Tuesday, September 15, 2009
Extend the Homebuyer tax credit!
I've included a sample letter that Realtors are being urged to write and send to our congressmen. As a future home buyer, I see no harm in writing a letter on any of your behalves also.
Send a letter to the following decision maker(s):
Your Congressperson
Your Senators
Below is the sample letter:
Subject: Homebuyer Tax Credit: Extend and Expand
Dear [decision maker name automatically inserted here],
As a Realtor and a constituent, I can assure you that the $8,000 first-time homebuyer tax credit has definitely been a success. Homebuyer interest and housing sales increased almost as soon as the ink was dry on the tax credit legislation. Today's lower prices and interest rates appeal to consumers, but it's been the tax credit that has attracted people to open houses and to homeownership.
That progress could grind to a halt sooner than you think. Congress must act NOW to extend the credit through 2010. Otherwise, uncertainty will return and the market might again be frozen -- possibly as soon as October.
A homebuyer is eligible for the tax credit only if the home is "purchased" before December 1, 2009. That means that buyers have to find a house, complete a contract, satisfy any contingencies, secure financing and go to closing by November 30. Accomplishing those tasks by November 30 will become more difficult with every passing day. In today's market, it generally takes between 45 and 60 days to go from contract to closing.
The market has improved, but it has not yet fully corrected itself. The credit needs to be extended for an additional period of time and expanded in order to build upon the progress that's been made. Uncertainty about the future of the credit will dampen consumer demand. The best way to assure continued housing activity is to extend and expand the credit and to do that NOW.
We can't wait until late in the year to see what happens. Consumers will drop out soon if they can't predict what's in their future. Please act NOW to extend and expand the credit through 2010.
Sincerely,
Chelsea Schilling
Thursday, September 10, 2009
This week’s C.A.R. Mortgage Update contains information about down payments; the Obama
administration’s Making Home Affordable program; concerns about the viability of the Federal Housing
Administration; and low interest rates keeping homes affordable
A Down Payment Anomaly
Despite home buyers being advised to issue down payments of at least 20 percent, many home buyers are
finding that smaller down payments result in better interest rates—but also higher payments.
Rules put in place in late 2008 by Fannie Mae and similar rules adopted by Freddie Mac are less favorable
to borrowers who put down 20 percent to 25 percent--partially because the GSEs consider these borrowers
to be more of a credit risk since they are not required to purchase private mortgage insurance.
According to Fannie Mae, borrowers benefit from this industry practice because they are able to leave
themselves a financial cushion by not issuing larger down payments, and can instead save the extra money
for emergencies.
It is important to note though that smaller down payments mean higher monthly payments because the loan
itself will be larger.
To read the full story, please click here:
http://www.nytimes.com/2009/09/06/realestate/06mort.html?ref=realestate
To view additional articles please visit the following:
Obama’s mortgage relief program growing
The Obama administration’s $50 billion mortgage relief program is finally picking up speed after a sluggish
and disappointing start: Nearly one in five eligible homeowners has been offered help so far, the Treasury
Dept. said Wednesday.
To read the full story, please click here:
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/09/09/financial/f073010D13.DTL&type=business
Behind FHA Strains, a Push to Lift Housing
As it tried to help shore up the ailing housing market during the past year, the Federal Housing
Administration increased its exposure, particularly to mortgages in high-cost states that have also seen
some of the sharpest price declines.
To read the full story, please click here:
http://online.wsj.com/article/SB125211204270688031.html
Low rates keeping homes affordable
Falling interest rates are fueling a rise in home mortgage applications and refinancings in the Inland region,
though experts aren’t yet ready to declare the beleaguered local housing market on the road to full recovery.
To read the full story, please click here:
http://www.pe.com/business/local/stories/PE_Biz_S_mortgages04.38b40b4.html
administration’s Making Home Affordable program; concerns about the viability of the Federal Housing
Administration; and low interest rates keeping homes affordable
A Down Payment Anomaly
Despite home buyers being advised to issue down payments of at least 20 percent, many home buyers are
finding that smaller down payments result in better interest rates—but also higher payments.
