In a somewhat surprising announcement, FHA has announced that it is waiving the property flipping rule for one rule starting February 1, 2010, with regard to subsequent sales by purchasers. Here is the link to the waiver:
Flip Rule Waived
In the waiver, FHA said it was taking this action to address the foreclosure crisis.
The waiver is limited to sales meeting the following conditions:
All transactions must arms-length; no identity of interest between buyer, seller or third parties.
Ways to ensure no unacceptable arrangements include: Seller holds title, LLCs, corporations or trusts that are serving as sellers must meet applicable State and Federal law
No pattern of previous flipping activity exists on property (as evidenced by multiple title transfers w/i 12 month)
Property marketed openly and fairly (Any sales contracts w/ “assignment of contract of sale”) may be a red flag
Sales w/ 20% increase over seller’s acquisition cost will only be permitted if the lender:
Provides supporting documentation and/or second appraisal which substantiates increase in value (I.e. renovation or rehabilitation)
Orders a property inspection and provides it to the purchaser. (Borrower may be charged for inspection.)
Waiver provides what the inspection must review and other requirements
Waiver is limited to forward mortgages
Timing:
The waiver is effective beginning on February 1st for one year. The waiver also includes the language “with regard to subsequent sales by purchasers”. While it appears this waiver applies to new sales, we will check w/ FHA to see if it can be applied to sales that have already occurred and did not meet previous exemptions.
Friday, February 5, 2010
Monday, November 23, 2009
Tax credit give home sales a boost!!!
By ALAN ZIBEL, AP Real Estate Writer Alan Zibel, Ap Real Estate Writer – Mon Nov 23, 6:32 pm ET
WASHINGTON – First-time buyers taking advantage of a special tax credit gave sales of existing homes in October their biggest surge in a decade, raising hopes for a turnaround in the housing market and pleasing Wall Street.
While rising foreclosures and disappearing jobs still threaten the comeback, there are now bidding wars for houses in some cities, and home sales are nearly 36 percent above their low point in January.
The National Association of Realtors said resales rose 10.1 percent to a seasonally adjusted annual rate of 6.1 million in October, from 5.5 million in September. It was the biggest monthly increase in a decade and far better than what economists expected, according to Thomson Reuters.
Analysts said the gains mainly reflected the tax credit of up to $8,000 for new homeowners, which was due to expire this month before Congress extended it until spring — and expanded it to more buyers.
The sales figures released Monday provided the juice for a rally on Wall Street. The Dow Jones industrial average, also lifted by a weak dollar, rose more than 130 points.
The extension of the homebuyer tax credit should help sustain the housing market next year, economists said. Yet the overall economy will probably benefit only slightly from higher home sales.
There are still too many factors weighing down the recovery. Foreclosures are rising. Job creation is slow. People remain reluctant to spend. And construction of new homes — as opposed to sales of existing ones — plunged in October.
The biggest contribution the housing industry makes to economic growth is from home building. Commissions and fees generated from home sales also help, but far less than construction.
"I wouldn't want to bet the house on housing, really, in terms of the strength of the U.S. economy going forward," said Diane Swonk, chief economist at Mesirow Financial in Chicago."
That's partly because shoppers seem in no mood to spend. In fact, 93 percent say they'll spend less or about the same as last year, according to an Associated Press-GfK poll. Half of all those polled say they're suffering at least some debt-related stress.
Next year is likely to bring only slight improvement, given high unemployment and tight credit, according to the National Association for Business Economics. Consumer spending will rise a lackluster 2 percent next year, restraining the recovery, NABE forecasters said.
For now, the housing market is feeding on the homebuyer tax credit, along with falling home prices and low mortgage rates. Average rates on 30-year mortgages have hovered around 5 percent this fall.
At the current sales pace, there's a modest seven-month supply of previously occupied homes on the market. Sales are still running 16 percent below their peak in 2005, but real estate agents say the pace has definitely picked up.
"People who are looking, they are serious," said Harrison Tulloss, an agent with ZipRealty Inc. in the Raleigh-Durham area of North Carolina. "They're not riding around with me if they need to go shopping or buy a turkey."
Joey Wilson and her husband made unsuccessful offers on 20 Las Vegas homes starting in midsummer before they closed on a four-bedroom, $136,000 home this month.
"It's insane," said Wilson, who relocated from Kentucky. "I've never seen a market like this before."
Reduced home prices and federal programs to lower mortgage rates have brought more buyers into the market. The median sales price was $173,100 in October, down 7 percent from a year earlier and 25 percent below the peak.
Many experts predict prices will hit a new low next spring, perhaps falling 5 to 10 percent further as more foreclosures spill into the market. The government has tried to counter that trend by offering the tax credit and keeping mortgage rates low.
