Welcome!

Hello everyone and welcome to my blog! My name is Debbie Smith and I am a Realtor in the Bradenton Area. The Real Estate market is changing daily in this economy so I thought it would be a good idea to have a place to keep you informed and answer all of your questions. I am also a Certified Distressed Property Expert which means if anyone out there has a question about Short Sales or Bank Foreclosures I might be able to help. Let me know if I can help in any way. 941-400-8847

Senate panel OKs extension for home buyers’ credit

Senate panel OKs extension for home buyers’ credit

WASHINGTON – Oct. 29, 2009 – Senators reached a compromise to extend the $8,000 tax credit for first-time home buyers, a boost the housing industry expects will help it pull out of its two-year-old downturn.

Lawmakers in Washington also added a $6,500 tax credit for other primary-home purchasers and raised the qualifying income limits to $125,000 for single taxpayers and $225,000 for joint taxpayers, housing-industry sources said.

Under the Senate compromise, buyers must have sales agreements in hand by April 30, but they will have until June 30 to go to settlement, the sources said. The measure still faces votes in the full Senate and the House.

The current tax credit did little for the new-home market in September, the Commerce Department reported – news that took many industry analysts by surprise. Sales fell 3.6 percent from August and 7.8 percent from September 2008.

Industry observers had expected a fifth consecutive monthly increase in new-home sales, believing that the tax incentive for qualified first-time buyers – credited with 357,000 sales of previously owned homes so far this year – would do the trick.

Instead, sales of typically more expensive newly built houses slipped.

“The decline in new-home sales seems to us to be more a function of the attractive pricing available on resales in the current environment than a reflection of weakening demand,” said Michael Feder, president of Radar Logic Inc., of New York, which tracks the market.

“Big deal,” said Joel L. Naroff, of Naroff Economic Advisors, of Holland, Bucks County. “Since hitting rock bottom in March, demand is up 20 percent.”

For Naroff, the robust rise in existing-home purchases – 9.2 percent year over year in September – indicated that the housing market was not faltering.

“Maybe the issue is supply, which fell to its lowest level in 27 years,” he said. “Builders, at least those left standing, have been making sure they don’t have any houses sitting around, and they have been very successful in controlling inventories.”

IHS Global Insight Inc. economist Patrick Newport echoed that, noting new-home inventories “sank for the 29th straight month to their lowest level since November 1982.”

Naroff maintained housing had recovered enough to stand without the tax credit. But Newport said he believed that if the credit were not extended and expanded, housing demand would take a hit, and home sales would drop.

Until the Senate compromise today, the extension of the credit seemed mired in what National Association of Home Builders vice president Jerry Howard called “a game of partisan chicken.”

Howard’s take on the lower September numbers: It was too late to sign a contract on a house that would be completed by the current Nov. 30 deadline, and many buyers were concerned the credit would not be extended.

The credit has helped, acknowledged Marshal Granor, a principal in Granor Price Homes, of Horsham. But he added, “I’d love for it to go away, for a month.”

“People who believe there is no rush aren’t buying, they are waiting for more bargains from more squeezed sellers,” Granor said.

Still, said Feder of Radar Logic, lower home prices have carried “buyers further into the autumn than we would expect, based on historic patterns.”

Declining inventory means builders will have to ramp up production, Newport said.

As the Senate worked on the compromise, third-quarter data were released showing that the burden of foreclosure filings in the post-bubble market continued to shift from the subprime-ridden “sand” states (California, Nevada, Florida and Arizona) to areas with rising levels of unemployment and adjusting rates on the “exotic” mortgages prevalent in high-cost metropolitan markets.

Yet Las Vegas remained the toxic-loan capital, according to the third-quarter survey by RealtyTrac Inc., of Irvine, Calif. – its rate of foreclosure filings was seven times higher than the national average.

Copyright © 2009 The Philadelphia Inquirer, Alan J. Heavens. Distributed by McClatchy-Tribune Information Services.

$8000 Tax Credit May Not Be Extended

WASHINGTON (AP) – Oct. 21, 2009 – Key congressional leaders want to extend the tax credit for first-time homebuyers beyond its scheduled end-of-November expiration despite complaints of fraud and Obama administration concerns about the costs.

