According to Lawrence Yun, chief economist from the National Association of REALTORS, “Home buyers over the past year got a great deal, and buyers for the balance of this year have an edge over sellers. Affordability has reached a generational high in the second of this yer because of rock bottom mortgage interest rates, helped partly by the Fed’s very ccommodative monetary policy.”For more reasons why now is a prime time to buy a home, contact me and I’ll send you a free ebook.
It’s prime time to buy a home!
I just read a great ebook called “7reasons Why Now is a Great Time to Buy a Home!”It’s filled with positive, exciting information to help buyers seize the incredible market opportunities available to them right now. Over the next seven weeks, I’ll be sharing key excerpts from this ebook with you in my blog. For a free copy of the ebook, contact me and I will send it your way. 323.804.2008
Thinking of refinancing your home read this article first!
http://www.latimes.com/business/realestate/la-fi-harney-20101010,0,5817827.story
HOME BUYERS
CLICK HERE: IF You’re Thinking of Purchasing a Home This is an Important Video to Watch. “6 Ways to get your Financing in Order “
Daily Real Estate News | April 28, 2010 |
As the home buyer tax credits near their end, analysts are concluding that the program was both expensive and successful.
The Treasury Department estimates that the credits helped 1.8 million people buy homes, but critics reply that two-thirds of the $12.6 billion in credits spent through the end of February went to people who would have purchased a home anyway.
Sen. Johnny Isakson, a Republican from Georgia, who worked as a real estate practitioner for 30 years and pushed through the 2010 extension and expansion of the program, says: “It’s true that a lot of people who got the credit might have bought without it, but they might have bought in 2012 or 2013. This got them to buy in 2009 and 2010, when we needed to shore things up.”
Economist Mark Zandi at Moody’s Economy.com agrees. “The tax credit helped to stanch the price declines, which had substantial benefit for the entire economy,” he says. “The home is still the largest asset on most people’s balance sheet, so when prices are falling, nothing works for most families. But now people can take a deep breath and think clearly again.”
Source: The New York Times, David Kocieniewski (04/26/2010).
Americans still want a house By Ben Rooney, staff reporterApril 6, 2010: 2:10 PM ET NEW YORK (CNNMoney.com) —
Nearly two-thirds of Americans would still prefer to own a home, although the recent housing market turmoil and uncertain economy have made them a little more cautious about how and when, according to a survey released Tuesday. A nationwide survey conducted by mortgage lender Fannie Mae found 65% of the homeowners and renters believe there is still value in owning a home.
But the survey also suggests that potential home buyers have become more cautious in the years since the housing bubble burst, giving rise to a wave of foreclosures and a severe recession. “Consumers are still committed to owning a home, but are showing increased cautiousness,” said Doug Duncan, chief economist at Fannie Mae. He said the downturn in the housing market has led to a “rebalancing” of consumer attitudes towards homeownership. Americans are adopting a more realistic approach and are now less willing to take risks, he said. The survey showed that home buyers are growing more concerned with longer- term priorities, as opposed to the house “flipping” mentality that characterized the market during the boom years. Over 40% said personal safety was their main consideration when buying a home, while a third indicated that the quality of local schools was the dominant factor. America’s most overvalued cities One of the purposes of the survey is to try to more closely monitor the market, according to Duncan. That way, industry players and policy makers can take steps to stimulate the housing market when it slows too much and put the brakes on when it threatens to overheat. “This survey was done to get a level set about what the public is thinking about housing after the huge disruption,” said Duncan. “We wanted to understand the current and expected behavior of borrowers, and how to help people who have had difficulties.” 0:00 /3:41Trump: Don’t fear a real estate collapse The survey showed that 60% believe buying a home today is harder than it was for their parents, and nearly seven in ten believe it will be even more difficult for their children. Still, about two-thirds of respondents believe now is a good time to buy a house, and nearly one in three said now is a very good time to buy a house. This is nearly as many who said it was a good time to buy in 2003, well before home prices peaked, Fannie Mae said. A full 70% said they believe buying a home continues to be one of the safest investments available. That’s down from 83% in 2003. “The investment motive took a hit,” said Duncan. Nearly three-quarters anticipate housing prices will go up or stay the same over the next year, according to the survey. That includes 37% who see prices will increase and 36% who feel prices will remain about the same. A majority of respondents said it is unacceptable for a homeowner to stop making payments on their mortgage when the value of the property falls below the balance of the loan, a condition known as being “underwater.” However, the survey showed that 15% believe it is acceptable to stop making payments on an underwater mortgage if the homeowner is financially distressed. The survey was conducted by telephone this winter with 3,451 Americans age 18 and older. — CNNMoney.com senior writer Les Christie contributed to this report.
State doubles credit to $200M, opens it up to resales
Thursday, March 25, 2010. Inman News
The state of California has re-established and extended a $10,000 homebuyer tax credit. The new law, AB 183, signed today by Gov. Arnold Schwarzenegger, allocates $200 million to the credit for homes purchased between May 1 and Dec. 31, and between Dec. 31 and August 1, 2011. That’s twice the amount allocated to a similar credit passed for purchasers of new homes last year. Those funds were quickly depleted and builders have been asking for the credit’s return ever since. The state has extended the new credit to first-time buyers of existing homes as well as buyers of new homes. The funds will be split evenly between the two groups, and buyers will have to occupy the home for at least two years. The legislation had the backing of the California Building Industry Association and the California Association of Realtors. “The tax credit will help push prospective buyers off the fence, clear out inventory, and jump-start the homebuilding industry, which will help create jobs and reinvigorate the state’s economy,” said Liz Snow, the building association’s CEO and president, in a statement. “AB 183 also will significantly contribute to efforts to stimulate jobs creation within California’s housing market by helping to incentivize first-time home buyers to purchase homes that have been abandoned, foreclosed upon, and returned to the lender; or have been sitting on the market for extended periods of time,” said Steve Goddard, the real estate association president, in a statement. “It is these homes that will require substantial rehabilitation by the new owners, which will in turn generate a tremendous increase in jobs and accessory purchases connected to home improvement activities,” Goddard added. Snow said the credit would be paid out over several years and therefore lessen the blow to the cash-strapped state’s budget. “Additionally, recent studies show that building a new home generates roughly $16,000 in state tax revenues alone, which supports the notion that the credit will more than pay for itself,” Snow said. The Franchise Tax Board concluded that losses to the state’s General Fund will equal $200 million: $6 million in 2009-10; $69 million in 2010-11; $67 million in 2011-12; $54 million in 2012-13; and, $4 million in 2013-14. “The bill appears to represent a blending of policy goals, including: increasing demand for housing by lowering the effective purchase price; decreasing the existing market inventory of homes; and, encouraging construction of new homes. Supporters claim this bill will result in the generation of additional jobs in California. No formal jobs analysis has been conducted,” according to a legisaltive report.
I’m still reeling from the announcement at my Keller Williams Office in Los Feliz by Wells Fargo. They are the only ones listening to us all. I am in the midst of a 6mos. short sale that is horrendous. There is just no excuse for my client to have to wait 6mos. to purchase a home that we have been in escrow with since basically day 1. So about this new program. You are dealing with one contact program who knows about sale, who is there for questions and answers. Your commission is a min. of 6% and sometimes more. The second lender will be given 10% of first lenders monies. This will immediately eliminate months from the process. Prospective clients will get a personal interview and will be approved or not -right away.No lost papers, no stalling.
We are all watching and hoping this is all true. It seems extremely plausible as Wells Fargo seems to have covered all bases in designing the program.
Wells Fargo gets a thumbs up from my perspective.
Real Estate Angles Blog 