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The Obama administration is going to ramp up the pressure on mortgage lenders to accelerate the loan modifications by highlighting firms that are slow in this area. The $75 billion Treasury Program would pay the mortgage lender $1000 that agree to lower troubled borrowers initially and then $1000 for the next 3 years. This program has received a lot of criticism for failing to stem the tide of foreclosures. To read the full story as reported by CNBC click here.
We are pleased to announce that Marian Morton has joined the Randolph Road office of Helen Adams Realty.
Marian is a 27 year veteran of the Prudential real estate franchise.
In 2007, Marian received the Agent of the Year award for Prudential Carolinas Realty in Charlotte. Marian was a repeated Top Producer and President’s Circle award winner for Prudential’s SouthPark office. Marian was also a recipient of Prudential’s national, Ten Year Legend Award, and she was honored five times by the Charlotte Sales and Marketing Executives International.
Please join us in welcoming Marian to Helen Adams Realty.
The National Association of Realtors reports that existing home sales surged 10.1 percent year over year to annual rate of 6.1 million units. That is the highest total since February 2007. The previously reported pace of 5.54 million units reported in September has been revised. Most analysts agree that people rushing to beat the deadline of the first time home-buyer credit is responsible for the surge.
To read a full article from CNBC click here.
The average closing price for the Charlotte metro area was $196,204 for the month of October, 2009, which is down approximately 9.5% compared to the average closing price in October 2008. Average days from listing date to closing date was 140.7 in October, 2009.
There were 2210 total closed residential units in October 2009, up 16.4%, compared to 2008. The bulk of homes sales continues to be in the lower price ranges, with 89% of sales in the $350,000 and under category. The extension of the $8000 First Time Home Buyer credit until June 2010 will likely continue this trend.
The new tax credit bill also provides a $6500 credit to home owners who purchase a new primary residence – provided they meet income level requirements. This new addendum to the bill will likely increase home sales in the “move up” category, and perhaps raise the average home sale price for the Charlotte metro area.
Click below to see November 2009 Charlotte Real Estate Market Activity:
The market did a stutter step on us with the home buyer tax credit deadline; first, a rush to close on contracts by November 30, then a pause in the market for the first 7 days of the month as the market waited for news on whether the tax credit deadline would be extended.
On November 6, 2009, the $8000 First Time Home Buyer Tax Credit deadline was extended until June, 2010 (along with a new tax credit offer of $6,500 to existing homeowners), and now the market has begun to move forward again. Please see the document below for details on how these tax credits may be applied.
The general thinking is that the returning strength in the market is at entry price levels and as this price level firms up the next higher price level will begin to strengthen in sequence too.
National real estate coach, Zan Monroe (www.zanmonroe.com), reported in this month’s monthly Ninja coaching session that, according to statistics furnished by the National Association of Realtors, when a seller sells their home they “buy up” by 50%. This means that a homeowner who sells their home for $300,000 will buy their next home for $450,000. Zan also noted that most sellers select a new home which is less than 4 miles form the home they previously sold.
On Friday, November 6, President Obama signed a bill to extend the $8000 tax credit for first-time home buyers until June 2010. First-time home buyers will receive the $8000 tax credit if they sign a contract by April 30, 2010 and close on the home by June 30, 2010. The new bill also will provide a $6500 credit for homeowners who purchase a new primary residence, and have lived in their current home for at least five of the previous 8 years.
The bill has a few provisions including:
* Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.
* Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
The bill also introduced 20 weeks of unemployment benefits in states with jobless rates above 8.5%. States with unemployment rates below 8.5% would provide 14 weeks of unemployment benefits.
The bill also provides refunds on profit taxes for businesses that had operating losses in 2008 and 2009.
Click below for the First Time Home Buyer Tax Credit Form:
CNBC, along with many other financial news services report that “First Time Home Buyers” are rescuing the housing market. CNBC reports that given the success of the first time home buyer credit to date and the need for qualified buyers to absorb the inventory coming from additional foreclosures next year that the extension of the credit will help stabilize the market.
To read the full aritcle visit click here, CNBC.
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