Posted on Tue, Jul 13, 2010
Allow Plenty of Time - While it may be tempting to try and visit as many properties as possible on a single day, "overbooking" won't give you enough time to linger and fully tour each individual home. If you find a house you truly like, you will probably spend more time reviewing each room in greater detail. Assume that each house you view will hold your interest enough for a lengthy exploration.
Dress Comfortably - House hunting isn't a job interview, so dress casually and comfortably for the season. Wear slip-on shoes and adequate socks - homes with new carpet or flooring will often include "please remove shoes" signs. You will be doing a lot of walking and taking trips up and down stairs, so supportive footwear is a must. Clothing should fit comfortably enough to accommodate reaching up or bending/crouching down to examine cupboards both high and low.
Carpool - Taking just one car is particularly convenient when viewing multiple properties on the same day. A one vehicle approach ensures that no one gets separated or lost. Also, by moving over to the passenger seat you're free to consider the merits of each last house and pay attention to the neighborhood near each property, rather than focus your energy on squinting at street signs.
Pay Attention to the Surroundings - Speaking of the neighborhood; make sure you pay attention to the area close by each home on the way in. What kind of shopping opportunities and facilities are within a short distance? Are there appealing destinations within walking distance? What are the schools like nearby? How far will your commute be? Are many other homes for sale in the immediate area?
The idea is to have some feeling of whether or not the neighborhood is right for you before you ever set foot in the actual home. If you're lucky enough to fall in love with the house itself, knowing the lay of the land ahead of time can give you the confidence to make an immediate offer.
Use Your Nose - Generally speaking, a bad (or unidentifiable) smell inside or outside the home is not a good sign. Likewise, be somewhat suspicious if the home is overpowered by the smell of potpourri or intense candles in every room, as this can be an attempt by the seller to mask problematic odors. Mildew and mold smells indicate much larger problems - mold removal can cost thousands of dollars, and locating/fixing moisture leaks can be a difficult task. Pet smells or smoke smells can be minimized with cleaning, but will likely take time to fully dissipate. If you are interested in a home with a strong smell, hire a qualified and experienced home inspector who will unmask the cause of the odor.
Posted on Thu, Feb 11, 2010
Just over 40% of available homes for sale had reduced prices in January 2010, compared with 44% in December 2009, according to a monthly survey of home listings in 27 markets.
With fewer reduced price homes available in January, sellers were able to ask for their original list prices, rather than cut them to attract buyers.
"Sellers are taking a realistic look at current market conditions before listing their homes," said Pat Lashinsky. "We have a lot fewer homes for sale right now than we did last year, and we are seeing more sellers sticking to their original list prices, rather than cutting them to try to attract buyers."
Results of the survey include:
- January was the fifth consecutive month of fewer priced reduced homes on the market, with sellers reducing list prices by $21,925 on average across 27 markets
- Homeowners in San Diego reduced prices by the highest dollar amount, cutting an average of $44,901
- Homeowners in Houston reduced prices by the lowest dollar amount, cutting an average of $10,000
- Markets with the lowest percentage of price-reduced MLS-listed homes were Los Angeles and San Diego (both at 32.6%), San Francisco (31.9%), and Denver (29.5%)
- One out of every two home listings in Jacksonville (49.9%) and Phoenix (48.8%) had cut their list prices, the highest percentage in the survey
Source
Posted on Thu, Feb 04, 2010
This past November Congress extended the benefits for first time buyers, all you have to do is buy your house before April 30th and you could be eligible for up to $8,000 back from the government.
If you're a current homeowner who is looking to trade up or down you could be eligible for up to $6,500 back.
Below are the monthly housing trends update that includes national and regional real estate trends.
Posted on Sun, Jan 24, 2010
RISMedia reports:
MyHouseDeals.com surveyed residential real estate investors in the Houston area about the current investing climate and outlook for the real estate market in 2010. According to the survey, Houston investors have a positive overall outlook on the market. Seventy-seven percent of the 122 investors surveyed believe now is a good time to invest in Houston real estate, while 23% of them are neutral. Only 3% of investors surveyed believe now is not a good time to invest.
When asked about Houston home values, 36% of investors believe values have already hit a bottom and will be flat or up in 2010. Fifty percent believe home values will hit a bottom sometime in 2010, and 13% believe home values will decline beyond 2010.