Housing and Urban Development Secretary Shaun Donovan says the administration is not sold on the idea. For the past several weeks, Obama administration officials have been talking about possibly extending the credit to help spur the economy and create jobs. But at a congressional hearing Tuesday, Donovan said the administration needs better cost estimates.

“To truly understand the costs, we will not know that until Americans have filed their tax returns,” Donovan told the Senate Banking Committee. “We believe it’s critical to have the information necessary to make a fully informed decision about the costs.”

Tax filing season doesn’t start until next year. But Donovan said he expects to get cost data in the next few weeks. “We understand the urgency of this situation,” Donovan said.

The Internal Revenue Service has opened 107,000 examinations of questionable claims and identified 167 criminal schemes involving the tax credit since it was expanded as part of the economic stimulus package enacted in February.

But lawmakers understand the program is popular and has helped the struggling housing industry recover.

Lawmakers said they might add protections to help prevent fraud. But there is a growing consensus among congressional leaders that the housing market is still fragile enough to justify extending the program.

House Majority Leader Steny Hoyer, D-Md., said he favors extending the existing credit through the end of the year as lawmakers work to “find out about how ethically and how honestly this policy is being pursued.”

Senate Banking Committee Chairman Chris Dodd said, “We still need to use every tool at our disposal” to help the housing market. Dodd, D-Conn., has joined Sen. Johnny Isakson, R-Ga., in sponsoring a bill that would extend the credit until June 30 and expand it to people who already own homes.

It would cost about $1 billion a month to extend the existing credit, according to congressional estimates. The bill sponsored by Dodd and Isakson is estimated to cost $16.7 billion.

The existing credit allows qualified first-time homebuyers to reduce their federal income taxes by 10 percent of the price of a home, up to a maximum of $8,000. Homes purchased after Jan. 1 are eligible. The full credit is limited to single filers making less than $75,000 a year and joint filers making less than $150,000.

About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.

“The housing market would not have moved without this tax credit,” said Lucien Salvant, spokesman for the National Association of Realtors. “It’s a fragile recovery, which is why we think it should be extended.”

The IRS began special screening procedures for tax returns claiming the credit after it was enacted, said IRS spokesman Frank Keith. For example, taxpayers who previously claimed the mortgage interest deduction would warrant a second look if they claimed the first-time homebuyers credit, he said.

Processing claims presented special challenges for the IRS during the spring tax filing season because homebuyers were eligible for different credits, depending on when they purchased their homes.

First-time homebuyers who purchased homes in 2008 were eligible for only $7,500 in tax credits, and the credits had to be repaid over the following 15 years. Those who bought homes in 2009 were eligible for up to $8,000, and there was no requirement to repay the money. Also, people who bought homes in 2009 were allowed to claim the credit on their 2008 tax returns.

An audit by the agency’s inspector general found that 93 percent of the returns claiming credits for homes bought in 2009 were coded incorrectly, meaning those taxpayers could be incorrectly identified as liable for repaying the credit. The audit was released in September by the Treasury Inspector General for Tax Administration. It reviewed 47,276 electronically filed returns.

The IRS, in a response to the audit, said it plans to track the returns and confirm that taxpayers are liable to repay the credit before pursuing them.

Copyright 2009 The Associated Press, Stephen Ohlemacher, Associated Press writer.

Florida’s consumer confidence rises as economic fears ease

GAINESVILLE, Fla. – Sept. 30, 2009 – Belief that a national economic recovery is under way boosted Florida’s consumer confidence three points to 74 in September, according to a new University of Florida survey.

“I think Florida consumers are buying into the argument that the worst of the recession is over and we have avoided a complete meltdown,” says Chris McCarty, survey director of UF’s Bureau of Economic and Business Research. “Once again, they have surprised us with a higher-than-expected index.”

This month’s three-point rise follows a four-point revised increase in August. Of the five components that make up September’s index, three rose, one declined and one was unchanged. Perceptions of personal finances now compared with a year ago remained unchanged at 44, only five points above its all-time low of 39 in December. Expectations about personal finances a year from now fell three points to 81.

In contrast, perceptions of U.S. economic conditions over the next year rose three points to 75, while expectations about economic conditions over the next five years rose five points to 86. Perceptions of whether it is a good time to buy big-ticket items, such as appliances and cars, rose nine points to 84.

