OK, so there are many sources out there pointing to the fact that we are heading for a real estate recovery. Monthly inventory continues to decline, sales are going up, nenver before seen market conditions exist for first-time buyers, and multiple offers are becoming a regularity in many neighborhoods (out of seven pending homes in a Carmel, IN neighborhood, they all had multiple offers!).
However, due to new appraisal guidelines known as HVCC, we are seeing low appraisals on home sales. This is affecting up to 50% of sales for some lenders and real estate agents. It is getting so bad that appraisers are the ones setting home values, not the market-buyers and sellers. This is just the beginning of this problem and it will continue to get worse. If you are thinking of selling your home, consider getting an appraisal before it goes on the market so you have an expectation of what to see after you find a buyer. It is a mess!
Friday, June 12, 2009
Wednesday, April 22, 2009
Housing Is Moving...
Wow! Things have really picked up in the last 45-days or so. I have shown over 60-homes to 4 different buyers in the past month and many homes in northern Marion County and southern Hamilton County are selling in under 30-days! Several are generating multiple offers and some still are selling for above asking price, including a listing of ours in Butler-Tarkington. The spring market is here and there are a lot of buyers taking advantage of the the low sales prices, motivated sellers, record inventory and selection, super-low interest rates, and the $8,000 first-time homebuyer tax credit.
This is all good news for everyone. That may be the light at the end of the tunnel we are seeing...
This is all good news for everyone. That may be the light at the end of the tunnel we are seeing...
Thursday, March 26, 2009
Recovery in Sight?
Is a housing recovery in sight? No one has a crystal ball, but there are some very strong signs pointing in that direction. Such as: 1) Home sales were up 5.1% in February, which is the largest single month increase on record, 2) Housing inventory is going down and is below 6 months of inventory in many areas of Indy, 3) Many homes are receiving multiple offers, 4) Many homes are selling in under 30-days, especially in Carmel, IN, 5) Buyer activity is WAY up for most real estate agents, 6) Showings for listings are increasing significantly, 7) Many buyers are asking about the $8,000 first-time homebuyer tax credit and the record low interest rates.
I think we hit bottom in February and things are turning around--finally. Are you in a position to buy a home in 2009? My guess is that 2009 will go down in history as one of the best years of all-time to buy a home. I did. Will you?
Friday, March 06, 2009
Foreclosure Information
Excerpted from Real Trends Newsletter-March 6, 2009
Mortgage rates hold steady
Fannie Mae/Freddie Mac launch new initiatives
11% of homeowners in mortgage trouble
Mortgage rates hold steady
A lousy week on Wall Street didn't have much effect on mortgage rates, according to Bankrate.com. Stock prices fell to 12-year lows. Normally, a giant slide on stock prices is met by a plunge in mortgage rates-not this time. The benchmark 30-year, fixed-rate mortgage was unchanged, at 5.41 percent, according to the Bankrate.com national survey of large lenders. Source: Bankrate.com
Fannie Mae/Freddie Mac launch new initiatives
Two new initiatives from Fannie Mae-Home Affordable Refinance and Home Affordable Modification-are now available to its servicers and borrowers as part of the Obama Administration's "Making Home Affordable" program. The two initiatives hope to significantly expand the numbers of borrowers who can refinance or modify their mortgages to a payment that is affordable now and into the future. For more details about the programs, goto http://www.fanniemae.com/homepath/homeaffordable.jhtml Freddie Mac launched its new REO Rental Initiative giving qualified tenants and former owners the option to lease their recently foreclosed properties on a month-to-month basis. Freddie Mac also will continue to suspend all eviction actions until April 1, 2009 to ensure there is ample time for current occupants to learn about the options available to them under the new initiative.
11% of homeowners in mortgage trouble
Over 11 percent of all American homeowners are either delinquent or in foreclosure, according to a report from the Mortgage Brokers Association (MBA). The percentage of mortgage borrowers at least one month behind in their payments-but not in foreclosure -rose to nearly 8 percent during the fourth quarter of 2008, according to the MBA National Delinquency Report. That is the highest rate of delinquency ever recorded by the survey, which began in 1972, and reflects a record 13 percent jump compared to the third quarter. The number of homes in the foreclosure process rose to 3.3 percent, an increase of 0.33 percentage points from the quarter before and up 1.26 percentage points from a year earlier. That represents nearly 1.5 million homes at risk of sliding all the way through foreclosure. Combined, the number of frequencies and loans in foreclosure came to 11.18%, the highest ever recorded by the MBA.
