Wednesday, October 14, 2009
I am finally getting back in to my blog! I was just reading the daily forecast update from the National Association of Realtors. According to the update, mortgage applications are down by 1.8%. This is really surprising given that rates are historically low right now and first time homebuyers are eligible until November 31 to capitalize on the $8000 tax credit. The tax credit sparked a brief surge in mortgage applications, but not as great some expected. It is widely perceived that it will be extended but who knows. There has been a national campaign for realtors to urge there congressmen for such an extension.
In my area, Brentwood, Tennessee, our real estate brokerage has experienced a increase in closings by 22% over September 2008. This is wonderful news for our area and hopefully the increase will remain on the upswing. The Nashville area did not experience the spike in home prices that California, Florida, Nevada and Arizona did. Unfortunately, the media paints a picture that it is the same nationwide and I believe has instilled a fear in buyers and sellers. I am reading an interesting book "The Housing Boom and Bust" which I think is a must read!! The main point of the book is that government regulation has unintentionally caused this current situation over many years. If you read it, let me know your thoughts.
Off to sell some homes, so bye for now!
Tuesday, August 18, 2009
There is still time to take advantage of the First Time Homebuyers Tax Credit. The credit is up to 10% of the purchase price with the maximum amount being $8,000.00. That means if you owe less than $8,000 in income taxes for 2009 you will receive a rebate for the difference. For example, if you owe $5,000 in income taxes you will receive a check back from the IRS in the amount of $3,000.00. To qualify you must earn $75,000 or less as an individual or a married couple $150,000 or less per year. If you have not owned a home in less than three years you are still considered a first time homebuyer. You must close by November 31st of 2009 to qualify. If you are considering purchasing a home that has been foreclosed or is an estate sale you should start the process now. These types of transactions can take much longer than a traditional sale. Interest rates on are on the rise, but it is still a buyers market!! Take advantage now while the incentives are there!
Monday, August 17, 2009
Is the real estate market really picking up or are we heading toward another crash? Obviously it depends on which news channel or newspaper you are reading at the time, but the news is conflicting. It appears that the homeowners that were saved by the mortgage modifications may be in danger of facing foreclosure again. Interest rates have risen and the extensions given to these home owners are running out. We already have 10 months of inventory on the market which is not considered to be stable. It is entirely possible that we could see another round of foreclosures in the near future. On the other hand, the Nashville market is up 22% over July 2008, a sign that we may actually have hit bottom and are headed back up.