Posted by Michael Saunders & Company on May 5, 2010
A consumer survey released in April by a large nationwide real estate firm—combined with recent trends in local sales—helps explain why home buyers continue to flood into our market, anxious to buy; not at all deterred from doing so by having missed the April 30th deadline for the first time home buyer tax credit. Nearly two-thirds of the current home shoppers questioned in the survey said that the expiration of the tax credit will have little or no effect on their determination to move forward with an eventual housing purchase.
To be sure, the tax credit helped re-ignite the real estate market; even as it benefited quite a few buyers with added savings or the ability to bid-up on desired properties. Locally, it helped unleash a backlog of pent-up demand that not only chewed-up a sizeable portion of our swollen inventory of properties priced below $300,000, but also helped stabilize free-falling prices. The inventory of available properties is now at its lowest level since late summer 2005.
All these benefits were what the government had in mind when it first launched—then extended—the popular tax credit. But let’s face it. No incentive on earth, however well-intentioned, is going to motivate people to buy overpriced properties; or ones they don’t really want or need. The tax credit simply sped-up purchases of desired, well-priced properties that probably would have sold anyway. For this reason, we should not be surprised to see a dip in sales in the months immediately following the end of the tax credit. Buyers who absolutely needed the credit in order to move forward are gone. But the absence of the tax credit—in and of itself—won’t stall our market’s recovery the way an unusually large glut of new foreclosures might.
Posted by Michael Saunders & Company on April 8, 2010
Image courtesy of floridarealtors.org
Look for balloons flying in neighborhoods all across the region this Sunday to signify one of the biggest open house parties Florida will ever see. To offer home buyers the convenience of touring dozens of different homes in a single timesaving weekend, the Florida Association of Realtors is hosting this weekend’s first-ever Florida Open House Weekend.
Tens of thousands of homes across the state are open for viewing this Sunday, April 11th with at least 175 of them listed locally by agents of Michael Saunders & Company. Many of the homes are pictured here. The rest can be previewed by visiting michaelsaunders.com. All are open Sunday—from 1:00 until 4:00 p.m—and marked by blue balloons.
Anyone interested in purchasing a home in the near future—perhaps even before the first time home buyer tax credit expires—should not miss this opportunity to preview and compare many different properties on a single day.
With less than three weeks remaining to earn the tax credit, you will find yourself in something of a sprint to cross the finish line. But getting in under the wire is still do-able if you place a home under contract by April 30th; and have cash or financing in place to meet the June 30th deadline for closing. To learn if you qualify for the tax credit, visit Realtor.org.
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…)
2010: Your year to get the most from the real estate market.
As the page on our calendars turned to the fresh slate of 2010, Americans are starting to plan what will be a priority for them when it comes to real estate. Exciting things are happening in the market, and the next few months will bring an unprecedented number of opportunities and possibilities for the heads-up buyer or seller.
While existing homeowners and potential homebuyers experience different situations and needs in regards to their future goals and expectations, we present the top 10 possible New Year resolutions to help point some in the right direction for a successful 2010 in real estate:
1. Get in the Game – Join the nearly 18 percent of Americans who say they’ve resolved to become a first-time homebuyer in 2010, according to a new survey HERE. With the homebuyer tax credit extension running until April 2010, this is an exceptional time to get in the game and become a homeowner. (more…)
Posted by Michael Saunders & Company on December 31, 2009
Across virtually every segment of the economy, 2009 sputtered-in as miserably as 2008 sputtered-out. Yet in spite of its many challenges, the past year showed that it’s better to light one candle than to curse the darkness. For if the experiences of 2009 taught us nothing else, we learned that true professionals united in common cause can truly make good things happen.
That’s how agents from Michael Saunders & Company helped re-awaken the region’s comatose housing market in 2009. United in purpose and armed with statistics to prove the point—they were able to educate sellers to the new realities of a market in which competitive pricing is key. Of course, it never hurts that ours remains Florida’s top destination for a lifestyle rich in world-class cultural and recreational amenities.
With corrected prices now the accepted norm and the popular first-time homebuyer tax credit renewed for another six months, buyers have rushed in and put the market on the fast track to stability. They’ve driven up year-over-year the number of home sales by as much as 63 percent, according to the most recent monthly MLS sales recap for November. As a company, Michael Saunders & Company is proud to announce that our agents finished 2009 with over $1 Billion in closed dollar volume and exceeded our 2008 production. It took 30 percent more transactions to accomplish this uphill feat, but lowered prices proved the catalyst by which buyers were finally heartened to return to the market.
