.

The National Association of Realtors said today said its seasonally adjusted index of pending sales for previously occupied homes rose 2.1 percent — in line with expectations — to 82.1 in February from January's record low of 80.4.

Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer for future home sales.

Because of falling home prices and mortgage rates, homeownership is more affordable than it's been since at least 1970, the trade group said.

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Bidding Wars Over a House? Real Estate Pros See Bottom

One hour outside of Washington DC, in the picturesque small city of Martinsburg, West Virginia, some homes for sale are attracting bidding wars—again.

“Prices are so low, we’re starting to see that," says Marc Savitt, a realtor there for a quarter of a century. “In our area, you’re at the bottom.”

Allan Ferguson California Suburbs

Savitt, who’s also president of the National Association Of Mortgage Brokers, might be accused of being overly optimistic. But he is hardly alone in sensing a long-awaited bottom in the real estate market.

• Slideshow: Highest-End Real Estate
• Slideshow: Most Affordable Metro Areas

For most at this point, it’s less a matter of bold confidence that cautious optimism, but data are emerging to make a reasonable case.

Three categories of home sales—new, existing and pending – all posted surprise gains in February, along with housing starts are posted surprise gains in February.

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78% of First-time Home Buyers Say Now Is Good Time to Buy

Century 21 Real Estate LLC, the franchisor of one of the world’s largest residential real estate sales organizations, announced the results of its recently commissioned first-time home buyer survey. The survey found that more than three-quarters (78%) 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 for the CENTURY 21 First-Time Home Buyer Survey, 68% 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 out of ten first-time home buyers (85%) saying they consider current home prices affordable and 73% 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%) and “waiting for prices to go down before they seriously consider making a purchase” (48%).

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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.

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First-time home buyers moved by tax credit

The first-time home-buyer tax credit may be motivating some to take action and buy a home this spring, according to ZipRealty survey results released this week. Sixty-two percent of first-time buyers said that the $8,000 tax credit is giving them an incentive to buy in 2009.

Of those who weren't motivated by the credit, 29% think it's not enough money to make a difference, 28% didn't think they would qualify and 24% think home prices will continue to decline.

But perhaps not enough is being done to promote the perk, according to some in the home-building industry. In a recent article on "Nation's Building News," a publication of the National Association of Home Builders, one industry executive suggested just that.

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The 2009 First-Time Homebuyer Tax Credit -- Everything You Absolutely MUST Know About IRS Form 5405

As part of the American Recovery and Reinvestment Act of 2009, Congress authorized a first-time homebuyer tax credit of up to $8,000.  The $8,000 credit replaces the $7,500 tax rebate program that was included in last year's stimulus.

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Obama plan aims to help 'responsible' homeowners

The Obama administration's plan for a housing rescue aids two groups of homeowners largely left out of previous efforts and aims to deny benefits to those who have been unwise or greedy, according to details released Wednesday.

The plan would greatly expand mortgage relief to those who have not missed payments and those whose homes are worth less than their mortgages.

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Home buyers in California can enjoy up to $18,000 in tax credits

It's getting more rewarding to be a home buyer.

There's the $8,000 federal tax credit for first-time home buyers. And now California has upped the ante, offering a tax credit worth up to $10,000 to any home buyer, first time or not, of any income level, who buys a home between March 1, 2009 and March 1, 2010.

There's just one hitch: You have to buy a newly-constructed home that's never been lived in.

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What are the Stimulus Plan and TARP II going to mean for the housing and mortgage markets?

While I could write for a LONG time about it, I’m going to limit it to what I feel are the top 6 things that I think could very well happen.   Keep in mind, this is being written after watching President Obama’s press conference but before anything gets passed.

1. The market is expecting that both the Stimulus Plan and TARP II will provide “the answer” to the problems that are currently plaguing our economy.   With that being said, I believe the markets will be disappointed because the problems facing the economy are way more complex and urgent than what one or two bills can solve.   The disappointment will put downward pressure on stocks and upward pressure on rates.

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