Looks like we are headed in the right direction! Great News for anyone looking to purchase a home after the November 30th Deadline!
To read the full article from Charles McMillian click on the link that I have posted below. You can also listen to President's Podcast, with details on the new tax credit and when it takes effect.
For more information on the tax credit and the Tallahassee Market give me a call! You can reach me at 850-591-2599 or email me at julie@ringtherivers.com
Daily Real Estate News, October 23, 2009 NAR, Realtor Magazine Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of REALTORS®.
Existing-home sales-including single-family, townhomes, condominiums, and co-ops-jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million units in September from a level of 5.10 million in August, and are 9.2 percent higher than the 5.10 million-unit pace in September 2008. Sales activity is at the highest level in more than two years, since it hit 5.73 million in July 2007.
Lawrence Yun, NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. "Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home," he said. "We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery."
Inventory Falls Total housing inventory at the end of September fell 7.5 percent to 3.63 million existing homes available for sale, which represents an 7.8-month supply at the current sales pace, down from an 9.3-month supply in August. Unsold inventory totals are 15.0 percent below a year ago.
"The current housing supply is the lowest we've seen in two and a half years," Yun said. "If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year."
Source: National Association of Realtors, Daily Real Estate News, Realtor Magazine
To read more about the current housing market, read the rest of this great article by clicking on the link below.
You may have not decided to buy yet but a lot of fears are unfounded. Here are a few examples of past clients concerns:
Fear: I should wait until the real estate market gets better.
Fact: There is never a wrong time to buy the right home.
Fear: I don't have the money for the down payment.
Fact: There are a variety of down payment options available to you.
Fear: I can't afford to buy my dream home.
Fact: The best way to get closer to buying your dream home is to buy your first home.
Fear: I can't afford to buy a home right now.
Fact: Actually, you can't afford not to buy a home right now ...
Do you have any concerns that we can clear up for you? We are ready to help you and look forward to meeting soon. Please call me today at 850-591-2599 or e-mail me at julie@ringtherivers.com to set up an appointment!
Last week, Federal Reserve Chairman Ben Bernanke said that as the economy heals, the Fed will be very vigilant to protect against inflation. While inflation is not a problem at present, it will most certainly become a problem down the road. So why does this matter if you are considering purchasing or refinancing?
Because inflation is the arch-enemy of Bonds and home loan rates, and just the knowledge of it coming has been causing both Bonds and home loan rates to worsen in recent days. Along with the fear of inflation, the Fed's purchasing program of Mortgage Backed Securities is already slowing down, with the end of their buying in sight - and the reduced demand for these Bonds is also driving home loan rates higher.
Bottom line: home loan rates are already on the rise, and we won't likely see these low historic levels again. Interest rates are still very near historic lows - George Washington couldn't have gotten a better interest rate - and the opportunity these low rates present is huge for homebuyers or people looking to refinance. If we haven't talked recently about your own home loan situation - or if you have a friend, family member, neighbor or coworker who needs advice - please Ring the Rivers at 297-2255 or email us at MoreInfo@RingTheRivers.com.
Would you like to receive our Best Buy List on a regular basis? just let me know and I will sign you up to receive great listings picked by our team of buyer specialist who know the market and the great deals that are out there. Every week, the Rivers Team agents compile a list of the absolute best buys that they find in our local market - this includes properties in all price ranges and areas.
You'll find the link to this week's properties below. You can view the property descriptions in the link that is provided and call us if you have any additional questions or would like to schedule a time to view the home.
If you have friends, family members, or co-workers that you think would benefit from receiving this list, please have them e-mail BestBuy@RingTheRivers.com.
For more information on the Tallahassee market and to find out about more of those great best buys that are out there. Give me a call! You can reach me at 850-591-2599 or you can email me at julie@ringtherivers.com
Thinking about buying your first home? Act today and the government will give you FREE money in the form of a tax credit or down payment. No, you're not dreaming! As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers. And those who qualify for the federal $8,000 first -time home buyers tax credit will be able to apply for down payment assistance through
the state of Florida or the Federal Housing Administration (FHA) before they close on the purchase of their home; then repay the amount borrowed when they get their tax credit.
Q What Does This Mean to You?
A It means $8,000 toward a down payment! You have until November 30, 2009 to find a
Q Who Qualifies?
AFirst-time home buyers who purchase homes between January 1, 2009 and
November 30, 2009. To qualify as a first-time home buyer the buyer or his/her
spouse may not have owned a residence during the three years
prior to the purchase.
Q Which Properties Are Eligible?
A The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences,
including: singlefamily homes, condos, townhomes and co-ops.
Q How Much Will the Credit Be?
AThe maximum allowable credit for home buyers is $8,000. Each home buyers
tax credit is determined by two factors: The price of the home the credit is equal to 10% of the
purchase price of the home, up to $8,000. The buyer s income single buyers with incomes up to $75,000 and
married couples with incomes up to $150,000may receive the maximum tax credit.
Q If the Buyer(s) Income Exceeds These Limits, Can He/She Still Get a Credit?
A Yes, some buyers may still be eligible for the credit. The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and
$170,000 for home buyers filing jointly. The amount of the tax credit decreases as income approaches the maximum
limit. Home buyers earning more than the maximum qualifying income over $95,000 for singles and over $170,000 for couples are not eligible for the credit.
Q Will the Tax Credit Need to Be Repaid?
