Realty Times of December 31, 2009
Mortgage Modification Video Valuable for Distressed Homeowners
by Broderick Perkins
A new video helps struggling homeowners navigate the federal mortgage modification program.
Offered for free to anyone by mortgage insurer and risk management company PMI Mortgage Insurance Co., the two-part video "Navigating the Home Affordable Modification Program" is a helpful adjunct to existing information about the federal Home Affordable Modification Program (HAMP) on the MakingHomeAffordable.gov Web site.
A mortgage modification occurs when the lender reworks the terms of your existing home loan, typically to lower payments and make the home more affordable for you. Lower payments can result from a lower interest rate, extended loan term, reduced principal or any combination of those approaches.
A mortgage modification is not a refinanced mortgage, which replaces the old mortgage with a new loan.
Part 1 of the "Navigating HAMP" video provides basic orientation for homeowners who may not have heard of HAMP, it covers the objectives of the program, and helps you determine if you qualify for a HAMP modification.
Under HAMP, you may qualify for a mortgage modification if your home is your primary residence; your first mortgage's balance is no more than $729,750; you face financial hardship that is affecting or will affect your ability to make mortgage payments; you signed for your current mortgage on or before January 1, 2009 and your payment on your first mortgage (including principal, interest, taxes, insurance and homeowner's association dues, if applicable) is more than 31 percent of your current gross income.
"Distressed homeowners who are facing the prospect of losing their home need to know that help is available for those truly interested in saving their homes. This instructional video leverages the growing popularity of internet-based video to give homeowners an overview of how HAMP works and their important role in the process," said John Jelavich, head of PMI’s Homeownership Preservation Initiatives group.
Part 2 of the "Navigating HAMP" video uses examples to demonstrate how affordability is achieved with a loan modification, it walks homeowners through the steps necessary to obtain a modification and discusses the information homeowners need to provide their mortgage servicer, including:
• Pay stubs or other verification of your monthly before-tax (gross) income.
• Your most recent income tax return.
• Statements for savings and other assets.
• Your first and second mortgage (if any), home equity loan or line of credit statements
• Account balances and minimum monthly payments due on all of your credit cards, car loans, student loans and other debts.
• A completed Hardship Affidavit describing any circumstances that caused your income to be reduced or expenses to be increased.
"The jury is still out on the success of the HAMP program. Progress has been slow in materializing but may finally be gaining steam as many of the trial loan modifications are finally beginning to transition into permanent ones," said Nancy Osborne, chief operating officer of Erate.com, a Santa Clara, CA-based financial information publisher and interest rate tracker.
Osborne added, "A large part of the problem has been getting the loan servicers ramped up with the staff and technology to handle the massive wave of modifications, something they had no real experience with previously."
To learn more about loan modifications visit "Mortgage Modification Madness", "Mortgage Modification Updates" and watch "Navigating the Home Affordable Modification Program."
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Copyright © 2009 Realty Times. All Rights Reserved.
Thursday, December 31, 2009
Wednesday, December 30, 2009
NEW SHORT SALE RULES
Realth Times of December 30, 2009
Investor Report: HUD Guidance by Kenneth R. Harney
Investors and others who expect to use FHA financing in connection with a short sale better check out the latest guidance issued by HUD last week.
A letter to lenders by FHA commissioner David Stevens essentially spells out the agency's revised policies on short sales.
Here's a quick overview:
Number one: Applicants for new FHA insured mortgages will be turned down - effective immediately - if they participated in a short sale of their principal residence, simply to “take advantage of declining market conditions,” or to “purchase a similar or superior property at a reduced price within a reasonable commuting distance” of the house they disposed of via a short sale.
Since FHA apparently believes that some homeowners may be renting out their current houses in order to buy others through short sales, Stevens's letter cautions lenders to make certain such applicants qualify under the agency's strict rules relating to rental income.
Those rules generally limit consideration of rental income from a vacated residence as part of the qualifying income to purchase another property.
In its guidance, FHA says lenders “may consider” rental income, minus an appropriate vacancy factor, when the applicant's loan to value ratio or LTV on the vacated property is 75 percent or less.