Mortgage rates hold steady
Fannie Mae/Freddie Mac launch new initiatives
11% of homeowners in mortgage trouble
Mortgage rates hold steady
A lousy week on Wall Street didn't have much effect on mortgage rates, according to Bankrate.com. Stock prices fell to 12-year lows. Normally, a giant slide on stock prices is met by a plunge in mortgage rates-not this time. The benchmark 30-year, fixed-rate mortgage was unchanged, at 5.41 percent, according to the Bankrate.com national survey of large lenders. Source: Bankrate.com
Fannie Mae/Freddie Mac launch new initiatives
Two new initiatives from Fannie Mae-Home Affordable Refinance and Home Affordable Modification-are now available to its servicers and borrowers as part of the Obama Administration's "Making Home Affordable" program. The two initiatives hope to significantly expand the numbers of borrowers who can refinance or modify their mortgages to a payment that is affordable now and into the future. For more details about the programs, goto http://www.fanniemae.com/homepath/homeaffordable.jhtml Freddie Mac launched its new REO Rental Initiative giving qualified tenants and former owners the option to lease their recently foreclosed properties on a month-to-month basis. Freddie Mac also will continue to suspend all eviction actions until April 1, 2009 to ensure there is ample time for current occupants to learn about the options available to them under the new initiative.
11% of homeowners in mortgage trouble
Over 11 percent of all American homeowners are either delinquent or in foreclosure, according to a report from the Mortgage Brokers Association (MBA). The percentage of mortgage borrowers at least one month behind in their payments-but not in foreclosure -rose to nearly 8 percent during the fourth quarter of 2008, according to the MBA National Delinquency Report. That is the highest rate of delinquency ever recorded by the survey, which began in 1972, and reflects a record 13 percent jump compared to the third quarter. The number of homes in the foreclosure process rose to 3.3 percent, an increase of 0.33 percentage points from the quarter before and up 1.26 percentage points from a year earlier. That represents nearly 1.5 million homes at risk of sliding all the way through foreclosure. Combined, the number of frequencies and loans in foreclosure came to 11.18%, the highest ever recorded by the MBA.
Thursday, March 05, 2009
The Credit Crisis Explained
Take a look at this very good, non-biased, straight-forward explanation of how we got into this credit mess we now face. It is very interesting:
http://www.crisisofcredit.com
http://www.crisisofcredit.com
Friday, February 27, 2009
Indianapolis Ranked Nation's Most Affordable City...Again!
Indianapolis and New York City bookend the most affordable-least affordable list. Lower homes prices and interest rates fail to push sales higher.
By Les Christie, CNNMoney.com staff writer, Last Updated: February 23, 2009: 2:17 PM ET
NEW YORK (CNNMoney.com) -- Crashing home prices have led to the most affordable housing market in at least five years, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index released Thursday.
More than 60% of all U.S. homes sold during the last three months of 2008 were affordable - meaning that a family making the national median of $61,500 a year would pay 28% or less of their total income toward housing expenses.
At 62.4% affordable, the figure is up considerably from 56.1% in the previous quarter and 46.6% at the end of 2007, according to the report.
Topping the list of most affordable U.S. metro areas, which ranks areas with more than 500,000 in population, was Indianapolis. This is the city's 14th consecutive quarter in first place; it boasts a full 93% of all homes sold being affordable to median family households.
The least affordable was the New York City metro area, where only 13.9% of homes sold met the criteria.
In the fourth quarter, the national median home price fell to $190,000 from $205,700 in the previous-year period, according to a report issued last week by the National Association of Realtors. That combined with falling mortgage rates has made home buying the most affordable it has been since early 2002.
"Falling home prices and very favorable mortgage rates both contributed to the housing affordability gains we saw in the fourth quarter of 2008," NAHB Chairman Joe Robson, a homebuilder from Tulsa, Okla., said in a prepared statement.
That still wasn't enough to get moribund housing markets moving again. Existing homes sold at an annualized rate of 4.74 million in December, according to the National Association of Realtors, down from more than 7 million during the boom.
And a government report revealed that new home sales crashed to an annualized rate of 331,000 in December, the lowest since record keeping began in 1963.
