Keller Williams Real Estate

Mortgage Applications Rise as Rates Fall

2009-09-11T21:17:00.001-04:00

Mortgage rates declined last week, triggering a dramatic jump in mortgage applications.

The Mortgage Bankers Association reported that its weekly index of mortgage application volume rose 17 percent on a seasonally adjusted basis compared to the previous week.

On an unadjusted basis, the index increased 15.8 percent and was up a whopping 64.5 percent compared to the same week a year ago.

Much of the increase was in refinances, with the refinance index increasing 22.5 percent, the biggest jump since March.

The purchase index rose 9.5 percent, which was the largest gain since early April.Mortgage rates were down across the board:

30-year fixed-rate mortgages decreased to 5.02 percent from 5.15 percent.
15-year fixed-rate mortgages decreased to 4.45 percent from 4.57 percent.
1-year ARMs decreased to 6.69 percent from 6.71 percent.

www.BestRateToday.info

Source: Mortgage Bankers Association (09/09/2009)

10 Housing Markets Likely to Rebound Soon

2009-09-11T21:06:00.002-04:00

Real estate forecasting service Local Market Monitor, which predicts housing market trends for investors and banks, forecasts that housing prices will decline an average of 5 percent through 2010.

This prediction includes double-digit decreases in Phoenix, Miami, and Las Vegas.

But then the worst could be over, says CEO Ingo Winzer. As the recession eases, “We’ll see good price increases in many markets,” he reports.

In the following markets, home values are expected to remain level this year but increase in value next year:

Baton Rouge, La.
Buffalo-Niagara Falls, N.Y.
Dallas-Plano-Irving, Texas
Fort Worth-Arlington, Texas
Houston-Sugar Land-Baytown, Texas
Little Rock-North Little Rock-Conway, Ark.
Omaha-Council Bluffs, Neb.-Iowa
Pittsburgh, Pa.
San Antonio, Texas
Syracuse, N.Y.

Here are the 10 largest markets where prices are expected to continue to decline through 2010:

Fresno, Calif.
Las Vegas-Paradise, Nev.
Miami-Miami Beach-Kendall, Fla.
Orlando-Kissimmee, Fla.
Phoenix-Mesa-Scottsdale, Ariz.
Portland-Vancouver-Beaverton, Ore.-Wash.
San Jose-Sunnyvale-Santa Clara, Calif.
Stockton, Calif.
Tacoma, Wash.
Tucson, Ariz.

For Indianapolis Area homes for sale visit: www.IndyRealEstate.info

Source: Local Market Monitor (09/09/2009)

June new home sales rise 11 percent

2009-07-27T14:28:00.001-04:00

By ALAN ZIBEL, AP Real Estate Writer Alan Zibel, Ap Real Estate Writer

WASHINGTON – New home sales in June posted the fastest increase in more than eight years as buyers took advantage of bargain prices, low interest rates and a federal tax credit for first-time homeowners.

While home prices are still falling, the figures released Monday were another sign the housing market is finally bouncing back. Earlier this month, the government reported that new home construction rose to the highest level since last fall.

And data out last week showed home resales rose almost 4 percent in June, the third straight monthly increase.
"The worst of the housing recession ... is now behind us," said David Resler, chief economist at Nomura Securities. "We're turning the corner toward increased activity in housing."

New home sales rose 11 percent in June to a seasonally adjusted annual rate of 384,000, from an upwardly revised May rate of 346,000, the Commerce Department reported Monday.

Shares of big homebuilders soared on the news, with Beazer Homes USA up by more than 13 percent and Hovnanian Enterprises rising 8 percent in afternoon trading. But with home prices still falling, these companies won't be making much money anytime soon.

The median sales price of $206,200 was down 12 percent from $234,300 a year earlier and off nearly 6 percent from $219,000 in May.

In addition to lower prices, buyers are rushing to tax advantage of a federal tax credit that covers 10 percent of the home price or up to $8,000 for first-time buyers. Home sales need to be completed by the end of November for buyers to take advantage.

"The window of opportunity is closing," said Bernard Markstein, senior economist for the National Association of Home Builders.

