Posted by Jeff on March 17, 2010 under Real Estate | 
U.S. housing starts fell about 5.9% to a seasonally adjusted annual rate of 575,000 in February as several massive snowstorms hit the East and South. New construction was down in the Northeast and South, but up in the Midwest and West.
Starts of single-family homes fell 0.6% to a 499,000 pace, while starts of large condos and apartment building plunged 43%. In the past year, starts of single-family homes are up 39%, while starts of multifamily units are down 41%. Building permits dropped 1.6% to 612,000 in February. Permits for single-family homes fell 0.2% to a 503,000 rate.
So is this good news or bad? Bad news for builders but good news for the housing market. There are way too many homes for sale and this housing market will not recover until we work off the existing supply. So why do we need more inventory?
Posted by Jeff on November 6, 2009 under Real Estate |
The home buyer tax credit bill was signed today by President Obama. This bill extends the credit period until June 30, 2010 but homes must be in contract by April 30, 2010
The new bill provides for up to $8,000 credit for first time buyers and up to $6,500 for trade up buyers who have been in their current home for the last 5 years.
This extension should provide an early boost to the spring housing market which normally doesn’t start cooking until April. With the Feds Mortgage Bonds purchase program set to expire at the end of March, the time to buy will be the first quarter of next year. Once the Fed halts their purchase program, rates will must likely start to rise.
Posted by Jeff on November 5, 2009 under Real Estate |
Both the House of Representatives and the Senate have approved the extension of the $8,000 Home Buyer Tax Credit. Now it is on its way to President Obama’s desk for his signature.
This latest and probably last extension also raises the income limits to $125,000 for a single buyer and $225,000 for a couple. Also included in this bill is a $6,500 credit for trade up buyers as long as they have lived in their current home for at least 5 years.
You’ll need to be in contract by April 30, 2010 and must close by June 30, 2010.
Due to the fraudulent claims connected to the current bill some safeguards have been added to the claims procedure along with a prohibition on non-arms length transactions. Expect delays in receiving your refund as your claim is scrutinized and beware of buying from a relative. The non-arms length prohibition could complicate your claim.
Posted by Jeff on September 2, 2009 under Real Estate |
The pace of home sales increased again last month. This is the sixth straight monthly increase this year and provides more fuel to the argument that the housing market has bottomed out.
Low interest rates, increased affordability and the $8,000 tax credit for first time buyers have provided the spark to ignite this stagnant market. Realtors report increased activity at open houses and bidding wars for some well priced properties.
While the inventory of unsold homes is still larger than normal, it is down from the lofty levels of 2008. The market is not red hot but momentum is clearly turning positive
Posted by Jeff on June 3, 2009 under Real Estate |
For the third month in a row, pending sales of existing homes rose. The rally in home sales were most likely due to record low mortgage rates and special incentives for first-time buyers. The pending home sales index rose 6.7% in April after a 3.2% increase in March, the National Association of Realtors (NAR) said. The index is up 3.2% above April 2008. The index is based on sales contracts on existing homes. The NAR reports on sales of existing homes once the sales close, usually six to eight weeks later.
The Northeast saw the biggest increase in April where pending sales jumped 32.6 percent from the previous month. Active home buyers have reported more competition for well priced homes than existed only 6 months ago.
