As you may have heard, Congress did extend the $8000 first-time home buyer tax credit. They also allow the tax credit to be used at closing with an FHA loan! There are some income limits to qualify for the full tax credit.
Congress also opened the tax credit to repeat home buyers who've lived in their homes for 5 consecutive years of the 8 years prior to this purchase--up to $6500 for a primary residential purchase! And no, the old home doesn't have to be sold first. This among other quirks gives all home buyers a great potential bonus.
The deadline is purchasing a home between 6 November 2009 and 30 April 2010.
Get the full scoop here: http://www.federalhousingtaxcredit.com/faq2.php#
Consider how you or someone you know might you benefit. Feel free and email me with your questions at BethBakerOwens@comcast.net
Monday, November 30, 2009
Wednesday, November 4, 2009
Gardening for Colorado
Before the snows flew last week, I realized some of my plant choices have fared better than others this year. Do you notice the same thing? The dry extremes in temperatures make this a challenging climate for gardeners. Some gardners, like my friend Pete, are able to develop microclimates around his yard. His results are amazing. Mine are not so great. I'm forever looking for hardy plants that have year round appeal, low water needs, noninvasiveness, and insect resistance. Now, here is a resource for Colorado and other mountain and high plains gardeners. In a joint effort by the Denver Botanic Gardens, Colorado State University, and area horticulturists and nurseries, we have Plant Select. Check out the web site for durable and lovely plant suggestions, nurseries, and more. Or, if you like books with beautiful plants, especially for winter garden planning, consider their colorful volume with suggestions. You can order the book at the web site. This coming spring, ask your nursery if they have Plant Select varieties for you to consider adding to your garden.
http://www.plantselect.org/index.php
http://www.plantselect.org/index.php
Tuesday, November 3, 2009
$8000 Tax Credit Extended?--It's TBD
Many people have asked me if news reports about the US Congress extending the $8000 tax credit for first time home buyers are true or not. The bill containing language to extend the $8000 first time home buyer tax credit is in the middle of the legislative process. Last Friday I received a request from NAR to send letters to my 2 Senators and US representative. That request was the clear sign that the final votes had not yet been taken.
Here's an excerpt from an email with a colleague who called Linda Goold at NAR, the National Asso of Realtors, for clarification.
"Linda Goold serves as the Director of Federal Tax Programs for the National Association of REALTORS® and works for the NAR in Washington, DC. She is an advocate for NAR tax policies that protect and enhance ownership and investment in both residential and commercial real estate.
The current news reports are misleading. Senate has agreed to the content of the home buyer tax credit extension with some modifications, BUT senate not taken vote on final passage. It will be GOING UP FOR VOTE MONDAY EVENING at 5:30pm. Then it would have to go back to the house, but expectation is that the House will take it up the next day and approve it without amendment, and then it will go to President.
When I asked how long it might take to go before the President, Linda said that sometimes it takes a while, and sometimes it will occur the next day – it has to be printed on parchment and go through an administrative process. This bill extension of home buyer tax credit is included in an extension of unemployment insurance benefits, which Linda says she has "to think the president will want to sign it as soon as possible. Hopefully it’ll be accomplished a week from now, but no guarantees.""
So, the extension is to be determined (TBD).
I'll let you know what the results are after the bill is signed and the dust settles.
Here's an excerpt from an email with a colleague who called Linda Goold at NAR, the National Asso of Realtors, for clarification.
"Linda Goold serves as the Director of Federal Tax Programs for the National Association of REALTORS® and works for the NAR in Washington, DC. She is an advocate for NAR tax policies that protect and enhance ownership and investment in both residential and commercial real estate.
The current news reports are misleading. Senate has agreed to the content of the home buyer tax credit extension with some modifications, BUT senate not taken vote on final passage. It will be GOING UP FOR VOTE MONDAY EVENING at 5:30pm. Then it would have to go back to the house, but expectation is that the House will take it up the next day and approve it without amendment, and then it will go to President.
When I asked how long it might take to go before the President, Linda said that sometimes it takes a while, and sometimes it will occur the next day – it has to be printed on parchment and go through an administrative process. This bill extension of home buyer tax credit is included in an extension of unemployment insurance benefits, which Linda says she has "to think the president will want to sign it as soon as possible. Hopefully it’ll be accomplished a week from now, but no guarantees.""
So, the extension is to be determined (TBD).
I'll let you know what the results are after the bill is signed and the dust settles.
