Thursday, March 4, 2010

Nab A Real Estate Deal - While You Still Can



If you've been holding off on a real estate purchase, glimmers of a turnaround in the housing market may have you wondering if it's finally time to make your move.

While home prices remain low, they're no longer free-falling in most markets. Mortgages are historically cheap. And the sweet tax credit that was offered to new buyers last year has been extended to April 30 and expanded to include current homeowners too.

But for all the motivation to act quickly, buying right now is not a no-brainer. In some areas home prices may fall further. If you own a house now, it may take longer than you expect to sell it, and you may walk away with less cash than you thought.


"It's a good time to buy, but it's still a really difficult market," says Patrick Newport of IHS Global Insight. As the clock ticks toward the tax-credit deadline, answer these questions to decide whether it's time to get off the sidelines.

Can you really nab that tax credit?

Current homeowners who sign a contract to buy a home on or before April 30 get a dollar-for-dollar reduction on their taxes of 10% of the purchase price of the home, up to a maximum of $6,500 (first-time buyers can get up to $8,000).

But according to the National Association of Realtors, buyers spend about 12 weeks home shopping before making an offer, so if you haven't already started looking, you may be pressed to meet the deadline.

Plus, to qualify for the full credit, your household income must be under $225,000 if you're married and less than $125,000 if you're single; repeat buyers must have lived in the home they are selling for five of the past eight years. The good news: Once you've signed the contract, you have until June 30 to close the deal.

How much could you lose by waiting?

Besides the loss of the tax credit, the biggest game-changer facing buyers is a potential jump in mortgage rates. If the Fed moves ahead with its plan to stop buying mortgage-backed securities at the end of March, the rate on a 30-year fixed mortgage is expected to increase nearly a percentage point from today's 5.18% to 6.1% by the end of 2010, according to the Mortgage Bankers Association. On a $300,000 fixed-rate mortgage, that's an extra $174 per month.

But if home values are falling in your area, you don't have much to lose by waiting. If the house you want costs $375,000 today and you put down 20%, you'd pay $1,644 a month for a fixed-rate mortgage at 5.18%. Buy that same home for 5% less later on with rates at 6% and you'd only pay an extra $65 a month. If prices plunge 10% or more this year (as they are expected to in 12% of markets, according to Fiserv), you'll come out even or ahead.

To get a handle on the direction of your market, check http://www.kwrealestate.listingbook.com to see whether inventory levels are increasing, and visit realtytrac.com to find out whether foreclosure filings are still rising. A glut of properties and bank-owned homes means a recovery may not be in sight.

How quickly can you sell the home you now own?

Even in markets that are recovering, sellers must price aggressively to make a fast deal.

"Everybody thinks their house is worth more than it is," says Dallas realtor Bruce Lynn. Before you sign a contract for a new place, ask a few agents to give you a realistic figure that will generate a quick sale. Can't bear to part with your home at that price? Waiting may be your only option.

Also keep in mind that, with the credit crunch not far in the past, lenders may not approve your purchase until you've sold your home. A delay in sale could also stick you with two mortgages, far outstripping any savings from the tax credit.

See if the sellers will let you put a contingency in the contract that negates the sale if you don't find a buyer -- it's a long shot but worth a try. If they won't, propose adding a kick-out clause that allows the sellers to keep their home on the market, but lets you either pull out or quickly move ahead with the deal if they get another offer.

Source: Money Magazine

While extra contract negotiations may be a hassle, the past few years have proved that a purchase decision shouldn't be taken lightly. "This may be the best time in history to buy a home," says Denver realtor Jeff Fogler, "but only if you can really afford it."


While are markets are Real Estate Markets, Not All Real Estate Markets Are The Same.

Understanding any Real Estate Market requires all the tools and skills available to a Realtor.


If you have questions you can always ask me - anytime.