Without the a deadline looming for the tax credit, home sales are likely to fall over the winter as buyers hibernate for a few months. Analysts say the new deadline — buyers have to sign a purchase agreement by April 30 — means sales will surge next spring, before dropping back again later in 2010.
What happens after that is anyone's guess.
"When we do kick those crutches out from under the housing market, will it be able to stand on its own?" said Mark Fleming, chief economist with First American CoreLogic. "It's really hard to tell."
The government has also helped the housing market by acting to lower mortgage rates. The Federal Reserve, for example, has pumped $1.25 trillion into mortgage-backed securities to try to lower mortgage rates and loosen credit. That program is scheduled to end by March.
If rates go up without the government help, homes would be less affordable, which could dampen demand.
A disquieting report last week from the Mortgage Bankers Association said more fixed-rate home loans made to people with good credit were sinking into foreclosure as layoffs go on. A record-high 14 percent of homeowners with a mortgage were either behind on payments or in foreclosure at the end of September.
In areas where foreclosures have hit hard, housing remains depressed, despite low prices, low mortgage rates and the tax credit. Yet for homebuyers with cash and access to credit, falling prices and low mortgage rates have proved irresistible.
The Realtors' report on October home sales reflects offers made before buyers knew the credit would be extended.
In Raleigh, N.C., first-time buyer Louise Brunson snapped up a three-bedroom town house for $235,000. She and her husband had planned to buy a year and a half ago but decided to wait until prices fell further. The tax credit was a big plus, too.
"We suspected that it might be extended," said Brunson, a paralegal. "But we did want to go ahead and get it done to be on the safe side."
___
Associated Press writers Alex Veiga, Adrian Sainz and David Twiddy contributed to this report.
WASHINGTON – First-time buyers taking advantage of a special tax credit gave sales of existing homes in October their biggest surge in a decade, raising hopes for a turnaround in the housing market and pleasing Wall Street.
While rising foreclosures and disappearing jobs still threaten the comeback, there are now bidding wars for houses in some cities, and home sales are nearly 36 percent above their low point in January.
The National Association of Realtors said resales rose 10.1 percent to a seasonally adjusted annual rate of 6.1 million in October, from 5.5 million in September. It was the biggest monthly increase in a decade and far better than what economists expected, according to Thomson Reuters.
Analysts said the gains mainly reflected the tax credit of up to $8,000 for new homeowners, which was due to expire this month before Congress extended it until spring — and expanded it to more buyers.
The sales figures released Monday provided the juice for a rally on Wall Street. The Dow Jones industrial average, also lifted by a weak dollar, rose more than 130 points.
The extension of the homebuyer tax credit should help sustain the housing market next year, economists said. Yet the overall economy will probably benefit only slightly from higher home sales.
There are still too many factors weighing down the recovery. Foreclosures are rising. Job creation is slow. People remain reluctant to spend. And construction of new homes — as opposed to sales of existing ones — plunged in October.
The biggest contribution the housing industry makes to economic growth is from home building. Commissions and fees generated from home sales also help, but far less than construction.
"I wouldn't want to bet the house on housing, really, in terms of the strength of the U.S. economy going forward," said Diane Swonk, chief economist at Mesirow Financial in Chicago."
That's partly because shoppers seem in no mood to spend. In fact, 93 percent say they'll spend less or about the same as last year, according to an Associated Press-GfK poll. Half of all those polled say they're suffering at least some debt-related stress.
Next year is likely to bring only slight improvement, given high unemployment and tight credit, according to the National Association for Business Economics. Consumer spending will rise a lackluster 2 percent next year, restraining the recovery, NABE forecasters said.
For now, the housing market is feeding on the homebuyer tax credit, along with falling home prices and low mortgage rates. Average rates on 30-year mortgages have hovered around 5 percent this fall.
At the current sales pace, there's a modest seven-month supply of previously occupied homes on the market. Sales are still running 16 percent below their peak in 2005, but real estate agents say the pace has definitely picked up.
"People who are looking, they are serious," said Harrison Tulloss, an agent with ZipRealty Inc. in the Raleigh-Durham area of North Carolina. "They're not riding around with me if they need to go shopping or buy a turkey."
Joey Wilson and her husband made unsuccessful offers on 20 Las Vegas homes starting in midsummer before they closed on a four-bedroom, $136,000 home this month.
"It's insane," said Wilson, who relocated from Kentucky. "I've never seen a market like this before."
Reduced home prices and federal programs to lower mortgage rates have brought more buyers into the market. The median sales price was $173,100 in October, down 7 percent from a year earlier and 25 percent below the peak.