"Worsening economic conditions, historically low consumer confidence and uncertainty about future home prices kept many qualified buyers on the sidelines," Robson said. Still no buying push
That affordability has improved so much does not necessarily make people go house hunting, according to Mike Larson, a real estate analyst with Weiss Research.
"You could argue that house affordability indexes are improving but that may not be the best way of defining whether it's a good time to buy," he said. "Concerns about the economy and whether they're going to still have a job have kept many homebuyers from stepping up to the plate."
During the boom, when house affordability plunged, buyers came out in droves. They were confident in the economy and afraid that home prices would soar out of reach. Today, just the opposite applies.
"Affordability is going to get even better," said Larson. "Home prices are not done falling. Buyers recognize this. There's no sense of urgency, and rightly so."
Indeed, according to Nicholas Retsinas, director of Harvard University's Joint Center for Housing Studies, affordability, which was a major factor in homebuying during the boom, no longer matters very much. In most parts of the United States, affordability has returned to where it was in 2002 or 2003.
"The new barrier is willingness to buy," he said.
That's why one major goal of President Obama's housing-rescue plan involves slowing foreclosures to stabilize housing markets and foster consumer confidence.
"If that happens, maybe people will start thinking, 'Hey, maybe prices won't go down tomorrow,'" said Retsinas.
Most and least affordable
Affordability in Indianapolis, the 33rd largest metro area in the United States with 1.7 million people, was buoyed by fairly high median income of $65,100 and rock-bottom home prices. The median price for a home sold during the quarter was just $103,000, according to the National Association of Home Builders report.
Those prices, combined with reasonable mortgage interest rates, make home-buying in the area a snap. A buyer of a median-priced home putting 20% down would pay only about $450 a month in mortgage expenses.
But even though house buying costs are reasonable, the city's weakening economy meant it did not escape the foreclosure plague. More than 20,000 homes, representing nearly 3% of the city, received a foreclosure filing of some kind in 2008, the 26th highest rate in the nation.
Other most affordable towns were: Warren, Mich. (89.6%); Youngstown, Ohio (89.4%); and Detroit (89.3%).
In the New York City metro area, home prices took a steep dive during the quarter, to $455,000 from $500,000 three months earlier. But even that was not enough to dislodge the city from its rank as the most unaffordable metro area in the land.
Median income in the area is $63,000, less than in Indianapolis and, with home prices more than four times higher than in the Midwestern metropolis, only 13.9% of the homes sold there were affordable to median income families.
That was still a major improvement from two years ago, when only 5.1% of homes sold during the fourth quarter of 2006 were affordable. And New York households have been barely brushed by foreclosure so far with only 0.71% receiving some kind of foreclosure filing during 2008.
Other least-affordable metro areas included San Francisco at 20.6%, where affordability improved greatly from 5.7% during the second quarter of 2007; suburban Long Island, where 25.5% were affordable; and Los Angeles, where 26.9% were.
By Les Christie, CNNMoney.com staff writer, Last Updated: February 23, 2009: 2:17 PM ET
NEW YORK (CNNMoney.com) -- Crashing home prices have led to the most affordable housing market in at least five years, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index released Thursday.
More than 60% of all U.S. homes sold during the last three months of 2008 were affordable - meaning that a family making the national median of $61,500 a year would pay 28% or less of their total income toward housing expenses.
At 62.4% affordable, the figure is up considerably from 56.1% in the previous quarter and 46.6% at the end of 2007, according to the report.
Topping the list of most affordable U.S. metro areas, which ranks areas with more than 500,000 in population, was Indianapolis. This is the city's 14th consecutive quarter in first place; it boasts a full 93% of all homes sold being affordable to median family households.
The least affordable was the New York City metro area, where only 13.9% of homes sold met the criteria.
In the fourth quarter, the national median home price fell to $190,000 from $205,700 in the previous-year period, according to a report issued last week by the National Association of Realtors. That combined with falling mortgage rates has made home buying the most affordable it has been since early 2002.
"Falling home prices and very favorable mortgage rates both contributed to the housing affordability gains we saw in the fourth quarter of 2008," NAHB Chairman Joe Robson, a homebuilder from Tulsa, Okla., said in a prepared statement.
That still wasn't enough to get moribund housing markets moving again. Existing homes sold at an annualized rate of 4.74 million in December, according to the National Association of Realtors, down from more than 7 million during the boom.
And a government report revealed that new home sales crashed to an annualized rate of 331,000 in December, the lowest since record keeping began in 1963.