Wednesday, October 28, 2009
Know How Real Estate in Your Neighborhood is Selling
Indeed the real estate market is changing again. The Denver and suburban neighborhood matters. So does the price range. Remember absorption rate? If there are <6>6 months supply, then we call is a buyer's market. In general, homes less than $210,000 with a absorption rate less than 3 months. These affordable homes have a strong seller's market due to decreased inventory and constant demand. Homes from $210,000-$315,000 have a fairly balanced inventory with the most volume and much pent up demand (an absorption rate of 5 months). Homes from $315,000-$460,000 have a slight buyer's market (an absorption rate of 8 months). Homes priced above $460,000 have a very strong buyer's market (an absorption rate of 20 months).
For the details of your specific neighborhood, just ask me for a quarter 3 2009 heat map. I'll email it to you free of charge.
For the details of your specific neighborhood, just ask me for a quarter 3 2009 heat map. I'll email it to you free of charge.
Thursday, October 8, 2009
Market Update for September
The entire MLS had a 5 month supply of homes on the market in September 2009, making it slightly a seller's market. 3,846 homes and condos sold in September out of 19,834 listings. An overall decrease in sales volume reflects the slow down in processing pending foreclosures by banks unwilling to flood the market and fewer homeowners choosing to sell in the depressed market. The 4.9% increase in average home sales price reflects the bidding wars in the least expensive neighborhoods, as prices begin to bounce up a bit in the SW and NE parts of the city. There is a strong sellers market in the lower end of the market that is pitting eager investors with first time home buyers trying to close before the Nov 30th deadline for the $8000 tax credit. Even where prices are slighty up, there is much ground to regain after the losses from recent years. Parts of the market that previously were resisting downward market forces (the upper end and certain neighborhoods) are now feeling the effect of distressed home sales (foreclosures and short sales). The upper end of the market is still depressed and has a strong buyers market. So, ask the most important question, "What is the market in my neighborhood?"
Tuesday, September 29, 2009
Do Homes Sell in Fall and Winter?
Colorado had snow last week and is having shorts weather this week. Fall is truly here. As is the perennial question I hear from folks about real estate, "Do homes sell in Fall and Winter?" The short answer is yes, at a slower rate. In the neighborhoods where investors reign king, the rate barely drops, except at year end. The peak of activity is still in early summer.
The more important question to answer for a savvy buyer or seller is, "What is going on in the neighborhood where I care about the real estate?" Looking at our latest heat map of neighborhoods in the Denver Metro area, I see several healthy neighborhoods, some beginning to feel the declines caused by distressed homes, many seeming to slow the descent or even turn around. The variation is really better measured on a neighborhood level. (If you want a copy of the heat map for your part of town, just contact me with your email and the address or neighborhood, so I can send you your map.)
Another valuable question to answer is, "How fast are homes selling in my area?" The adsorption rate quantifies this and is easy for anyone with the data to calculate. Adsorption rate is how many months it would take at this rate of sales to sell the current inventory. The number is described in terms of "months of supply". Ask your realtor for the adsorption rate. (Here's a more thurough explanation of adsorption rate.) If you're participating in a buyer's or a seller's market your strategy should shift.
There are some other important questions that are purely subjective. Questions around your ability to move, timing around other events in your life, your finances compared to what is needed in the market (a buyer and a seller consideration), and how you choose to position your home in the market as a seller all inform your decision to buy and/or sell.
For first time home buyers wanting to capture the $8000 tax credit, you have to get a home under contract to close by end of November. October is your time to snag the tax credit. Congress may or may not extend this savings.
The more important question to answer for a savvy buyer or seller is, "What is going on in the neighborhood where I care about the real estate?" Looking at our latest heat map of neighborhoods in the Denver Metro area, I see several healthy neighborhoods, some beginning to feel the declines caused by distressed homes, many seeming to slow the descent or even turn around. The variation is really better measured on a neighborhood level. (If you want a copy of the heat map for your part of town, just contact me with your email and the address or neighborhood, so I can send you your map.)
Another valuable question to answer is, "How fast are homes selling in my area?" The adsorption rate quantifies this and is easy for anyone with the data to calculate. Adsorption rate is how many months it would take at this rate of sales to sell the current inventory. The number is described in terms of "months of supply". Ask your realtor for the adsorption rate. (Here's a more thurough explanation of adsorption rate.) If you're participating in a buyer's or a seller's market your strategy should shift.
There are some other important questions that are purely subjective. Questions around your ability to move, timing around other events in your life, your finances compared to what is needed in the market (a buyer and a seller consideration), and how you choose to position your home in the market as a seller all inform your decision to buy and/or sell.
For first time home buyers wanting to capture the $8000 tax credit, you have to get a home under contract to close by end of November. October is your time to snag the tax credit. Congress may or may not extend this savings.
