I posted this earlier today but it didn't format correctly. So, here it is again... let's see if it comes out formatted this time!  Sorry for the big block post last time!

Home Buying Power Today vs. Tomorrow!!!

In less than four weeks buyers are going to lose a lot of buying power!  Everyone knows that the tax incentives expire at the end of April but there's more to it than that.  Some buyers are telling me that they are waiting to take advantage of the foreclosure glut that we have already seen start coming on the market.  That's a good point because there are 3.5 million new foreclosures expected to come on the market in North America this year.  Then, another 2.5 million are expected next year!  So, what's the problem with buyers waiting for them?

It's all about buying power!

There are three factors that have created terrific buying power for today's buyers.

1. Tax incentives
2. Extremely low mortgage interest rates
3. Plenty of inventory in most cities in America

These three combine to give today's buyers a lot of buying power.  However, these buyers will soon lose two of these three factors.  With them they will see a huge amount of their buying power go!  At the end of the tax incentives they will lose either $6,500 or $8,000 depending on their situation.  However, many people  haven't paid attention to the impact of increasing interest rates!  This will be an even greater loss in buying power.  Take a look at this:

• On a loan of $100,000 a 1% increase in interest rates will cost a buyer $11,500 in buying power and cost them $23,040.00 over the life of the loan
• On a loan of $200,000 a 1% increase in interest rates will cost a buyer $23,000 in buying power and cost them $45,720.00 over the life of the loan
  

You can see that the numbers get even larger with higher loan amounts.  So, buyers need to understand that a drop in home prices over the next several months can easily be lost by an increase in interest rates.  Why would anyone play that game when they can buy today at historically low rates, with a great selection of properties that are already priced to sell and they don't have to deal with bank owned properties.  Instead, they are dealing with homeowners who care about the property and who need to sell.

Will interest rates climb this year?

The quick answer is, YES!  Why? because the Fed stopped buying Mortgage Backed Securities at the end of March.  This has already caused bond prices to go down and, in turn, mortgage interest rates to go up.  At the time of this post the rates have already increased about 1/4% and it's only April 2nd!  How long will it take to go up a whole point or more?  Who knows but every bit they increase will cost a buyer dearly.

All Realtors need to inform their clients about what these changes are doing to their buying power.  We need to ensure that we understand the market and transfer that knowledge to our clients.  In reality, that's what they pay us for, not just to open doors and say, "see, here's the kitchen... isn't it beautiful!" lol

In less than four weeks buyers are going to lose a lot of buying power! Everyone knows that the tax incentives expire at the end of April but there's more to it than that. Some buyers are telling me that they are waiting to take advantage of the foreclosure glut that we have already seen start coming on the market. That's a good point because there are 3.5 million new foreclosures expected to come on the market in North America this year. Then, another 2.5 million are expected next year! So, what's the problem with buyers waiting for them? It's all about buying power! There are three factors that have created terrific buying power for today's buyers. 1. Tax incentives 2. Extremely low mortgage interest rates 3. Plenty of inventory in most cities in America These three combine to give today's buyers a lot of buying power. However, these buyers will soon lose two of these three factors. With them they will see a huge amount of their buying power go! At the end of the tax incentives they will lose either $6,500 or $8,000 depending on their situation. However, many people haven't paid attention to the impact of increasing interest rates! This will be an even greater loss in buying power. Take a look at this: * On a loan of $100,000 a 1% increase in interest rates will cost a buyer $11,500 in buying power and cost them $23,040.00 over the life of the loan * On a loan of $200,000 a 1% increase in interest rates will cost a buyer $23,000 in buying power and cost them $45,720.00 over the life of the loan You can see that the numbers get even larger with higher loan amounts. So, buyers need to understand that a drop in home prices over the next several months can easily be lost by an increase in interest rates. Why would anyone play that game when they can buy today at historically low rates, with a great selection of properties that are already priced to sell and they don't have to deal with bank owned properties. Instead, they are dealing with homeowners who care about the property and who need to sell. Will interest rates climb this year? The quick answer is, YES! Why? because the Fed stopped buying Mortgage Backed Securities at the end of March. This has already caused bond prices to go down and, in turn, mortgage interest rates to go up. At the time of this post the rates have already increased about 1/4% and it's only April 2nd! How long will it take to go up a whole point or more? Who knows but every bit they increase will cost a buyer dearly. All Realtors need to inform their clients about what these changes are doing to their buying power. We need to ensure that we understand the market and transfer that knowledge to our clients. In reality, that's what they pay us for, not just to open doors and say, "see, here's the kitchen... isn't it beautiful!" lol