Fifty-six percent of investors surveyed indicated an overall optimistic outlook for the year, with 5% of investors rating themselves as highly optimistic. In comparison, 2% feel highly pessimistic, with an overall 20% indicating a negative view on the market. Twenty-five percent of investors surveyed had a neutral outlook for 2010.
Read the full article on RISMedia.com.
Posted on Tue, Dec 29, 2009
This week's lending rates:
30 YR FIXED 5.25%
15 YR FIXED 4.75%
FHA/VA 5.5%
Rates are on the rise and have been for the last 6 business days! See chart below.
Home Sales Rise Again:
Sales of previously owned homes in Houston (which make up 86% of all home sales) jumped last month to their highest level in nearly three years. This is just the latest sign that points to an economic recovery.
The National Association of Realtors said that existing home sales increased 7.4% to an annual rate of 6.54 million units. This is the fastest pace since February 2007. The housing market, the main trigger of the most painful U.S. recession in 70 years, is stabilizing according to many analysts.
A separate report from the U.S. Federal Housing Finance Agency showed home prices rose 0.6 percent in October from September.
What Happened to Rates Last Week?
We all got a little coal in our stocking for Christmas as agency (Fannie Mae and Freddie Mac) mortgage backed securities lost 138 basis points last week. This is important because conventional 30 year fixed rates are based upon the sale of these agency's mortgage backed securities. This caused 30 year fixed interest rates to rise dramatically last week.
What to watch out for this week:
The following are the major economic reports that will hit the market this week. They each have the ability to affect mortgage rates. I will watch these reports closely for you and let you know if there are any big surprises.
I know you are busy and it is virtually impossible for you to keep track of what is going on in the economy. I monitor the trading of Mortgage Backed Securities; the only thing conventional and government mortgage rates are based upon. So, I know if there is going to be a trend reversal in mortgage rates.
Contact the Home Coach Team Houston when you need help buying, selling, or financing a home.
Posted on Sun, Dec 27, 2009
Reported today from the LA Times:
Home buyers hoping to take advantage of a new or extended tax credit should not procrastinate: This third bite at the apple will be the last.
Proponents of the $8,000 credit for first-time buyers and the $6,500 credit for move-up buyers made it clear during the debate on Capitol Hill that the benefits would not be renewed when they expire. And a lobbyist for the National Assn. of Realtors confirmed that at the group's annual convention last month.
Lawmakers "made us promise practically in blood that we would not come back" for another extension, Linda Goold, the Realtor group's director of tax policy, told her members.
During the debate, Sen. Johnny Isakson (R-Ga.), a former real estate broker and a longtime proponent of the tax credit, promised his colleagues, "This is the last extension."
And Senate Finance Committee Chairman Max Baucus (D-Mont.) said, "It is important that this tax credit does not become a permanent fixture of the tax code."
As it stands now, buyers who meet the income eligibility requirements have until midnight April 30, 2010, to ink a deal and must close by midnight June 30 to qualify.
Congress enacted the original $7,500 first-time buyer credit as part of the Housing and Economic Recovery Act of 2008. But because the credit had to be paid back it was more like a no-interest loan than a true credit and there were relatively few takers.
So in the American Recovery and Reinvestment Act of 2009, lawmakers upped the ante to a maximum of $8,000 for new buyers who closed before Dec. 1. They also said the new credit need not be paid back unless the taxpayer moves out within the three-year period following the purchase.
This second attempt at stimulating sales worked so well that the housing lobby implored Congress to help keep the momentum going. So lawmakers extended the deadline for first-timers and added a "long-term resident" tax credit for repeat buyers who owned their current home for at least five consecutive years out of the last eight.
Incidentally, the credit is not a flat $8,000 for new buyers and $6,500 for repeat buyers. It is 10% of the purchase price up to those ceilings. There is no credit if the price of the house is above $800,000.
Read more at the LA Times article.