June's results were the strongest sales pace since November 2008 and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 360,000 units. The last time sales rose so dramatically was in December 2000.

There were 281,000 new homes for sale at the end of June, down more than 4 percent from May. At the current sales pace, that represents 8.8 months of supply — the lowest level since October 2007. If that number falls to just over 6 months, analysts say, builders will feel more comfortable ramping up construction.

Fallout from the housing crisis has played a central role in the U.S. recession, now the longest since World War II. Foreclosures have spiked, homebuilders have slashed construction, and financial companies have lost billions.

But it will still be a while before homebuilders turn into an engine for the economic recovery. Construction levels are still weak because builders still have too many unsold homes sitting vacant.

FREE New Home Buying Guide - Click Here!

Housing Experts: Now Is a Perfect Time to Buy

2009-07-24T13:52:00.002-04:00

Don’t forget to remind potential buyers of something that is obvious to real estate professionals:

Now is the time to buy, but that opportunity may be slipping away.

For people who have a job and money, a dream house is within reach, writes Marc Roth, founder of Home Warranty of America and a columnist for BusinessWeek.

He points out that mortgage rates remain low, prices are still at historic lows, and the government is offering incentives for first-time homebuyers.

He also adds that the inventory of homes to buy is still large, but it is shrinking.

According to the NATIONAL ASSOCIATION OF REALTORS®, the housing inventory peaked in November 2008 at an 11-month supply.

At the end of May 2009, it had fallen to a 9.6-month supply.

Roth says anyone who dallies will miss a good opportunity to buy a first home at a terrific price or go shopping for a move-up property that is a great buy.

For A FREE Home Buying Guide: Click Here!

Source: BusinessWeek.com, Marc Roth (11/17/2009)

Staging on a Budget

2009-07-22T21:29:00.003-04:00

What's your best, most affordable staging idea? Dozens of real estate pros offer their best tips.
By Melissa Dittmann Tracey

LIVING ROOMS
Create a Focal Point
"Pick out the most visible corner and put a large plant—I've found that silk trees work best. Set up a spotlight behind it so it lights up the leaves and throws an interesting shadow on another wall. It really makes a difference in a person's perception of the space, especially if it's a large room without too much natural lighting."
—Izabela Stone, Keller Williams Realty, Apollo Beach, Fla.

Set Up a Chat Room
"Be sure that the living room furniture is positioned for conversation as well as entertainment. Potential buyers should be able to easily envision sitting in a space where they can easily talk without having to move a chair or turn completely around."
—Rana Lindhorst and Troy Schmidt, Prudential One Realty Centre, Edwardsville, Ill.

Get Rid of Carpet Dents
"Furniture often leaves indentations in the carpet. When a piece of furniture is moved, I tell my clients to put medium-sized ice cubes in the imprints. As the ice melts, it causes the compacted carpet to expand and erase those imprints."
—Shawn Moss, Century 21 C.R. O'Neil & Co.

Accent Special Features
"Place an accent by a home's feature, such as an attractive plant near a fireplace to draw the eye to it or a tall palm or two in place that directs the buyer toward another part of the home or suggests a separation of areas. This also ensures that someone often enters the home to care for it."
—Susan Cramer, HomeSmart Real Estate, Temecula, Calif.

Invoke the Outdoors
"Use a little nature in each room. I create a flow throughout the home using cuttings, flowers, dried flowers, whatever will work. Simple things, such as twigs to spell out a word or a small cutting tied with raffia around a pillow on a bed, draw the eye into the room but don't overpower it. I have even used a branch cutting to make a 'tree' in an empty corner. I try to use one piece of nature in each room to create an ongoing theme throughout the home. It works with any type of decor, whether it's modern or traditional. One important note: Always check for insects!"
—Lauren Scurlock, North Star Real Estate Inc., Virginia Beach, Va.

Indianapolis, Indiana
contact Tony Wilson of Carpenter Realtors at:
317-354-7410 or tonywilson@callcarpenter.com

Fed Chair Says Foreclosures Could Still Rise

2009-07-22T21:20:00.001-04:00

Fed Chair Ben Bernanke testified before the House Financial Services Committee on Tuesday, saying that inflation is likely to decline — not rise, as many have feared.