Whether you are a long time Charlotte veteran or new to the area here's a helpful link provided by one of our local TV news channels. WBTV provides a "Newcomers Guide" that provides a vast amount of information from fun things to do in the area, where to get your driver's license, golf course locations and much more. Check it out - www.wbtv.com/global/category.asp?C=168889

Grab your running shoes and a friend and join your Highland Creek neighbors at the Run the Creek 5K run-walk event on March 20th. The fun begins at 9:00am at the Highland Creek Elementary School. For more information and to register visit - www.setupevents.com

Who isn't going a little stir crazy these days? If you're looking for something different to do on these cold, snowy, icy, freezing rain....days. Here's few ideas, we hope you find something FUN! Stanly County Winter Wine Festival Saturday, February 27 12:00p to 6:00p at Stanly County Senior Center, Albemarle, NC 283 N. 3rd Street http://www.mapquest.com/maps?name=Stanly+County+Senior+Citizens&city=Albemarle&state=NC&address=283+N+3rd+St&zipcode=28001&country=US&latitude=35.352024&longitude=-80.196363&geocode=ADDRESS&id=3258142 The Stanley County Winter Wine Festival offers many of North Carolina's finest wineries and vineyards. This is a great way to experience new wines or old favorites. Grab a friend and enjoy an afternoon out. Africa Alive Saturday, Feb 27 10:00 (Estimated start time, must confirm) at Culture & Heritage Museums 4621 Mt. Gallant Rd., Rock Hill, SC, 29732 (803) 329-2121 http://www.mapquest.com/maps?name=Museum+of+York+County&city=Rock+Hill&state=SC&address=4621+Mount+Gallant+Rd&zipcode=29732&country=US&latitude=35.01063&longitude=-81.06262&geocode=ADDRESS&id=3624851 The event focuses on the cultural traditions of the African continent through music, dance, storytelling, crafts activities and food. Charlotte Goes Green Saint Patrick's Day Festival Saturday, March 13 10:00a at Tryon Street, Charlotte, NC Wear your green and join the 14th St. Patrick's Day Parade and Charlotte Goes Green Festival. This is a one-day only event! This is quickly becoming one of Charlotte's largest parade with over 50,000 spectators this year. The festival will last 8 hours and feature 1 music stage, Irish crafts, food, beer, vendors and more!

The Tax Credit Extension is part of a $24 billion economic stimulus bill that extends the $8,000 tax credit for homebuyers who are purchasing their first home and expands the program to offer a credit of $6,500 to homeowners who have lived in their current home for at least five years and are seeking to relocate. The following details apply to the homebuyer tax credit expansion: Who is Eligible: * First-time homebuyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit. * Existing homeowners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (repeat buyers) may be eligible for up to a $6,500 tax credit. * All U.S. citizens who file taxes are eligible to participate in the program. Income Limits: * Homebuyers who file as single or head-of-household taxpayers can claim the full credit * ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000. * For married couples filing a joint return, the combined income limit is $225,000. * Single or head-of-household taxpayers who earn between $125,000 and $145,000 and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit. * The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000. Effective Dates: * The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009, before May 1, 2010. However, home purchases subject to a binding sales contract by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010. Types of Homes that Qualify: All primary residence homes with a purchase price of less than $800,000 qualify including: * newly-constructed or resale * single-family detached * town homes * condominiums Vacation homes and rental property purchases do NOT qualify. Tax Credit is Refundable A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference. Examples: * A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government. A first-time buyer due to receive a $1,000 refund, would receive $9,000 ($1,000 plus the $8,000 first-time homebuyer tax credit). * A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. A repeat buyer due to get a $1,000 refund, would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit). * All qualified homebuyers can take the tax credit on their 2009 or 2010 income tax return. Payback Provisions: The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase. The www.federalhousingtacredit.com site is being updated. Check the site for more detailed information on the tax credit.