Posted on Tue, Dec 08, 2009
Historically the Houston housing market responds to a major market correction with subsequent shortage of inventory and an increase in pricing. Examination of the current indicators would suggest 2010 fitting that model. Consider that major builders are publically traded companies. The executives of those comapnies must turn end of the year profits for bonuses. Liquidating inventory helps generate revenue. Even selling below costs may help get dead inventory off the books in 2009 and help 2010 be a profitable year. I have talked with few builders that plan on building any spec homes for the spring. They and their lenders are being very cautious. Banks are not loaning on speculative building. Henceforth the majority of homes available in the spring and summer will be contract to build homes that were negotiated 120 days before. Builders do not negotiate prices on contract to build homes. It is the base price plus upgrades and premiums. So it stands to reason that New Construction homes will be going up in price. The best deals are to be struck now before the end of the year and certainly before the weather changes and we have more daylight. Less inventory and higher prices on new homes will have a positive impact on the resale market, lowering days on the market and increasing prices.
Add the extension and expansion of the $8K and $6K tax credit through Spring and ending in the summer and it appears that the market will be shifting from a buyers market to a sellers.
Agents that are asleep at the wheel over The Holidays and not sharing the future in an informative educational way with their clients are neglecting their fidicuary responsibilities. Buyers deserve to know in advance of media reports (which are always 6 months late) that now is the time to act if they expect to get the best deals.
Posted on Thu, Dec 03, 2009
Our monthly housing trends update includes national and regional real estate trends.
We're seeing all-time low interest rates, and many people are sitting on the sidelines. How much house can you afford? Well, at 5% interest, for every $100,000 you borrow, you need about $33,000 in pre-tax annual income. The Home Coach Team is happy to be a trusted resource for you. Please let us know if we can help.
National Housing Indicators
Existing Home Sales (October 2009):
6.10 millions units*
Existing Home Median Price (October 2009):
$173,100
Housing Starts (October 2009):
529,000 units*
New Home Sales (October 2009):
430,000 units*
*seasonally adjusted annual rate
Source: NATIONAL ASSOCIATION OF REALTORS®.
National Economic Indicators
Homeownership Rate
| 3rd Qtr 09 | 3rd Qtr 08 |
| | |
| 67.6% | 67.9% |
Thehomeownership rate (67.6 percent) for the current quarter was notstatistically different from the third quarter 2008 rate (67.9 percent)or from last quarter's rate (67.4 percent).
New Home Sales
| Oct 09 | Sept 09 |
| | |
| | |
| +6.2% | -2.4% |
Salesof new one-family houses in October 2009 were at a seasonally adjustedannual rate of 430,000. This is 6.2% above the revised September 2009estimate of 405,000.
National Home Sales
National Sales Price of Homes
| | Homes
$173,100 | Single Family
$173,100 | Condo/Co-op
$172,900 |
| vs. last year: |  -7.1% | -6.8% | -10.4% |
Regional Home Sales
| | U.S.
6,100,000 | Northeast
1,060,000 | Midwest
1,430,000 | South
2,300,000 | West
1,310,000 |
| vs. last month: |  10.1% | 11.6% | 14.4% | 12.7% | 1.6% |
| vs. last year: | 23.5% | 27.7% | 28.8% | 25.7% | 12.0% |
Regional Sales Price of Homes
| | U.S.
$173,100 | Northeast
$235,400 | Midwest
$146,600 | South
$151,100 | West
$220,200 |
| vs. last year: | -7.1% | -2.6% | 1.1% | -6.3% | -14.7% |
| Click Here to view details |
Regional Single Family Home Sales
| | U.S.
5,330,000 | Northeast
770,000 | Midwest
1,290,000 | South
2,080,000 | West
1,190,000 |
| vs. last month: | 9.7% | 10.0% | 13.2% | 13.0% | 0.8% |
| vs. last year: | 21.4% | 24.2% | 27.7% | 23.1% | 11.2% |
|
Regional Sales Price of Single Family Homes
| | U.S.
$173,100 | Northeast
$239,500 | Midwest
$145,900 | South
$153,000 | West
$225,700 |
| vs. last year: | -6.8% | -1.2% | 3.1% | -5.2% | -15.0% |
Regional Condo/Co-Op Sales
| | U.S.
770,000 | Northeast
290,000 | Midwest
140,000 | South
220,000 | West
120,000 |
| vs. last month: | 13.2% | 16.0% | 27.3% | 10.0% | 9.1% |
| vs. last year: | 40.8% | 38.1% | 42.9% | 52.8% | 26.3% |
Regional Sales Price of Condo/Co-Ops
| | U.S.