Therefore, the Fed intends to keep lending rates near zero.Bernanke said inflation should be “lower in 2009 than during 2008 as a whole,” in part "because of the sizable amount of slack in resource utilization.”

Bernanke also discussed foreclosures, which he said probably haven’t peaked because of the rising unemployment rate.

He downplayed the unwinding of the commercial real estate market.

“It is a sector we are paying a lot of attention to,” Bernanke said, noting that commercial mortgages are a small segment of the market. “I don’t think we need to have an enormous program to stimulate improvement.”

Source: The New York Times, Louis Uchitelle (07/21/2009)

Report: New-Home Construction Increasing

2009-07-18T10:11:00.002-04:00

Despite high unemployment and general concerns of too much existing inventory, new-home construction appears to be rising.

According to Friday’s report from the U.S. Commerce Department, construction of new homes rose 3.6 percent in June compared to May.

Building permits climbed 8.7 percent, and single-family home starts jumped 14.4 percent to 470,000, after rising 5.9 percent in May.

In real numbers, ground was broken for an estimated 58,300 houses nationwide in June, and an estimated 58,400 building permits were issued.

Here’s a look at housing starts in different U.S. regions:

Midwest: up 33.3 percent
Northeast: up 28.6 percent
South: down 1.4 percent
West: down 14.8 percent

Source: The Wall Street Journal, Jeff Bater (06/17/2009)

Contact Tony Wilson of Carpenter Realtors for a FREE New Home Construction Buying Guide: tonywilson@callcarpenter.com or 317-354-7410

Video Featuring Indianapolis

2009-07-08T10:16:00.003-04:00

Thinking of Relocating to the Indianapolis Area?

Contact Tony Wilson of Carpenter Realtors to learn more about Indianapolis and the surrounding area: tonywilson@callcarpenter.com

Treasury Makes Refinancing More Attractive

2009-07-02T17:29:00.002-04:00

The Treasury Department on Wednesday expanded its foreclosure prevention plan, lifting the current 105 percent loan-to-value cap to refinance up to 125 percent of a home’s value.

Applications to refinance mortgages have fallen as rates have increased in the last couple of weeks, but this move may bring more borrowers to the table.

At the same time, Fannie Mae and Freddie Mac have agreed to reduce the processing fee for borrowers who select a 25-year mortgage.

Fannie said in a statement, "The reduction is intended to lure borrowers to select shorter terms and build positive equity in their homes sooner than with a typical 30-year mortgage.”

Source: Reuters News, Patrick Rucker (07/01/2009)

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HOT TOPICS - Buyer Incentives

2009-07-01T10:33:00.003-04:00

$15,000 for Foreclosed Homes

The Indiana Housing and Community Development Authority (IHCDA) announced that Hoosiers may be eligible for up to $25,000 in zero-interest, non-amortizing loans for Hoosiers to purchase foreclosed homes.

Hoosiers who buy foreclosed homes to use as their primary residence can qualify for a $15,000 loan from IHCDA’s Market Stabilization Fund.

The Federal Home Loan Bank of Indianapolis has committed to supply matching grants of up to $10,000.

“When Hoosiers open the door to their new home, they open several windows of opportunity,” Lt. Governor Skillman said. “This is a unique use of federal dollars that will encourage homeownership while revitalizing communities.”

The money comes from HUD’s Neighborhood Stabilization Program (NSP), which allocated $84 million to IHCDA. The state will use $33 million of that allocation for the Market Stabilization Fund. Assistance from this fund will be made available to income-qualified individuals and families who choose to purchase foreclosed homes in areas of the state in greatest need of assistance.

Areas of greatest need are identified, with the assistance of the Indiana University Center for Urban Policy and the Environment, using a combination of HUD-provided data and proprietary data. Indiana is the only state using NSP money in a statewide program to help people buy foreclosed homes.

How the Market Stabilization Program (MSP) Works:

IHCDA will offer up to $15,000 (not to exceed 20% of purchase price) to assist home buyers with the acquisition and/or rehabilitation of a foreclosed residential property located within an area of greatest need.

