Existing-Home Sales Record Big Gains

Daily Real Estate News  |  November 23, 2009  

Driven by the home buyer tax credit, existing-home sales showed another big gain in October with a strong uptrend established over the past seven months, according to the NATIONAL ASSOCIATION OF REALTORS®. At the same time, inventories have continued to decline.

Existing-home sales—including single-family, townhomes, condominiums and co-ops—surged 10.1 percent to a seasonally adjusted annual rate 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.

read more: http://www.realtor.org/RMODaily.nsf/pages/News2009112301?OpenDocument

 

Obama Signs Homebuyer Tax Credit Extension

RISMEDIA, November 9, 2009—President Barack Obama has approved the first-time homebuyer tax credit extension which will extend the tax credit until April 30, 2010. 

The extension is part of a $24 billion economic stimulus bill that will extend the $8,000 tax credit for homebuyers who are purchasing their first home from the current November 30 deadline and expands the program to offer a credit of $6,500 to homeowners who have lived in their current home for at least five years and are seeking to relocate. 

Read more: http://rismedia.com/2009-11-08/obama-signs-homebuyer-tax-credit-extension/#ixzz0WNdViLTl

 

Congress extends homebuyer credit

By Inman News, Thursday, November 5, 2009.

President Obama is expected to sign a bill passed by Congress today extending and expanding the first-time homebuyer tax credit to homes under contract before May 1.

The credit, equal to 10 percent of a home’s purchase price, remains capped at $8,000 for first-time homebuyers, but income limits have been raised.

Congress also approved an expansion of the credit to allow homeowners who have been in a principal residence for at least five of the last eight years to claim a tax credit of up to $6,500 if they sell that home and buy another.

 

Senate Clears Homebuyer Tax Credit Extension; May Pass as Early as This Week

By Steve Cook and Brett Arends

RISMEDIA, November 5, 2009—After two weeks of delay, the Senate cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers. By an 85 to 2 roll call vote, the Senate voted to cut off debate on a package of measures that includes the homebuyer credit, making it virtually certain that the legislation will reach President Obama for his signature this week. 

Read more: http://rismedia.com/2009-11-04/senate-clears-homebuyer-tax-credit-extension-may-pass-as-early-as-this-week/#ixzz0Vyu9C6QC

 

NEW LISTING ALERT!

        

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Breaking News: Senate Plans to Extend and Expand Tax Credit

By Alan J. Heavens, Corey Boles, John D. McKinnon

RISMEDIA, October 30, 2009—(MCT/The Wall Street Journal)-The Senate has reached a compromise on extending and expanding the $8,000 tax credit for first-time home buyers, a boost the housing industry believes will help it pull out of its two-year-old downturn. 

While its passage remains uncertain, the agreement would extend the existing credit for first-time homebuyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners, Senate aides said. The reduced credit would be available to all homebuyers who have been in their current residence for a consecutive five-year period in the past eight years. Lawmakers in Washington also raised the qualifying income limits to $125,000 for single taxpayers and $250,000 for joint taxpayers, from the current $75,000 and $150,000, housing-industry sources said. Under the Senate compromise, buyers must have sales agreements in hand by April 30, but they will have until June 30 to go to settlement, said the sources. The measure still faces votes in the full Senate and the House. 

Read more: http://rismedia.com/2009-10-29/breaking-news-senate-plans-to-extend-and-expand-tax-credit/#ixzz0VQpTrwMv

 

NOVEMBER “FREEZE”?

With speculations of a possible extension on the $8000.00 tax credit, November maybe a bit “frozen” month of buyers making offers until they “wait & see” if the credit will be extended. We will probably know by late November or sometime in December.
 
I have mixed feelings regarding the tax credit. First of all, I believe it has definitely helped the real estate market and should be extended and also expanded to all buyers. Secondly, in order for our economy to improve, the housing market must continue its track of bouncing back. So much relies on the housing market. It creates jobs, restaurants get busier, and retailers sell more of their inventory and so on.
 
However, I do not feel that the tax credit should be the only reason a buyer should be purchasing a home. Regardless of the tax credit, there are other factors that should be considered in purchasing a home: historically low interest rates, excellent inventory & prices, job relocation, the need for a smaller or bigger home etc…
 
If you are considering buying or selling, call me directly.I can discuss with you the reasons why now is or is not the time for you to buy or sell.

 

NAR PUSHES TO EXTEND & EXPAND TAX CREDIT

There is a strong push for the National Associates of Realtors (NAR) to have congress extend & expand the $8000 tax credit. As I have stated before, this credit has helped the real estate market. I have been fortunate to work with many first time buyers that were able to get a great deal on a home, with an awesome interest rate, plus receiving this tax credit as well.

 As far as an investors market, it continues to be a frenzy. I have seen multi-family and single family homes as low as $70,000. This price range makes investing into real estate it a “no brainer”.

If you are still trying to take advantage of the tax credit, you have until on or before November 30, 2009 to close. Or if you are looking to buy a potential money making investment property, call me. We have two convenient offices located at 70 Case Avenue in Seekonk, MA & 1006 Reservoir Avenue Cranston, RI.

 

SUMMER HEATING UP!

Well here it is – the summer real estate market. Weather wise it seems like fall, real estate wise, the market continues to heat up.
 
REO (Bank Own) properties are being listed very aggressively creating multiple offers, which are driving the asking price over by thousands of dollars.
 
Short Sales continue to be a challenge. Banks are taking too long to respond. Ultimately this frustrates a buyer to the point where they walk away from the deal. This short sale then becomes REO and the bank usually gets much less than what they could have gotten if they accepted the short sale – go figure.
 
As the summer heats up, have faith it will, a HOT buyers market will continue.

 

BUYERS COME OUT SWINGING!

Ok. The gloves are off and the Buyers have come out swinging – or in real estate terms – BUYING! Remember the days of highest and best, multiple offers, calling to set up a showing for a home that has been on the market for less than a week only to hear its already been sold? Those days are coming back.
 
Bank owned homes that were purchased by investors for pennies on a dollar are popping back on the market at below fair market value in “move in condition”.
 
Hats off to the Buyers, they know a good deal when they see one and are not letting this historical time of purchasing a home pass them by.

Any questions or comments? Contact me directly (508) 399-5272 Shane@HurricaneShane.com.