$172,900 | Northeast
$224,400 | Midwest
$153,200 | South
$133,300 | West
$165,400 |
| vs. last year: | -10.4% | -6.3% | -16.7% | -13.3% | -11.5% |
Posted on Thu, Dec 03, 2009
Do you qualify?
You qualify for the Extended Homebuyer Tax Credit if:
You meet IRS income and homeownership rules.
You sign a binding contract by April 30, 2010.
You close on a home purchase by June 30, 2010.
The home of your dreams may come with a bonus: a tax credit.
There's happy news for current homeowners: If you intend to sell your home and buy another in 2009 or 2010, you may be eligible for a federal tax credit of up to $6,500. The Extended Homebuyer Tax Credit legislation, passed in November 2009, also shares the wealth with first-time homebuyers-up to $8,000.
Are you eligible?
You're considered a current homeowner under IRS rules if you've used the home being sold or vacated as a principal residence for five consecutive years within the last eight. You're a first-time homebuyer if you or your spouse haven't owned a home for the three years before your purchase.
In both cases, keep in mind that the credit amount you're eligible for begins to decrease for joint filers if your modified adjusted gross income is $225,000 ($125,000 for individuals); it disappears at $245,000 ($145,000 for individuals).
The ultimate amount of your credit depends on the price of the home and your income.
To claim your benefit:
Close on a new principal residence between Nov. 7, 2009, and April 30, 2010. You can settle as late as June 30, 2010, as long as you have a binding contract by April 30.
Don't spend more than $800,000 on your new home.
When you submit your tax return, attach a copy of the settlement statement you received at closing. Check with the IRS or your tax adviser to confirm what additional documentation may be needed.
Decide whether to:
- Apply the credit to your 2009 tax return, filed on or before April 15, 2010,
- File an amended 2009 return; or
- Apply the credit on your 2010 return, filed on or before April 15, 2011.
First-timers who purchased a home between Jan. 1, 2009, and Nov. 6, 2009, may also be eligible for the $8,000. Keep in mind that the income limits in this case are tighter than for those who purchased after Nov. 7.
Apply the credit to your 2009 taxes
To claim the credit on your 2009 tax return:
- Complete IRS Form 5405 to determine the amount of your available credit.
- Apply the credit when you file your 2009 tax return or file an amended return.
- Attach documentation of purchase to your return or amended return.
Which properties are eligible?
You can apply the credit to primary residences, including single-family homes, condos, townhomes, and co-ops.
Do I need to repay the tax credit?
No, not if you occupy the purchased home for three years or more. However, if the property is sold during this three-year period, the full amount of the credit will be recouped on the sale.
This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.
Resource: NATIONAL ASSOCIATION OF REALTORS®
HouseLogic.com
Posted on Mon, Nov 23, 2009
Comparison to hurricane-battered market and 2009 homebuyer tax credit are factors |
HOUSTON — (November 19, 2009) — The lingering effects of Hurricane Ike back in October 2008 combined with recent homebuying activity spurred by the federal government’s $8,000 first-time homebuyer tax credit produced positive numbers for the Houston real estate market in October.
For the second month in a row, both property sales volume and pricing recorded gains. According to the latest monthly data compiled by the Houston Association of REALTORS® (HAR), October volume of single-family home sales across the greater Houston area rose 13.8 percent compared to October 2008. Total property sales climbed 14.1 percent in October on a year-over-year basis.
At $149,000, the October single-family home median price—the figure at which half of the homes sold for more and half sold for less—rose 5.0 percent from one year earlier, representing the sixth straight monthly increase in median price. The average price of a single-family home in Houston was $198,639, up 3.2 percent last month versus October 2008. Both figures reached the highest levels ever for a month of October in Houston.
Foreclosure property sales were flat month-over-month in October, making up 18.6 percent of all single-family home sales in the Houston area, but down compared to 25.8 percent in October 2008 and the 12-month peak of 34.0 percent in January of this year. The median price of October foreclosure sales reported in the Multiple Listing Service (MLS) rose 3.8 percent to $88,293 on a year-over-year basis.
Sales of all property types in Houston for August totaled 5,716, up 14.1 percent compared to October 2008. Total dollar volume for properties sold during the month was $1.0 billion versus $942 million one year earlier, representing an increase of 15.9 percent.
