The real estate recovery continues to roll along with a big 7.4 percent jump in home resales last month, according to the National Association of Realtors.
The current sales pace is 44 percent higher than it was the year before, including detached single family homes, townhouses, condos and cooperatives.
Equally important: Sales are up in every region of the country. They rose by 6.6 percent last month in the Northeast, 8.4 percent in the Midwest, 5 percent in the South, and nearly 11 percent in the West.
And for the second month in a row, sales totals were higher in all price classes. For most of the year, by contrast, only lower and moderate priced houses saw sales gains, while higher cost properties languished on the market. Now they're moving too.
Unsold inventories of houses also are down this year -- 16 percent below where they were the year before.
Lawrence Yun, chief economist for the National Association of Realtors, said a last-minute rush by buyers hoping to close on properties before the scheduled November 30 deadline for the $8,000 first time buyer credit added a lot of sales to the impressive November total.
Congress extended the November 30th closing deadline for the first-time buyer credit until June 30th of next year -- and added a new $6,500 credit for repeat purchasers to the mix.
Vicki Cox Golder, president of the National Association of Realtors, said the current combination of low prices, low mortgage rates and the tax credits has created an exceptionally attractive environment for buyers around the country.
“It really doesn't get any better for buyers,” she said, provided of course that they have “secure jobs and long-term ownership plans.”
Meanwhile, Fannie Mae's year-end forecast for 2010 suggests that sales of existing homes next year should jump by another 10 percent over this year, and new home sales should be 26 percent higher.
Like other forecasters, Fannie Mae sees rising mortgage rates hovering on the horizon, but not so high that they will scare away serious purchasers.
The Mortgage Bankers Association expects 30-year fixed rates to exceed 5.2 percent in the months ahead, up from about 5 percent in the latest week.
Even Federal Reserve chairman Ben Bernanke apparently is banking on higher mortgage rates as the economy warms up next year. The Wall Street Journal reports that Bernanke has refinanced out of an adjustable-rate loan on his Washington D.C. home and into a more secure 30 year fixed rate around 5 percent.
This article was published in Realty Times
Written by: Kenneth R. Harney, December 29, 2009
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Thursday, December 31, 2009
Monday, December 28, 2009
Real Estate Resolutions 2010
Sure you can lose weight, get in shape, launch a business or find a new job.
But haven't you also procrastinated long enough about buying a home?
How long has it been since you upgraded your home with a new roof, spiffed up landscaping or pulled some other home improvement?
And that post-World War II ranch home of yours could certainly use a few energy efficient do-overs.
Look to low mortgage interest rates, bargain home prices and other favorable market conditions to give you the resolve to consider home sweet home in your list of must-dos next year.
• Join the nearly 18 percent of Americans who say they've resolved to become a first-time homebuyer in 2010, according to a new Move.com survey. That's both a smart move and a timely one. Mortgage rates are at record lows, prices are down and the $8,000 first-time home buyer tax credit has been extended until April 30, 2010. It's also been expanded to include a $6,500 tax credit to move-up buyers.
• More than 15 percent of those who responded to the survey said saving money to purchase a new home is their top real estate resolution for the New Year. Resolve with them to learn the best way to budget, plan ahead and save money.
• Nearly 40 percent say No. 1 on their list of resolutions is starting a home improvement. Cheap home equity money should help them not only start, but also complete the job. Calabasas, CA-based Informa Research Services found home equity lines of credit (HELOCs) for $50,000, with an 80 percent loan-to-value note, were available in early December at an average variable rate of 4.98 percent. Some rates were as low as 2.74 percent.
• The Move.com survey also found 9.1 percent most wanted to fix their credit so they can buy a home next year. To get started all you need to do is take a look at your next credit card statement for a toll free number directing you to counseling help. That's part of the new, but little-known mandated disclosure provisions in the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act).
• Nearly 16 percent are wisely considering buying an investment property as their top resolution. The couldn't have picked a better time in the last half decade. Another Move.com survey recently found more than 12 percent of homebuyers today plan to purchase a home as an investment, compared to less than half, only 5.6 percent, just seven months ago, thanks to more attractive investment conditions.
"If you anticipate inflationary conditions in the future, investment property could be a good bet to hedge against it," said Nancy Osborne, chief operating officer of Erate.com, a Santa Clara, CA-based financial information publisher and interest rate tracker.
This article was published in Realty Times
Written by: Broderick Perkins, December 24, 2009
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
But haven't you also procrastinated long enough about buying a home?
How long has it been since you upgraded your home with a new roof, spiffed up landscaping or pulled some other home improvement?
And that post-World War II ranch home of yours could certainly use a few energy efficient do-overs.
Look to low mortgage interest rates, bargain home prices and other favorable market conditions to give you the resolve to consider home sweet home in your list of must-dos next year.
• Join the nearly 18 percent of Americans who say they've resolved to become a first-time homebuyer in 2010, according to a new Move.com survey. That's both a smart move and a timely one. Mortgage rates are at record lows, prices are down and the $8,000 first-time home buyer tax credit has been extended until April 30, 2010. It's also been expanded to include a $6,500 tax credit to move-up buyers.
• More than 15 percent of those who responded to the survey said saving money to purchase a new home is their top real estate resolution for the New Year. Resolve with them to learn the best way to budget, plan ahead and save money.
• Nearly 40 percent say No. 1 on their list of resolutions is starting a home improvement. Cheap home equity money should help them not only start, but also complete the job. Calabasas, CA-based Informa Research Services found home equity lines of credit (HELOCs) for $50,000, with an 80 percent loan-to-value note, were available in early December at an average variable rate of 4.98 percent. Some rates were as low as 2.74 percent.
• The Move.com survey also found 9.1 percent most wanted to fix their credit so they can buy a home next year. To get started all you need to do is take a look at your next credit card statement for a toll free number directing you to counseling help. That's part of the new, but little-known mandated disclosure provisions in the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act).
• Nearly 16 percent are wisely considering buying an investment property as their top resolution. The couldn't have picked a better time in the last half decade. Another Move.com survey recently found more than 12 percent of homebuyers today plan to purchase a home as an investment, compared to less than half, only 5.6 percent, just seven months ago, thanks to more attractive investment conditions.
"If you anticipate inflationary conditions in the future, investment property could be a good bet to hedge against it," said Nancy Osborne, chief operating officer of Erate.com, a Santa Clara, CA-based financial information publisher and interest rate tracker.
This article was published in Realty Times
Written by: Broderick Perkins, December 24, 2009
Thinking about Buying or Selling?
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Or visit our website: www.LivingLakeTahoe.com
Wednesday, December 23, 2009
Move-Down Buyers Can Be Eligible For Tax Credit Too
Move up, move down, move sideways; it just doesn't matter. Whichever direction you move, financially, you may still qualify for the new tax credit available to current homeowners. It is unfortunate that the credit has too often been characterized as a credit for "move-up" homeowners. The phrase carries the implication that the new home must cost more than the sale price of the former one. Indeed, even the November 6 White House Press Release said that the credit would be available to qualified homeowners who "wish to step up to a new home." Same implication.