The Ramsey Group wants the very best for you and yours. So we are sharing the following important information provided by the Charlotte Mecklenburg Police Department (CMPD). Please take a few minutes to read through their suggestions. With the onset of the winter holidays, the Charlotte-Mecklenburg Police Department is stepping up patrols and taking special precautions to ensure the safety of citizens and shoppers throughout the holiday season. Beginning this week, with one of the biggest shopping days of the year, police presence will increase and continue through New Years. Emphasizing the crucial relationship between the community and law enforcement, CMPD will be working with local businesses to reinforce precautionary measures for money management and business safety. The Department is also encouraging citizens to take preventive steps to ensure the securing of their property and their personal safety and offers these tips for the holiday season: Safety While Shopping 1. Pay with checks or credit cards when possible. Don’t flash large amounts of cash. 1. Don’t leave any purchases or your purse unattended while shopping or in a dressing room. 1. Try to carry as little as possible. Make multiple trips to your vehicle to store your purchases. 1. Never leave your children alone. 1. If your children get separated from you, teach them to find a cashier or a security officer and ask for help. 1. Report all suspicious activity. Call 911 with a description. Safety in the Parking Lots 1. Park and walk in well-lit areas. 1. Walk with confidence be aware of people around you, and know where you parked. 1. Always lock your car doors after leaving or entering your car. 1. Have your keys in your hand so that you don’t have to linger before entering your car. Check the back seat before you get in. 1. Don’t leave packages on the car seats. Keep packages out of sight in the trunk or under a covered rear cargo area. Home Holiday Safety 1. Make sure your home is well lit. Turn on outside lights, spotlights, motions lights, etc. Leave several lights on timers while you are away to give your home that lived in look. 1. Keep all shrubbery trimmed. Do not allow shrubbery to conceal windows or doors. 1. Remove anything a burglar could climb up on to gain entry or use to knock out a window or door; items such as ladders, tools, tables, and chairs. 1. All exterior doors should be solid, rather than hollow core. 1. Don’t leave garage roll down doors open, even while you are home or while you are doing yard work. 1. Use a deadbolt lock to secure your doors. A good deadbolt should have a 1” throw, if you have glass within 40” of the lock a burglar could reach in and unlock the door. A double cylinder lock (this type needs a key on both sides to unlock) should be used if glass is near the lock. 1. If you are going away contact a trusted neighbor or friend to pick up your mail, newspaper and other delivered items. 1. Try not to leave gifts in open view. This is an invitation to burglars. 1. Don’t advertise new gifts or purchases. Break up cartons before leaving them at the curb or dispose of them another way the morning of trash pick up. 1. Don’t forget to engrave new gifts or purchases with your Drivers license number. 1. Don’t open your door to strangers. Be wary of solicitors and salespersons. If a stranger asks to use your telephone, tell them to stay outside, lock the door behind you and make the call for them. Never let a stranger inside your home. 1. Don’t give any information about yourself or your neighbor to a stranger.

Why pay more when you can have half off! Whether you live in North Charlotte or South Charlotte, now is the time to take advantage of a wide variety of gift cards offered through K104.7, one of Charlotte's local radio stations. Simply go to www.k1047.com/ - and click on Half-Off. From there you'll find the Categories to choose from, they are offering half off deals to a number of restaurants, fitness, getaways and even salons and spas! What a great gift idea for your holiday shopping needs! You'll have to Hurry because there's only a limited amount of half off gift cards available. From all of us here at The Ramsey Group we hope we've made your holiday shopping a little easier!

Thanks to all of you who entered The Ramsey Group Carolina Panthers Tickets Giveaway! Congratulations go out to Andrea M for winning the drawing for the tickets! Keep your eye out for future opportunities to win other tickets from The Ramsey Group at Keller Williams Realty. As you probably know, The Ramsey Group is the top real estate team helping people take advantage of the Tax Credit for first time home buyers, the Tax Credit for move up buyers, investing in real estate in the best real estate investment market in years and people selling their home. So, if you are looking to take advantage of this real estate market or you know anyone looking to buy a home, sell a home or invest in real estate please call us. We will take excellent care of them! Thanks again to all of you who entered The Ramsey Group Carolina Panthers Tickets Giveaway!

This beautiful home located in the sought after Highland Creek neighborhood truly stands above the rest. Your new home has been pampered and it shows! Step inside to find easy to care for wood laminate flooring that flows throughout the entrance foyer, kitchen and breakfast area. There's a spacious great room with a wall of windows that provides ample natural lighting. The chef's kitchen offers solid surface counter tops, black appliances, a bay window in the breakfast room and walk-in pantry. The guest room or home office is conveniently located on the main level with a double door closet. There's also a full bath on the main level! Upstairs you'll find a charming master retreat that also has a bay window and appealing octagon trey ceiling. The luxurious master bath has a relaxing jacuzzi tub, separate shower and large walk-in closet. The bonus room is currently being used as a media room but could also be great for a playroom or work-out area. The upgraded landscaping is to be enjoyed from the back patio or from the rocking chair front porch! Put this one of your list of "must see" homes today! We sell homes FAST! Sorry but we sold this home in one week! It's no longer available but we have more homes. People who need to sell their home in this market are turning to The Ramsey Group to get the job done!