“It is worth noting that the two index components that gauge perceptions of personal finances both now and in the future are flat or down,” McCarty says. “All of the increase is in perceptions of future economic conditions, and in the perception that if you have the money, it’s a good time to buy.”

There are some signs that the economy is improving, he says.

Once again, the median price of a single-family home is virtually flat compared with the previous month, and up for the year, suggesting that housing prices in many areas of Florida have bottomed out, McCarty says. Although foreclosures are still high, the rate seems to be declining.

In other good news, inflation and, in particular, gas prices remain low overall compared with a year ago, McCarty says. In the past few years, gas prices have dominated the consumer confidence index. In addition, the stock market is still up for the year and at least for now appears stable.

“On the negative side, unemployment remains at 10.7 percent for Florida,” McCarty says. “This number is not expected to improve much until next year, and it could still get worse. Florida lost population this past year and could do so again as the underlying problems that prevent people from moving are still in place.”

Tourisms both domestically and internationally also are down as consumers trim discretionary spending, McCarty said. Programs such as Cash for Clunkers at least temporarily lifted retail sales, but sales tax revenues in Florida have dropped 10 percent from a year ago.

“In the near term, we expect consumer confidence to decline at least a point or two as the holiday season nears and stimulus programs like Cash for Clunkers and rebates for first-time home buyers expire,” he says. “The discussion about health care reform will be at center stage this fall, and may affect confidence if the plans involve increased payments from the middle class.”

Also of economic concern is that, at some point, extended unemployment benefits will run out, putting more pressure on the unemployed. In the long term, consumers need to be prepared for the inevitable drawing back of stimulus money from the economy, McCarty says.

The U.S. government effectively printed money to avoid a depression, and at some point most of the money will have to be withdrawn from the economy to avoid inflation and a very weak dollar, McCarty says. When that happens, interest rates will rise dramatically.

“We also have to think about how the Florida economy will adjust moving forward,” he says. “It is likely that discussions about off-shore drilling will receive much more attention as Florida looks for industries to replace those dependent on population growth.”

The research center conducts the Florida Consumer Attitude Survey monthly. Respondents are 18 or older and live in households telephoned randomly. The preliminary index for September was conducted from 412 responses. The index is benchmarked to 1966, so a value of 100 represents the same level of confidence for that year.

© 2009 Florida Realtors®

Florida home sales up, prices down

PORT CHARLOTTE, Fla. – Sept. 29, 2009 – Activity is picking up at a number of real estate firms in Southwest Florida and the rest of the state.

“We’re busy,” said Laurie Zobel, owner of Zobel Real Estate, located in Port Charlotte since 1979. “We’re getting a lot of calls on various types of real estate. We’re getting calls on vacant land from people who want to build in the future. We are busy selling homes.”

The situation is similar for Cynthia Logan of Coldwell Banker Sunstar Realty in Port Charlotte.

“I’m getting a heightened amount of calls from people who want to retire here after reading some of the recent publicity about it being an affordable place to live,” said Logan, president of the Punta Gorda, Port Charlotte, North Port Multi Listing Service.

Across the state, sales are up but prices are down. Sales of existing homes in Florida rose 28 percent in August, compared to August 2008.

Some 13,850 homes sold statewide last month, compared to 10,813 a year ago, according to data released by Florida Realtors, a trade association that represents Realtors.

The association also reports a 45 percent increase in sales of existing condominiums statewide, compared to last year. Sixteen of Florida’s 20 metropolitan statistical areas reported increased existing home sales in August while 18 showed increases in condo sales, the FR release said.

It’s the 12th straight month that sales have increased statewide and the 14th consecutive month that the majority of the state’s MSAs have reported increased sales.

There are encouraging signs locally. Some 230 existing homes were sold in Punta Gorda and surrounding areas in August, compared to 176 last year, a 31 percent increase. Some 678 existing homes were sold in the Sarasota-Bradenton area (including North Port and Venice), compared to 551 in August 2008, a 23 percent increase.

Zobel, who runs a one-person office, operates primarily in Charlotte County and North Port. She is writing at least one contract per week for an existing home sale.

Zobel has worked on three contracts for land sales this week. “That’s up and that’s encouraging,” she said.