So, it is worth emphasizing that the credit is equally available to homeowners who are moving down, cost-wise.
The move-down homebuyer is not an unusual phenomenon. For years retirees have been known to move from a larger home to one that is smaller and often less expensive. Moreover, it is reasonable to think that current economic conditions may lead to even more move-down buyers. Just as thousands of families have found it necessary or desirable to downsize with respect to their cars and their general lifestyle, so it may be when it comes to considering the costs of owning and maintaining a larger house than they really need.
The same requirements apply to both move-down and move-up buyers.
First of all, the previous home must have been occupied as the buyer's principal residence for at least five consecutive years out of the past eight years. Two examples: (1) Suppose that during the past eight years you occupied the property for three years, then rented it out for two years (perhaps because of a job transfer or temporary assignment), and then occupied it again for three years up until now. Even though you had occupied the property as your principal residence for six of the past eight years, you would not be eligible because you had not occupied it for five consecutive years. (I'm not saying this makes sense; I'm just reporting on the requirements.) (2) Suppose you bought a home eight (or more) years ago, you occupied it as a principal residence until two years ago when you sold it. Would you qualify? Yes, because you had occupied it as a principal residence for at least five consecutive years of the past eight.
There are important issues of timing as well. You must have purchased (that is closed on) the replacement home sometime after 11/6/2009 and before 4/30/2010. With one exception: the new home will also qualify if you had entered into a binding contract no later than April 30, 2010 and you closed no later than June 30, 2010.
The time the previous home sold doesn't matter. Indeed, it doesn't even have to be sold. You might, for example, keep it as a rental.
The tax credit is for 10% of the purchase price up to a maximum credit of $6,500 for joint filers and $3,250 for those filing separately. There is a full credit for singles whose income does not exceed $125,000 and for couples whose income is no more than $225,000. A phase-out applies to higher incomes up to $145,000 and $245,000 respectively.
The cost of the new home may not exceed $800,000.
The new home must be used as a principal residence for a three year period subsequent to closing, or else the credit must be repaid.
This program won't help everyone, of course; but it's pretty nice for those to whom it applies.
Published in Realty Times
Written by Bob Hunt
December 22, 2009
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So, it is worth emphasizing that the credit is equally available to homeowners who are moving down, cost-wise.
The move-down homebuyer is not an unusual phenomenon. For years retirees have been known to move from a larger home to one that is smaller and often less expensive. Moreover, it is reasonable to think that current economic conditions may lead to even more move-down buyers. Just as thousands of families have found it necessary or desirable to downsize with respect to their cars and their general lifestyle, so it may be when it comes to considering the costs of owning and maintaining a larger house than they really need.
The same requirements apply to both move-down and move-up buyers.
First of all, the previous home must have been occupied as the buyer's principal residence for at least five consecutive years out of the past eight years. Two examples: (1) Suppose that during the past eight years you occupied the property for three years, then rented it out for two years (perhaps because of a job transfer or temporary assignment), and then occupied it again for three years up until now. Even though you had occupied the property as your principal residence for six of the past eight years, you would not be eligible because you had not occupied it for five consecutive years. (I'm not saying this makes sense; I'm just reporting on the requirements.) (2) Suppose you bought a home eight (or more) years ago, you occupied it as a principal residence until two years ago when you sold it. Would you qualify? Yes, because you had occupied it as a principal residence for at least five consecutive years of the past eight.
There are important issues of timing as well. You must have purchased (that is closed on) the replacement home sometime after 11/6/2009 and before 4/30/2010. With one exception: the new home will also qualify if you had entered into a binding contract no later than April 30, 2010 and you closed no later than June 30, 2010.
The time the previous home sold doesn't matter. Indeed, it doesn't even have to be sold. You might, for example, keep it as a rental.
The tax credit is for 10% of the purchase price up to a maximum credit of $6,500 for joint filers and $3,250 for those filing separately. There is a full credit for singles whose income does not exceed $125,000 and for couples whose income is no more than $225,000. A phase-out applies to higher incomes up to $145,000 and $245,000 respectively.
The cost of the new home may not exceed $800,000.
The new home must be used as a principal residence for a three year period subsequent to closing, or else the credit must be repaid.
This program won't help everyone, of course; but it's pretty nice for those to whom it applies.
Published in Realty Times
Written by Bob Hunt
December 22, 2009
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Monday, December 21, 2009
Spectacular Lake View Home in Lake Tahoe!
Great News for Buyers! If you are looking for a beautiful lake view property in Lake Tahoe...We have a spectacular custom built home for you!
Enjoy the beautiful lake and mountain views from this gorgeous custom built home, beautifully sited on a quiet cul-de-sac. The second level offers a spacious family room with a river rock gas log fireplace and easy access onto the deck, where you can relax in a steaming hot tub. Three bedrooms, two bathrooms, utility room with sink and a sauna also share this floor. On the upper level the great room boasts a stunning river rock gas log fireplace, cathedral beamed ceilings, quality built-in cabinets, slate flooring and upper deck access. Perfect for entertaining, the well-appointed kitchen features granite slab countertops, breakfast bar, dumbwaiter, wood flooring and is open to the dining area and great room. There is convenient access to the back deck from the dining area. The spacious master bedroom offers built-in cabinets with desk and upper deck access. Additional features include a Jacuzzi tub and a large walk-in closet in the master bath, wine cooler in the dining area and instant hot water throughout the home. Don’t miss out on this virtually perfect mountain home!
Call Us For Details!
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Or visit our website: www.LivingLakeTahoe.com
Thursday, December 17, 2009
Should I Take My Home Off the Market During the Holidays?
When you look at your calendar you may find the months already overloaded with seasonal obligations -- shopping, entertaining, children's pageants, charity work, decorating the house, and so much more. If you are also trying to sell your home, you are under extra pressure to keep your home in "showtime" condition. And that could be the last thing you need before the holiday spirit is broken.
It is understandable why you would be tempted to take your home off the market during the holidays. And the list of justifications is long. If you are too busy, buyers may be also, and you may find your efforts unrewarded with not enough showings. And what if you do get an offer? You may be faced with the possibility of packing and moving during the busiest time of the year. Besides, you can give your house a rest, and it will have better momentum after the holidays. Better to just pack it in and start fresh in January, right?
But wait! Most top Realtors agree that taking your home off the market during the Christmas season is a mistake. The house surely isn't going to sell off the market! What is the advantage of that? So you're busy. Let your Realtor do the work. You can leave in the morning, go to work, go shopping, and let your Realtor take care of things.
The holidays are a wonderful selling period. Why? Because most people take off work sometime during the season. The husband and wife are both off and want to see houses. Most agents like the holidays because the buyers have more time, and they can look at homes together.
