Posted on Mon, Feb 08, 2010
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.
When asked about their feelings regarding the Houston market for the next five years, the percentage of investors who are optimistic jumped to 81% (56% rated themselves optimistic while 25% indicated they feel highly optimistic). Fourteen percent of investors feel neutral and only 5% feel pessimistic.
Investors were also asked if the housing crisis was good or bad for the Houston housing market in the long run. Thirty-eight percent of investors believe the crisis will have an overall positive long-term effect in the housing market, while 28% think the housing crisis was bad for the future of Houston real estate. Thirty-four percent of the surveyed investors were neutral on the subject.
Of those surveyed, 74% were experienced investors who have owned or wholesaled at least two investment properties. The majority of respondents, 66%, invest part time.
Source
Posted on Mon, Jan 25, 2010
RISMedia reports:
"Americans want smaller houses and they are willing to strip some of yesterday's most popular rooms-such as home theaters-from them in order to accommodate changing lifestyles, consumer experts told audiences at the International Builders Show."
So, here are the top 10 must-have features in today's new homes:
1. Large kitchens, with an island.
2. Granite countertops
3. Energy-efficient appliances
4. Home office/study.
5. Main-floor master suite.
6. Outdoor living room.
7. Master suite soaker tubs.
8. Stone and brick exteriors.
9. Community landscaping
10. Two-car garages.
Read the full article at RISMedia.
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 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 Thu, Nov 12, 2009
Watch this informative video from the IRS about the extension of the new homebuyer credit:
Posted on Tue, Sep 29, 2009
Purchasing a new home can certainly be a daunting and intimidating experience. Many new home owners worry if they are buying a quality home that will not cause them additional concern. The simplest way to set your mind at ease is to have your new house inspected by a licensed, qualified and competent inspector before closing. Choosing the right inspector is not something that should be taken lightly. There are many factors to be considered. Once you have the right person for the job you will also want to make sure that you accompany them throughout the house. This not only ensures that they are inspecting the house thoroughly, but it will give you an education on the construction and inner workings of the home. If anything is found that needs repair you will want to bring it to the attention of the builder. If you're buying a pre-owned home, you can negotiate the price based on the inspection results.
As aforementioned, choosing the right inspector is imperative. You will want to look into any potential inspectors credentials. Most states do require that an inspector be licensed and follow similar standards of practice. In addition, you will also want to know if they belong to a national inspector association like InterNACHI, ASHI or CAHPI, among others. Just knowing who they are on paper is not enough. Speaking with them in advance is also an excellent idea. Do not hesitate to ask any questions you may have.
A few questions you may want to have on your mind for the inspector are:
- How long have you been inspecting houses?
- Is home inspection your primary business?
- Do you specialize in residential inspections?
- Will I be able to join you on this inspection?
- How long will it take and what is it going to cost?
- And perhaps one of the most important question may be:
Do you participate in continuing your education on the process of home inspection?
A crucial thing to remember is that just because an inspector has been working longer does not necessarily make them more qualified. Any inspector should be able to provide you with references and a history of their work to put your mind at ease. In addition, a lot of inspectors do have access to partners to gain additional knowledge if an issue should arise.
Following along on the inspection can make a colossal difference. Many of the things he or she will say through the course of the inspection will not make it to the final written report, and the process can be very educational. If the inspector denies you the right to accompany them during the inspection, this could be a cause for concern.
Inspecting a house can be time consuming, but is very necessary to avoid unwanted repairs and financial burden. The time put into this process can vary just as much as the cost. A typical inspection of a single family house can take two to three hours and cost $300-$500. Nevertheless, this investment of time and money will save you from having to make a repair in the future that will take days or weeks instead of hours and cost thousands instead of hundreds.
Following these simple but important guidelines will further secure your important investment. Educate yourself on the inspector before allowing them to educate you on the positives and negatives of the house you are potentially acquiring. This small, yet significant, step could be just what you need to save yourself from unnecessary stress.
And most importantly, if there are any problems with the construction of your home prior to closing, DO NOT CLOSE. There are laws that protect you as a buyer, and you must exercise your rights to force the builder to fix their problems. You cannot take them for their word that the problems will be fixed after closing. If you're buying the home pre-owned, it's best that the previous owner fix all problems before buying, unless of course it's a foreclosure.
If you have any further questions about the home inspection process or if you need help with your Houston home search, please don't hesitate to contact us for a free consultation.
vnupda9mt4
Posted on Mon, Sep 28, 2009
Many of our clients have trouble choosing a home in Katy or The Woodlands. If you ask the members of this City-Data forum thread, the verdict seems clear: The Woodlands. However, the answer is not so clear-cut, and there are many factors that should go into your decision when evaluating Houston suburbia. Here's our take on the winners of each category.
Aesthetics: The Woodlands
The Woodlands has a much greater aesthetic appeal. You'll find plenty of vegetation and mature trees, while Katy is described as "a sea of roofs and concrete" unbearable in summer months. However, the rich vegetation and trees does bring risk of increased levels of insects and mosquitos.
On the other hand, there are areas inside Katy offering neighborhoods similar to The Woodlands in terms of scenery and trees, although they tend to be more expensive, in the $600k + range.
Shopping & Entertainment: The Woodlands
Within a 7 mile distance, The Woodlands offers restaurants, hospitals, schools, movie theaters, and an award-winning mall. The much popular Cynthia Woods Mitchell Pavilion hosts many famous music acts that come through town. The Woodlands does offer more convenience when it comes to shopping and entertainment, however at a higher price tag.
Katy is working hard to catch up, especially with the recent La Centerra shopping center. The Katy Mills Mall, while not at all luxurious like First Colony Mall in The Woodlands, offers great bargains and an easy place to drop the kids off to hang out. There are drawbacks to both areas when it comes to shopping and entertainment. Typically you'll find more expensive options in The Woodlands, while Katy has more sprawl and greater affordable variety.
Hospitals & Education: Katy
Katy has a staggering number of hospitals, and the number is growing. Katy ISD is an award-winning school district backed by high taxes. The Woodlands does have a fair share of medical centers, so you need not be worried about hospitals in either area. Katy wins hands down on education.
Commute: Katy
Commuting to Downtown Houston is most certainly more convenient from Katy. The recently renovated Katy Freeway has an obscene number of lanes and a tollway/HOV running through the middle. You can reach downtown from Fry Rd in about 20 minutes in decent traffic. However, coming from The Woodlands, I-45 is much more congested and prone to traffic jams. Residents do have the option of the Hardy Tollroad, but even that can get congested.
Conclusion
The vast majority of forum respondents preferred The Woodlands as the better choice. A combination of low crime, aesthetics, quieter areas, and convenient shopping seems to be the major strong points. Schools are still high quality and the commute is acceptable if travelling on the Hardy Tollroad. Couples without children will most likely appreciate the lifestyle in The Woodlands more than Katy.
Katy's strong points are the newer schools, about $100 less in property taxes, an easier commute, and an overall lower cost of living. For us, the jury is still out. We find that different families are better suited for different areas. For a free consultation to discuss your options and find the best neighborhoods for you, download our New Home Buyers Guide. You can also read more about Katy neighborhoods and neighborhoods in The Woodlands.
Photo credit finnadat