FHA rules also permit consideration of rental income when the borrower is relocating because of an employment change and has a one year signed lease agreement.
What FHA is saying with its new guidelines for lenders is this: We don't want to finance a bumper crop of rental investment houses where current owner-occupants spot a great deal in their local market that's listed as a discount-price short sale.
Even if that purchaser fully intends to occupy the replacement house as a principal residence, FHA says in effect: We want to play it safe on qualifying that buyer in terms of income sources. So we're going to be really strict when part of the applicant's qualifying income comes from renting out his or her former home.
Stevens added that people who dispose of their houses though short sales can qualify for FHA financing on another house only if they are current in payments on the mortgage for the previous year as well as on all installment debts.
On the other hand, short sellers who are in default on their mortgage - and used the short sale as an alternative to a foreclosure by their lender - generally will not be eligible for an FHA-insured home purchase loan for three years following the close of the short sale.
Copyright © 2009 Realty Times. All Rights Reserved.
Investor Report: HUD Guidance by Kenneth R. Harney
Investors and others who expect to use FHA financing in connection with a short sale better check out the latest guidance issued by HUD last week.
A letter to lenders by FHA commissioner David Stevens essentially spells out the agency's revised policies on short sales.
Here's a quick overview:
Number one: Applicants for new FHA insured mortgages will be turned down - effective immediately - if they participated in a short sale of their principal residence, simply to “take advantage of declining market conditions,” or to “purchase a similar or superior property at a reduced price within a reasonable commuting distance” of the house they disposed of via a short sale.
Since FHA apparently believes that some homeowners may be renting out their current houses in order to buy others through short sales, Stevens's letter cautions lenders to make certain such applicants qualify under the agency's strict rules relating to rental income.
Those rules generally limit consideration of rental income from a vacated residence as part of the qualifying income to purchase another property.
In its guidance, FHA says lenders “may consider” rental income, minus an appropriate vacancy factor, when the applicant's loan to value ratio or LTV on the vacated property is 75 percent or less.
FHA rules also permit consideration of rental income when the borrower is relocating because of an employment change and has a one year signed lease agreement.
What FHA is saying with its new guidelines for lenders is this: We don't want to finance a bumper crop of rental investment houses where current owner-occupants spot a great deal in their local market that's listed as a discount-price short sale.
Even if that purchaser fully intends to occupy the replacement house as a principal residence, FHA says in effect: We want to play it safe on qualifying that buyer in terms of income sources. So we're going to be really strict when part of the applicant's qualifying income comes from renting out his or her former home.
Stevens added that people who dispose of their houses though short sales can qualify for FHA financing on another house only if they are current in payments on the mortgage for the previous year as well as on all installment debts.
On the other hand, short sellers who are in default on their mortgage - and used the short sale as an alternative to a foreclosure by their lender - generally will not be eligible for an FHA-insured home purchase loan for three years following the close of the short sale.
Copyright © 2009 Realty Times. All Rights Reserved.
Thursday, December 24, 2009
Real Estate Resolutions 2010
Realty Times of December 24, 2009
Real Estate Resolutions 2010 by Broderick Perkins
Sure you can lose weight, get in shape, launch a business or find a new job.
But haven't you also procrastinated long enough about buying a home?
How long has it been since you upgraded your home with a new roof, spiffed up landscaping or pulled some other home improvement?
And that post-World War II ranch home of yours could certainly use a few energy efficient do-overs.
Look to low mortgage interest rates, bargain home prices and other favorable market conditions to give you the resolve to consider home sweet home in your list of must-dos next year.
• Join the nearly 18 percent of Americans who say they've resolved to become a first-time homebuyer in 2010, according to a new Move.com survey. That's both a smart move and a timely one. Mortgage rates are at record lows, prices are down and the $8,000 first-time home buyer tax credit has been extended until April 30, 2010. It's also been expanded to include a $6,500 tax credit to move-up buyers.
• More than 15 percent of those who responded to the survey said saving money to purchase a new home is their top real estate resolution for the New Year. Resolve with them to learn the best way to budget, plan ahead and save money.