Many experts predict prices will hit a new low next spring, perhaps falling 5 to 10 percent further as more foreclosures spill into the market. The government has tried to counter that trend by offering the tax credit and keeping mortgage rates low.
Without the a deadline looming for the tax credit, home sales are likely to fall over the winter as buyers hibernate for a few months. Analysts say the new deadline — buyers have to sign a purchase agreement by April 30 — means sales will surge next spring, before dropping back again later in 2010.
What happens after that is anyone's guess.
"When we do kick those crutches out from under the housing market, will it be able to stand on its own?" said Mark Fleming, chief economist with First American CoreLogic. "It's really hard to tell."
The government has also helped the housing market by acting to lower mortgage rates. The Federal Reserve, for example, has pumped $1.25 trillion into mortgage-backed securities to try to lower mortgage rates and loosen credit. That program is scheduled to end by March.
If rates go up without the government help, homes would be less affordable, which could dampen demand.
A disquieting report last week from the Mortgage Bankers Association said more fixed-rate home loans made to people with good credit were sinking into foreclosure as layoffs go on. A record-high 14 percent of homeowners with a mortgage were either behind on payments or in foreclosure at the end of September.
In areas where foreclosures have hit hard, housing remains depressed, despite low prices, low mortgage rates and the tax credit. Yet for homebuyers with cash and access to credit, falling prices and low mortgage rates have proved irresistible.
The Realtors' report on October home sales reflects offers made before buyers knew the credit would be extended.
In Raleigh, N.C., first-time buyer Louise Brunson snapped up a three-bedroom town house for $235,000. She and her husband had planned to buy a year and a half ago but decided to wait until prices fell further. The tax credit was a big plus, too.
"We suspected that it might be extended," said Brunson, a paralegal. "But we did want to go ahead and get it done to be on the safe side."
___
Associated Press writers Alex Veiga, Adrian Sainz and David Twiddy contributed to this report.
Wednesday, November 11, 2009
First time homebuyer tax credit extension 2010
Home Buyer Tax Credit: 10 Things to Know
On Nov. 6, the president signed the new Worker, Homeownership, and Business Assistance Act of 2009 into law. The centerpiece of this legislation is the extension and liberalization of what is now inaccurately called the first-time home buyer credit.
Here are the 10 most important things to know about the revamped credit.
1. New purchase deadline extends into 2010
The home buyer credit was previously scheduled to expire on Nov. 30, 2009. The new law extends the deal to cover purchases of U.S. principal residences that close by April 30, 2010. However, if a home is under contract on that date, the deadline for closing is extended to June 30, 2010.
2. Existing homeowners can now qualify
The new law allows a reduced credit for existing homeowners who buy a replacement U.S. principal residence after Nov. 6, 2009. The credit equals the lesser of: (1) $6,500, or (2) 10% of the price of the replacement home, or (3) $3,250 for a buyer who uses married filing separate status. The new existing-homeowner credit is only available for purchases that close after Nov. 6, 2009. To qualify, the buyer must have owned and used the same home as a principal residence for at least five consecutive years during the eight-year period ending on the purchase date for the replacement principal residence. If you’re married, your spouse must pass this test too (whether or not you file jointly).
3. Larger credits still allowed for first-time buyers
Before the new law, the home buyer credit was only available to so-called first-time buyers, which means someone who had not owned a U.S. principal residence during the three-year period ending on the purchase date for a home that will serve as the buyer’s new principal residence. If you’re married, both you and your spouse must pass the three-year test (whether or not you file jointly). These first-time home buyer rules still apply for purposes of claiming a larger credit of up to $8,000. Specifically, the credit for a first-time buyer still equals the lesser of: (1) $8,000, or (2) 10% of the home purchase price, or (3) $4,000 if you use married filing separate status.
4. Higher-income folks can now qualify
The home buyer credit is phased out (reduced or completely eliminated) as income goes up. However, the new law significantly raises the phase-out ranges so that many more higher-income buyers will now qualify.
* For purchases after Nov. 6, 2009, the phase-out range for unmarried individuals and married folks who file separately is between modified adjusted gross income (MAGI) of $125,000 and $145,000 (way up from the old-law range of $75,000-$95,000).
* The phase-out range for married joint filers is now between MAGI of $225,000 and $245,000 (way up from the previous range of $150,000-$170,000).
5. New $800,000 purchase price limit
For purchases after Nov. 6, 2009, the credit can only be claimed for a principal residence that costs $800,000 or less. So if your new home costs $800,001, the credit is completely off limits (but I doubt too many people will feel sorry for you).