Rules put in place in late 2008 by Fannie Mae and similar rules adopted by Freddie Mac are less favorable
to borrowers who put down 20 percent to 25 percent--partially because the GSEs consider these borrowers
to be more of a credit risk since they are not required to purchase private mortgage insurance.
According to Fannie Mae, borrowers benefit from this industry practice because they are able to leave
themselves a financial cushion by not issuing larger down payments, and can instead save the extra money
for emergencies.
It is important to note though that smaller down payments mean higher monthly payments because the loan
itself will be larger.
To read the full story, please click here:
http://www.nytimes.com/2009/09/06/realestate/06mort.html?ref=realestate
To view additional articles please visit the following:
Obama’s mortgage relief program growing
The Obama administration’s $50 billion mortgage relief program is finally picking up speed after a sluggish
and disappointing start: Nearly one in five eligible homeowners has been offered help so far, the Treasury
Dept. said Wednesday.
To read the full story, please click here:
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/09/09/financial/f073010D13.DTL&type=business
Behind FHA Strains, a Push to Lift Housing
As it tried to help shore up the ailing housing market during the past year, the Federal Housing
Administration increased its exposure, particularly to mortgages in high-cost states that have also seen
some of the sharpest price declines.
To read the full story, please click here:
http://online.wsj.com/article/SB125211204270688031.html
Low rates keeping homes affordable
Falling interest rates are fueling a rise in home mortgage applications and refinancings in the Inland region,
though experts aren’t yet ready to declare the beleaguered local housing market on the road to full recovery.
To read the full story, please click here:
Wednesday, September 9, 2009
Homes in San Clemente under $475,000 (NO Mello Roos!)
Hello everyone,
I just thought I would update everyone here in gorgeous Southern California. Happy Labor Day! Summer is officially coming to a close, and with kids back in school and the beaches a little less crowded, we are going to be finding people looking more at houses again as the weather cools. Homes under $500K are still selling like hot cakes.
I will be having a new listing hitting the market in a few weeks and thought I would let everyone know about it before it hits the MLS. It is located in Capistrano Beach of Dana Point and is a 3 bedroom, 2 bath home in the front and there is a separate casita (1 bed, 1 bath) in the back of the house with a private entrance and yard. Cute house with an amazing floor plan that also included ocean views! Currently, this house is being used as a rental property (rented at $2500 for the front unit and $1100 for the back unit) Rent paid to owner is $3600. Now, this short sale listing will be listed around $485,000 and it is highly likely that the bank will accept offers at that price based on recent comps.
I worked out the payment schedule and assuming you put down 20% (perhaps gifted from a relative or funded by savings, and based on current interest rates, your payments, WITH taxes (no HOAs on this property) will be under $2500 a month. This is a net profit investment that would make a great home for a family as well. You could rent out the back section (already tenants there that will want to stay) and your mortgage payment will be roughly $1,400 a month. That is cheaper than any rent you can find in the area.
I call this a "Pocket Listing" until it hits the MLS and would love to answer any questions about the property.
Also, as promised, here are my "Top buys of homes that are under $475,000 that include at least 3 bedrooms, and NO Mello Roos. Enjoy viewing the listings below:
Please click on the link(s) below to view property information.
The link(s) sent with this email will expire in 30 days on 10/9/2009.
Tuesday, September 1, 2009
Shhhh....
P.S. Today's agent meeting leaked some information that the first time home buyer's tax credit may be extending.. and may be even going up some.
I cannot be quoted on this however, just wanted to share my insight.
I cannot be quoted on this however, just wanted to share my insight.
Things are perking up everywhere! Weekly Market Report
Name just about any housing market or economic indicator you can think of, and the odds are good that last week it was much better than the preceding week or month.
