May Pending Home Sales Are UP 5.7 percent from May 2008- Nationally
Data On Regions Across the Country:
West: UP 2.2 percent
Northeast: UP 3.1 percent
South: DOWN 1.7 percent
Midwest: DOWN 1.3 percent
May Pending Home Sales Are UP 0.1 percent from April 2009-Nationally
This is the fourth consecutive month pending home sales are UP but actual existing home closings were only up 2 months and this may be due to delays in obtaining loans and because some buyers are having more difficulty obtaining loans because of new appraisal standards.
Wednesday, July 1, 2009
Sunday, June 28, 2009
10 Worst Real-Estate Markets for 2009
CNN Money.com
Sources: National Association of Realtors; Moody's Economy.com
The housing market hasn't bottomed out yet. For the third quarter, the closely-watched S&P Case-Shiller national home-price index fell 16.6%, and experts are predicting further declines. Of the top 100 markets, here are 10 with the worst forecasts.
1 of 10
1. Los Angeles
2008 median house price: $375,340
2009 projected change: -24.9%
2010 projected change: -5.1%
The median home price in the L.A.-Long Beach-Glendale metro area is projected to fall nearly 25% in 2009 - the biggest drop in the country.
2. Stockton, Calif.
2008 median house price: $248,050
2009 projected change: -24.7%
2010 projected change: -4.0%
One in every 94 homes received a foreclosure filing this November in this northern California market near Sacramento, according to RealtyTrac. Eight of the ten worst housing markets projected for 2009 are in California.
3. Riverside, Calif.
2008 median house price: $256,540
2009 projected change: -23.3%
2010 projected change: -4.8%A popular
4. Miami-Miami Beach
2008 median house price: $293,590
2009 projected change: -22.8%
2010 projected change: -6.4%Miami
5. Sacramento
State Capitol building in Sacramento
2008 median house price: $225,140
2009 projected change: -22.2%
2010 projected change: 2.3%
High jobless rates and low population growth are helping burst the capital city's inflated housing market. Prices are expected to fall another 22% in 2009, after tumbling 34% in 2008.
6. Santa Ana-Anaheim
2008 median house price: $532,810
2009 projected change: -22.0%
2010 projected change: -3.5%
Of the 100 biggest markets, this Orange County area, which includes Anaheim and Irvine, was the fifth most expensive place to live this year. But in 2009, prices are forecast to decline by $121,000.
7. Fresno
2008 median house price: $257,170
2009 projected change: -21.6%
2010 projected change: -3.3%
Fresno is located between Los Angeles and Sacramento, but it shared their housing woes. Prices in 2009 are expected to fall 44% from just two years ago.
8. San Diego
2008 median house price: $412,490
2009 projected change: -21.1%
2010 projected change: -2.9%
As the luxury condo boom continues to fizzles, median home prices in this southern California market are forecast to fall $87,000 to $326,000 in 2009.
9. Bakersfield, Calif.
2008 median house price: $227,270
2009 projected change: -20.9%
2010 projected change: -2.5%
This city north of Los Angeles had the ninth highest foreclosure rate in November, as one of the country's largest real estate bubbles continues to burst. Including Bakersfield, six of the ten worst foreclosure markets were in California.
10. Washington, D.C.
2008 median house price: $343,160
2009 projected change: -19.9%
2010 projected change: -5.7%
This market, which includes bordering Virginia towns Arlington and Alexandria, is cooling off from record highs. Forecasts call for median prices to slide 20% to $275,000 in 2009.
Sources: National Association of Realtors; Moody's Economy.com
The housing market hasn't bottomed out yet. For the third quarter, the closely-watched S&P Case-Shiller national home-price index fell 16.6%, and experts are predicting further declines. Of the top 100 markets, here are 10 with the worst forecasts.
1 of 10
1. Los Angeles
2008 median house price: $375,340
2009 projected change: -24.9%
2010 projected change: -5.1%
The median home price in the L.A.-Long Beach-Glendale metro area is projected to fall nearly 25% in 2009 - the biggest drop in the country.
2. Stockton, Calif.
2008 median house price: $248,050
2009 projected change: -24.7%
2010 projected change: -4.0%
One in every 94 homes received a foreclosure filing this November in this northern California market near Sacramento, according to RealtyTrac. Eight of the ten worst housing markets projected for 2009 are in California.
3. Riverside, Calif.
2008 median house price: $256,540
2009 projected change: -23.3%
2010 projected change: -4.8%A popular
4. Miami-Miami Beach
2008 median house price: $293,590
2009 projected change: -22.8%
2010 projected change: -6.4%Miami
5. Sacramento
State Capitol building in Sacramento
2008 median house price: $225,140
2009 projected change: -22.2%
2010 projected change: 2.3%
High jobless rates and low population growth are helping burst the capital city's inflated housing market. Prices are expected to fall another 22% in 2009, after tumbling 34% in 2008.
6. Santa Ana-Anaheim
2008 median house price: $532,810
2009 projected change: -22.0%
2010 projected change: -3.5%
Of the 100 biggest markets, this Orange County area, which includes Anaheim and Irvine, was the fifth most expensive place to live this year. But in 2009, prices are forecast to decline by $121,000.