Before you take your home off the market, consider the following points:
* Although buyer activity may appear to slow down, the buyers who are actively looking during the holidays are that much more serious. Agents believe the home market is no more affected at Christmas than during other "busy" periods. If that were so, the market would shut down throughout the year as families concentrate on spring weddings, June graduations, summer vacations, and autumn back-to-school activities.
* Many buyers deliberately choose to shop for a home after the busy spring and summer rush. They know that it will be easier to look, and that negotiations will be less stressful. They may not have children, or they may have grown children, so moving to accommodate the school year isn't a consideration. Finding the right home at the right price, however, is.
* Relocating families often don't have a choice when they can leave for their new destination. Although 68% of transferring families have children, many families have to transfer during the middle of the school year. These families are that much more motivated to get their families settled in before either the January semester begins, or to arrange for the move during spring break in March. If you sign a contract by New Year's Eve, the timing couldn't be more perfect.
* At Christmas time, our culture focuses on family and the home. Preparing for the indoor activities of winter is one of the most enjoyable periods of family life. Allowing buyers to view your home during this most hospitable of seasons lets them better picture their own family life in the attractive environment you have created.
* When is your home ever more beautiful and inviting? You have cleaned and decorated, and your home looks like a picture postcard. If the results are good enough for family and friends, they will surely be good enough to impress your buyers. Get the family team on board to do a five-minute blitz pick-up every morning to keep holiday messes to a minimum.
* With many motivated buyers in the marketplace, you may find you have more showings than you would if you sold your home during a busier time of the year.
* If you do get a contract, you can arrange the terms to suit your needs. If moving during the holidays isn't an option, you can put in the closing date of your choice. Most people can close 30 to 60 days after a contract is written, so there is plenty of time. Possession and closings are very negotiable.
This article published in Realty Times
Written by Blanche Evans
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
It is understandable why you would be tempted to take your home off the market during the holidays. And the list of justifications is long. If you are too busy, buyers may be also, and you may find your efforts unrewarded with not enough showings. And what if you do get an offer? You may be faced with the possibility of packing and moving during the busiest time of the year. Besides, you can give your house a rest, and it will have better momentum after the holidays. Better to just pack it in and start fresh in January, right?
But wait! Most top Realtors agree that taking your home off the market during the Christmas season is a mistake. The house surely isn't going to sell off the market! What is the advantage of that? So you're busy. Let your Realtor do the work. You can leave in the morning, go to work, go shopping, and let your Realtor take care of things.
The holidays are a wonderful selling period. Why? Because most people take off work sometime during the season. The husband and wife are both off and want to see houses. Most agents like the holidays because the buyers have more time, and they can look at homes together.
Before you take your home off the market, consider the following points:
* Although buyer activity may appear to slow down, the buyers who are actively looking during the holidays are that much more serious. Agents believe the home market is no more affected at Christmas than during other "busy" periods. If that were so, the market would shut down throughout the year as families concentrate on spring weddings, June graduations, summer vacations, and autumn back-to-school activities.
* Many buyers deliberately choose to shop for a home after the busy spring and summer rush. They know that it will be easier to look, and that negotiations will be less stressful. They may not have children, or they may have grown children, so moving to accommodate the school year isn't a consideration. Finding the right home at the right price, however, is.
* Relocating families often don't have a choice when they can leave for their new destination. Although 68% of transferring families have children, many families have to transfer during the middle of the school year. These families are that much more motivated to get their families settled in before either the January semester begins, or to arrange for the move during spring break in March. If you sign a contract by New Year's Eve, the timing couldn't be more perfect.
* At Christmas time, our culture focuses on family and the home. Preparing for the indoor activities of winter is one of the most enjoyable periods of family life. Allowing buyers to view your home during this most hospitable of seasons lets them better picture their own family life in the attractive environment you have created.
* When is your home ever more beautiful and inviting? You have cleaned and decorated, and your home looks like a picture postcard. If the results are good enough for family and friends, they will surely be good enough to impress your buyers. Get the family team on board to do a five-minute blitz pick-up every morning to keep holiday messes to a minimum.
* With many motivated buyers in the marketplace, you may find you have more showings than you would if you sold your home during a busier time of the year.
* If you do get a contract, you can arrange the terms to suit your needs. If moving during the holidays isn't an option, you can put in the closing date of your choice. Most people can close 30 to 60 days after a contract is written, so there is plenty of time. Possession and closings are very negotiable.
This article published in Realty Times
Written by Blanche Evans
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Wednesday, December 16, 2009
Tips for an Eco-Friendly Holiday
It's hard to believe, but according to Robert Lilienfeld, co-author of the book, "Use Less Stuff: Environmental Solutions for Who We Really Are," between Thanksgiving and New Year's Day, Americans throw away a million extra tons of garbage each week. During the season of giving, it sure seems like we're taking a lot from Mother Nature. Here are some suggestions of ways to go green this holiday season, and you just might save some green in the meantime.
Start with your gift giving. You may not have ever thought about it before, but some gifts are certainly more eco-friendly than others. Giving an experience, like tickets to a ballgame or an art exhibit, create much less waste than complicated toys and gadgets. And some of the best gifts can be homemade like cookies and cakes, or having guests over for a full home-cooked meal.
As you do begin wrapping up those presents for family and friends, consider recycling gift wrap. You can easily reuse gift bags, tissue paper, bows and even wrapping paper. For gift wrapping alternatives, think about using reusable items like scarves, handkerchiefs or bandanas. And if you just look around the house you'll probably find old posters, maps, sheet music, wallpaper scraps, magazine and newspaper cutouts, and comic pages which all work very well as wrapping paper.
If you need to ship your presents this year, avoid Styrofoam packing peanuts and try the biodegradable kind instead. You can also use crumpled up newspaper, or even dry, popped popcorn (insert a note inside the box letting the receiver know that they can later treat birds to it).
For many folks, the holidays just wouldn't be the same without a live, fragrant Christmas tree. As you search for that perfect tree, keep in mind that if you purchase a tree from a tree farm you're not damaging forests. Another option is purchasing a potted plant that can be enjoyed year round such as a Norfolk pine, fig or fichus. Artificial trees are also a good choice since they are reused every year and that saves on the gas you would spend driving to the tree farms.
To ignite your family with holiday cheer, be sure to purchase Christmas lights made with light-emitting diodes, or LEDs. These lights have been around since 2001 and are ninety percent more efficient than traditional Christmas lights. They also release little heat and last about 200,000 hours. According to one U.S. Department of Energy study, if all families replaced their conventional holiday light strings with LEDs, at least two billion kilowatt-hours of electricity could be saved in a month. The savings alone would be enough to power 200,000 homes for a year.
Once you've chosen your tree, get creative with the decorations. Give it your family's personal touch by decorating it with memorabilia such as a child's first shoe or grandma's hankie scented with perfume. There's no need to go out and purchase pricey ornaments when cookie cutters, pinecones, stuffed animals and toys, and miniature toy cars work just as well.
