3rd QUARTER REAL ESTATE RECAP!!
In keeping with this month of Thanksgiving, I'm happy to be able to share some good news with you. The U.S. economy grew 3.5% in the third quarter, the best showing in two years. Consumer spending on big-ticket goods soared at an annualized rate of 22.3% in the same quarter. Spending on housing developments jumped at an annualized pace of 23.4% nationwide - the largest jump since 1986. On a National level, Real estate is also looking positive:
- Sales activity is at the highest level in over two years, according to the National Association of Realtors (NAR).
- Existing home sales jumped 9.4 % by October.
- Housing supply is the lowest it's been in two and a half years, according to Lawrence Yun, Chief Economist, NAR.
Here on the local level, I'm seeing some multiple offers for properties that are well-priced. Currently we have 6.2 months of inventory on the market which is considered an equal market. Don't believe all of the negative media you hear! As buyers absorb the inventory, home prices are predicted to rise in the first and second quarters of 2010. Now may be the time to act. Give me a call with any questions.
May your Thanksgiving be a time of happiness and bounty.
JUST ASK JAMIE!
Q: Has the $8,000 Federal tax credit for first-time home buyers passed, and what about non first-time homebuyers?
A: Yes, the Senate has reached an agreement to extend and expand the tax credit. Under the new agreement, first-time homebuyers could receive up to $8,000 in tax credits, and certain homeowners could receive up to $6,500 in tax credits. Under this bill the qualifying income limits have been raised. Single taxpayers' income limit would jump from $75,000 to $125,000 and joint taypayers' income limit would rise from $150,000 to $225,000. Buyers would have to be in escrow by April 30, 2010 and close by June 30, 2010 to qualify. THE GOOD NEWS is that this bill should help stimulate new sales in all real estate markets!
GREEN NEWS:
November is a great month to get the whole family involved in a green lifestyle. One of the biggest feasts of the year is Thanksgiving dinner. Here are some ideas for taking a fresh look on this tradition.
- Buy organic - free-range turkey, farm fresh vegetables and fruits set the tone.
- Decorate naturally - from bamboo placemats to cloth napkins to cornucopias of nuts and leaves with eco-friendly soy candles.
- Recycle - set up a separate area to manage your extra recycling needs.
If you want to check out the information on where to find "green" groceries, go to www.localharvest.org. For learning more about local recycling centers, go to www.earth911.com. With the holidays upon us, let's think green. Let me know if you have some other great ideas.
MORTGAGE NEWS:
Starting November 1st, getting a loan may be more difficult for some of us; government-backed Fannie Mae is tightening their lending standards. The required scores for good credit are rising. A credit score is a number representing the likelihood that a person will pay his or her debts, according to www.wikipedia.org.
Depending on the type of loan, anybody with a credit score of less than 620 will have a hard time getting a mortgage. According to Charles Capone, PhD Senior Analyst at the U.S. Congressional Budget Office, the mortgage market views a FICO score of 620 as the bottom cut off for prime loans. To get the best rates, you will need to have a score of about 720 as well as a steady income. People with scores above 720 are considered low risk borrowers.
With low mortgage rates and federal incentives for buyers, you may be thinking about buying a new home or refinancing your current home. To check out your credit score, you can go to www.annualcreditreport.com.
PERSONAL UPDATE (Short Sales)
As I'm sure you have heard, Short Sales are becoming more commonplace in our devalued markets across the Country. If you have any questions regarding short sales, or have the desire to proceed with one please call or email me first, I'll share my viewpoints and caveat's.
I also have experience in REO (Real Estate Owned by the Bank) sales, and have been successful in both kinds of transactions so I can give you a first-hand perspective and look forward to helping!
If you know anyone buying or selling Real Estate please send them my way!
Thanks,
Jamie, Joann Broughton Team! 832-341-3500 jamierroe@yahoo.com
Comments(1)