6. No more credits for kids or dependents
For purchases after Nov. 6, 2009, the home buyer must be at least 18 years old on the purchase date to qualify for the credit. Also, no credit is allowed for a buyer who can be claimed as a dependent on someone else’s Form 1040 for the year of the purchase. These new rules are intended to shut down the practice of claiming the credit for youngish buyers who really don’t even have incomes of their own (like college students who use money from their parents to buy a pad near campus).
7. New anti-fraud rules
A recent government report said the IRS has already identified over 100,000 returns with potentially fraudulent home buyer credits. This is hardly surprising when the government is willing to give away up to $8,000 in free money to anyone who files a return, even when that person reports no income. Believe it or not, absolutely no documentation was required to claim the credit, until now. For credits claimed on 2009 and 2010 returns, buyers must attach a properly executed real estate settlement sheet to the return. Also, the IRS can now simply disallow credits in fishy circumstances (like when it appears the $8,000 credit is being claimed by someone who already owns a home).
8. Credits can still be claimed on prior-year returns
Under the revamped rules, you can still claim the credit for a 2009 purchase on your 2008 return (although you would now generally have to file an amended return to do so). You can also claim the credit for a 2010 purchase on your 2009 Form 1040. This allows you to cash in on the credit sooner rather than later, and it may also allow you to claim a larger credit if your income in the year of purchase is higher than in the preceding year.
9. Credits must still be repaid in some cases
Under old-law rules for homes purchased between April 9, 2008 and Dec. 31, 2008, buyers are generally required to repay the credit over 15 years. However, this repayment rule is generally eliminated for purchases after 2008. That said, you might still have to repay the credit if you sell your home within three years of the purchase date or stop using it as your principal residence during that period.
10. Special rules for military service members
For military service members on extended duty outside the U.S., the new law lengthens the deadline for closing on home purchases for an extra year, to April 30, 2011 (or June 30, 2011 for homes under contract on April 30, 2011). The new law also waives the credit repayment rules for service members who are forced to move due to receiving new orders. The same special rules apply to members of the foreign service and intelligence communities.
Written by Bill Bischoff The Tax Guy (USA Today)
****THE TAX CREDIT AS ABOVE IS THROUGH JUNE 1ST, 2010 SO BUYERS MUST BE UNDER CONTRACT BY APRIL 30, 2010 AND CLOSE BY JUNE 1, 2010 TO BE ELIGIBLE.
On Nov. 6, the president signed the new Worker, Homeownership, and Business Assistance Act of 2009 into law. The centerpiece of this legislation is the extension and liberalization of what is now inaccurately called the first-time home buyer credit.
Here are the 10 most important things to know about the revamped credit.
1. New purchase deadline extends into 2010
The home buyer credit was previously scheduled to expire on Nov. 30, 2009. The new law extends the deal to cover purchases of U.S. principal residences that close by April 30, 2010. However, if a home is under contract on that date, the deadline for closing is extended to June 30, 2010.
2. Existing homeowners can now qualify
The new law allows a reduced credit for existing homeowners who buy a replacement U.S. principal residence after Nov. 6, 2009. The credit equals the lesser of: (1) $6,500, or (2) 10% of the price of the replacement home, or (3) $3,250 for a buyer who uses married filing separate status. The new existing-homeowner credit is only available for purchases that close after Nov. 6, 2009. To qualify, the buyer must have owned and used the same home as a principal residence for at least five consecutive years during the eight-year period ending on the purchase date for the replacement principal residence. If you’re married, your spouse must pass this test too (whether or not you file jointly).
3. Larger credits still allowed for first-time buyers
Before the new law, the home buyer credit was only available to so-called first-time buyers, which means someone who had not owned a U.S. principal residence during the three-year period ending on the purchase date for a home that will serve as the buyer’s new principal residence. If you’re married, both you and your spouse must pass the three-year test (whether or not you file jointly). These first-time home buyer rules still apply for purposes of claiming a larger credit of up to $8,000. Specifically, the credit for a first-time buyer still equals the lesser of: (1) $8,000, or (2) 10% of the home purchase price, or (3) $4,000 if you use married filing separate status.
4. Higher-income folks can now qualify
The home buyer credit is phased out (reduced or completely eliminated) as income goes up. However, the new law significantly raises the phase-out ranges so that many more higher-income buyers will now qualify.
* For purchases after Nov. 6, 2009, the phase-out range for unmarried individuals and married folks who file separately is between modified adjusted gross income (MAGI) of $125,000 and $145,000 (way up from the old-law range of $75,000-$95,000).
* The phase-out range for married joint filers is now between MAGI of $225,000 and $245,000 (way up from the previous range of $150,000-$170,000).
5. New $800,000 purchase price limit
For purchases after Nov. 6, 2009, the credit can only be claimed for a principal residence that costs $800,000 or less. So if your new home costs $800,001, the credit is completely off limits (but I doubt too many people will feel sorry for you).