And start the New Year off on the right foot try treecycling. By recycling your fresh tree you can make a huge difference in reducing holiday waste. Instead of ending up in a landfill, Christmas trees can be ground into wood chips and be reused as mulch gardens, or to prevent erosion. If you visit Earth911.com, you can search your zip code to find the nearest Christmas tree recycling center near you.
This article was published in Realty Times
Written by: Tara Darby
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Start with your gift giving. You may not have ever thought about it before, but some gifts are certainly more eco-friendly than others. Giving an experience, like tickets to a ballgame or an art exhibit, create much less waste than complicated toys and gadgets. And some of the best gifts can be homemade like cookies and cakes, or having guests over for a full home-cooked meal.
As you do begin wrapping up those presents for family and friends, consider recycling gift wrap. You can easily reuse gift bags, tissue paper, bows and even wrapping paper. For gift wrapping alternatives, think about using reusable items like scarves, handkerchiefs or bandanas. And if you just look around the house you'll probably find old posters, maps, sheet music, wallpaper scraps, magazine and newspaper cutouts, and comic pages which all work very well as wrapping paper.
If you need to ship your presents this year, avoid Styrofoam packing peanuts and try the biodegradable kind instead. You can also use crumpled up newspaper, or even dry, popped popcorn (insert a note inside the box letting the receiver know that they can later treat birds to it).
For many folks, the holidays just wouldn't be the same without a live, fragrant Christmas tree. As you search for that perfect tree, keep in mind that if you purchase a tree from a tree farm you're not damaging forests. Another option is purchasing a potted plant that can be enjoyed year round such as a Norfolk pine, fig or fichus. Artificial trees are also a good choice since they are reused every year and that saves on the gas you would spend driving to the tree farms.
To ignite your family with holiday cheer, be sure to purchase Christmas lights made with light-emitting diodes, or LEDs. These lights have been around since 2001 and are ninety percent more efficient than traditional Christmas lights. They also release little heat and last about 200,000 hours. According to one U.S. Department of Energy study, if all families replaced their conventional holiday light strings with LEDs, at least two billion kilowatt-hours of electricity could be saved in a month. The savings alone would be enough to power 200,000 homes for a year.
Once you've chosen your tree, get creative with the decorations. Give it your family's personal touch by decorating it with memorabilia such as a child's first shoe or grandma's hankie scented with perfume. There's no need to go out and purchase pricey ornaments when cookie cutters, pinecones, stuffed animals and toys, and miniature toy cars work just as well.
And start the New Year off on the right foot try treecycling. By recycling your fresh tree you can make a huge difference in reducing holiday waste. Instead of ending up in a landfill, Christmas trees can be ground into wood chips and be reused as mulch gardens, or to prevent erosion. If you visit Earth911.com, you can search your zip code to find the nearest Christmas tree recycling center near you.
This article was published in Realty Times
Written by: Tara Darby
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Monday, December 14, 2009
Most Mortgage Rates Follow Bond Yields Higher This Week
McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.81 percent with an average 0.7 point for the week ending December 10, 2009, up from last week when it averaged 4.71 percent. Last year at this time, the 30-year FRM averaged 5.47 percent.
The 15-year FRM this week averaged 4.32 percent with an average 0.6 point, up from last week when it averaged 4.27 percent. A year ago at this time, the 15-year FRM averaged 5.20 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.26 percent this week, with an average 0.5 point, up from last week when it averaged 4.19 percent. A year ago, the 5-year ARM averaged 5.82 percent.
The 1-year Treasury-indexed ARM averaged 4.24 percent this week with an average 0.7 point, down slightly from last week when it averaged 4.25 percent. At this time last year, the 1-year ARM averaged 5.09 percent.
"Following an upbeat employment report, long-term bond yields rose slightly and fixed mortgage rates followed," said Frank Nothaft, Freddie Mac vice president and chief economist. "The economy shed only 11,000 jobs in November, far fewer than the market consensus forecast, and the unemployment rate unexpectedly fell to 10 percent. In addition, revisions added 159,000 jobs to September and October."
"Notwithstanding, rates on 30-year fixed mortgages are almost 0.7 percentage points below those at the same time last year. This translates into an $81 lower monthly payment on a $200,000 conventional mortgage."
This article was published in Realty Times, December 11, 2009
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
The 15-year FRM this week averaged 4.32 percent with an average 0.6 point, up from last week when it averaged 4.27 percent. A year ago at this time, the 15-year FRM averaged 5.20 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.26 percent this week, with an average 0.5 point, up from last week when it averaged 4.19 percent. A year ago, the 5-year ARM averaged 5.82 percent.
The 1-year Treasury-indexed ARM averaged 4.24 percent this week with an average 0.7 point, down slightly from last week when it averaged 4.25 percent. At this time last year, the 1-year ARM averaged 5.09 percent.
"Following an upbeat employment report, long-term bond yields rose slightly and fixed mortgage rates followed," said Frank Nothaft, Freddie Mac vice president and chief economist. "The economy shed only 11,000 jobs in November, far fewer than the market consensus forecast, and the unemployment rate unexpectedly fell to 10 percent. In addition, revisions added 159,000 jobs to September and October."
"Notwithstanding, rates on 30-year fixed mortgages are almost 0.7 percentage points below those at the same time last year. This translates into an $81 lower monthly payment on a $200,000 conventional mortgage."
This article was published in Realty Times, December 11, 2009
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Friday, December 11, 2009
New FHA Guidelines Could Amp Condo Sales
"FHA approved" may become the most popular condominium amenity in the United States soon, thanks to the new guidelines established by the FHA to take effect February 1, 2010.
The guidelines addressed the two imperatives facing condominium sales: down payments and the financial integrity of condominium associations. Both are equally important to a condominium recovery.
"FHA approved" used to mean a 3.5% down payment. Starting early next year, "FHA approved" will mean 3.5% down plus a financially stable association approved by your lender. This is huge.
According to Attorney Richard D. Vetstein, who writes the Massachusetts Real Estate Law Blog, the revised FHA Condominium Lending Guidelines include the following requirements:
To qualify for FHA mortgages, associations must:
*Maintain a reserve equal to 10 percent of the annual budget
*Make sure no more than 15 percent of its owners are more than 30 days late with condominium fees
*Allow lenders to review their financials and insurance policies
*No more than 10% of the units may be held by a single investor
*Fidelity insurance must be obtained for 20+ unit projects
*No more than 25 percent of space allowed for commercial use.
"The new FHA guidelines (combined with the almost year old Fannie Mae condominium guidelines) really make it imperative for condominium associations to get their collective acts together with respect to the financial management of the association," counsels Attorney Vetstein. "Condominium boards need to ensure that reserve accounts are adequately funded, condo fee delinquency rates are low and that the association is generally well run financially. If they don’t, they are contributing to a drag on market value for all units due to non-compliance with the new condominium guidelines.
