The Cost of Waiting to Buy!

The financial news is full of stories warning about the inability to predict the bottom of the stock market. A 40% decrease in stock prices in one year have uncovered some great values available for investors and buying them at their absolute lowest price will not make much difference for the people who hold them for a while.

Home prices are very much the same. There has been a correction in the market and prices are down in most parts of the country. Combine these with the attractive rates currently available and it is a bargain that everyone will look back on saying that "this was the best time to buy."

Let's make an assumption that the prices may still decline 5% more before they start appreciating again. If while a buyer was waiting for the price on a $250,000 to go down 5% to $237,500, and the interest rate goes up one percent from 5.25% to 6.25%, which is entirely possible, the buyer's monthly payments will increase almost $79 per month.

(See chart at the top of the page)

For most buyers, the monthly payment to control the cost of the home is much more important than the price paid or even the equity in the home.

Give us a call and we can research some of the wonderful Homes out there, at amazing prices, that you may not see again.

Your Dream Home is now Affordable!

Good News if you Own a Condo

FHA previously regarded condos as multi-family units, requiring the entire building be FHA approved.
But with FHA Modernization, condos now will be treated like a single family home, making buying easier.

Summary of Real Estate Changes You Should Know About

1. The Tax Credit
Tax credits are special provisions that reduce income tax liability on a dollar for dollar basis. Credits are claimed on an individual's income tax return. In this case, Congress has created a tax credit for first time homebuyers. The maximum credit amount is $7,500. Si if you normally, do not get a refund, you will get an approx $7500 refund! THIS IS AN INCENTIVE AND PART OF THE HOUSING BILL SIGNED BY THE PRESIDENT TO HELP WITH THE HOUSING SLUMP.

Who can use the new tax credit?
Only first time homebuyers are eligible to use the credit.A first time homebuyer is definedas an individual who has not had an ownership interest in a principal residence in the previous three years.

Is there an income restriction?
Yes. Single or head of household are eligible if their income is no more than $75,000. Individuals who file a joint return may have income of no more than $150,000.

Is the amount of the credit ties to the price of the home?
Yes. The credit is for 10% of the cost of the home, up to a maximum credit of $7,500. If a home cost $65,000, the allowable credit would be $6500. If a home cost $120,000, the allowable credit would be $7500. The amount of the credit is the same for all taxpayers, married or single.

2. FHA and Condos:
Among FHA reforms, FHA previously regarded condos as multi-family units, requiring the entire bldg to be FHA approved, but now condos will be treated like a single family home, making buyibg easier.

3. Fannie Mae/Freddie Mac Bailouts:
The National association of Realtors Chief economist, Lawrence Yun, said the move would bring stability & help restore market confidence. It should lower interest rates and encourage lenders to expand mortgage loan operations, both of which should help the housing market.

4. Foreclosure Relief:
An estimated 400,000 struggling homeowners could avoid foreclosure with a new FHA program, Hope for Homeowners. The program began October 1, 2008 and ends September 30th, 2011. With $300 billion in federal funding, FHA will help homeowners with problematic sub prime loans to refinace to an FHA insured, 30 year fixed rate mortgage. One caveat is that lenders must agree to write down the loan to 90% of the appraised value. Eligible mortgages are those originated on or before January 2008, and borrowers must have a debt to income ratio of higher than 31%. For their part, homeowners must agree to share future equity of the home with FHA when the home is sold or refinanced. After 5 years, the equity split is 50%.

From the Good News Channel....

The Bottom Line is Good News!

Put it all together and what do we have? A recovering economy will help consumer and business spending to turn the corner and the economy to move to a self-sustaining pace. But it requires a catalyst to get things started. The tumbling housing market and subprime mortgage defaults have caused financial markets to freeze and have pushed the economy into a recession. However, recent rising home sales and some sustained momentum will bring the economy back into the fold.

Rising home sales will also thin out the housing inventory and begin stabilizing home prices. The credit market will start to unfreeze once home prices have passed bottom. Simply, the economy will not recover without a housing market recovery.

Fortunately, policymakers and both Presidential candidates clearly recognize the need to get the housing market moving. The two housing stimulus bills (homebuyer tax credit and higher loan limits), $700 billion Treasury plan and the Federal Reserve's actions are designed to assure steady mortgage flow and help revive the housing sector.

With it, the economy will expand and create jobs. America and its exceptional ingenuity always find a way to move past crises and back to economic prosperity.

Sign of The Times

Haunted Houses

Real Estate Humor

Don’t Let the Cat Out.

Realtors have many stories to tell about showing Homes… Here is one: I was showing my clients a two-story home, and as we walked back down the stairs we saw a cat run out the front door. I was mortified that I failed to close the front door and let the cat escape. Luckily, my clients were very understanding and spent 20 minutes helping me chase and capture the cat. Successful in our pursuit, we returned the cat to the house and went on our way. But the story doesn’t end there—the listing agent called me that night to find out if I knew anything about the strange cat the sellers found in their home when they returned from work.

Reasons not to Mess with Children.

A little girl was talking to her mean teacher about whales.
The teacher said it was physically impossible for a whale to swallow a human because even though it was a very large mammal its throat was very small.
The little girl stated that Jonah was swallowed by a whale.
Very Irritated, the teacher reiterated that a whale could not swallow a human;
it was physically impossible.

The little girl said, "When I get to heaven I will ask Jonah".
The teacher asked, "What if Jonah went to hell?"
The little girl replied, "Then you ask him. "

Need More Reasons Why 'NOW' is a Good Time to Buy a Home?

1. When you have a family, it’s always a good time to buy.

2. In this market, there are a lot of options

3. It didn’t make sense for us to spend the same amount of money renting something when we could own it.

4. Working with a REALTOR® took all of the guess work out.

5. This is the best market in years in terms of choice.

6. Interest rates are at historic lows.

7. Home choices have increased and prices are favorable.

8. If we didn’t buy now, we would have missed the opportunity on this home.

9. Buying a house is the best investment anyone can ever make.

10. It’s a great move-up market.