Success is relative. In 2004-05, Zobel says she was writing 40 vacant lot contracts and selling approximately 20 homes per month.

Meanwhile, the sales of existing condos increased in August, up 186 percent in the Punta Gorda area (from 14 last year to 40 now) and up 34 percent in the Sarasota MSA (from 126 to 169).

The median sales price for condos was $98,000 in Punta Gorda (down 42 percent from $170,000) and $185,600 in the Sarasota MSA (down 16 percent from $220,000).

Median sales prices of existing single-family homes decreased in August compared to last year. Statewide, the median sales price for existing homes in August was $147,400, down 22 percent from a year ago, when it was $188,500. Sales of foreclosures and other “distressed” properties continue to reduce the median price “because they generally sell at a discount relative to traditional homes,” according to Florida Realtors.

The national median sales price for existing homes was $178,300 in July, down 14.6 percent from a year earlier, according to the National Association of Realtors.

The median sales price of an existing home in the Punta Gorda area last month was $103,300, down from $138,100, a 25 percent decrease. The sales price in the Sarasota MSA was $164,200, down 25 percent from $218,200.

But the “sales up/prices down” mantra doesn’t fly for some in Charlotte County.

“You can’t say that across the board,” said Logan, who has worked in real estate in Florida since 1975. “There is some stabilization to the pricing. We are a declining market, in general.”

Zobel also sees prices stabilizing.

“We’re not having to reduce prices as much as we did in the past,” she said. Right now she’s showing homes priced from $80,000 – a three-bedroom home built in 2006 – and up.

Logan handles a lot of bank-owned properties, but she says those listings “have slowed up somewhat. The banks seem to be holding them back.”

Most of Zobel’s sales are short sales and foreclosures, “but I’m seeing more and more sales where you have a regular buyer and a regular seller,” she said. A short sale is a real estate transaction wherein a bank agrees to accept less than the balance owed on the property.

“We are getting the short sales to closing,” Zobel said. “There are fantastic deals, but you have to be patient.”

Copyright © 2009 The Sun, Port Charlotte, Fla., Ed Scott. Distributed by McClatchy-Tribune Information Services.

Florida is a leading contender for high-speed rail funding

TAMPA – Sept. 29, 2009 – As key political factors fall in place, Tampa, Lakeland and Orlando are leading contenders to launch the nation’s first true high-speed rail corridor, with 150 mph trains running by 2014.

On Friday, 40 states will file detailed high-speed rail project applications with the Federal Railroad Administration. In December, President Barack Obama will announce which will get money from the $787 billion federal stimulus plan to generate jobs.

If Florida gets the $2.5 billion it seeks, it will represent a stunning reversal of political fortunes – after 25 years of promises and setbacks – that will provide thousands of new jobs as early as 2011, when construction on the 95-mile Tampa-Orlando segment could begin.

The Florida funding request also covers planning an Orlando-Miami segment that could complete a 361-mile high-speed rail corridor between Tampa and South Florida in 2017.

That 180 mph-plus East Coast corridor would cost about $8 billion, not including right-of-way purchases. Amtrak could provide additional service from Jacksonville south.

Potential drawbacks – including construction and operations costs and how much demand there might be to pay $30 for a 64-minute ride from Tampa to Orlando International Airport – appear to have been relegated to the background.

Why? The prospects of jobs – at a time when it’s common for hundreds of people to vie for a handful of positions.

“High-speed rail will bring an unprecedented number of new jobs to Florida, with the overriding goal of supporting the federal recovery plan,” said U.S. Rep. Kathy Castor, D-Tampa, who has participated in several White House discussions on the topic this year.

“At the same time, anyone who has traveled around the country or to Europe knows how important the investment can be to modernize transportation,” she said. “The high-speed rail project can provide a real shot in the arm you don’t see happening from real estate.”

Estimates by those involved in Florida’s previous high-speed rail plans indicate as many as 15,000 construction jobs could be required for the Tampa-Orlando leg. Florida’s Department of Transportation estimates more than 20,000 would be created over four years for the Orlando-Miami link.

Florida’s prospects

Interviews with congressional and state officials and local business interests reveal advantages Florida is expected to have when the Obama administration makes its initial funding choices:

• Environmental plans for the Tampa-Orlando corridor are complete, unlike other U.S. corridors.