6. No more credits for kids or dependents
For purchases after Nov. 6, 2009, the home buyer must be at least 18 years old on the purchase date to qualify for the credit. Also, no credit is allowed for a buyer who can be claimed as a dependent on someone else’s Form 1040 for the year of the purchase. These new rules are intended to shut down the practice of claiming the credit for youngish buyers who really don’t even have incomes of their own (like college students who use money from their parents to buy a pad near campus).
7. New anti-fraud rules
A recent government report said the IRS has already identified over 100,000 returns with potentially fraudulent home buyer credits. This is hardly surprising when the government is willing to give away up to $8,000 in free money to anyone who files a return, even when that person reports no income. Believe it or not, absolutely no documentation was required to claim the credit, until now. For credits claimed on 2009 and 2010 returns, buyers must attach a properly executed real estate settlement sheet to the return. Also, the IRS can now simply disallow credits in fishy circumstances (like when it appears the $8,000 credit is being claimed by someone who already owns a home).
8. Credits can still be claimed on prior-year returns
Under the revamped rules, you can still claim the credit for a 2009 purchase on your 2008 return (although you would now generally have to file an amended return to do so). You can also claim the credit for a 2010 purchase on your 2009 Form 1040. This allows you to cash in on the credit sooner rather than later, and it may also allow you to claim a larger credit if your income in the year of purchase is higher than in the preceding year.
9. Credits must still be repaid in some cases
Under old-law rules for homes purchased between April 9, 2008 and Dec. 31, 2008, buyers are generally required to repay the credit over 15 years. However, this repayment rule is generally eliminated for purchases after 2008. That said, you might still have to repay the credit if you sell your home within three years of the purchase date or stop using it as your principal residence during that period.
10. Special rules for military service members
For military service members on extended duty outside the U.S., the new law lengthens the deadline for closing on home purchases for an extra year, to April 30, 2011 (or June 30, 2011 for homes under contract on April 30, 2011). The new law also waives the credit repayment rules for service members who are forced to move due to receiving new orders. The same special rules apply to members of the foreign service and intelligence communities.
Written by Bill Bischoff The Tax Guy (USA Today)
****THE TAX CREDIT AS ABOVE IS THROUGH JUNE 1ST, 2010 SO BUYERS MUST BE UNDER CONTRACT BY APRIL 30, 2010 AND CLOSE BY JUNE 1, 2010 TO BE ELIGIBLE.
VIRGINIA HOME SALES
Virginia’s housing markets appear to be moving upward, with the lowest point seen in fourth quarter 2008 and steadily improving since then, according to the third quarter 2009 home sales report released today by the Virginia Association of Realtors.
“There seems to be no doubt now that we have hit the bottom and are moving back up, in terms of both price and sales activity,” commented VAR President John Powell of Colonial Heights. “We are now in our third consecutive quarter of marked improvement.”
Total existing home sales in Virginia are up 5.3 percent in the third quarter compared to the second quarter numbers, and have reached the highest quarterly total in 2009. The statewide median sales price is up 2.2 percent over the second quarter and has increased about $28,000 this year. Nationally, inventory levels have trended down significantly, reaching the lowest level in 2008 and 2009, indicating the market is rebounding across the country as well.
The highest percentage increase in sales by quarter was in the North Central region (includes the cities of Charlottesville, Waynesboro, Lexington and Staunton), up 29.1 percent since second quarter 2009. However the Southwest Virginia region posted the largest increase in sales compared to the same quarter last year, with a 7.6 percent increase in sales over 2008.
Median sales prices advanced 4.6 percent in the Northern Virginia region compared to the same period last year, while the South Central region showed the largest increase (7.7 percent) in median sales price since second quarter 2009.
Highlights: Third Quarter 2009
- In national news, Congress is considering an extension of the $8,000 first-time buyers’ credit and the possibility of broadening the program to all buyers.
- Mortgage rates trended down and the weekly conventional rate ended the quarter at 5.04 percent. The stock market exceeded the 9,000 mark in late July and remained in the 9,000-9,999 range through the end of the quarter.
- Total existing home sales in Virginia grew to 25,032 units (up 5.3 percent) in 3Q 09 vs. 2Q 09, but were down 2.2 percent vs. 3Q 08. Four of the seven regions reporting showed an increase in sales for 3Q 09 compared to 3Q 08.
- The highest percentage increase in sales occurred in the North Central region, up 29.1 percent in 3Q 09 vs. 3Q 08.
- The only area to experience a percentage decrease in sales was Northern Virginia, with a slight 2.5 percent decline for 3Q 09 compared to 2Q 09.
