Archive for category News
This Weekend is “National Open House Weekend”
For Sale Signs are popping up like tulips and National Open House Weekend is This Saturday and Sunday.
Every home seller should take advantage of the tremendous amount of buyer traffic that will be on the street this 
weekend. The Realtors Association is doing the advertising for you. Don’t pass up the opportunity to show off your home, too!!
What Time Should You Hold Your Home Open?
- Open your home to the public for 3 hours, both Saturday and Sunday. On Sunday, don’t start before 1:00.
Idea’s for Advertising and Marketing Your Open House.
- Place an ad in your Newspaper Classified real estate section. Check to see if your local paper has a special Open House section, many do. You should run your ad the morning of the Open House and if budget allows, run your ad a few days in advance of the Open House.
- Edit your InfoTube ad and include the date and time of your Open House on your free internet ad. Be sure to remove the dates from your ad, once the event has past.
- After editing your ad to include your Open House date, Print new brochures with the date and time, then refill your InfoTube. (Tip: Make sure you print plenty of brochures to hand out at your Open House.)
- Open House Directional Signs. Nothing boosts attendance as much as directional signs placed at all key intersections and the routes traveled to reach your home. You can purchase directional Arrow and Open House signs at most major home centers. Please collect all signs after your Open House to avoid possible citations. Many towns consider left over signs as “littering”, after the event has passed.
- Attract more attention. Purchase an Open House sign for a few dollars at your local hardware store. Tie brightly colored balloons to the sign the day of the event.
- Post your Open House on OpenHouse.com. Place a post on Craigslist. Send out an email. Use the internet to gain as much attention as possible.
Source – InfoTube.net
Reminder: Tax Credit Deadline April 30, 2010
The following is an excerpt from an article on Zillow.com about the tax credit deadline. If you are selling your own house, don’t forget to have information available for your prospective buyers on why this is a great time for them to buy your house!
“In what has been urged as a must-have by real estate professionals and builders, the $8000 tax credit for first-time home buyers (previously due to expire Nov. 30), has been extended through April 30, 2010, according to the Associated Press. Not only has it been extended, but it has also been expanded to include more buyers.
Details on Tax Credit Extension:
- $8000 tax credit for first-time homebuyers extended for buyers who sign a contract by April 30, 2010 (and who close by the end of June).
- $6500 tax credit offered to homebuyers who have lived in their current residence at least five years and who want to “trade up” (buy a new primary residence).
- Couples earning as much as $225,000 a year and individuals earning up to $125,000 would qualify (up from $75,000 for individuals and $150,000 for couples).
- Tax credit not applicable for those buying homes worth more than $800,000.
- Those who sell their new home or stop using it as their main residence within three years would have to repay the credit.”
To read the whole article, visit Zillow.com.
Fair Housing and Martin Luther King Day
It seems fitting to talk about fair housing on a day designed to honor Martin Luther King Jr., because the civil-rights activist was acutely aware of the way bricks and mortar could be used to separate people based on race.
On August 5, 1966, he joined marchers protesting against housing segregation in Chicago. The Chicago Tribune reported that the “mood was ominous” and onlookers threw rocks, bottles and firecrackers at the crowd; King was hit by a stone. But in the end, there were results:
The marches led to an accord that year between the protesters and the Chicago Real Estate Board. The board agreed to end its opposition to open-housing laws in exchange for an end to the demonstrations. Before he left town, King said it was “a first step in a 1,000-mile journey.”
The federal Fair Housing Act was part of civil-rights legislation passed seven days after King was assassinated. The act, which covers most housing, makes it illegal to refuse to rent or sell to someone based on race, color, national origin, religion, gender, familial status — whether you have children — or disabilities. Setting different terms or conditions is also not allowed. The act covers mortgage lending, too.
In 2008, the 40th anniversary of the act, the U.S. Department of Housing and Urban Development said it had received more than 10,000 housing discrimination complaints the previous year. Race was the second-most cited reason. The first? Disabilities.
Source: Baltimore Sun – January 18, 2010
Another Big Gain in Existing-Home Sales
Existing-home sales rose again in November as first-time buyers rushed to close sales before the original Nov. 30 deadline for the recently extended and expanded tax credit, according to the NATIONAL ASSOCIATION OF REALTORS®.