“Hurricane Ike had a lasting effect on the greater Houston real estate market last fall, so it’s no surprise to have the kind of year-over-year improvement we’ve now seen for two months in a row,” said Vicki Fullerton, HAR chair and broker of record at RE/MAX of The Woodlands & Spring. “Many Houston REALTORS® have reported that the first-time homebuyer tax credit was extremely effective at drawing consumers to the marketplace, and we believe momentum will build with the federal government’s extended and expanded incentive program.”
October Monthly Market Comparison
The month of October brought Houston’s overall housing market positive results when all listing categories are compared to October of 2008. Total property sales, total dollar volume and both median and average single-family home sales prices were all up on a year-over-year basis.
The number of available properties, or active listings, at the end of October fell 7.3 percent from October 2008 to 45,424. That housing inventory represents 96 fewer active listings than one month earlier, in September 2009.
October’s month-end pending sales—those listings expected to close within the next 30 days—totaled 3,673, which was 2.6 percent higher than last year. An increase typically signals that the next month’s sales will improve further, however because this data compares to a period in which Hurricane Ike interrupted many local real estate transactions, that signal is unclear. The months inventory of single-family homes for October came in at 6.1 months, down from 6.3 months one year earlier, and remains healthier than the national months inventory of single-family homes of 7.8 months, reported by the National Association of REALTORS® (NAR).
|
| |
| CATEGORIES | OCTOBER 2008 | OCTOBER 2009 | PERCENT CHANGE | | Total property sales | 5,010 | 5,716 | 14.1% | | Total dollar volume | $942,371,320 | $1,092,415,904 | 15.9% | | Total active listings | 49,016 | 45,424 | -7.3% | | Total pending sales | 3,579 | 3,673 | 2.6% | | Average single-family sales price | $192,453 | $198,639 | 3.2% | | Median single-family sales price | $141,950 | $149,000 | 5.0% | | Months inventory* | 6.3 | 6.1 | -2.8% |
|
| * Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market. |
| |
Single-Family Homes Update
At $149,000, the median sales price for single-family homes rose for the sixth consecutive month, up 5.0 percent from October 2008. That represents the highest median price ever recorded in a month of October in Houston. The national single-family median price reported by NAR is $174,900, illustrating the continued higher value and lower cost of living that consumers enjoy in the Houston market. The average price of single-family homes in October was $198,639, an increase of 3.2 percent from one year earlier. That represents the highest average price ever recorded in an October in Houston.
October sales of single-family homes in Houston totaled 4,834, up 13.8 percent from October 2008. This is the second consecutive monthly increase in sales volume.
HAR also reports existing home statistics for the single-family home segment of the real estate market. In October 2009, existing single-family home sales totaled 4,049, a 15.6 percent increase from October 2008. At $140,000, the median sales price for existing homes in the Houston area rose 7.7 percent compared to last year. The average sales price of $185,117 climbed 7.0 percent from its October 2008 level.
Townhouse/Condo Update
The number of townhouses and condominiums sold in October rose compared to one year earlier. In the greater Houston area, 514 units were sold last month versus 418 properties in October 2008, translating to a 23.0 percent boost in year-over-year sales.
The median price of a townhouse/condominium rose 1.1 percent year-over-year to $126,340. The average price edged up 0.6 percent to $159,853 from October 2008 to October 2009.
Lease Property Update
Demand for single-family home rentals fell 12.4 percent in October compared to a year earlier. Year-over-year townhouse/condominium rentals declined by 5.6 percent.
Houston Real Estate Milestones in October Single-family homes sales increased for a second consecutive month, by 13.8 percent; Existing single-family home sales increased for a second consecutive month, by 15.6 percent; Total property sales increased for a second consecutive month, by 14.1 percent; The median price of a single-family home was up for the sixth straight month, reaching the highest level ever recorded in an October ($149,000); The average price of a single-family home reached the highest level ever recorded in an October ($198,639); Month’s inventory of single-family homes dropped from 6.3 to 6.1 months compared to the national average of 7.8 months. Founded in 1918, the Houston Association of Realtors® (HAR) is a 24,000-member organization of real estate professionals engaged in every aspect of the industry, including residential and commercial sales and leasing, appraisal, property management and counseling. It is the largest local association/board of Realtors® in the United States as well as the largest individual membership trade association in Houston. Source |