• Florida is the only state that has acquired a high-speed rail right of way – the median of Interstate 4, estimated to be worth more than $100 billion.

• Construction could begin as early as 2011, providing the Obama administration with potential political gains in an important presidential election swing state.

Forty states are competing for $8 billion. At least $5 billion more from annual federal budgets could be allocated to 10 high-speed corridors nationwide.

Florida’s proponents acknowledge the tough competition, but say it is advantageous that their bid covers the construction of the entire project from Tampa to Orlando, unlike states such as California, where state money would be required in addition to federal dollars.

Competitors could seize upon Florida not proposing some state matching money as a point in their favor, said Ross Capon, National Association of Railroad Passengers’ executive director. But Capon said another factor – how operational costs would be covered – could play a role. Those details have not been released.

Another advantage for Florida is that its lobbying effort enjoys unusual bipartisan participation. Supporters include the Republican governor; both Florida U.S. senators; eight Democratic and three Republican congressmen; 21 state Republican and seven Democratic legislators; and a broad representation of business groups, the advocacy group FastRailConnectUs.com says.

Vice President Joe Biden and U.S. Transportation Secretary Ray LaHood in June made public comments supportive of Florida’s rail plans, with LaHood saying Florida and California were leading contenders. LaHood is scheduled to address a transportation conference in Orlando next month.

The business community also has rallied to the cause.

“Our company has a strong interest in transportation initiatives that benefit all sectors of the economy,” said Becca Bides, spokeswoman for Busch Entertainment Corp. “As a significant employer in both Orlando and Tampa regions, we also are interested in bettering transportation options for our 11,000 employees.”

Disney also sees advantages.

“We are encouraged by the opportunities that high-speed rail could bring to Florida,” said Zoraya Suarez, Walt Disney World’s manager of media relations. “We would work with local officials to place a station for the new system on or near our property, taking into consideration the needs of both tourists and local residents.”

One initial drawback in Tampa and Orlando would be the lack of state-of-the-art mass transit to provide connections to and from high-speed rail in 2014. Hillsborough County’s first light rail lines serving downtown would not be possible until 2018 – pending approval of a 1 cent county tax, among other factors.

More than mobility

High-speed rail evokes notions of a fast, comfortable trip commonplace in Europe and Japan, but a recent Washington policy shift emphasizes economic development and wise land use that state-of-the-art local transit and high-speed rail can promote.

“My experience is that an investment in transit intersects with land use and economic development,” said G.B. Arrington, a principal with the transportation development firm PB PlaceMaking. Arrington helped write a new Federal Transit Administration policy on ranking transportation projects for funding that took effect in July.

“For places that are successful, it is all about having a long-term vision of a community. Florida’s density and activity centers make high-speed rail a logical fit.”

That’s the groundwork Lakeland businessman Doc Dockery produced in gaining voter approval in 2000 for a constitutional amendment for a high-speed rail system. In 2004, then-Gov. Jeb Bush persuaded voters to remove it.

Former Hillsborough County Commissioner Ed Turanchik, who is leading the high-speed rail lobbying in Florida, has invoked the performance of University of Florida quarterback Tim Tebow in his efforts to build support.

“High-speed rail is the Tim Tebow of transportation,” Turanchik said. “It’s a game changer.”

Copyright © 2009 Tampa Tribune, Fla., Ted Jackovics. Distributed by McClatchy-Tribune Information Services.

First-time buyers race to qualify for $8K federal tax credit

LOS ANGELES – Sept 10, 2009 – First-time homebuyers have just 12 weeks to find and close on a home to qualify for the $8,000 federal tax credit by Nov. 30 – before the Dec. 1, 2009, deadline.

Those just beginning the process will have to beat the average time it takes to buy a home, a challenge that real estate professionals can help buyers meet even though it’s taking longer today to close most transactions today, according to Realtor.com officials.

On average, first-time buyers search 12 weeks to find a home, while closing can take up to 60 days, depending on individual circumstances and local regulations.

Additionally, the tax credit has proved to be extremely popular this year: studies show that taking advantage of the first-time homebuyer’s federal tax credit and relevant state incentives is the most important reason motivating 10.8 percent of buyers today. In fact, approximately 1.14 million buyers have already filed for the credit. Many more are expected to file for the credit when income taxes are due April 2010.