Even as the S&P 500 gained over 69% from its annual low, holiday sales rose and the consumer confidence index improved over 40% in 2009, economists are dubbing 2010 a “Tabletop” year for the real estate industry. This means that having clawed its way back to a sustained level of sales activity, our market will continue in something of a horizontal recovery; without any major setbacks or much in the way of noticeable price appreciation, until the job market picks up and the inventory of properties—especially foreclosures—drops off. With unemployment showing signs of slowing, we are beginning to see the impact of our stimulus dollars at work.
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.
Posted by Michael Saunders & Company on November 19, 2009
Homebuyers probably don’t see themselves this way, but as they step up to take advantage of the best housing values in more than a decade each becomes their own personal economic stimulus package, securing for themselves a fabulous long term investment even as they help rescue the economy from the mess it’s in. More likely, they see themselves as grand prize winners in the housing sweepstakes; smartly timing the market just as prices are bottoming, interest rates are at an all-time low and the first time homebuyer tax credit is on hand to add an extra dollop of icing to the cake. Moreover, if you also happen to be a newcomer to Florida your decision to move your primary residence to one of the least-taxed states in America will be the gift that keeps on giving.
For the stragglers among us—not to mention many would-be buyers who didn’t quite qualify for the first round of housing tax credits—Congress has just rolled back the clock by about six months to allow one last opportunity to take advantage of what has been an enormously popular and effective incentive. Judging by the number of homes sold since the tax credit first went into effect; this is one of the few economic stimulus measures that have truly found its way down to the grass roots level. We applaud Congress for not only renewing the credit in a landslide, bi-partisan vote, but also for broadening its benefits to include a substantially larger pool of potential move-up buyers. At the end of the day, every buyer who uses the credit to sweeten an already great deal moves the housing market one transaction closer to shoring-up the rest of the economy. Indeed, most economists are of the mind that until the housing market regains its footing, the overall economic recovery will simply stumble forward with precious little for anyone to cheer about.
Under the revised rules of the extended tax credit:
First time home buyers can now receive up to an $8,000 tax credit by entering into a binding contract on or before April 30, 2010; and closing by June 30, 2010.
Buyers who have lived in their residences for five years may now receive a credit of up to $6,500 (or, up to $3,250 for a married individual filing separately).
The tax credit is now available to individuals earning up to $125,000—or $250,000 for couples—on homes priced to $800,000
Congress extends the popular $8,000 tax credit for homebuyers.
New legislation passed through the United States Congress has extended and expanded the first-time homebuyer tax credit. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, the law also allows home sales occurring by June 30, 2010 to qualify, provided they are due to a binding sales contract on or before April 30, 2010.
The extended Act covers sales occurring after November 6, 2009, and establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns. The new law:
• Extends the deadline for purchasing and closing on a home
• Authorizes the credit for long-time homeowners buying a replacement primary
• Raises the income limitations for homeowners claiming the credit
The Worker, Homeownership, and Business Assistance Act of 2009 has also established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a primary residence after November 6, 2009 and on or before April 30, 2010.
Below are basic questions and answers regarding the extended $8,000 Homebuyer Tax Credit and the $6,500 move-up/repeat buyer credit. For more in-depth queries, we encourage you to consult a qualified tax advisor or professional. (more…)
A consumer survey released in April by a large nationwide real estate firm—combined with recent trends in local sales—helps explain why home buyers continue to flood into our market, anxious to buy; not at all deterred from doing so by having missed the April 30th deadline for the first time home buyer tax credit. Nearly two-thirds of the current home shoppers questioned in the survey said that the expiration of the tax credit will have little or no effect on their determination to move forward with an eventual housing purchase.
Homebuyers probably don’t see themselves this way, but as they step up to take advantage of the best housing values in more than a decade each becomes their own personal economic stimulus package, securing for themselves a fabulous long term investment even as they help rescue the economy from the mess it’s in. More likely, they see themselves as grand prize winners in the housing sweepstakes; smartly timing the market just as prices are bottoming, interest rates are at an all-time low and the first time homebuyer tax credit is on hand to add an extra dollop of icing to the cake. Moreover, if you also happen to be a newcomer to Florida your decision to move your primary residence to one of the least-taxed states in America will be the gift that keeps on giving.