- The statewide median sales price advanced for the third consecutive quarter to $251,324 (up 2.2 percent vs. 2Q 09 and down only .1 percent vs. 3Q 08). The statewide median sales price has increased about $28,000 this year.
- Median sales prices advanced 6.9 percent in the Northern Virginia region from 2Q 09 to 3Q 09. South Central also showed price increases with a 1.5 percent growth from last quarter to the current quarter.
- For the same period (3Q 09 vs. 2Q 09), the upper Shenandoah Valley had the largest percentage decline in median sales price, down 12.42 percent compared to 3Q 08.
- Comparing 3Q 09 to the same period last year, prices were up in Northern Virginia, South Central, Tidewater, and the upper Shenandoah Valley. Only three of the seven reporting regions showed slight decreases in the median sales price.
- The number of foreclosures increased across the Commonwealth (up 7.8 percent) to 18,135 for the quarter. The largest percentage increase in foreclosures compared to 3Q 08 was in the North Central region (up 22.5 percent) while the South Central region had the largest decline (down 32 percent).
- Job losses continued to plague Virginia in the third quarter. The state has lost 97,700 jobs this year, particularly in the Professional and Business sector (-28,800). Unemployment, at 6.7 percent, is the lowest among Virginia’s neighbors and is tied for 5th lowest in the country.
Visit the web page at http://www.VARealtor.com/homesales for details.
Return
“There seems to be no doubt now that we have hit the bottom and are moving back up, in terms of both price and sales activity,” commented VAR President John Powell of Colonial Heights. “We are now in our third consecutive quarter of marked improvement.”
Total existing home sales in Virginia are up 5.3 percent in the third quarter compared to the second quarter numbers, and have reached the highest quarterly total in 2009. The statewide median sales price is up 2.2 percent over the second quarter and has increased about $28,000 this year. Nationally, inventory levels have trended down significantly, reaching the lowest level in 2008 and 2009, indicating the market is rebounding across the country as well.
The highest percentage increase in sales by quarter was in the North Central region (includes the cities of Charlottesville, Waynesboro, Lexington and Staunton), up 29.1 percent since second quarter 2009. However the Southwest Virginia region posted the largest increase in sales compared to the same quarter last year, with a 7.6 percent increase in sales over 2008.
Median sales prices advanced 4.6 percent in the Northern Virginia region compared to the same period last year, while the South Central region showed the largest increase (7.7 percent) in median sales price since second quarter 2009.
Highlights: Third Quarter 2009
- In national news, Congress is considering an extension of the $8,000 first-time buyers’ credit and the possibility of broadening the program to all buyers.
- Mortgage rates trended down and the weekly conventional rate ended the quarter at 5.04 percent. The stock market exceeded the 9,000 mark in late July and remained in the 9,000-9,999 range through the end of the quarter.
- Total existing home sales in Virginia grew to 25,032 units (up 5.3 percent) in 3Q 09 vs. 2Q 09, but were down 2.2 percent vs. 3Q 08. Four of the seven regions reporting showed an increase in sales for 3Q 09 compared to 3Q 08.
- The highest percentage increase in sales occurred in the North Central region, up 29.1 percent in 3Q 09 vs. 3Q 08.
- The only area to experience a percentage decrease in sales was Northern Virginia, with a slight 2.5 percent decline for 3Q 09 compared to 2Q 09.
- The statewide median sales price advanced for the third consecutive quarter to $251,324 (up 2.2 percent vs. 2Q 09 and down only .1 percent vs. 3Q 08). The statewide median sales price has increased about $28,000 this year.
- Median sales prices advanced 6.9 percent in the Northern Virginia region from 2Q 09 to 3Q 09. South Central also showed price increases with a 1.5 percent growth from last quarter to the current quarter.
- For the same period (3Q 09 vs. 2Q 09), the upper Shenandoah Valley had the largest percentage decline in median sales price, down 12.42 percent compared to 3Q 08.
- Comparing 3Q 09 to the same period last year, prices were up in Northern Virginia, South Central, Tidewater, and the upper Shenandoah Valley. Only three of the seven reporting regions showed slight decreases in the median sales price.
- The number of foreclosures increased across the Commonwealth (up 7.8 percent) to 18,135 for the quarter. The largest percentage increase in foreclosures compared to 3Q 08 was in the North Central region (up 22.5 percent) while the South Central region had the largest decline (down 32 percent).
- Job losses continued to plague Virginia in the third quarter. The state has lost 97,700 jobs this year, particularly in the Professional and Business sector (-28,800). Unemployment, at 6.7 percent, is the lowest among Virginia’s neighbors and is tied for 5th lowest in the country.
Visit the web page at http://www.VARealtor.com/homesales for details.