• Nearly 40 percent say No. 1 on their list of resolutions is starting a home improvement. Cheap home equity money should help them not only start, but also complete the job. Calabasas, CA-based Informa Research Services found home equity lines of credit (HELOCs) for $50,000, with an 80 percent loan-to-value note, were available in early December at an average variable rate of 4.98 percent. Some rates were as low as 2.74 percent.
• The Move.com survey also found 9.1 percent most wanted to fix their credit so they can buy a home next year. To get started all you need to do is take a look at your next credit card statement for a toll free number directing you to counseling help. That's part of the new, but little-known mandated disclosure provisions in the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act).
• Nearly 16 percent are wisely considering buying an investment property as their top resolution. The couldn't have picked a better time in the last half decade. Another Move.com survey recently found more than 12 percent of homebuyers today plan to purchase a home as an investment, compared to less than half, only 5.6 percent, just seven months ago, thanks to more attractive investment conditions.
"If you anticipate inflationary conditions in the future, investment property could be a good bet to hedge against it," said Nancy Osborne, chief operating officer of Erate.com, a Santa Clara, CA-based financial information publisher and interest rate tracker.
--------------------------------------------------------------------------------
Copyright © 2009 Realty Times. All Rights Reserved.
Real Estate Resolutions 2010 by Broderick Perkins
Sure you can lose weight, get in shape, launch a business or find a new job.
But haven't you also procrastinated long enough about buying a home?
How long has it been since you upgraded your home with a new roof, spiffed up landscaping or pulled some other home improvement?
And that post-World War II ranch home of yours could certainly use a few energy efficient do-overs.
Look to low mortgage interest rates, bargain home prices and other favorable market conditions to give you the resolve to consider home sweet home in your list of must-dos next year.
• Join the nearly 18 percent of Americans who say they've resolved to become a first-time homebuyer in 2010, according to a new Move.com survey. That's both a smart move and a timely one. Mortgage rates are at record lows, prices are down and the $8,000 first-time home buyer tax credit has been extended until April 30, 2010. It's also been expanded to include a $6,500 tax credit to move-up buyers.
• More than 15 percent of those who responded to the survey said saving money to purchase a new home is their top real estate resolution for the New Year. Resolve with them to learn the best way to budget, plan ahead and save money.
• Nearly 40 percent say No. 1 on their list of resolutions is starting a home improvement. Cheap home equity money should help them not only start, but also complete the job. Calabasas, CA-based Informa Research Services found home equity lines of credit (HELOCs) for $50,000, with an 80 percent loan-to-value note, were available in early December at an average variable rate of 4.98 percent. Some rates were as low as 2.74 percent.
• The Move.com survey also found 9.1 percent most wanted to fix their credit so they can buy a home next year. To get started all you need to do is take a look at your next credit card statement for a toll free number directing you to counseling help. That's part of the new, but little-known mandated disclosure provisions in the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act).
• Nearly 16 percent are wisely considering buying an investment property as their top resolution. The couldn't have picked a better time in the last half decade. Another Move.com survey recently found more than 12 percent of homebuyers today plan to purchase a home as an investment, compared to less than half, only 5.6 percent, just seven months ago, thanks to more attractive investment conditions.
"If you anticipate inflationary conditions in the future, investment property could be a good bet to hedge against it," said Nancy Osborne, chief operating officer of Erate.com, a Santa Clara, CA-based financial information publisher and interest rate tracker.
--------------------------------------------------------------------------------
Copyright © 2009 Realty Times. All Rights Reserved.
Tuesday, December 22, 2009
Move-Down Buyers Can Be Eligible For Tax Credit Too
From Realty Times of December 22, 2009
Move-Down Buyers Can Be Eligible For Tax Credit Too by Bob Hunt
Move up, move down, move sideways; it just doesn't matter. Whichever direction you move, financially, you may still qualify for the new tax credit available to current homeowners. It is unfortunate that the credit has too often been characterized as a credit for "move-up" homeowners. The phrase carries the implication that the new home must cost more than the sale price of the former one. Indeed, even the November 6 White House Press Release said that the credit would be available to qualified homeowners who "wish to step up to a new home." Same implication.