These funds may be used in conjunction with the IHCDA First Home product, FHA, VA, USDA, or prime fixed rate product. No adjustable rate or subprime mortgage products will be allowed for the purchase of these homes.

Home buyers may use these funds for closing costs and down payment assistance related to the purchase of a foreclosed home or residential property that will be used as the primary residence.
To be eligible for rehab funds a residential structure must not meet local building code and therefore is unable to be purchased in its present condition.

Buyers may use both acquisition and rehabilitation assistance in the purchase of a home, but the combined assistance may not exceed $15,000.

These funds will be in the form of a zero-interest, non-amortizing, second mortgage loan. These funds do not have to be repaid as long as home buyers use the home as a principal residence for at least ten years. If the home buyer sells the home within the first five years, the subsidy is repayable to IHCDA on a shared net proceeds basis. If the home buyer refinances within the first five years, the entire subsidy is repayable to IHCDA.

After year 5 and through year 10, the home buyer will retain 20% in equity of the award amount per year.

This funding will be available to home buyers that are at or below 120% of area median income and who intend to occupy the home themselves.
To determine income qualification, compare household income and family size to the income guidelines listed below.

To use the current income limits for MSP as a second mortgage only: MSP Stand-Alone Limits.

To use the current income limits for MSP in conjunction with a Municipal Revenue Bond (MRB) or Mortgage Credit Certificate (MCC): MSP Income Limits with Bond or MCC.

Home buyers will be required to participate in 8 hours of pre-purchase education provided by an IHCDA certified counselor.

IHCDA will be coordinating with lenders/servicers, Fannie Mae, Freddie Mac and HUD to list foreclosed properties on a centralized Web site. Visit www.indianahousingnow.org and click on the Market Stabilization Program link to determine if a foreclosed property is in an eligible neighborhood. Lenders will be required to sell the properties listed on the site at a discount that meets or exceeds NSP guidelines.

MSP Brochure and Detailed Information:

The following link is a consumer friendly brochure on the MSP program: Consumer Brochure.

To view a PowerPoint with detailed MSP information click here: NSP PowerPoint.

If you would like more information on all of IHCDA’s programs, please visit their Web si
te at www.in.gov/ihcda.

Federal Home Loan Bank of Indianapolis's Program:

The Federal Home Loan Bank of Indianapolis’s (FHLBI) Neighborhood Stabilization Assistance (NSA) program is offering matching grants of up to $10,000. The main qualification for the NSA program is that the home buyer must have already secured IHCDA funds. Once IHCDA funding is secured, proceed by contacting an FHLBI member financial institution. Find a list of member institutions, program guidelines and other information by clicking here.

View a step-by-step guide from the Indiana Association of REALTORS® here.

$8000 First-Time Home Buyer Tax Credit

The home buyer tax credit is one of 10 key provisions of the American Recovery and Reinvestment Act signed by President Obama into law on Feb. 17, 2009.

The bill provides for an $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.

The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

Tax Credit Bridge-Loan Information

HUD Secretary Shaun Donovan recently announced a program that would allow borrowers to use the first-time homebuyer tax credit for a down payment or closing costs on an FHA insured mortgage to scores of REALTORS® at the 2009 NAR Mid-Year Conference.

Under the guidelines of the program, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent. However, according to senior HUD officials, loans cannot be used to cover the minimum 3.5 percent requirement. Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge-loan to significantly bring down the upfront costs of buying a home, but would still have to come up with the minimum 3.5 percent down-payment.

Secretary Donovan said “We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit.”

Read the detailed guidelines in HUD Mortgagee Letter 2009-15.

Although this program has been formally announced, details on how Indiana will implement the program are not yet available. The Indiana Association of REALTORS® is currently working with the Indiana Housing and Community Development Authority (IHCDA) on details for the state. Watch future editions of Fast Track for additional information as is becomes available. If you have further questions, contact MIBOR’s Government Affairs department at 317/956-1912.

The links below are provided by the National Association of REALTORS® (NAR):

Chart Highlighting the Major Modifications to the First-Time Homebuyer Tax Credit
NAR's Presentation: The 2009 First-Time Homebuyer Tax Credit
Download the IRS First-Time Homebuyer Tax Credit Form 5405
IRS Filing Guidance on First Time Homebuyer Tax Credit
Frequently Asked Questions

For more information please visit NAR’s Home Buyer Tax Credit Web page by clicking here.