Return
Friday, September 25, 2009
America's Home Grant - $2500 available
AMERICA’S HOME GRANT:
$2,500 grant available for buyers!!!
Grant money can be used towards closing costs, prepaids, including discount points
Borrowers cannot exceed the annual income of $50,400
Grant is only for owner-occupied properties
Cannot use for down payment assistance
Areas grant is allowable: Alexandria City, Arlington, Charles, Clarke, Fauquier, Calvert, DC, Fairfax City, Loudoun, Falls Church City, Fredericksburg, Manassas City, Manassas Park City, Prince Georges, Prince William, Spotsylvania, Stafford County, Fairfax County, and Warren
Karen Gloster
Loan Officer / FHA 203k Renovation Loan Specialist
703-227-2516 Office 703-626-9007 Mobile
$2,500 grant available for buyers!!!
Grant money can be used towards closing costs, prepaids, including discount points
Borrowers cannot exceed the annual income of $50,400
Grant is only for owner-occupied properties
Cannot use for down payment assistance
Areas grant is allowable: Alexandria City, Arlington, Charles, Clarke, Fauquier, Calvert, DC, Fairfax City, Loudoun, Falls Church City, Fredericksburg, Manassas City, Manassas Park City, Prince Georges, Prince William, Spotsylvania, Stafford County, Fairfax County, and Warren
Karen Gloster
Loan Officer / FHA 203k Renovation Loan Specialist
703-227-2516 Office 703-626-9007 Mobile
First time home buyer tax credit extended
Today President Obama signed a bill into law that extends the $8,000 tax credit to first-time home buyers until April 30, 2010, and includes a tax credit for home buyers who "move up" or "trade-in" their home.
The tax credit has greatly helped to stabilize the housing market, and could make an even larger impact by including more home buyers.
Under the new bill, home buyers who are have lived in their home for at least five concurrent years over the past eight years, and purchase a new home, are eligible for a $6,500 tax credit. The new house does not have to cost more than the orginial home. Also, the credit is available for home buyers who once owned a home (and lived there for at least five concurrent years over the past eight years), but have since sold it and have been renting.
Another expansion in the new bill is that buyers with higher incomes can qualify for either credit. The earnings cap has been amended to $125,000 for an individual and $225,000 for a couple. To learn more about the tax credit extenstion and expansion, read the following information form the National Association of Realtors.
Q. Existing homeowner credit: Must the new house cost more than the old house?
A. No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.
Q. I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?
A. Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.
Q. I am a first-time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?
A. Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you’re within the phase-out range).
Q. I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a non-negotiable price of $825,000. Will I be able to use any of the $6500 tax credit?
A. No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.
Q. I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?
A. Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight, what he did since 3 years doesn’t impact eligibility.
Q. I am an eligible first-time homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?
A. You do not have to close before December 1. Once the legislation has been signed, it will be as if the November 30 deadline had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.
The tax credit has greatly helped to stabilize the housing market, and could make an even larger impact by including more home buyers.
Under the new bill, home buyers who are have lived in their home for at least five concurrent years over the past eight years, and purchase a new home, are eligible for a $6,500 tax credit. The new house does not have to cost more than the orginial home. Also, the credit is available for home buyers who once owned a home (and lived there for at least five concurrent years over the past eight years), but have since sold it and have been renting.
Another expansion in the new bill is that buyers with higher incomes can qualify for either credit. The earnings cap has been amended to $125,000 for an individual and $225,000 for a couple. To learn more about the tax credit extenstion and expansion, read the following information form the National Association of Realtors.
Q. Existing homeowner credit: Must the new house cost more than the old house?
A. No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.
Q. I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?
A. Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.
Q. I am a first-time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?
A. Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you’re within the phase-out range).
Q. I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a non-negotiable price of $825,000. Will I be able to use any of the $6500 tax credit?
A. No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.
Q. I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?
A. Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight, what he did since 3 years doesn’t impact eligibility.
Q. I am an eligible first-time homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?
A. You do not have to close before December 1. Once the legislation has been signed, it will be as if the November 30 deadline had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.
Wednesday, September 23, 2009
Overview of Housing and Human Rights
Overview of Housing and Human Rights
By Pamela Struss, Realtor, RE/MAX 1st Realty
Housing/shelter is one of our basic human needs. Humans have sought shelter since the beginning of man. First, man climbed trees for protection from weather and predators and as he learned to use tools, he used the branches and limbs to construct crude shelter. About the same time he discovered caves and that too became shelter/housing. Human have always and will continue to seek housing/shelter because it is a basic human need and human right.