So, it is worth emphasizing that the credit is equally available to homeowners who are moving down, cost-wise.
The move-down homebuyer is not an unusual phenomenon. For years retirees have been known to move from a larger home to one that is smaller and often less expensive. Moreover, it is reasonable to think that current economic conditions may lead to even more move-down buyers. Just as thousands of families have found it necessary or desirable to downsize with respect to their cars and their general lifestyle, so it may be when it comes to considering the costs of owning and maintaining a larger house than they really need.
The same requirements apply to both move-down and move-up buyers.
First of all, the previous home must have been occupied as the buyer's principal residence for at least five consecutive years out of the past eight years. Two examples: (1) Suppose that during the past eight years you occupied the property for three years, then rented it out for two years (perhaps because of a job transfer or temporary assignment), and then occupied it again for three years up until now. Even though you had occupied the property as your principal residence for six of the past eight years, you would not be eligible because you had not occupied it for five consecutive years. (I'm not saying this makes sense; I'm just reporting on the requirements.) (2) Suppose you bought a home eight (or more) years ago, you occupied it as a principal residence until two years ago when you sold it. Would you qualify? Yes, because you had occupied it as a principal residence for at least five consecutive years of the past eight.
There are important issues of timing as well. You must have purchased (that is closed on) the replacement home sometime after 11/6/2009 and before 4/30/2010. With one exception: the new home will also qualify if you had entered into a binding contract no later than April 30, 2010 and you closed no later than June 30, 2010.
The time the previous home sold doesn't matter. Indeed, it doesn't even have to be sold. You might, for example, keep it as a rental.
The tax credit is for 10% of the purchase price up to a maximum credit of $6,500 for joint filers and $3,250 for those filing separately. There is a full credit for singles whose income does not exceed $125,000 and for couples whose income is no more than $225,000. A phase-out applies to higher incomes up to $145,000 and $245,000 respectively.
The cost of the new home may not exceed $800,000.
The new home must be used as a principal residence for a three year period subsequent to closing, or else the credit must be repaid.
This program won't help everyone, of course; but it's pretty nice for those to whom it applies.
--------------------------------------------------------------------------------
Copyright © 2009 Realty Times. All Rights Reserved.
Move-Down Buyers Can Be Eligible For Tax Credit Too by Bob Hunt
Move up, move down, move sideways; it just doesn't matter. Whichever direction you move, financially, you may still qualify for the new tax credit available to current homeowners. It is unfortunate that the credit has too often been characterized as a credit for "move-up" homeowners. The phrase carries the implication that the new home must cost more than the sale price of the former one. Indeed, even the November 6 White House Press Release said that the credit would be available to qualified homeowners who "wish to step up to a new home." Same implication.
So, it is worth emphasizing that the credit is equally available to homeowners who are moving down, cost-wise.
The move-down homebuyer is not an unusual phenomenon. For years retirees have been known to move from a larger home to one that is smaller and often less expensive. Moreover, it is reasonable to think that current economic conditions may lead to even more move-down buyers. Just as thousands of families have found it necessary or desirable to downsize with respect to their cars and their general lifestyle, so it may be when it comes to considering the costs of owning and maintaining a larger house than they really need.
The same requirements apply to both move-down and move-up buyers.
First of all, the previous home must have been occupied as the buyer's principal residence for at least five consecutive years out of the past eight years. Two examples: (1) Suppose that during the past eight years you occupied the property for three years, then rented it out for two years (perhaps because of a job transfer or temporary assignment), and then occupied it again for three years up until now. Even though you had occupied the property as your principal residence for six of the past eight years, you would not be eligible because you had not occupied it for five consecutive years. (I'm not saying this makes sense; I'm just reporting on the requirements.) (2) Suppose you bought a home eight (or more) years ago, you occupied it as a principal residence until two years ago when you sold it. Would you qualify? Yes, because you had occupied it as a principal residence for at least five consecutive years of the past eight.