For information about purchasing a home through these programs contact:

Tony Wilson
317-354-7410
tonywilson@callcarpenter.com

Home Buyer Tax Credit Could Expand

2009-06-26T14:01:00.002-04:00

A first-time home buyer tax credit of up to $8,000 has helped to move housing inventory during an otherwise sluggish real estate cycle.

Now both legislators and the business community are hoping to build on the incentive's success by expanding it.

A number of bills have been introduced in the House and the Senate that lobby for an expansion of the measure.

Among the proposed changes:

Setting a new cap of $15,000.

Extending the tax break into mid-2010.

Making the benefit available to all home buyers, not just first-timers.

Offering a separate tax credit to $3,000 for borrowers who refinance.

USA Today, Stephanie Armour (06/22/09)

© Copyright 2009 Information Inc.

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Contact Tony Wilson at: tonywilson@callcarpenter.com

VA Loan Still a Good Option in a Bad Economy

2009-06-16T12:13:00.002-04:00

More servicemembers and veterans are using their Department of Veterans Affairs (VA) home loan guaranty benefit, as VA's loan program remains a strong option in today's housing market.

VA is experiencing a significant increase in home loan volume, with more than 162,000 home loan guaranties provided this year, an increase of more than 31 percent over the same period last year.

"VA attributes this increase to the favorable terms traditionally offered with VA loans and the elimination of many no-downpayment products in the conventional mortgage market," said Secretary of Veterans Affairs Dr. James B. Peake.

Visit: http://www.bestratetoday.info/ for a quick V.A. Loan Quote!

Congress Weighs Buyer Tax Credit Expansion

2009-06-12T16:25:00.002-04:00

Legislation introduced in Congress Wednesday would expand the tax credit now limited to first-time homebuyers to any purchaser of a home and increase the maximum available to $15,000.

The tax credit passed earlier this year is limited to $8,000 and has income caps.

U.S. Sen. Johnny Isakson, a Georgia Republican, introduced the legislation, and Senate Banking Committee Chair Christopher Dodd, a Connecticut Democrat, quickly stepped up to co-sponsor.

The National Association of REALTORS® and the National Association of Home Builders have said they would like to see the tax credit improved.

Source: The Wall Street Journal, Jessica Holzer (06/10/2009)

Relocating?

2009-06-11T14:00:00.008-04:00

Relocating to another town or city without the assistance of a local Realtor can be very challenging. Consider this, Realtor services are free to buyers. That's right, free! They are familiar with the area and can be very helpful in selecting the area that you are looking for.

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Splash Island truly is your Caribbean vacation close to home!

About Splash Island

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Call/Text Tony Wilson at 317.354.7410 or email at tonywilson@callcarpenter.com

The Two Latest Signs Housing Is Recovering

2009-06-05T15:14:00.002-04:00

Here’s more evidence that the housing market is recovering.

Two major home builders, Toll Brothers Inc. and Hovnanian Enterprises Inc., say their losses were shrinking compared to last year because buyers are coming back to the market.

Other encouraging news came from HIS Global Insight, a research firm, which said home prices fell on average at an annual rate of 2.2 percent in the first quarter in 199 of 330 metropolitan areas. That compares with a 12.5 percent decline in the fourth quarter of 2008 in 312 metropolitan areas.

"While it's too early to see a bottom of this housing downturn," the report said, the latest data "may signal that the market is beginning to stabilize."

Source: The Wall Street Journal, James R. Hagerty and John Spence (06/04/2009)

Should Home Buyers Lock in Rates?

2009-06-05T14:13:00.000-04:00

Should home buyers apply for loan lock-in rates that are at their highest level since February? Or should they bet that the federal government will find a way to lower rates?

Money magazine staffers say the wildcard is Federal Reserve Chair Ben Bernanke. The Fed has been buying up long-term Treasuries and mortgage-backed securities to keep rates low. But when rates started to climb in the last week, the Fed seemed to signal that it wasn’t too concerned.

But now that rates have climbed to a six-month high, some observers believe that the Fed will refocus its efforts and push them down.