Existing homes sales – including single-family, townhomes, condominiums and co-ops – rose 7.4 percent to a seasonally adjusted annual rate of 6.54 million units in November from 6.09 million in October, and are 44.1 percent higher than the 4.54 million-unit pace in November 2008. Current sales remain at the highest level since February 2007 when they hit 6.55 million.
Lawrence Yun, NAR chief economist, said the rise was expected. “This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead,” he said. “We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. In all, 4.4 million households are expected to claim the tax credit before it expires and balance should be restored to the housing sector with inventories continuing to decline.”
Conditions Optimal for Buyers
An NAR practitioner survey shows first-time buyers purchased 51 percent of homes in November, compared with an upwardly revised 50 percent of transactions in October. According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.88 percent in November from 4.95 percent in October; the rate was 6.09 percent in November 2008. Last month’s mortgage interest rate was the second lowest on record after bottoming at 4.81 percent in April 2009.
NAR President Vicki Cox Golder said conditions are optimal for buyers in the current market. “Inventories have steadily declined and are closer to balanced levels, which indicate home prices in many areas are either stabilizing or could soon stabilize and return to normal appreciation patterns,” she said. “This means buyers still have good choices but are purchasing near the bottom of the price cycle with historically low mortgage interest rates. Throw a tax credit on top and it really doesn’t get any better for buyers with secure jobs and long-term ownership plans.”
Inventories Fall
Total housing inventory at the end of November declined 1.3 percent to 3.52 million existing homes available for sale, which represents a 6.5-month supply at the current sales pace, down from an 7.0-month supply in October. Raw unsold inventory figures are 15.5 percent below a year ago. The last time there was a lower supply of homes on the market was April 2006, when it was at a 6.1-month supply.
“Nearly all markets experienced a solid sales gain from one year ago,” Yun said. “The only markets with measurably lower sales were in San Diego, Riverside, and Sacramento (Calif.), where inventory shortages for lower-priced homes are limiting sales.”
Sales Rise Across the Board
For the second month in a row, sales have risen in all price classes from a year earlier. Prior to October, the only consistent gains were in the lower price ranges. The national median existing-home price for all housing types was $172,600 in November, which is 4.3 percent below November 2008. Distressed properties, which accounted for 33 percent of sales in November, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.
Single-Family Homes
Single-family home sales jumped 8.5 percent to a seasonally adjusted annual rate of 5.77 million in November from a level of 5.32 million in October, and are 42.1 percent above the pace of 4.06 million in November 2008. The median existing single-family home price was $171,900 in November, down 4.4 percent from a year ago.
Condos
Existing condominium and co-op sales in November were unchanged from a seasonally adjusted annual rate of 770,000 in October, but are 60.1 percent above the 481,000-unit pace a year ago. The median existing condo price was $178,000 in November, which is 3.1 percent below November 2008.
By Region
- Sales in the Northeast rose 6.6 percent to an annual level of 1.13 million in November, and are 52.7 percent higher than November 2008. The median price in the Northeast was $223,400, down 13.1 percent from a year ago.
- Existing-home sales in the Midwest increased 8.4 percent in November to a pace of 1.55 million and are 53.5 percent above a year ago. The median price in the Midwest was $140,800, a decline of 0.4 percent from November 2008.
- In the South, existing-home sales rose 4.8 percent to an annual level of 2.39 million in November and are 44.8 percent higher than a year ago. The median price in the South was $151,400, down 1.4 percent from November 2008.
- Existing-home sales in the West increased 10.6 percent to an annual rate of 1.46 million in November and are 28.1 percent above November 2008. The median price in the West was $231,100, which is 4.1 percent below a year ago.
Source: Daily Real Estate News - December 22, 2009
Number of October Home Sales Up 10.1% from September
WASHINGTON – Home sales surged for the second month in a row in October, climbing to the highest level in 2 1/2 years as first-time buyers rushed to take advantage of an expiring tax credit.
Home sales nationwide are now up nearly 36 percent from their bottom in January, data Monday showed, though they are still 16 percent below the peak in autumn 2005. At the current sales pace, there is only a 7-month supply of homes on the market and in some areas there are bidding wars.
Joey Wilson, 53, and her husband made unsuccessful offers on 20 Las Vegas homes since midsummer before closing on a four-bedroom, $136,000 home this month.
“It’s insane,” said Wilson, who relocated from Kentucky. “I’ve never seen a market like this before.”