There are important issues of timing as well. You must have purchased (that is closed on) the replacement home sometime after 11/6/2009 and before 4/30/2010. With one exception: the new home will also qualify if you had entered into a binding contract no later than April 30, 2010 and you closed no later than June 30, 2010.
The time the previous home sold doesn't matter. Indeed, it doesn't even have to be sold. You might, for example, keep it as a rental.
The tax credit is for 10% of the purchase price up to a maximum credit of $6,500 for joint filers and $3,250 for those filing separately. There is a full credit for singles whose income does not exceed $125,000 and for couples whose income is no more than $225,000. A phase-out applies to higher incomes up to $145,000 and $245,000 respectively.
The cost of the new home may not exceed $800,000.
The new home must be used as a principal residence for a three year period subsequent to closing, or else the credit must be repaid.
This program won't help everyone, of course; but it's pretty nice for those to whom it applies.
--------------------------------------------------------------------------------
Copyright © 2009 Realty Times. All Rights Reserved.
Monday, December 14, 2009
Your Credit Score
From Realty Times of December 14, 2009
2010 and Rebuilding or Protecting Your Credit Score by M. Anthony Carr
If the latest numbers on credit card delinquency is any indicator, U.S. consumers are starting to get a handle on their credit card debt. In the 3rd quarter of this year, according to data from TransUnion, a credit reporting agency, the delinquency rate dropped to 1.1 percent.
The Associated press reports: “The decline is significant because of its timing. Delinquency rates usually rise in the third quarter from the prior period as people spend on summer vacations and back-to-school shopping,” said Clifton O'Neal, a TransUnion spokesman.” How you handle your debt affects your credit score and rating, which is what affects your ability to get a loan to purchase a home. The good thing about credit scores is that they are merely a snapshot of your credit at a given time. Missed payments, high credit vs. limits, too much credit, et. al., can all be corrected and cleaned up and your credit score return to a new high level.
Tim McLaughlin, senior vice president of Weichert Financial Services, answers the question – what dings on your credit affect your score and why it seems all the good loans (low rates, low/zero point, and even product availability), seem to favor those with good credit.
The Fair Isaac Corporation maintains the most popularly used score (referred to as the FICO score) and it ranges from 300 to 850. They also have a great resource on how to understand the score: What I like about McLaughlin’s information from his Market Monitor newsletter is that he provides the number of points your score will drop or increase with these items in place or cleaned up.
“There are five major ‘dings’ that impact your DCS (Decision Credit Score, or FICO score) the most, some obvious, some not so obvious: Maxed out credit cards: Doesn’t seem like a big deal in the grand scheme of things, right? Oh, it is: a maxed out credit card can reduce your DCS anywhere from 10 to 45 points, according to Fair Isaacs, a hefty price to pay for accumulating debt.
30 Day late mortgage payment: In addition to the late fees, this occurrence adversely impacts your DCS by 60 to 110 points … a whopping impact for being late on your mortgage.
Debt settlement: Also known as debt arbitration or debt negotiation, it is an approach to debt reduction in which the debtor and creditor agree on a reduced balance that will be regarded as payment in full. The downside, a 45 to 125 point drop in your DCS.
Foreclosure: Unfortunately, an occurrence we are seeing far too often as of late. In addition to the event, it will reduce your DCS 85 to 160 points.
Bankruptcy: The event that would have the single biggest negative impact on your DCS, reducing your score 130 to 240 points; an almost irreparable event.”
FICO has its own web site dealing with the scoring prices and it’s a good starting place for those trying to repair their credit rating.
Here are the three credit reporting agencies that use the FICO score:
Equifax (www.equifax.com)
TransUnion (www.TransUnion.com)
Experian (www.Experian.com)
--------------------------------------------------------------------------------
Copyright © 2009 Realty Times. All Rights Reserved.
2010 and Rebuilding or Protecting Your Credit Score by M. Anthony Carr
If the latest numbers on credit card delinquency is any indicator, U.S. consumers are starting to get a handle on their credit card debt. In the 3rd quarter of this year, according to data from TransUnion, a credit reporting agency, the delinquency rate dropped to 1.1 percent.