Saturday, September 19, 2009
First Time Homebuyer Beware
This reminder is timely and well worth considering:
Want the Home Buyer Tax Credit? Don’t Shop for Furniture
Dow Jones Newswires, By Dawn Wotapka
September 18, 2009
Excited to move into a new home, some of these first-timers start hitting the stores shopping for new furniture, appliances or curtains.
Big mistake.
Real estate agents are reminding buyers to wait until the close to start buying stuff.
The reason: Lenders are occasionally running credit reports on closing day, and they might not like to see an increase in credit card debt or indications that debt could soon increase, says Lew Reich, a Realtor with Keller Williams Realty in Plano, Texas.
Buying is off the table, but so is serious looking: Don’t even think about checking out that new car or boat because even an inquiry on a credit report might raise red flags. Too many inquiries, Mr. Reich adds, might be detrimental, particularly for those who just met the lender’s minimum requirements.
“If someone’s squeaking by and, all of a sudden, they may be looking at increasing debt, the lenders will have a keener eye in looking at your loan,” he says.
“Don’t look until you’ve closed is basically what it comes down to. That’s the safest way. Stay out of the stores.”
While such measures have been used over the years, lenders, still dealing with the fallout from the boom’s lax lending standards, are being especially particular these days. Even buyers with great credit scores face scrutiny.
Agents also advise not moving money between accounts, so don’t join two savings accounts, transfer large sums out of savings or add more funding to checking. Emptying out an account could look like money’s being spent, and lenders might request a paper trail for the money flow, Mr. Reich explains. That could delay the closing or, in rare cases, terminate the loan. That wouldn’t necessarily free the buyer from the obligation to buy the home, he warns.
Dan Rider, a broker with Dickson Realty in Reno, Nev., says one of his recent closings was delayed by five days when lenders spotted a $500 deposit in a buyer’s checking account. It wasn’t a gift – it was a repaid loan from her mother – but it sparked concerns that the buyer needed help to close the deal. Though the buyer had a healthy checking balance, the lender wanted canceled checks and bank statements and both parties had to write an explanatory letter.
“The simplest things can create fairly major delays,” Mr. Rider says, adding buyers could face financial penalties for late closings.
And of course, with the clock ticking on that tax credit, there’s also the penalty of missing out on eight grand.
Although, delayed buyers could still get lucky: A Senate bill introduced Thursday seeks to extend the credit for another six months.
Want the Home Buyer Tax Credit? Don’t Shop for Furniture
Dow Jones Newswires, By Dawn Wotapka
September 18, 2009
Excited to move into a new home, some of these first-timers start hitting the stores shopping for new furniture, appliances or curtains.
Big mistake.
Real estate agents are reminding buyers to wait until the close to start buying stuff.
The reason: Lenders are occasionally running credit reports on closing day, and they might not like to see an increase in credit card debt or indications that debt could soon increase, says Lew Reich, a Realtor with Keller Williams Realty in Plano, Texas.
Buying is off the table, but so is serious looking: Don’t even think about checking out that new car or boat because even an inquiry on a credit report might raise red flags. Too many inquiries, Mr. Reich adds, might be detrimental, particularly for those who just met the lender’s minimum requirements.
“If someone’s squeaking by and, all of a sudden, they may be looking at increasing debt, the lenders will have a keener eye in looking at your loan,” he says.
“Don’t look until you’ve closed is basically what it comes down to. That’s the safest way. Stay out of the stores.”
While such measures have been used over the years, lenders, still dealing with the fallout from the boom’s lax lending standards, are being especially particular these days. Even buyers with great credit scores face scrutiny.
Agents also advise not moving money between accounts, so don’t join two savings accounts, transfer large sums out of savings or add more funding to checking. Emptying out an account could look like money’s being spent, and lenders might request a paper trail for the money flow, Mr. Reich explains. That could delay the closing or, in rare cases, terminate the loan. That wouldn’t necessarily free the buyer from the obligation to buy the home, he warns.
Dan Rider, a broker with Dickson Realty in Reno, Nev., says one of his recent closings was delayed by five days when lenders spotted a $500 deposit in a buyer’s checking account. It wasn’t a gift – it was a repaid loan from her mother – but it sparked concerns that the buyer needed help to close the deal. Though the buyer had a healthy checking balance, the lender wanted canceled checks and bank statements and both parties had to write an explanatory letter.
“The simplest things can create fairly major delays,” Mr. Rider says, adding buyers could face financial penalties for late closings.
And of course, with the clock ticking on that tax credit, there’s also the penalty of missing out on eight grand.
Although, delayed buyers could still get lucky: A Senate bill introduced Thursday seeks to extend the credit for another six months.
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