“It’s one thing to have a Treasury yield backup when mortgage rates are still declining, but that is no longer the case. The yield on the 30-year fixed-rate is already up 20 basis points from the lows; 1-year ARMs have jumped 17 basis points. This is not what the Fed wants to see,” says David Rosenberg, a former Merrill Lynch economist now at Gluskin Sheff.

Source: CNNMoney.com, Carla Fried (05/29/2009)

NAR: Existing-Home Sales Jump

2009-06-04T15:05:00.002-04:00

Existing-home sales rose in April with strong buyer activity in lower price ranges, according to the NATIONAL ASSOCIATION OF REALTORS®.

Existing-home sales — including single-family, townhomes, condominiums and co-ops — increased 2.9 percent to a seasonally adjusted annual rate of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March. Yet, home sales were 3.5 percent below the 4.85 million-unit level in April 2008, according to NAR.

Lawrence Yun, NAR chief economist, says first-time buyers continue to influence the market but there also is a seasonal rise of repeat buyers.

“Most of the sales are taking place in lower price ranges and activity is beginning to pickup in the midprice ranges, but high-end home sales remain sluggish,” he says. “The Federal Reserve needs to help restore liquidity for the jumbo mortgage market by buying these loans under the TALF program.”

Buyers Once Again Emerge

An NAR practitioner survey in April showed first-time buyers declined to 40 percent of transactions, implying more repeat buyers are entering the traditional spring home-buying season. It also showed the number of buyers looking at homes has increased 14 percentage points from a year ago.

“This is consistent with our forecast for home sales in the latter part of the year to be 10 to 20 percent higher than the second half of 2008,” Yun says.

It's critical that distressed homes be quickly cleared from the market, Yun says.

“Fortunately, home buyers are being attracted to deeply discounted prices and are bidding up many foreclosed listings, particularly in California, Nevada, and Florida — this will set the stage for healthy market conditions going forward,” Yun says.

NAR President Charles McMillan says conditions are optimal for buyers with good jobs and long-term plans.

“We have record low mortgage interest rates, a wide selection of homes and affordable prices in most areas,” he says. “When you add the $8,000 first-time buyer tax credit, it’s hard to imagine a better time to make an investment in your future through homeownership.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.81 percent in April from 5.00 percent in March; the rate was 5.92 percent in April 2008; data collection began in 1971.

A Closer Look at the Numbers

National median existing-home price: for all housing types, was $170,200 in April, which is 15.4 percent below 2008. Distressed properties, which accounted for 45 percent of all sales in April, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Total housing inventory: at the end of April, rose 8.8 percent to 3.97 million existing homes available for sale, which represents a 10.2-month supply at the current sales pace, compared with a 9.6-month supply in March. “The gain in inventory is largely seasonal from sellers entering the spring market," Yun says. "Even with the rise, inventory over the past few months has remained consistently lower in comparison with a year earlier."

Single-family home sales: rose 2.5 percent to a seasonally adjusted annual rate of 4.18 million in April from a level of 4.08 million in March, but are 2.8 percent below the 4.30 million-unit pace in March 2008. The median existing single-family home price was $169,800 in April, which is 14.9 percent below a year ago.

Existing condominium and co-op sales: increased 6.4 percent to a seasonally adjusted annual rate of 500,000 units in April from 470,000 in March, but are 9.4 percent lower than the 552,000-unit pace a year ago. The median existing condo price was $173,900 in April, down 18.5 percent from April 2008.

By Region

NAR reported the following with existing-home sales across the country:

Northeast: jumped 11.6 percent to an annual pace of 770,000 in April, but are 10.5 percent below April 2008. Median price: $237,400, which is 9.6 percent lower than a year ago.
Midwest: slipped 2 percent in April to a level of 1.00 million and are 9.9 percent lower than a year ago. Median price: $138,800, down 11.7 percent from April 2008.
South: increased 1.8 percent to an annual pace of 1.74 million in April but are 8.9 percent lower than April 2008. Median price: $148,000, which is 12.8 percent below a year ago.
West: rose 3.5 percent to an annual rate of 1.17 million in April and are 19.4 percent higher than a year ago. Median price: $222,600, down 21.8 percent from April 2008.