The Associated press reports: “The decline is significant because of its timing. Delinquency rates usually rise in the third quarter from the prior period as people spend on summer vacations and back-to-school shopping,” said Clifton O'Neal, a TransUnion spokesman.” How you handle your debt affects your credit score and rating, which is what affects your ability to get a loan to purchase a home. The good thing about credit scores is that they are merely a snapshot of your credit at a given time. Missed payments, high credit vs. limits, too much credit, et. al., can all be corrected and cleaned up and your credit score return to a new high level.
Tim McLaughlin, senior vice president of Weichert Financial Services, answers the question – what dings on your credit affect your score and why it seems all the good loans (low rates, low/zero point, and even product availability), seem to favor those with good credit.
The Fair Isaac Corporation maintains the most popularly used score (referred to as the FICO score) and it ranges from 300 to 850. They also have a great resource on how to understand the score: What I like about McLaughlin’s information from his Market Monitor newsletter is that he provides the number of points your score will drop or increase with these items in place or cleaned up.
“There are five major ‘dings’ that impact your DCS (Decision Credit Score, or FICO score) the most, some obvious, some not so obvious: Maxed out credit cards: Doesn’t seem like a big deal in the grand scheme of things, right? Oh, it is: a maxed out credit card can reduce your DCS anywhere from 10 to 45 points, according to Fair Isaacs, a hefty price to pay for accumulating debt.
30 Day late mortgage payment: In addition to the late fees, this occurrence adversely impacts your DCS by 60 to 110 points … a whopping impact for being late on your mortgage.
Debt settlement: Also known as debt arbitration or debt negotiation, it is an approach to debt reduction in which the debtor and creditor agree on a reduced balance that will be regarded as payment in full. The downside, a 45 to 125 point drop in your DCS.
Foreclosure: Unfortunately, an occurrence we are seeing far too often as of late. In addition to the event, it will reduce your DCS 85 to 160 points.
Bankruptcy: The event that would have the single biggest negative impact on your DCS, reducing your score 130 to 240 points; an almost irreparable event.”
FICO has its own web site dealing with the scoring prices and it’s a good starting place for those trying to repair their credit rating.
Here are the three credit reporting agencies that use the FICO score:
Equifax (www.equifax.com)
TransUnion (www.TransUnion.com)
Experian (www.Experian.com)
--------------------------------------------------------------------------------
Copyright © 2009 Realty Times. All Rights Reserved.
Complete Tax Credit Details
Frequently Asked Questions About the Move-Up/Repeat Home Buyer Tax Credit brought to you by the National Association of Home Builders
Home Buyer Tax Credit
Should answer every question you can think of!
Home Buyer Tax Credit
Should answer every question you can think of!
Wednesday, December 2, 2009
NEW FHA LOAN LIMITS
FHA released the new loan limits starting January 1st 2010
Here in Maricopa County, we will see the max loan limit drop from $346,250 to $271,050 for SFR.
That is the same number as we used to have before HUD raised loan limits temporarily to allow for more folks to qualify back in 2008.
For a majority of the USA, the FHA loan limits will be …
1-Unit $271,050
2-Unit $347,000
3-Unit $419,400
4-Unit $521,250
For high cost areas, the limits will remain the same as previously set in 2008. They are as follows:
One-Unit $ 729,750
Two-Unit $ 934,200
Three-Unit $ 1,129,250
Four-Unit $ 1,403,400
In the future you can go to https://entp.hud.gov/idapp/html/hicostlook.cfm to find the limits whenever you wish.
The above info provided as a courtesy by:
Craig Bohall Your “Safe Harbor” Lender
ACADEMY MORTGAGE CORPORATION
480-344-3646 – office
480-374-6924 - e-fax
www.myazmp.com
craig@myazmp.com
Here in Maricopa County, we will see the max loan limit drop from $346,250 to $271,050 for SFR.
That is the same number as we used to have before HUD raised loan limits temporarily to allow for more folks to qualify back in 2008.