"Worsening economic conditions, historically low consumer confidence and uncertainty about future home prices kept many qualified buyers on the sidelines," Robson said. Still no buying push
That affordability has improved so much does not necessarily make people go house hunting, according to Mike Larson, a real estate analyst with Weiss Research.
"You could argue that house affordability indexes are improving but that may not be the best way of defining whether it's a good time to buy," he said. "Concerns about the economy and whether they're going to still have a job have kept many homebuyers from stepping up to the plate."
During the boom, when house affordability plunged, buyers came out in droves. They were confident in the economy and afraid that home prices would soar out of reach. Today, just the opposite applies.
"Affordability is going to get even better," said Larson. "Home prices are not done falling. Buyers recognize this. There's no sense of urgency, and rightly so."
Indeed, according to Nicholas Retsinas, director of Harvard University's Joint Center for Housing Studies, affordability, which was a major factor in homebuying during the boom, no longer matters very much. In most parts of the United States, affordability has returned to where it was in 2002 or 2003.
"The new barrier is willingness to buy," he said.
That's why one major goal of President Obama's housing-rescue plan involves slowing foreclosures to stabilize housing markets and foster consumer confidence.
"If that happens, maybe people will start thinking, 'Hey, maybe prices won't go down tomorrow,'" said Retsinas.
Most and least affordable
Affordability in Indianapolis, the 33rd largest metro area in the United States with 1.7 million people, was buoyed by fairly high median income of $65,100 and rock-bottom home prices. The median price for a home sold during the quarter was just $103,000, according to the National Association of Home Builders report.
Those prices, combined with reasonable mortgage interest rates, make home-buying in the area a snap. A buyer of a median-priced home putting 20% down would pay only about $450 a month in mortgage expenses.
But even though house buying costs are reasonable, the city's weakening economy meant it did not escape the foreclosure plague. More than 20,000 homes, representing nearly 3% of the city, received a foreclosure filing of some kind in 2008, the 26th highest rate in the nation.
Other most affordable towns were: Warren, Mich. (89.6%); Youngstown, Ohio (89.4%); and Detroit (89.3%).
In the New York City metro area, home prices took a steep dive during the quarter, to $455,000 from $500,000 three months earlier. But even that was not enough to dislodge the city from its rank as the most unaffordable metro area in the land.
Median income in the area is $63,000, less than in Indianapolis and, with home prices more than four times higher than in the Midwestern metropolis, only 13.9% of the homes sold there were affordable to median income families.
That was still a major improvement from two years ago, when only 5.1% of homes sold during the fourth quarter of 2006 were affordable. And New York households have been barely brushed by foreclosure so far with only 0.71% receiving some kind of foreclosure filing during 2008.
Other least-affordable metro areas included San Francisco at 20.6%, where affordability improved greatly from 5.7% during the second quarter of 2007; suburban Long Island, where 25.5% were affordable; and Los Angeles, where 26.9% were.
First-Time Homebuyer Tax Credit Form
Looking for the IRS Tax Form 5405 to include the First-Time Homebuyer Tax Credit? E-mail me at Steve@Welcome2Indy.com and I'll send you the .pdf.
Homebuyer Tax Credit Further Explained
The following is information Lisa Hammond of Landmark Title (my favorite title company!) found through the Active Rain website:
"Any first-time homebuyers who believe they are eligible for all or part of the credit can modify their income tax withholding (through their employers) or adjust their quarterly estimated tax payments. Individuals subject to income tax withholding would get an IRS Form W-4 from their employer, follow the instructions on the schedules provided and give the completed Form W-4 back to the employer. In many cases their withholding would decrease and their take-home pay would increase. Those who make estimated tax payments would make similar adjustments."
WITHHOLDING EXAMPLES:
Note: The impact of estimated tax payments would be the same.
Situation 1: Sally plans her withholding so that her withholding is as close as possible to what she anticipates as her income tax liability for the year. When she fills out her 1040, her liability is $6000. She has had $6000 withheld from her paycheck. She also qualifies for the $8000 homebuyer credit.
Result: Sally's withholding satisfies her tax liability and reduces it to zero. She will receive a refund of the full $8000.
Situation 2: Nick and Nora file a joint return. Nick is self-employed and makes estimated payments; Nora has taxes withheld from her salary. When they compute their taxes, their combined withholding and estimated tax payments are $11,000. Their income tax liability is $9800. They also qualified as first-time homebuyers and are eligible for the $8000 refundable tax credit.
