Posted by Michael Saunders & Company on March 25, 2010
With the nation’s housing market behaving most untraditionally over the past few years, many would-be buyers are understandably scratching their heads, wondering if the right time to buy is now.
From strictly a local market perspective, the answer to this frequently-asked question is an enthusiastic—if qualified—“yes.” Having been among the first regions in the nation to experience the full brunt of the housing bubble—and its all-too-familiar aftermath—Southwest Florida is now ahead of the curve with respect to its recovery. More than two years of aggressive price reductions have recently restored some semblance of local stability to our market; while nationally, sales took an unexpected dip this winter—largely attributed to weather that prevented buyers from leaving their current homes to shop for new ones.
In Sarasota, Manatee and Charlotte Counties, on the other hand, the weather stopped no buyers from making their appointed rounds. Unit sales are up, pending sales are up dramatically, inventories have been reduced, and our market’s median price, no longer in freefall, is bobbing up and down marginally from month to month—traditionally a symptom of firming-up prices.
Thus, all indicators of a sustained recovery are evident throughout the region as we wrap up the first quarter of 2010. Add two seriously attractive purchasing incentives to the mix—the first time home buyer tax credit and historically low interest rates—and you’ll understand why so many people feel it’s now or never if buying at rock bottom prices is priority one.
A tax credit of up to $8,000 is available to new homebuyers. Act now!
With April 15 quickly approaching, many of us find ourselves scrambling for the necessary information to ensure Uncle Sam gets his share—and our refunds are maximized. This past year, new legislation passed through the United States Congress to extend and expand the popular first-time homebuyer tax credit. The new and improved federal homebuyer tax credit can benefit not only first-time homebuyers, but also homeowners who choose to upgrade or buy a new home.
So, if you are thinking about taking advantage of this limited-time offer, or already have, here are the top 10 things you should know about the homebuyer’s tax credit before it runs out: (more…)
Homes decorated for the holidays add a special touch for homebuyers.
From November to January, folks are geared up for celebration, family gatherings and holiday cheer. While this time of year is well known for shopping and gifts, it is also a good time to have your home on the market—contrary to a common mindset.
It is no surprise to learn that homeowners believe that trying to sell their home during the holiday season is a difficult, challenging task. With all the rush and responsibility this time of year brings, why add another headache to the equation? In fact, many sellers take their home off the market during the holiday season, which reduces the competition in the real estate marketplace.
So, go ahead and decorate your home for celebration, and be sure to keep that For Sale sign standing tall. Here are the top 10 reasons why it is a good idea to keep your home listed during the holidays. (more…)
Refinances and first-time homebuyer property sales largely contributed to third quarter volume
Consumers were active in the housing market during the third quarter with refinance and purchase applications. Existing homeowners fueled the refi activity, and first-time homebuyers accounted for 43% of home purchases in August, according to the Sept. 18 issue of Inside Mortgage Finance.
In a September 2009 Wells Fargo Home Mortgage survey, 56% of first-time homebuyers cited the $8,000 tax credit for their reason to purchase. Low interest rates drove 66% of these borrowers, and 74% attributed the decision to low home prices.
In the same survey, renters shared their reasons for intending to purchase their first home within six months. Roughly 84% said low home prices were the reason, 74% cited low interest rates, and 72% referenced the tax credit as the key deciding factor.
As of the publication date, there is still debate in Congress about whether the first-time homebuyer tax credit will be extended beyond the Nov. 30 deadline.
When will local housing markets recover?
Recent news released from the National Association of REALTORS® showed that pending home sales have increased for seven consecutive months based on contracts signed in August. In addition, the S&P/Case-Shiller Home Price Indices demonstrated that the annual decline in home price values continues to slow and that many markets have experienced some sustained monthly increases.
This is an audience participation post in which you are invited and encouraged to weigh-in with your opinions on one of our region’s most pressing economic issues. But first, read on.
Counting today, there are just 30 days to go before the first time homebuyer tax credit expires. For all intents and purposes, if you haven’t gone to contract on a home by now you probably won’t complete your purchase in time to qualify for the credit.
That’s bad news for many qualified buyers who have been in the market for months only to be frustrated at every turn by a system that refuses to budge. Perhaps they’ve been denied financing due to an incompetent appraisal by an out-of-town appraiser. Perhaps the appraisal was accurate, credit scores were good, but the lenders simply refuse to lend. Or perhaps they’ve been on the buyer side of a short-sale where the seller and the lender have been locked in limbo for six months or more. For these reasons—and because the tax credit has had such a positive impact on our market—we join Congress in its support for extending the deadline at least another six months. There’s agreement on both sides of the aisle—and among leading economists—that a recovering housing market is the prime catalyst that will lead the rest of the economy out of the wilderness.
The tax credit has been so effective in stimulating sales and stabilizing home prices that continuing it seems like a no-brainer in light of a housing market that still exhibits contradictory signs of recovery. Secondly, a significant new wave of foreclosures is in the pipeline that could easily undo much of the progress that has been made toward reducing inventory and firming-up prices. One of the key benefits of the tax credit is that it ignited a firestorm of sales that has helped shore-up home prices in spite of the unprecedented number of foreclosures and short sales.
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With the nation’s housing market behaving most untraditionally over the past few years, many would-be buyers are understandably scratching their heads, wondering if the right time to buy is now.
This is an audience participation post in which you are invited and encouraged to weigh-in with your opinions on one of our region’s most pressing economic issues. But first, read on.
