Recent Housing Stats Show Market Improvement

Last week, the National Association of Realtors (NAR) released several statistics that suggest a possible uptick in real estate sales activity. First, the Pending Home Sales Index showed a 2.1 percent increase, based on contracts signed in February. In the Northeast, the increase was close to 11 percent.In addition, NAR’s Housing Affordability Index rose to a record high, indicating the most favorable relationship between home prices, mortgage rates and family income since tracking began in 1970. Improved affordability combined with stimulus incentives like the $8,000 tax credit for first-time buyers, means the buying power of a typical family has never been better.

Lawrence Yun, NAR chief economist, expects “home sales to gain momentum in the second half of the year with first-time buyers absorbing a lot of the excess inventory. Under these conditions, we should see price stabilization in most markets by the end of the year.”

Tax Credit Update

Last week at this time, there was a flurry of conversation around the fact that the Senate had announced that they had approved a $15,000 tax credit for all individuals purchasing new homes (first time buyers and previous homeowners) in 2009, and that it would be a pure credit (would not have to be paid back like the previous version).  This created an enormous wave of excitement…except for one thing…the House did not see eye to eye with them on this proposal.

Over the course of the last week, the subcommittees from the House and the Senate got together and ironed out a combined version that they could agree on, and felt would pass a vote on both floors.  Unfortunately, the House did not see eye-to-eye on the housing proposal floated by the Senate, and much to the chagrin of the many in our sector, the initial proposal from the Senate was paired down significantly.

$15,000 for homebuyers

Under the Senate’s stimulus bill, homebuyers could receive a $15,000 tax credit if they purchase within a year.

By Les Christie, CNNMoney.com staff writer
February 10, 2009: 7:10 AM ET
NEW YORK (CNNMoney.com) — If you’re thinking of buying a home, there could be a big bonus for you in the economic stimulus bill that’s now before Congress.

The Senate’s version of the plan sweetened the $7,500 homebuyer tax credit provision proposed by the House, doubling it to $15,000 or 10% of the home’s purchase price (whichever is lower). What’s more, the credit applies to all buyers – not just those purchasing their first homes.

The Senate credit also has no income limits. The House version, in comparison, allows only those with incomes up to $75,000 for singles and $150,000 for couples to qualify for the full amount. (In that bill, those earning up to $95,000 and $170,000, respectively, can qualify for a partial credit.)

Also, unlike the tax credit passed last summer as part of the Housing Recovery Act, this one does not have to be repaid. The old credit acted more like a no-interest loan than a true credit and, as a result, had little impact on home sales.

How Does the Economy Affect the Real Estate Industry?

I saw this article today, and thought I’d share it with you:

RISMEDIA, Sept. 4, 2008-I’ve been in the real estate industry for so long that I feel like I should be 90 years old. The truth of the matter is that I’m only 57, but I’ve been in the industry since before I was even of legal age to drink. That is a story in itself, not being able to have a glass of wine when you get home after a day in the real estate industry.

However, what I want to address a subject that seems very apparent to me after witnessing several up and down markets in the industry over the last 36 years. The subject is really a question-how does the economy affect the real estate industry?

I’ve noticed that when the citizens of this country start to feel insecure with our country’s direction, coupled with a fear of the economy and the stock market, they start to take the money out of the stock market and put it into real estate.

Housing and Economic Recovery Act of 2008

Today, President Bush signed H.R. 3221, the “Housing and Economic Recovery Act of 2008″ into law. The bill was passed by the House of Representatives in a 272-152 vote and approved by the Senate in a 72-13 vote.According to the Wall Street Journal, lawmakers have described the bill as the “most important piece of housing legislation in a generation.” Intended to stabilize the housing market, the bill includes long-sought reforms for the Federal Housing Administration, a tax credit for homebuyers, nearly $4 billion in grants to cities and states to buy and rehabilitate foreclosed homes and a Treasury Department proposal to help restore confidence in Fannie Mae and Freddie Mac.

Lawmakers are already pressing regulators and lenders to prepare now so the program can begin without delay when it goes into effect October 1.

Click here to learn more about the Housing and Economic Recovery Act of 2008.

What a week!

I’ve had quite a busy week in real estate!  Two homes went under contract (and I’m expecting an offer today on another one of my listings), I had a listing presentation, a buyer consultation, a home inspection, and showed a few homes, too! 

When I started this blog, my hope was to have a new entry every day.  My schedule kind of took over, but I’ve been working on a piece called, Preparing Your Home For Sale, with a list of improvements sellers can make to appeal to buyers.  I am almost ready to publish it, I just need to tweak a few things and add a couple of pictures.  Look for it by tomorrow!

Weichert Relocation Wins Prestigious Leadership Award

RISMEDIA, July 24, 2008-BlessingWhite, one of the world’s leading management consulting and leadership development training companies, recently announced the winners of its 2008 Leadership Award.  This prestigious award is given each year to the three companies among BlessingWhite’s vast global client base that have achieved the most significant results in driving breakthrough performance and a purposeful culture.