Result: Ordinarily, their combined estimated tax payments and withholding would make them eligible for a refund of $1200 ($11,000 - $9800 = $1200). Because they are eligible for the refundable tax credit as well, they will receive a refund of $9200 ($1200 income tax refund + $8000 refundable tax credit = $9200)
Situation 3: Charlie and Mary both have income taxes withheld from their salaries and file a joint return. When they file their income tax return, their combined withholding is $5000. However, their total tax liability is $7200, generating an additional income tax liability of $2200 ($7200 - $5000). They also qualify for the $8000 first-time homebuyer tax credit.Result: Charlie and Mary have been under-withheld by $2200. Ordinarily, they would be required to pay the additional $2200 they owe (plus any applicable interest and penalties). Because they are eligible for the refundable homebuyer tax credit, the credit will cover the $2200 additional liability. In addition, they will receive an income tax refund of $5800 ($8000 - $2200 = $5800). If they owed penalties and/or interest, that amount would reduce the refund.
"Any first-time homebuyers who believe they are eligible for all or part of the credit can modify their income tax withholding (through their employers) or adjust their quarterly estimated tax payments. Individuals subject to income tax withholding would get an IRS Form W-4 from their employer, follow the instructions on the schedules provided and give the completed Form W-4 back to the employer. In many cases their withholding would decrease and their take-home pay would increase. Those who make estimated tax payments would make similar adjustments."
WITHHOLDING EXAMPLES:
Note: The impact of estimated tax payments would be the same.
Situation 1: Sally plans her withholding so that her withholding is as close as possible to what she anticipates as her income tax liability for the year. When she fills out her 1040, her liability is $6000. She has had $6000 withheld from her paycheck. She also qualifies for the $8000 homebuyer credit.
Result: Sally's withholding satisfies her tax liability and reduces it to zero. She will receive a refund of the full $8000.
Situation 2: Nick and Nora file a joint return. Nick is self-employed and makes estimated payments; Nora has taxes withheld from her salary. When they compute their taxes, their combined withholding and estimated tax payments are $11,000. Their income tax liability is $9800. They also qualified as first-time homebuyers and are eligible for the $8000 refundable tax credit.
Result: Ordinarily, their combined estimated tax payments and withholding would make them eligible for a refund of $1200 ($11,000 - $9800 = $1200). Because they are eligible for the refundable tax credit as well, they will receive a refund of $9200 ($1200 income tax refund + $8000 refundable tax credit = $9200)
Situation 3: Charlie and Mary both have income taxes withheld from their salaries and file a joint return. When they file their income tax return, their combined withholding is $5000. However, their total tax liability is $7200, generating an additional income tax liability of $2200 ($7200 - $5000). They also qualify for the $8000 first-time homebuyer tax credit.Result: Charlie and Mary have been under-withheld by $2200. Ordinarily, they would be required to pay the additional $2200 they owe (plus any applicable interest and penalties). Because they are eligible for the refundable homebuyer tax credit, the credit will cover the $2200 additional liability. In addition, they will receive an income tax refund of $5800 ($8000 - $2200 = $5800). If they owed penalties and/or interest, that amount would reduce the refund.
Wednesday, February 18, 2009
Put the MLS on your cell phone
PUT THE MLS ON YOUR CELL PHONE AND IN YOUR POCKET
CENTURY 21 Realty Group has GONE MOBILE - CALL - CLICK or TEXT
Get ALL homes for sale 24/7/365 Anywhere - Anytime
Instructions to Download Application
Simply go to http://www.GoRealtyGroup.com or http://www.thinkrealtygroup.com
Click on the "Go Mobile" Application IconDownload our new "Go Mobile" Application to your phone
(Note: If your phone is not currently available, check back -- all will be available in 90 to 120 days)
CENTURY 21 Realty Group has GONE MOBILE - CALL - CLICK or TEXT
Get ALL homes for sale 24/7/365 Anywhere - Anytime
Instructions to Download Application
Simply go to http://www.GoRealtyGroup.com or http://www.thinkrealtygroup.com
Click on the "Go Mobile" Application IconDownload our new "Go Mobile" Application to your phone
(Note: If your phone is not currently available, check back -- all will be available in 90 to 120 days)
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