For a new condominium to qualify for FHA financing the following guidelines apply:
Effective February 1, 2010:
*50 percent of the total units must be presold before FHA financing is approved
*50 percent of the total units must be owner occupied
*No more than 10% of units may be held by a single investor
*Unit owners must obtain individual HO-6 insurance policies if the master policy doesn’t cover interiors
*Recertification is required every two years
*Projects that received approval between October 1, 2008 and December 7, 2009 will be "grandfathered" and will have to follow the new guidelines’ recertification process .
The marketing benefits are significant:
1.More buyers will enter the market because they can afford the lower down payment.
2.No single investor can purchase more than 10% of the units, so the idea of a controlled association by one or two investors is no longer a threat.
3.More inventory will offer wider choices tending to keep prices in check, as "FHA approved’ condominiums come on line.
4.More real estate agents will be willing to show condominiums to their buyers, because the lender who provides the mortgage will have to approve not only the condo documents, but the condo association’s budget, reserve account and its fidelity insurance policy.
5.New construction developers have the guidelines needed to create urgency in their pricing strategies, which is key to building and maintaining momentum.
6.Commercial lenders will have a more comfortable level with developers. While the 50% presale requirement may look obtrusive, it is actually a benefit to the developer, because it will create urgency for buyers to purchase.
7.Established associations that have dragged their feet to get their finances in order, now have a valid value-based reason to become "FHA Approved."
8.Real estate agents will show FHA approved condominiums with confidence in the association’s finances, not just because the down payment is low.
9.Forward thinking lenders will hustle to become a "an approved lender’ in resale and new communities alike.
10.Knowing the property already has approved lenders will make competition for listings tighter and will attract more buyers and more prospects to the listing.
Brokers taking listings in condo communities without FHA financing will be competing with ones that do, making it important for associations to seriously consider becoming FHA approved.
First time home buyers are generally thought of as the primary market for FHA financing. There is something to that, but in today’s world, many who bought their first homes years ago and lost them during this recession will appreciate the FHA financing availability even more than those coming out of rentals.
For now let’s agree that the FHA is being responsive and fair by giving new homes developers livable guidelines, associations a tool to become financially stable, and all associated with the industry, hope.
There will no doubt be other changes as the market calls for them.
"FHA was given a difficult task under the Housing and Economic Recovery Act of 2008 (HERA) to revamp the approval process for condominium projects, and before it established its latest guidelines, invited and was open to industry experts from organizations like the Commuity Associations."
"As a result, significant improvements to the initial requirements have been made and dialogue continues between CAI and HUD in an attempt to create regulations that will lead to greater stability in the condominium market," Dawn Bauman, vice president of Strategic Initiatives for the Community Association Institute said.
CAI is an organization representing more than 29,000 individual members, 60 local chapters, and the interests of the one in five homeowners living in a community association.
For more information visit http://www.caionline.org/.
It’s good to see that the buyer’s interest is represented. It shows. And it will pay off handsomely in the days ahead.
For a complete review of guideline details visit here or contact Attorney Vetstein at info@vetsteinlawgroup.com.
This article was Published in Realty Times:
Written by David Fletcher
December 9, 2009
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
The guidelines addressed the two imperatives facing condominium sales: down payments and the financial integrity of condominium associations. Both are equally important to a condominium recovery.
"FHA approved" used to mean a 3.5% down payment. Starting early next year, "FHA approved" will mean 3.5% down plus a financially stable association approved by your lender. This is huge.
According to Attorney Richard D. Vetstein, who writes the Massachusetts Real Estate Law Blog, the revised FHA Condominium Lending Guidelines include the following requirements:
To qualify for FHA mortgages, associations must:
*Maintain a reserve equal to 10 percent of the annual budget
*Make sure no more than 15 percent of its owners are more than 30 days late with condominium fees
*Allow lenders to review their financials and insurance policies
*No more than 10% of the units may be held by a single investor
*Fidelity insurance must be obtained for 20+ unit projects
*No more than 25 percent of space allowed for commercial use.
"The new FHA guidelines (combined with the almost year old Fannie Mae condominium guidelines) really make it imperative for condominium associations to get their collective acts together with respect to the financial management of the association," counsels Attorney Vetstein. "Condominium boards need to ensure that reserve accounts are adequately funded, condo fee delinquency rates are low and that the association is generally well run financially. If they don’t, they are contributing to a drag on market value for all units due to non-compliance with the new condominium guidelines.
For a new condominium to qualify for FHA financing the following guidelines apply:
Effective February 1, 2010:
*50 percent of the total units must be presold before FHA financing is approved
*50 percent of the total units must be owner occupied
*No more than 10% of units may be held by a single investor
*Unit owners must obtain individual HO-6 insurance policies if the master policy doesn’t cover interiors
*Recertification is required every two years
*Projects that received approval between October 1, 2008 and December 7, 2009 will be "grandfathered" and will have to follow the new guidelines’ recertification process .
The marketing benefits are significant:
1.More buyers will enter the market because they can afford the lower down payment.
2.No single investor can purchase more than 10% of the units, so the idea of a controlled association by one or two investors is no longer a threat.
3.More inventory will offer wider choices tending to keep prices in check, as "FHA approved’ condominiums come on line.
4.More real estate agents will be willing to show condominiums to their buyers, because the lender who provides the mortgage will have to approve not only the condo documents, but the condo association’s budget, reserve account and its fidelity insurance policy.
5.New construction developers have the guidelines needed to create urgency in their pricing strategies, which is key to building and maintaining momentum.
6.Commercial lenders will have a more comfortable level with developers. While the 50% presale requirement may look obtrusive, it is actually a benefit to the developer, because it will create urgency for buyers to purchase.
7.Established associations that have dragged their feet to get their finances in order, now have a valid value-based reason to become "FHA Approved."
8.Real estate agents will show FHA approved condominiums with confidence in the association’s finances, not just because the down payment is low.
9.Forward thinking lenders will hustle to become a "an approved lender’ in resale and new communities alike.
10.Knowing the property already has approved lenders will make competition for listings tighter and will attract more buyers and more prospects to the listing.
Brokers taking listings in condo communities without FHA financing will be competing with ones that do, making it important for associations to seriously consider becoming FHA approved.
First time home buyers are generally thought of as the primary market for FHA financing. There is something to that, but in today’s world, many who bought their first homes years ago and lost them during this recession will appreciate the FHA financing availability even more than those coming out of rentals.
For now let’s agree that the FHA is being responsive and fair by giving new homes developers livable guidelines, associations a tool to become financially stable, and all associated with the industry, hope.
There will no doubt be other changes as the market calls for them.
"FHA was given a difficult task under the Housing and Economic Recovery Act of 2008 (HERA) to revamp the approval process for condominium projects, and before it established its latest guidelines, invited and was open to industry experts from organizations like the Commuity Associations."
"As a result, significant improvements to the initial requirements have been made and dialogue continues between CAI and HUD in an attempt to create regulations that will lead to greater stability in the condominium market," Dawn Bauman, vice president of Strategic Initiatives for the Community Association Institute said.