Historically high affordability is a major factor driving first-time homebuyers today, a growing group that accounted for one third of all purchases in July 2009, according to a survey by the National Association of Realtors®.

NAR’s affordability index in July 2009 was 36.0 percentage points higher than July 2008. Under these conditions, the typical median-income family can allocate 15.8 percent of their gross income to mortgage payments, well below the traditional allowance of 25 percent. Interest rates, which play a major factor in affordability, remain low, and averaged 5.22 percent in July for a 30-year fixed rate loan.

Realtor.com President Errol Samuelson said, “The national median home today costs approximately $174,100. By moving quickly to find and close on a home by Nov. 30, first-time buyers qualifying for the $8,000 tax credit can actually purchase this same home for only $166,100, an almost 4.5 percent discount off of the price of a typical new home. Because affordability this year is at its highest level in 28 years, and the market offers an incredible selection of homes within reach of most first-time buyers, we expect their numbers to grow as they pursue this once-in-a-generation opportunity to become homeowners.”

He added that by combining the effective use of technology for information-gathering with expert advice from local Realtors, today’s first-time home buyers can beat the clock and use the $8,000 federal tax credit, along with any available state-level credits, to purchase a home before the Dec. 1 deadline.

“By moving quickly, being prepared to make decisions in the face of increased competition, and using the expertise of a real estate professional, first-time homebuyers can still close on time and qualify for the $8,000 federal tax credit,” Samuelson said.

© 2009 Florida Realtors®

Low rates keeping homes affordable

WASHINGTON – Sept. 8, 2009 – Falling interest rates are fueling a rise in home mortgage applications and refinancings in the Inland region, though experts aren’t yet ready to declare the beleaguered local housing market on the road to full recovery.

Virginia-based Freddie Mac, a government-backed corporation that provides mortgage capital to lenders, released a study Thursday showing 30-year fixed-rate mortgages averaging 5.08 percent, down from 5.14 percent a week ago and 6.35 percent a year ago.

“Bond yields pushed mortgage rates slightly lower this week,” Freddie Mac chief economist Frank Nothaft said in a statement. “Low mortgage rates are helping to keep housing very affordable.”

According to the National Association of Realtors’ housing affordability index, seven of the top eight most affordable months occurred during this year. Pending sales of existing homes rose for the sixth straight month in July, the association reported.

A Thursday check of Bankrate.com, which tracks lending trends, showed Inland rates for a 30-year fixed mortgage ranging from 4.5 to 5.75 percent. Rates assume a 20 percent down payment, and lenders are maintaining strict credit standards, according to Bankrate.

Bankrate this week released a study indicating closing costs on home purchases have recently dropped to 2007 levels, another reflection of pricing shifts in the national housing market.

At Provident Bank Mortgage, a division of Riverside-headquartered Provident Savings Bank, President Rich Gale said the company is making 30-year fixed loans in the range of 4.78 to 5 percent, down from a month ago and still low by historical standards.

Gale said Provident’s new-purchase home loan volume has been steadily rising during the last six months, and most recently, dropping interest rates have sent refinancings upward.

“Refinancings are like an accordion – when the rates go down, the refi’s go way up,” he said.

By the end of September, if mortgage rates keep trending down, Gale said refinancings could comprise about half of the company’s total home loan volume.

Affordability is driving the local spike in applications. Gale said a large portion of the new applications are for lower-priced homes being bought out of bank foreclosure, and many of those homes are getting multiple purchase offers.

Gale said it would be premature to declare the Inland housing market fully on the mend until there are more trade-up purchases of homes in the middle and upper price ranges.

“Until we start to see more people selling their homes to move up to another place, we really can’t say that the overall housing market is getting healthier,” he said.

In the Inland region, relatively low prices are combining with low interest rates to boost sales.

In July, Riverside County had 4,699 home sales, up more than 14 percent from July 2008 and the highest sales for any month since September 2006, according to DataQuick.

In the same month, 3,549 homes sold in San Bernardino County, an increase of almost 41 percent from a year earlier and the highest monthly sales since August 2006.

According to DataQuick, sales have increased year-over-year for 16 consecutive months in Riverside County and 14 consecutive months in San Bernardino County.

