Part of the Job is to look at these types of Sale Stats and Help your buyer with the process of figuring out what my home is worth and how does market play into the picture. As a number geek i love to be the guy who brings into the picture the investor mindset. I think when you are selling it is important to know what your days on Market might be so you can plan on how long this ride might take. Each Neighborhood would need to be looked at in actually listing a home but looking at the health of the overall market is also very helpful. As you can see we currently in Fort Collins are sitting on about 6.2 month of inventory. What this means is that we are a very stable market. In most Real Estate cirlce 6 month is considered the equalibrium of the market. (under 6 months of inventory favors a seller, over 6 months of inventory would mean a buyer would have more to choose from and seller would be more likely to sell cheaper to compete) If you have any questions about any of the local real estate statistics please contact me.
Just signed and sealed...a $787 Billion Stimulus Plan made up of tax cuts and spending programs aims at reviving the US economy. Although the package was scaled down from nearly $1 Trillion, it still stands as the largest anti-recession effort since World War II.
Home owners and potential homebuyers stand to gain from key provisions in this stimulus plan. Here is what we know as of today...
Tax Credit for Homebuyers
First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction - a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.
The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.
Additional Housing-Related Provisions
Tax Incentives to Spur Energy Savings and Green Jobs - This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.
Landmark Energy Savings - This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.
Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing-This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.
Expanding Housing Assistance-This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.
"I KNEW THE RECORD WOULD STAND UNTIL IT WAS BROKEN." Yogi Berra. And while last week's Jobs Report wasn't the worst record breaker of all time, it showed a loss of 533,000 jobs during the month of November, which represented the most job losses the US has seen in 35 years. And adding more pain to the Report were heavy downward revisions for September and October, which erased an additional 199,000 jobs. In addition, last month was only the fourth time in 58 years that our economy lost over 500,000 jobs.
So what does this mean for Bonds and home loan rates? We first have to acknowledge that we are not in a typical trading environment, where weak or negative economic reports always lead to improved pricing for home loans and vice versa. The dynamics of hedge funds de-levering - where fund managers are selling all types of securities with whatever timing they need to, in order to raise capital - have caused unprecedented volatility of late, and it is not quite clear when that will end.
The Fed has indicated that they would like to be a buyer of Mortgage Bonds, which has resulted in attractive, lower rates right now. But as stated above, the trading environment is extremely volatile, and opportunities to capitalize on lower rates that make sense should be taken advantage of. There have been recent rumors of interest rates being brought down towards 4.5% by the Treasury. This irresponsible release included no definitive plan, no indication of who might qualify, or what the restrictions would be. Like many other recent legislative "solutions", the restrictions might be very tight, with income limits set very low, and as a result, helping very few people. Remember, it may make sense for you to act now, and take advantage of current historically low rates...with the possibility of refinancing should rates decline further.
In other news to note from last week, the Bank of England and the European Central Bank both cut their key benchmark interest rates in an effort to revive their sagging economies. The reduction in rates was expected as part of a global coordinated effort, and our Fed is widely expected to cut its benchmark rate during its meeting on December 16. While a cut by the Fed often causes home loan rates to rise - because a Fed rate cut can lead to inflation, which is the arch enemy of Bonds and home loan rates - the deflationary environment we are currently in may prevent home loan rates from worsening significantly after the Fed cut.
Bonds and home loan rates tested their best levels of 2008 throughout last week, but could not improve beyond them. As a result, Bonds and home loan rates ended the week slightly worse than where they began...even in the midst of rumors of rates declining as mentioned above.
GAS PRICES SURE HIT A RECORD EARLIER THIS YEAR, BUT NOW THAT THEY HAVE IMPROVED, THE IRS HAS ISSUED NEW MILEAGE RATES FOR 2009. SEE THIS WEEK'S MORTGAGE MARKET VIEW FOR ALL THE DETAILS!
Forecast for the Week
We will likely see another volatile Friday this week, with the release of several important reports at 8:30am ET. First we have the Producer Price Index, which measures inflation at the wholesale level. Given the recent whispers of deflation, this will be an important report to watch. Consumer Sentiment will also be released...but given the state of the economy, the results likely won't be much of a surprise.
In addition, we'll get a read on consumer spending patterns with November's Retail Sales Report. This Report is a measure of the total receipts of retail stores from samples representing all sizes and kinds of business in retail trade throughout the nation. Black Friday kicked off the holiday shopping season last week and the National Retail Federation amazingly estimated that shoppers spent 7.2% more than last year...but this is likely a result of the deep discounting seen by retailers, and it could well be that many shoppers who normally wait until December to get started on holiday purchases went out early to take advantage of the sales. Don't be surprised if this is a horrible report, as not only have the holiday shopping lists become shorter, but the amount spent for each individual has likely been reduced. In any event, it will be important to see what the report reveals, as a lousy report should be friendly towards home loan rates.
Remember, as Bond prices move higher, home loan rates move lower. And as you can see in the chart below, Bonds have stalled out in their improving direction for the time being, after making some great gains over the last month. Home loan rates currently stand at historic lows.
I will keep you updated as things progress, but give me a call to talk about the current historically low rates, and how this opportunity might benefit you.
Chart: Fannie Mae 5.5% Mortgage Bond (Friday Dec 05, 2008)
If you drive a car, truck or van for work, the Internal Revenue Service (IRS) has announced news that impacts you. That's because the IRS has released the new standard mileage rates for 2009. The rates will be used to calculate deductible costs for driving an automobile for business, charitable, medical and moving purposes. The new mileage rates for business, medical and moving purposes will be slightly lower than the rates for the second half of 2008, which were raised in the middle of last year due to spiking gas prices. The rate for charitable driving, however, is set by law and will remain unchanged from 2008.