Ken Webb - Realtor


Ken Webb - Realtor/Agent OCAR, NAR, CAR F1RST TEAM Real Estate Email: kenwebb@firstteam.com Phone/Text: (949) 243-6649 DRE Lic # 01844181

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"The finest compliment I could ever receive is a referral from my friends and clients"


Wednesday, March 3, 2010

Real Estate News Updates - Urgent & Important


Daily Real Estate News | March 3, 2010 |
It's Getting Easier to Get a Jumbo Loan
The jumbo loan market is starting to ease up, maybe even a thaw, making it easier for move-up buyers to borrow and get their hands on a JUMBO LOAN.

Rates on jumbo loans of more than $729,750 in the highest-priced markets went up during the financial crisis and lending standards tightened and squeezed to the point where borrowers couldn’t refinance or even get a new loan.

In the last couple of weeks, the average interest rate on a 30-year fixed-rate jumbo fell to 5.79 percent, a five-year low, according to rate tracker Informa Research Services. Rates are even lower on hybrid adjustables.

The availability of these loans suggests that banks are feeling more confident since Fannie Mae, Freddie Mac, and the Federal Housing Administration do not insure them.

Source: Los Angeles Times, E. Scott Reckard (02/28/2010)





Daily Real Estate News | March 3, 2010 |
Boomers Ready for Retirement Housing
New news and according to John Migliaccio, director of research for MetLife's Mature Market organization, more than 78 million baby boomers, born between 1946 to 1964, will reach age 55 over the next 10 years.

John and other trend spotters believe this dominant group of home owners will lead the industry out of its slump.

Baby Boomers approaching retirement continue to be interested in buying into active-adult communities, but their moves are slowed due to a decline in the value of both their retirement savings and their current homes. To encourage seniors to find a way, 51 percent of builders of active-adult housing cut prices in the third quarter of 2009 – often as much as 25 percent or more – according to a survey by the National Association of Home Builders.

Practitioners point out that new isn’t always best. Buying an existing home in an active adult community can be a particularly good deal because these communities have extensive amenities, including golf courses and gyms. Some new construction projects on which builders have trimmed prices are not nearly as well equipped.

Source: Investor’s Business Daily, Joe Gose (02/25/2010)






Daily Real Estate News | March 3, 2010 |
The Road to Wealth Is Well Wired
Cities with the most highly educated residents and commensurately high incomes also are the most wired, a factor that is increasingly important as the economy moves online.

Forbes magazine compiled a list of the most-wired cities by considering the percentage of Internet users with high-speed connections, the number of companies providing broadband Internet in the area and the number of public wireless hotspots.

The top-10 cities are:
• Raleigh, N.C.
• Atlanta
• Seattle
• San Francisco
• Washington, D.C.
• Colorado Springs, Colo.
• Denver
• Baltimore
• Orlando
• Portland, Ore.

Source: Forbes, Elizabeth Woyke (03/02/2010)







Daily Real Estate News | March 3, 2010 |
CitiMortgage Tests New Foreclosure Alternative
Major lender CitiMortgage is testing a new way to take back properties that skirts foreclosure and promises to avoid the problems associated with eviction.

In this transaction, known as deed in lieu of foreclosure, the home owner turns over the deed to the bank in exchange for the lender’s promise not to foreclose. Typically, the borrower can remain in the property for a short period of time until they are able to move, but they must leave the home in good condition.

To qualify, Citi borrowers must be 90 days late on their payments and they must have only one lien on the property.

Citi is only expecting about 1,000 borrowers to qualify for the program because most people facing foreclosure have second mortgages.

Source: The New York Times, Bob Tedeschi (02/28/2010)





Daily Real Estate News | March 3, 2010 |
Mortgage Windfall Misses Many
Erosion of home equity, stricter lending criteria, higher fees, and declining incomes have prevented many mortgage borrowers from refinancing.