Source: NAR

www.BestRateToday.info

Forecasters Say Recession Nearing End

2009-05-29T14:04:00.000-04:00

More than 90 percent of economists think the recession is nearing its end, but they don't expect the economy to soar anytime soon.

Nearly 75 percent of economists, surveyed by the National Association for Business Economics, say that the recession will end in the third quarter. Another 19 percent think the turnaround will come in the fourth quarter. The rest are betting on the first quarter of 2010.

Americans seem to believe that things are getting better too. The Conference Board's Consumer Confidence Index rose 14.1 points in May to 54.9, the second month in a row in which there have been an increase.

Forecasters say that home sales will bottom out in the second quarter, an important stabilizing factor.

Source: The Associated Press, Jeannine Aversa (05/27/2009)

HUD: $8000 Tax Credit Can Be Used on Closing Costs

2009-05-29T13:57:00.002-04:00

FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.

Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.

The loans can't be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning. Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent downpayment.

There remain many sources of assistance for buyers needing help with the 3.5 percent downpayment, including many state and local government instrumentalities and nonprofit lenders.

In addition, some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their downpayment. These programs are separate from what HUD announced today.

The first-time homebuyer tax credit was enacted last year--and improved upon earlier this year--to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven't owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.

Learn more about the credit, including how to apply for it this year even if you've already filed your taxes, at REALTOR.org.

Source: Robert Freedman, REALTOR® Magazine Online

For more information contact Tony Wilson at: tonywilson@callcarpenter.com

More Buyers Lured to Foreclosed Properties

2009-05-25T17:17:00.004-04:00

Many households say that foreclosures are a bargain and are increasingly eager to buy them, according to a Harris Interactive survey conducted for Trulia.com and RealtyTrac.

The survey found that 55 percent of U.S. adults are at least somewhat likely to consider purchasing a foreclosed home, up from 47 percent who answered the same question in November 2008.

But buyers aren’t naïve about the hassles involved with purchasing foreclosed property. About 85 percent said that they could identify negative aspects, up from 80 percent who felt the same way last November.

71 percent were concerned about hidden costs;
46 percent believe the process is risky;
31 percent fear the property will lose value.Buyers of foreclosures also expect hefty discounts – at least 25 percent.

Source: RealtyTrac.com and Trulia.com (05/20/2009)

For information about the Neighborhood Stabilization Program click here: http://carpenterrealtors.blogspot.com/search?q=neigborhood+stabilization+program

Home Affordability Hits 18-Year High

2009-05-25T17:11:00.002-04:00

Housing affordability is reaching record levels with nearly 73 percent of all homes sold in the first three months of 2009 considered affordable.

That’s the highest percentage ever reported by the 18-year-old, quarterly Housing Opportunity Index, compiled by the National Association of Home Builders and Wells Fargo Bank.

To be considered affordable, a family making the national median household income of $64,000 must be able to devote no more than 28 percent of their income toward housing costs.

The most affordable major metropolitan areas and their median home prices are:

1. Indianapolis: $98,000
2. Youngstown, Ohio: $67,000
3. Akron, Ohio: $78,000
4. Grand Rapids, Mich.: $97,000
5. Syracuse, N.Y.: $85,000
6. Warren, Mich.: $119,000
7. Cleveland: $86,000
8. Buffalo, N.Y.: $90,000
9. Toledo, Ohio: $78,000
10. Dayton, Ohio: $85,000

The 10 least affordable metropolitan areas are:

1. New York City: $418,000
2. San Francisco: $525,000
3. Los Angeles: $288,000
4. Nassau-Suffolk, N.Y.: $375,000
5. Honolulu: $360,000
6. Santa Ana: Calif., $360,000
7. Newark, N.J.: $315,000
8. Miami: $185,000
9. McAllen, Tex.: $106,000
10. El Paso, Tex.: $127,000

Source: CNNMoney, Les Christie (05/19/2009)

Contact Tony Wilson at tonywilson@callcarpenter.com for a FREE Indianapolis Area Buying Guide!