For a majority of the USA, the FHA loan limits will be …
1-Unit $271,050
2-Unit $347,000
3-Unit $419,400
4-Unit $521,250
For high cost areas, the limits will remain the same as previously set in 2008. They are as follows:
One-Unit $ 729,750
Two-Unit $ 934,200
Three-Unit $ 1,129,250
Four-Unit $ 1,403,400
In the future you can go to https://entp.hud.gov/idapp/html/hicostlook.cfm to find the limits whenever you wish.
The above info provided as a courtesy by:
Craig Bohall Your “Safe Harbor” Lender
ACADEMY MORTGAGE CORPORATION
480-344-3646 – office
480-374-6924 - e-fax
www.myazmp.com
craig@myazmp.com
Tuesday, December 1, 2009
Market Conditions
Realty Times of December 1, 2009
Market Conditions
Existing home sales have shown promising figures, as first-time buyers take advantage of the buyer tax credit and historically low interest rates.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – surged 10.1 percent to a seasonally adjusted annual rate1 of 6.10 million units in October from a downwardly revised pace of 5.54 million in September, and are 23.5 percent above the 4.94 million-unit level in October 2008. Sales activity is at the highest pace since February 2007 when it hit 6.55 million.
Lawrence Yun, NAR chief economist, was surprised at the size of the gain. "Many buyers have been rushing to beat the deadline for the first-time buyer tax credit that was scheduled to expire at the end of this month, and similarly robust sales may be occurring in November," he said. "With such a sale spike, a measurable decline should be anticipated in December and early next year before another surge in spring and early summer."
Regionally, existing-home sales in the Northeast rose 11.6 percent to an annual level of 1.06 million in October, and are 27.7 percent higher than October 2008. The median price in the Northeast was $235,400, down 2.6 percent from a year ago.
Existing-home sales in the Midwest surged 14.4 percent. The median price in the Midwest was $146,600, a gain of 1.1 percent from October 2008, the only region seeing a gain in median price.
In the South, existing-home sales rose 12.7 percent to an annual level of 2.30 million in October and are 25.7 percent higher than October 2008. The median price in the South was $151,100, down 6.3 percent from a year ago.
The smallest increase in existing-home sales was seen in the West, which increased just 1.6. However, this number is a healthy 12.0 percent above a year ago. Home prices are still down for the region.
--------------------------------------------------------------------------------
Source: NAR
--------------------------------------------------------------------------------
Copyright © 2009 Realty Times. All Rights Reserved.
Market Conditions
Existing home sales have shown promising figures, as first-time buyers take advantage of the buyer tax credit and historically low interest rates.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – surged 10.1 percent to a seasonally adjusted annual rate1 of 6.10 million units in October from a downwardly revised pace of 5.54 million in September, and are 23.5 percent above the 4.94 million-unit level in October 2008. Sales activity is at the highest pace since February 2007 when it hit 6.55 million.
Lawrence Yun, NAR chief economist, was surprised at the size of the gain. "Many buyers have been rushing to beat the deadline for the first-time buyer tax credit that was scheduled to expire at the end of this month, and similarly robust sales may be occurring in November," he said. "With such a sale spike, a measurable decline should be anticipated in December and early next year before another surge in spring and early summer."
Regionally, existing-home sales in the Northeast rose 11.6 percent to an annual level of 1.06 million in October, and are 27.7 percent higher than October 2008. The median price in the Northeast was $235,400, down 2.6 percent from a year ago.
Existing-home sales in the Midwest surged 14.4 percent. The median price in the Midwest was $146,600, a gain of 1.1 percent from October 2008, the only region seeing a gain in median price.
In the South, existing-home sales rose 12.7 percent to an annual level of 2.30 million in October and are 25.7 percent higher than October 2008. The median price in the South was $151,100, down 6.3 percent from a year ago.
The smallest increase in existing-home sales was seen in the West, which increased just 1.6. However, this number is a healthy 12.0 percent above a year ago. Home prices are still down for the region.
--------------------------------------------------------------------------------
Source: NAR
--------------------------------------------------------------------------------
Copyright © 2009 Realty Times. All Rights Reserved.
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