The National Association of Realtors said home resales rose 10.1 percent to a seasonally adjusted annual rate of 6.1 million in October, from a downwardly revised pace of 5.54 million in September. It was the biggest monthly increase in a decade, and far above the 5.65 million pace expected by economists, according to Thomson Reuters.
Without adjusting for seasonal factors, sales were up 21 percent from a year earlier and were up in all four regions of the country. The gains were led a 26 percent increase in the Midwest. Sales were up 25 percent in the Northeast, 23 percent in the South and 10 percent in the West.
The housing recovery is being driven by lower prices combined with federal programs to lower mortgage rates and bring more buyers into the market. The median sales price was $173,100, down 7 percent from a year earlier and off roughly 2 percent from September.
Many experts predict prices will hit a new low next spring, perhaps falling another 5 to 10 percent, as more foreclosures get pushed onto the market.
The government has tried to counter that trend by offering a tax incentive for first-time buyers and by keeping mortgage rates around 5 percent since the spring.
The tax credit of up to $8,000 for first-time owners was originally set to run out on Nov. 30, but Congress renewed it earlier this month and broadened its reach. People who have owned their current homes for at least five years can now claim a tax credit of up to $6,500 for a home purchase. To qualify, buyers must sign a purchase agreement by April 30.
The Realtors’ report on October home sales reflects offers made before buyers knew the tax credit would be extended.
“The incentives really did get people to go out and buy,” said Wells Fargo economist Adam York. “The question is: What does the trend look like when the credit is over with?”
Home sales are likely to drop over the winter as buyers hibernate for a few months without the looming tax credit deadline.
The new deadline means “we’re going to see some good activity coming out of the spring,” said Pat Lashinsky, chief executive of online real estate brokerage ZipRealty Inc.
But the government support can’t last forever. For example, the Federal Reserve is likely to curtail its effort to push down mortgage rates next year. If rates then rise too high, it would make home purchases less affordable and dampen housing demand.
“When we do kick those crutches out from under the housing market, will it be able to stand on its own?” said Mark Fleming, chief economist with real estate information company First American CoreLogic. “It’s really hard to tell.”
Another concern is that job losses are pushing once creditworthy homeowners into default. Borrowers with prime, fixed-rate loans accounted for one in three new foreclosures in the second quarter, the Mortgage Bankers Association said last week. Nationwide, a record 14 percent of homeowners with a mortgage were either behind on their payments or in foreclosure.
And in areas where foreclosures have hit hard, housing remains depressed, despite low prices and mortgage rates and the tax credit.
Cleveland real estate agent Colleen Rock notes that the city’s economy is still struggling with job losses. Another round of foreclosures could depress prices again.
“Just because we’re stabilizing, I can’t comfortably tell you we’re back to a normal market,” said Rock, an agent with Re/Max Crossroads. “It might be another year.”
Source: Associated Press. Writers David Twiddy, Alex Veiga and Adrian Sainz contributed to this report.
Both Houses OK Tax Credit Extension
I’m delighted to pass along some great news if you are trying to sell your own house! Especially if you think your home might appeal to first time buyers. And remember what I’ve taught you in “The Truth About FSBO” – contact a mortgage broker who will put together some FSBO marketing materials for you on loan programs and tax incentives available.
Daily Real Estate News | November 5, 2009 | Both Houses OK Tax Credit Extension, Expansion
The House today and the Senate yesterday passed legislation to extend the $8,000 home buyer tax credit to May 1, 2010, for first-time buyers and add a $6,500 tax credit for repeat buyers if they’ve lived in their home for five of the past eight years. Home prices are capped at $800,000.
The legislation in both houses was included in a bill to extend unemployment benefits and is expected to be signed by President Obama shortly.
“REALTORS® appreciate the swift action by Congress to extend the home buyer tax credit and expand it to some current homeowners,” says NAR President Charles McMillan. “As the leading advocate of housing and real estate issues, we urge President Obama to sign this legislation into law quickly to keep the momentum going in the fragile recovery of the nation’s housing market.”
Under the bill, income limits are expanded to $125,000 for individuals and $225,000 for joint filers. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.
Households who have binding contracts in place by April 30 will be allowed an additional 60 days to complete their transaction. The deadline for members of the military serving out the U.S. for at least 90 days between Jan. 1, 2009, and May 1, 2010, has been extended one year.
Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a check. Taxpayers will be able to claim the credit on their 2009 income tax return for purchases made in 2010.
Source: The Associated Press (11/5/2009)
NAR Lauds Extension of Higher Loan Limits
The NATIONAL ASSOCIATION OF REALTORS® thanked Congress for speedy action in passing a congressional resolution yesterday that would extend the current higher Fannie Mae, Freddie Mac, and FHA loan limits through 2010. The present loan limits would expire at the end of 2009 and revert to previous lower limits.
“NAR commends both houses of Congress for their quick action in continuing these higher limits during a time for recovery in the housing market and national economy. The higher limits, along with the home buyer tax credit extension, are necessary to keep the markets moving at this critical time,” said NAR President Charles McMillan.
“Home sales have shown significant movement upwards in the past six months and reduced inventory in some segments of the housing market, but not in all. Home purchases in the middle-income and higher brackets have not moved much, and those markets must improve before we can experience a fully sustained housing recovery. These higher loan limits will help motivate qualified home buyers to purchase in those markets,” McMillan said.
The resolution would extend the present conventional loan limits for Fannie and Freddie through the 2010 calendar year at 125 percent of local median home sales prices, up to a maximum of $729,750 in high-cost areas. The floor for FHA is $271,050; the floor for Fannie Mae and Freddie Mac conforming loan limits is $417,000.
The resolution now goes to President Obama, and he is expected to sign it today or Saturday to avoid a government shutdown.
Source: NAR (10/30/2009) Realtor.com
Change is Hard But Change is Good
“Change is good for the consumer and for the real estate industry. It fuels competition and drives innovation and efficiency. Yet, the real estate industry has seen little change during the last 50 years. Indeed, other than marginally lower commissions as a result of the introduction of “discount brokerage models,” the change is imperceptible. Will the industry survive as we know it today? What will it take to thrive in the future? Technology and changing consumer behavior will be the driving forces behind change, but not the only forces. What matters is what the consumers want — not what we think they want.”
The above is an excerpt from an excellent article written byManuel J. Iraola, President of Homekeys.com. I urge you to read the rest of the article at Real Estate – The Consumers Will Have the Final Word!
The real estate industry has had a stranglehold on the way things have been done for too long, discouraging competition and innovation.
Some People Don’t Know You Can Sell Your Own House!
I read today on ForSaleByOwner.com ‘s blog, that many consumers are mislead to believe there is some special law or policy which states they have to use an agent during the buying and selling process! Information used to be totally controlled by agents which lead people to believe they had to work with them.
About 4 years ago, an independent study by Real Trends revealed that only 50% of consumers were aware of the “for sale by owner” method of selling their home.
I imagine during the past 4 years awareness has improved considerably and homeowners understand they have the right to sell their own home if they chose. How anyone could miss all the FSBO signs now popping up is beyond me! 
Today in the world “home selling 2.0″, the internet gives you easy access to all the information you need to buy and sell property. The information is literally “at your finger tips”. It is easier than ever to do effective FSBO marketing online.
A Surprising FSBO Selling Statistic You Need to Know
Ironically, I read this surprising
statistic in two different places in the last week, plus my sister-in-law confirmed it with her real life experience this weekend!
So synchronicity is at work here to make sure I get this important message to you.
So here we go: “One out of three for sale by owner sellers sell their house to someone they already know!”
I guess that shouldn’t shock me, but it does. Just think of all the people listing their house with agents, spending tens of thousands of dollars on commissions when perhaps all they need to do was tell everyone they know! Yikes.
And think of all the people selling FSBO marketing their houses and skipping this critical avenue for finding buyers!
And nowadays, telling everyone you know is just an email away.
I was at a family gathering and my sister-in-law told me she had sold 3 of her houses “for sale by owner” to someone she knew and it went swimmingly. She said the 4th house they listed with an agent. She can’t remember exactly why, but she said it was a big, fat pain.
That made me think about my personal residences. I realize that I bought my current home from a family member and the house before that from a neighbor. For some reason, I hadn’t fully realized the significance of this!
So one of the best home selling tips I can give you is to be sure to put the proper energy into your neighborhood marketing. If you own The Truth About FSBO, make sure to use all the “grass roots” FSBO marketing ideas there to effectively market to your friends, family, and neighbors!
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