Start with resales of existing homes. They were up by 7.2 percent in July over June, according to the National Association of Realtors. That was the fourth consecutive -- and by far the largest -- monthly increase so far this year.
And check out new home sales. They were up by nearly 10 percent in the latest report from the Commerce Department. The gain was the biggest monthly change in sales since February of 2005. It pushed inventories of unsold new houses to their lowest point in 16 years.
Consumer confidence also was sharply higher, according to the Conference Board's widely watched index, up seven points in August over July. Lynn Franco, director of the Conference Board's consumer research center, said "consumers (are) more upbeat in their short-term outlooks for both the economy (as a whole) and the job market."
The latest Case-Shiller home price index even turned positive! Case-Shiller's national composite was up 2.9 percent comparing the first quarter of 2009 with the second quarter. That was the first quarter to quarter price improvement in more than three years, and we all know how spooky and bearish Case-Shiller has been throughout the housing downcycle.
Fully 18 of the 20 major markets tracked by Case-Shiller were positive for the quarter, even though on a year-to-year comparison basis, prices in the second quarter of 2009 were still 15 percent below the second quarter of 2008.
Mortgage applications and interest rates continued to be favorable as well. Total applications jumped by seven and a half percent last week, according to the Mortgage Bankers Association.
Rates remained low and stable: 5.2 percent for 30 year fixed rate loans, and 4.6 percent for 15 year mortgages.
Equally significant, some prominent analysts are saying the recession either officially ended sometime during the month of August, or will do so shortly, maybe in September.
The Mortgage Bankers Association's top forecaster, Orawin Velz, said the national gross domestic product or GDP likely will RISE in the third quarter -- ringing down the curtain on the deepest recession in decades.
Now, does this all mean that happy days are here again and the housing market can only go up as the recession comes to an end? Not with unemployment still above 9 percent and three million foreclosures forecast for the year.
Look for a slow-mending recovery, but one that looks like it will be led by housing. Until next time, Make it a Great Week!
Start with resales of existing homes. They were up by 7.2 percent in July over June, according to the National Association of Realtors. That was the fourth consecutive -- and by far the largest -- monthly increase so far this year.
And check out new home sales. They were up by nearly 10 percent in the latest report from the Commerce Department. The gain was the biggest monthly change in sales since February of 2005. It pushed inventories of unsold new houses to their lowest point in 16 years.
Consumer confidence also was sharply higher, according to the Conference Board's widely watched index, up seven points in August over July. Lynn Franco, director of the Conference Board's consumer research center, said "consumers (are) more upbeat in their short-term outlooks for both the economy (as a whole) and the job market."
The latest Case-Shiller home price index even turned positive! Case-Shiller's national composite was up 2.9 percent comparing the first quarter of 2009 with the second quarter. That was the first quarter to quarter price improvement in more than three years, and we all know how spooky and bearish Case-Shiller has been throughout the housing downcycle.
Fully 18 of the 20 major markets tracked by Case-Shiller were positive for the quarter, even though on a year-to-year comparison basis, prices in the second quarter of 2009 were still 15 percent below the second quarter of 2008.
Mortgage applications and interest rates continued to be favorable as well. Total applications jumped by seven and a half percent last week, according to the Mortgage Bankers Association.
Rates remained low and stable: 5.2 percent for 30 year fixed rate loans, and 4.6 percent for 15 year mortgages.
Equally significant, some prominent analysts are saying the recession either officially ended sometime during the month of August, or will do so shortly, maybe in September.
The Mortgage Bankers Association's top forecaster, Orawin Velz, said the national gross domestic product or GDP likely will RISE in the third quarter -- ringing down the curtain on the deepest recession in decades.
Now, does this all mean that happy days are here again and the housing market can only go up as the recession comes to an end? Not with unemployment still above 9 percent and three million foreclosures forecast for the year.
Look for a slow-mending recovery, but one that looks like it will be led by housing. Until next time, Make it a Great Week!
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