About 37 percent of borrowers with 30-year conforming fixed loans have rates of 6 percent or higher, but data from the Mortgage Bankers Association and other organizations shows muted refi activity for current rates at near-historic lows of about 5 percent.

Refi activity has been limited to borrowers who need it the least; savings have largely gone to "very, very good credit borrowers and it really isn't going very far down the credit spectrum," says MBA's Michael Fratantoni.

Source: Wall Street Journal Nick Timiraos (03/03/10)


March 3, 2010 By George Ratiu, Research Economist
Daily Forecast Update
• GDP 2010 Q1: +2.4%
• GDP 2010 Q2: +2.1%
• GDP 2010 Q3: +2.5%
• Unemployment rate by mid-2010: 10.1%
• Average 30-year fixed mortgage rate by mid-2010: 5.4%
What does today's data mean for REALTORS® and consumers?
• In a positive development, business activity in service industries is growing. For the second month in a row, purchasing and supply executives indicated that activity and new orders are expanding. In addition, the decline in service employment is slowing.
• Also, a report issued by ADP, a private payroll processing firm, showed that employment declined by fewer jobs than anticipated. A bright spot in the report was provided by manufacturing employment, which expanded in February.
• Spurred by a drop in interest rates below 5.0 percent, mortgage applications posted a noticeable jump last week, driven by strong refinancing activity.
Institute for Supply Management Non-Manufacturing Index (ISM-NMI)
• The ISM-NMI reached 53.0 in February, a second consecutive advance. The index posted a value of 50.5 percent in January. A level of 50 or higher indicates expansion in the services sector. Based on February’s reading, the economy is in a moderate expansion mode.
• The Business Activity index grew 2.6 points to 54.8 percent in February, while the Employment Index advanced four points to 48.6 percent. The New Orders Index also increased, to 55.0 percent, a 0.3-point gain
• Based on industry category, February had nine industries with growth patterns: Information; Arts, Entertainment & Recreation; Transportation & Warehousing; Public Administration; Professional, Scientific & Technical Services; Other Services; Retail Trade; Wholesale Trade; and Finance & Insurance.
• Meanwhile, there were eight industry sectors that contracted month-over-month: Educational Services; Health Care & Social Assistance; Management of Companies & Support Services; Construction; Utilities; Accommodation & Food Services; Real Estate, Rental & Leasing; and Mining.
Mortgage Bankers Association Weekly Mortgage Applications
• Mortgage applications for home purchases and refinances, as measured by the Market Composite Index, increased 14.6 percent in the past week.
• The Refinance Index, tracking applications for refinance, jumped 17.2 percent from the previous week. The Purchase Index advanced 9.0 percent.
• Mortgage refinancing activity comprised 69.1 percent of total applications.
• Mortgage rates (fixed-rate 30-year), according to the survey, declined to 4.95 percent nationally, from 5.03 last week.
ADP Employment
• ADP reported that private nonfarm employment decreased 20,000 from January to February.
• Employment in the service sector gained 17,000 jobs in February. The goods-producing sector lost 37,000 jobs. Notably, within this sector, employment in manufacturing industries added 3,000 jobs.

This is one in a series of commentaries by the Research staff of the National Association of REALTORS®




California New-Home Production Rebounds in January, CBIA Announces
February 24, 2010 

SACRAMENTO – New-home building in California rebounded in January from a year earlier, but homebuilding officials cautioned against calling it a recovery as the numbers for January 2009 were extremely low, the California Building Industry Association announced today. 

“It’s great to see some positive activity in the homebuilding industry, but given the fact that we’re comparing this month to one of the lowest months on record doesn’t exactly bring a housing recovery to mind,” said Liz Snow, CBIA’s President and CEO. “Still, it’s nice to see some increase in homebuilding activity.” 

According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 2,979 total housing units in January, up 48 percent from the same month a year ago but down 18 percent from December. Permits for single-family homes totaled 1,908, up 50 percent from January 2009 but down 28 percent from the previous month, while multifamily permits totaled 1,071, up 45 percent from a year ago and up 11 percent from December. 