CAI is an organization representing more than 29,000 individual members, 60 local chapters, and the interests of the one in five homeowners living in a community association.
For more information visit http://www.caionline.org/.
It’s good to see that the buyer’s interest is represented. It shows. And it will pay off handsomely in the days ahead.
For a complete review of guideline details visit here or contact Attorney Vetstein at info@vetsteinlawgroup.com.
This article was Published in Realty Times:
Written by David Fletcher
December 9, 2009
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Wednesday, December 9, 2009
Lake View Condo In Lake Tahoe!
Great News for Buyers! Spectacular lake and ski slope views await you from this immaculate, turn-key condo. Over the 2007-08 winter season, the entire unit was painted from top to bottom, fully re-carpeted and the tile floors were replaced in the kitchen, master bathroom and the guest master bathroom. The living area on the upper level has a wonderful open floor plan with cathedral beamed ceilings and large view windows. Other features include a gas log fireplace in the living room, granite countertops in the kitchen and a mirrored wall in the dining area. With easy access from the living room or dining area, the deck is the perfect place to relax while you take in the incredible views and the sunny E/SE exposure minimizes the snow accumulation. Another great feature is the roomy loft area providing extra space for whatever your needs may be!
Call Us For Details!
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Monday, December 7, 2009
Diamond Peak Ski Resort - Your Tahoe Place for Kids!
Scheduled Opening Day is Dec 17th with $20 lift tickets if you live within a 50 mile radius of Diamond Peak and Free BBQ for season passholders.
At Diamond Peak Ski Resort in Incline Village, Lake Tahoe, you'll fall in love with our uncrowded mountain. It features stunning views of Lake Tahoe and offers a great learning environment for beginners as well as Solitude Canyon and other challenging terrain for experts. Family skiing at Lake Tahoe has never been better. Families love Diamond Peak for the Child Ski Center and our great deals, such as the Interchangeable Parent's Pass for $49. Diamond Peak is your Tahoe place for kids!
Diamond Peak Season Passes
At Diamond Peak, you will find some of the best value for season passes in the Lake Tahoe Basin. We offer great season pass holder perks year round. Purchase your 09/10 Diamond Peak Season Pass.
Learn to Ski and Ride
Diamond Peak offers great programs for learning how to ski and snowboard. Enjoy a new sport and an amazing Lake Tahoe ski or snowboard experience. it's the perfect place for first timers with gentle slopes and wide runs. Take lessons with family and friends, the more people you have the bigger the savings are. For more details, visit our Ski & Snowboard School or call (775) 832 1177. View a video of people learning here .
Burton Learn To Ride Center
Diamond Peak Ski Resort has teamed up with Burton Snowboards to make learning to snowboard easy and fun for everyone! Burton's specially designed boards are softer and easier to turn. Diamond Peak's professional instructors will get you turning in no time!
Child Ski Center
The Bee Ferrato Child Ski Center is ideal for children ages 3-7. Friendly, experienced instructors and an easy to use lift provide a pleasant introduction to the sport. Both one-on-one private instruction and small group lessons are available. All Day Value Package is $125. Learn More
Group Rates for Your Lake Tahoe Events
Groups of 10+ can ski for as little as $33 a day! Make Diamond Peak Ski Resort Your Tahoe Place - enjoy having the mountain to yourself. With 655 acres of terrain suitable for skiing, you can enjoy the peaceful serenity our un-crowded mountain has to offer. Learn More
See What Other People Say About Us
Check out customer reviews about Diamond Peak from Trip Advisor, Yelp! and more on our Diamond Peak testimonials page.
This information was posted on the Diamond Peak Ski Resort website.
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
At Diamond Peak Ski Resort in Incline Village, Lake Tahoe, you'll fall in love with our uncrowded mountain. It features stunning views of Lake Tahoe and offers a great learning environment for beginners as well as Solitude Canyon and other challenging terrain for experts. Family skiing at Lake Tahoe has never been better. Families love Diamond Peak for the Child Ski Center and our great deals, such as the Interchangeable Parent's Pass for $49. Diamond Peak is your Tahoe place for kids!
Diamond Peak Season Passes
At Diamond Peak, you will find some of the best value for season passes in the Lake Tahoe Basin. We offer great season pass holder perks year round. Purchase your 09/10 Diamond Peak Season Pass.
Learn to Ski and Ride
Diamond Peak offers great programs for learning how to ski and snowboard. Enjoy a new sport and an amazing Lake Tahoe ski or snowboard experience. it's the perfect place for first timers with gentle slopes and wide runs. Take lessons with family and friends, the more people you have the bigger the savings are. For more details, visit our Ski & Snowboard School or call (775) 832 1177. View a video of people learning here .
Burton Learn To Ride Center
Diamond Peak Ski Resort has teamed up with Burton Snowboards to make learning to snowboard easy and fun for everyone! Burton's specially designed boards are softer and easier to turn. Diamond Peak's professional instructors will get you turning in no time!
Child Ski Center
The Bee Ferrato Child Ski Center is ideal for children ages 3-7. Friendly, experienced instructors and an easy to use lift provide a pleasant introduction to the sport. Both one-on-one private instruction and small group lessons are available. All Day Value Package is $125. Learn More
Group Rates for Your Lake Tahoe Events
Groups of 10+ can ski for as little as $33 a day! Make Diamond Peak Ski Resort Your Tahoe Place - enjoy having the mountain to yourself. With 655 acres of terrain suitable for skiing, you can enjoy the peaceful serenity our un-crowded mountain has to offer. Learn More
See What Other People Say About Us
Check out customer reviews about Diamond Peak from Trip Advisor, Yelp! and more on our Diamond Peak testimonials page.
This information was posted on the Diamond Peak Ski Resort website.
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
Friday, December 4, 2009
Signs of the Bottom of Your Real Estate Market
We've been watching a buyer's market for so long, we've almost forgotten how to see the signs of the building of a seller's market. Keep in mind, a seller's market slowly builds (over months) while a buyer's market can hit overnight.
While the National Association of Realtors announced sales of resale homes jumped more than 10 percent nationally in October 2009 over a year earlier – those numbers are not the numbers to watch while you're trying to find the bottom of your local market. Don't make a local decision based on national information.
The resale numbers have been up in markets all across the country for more than a year, we just never heard about it from the evening news, et. al., because your national news venues don't watch local markets. You should.
Most buyers and the media in general look to pricing to dictate that the bottom of the market has been hit. But before making that dictum, a buyer must first define what the bottom really is. Many would say, it's when prices hit the lowest they've been. True. That's part of the signs to watch.
And if price is you're only interest, then go ahead and wait for the bottom in pricing. Keep in mind, however, that everyone else is also looking for that number. When prices start to move up, they are moving up because the demand is starting to outpace supply and higher priced homes are starting to sell again, thus you may have missed the optimal time to purchase a house at a low price with someone else's money to help you with closing costs.
When the prices hit bottom (and the only way you can figure that out is the first month that prices start moving up, you've already missed the bottom), consumers are already starting to beat each other out for a shrinking inventory.