A No. The buyer does not need to repay the tax credit, if he/she occupies the home for three
years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.
More Moving for Positive Reasons & Less for Recession
Half of people surveyed by Relocation.com moved to improve their living
situation. This is a huge improvement from last March when the majority
of people moved due to the recession.
Source: relocation.com
• 26% moved to live in a bigger or better home
• 24% moved into a better neighborhood
• 12% moved to be closer to family or friends
• 9% moved into an area with a lower cost of living
• 6% moved due to a change in marital status
• 3% or less for each of the following: school, job loss, retirement, or foreclosure
For more great information and research done by Keller Williams give me a call! I can also give you great information on the Tallahassee Market as well. You can reach me at 850-591-2599 or email me at julie@ringtherivers.com
TALLAHASSEE, Fla. - July 1, 2009 - Florida created a program to help first-time homebuyers get their federal tax credit early, allowing them to use up to $8,000 toward a downpayment. The effective date for the program is July 1; however, it will probably be another few weeks before the funds are available. As a result, some Realtors struggling to help homebuyers find the system confusing.
While most first-time homebuyers qualify for the tax credit (given by the government as an income tax rebate regardless of tax owed), they once had to buy a home first, submit the info to the IRS through their tax return, and wait for the $8,000 rebate. To help these buyers get the money early enough to use it as a downpayment, the State of Florida created a program of bridge loans, the Florida Homebuyer Opportunity Program (FLHOP), where money can be borrowed from the state and then paid back after the new homeowner receives his tax credit.
Under a different federal program, the Federal Housing Administration (FHA) has done something similar, yet with a significant difference: The federal program applies to FHA loans only, and buyers must still come up with a minimum downpayment of 3.5 percent.
"FAR's Office of Public Policy has been getting a lot of questions from across the state regarding downpayment assistance for those who qualify for the federal first-time homebuyer tax credit," says Florida Association of Realtors (FAR) Vice President of Public Policy John Sebree. "Given that there is a state downpayment plan and a federal downpayment plan (and at least one special exemption), it definitely gets confusing, and details have been slow to emerge. Many Florida Realtors say local housing authorities don't have all the information they need to move forward with the state program, and some Realtors report that bankers are steering clear of the downpayment assistance programs altogether."
Florida Homebuyer Opportunity Program (FLHOP)
The Florida Legislature created the state program during the recent legislative session, and it's part of the 2010 budget effective July 1, 2009. Many details remain sketchy, but Sebree reports the following:
· Money for homebuyers may not be available until the first week of August. Lawmakers funded the program through doc stamp taxes applicable in the new fiscal year rather than through a lump sum commitment; and since today is the start of the new fiscal year, the program won't be fully funded until the state collects new doc stamp taxes.
· Florida's downpayment loan program can work with FHA loans. Florida Housing Finance Corporation (FHFC) - the state agency that funnels housing money to local housing agencies - received confirmation from FHA that borrowers who access the $8,000 tax credit through a state or local government program may use it to make up the required 3.5 percent downpayment, unlike the FHA downpayment loan program through private lenders.
· Florida's local housing administrators will oversee the downpayment funds at the local level. (To find the administrator in your area, go to: http://apps.floridahousing.org/StandAlone/FHFC_ECM/AppPage_SHIPLGContacts.aspx). For local housing authorities, the program is similar to the SHIP program (State Housing Initiatives Partnership) with one major difference - the income limits. Currently, SHIP uses Area Median Income (AMI) and those are typically lower, and calculated differently, than the federal tax credit limit of $75,000. The $75,000 for a single income tax filer ($150,000 for joint filers) will be used for FLHOP.
· Realtors can start to promote the program to potential homebuyers. It takes time to close on a home, and local housing authorities should be taking applications now.
· FHFC says they've trained local administrators on procedures for the Florida downpayment program. Local housing authorities will have flexibility over the $8,000 loan, be able to include penalties, and create a structure dictating how the new homebuyer will pay back the money.
"It's important to note that this money is a bridge loan to buyers; but once it's repaid, local governments and housing authorities can keep the money and use it locally for affordable housing projects," Sebree says. "This is a win/win for them. If the offices seem unwilling to work with Realtors, they probably don't understand the program themselves yet."
For specific questions about the $8,000 tax credit, homebuyers should consult a tax professional.
Resources for understanding the tax credit and bridge loans
So I was reading this great article tonight sent to me from the National Association of Realtors and got super excited about the fact that we are making progress now in this market. In NAR's article "pending home sales on a record roll" It is stated that Contract activity for pending home saleshas risen for six straight months, a pattern not seen in the history of the index since it began in 2001, according to the National Association of Realtors®.
This is Great News! The article also states "The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008 when it was 87.1. The index is at the highest level since June 2007, when it was 100.7". Also stated is that Affordability is at an all time high"by Lawrence Yun, NAR chief economist. He states that "The housing market momentum has clearly turned for the better and that the recovery is broad-based across many parts of the country. Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit,"
This is a great article and is packed full of great information that you should definitely take the time to read. You can view this article by clicking on the link below
The Rivers Team blog is designed to inform you about Tallahassee Real Estate and Tallahassee and the surrounding communities. We service Tallahassee, Crawfordville, Havana, and Leon, Franklin, Gadsden, & Jefferson Counties. This blog is maintained by our agents during their on call shift. We invite you to post your comments and replies to our Tallahassee real estate and community messages. Thank you for stopping by!
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