Housing is delineated in several human rights international documents and apply to the United States. Human rights are afforded every person simply because he is human regardless of age, gender, ethnicity, social economic status, education, familial status, birth order, political affiliation, citizenship, religious belief or non belief have human rights. Therefore all humans are entitled to shelter/housing that provides adequate protection in order to sustain life.
One of the United Nations’ documents which provides protection for housing/shelter is the United Nation Declaration of Human Rights (UNDHR). The United States is a signatory to UNDHR document and more importantly has ratified it, meaning we agree to abide by it.
Since housing/shelter is guaranteed to all humans primarily by UNDHR, does that mean certain standards are set for structural type, amenities or size? Certainly not. The standard set is that it be adequate to sustain human life as state in Article 25 of UNDHR and it is as follows: “all have a right to a standard of living that promotes the health and well being of himself and his family including food, clothing, housing, medical care, social services, sickness, security in case of unemployment, disability, widowhood, old age and lack of livelihood due to circumstances beyond their control.”
Adequate housing/shelter could be described as a structure that provides a barrier from the weather elements including but not limited to a secured door, windows, and roof; a source of cooking, refrigeration for food, heat, hot water and indoor plumbing. Absent are amenities such as air conditioning, dishwasher, disposal and carpeting.
Several days ago there was an article about a couple who had died in a murder/suicide because they had lost their home through foreclosure. Loving and supportive friends helped them to plan and pack to move to another state out west, however the couple lost all hope. This is a disturbing story of a family who lost their shelter. We must realize behind all the foreclosures regardless of their cause, there are human lives being affected.
Why should we be concerned about housing/shelter for all despite their sex, age, ethnicity, religion, citizenship or familial status? Simply it is what separates us from other life forms. Each of us is at risk for losing our housing; the causes are not just man made. Natural disasters do not spare anyone, for instance Hurricane Katrina. Man made disasters can and do target certain populations, for example, the foreclosure crisis. Humans can protect themselves from such disasters through education about financial literacy, home buying/selling process and home maintenance. Where is a good place to find such education? Call your local board of realtors, Prince William Association of Realtors at 703- 565-0033. They are eager to assist you with valuable information about the home buying process, selecting a realtor, finding a lender and the settlement process.
By Pamela Struss, Realtor, RE/MAX 1st Realty
Housing/shelter is one of our basic human needs. Humans have sought shelter since the beginning of man. First, man climbed trees for protection from weather and predators and as he learned to use tools, he used the branches and limbs to construct crude shelter. About the same time he discovered caves and that too became shelter/housing. Human have always and will continue to seek housing/shelter because it is a basic human need and human right.
Housing is delineated in several human rights international documents and apply to the United States. Human rights are afforded every person simply because he is human regardless of age, gender, ethnicity, social economic status, education, familial status, birth order, political affiliation, citizenship, religious belief or non belief have human rights. Therefore all humans are entitled to shelter/housing that provides adequate protection in order to sustain life.
One of the United Nations’ documents which provides protection for housing/shelter is the United Nation Declaration of Human Rights (UNDHR). The United States is a signatory to UNDHR document and more importantly has ratified it, meaning we agree to abide by it.
Since housing/shelter is guaranteed to all humans primarily by UNDHR, does that mean certain standards are set for structural type, amenities or size? Certainly not. The standard set is that it be adequate to sustain human life as state in Article 25 of UNDHR and it is as follows: “all have a right to a standard of living that promotes the health and well being of himself and his family including food, clothing, housing, medical care, social services, sickness, security in case of unemployment, disability, widowhood, old age and lack of livelihood due to circumstances beyond their control.”
Adequate housing/shelter could be described as a structure that provides a barrier from the weather elements including but not limited to a secured door, windows, and roof; a source of cooking, refrigeration for food, heat, hot water and indoor plumbing. Absent are amenities such as air conditioning, dishwasher, disposal and carpeting.
Several days ago there was an article about a couple who had died in a murder/suicide because they had lost their home through foreclosure. Loving and supportive friends helped them to plan and pack to move to another state out west, however the couple lost all hope. This is a disturbing story of a family who lost their shelter. We must realize behind all the foreclosures regardless of their cause, there are human lives being affected.
Why should we be concerned about housing/shelter for all despite their sex, age, ethnicity, religion, citizenship or familial status? Simply it is what separates us from other life forms. Each of us is at risk for losing our housing; the causes are not just man made. Natural disasters do not spare anyone, for instance Hurricane Katrina. Man made disasters can and do target certain populations, for example, the foreclosure crisis. Humans can protect themselves from such disasters through education about financial literacy, home buying/selling process and home maintenance. Where is a good place to find such education? Call your local board of realtors, Prince William Association of Realtors at 703- 565-0033. They are eager to assist you with valuable information about the home buying process, selecting a realtor, finding a lender and the settlement process.
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