Data for August has not yet been released.

Copyright © 2009, The Press-Enterprise, Riverside, Calif., Lou Hirsh. Distributed by McClatchy-Tribune Information Services.

Pending home sales on a record roll

WASHINGTON – Sept. 1, 2009 – Contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001, according to the National Association of Realtors® (NAR).

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June. It’s also 12.0 percent higher than July 2008 when it was at 87.1. The index is at its highest level since June 2007.

Lawrence Yun, NAR chief economist, says housing market momentum has clearly turned for the better. “The recovery is broad-based across many parts of the country. Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit.

“Other buyers are taking advantage of low home values before prices turn higher,” Yun says. “Nationally, the typical mortgage payment now takes less than 25 percent of a middle-income family’s monthly income to buy a median priced home, with payment percentages so far in 2009 being the lowest on record dating back to 1970. As long as home buyers stay within their budget, mortgage payments will be very manageable.”

NAR estimates that about 1.8 to 2.0 million first-time buyers will take advantage of the $8,000 tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit. Buyers have little time to act because they must complete the transaction by Nov. 30 to qualify for the credit. Unless extended, contracts signed but not completed by that date will not be eligible – it is taking approximately two months to complete home sales in the current market.

The Pending Home Sales Index in the Northeast declined 3.0 percent to 78.8 in July but is 4.7 percent higher than July 2008. In the Midwest, the index slipped 2.0 percent to 88.1 but is 8.1 percent above a year ago. In the South, pending home sales activity rose 3.1 percent to an index of 103.8 in July and is 12.0 percent above July 2008. In the West the index jumped 12.1 percent to 112.5 and is 20.0 percent above a year ago.

NAR President Charles McMillan says Congress needs to keep the momentum going. “Even with a good recovery taking place, the market is not yet back to normal. With a gradual absorption of inventory, we are on the cusp of a general stabilization in home prices,” he says. “To ensure that housing has a broad stimulus to the overall economy and stays on sound footing, we’re encouraging Congress to extend the tax credit into 2010, and to expand it to all buyers of primary residences. The faster we stabilize home prices, the fewer families will face foreclosure and the quicker the credit can be extended to other sectors of the economy.”

NAR’s Housing Affordability Index (HAI) stood at 158.5 in July – below the peak set in April but still 36.0 percentage points higher than a year ago. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.

Yun expects existing-home sales to rise through the fourth quarter. “Unless the tax credit is extended, no one should be surprised to see home sales drop in the first quarter of next year,” he said. “However, the fundamentals of the housing market and the economy are trending up, and we expect home sales to generally pick up in the second quarter of 2010. The buyer psychology may be shifting from, ‘Why buy now when I can purchase later,’ to ‘I don’t want to miss out on a recovery.’”

© 2009 FLORIDA ASSOCIATION OF REALTORS®

My Manatee County Property Taxes Dropped 20% WOW!!

I opened up my tax assessment and couldn’t believe my eyes-my taxes went down 20%. We all knew values had dropped but I was shocked that they lowered it without a fight. Let me know if you guys are seeing the same thing on your tax bills.

Snowbirds Flocking to Bradenton Early!

Since early July my phone has been ringing. I have been crazy busy with Snowbirds in town to “get the best deal” not wanting to wait for the season. They are making special trips to purchase while inventory is high and prices are unbelievably low and are getting fabulous pricing on summer sales. Alot of inventory has been on the market for such a long time-owners are ready to do whatever it takes to make it happen. I wasn’t able to go North with my family in July cause I was so busy. Don’t get me wrong I am NOT complaining. We have all been waiting for confidence to return to the market. Looks like this is the start. As sales happen, owners are being forced to be more realistic in their pricing. Not everyone gets it, but most are coming around. Buyers that have been waiting and waiting to buy are now telling me they feel good about making an offer. This is allowing them to either go after the lowest prices or get the primo units before the crowds get here for the season. Florida Association of Realtors sent out stats on Florida Condo Sales and the verdict is: Condo Sales are up over % from the 1st quarter (Jan Feb Mar) to the 2nd quarter (Apr May Jun). Summer months are historically very low-everyone is up north. But I have spoken to other realtors who are seeing the same increase in business that I am. We are all getting very optimistic about the upcoming snowbird season.