So, here are the indicators to watch to find the bottom:
1. Inventory: Watch for inventory to start dropping. When this happens, you've entered the bottom territory. Buyers start jumping on the bandwagon once there is so much inventory that prices have hit an acceptable low level.
2. Seller Subsidy: When sellers are giving back maximum amounts allowed by loan programs, you've hit the bottom. Some loan programs allow up to 6 percent of the sales price to be given back to the buyer at the settlement table from the seller for closing costs. Imagine, purchasing a house for $300,000 and getting $18,000 back from the seller for the buyer's closing costs – that's a sign of the bottom. (And this is most likely after getting 3 or 4 percent off the sales price – another $9,000 to $12,000).
3. Pricing: Now this is where everyone watches, when in reality it's the sign that the market has been climbing up from the bottom for several months. If you're going to track pricing as a bottom indicator, then start watching it from month to month, instead of year over year. Thus, when prices start moving up, say, from March to April to May to June – THEN you may have hit the bottom on pricing. A market can experience price increases month after month while still showing lower prices than a year before – thus the buyer, while waiting for signs that prices are moving up over last year, may have missed the bottom on pricing. By the time value starts surpassing year over year, the climb up has already begun.
4. Multiple offers: As buyers start competing for the best properties that have hit the lowest price, then you've found another sign of the bottom of the market.
5. Days on market: Once prices have hit bottom and buyers start gobbling up houses and start competing with each other – then you'll see the days on market begin dropping.
For some markets across the country, all of these indicators have already started showing signs of the bottom, such as Florida, Washington DC, Phoenix, Las Vegas, Las Angeles, and other metropolitan areas that were hit heavy by foreclosures.
Watching your local numbers is the only way to determine if you've hit the bottom of the market for your local real estate market.
This article was published on Realty Times
Written by M. Anthony Carr
December 4, 2009
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
While the National Association of Realtors announced sales of resale homes jumped more than 10 percent nationally in October 2009 over a year earlier – those numbers are not the numbers to watch while you're trying to find the bottom of your local market. Don't make a local decision based on national information.
The resale numbers have been up in markets all across the country for more than a year, we just never heard about it from the evening news, et. al., because your national news venues don't watch local markets. You should.
Most buyers and the media in general look to pricing to dictate that the bottom of the market has been hit. But before making that dictum, a buyer must first define what the bottom really is. Many would say, it's when prices hit the lowest they've been. True. That's part of the signs to watch.
And if price is you're only interest, then go ahead and wait for the bottom in pricing. Keep in mind, however, that everyone else is also looking for that number. When prices start to move up, they are moving up because the demand is starting to outpace supply and higher priced homes are starting to sell again, thus you may have missed the optimal time to purchase a house at a low price with someone else's money to help you with closing costs.
When the prices hit bottom (and the only way you can figure that out is the first month that prices start moving up, you've already missed the bottom), consumers are already starting to beat each other out for a shrinking inventory.
So, here are the indicators to watch to find the bottom:
1. Inventory: Watch for inventory to start dropping. When this happens, you've entered the bottom territory. Buyers start jumping on the bandwagon once there is so much inventory that prices have hit an acceptable low level.
2. Seller Subsidy: When sellers are giving back maximum amounts allowed by loan programs, you've hit the bottom. Some loan programs allow up to 6 percent of the sales price to be given back to the buyer at the settlement table from the seller for closing costs. Imagine, purchasing a house for $300,000 and getting $18,000 back from the seller for the buyer's closing costs – that's a sign of the bottom. (And this is most likely after getting 3 or 4 percent off the sales price – another $9,000 to $12,000).
3. Pricing: Now this is where everyone watches, when in reality it's the sign that the market has been climbing up from the bottom for several months. If you're going to track pricing as a bottom indicator, then start watching it from month to month, instead of year over year. Thus, when prices start moving up, say, from March to April to May to June – THEN you may have hit the bottom on pricing. A market can experience price increases month after month while still showing lower prices than a year before – thus the buyer, while waiting for signs that prices are moving up over last year, may have missed the bottom on pricing. By the time value starts surpassing year over year, the climb up has already begun.
4. Multiple offers: As buyers start competing for the best properties that have hit the lowest price, then you've found another sign of the bottom of the market.
5. Days on market: Once prices have hit bottom and buyers start gobbling up houses and start competing with each other – then you'll see the days on market begin dropping.
For some markets across the country, all of these indicators have already started showing signs of the bottom, such as Florida, Washington DC, Phoenix, Las Vegas, Las Angeles, and other metropolitan areas that were hit heavy by foreclosures.
Watching your local numbers is the only way to determine if you've hit the bottom of the market for your local real estate market.
This article was published on Realty Times
Written by M. Anthony Carr
December 4, 2009
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Wednesday, December 2, 2009
November Round Up: Rates Still Under Five Percent
In Freddie Mac's results of its Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 4.78 percent with an average 0.7 point for the week ending November 25, 2009, down from the previous week when it averaged 4.83 percent. Last year at this time, the 30-year FRM averaged 5.97 percent. The 30-year has not been this low since the week ending April 30, 2009, when it averaged 4.78 percent.
The 15-year FRM this week averaged 4.29 percent with an average 0.6 point, down from the previous week when it averaged 4.32 percent. A year ago at this time, the 15-year FRM averaged 5.74 percent. The 15-year FRM has never been this low since Freddie Mac started tracking it in 1991.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.18 percent this week, with an average 0.6 point, down from the previous week when it averaged 4.25 percent. A year ago, the 5-year ARM averaged 5.86 percent. The 5-year ARM has never been this low since Freddie Mac started tracking it in 2005.
The 1-year Treasury-indexed ARM averaged 4.35 percent this week with an average 0.7 point, unchanged from the previous week when it averaged 4.35 percent. At this time last year, the 1-year ARM averaged 5.18 percent. The 1-year ARM has not been this low since the week ending July 7, 2005, when it averaged 4.33 percent.
"Long-term mortgage rates eased for the fourth consecutive week to record levels," said Frank Nothaft, Freddie Mac vice president and chief economist." Interest rates for 30-year fixed mortgage loans tied an all-time record low while both 15-year fixed mortgages and 5-year ARMs broke their corresponding records. Interest rates for 30-year fixed-rate loans are currently 0.8 percentage points below this year's peak set in mid-June, which shaves roughly $100 off the monthly payments on a $200,000 mortgage.
"House prices are slowly beginning to firm now. For instance, annual house price declines slowed for the sixth consecutive month in September, down only 3 percent, and represented the smallest decline since February 2008, according the Federal Housing Finance Agency's purchase-only house price index. Moreover, 11 of the 20 major metropolitan areas experienced monthly house price increases between August and September, based on the S&P/Case-Shiller® 20-city house price indexes ."
Green Renovations to Gain Market Share Green market research firm SBI Energy forecasts that in the next five years, the market for energy-efficient home renovation products will grow 15 percent, 50 percent faster than the renovations market as a whole.