Beginning January 1, 2009, the standard mileage rates for 2009 are as follows:
Businesses = 55 cents per mile driven
Medical or moving = 24 cents per mile driven
Charitable organizations = 14 cents per mile driven
Overall, these rates reflect the higher transportation costs compared to a year ago. However, the rates are slightly lower than the second half of 2008 to factor in the recent drop in gasoline prices. While gasoline is a significant factor in the mileage rate, other fixed and variable costs, such as depreciation, also enter the calculation.
But before you calculate your deduction, make sure you qualify. The IRS reminds taxpayers that they cannot use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.
Remember, you don't have to use the standard rate! Although the IRS provides the standard mileage rate for ease and convenience, you're not required to use it. If you choose, you have the option of calculating the actual costs of using your vehicle instead of using the standard mileage rates. So keep that in mind as you calculate your automobile usage for business, medical, moving, or charity driving in 2009!
The Week's Economic Indicator Calendar
Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
Economic Calendar for the Week of December 08 - December 12
Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Wed. December 10
10:30
Crude Inventories
12/06
NA
0465K
Moderate
Thu. December 11
08:30
Jobless Claims (Initial)
12/6
NA
509K
Moderate
Thu. December 11
08:30
Balance of Trade
Oct
-$54.0B
-$56.5B
Moderate
Fri. December 12
08:30
Core Producer Price Index (PPI)
Nov
0.2%
0.4%
Moderate
Fri. December 12
08:30
Producer Price Index (PPI)
Nov
-1.8%
-2.8%
Moderate
Fri. December 12
08:30
Retail Sales
Nov
-1.4%
-2.8%
HIGH
Fri. December 12
08:30
Retail Sales ex-auto
Nov
-1.7%
-2.2%
HIGH
Fri. December 12
08:30
Consumer Sentiment Index (UoM)
Dec
58.0
55.3
Moderate
The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is not without errors.
As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.
If you prefer to send your removal request by mail the address is:
Greg Vogel 3615 Mitchell Drive Fort Collins, CO 80525
Mortgage Success Source, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Mortgage Success Source, LLC does not grant to you a license to any content, features or materials in this email. You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.
Looks like Fort Collins is one of the best markets in the country right now. As many struggle Fort Collins seems to be on the fringe of becoming a Seller Market! (under 6 months of Absorption)
More than the bare necessities: Plush apartments for UNC students planned, an article from The Greeley Tribune, reports that a new set of high-class apartments geared toward students at the University of Northern Colorado is scheduled to be built on a 9-acre site in Evans. The development will be called Bear Village and will be the second upper-end apartment complex catering to UNC students to be built in Evans. The Grove was the first and opened for the Fall 2007 semester. According to Aaron Thompson, of Aperio Property Consultants, the complex will feature 6 apartment buildings totaling 152 units with 464 bedrooms as well as a central community building for the residents. Thompson added he initially hoped to open the property in time for the fall 2010 semester but said a later opening date may be more realistic to make sure the complex is completely ready when students move in. http://www.greeleytrib.com/article/20080603/NEWS/857307564
i have been posting the Card newsletter on ActiveRain since before there was a Card newsletter. I had about 0 (zero) to do with the great results card got with the State and governor but it is great to see the results fall the way we wanted and to have been a small part of that.
Dear friends,
Thank you all for your extraordinary efforts to get our uranium protection standards bill - HB-1161 - passed during the 2008 legislative session. You probably already know this, but I wanted to make sure you knew that Governor Ritter plans to sign the bill on Tuesday, May 20, at 10:30 am at the Capitol. I truly hope you can make it to the bill signing. You deserve to be recognized for your hard work and constant effort during the session. Please also let other you know who would be interested in attending. I hope someone will send out a notice to CARD members who worked so hard on this.
Thanks, again. I look forward to seeing you at the signing.
Best wishes,
Randy Fischer, State Representative House District 53 3007 Moore Lane Fort Collins, Colorado 80526-2103 970-215-7898 (Cell) 303-866-2917 (Office) E-mail: RandyFischer@frii.com
Airport plans developing, an article from The Loveland Daily Reporter-Herald, reports that the airport steering committee is working with the Federal Aviation Administration to hammer out a deal regarding a Martin Lind proposal for development at and around the airport. The airport steering committee consists of the mayors and city managers of Loveland and Fort Collins. Martin Lind, president and developer of Water Valley in Windsor said, "What we are talking about is opening the airport up for business. We love this downtown NoCo area, and I would really like this airport to come to life." Lind has proposed building another fixed-based operator, the fuel station for an airport, at the airport in northeast Loveland. He would also like to develop more aviation-related businesses around the airport. Once completed, the business plan will be an attempt for the cities to find a way to use the airport as an economic engine for the region. http://www.reporterherald.com/news_story.asp?ID=16247
Vacation and Investment Property Sales Strong Despite Market Troubles, an article from Mortgage News Daily, reports that according to a study released late last month by the National Association of Realtors® (NAR), second-home sales declined with the overall market in 2007, but second home sales still accounted for 33% of all new and existing home sales. In 2007, 21% of all homes purchased were for investment purposes compared to 22% the year before. In addition, 12% of the home purchases were vacation homes, down from 14% in 2006. Lawrence Yun, NAR chief economist said lifestyle factors and strong demographics remain positive for the vacation home market. He said, "Investment considerations are secondary for vacation-home buyers, so there is some dormant underlying demand. A peak of population is moving through the prime years for buying recreational property. It is welcoming to see investment sales returning to pre-boom sales activity." http://www.mortgagenewsdaily.com/4172008_Vacation_Property.asp
Additional articles that you may find of interest:
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
;)
;)