Mortgage Rates Continue to Fall

2009-05-23T11:24:00.000-04:00

Freddie Mac reports a drop in the 30-year fixed mortgage rate to 4.82 percent during the week ended May 21 from 4.86 percent the prior week.

Meanwhile, the 15-year fixed mortgage rate dipped to 4.5 percent.

The Federal Reserve is working to hold down rates by purchasing upwards of $1.25 trillion in mortgage-backed securities and $300 billion in Treasuries.

Mortgage rate premiums have declined substantially over the last couple of months even as Treasury yields climbed.

Source: Investor's Business Daily (05/22/09)

For current interest rates visit: www.BestRateToday.info

HUD: Homebuyer Tax Credit Loans Still on Track

2009-05-23T11:17:00.002-04:00

News reports that the federal government is backing away from its plan to permit eligible borrowers to monetize the first-time homebuyer tax credit are off the mark, a spokesperson for the U.S. Department of Housing and Urban Development says.

"The technical details are still being finalized and will soon be published in a mortgagee letter and posted on our Web site," Lemar Wooley, a HUD spokesperson, told REALTOR® magazine Wednesday afternoon.

Under the guidance that's under development, state agencies and other HUD-approved entities would be able to provide short-term bridge loans that households could use to help with their downpayment. The loans would be repaid with the proceeds from the households' federal tax credit.

The loans were announced on the opening day of NAR's 2009 Midyear Legislative Meetings in Washington, D.C., last week. In his announcement, HUD Secretary Shaun Donovan said guidance would be issued shortly.

When the guidance is released, it is expected to cover eligible lenders and set parameters for loan terms and repayment.

Source: REALTOR® Magazine Online

Contact Tony Wilson at tonywilson@callcarpenter.com About the $8,000 Tax Credit, the $15,000 Foreclosure Program, and the $25,000 Foreclosure Program. It Pays To Stay Informed!

Housing Market Stabilization FAQ

2009-05-18T15:50:00.001-04:00

Click Here: http://www.in.gov/ihcda/files/MSP_Frequently_Asked_Questions.pdf

Buying/Selling Heritage Lake Property

2009-05-07T22:28:00.002-04:00

Click here for links to Realtors and Real Estate Companies

Buying Heritage Lake Property

If looking for property to purchase you can call any Realtor. The POA Office has a book (black three ring binder) in which owners can offer property for sale.

Selling Heritage Lake Property

When you sell a Heritage Lake property, you have the same basic options you would with most real estate. You may sell "by owner" or may employ a broker. There are, however, certain restrictions as to how lots and homes may be physically marked for sale. They are as follows:
(If you place a "for sale" sign on your property you must follow this policy.)

* Orange markers at the property corners are encouraged so long as they are no more than three feet tall with six (6) by six (6) inch placard with the subdivision initials and lot number on them.
*ONLY ONE "FOR SALE SIGN SHALL BE ALLOWED ON ANY LOT AT ONE TIME with only the following exceptions.
*Waterfront homes (as designated by the list on file at the POA Office) shall be allowed one additional sign at the water side of the property if the sign is mounted on the home, attached porch or garage. Signs are not allowed on docks or steps.
*Lots combined by deed shall be counted as one lot.
*ONLY "Open House" directional signs shall be allowed between sunrise and sunset the day of the open house. (Saturday and Sunday only). No other directional signs shall be allowed.
The sign shall not be located closer to the pavement than the right-of way (approximately) twenty feet (20').
*The sign frame shall measure no more than two and one half feet by two and one half feet2 1/2' X 2 1/2') and no taller than five feet (5') from the ground. (This will include most Realtor signs.)
* All property for sale must be mowed and maintained to a height not to exceed eight (8) inches, from the street to the entire depth of the property or as decided by the POA Manager.
*All signs shall have the appearance of being professionally made.
*No sign shall be allowed to fall into disrepair.
*Realtors/owners/agents must notify the POA Office of the location of new signs.
*Signs in violation of this policy as determined by the POA Manager, will be removed and not returned.
* If you use only the orange markers, there is no criteria for mowing the lot and no notification is necessary.

For a Free Heritage Lake Home Buying Guide:

E-mail Tony Wilson at tonywilson@callcarpenter.com