Ben Bartolotto, Research Director for CIRB, noted that the monthly decreases from December to January were typical as January is usually one of the weakest months for housing starts. He also noted any enthusiasm for the year-over-year increases seen in January should be tempered with the fact that the numbers for January 2009 were extremely low and posted the lowest annual rate on record. 

CIRB is forecasting a modest recovery for 2010 with permits being pulled for 52,000 total units, up slightly from the record-low 36,289 permits pulled in 2009. 

Snow added that in order to capitalize on the strong start for 2010, lawmakers should enact the new homebuyer tax credit proposed under Governor Schwarzenegger’s jobs package as soon as possible to keep the positive momentum going. 

“The tax credit proposal will give a much needed shot in the arm to the housing industry and help build on this momentum by stimulating the housing market, clearing out inventory, and reigniting job-generating home construction,” said Snow. “Recent studies show that a healthy housing industry is a prolific job and economic generator, contributing hundreds of thousands of jobs and billions of dollars to the state’s economy each year. Enacting the credit would go a long way towards putting more people back to work and jumpstarting a recovery in our overall economy.”
###
The California Building Industry Association is a statewide trade association representing thousands of homebuilders, remodelers, subcontractors, architects, engineers, designers, and other industry professionals. More information is available on the Association's Web site, www.cbia.org. 

The Construction Industry Research Board (CIRB) is a nonprofit research center established in 1974 to provide statistical information on the California building and construction industry. More information is available on the CIRB Web site, www.cirbdata.com.

2010 HOME BUYER'S FAIR



Whether you're a first-time home buyer, or hoping to invest in foreclosures, the Southern California Home Buyer's Fair, sponsored by the Los Angeles Times and the CALIFORNIA ASSOCIATION OF REALTORS®, offers a free, two-day primer on the home-buying process. This must-attend event is packed with more than 50 educational "how-to" seminars and a large exhibit hall, designed to help you navigate today's real estate market with confidence and peace of mind.

The Southern California Homebuyer's Fair


is sponsored by the Los Angeles Times and the CALIFORNIA ASSOCIATION OF REALTORS®.

LOCATION: The Los Angeles Convention Center in downtown Los Angeles; 1201 S. Figueroa St., Los Angeles, CA 90015.

DATE: 
Saturday, March 13, 2010
Sunday, March 14, 2010

ADMISSION: Free to the public.

EVENTS: More than 50 educational "how-to" seminars designed to help home buyers navigate today's real estate market with confidence and peace of mind.

EXHIBITORS: The Southern California Home Buyer's Fair also will feature more than 65 exhibit booths where visitors can obtain information from industry experts about a vast range of programs pertaining to homeownership and the home-buying process.

Housing Trends eNewsletter




Housing Trends eNewsletter



Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.

Please click on this link to view the MARCH-2010 Newsletter Newsletter Housing Trends eNewsletter:
http://kenwebb.housingtrendsenewsletter.com?Newsletter_ID=246&Period_ID=183

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau, Realtor.org reports and other sources.

It also includes press releases with charts and videos, key market indicators and real estate sales and price statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.

If you are interested in determining the value of your home, click the “Home Evaluator” link for a free evaluation report:

http://kenwebb.housingtrendsenewsletter.com/dispContent.cfm?loadid=2&loadtype=0

Sound decisions can only be made with accurate and reliable information, and I am happy to be a trusted resource for you. Thank you for the opportunity to provide you with this monthly eNewsletter, and I look forward to answering any questions you may have and to the opportunity to be your REALTOR® in the future.

Sincerely yours,

Ken Webb
First Team Real Estate & KW, Realtor
17 La Mirage Circle Aliso Viejo CA 92656
949-885-9019 | 949 243-6649
kenwebb@me.com

Updates - Orange County and National Real Estate News