According to the report, the energy-efficient market will reach $35 billion and claim 15 percent of all home renovation dollars spent.
"The growth will come as a result of the tax credits, new incentives, and the reality that more agencies and utilities are promoting the fact that adding improved energy efficiency is the most cost-effective way to decrease home utility bills," says Norman Deschamps, author and SBI Energy analyst.
How to Tell Mortgage Rates Are Rising
What are the signs that mortgage rates, now at historic lows, are about to go up?
One way to catch a clue is to read the minutes of the Federal Reserve. For instance, the Federal Open Market Committee said in its September minutes that when it came to interest rates, there is “no policy change.” And the minutes said that while the Fed believes “an economic recovery is underway,” it regards a weak economy as a greater risk than inflation. Upcoming meeting minutes are likely to be just as forthcoming if an uptick is in the cards.
Other signs include:
* Declining unemployment: The unemployment rate is sitting at 9.7 percent. If lots of Americans go back to work, an increase in interest rates is likely.
* Rising discount rate: The rate the Fed charges banks that borrow from it directly stands at 0.5 percent. If it rises or the spread between it and the Federal Funds rate widens, then mortgage rate increases won’t be far behind.
Real Estate Market Is Active
Sales of single family homes, townhouses, condos and co-ops surged by a little over 10 percent in October, and were 24 percent above where they were a year before.
Closed transactions rose by nearly 12 percent in the Northeast, 14. 4 percent in the Midwest, 12.7 percent in the South and by 1.6 percent in the West.
Why the big jump in activity? The number one reason, according to Dr. Lawrence Yun, chief economist for the National Association of Realtors, was that first time buyers rushed to wrap up deals before the scheduled November 30th original expiration date of the $8,000 federal tax credit.
That program has now been extended through next June 30th.
Another factor: The near record-breaking affordability of housing - as measured by the prices of homes in local markets around the U.S. compared with household incomes and monthly payments at current mortgage interest rates.
The affordability equation is now at its most favorable point for buyers since 1970. Interest rates for 30-year fixed loans have been hovering around five percent for weeks - and recently dropped below that into the upper four percent range. A year ago, by comparison, the average 30-year rate was 6.2 percent.
House prices meanwhile have remained well below where they were a year ago - down by 7 percent to a median price of about $173,000. In the southwestern states, Florida and the suburbs of Washington D.C., low prices - especially for entry-level houses - are triggering multiple-bid situations - something that hasn't been seen since the heady days of the housing boom in 2004 and 2005.
This article was published in Realty Times
Written by: Realty Times Staff
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com
The 15-year FRM this week averaged 4.29 percent with an average 0.6 point, down from the previous week when it averaged 4.32 percent. A year ago at this time, the 15-year FRM averaged 5.74 percent. The 15-year FRM has never been this low since Freddie Mac started tracking it in 1991.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.18 percent this week, with an average 0.6 point, down from the previous week when it averaged 4.25 percent. A year ago, the 5-year ARM averaged 5.86 percent. The 5-year ARM has never been this low since Freddie Mac started tracking it in 2005.
The 1-year Treasury-indexed ARM averaged 4.35 percent this week with an average 0.7 point, unchanged from the previous week when it averaged 4.35 percent. At this time last year, the 1-year ARM averaged 5.18 percent. The 1-year ARM has not been this low since the week ending July 7, 2005, when it averaged 4.33 percent.
"Long-term mortgage rates eased for the fourth consecutive week to record levels," said Frank Nothaft, Freddie Mac vice president and chief economist." Interest rates for 30-year fixed mortgage loans tied an all-time record low while both 15-year fixed mortgages and 5-year ARMs broke their corresponding records. Interest rates for 30-year fixed-rate loans are currently 0.8 percentage points below this year's peak set in mid-June, which shaves roughly $100 off the monthly payments on a $200,000 mortgage.
"House prices are slowly beginning to firm now. For instance, annual house price declines slowed for the sixth consecutive month in September, down only 3 percent, and represented the smallest decline since February 2008, according the Federal Housing Finance Agency's purchase-only house price index. Moreover, 11 of the 20 major metropolitan areas experienced monthly house price increases between August and September, based on the S&P/Case-Shiller® 20-city house price indexes ."
Green Renovations to Gain Market Share Green market research firm SBI Energy forecasts that in the next five years, the market for energy-efficient home renovation products will grow 15 percent, 50 percent faster than the renovations market as a whole.
According to the report, the energy-efficient market will reach $35 billion and claim 15 percent of all home renovation dollars spent.
"The growth will come as a result of the tax credits, new incentives, and the reality that more agencies and utilities are promoting the fact that adding improved energy efficiency is the most cost-effective way to decrease home utility bills," says Norman Deschamps, author and SBI Energy analyst.
How to Tell Mortgage Rates Are Rising
What are the signs that mortgage rates, now at historic lows, are about to go up?
One way to catch a clue is to read the minutes of the Federal Reserve. For instance, the Federal Open Market Committee said in its September minutes that when it came to interest rates, there is “no policy change.” And the minutes said that while the Fed believes “an economic recovery is underway,” it regards a weak economy as a greater risk than inflation. Upcoming meeting minutes are likely to be just as forthcoming if an uptick is in the cards.
Other signs include:
* Declining unemployment: The unemployment rate is sitting at 9.7 percent. If lots of Americans go back to work, an increase in interest rates is likely.
* Rising discount rate: The rate the Fed charges banks that borrow from it directly stands at 0.5 percent. If it rises or the spread between it and the Federal Funds rate widens, then mortgage rate increases won’t be far behind.
Real Estate Market Is Active
Sales of single family homes, townhouses, condos and co-ops surged by a little over 10 percent in October, and were 24 percent above where they were a year before.
Closed transactions rose by nearly 12 percent in the Northeast, 14. 4 percent in the Midwest, 12.7 percent in the South and by 1.6 percent in the West.
Why the big jump in activity? The number one reason, according to Dr. Lawrence Yun, chief economist for the National Association of Realtors, was that first time buyers rushed to wrap up deals before the scheduled November 30th original expiration date of the $8,000 federal tax credit.
That program has now been extended through next June 30th.
Another factor: The near record-breaking affordability of housing - as measured by the prices of homes in local markets around the U.S. compared with household incomes and monthly payments at current mortgage interest rates.
The affordability equation is now at its most favorable point for buyers since 1970. Interest rates for 30-year fixed loans have been hovering around five percent for weeks - and recently dropped below that into the upper four percent range. A year ago, by comparison, the average 30-year rate was 6.2 percent.
House prices meanwhile have remained well below where they were a year ago - down by 7 percent to a median price of about $173,000. In the southwestern states, Florida and the suburbs of Washington D.C., low prices - especially for entry-level houses - are triggering multiple-bid situations - something that hasn't been seen since the heady days of the housing boom in 2004 and 2005.
This article was published in Realty Times
Written by: Realty Times Staff
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