7. Fresno
2008 median house price: $257,170
2009 projected change: -21.6%
2010 projected change: -3.3%
Fresno is located between Los Angeles and Sacramento, but it shared their housing woes. Prices in 2009 are expected to fall 44% from just two years ago.
8. San Diego
2008 median house price: $412,490
2009 projected change: -21.1%
2010 projected change: -2.9%
As the luxury condo boom continues to fizzles, median home prices in this southern California market are forecast to fall $87,000 to $326,000 in 2009.
9. Bakersfield, Calif.
2008 median house price: $227,270
2009 projected change: -20.9%
2010 projected change: -2.5%
This city north of Los Angeles had the ninth highest foreclosure rate in November, as one of the country's largest real estate bubbles continues to burst. Including Bakersfield, six of the ten worst foreclosure markets were in California.
10. Washington, D.C.
2008 median house price: $343,160
2009 projected change: -19.9%
2010 projected change: -5.7%
This market, which includes bordering Virginia towns Arlington and Alexandria, is cooling off from record highs. Forecasts call for median prices to slide 20% to $275,000 in 2009.
Friday, June 26, 2009
Obama Mortgage Refinancing Program May Expand
Obama Mortgage Refinancing Program May Expand, Lockhart Says
By Dawn Kopecki and Jody Shenn
June 19 (AP) -- President Barack Obama’s program to help more homeowners refinance may be expanded to include borrowers who owe more than 105 percent of their homes’ values, Federal Housing Finance Agency Director James Lockhart said.
The Obama administration is considering allowing Fannie Mae and Freddie Mac to refinance loans with current loan-to-value ratios of 125 percent or higher, Lockhart said at a National Association of Real Estate Editors Association conference in Washington yesterday.
The Home Affordable refinancing program, announced Feb. 18, is part of the U.S. government’s efforts to stem soaring foreclosures and bolster consumer spending. The 125 percent level on loan-to-values would preserve the ability of Fannie Mae and Freddie Mac to package and sell the debt into so-called real estate mortgage investment conduits, he said. While 125 percent loan-to-value ratio is on the table, Lockhart said “it’s not necessarily the number we’re going to end up with.” "
The program has been “seeing a slowdown” as mortgage rates increase, he said. The average rate on a typical 30-year fixed loan was 5.38 percent this week ended yesterday, according to McLean Virginia-based Freddie Mac. The rate is up from a record low of 4.78 percent at the end of April.
Under the program, borrowers with loans already owned or guaranteed by Washington-based Fannie Mae or Freddie Mac who have loan-to-value ratios of 80 percent to 105 percent and aren’t delinquent can refinance without buying mortgage insurance, or paying for more insurance than they already have.
Dow Jones and Bankrate.com reported the comments
By Dawn Kopecki and Jody Shenn
June 19 (AP) -- President Barack Obama’s program to help more homeowners refinance may be expanded to include borrowers who owe more than 105 percent of their homes’ values, Federal Housing Finance Agency Director James Lockhart said.
The Obama administration is considering allowing Fannie Mae and Freddie Mac to refinance loans with current loan-to-value ratios of 125 percent or higher, Lockhart said at a National Association of Real Estate Editors Association conference in Washington yesterday.
The Home Affordable refinancing program, announced Feb. 18, is part of the U.S. government’s efforts to stem soaring foreclosures and bolster consumer spending. The 125 percent level on loan-to-values would preserve the ability of Fannie Mae and Freddie Mac to package and sell the debt into so-called real estate mortgage investment conduits, he said. While 125 percent loan-to-value ratio is on the table, Lockhart said “it’s not necessarily the number we’re going to end up with.” "
The program has been “seeing a slowdown” as mortgage rates increase, he said. The average rate on a typical 30-year fixed loan was 5.38 percent this week ended yesterday, according to McLean Virginia-based Freddie Mac. The rate is up from a record low of 4.78 percent at the end of April.
Under the program, borrowers with loans already owned or guaranteed by Washington-based Fannie Mae or Freddie Mac who have loan-to-value ratios of 80 percent to 105 percent and aren’t delinquent can refinance without buying mortgage insurance, or paying for more insurance than they already have.
Dow Jones and Bankrate.com reported the comments
Monday, June 22, 2009
"Tax Credit For Home Purchases Could Rise"
Hello bloggers! I have been speaking for months about lifting the limits of the tax credit so that ALL BUYERS could receive a credit. I also feel that a cap gains exemption might be another avenue to consider since the government needs tax money with all the new spending but they will not be receiving much from cap gains for the next few years. Here's the article....
By Stephanie Armour, USA TODAY
Lawmakers and businesses are calling for expansion of a tax credit for first-time home buyers that has helped spark home sales in an otherwise dismal real estate market. With the tax credit scheduled to expire in fall, some business groups say the amount of the credit, now capped at $8,000, should be raised to $15,000 and applied to anyone who buys a home.
First-time buyers make up a hefty 40% of home purchases, according to the National Association of Realtors (NAR), which is about 5 percentage points higher than the historical average. The credit, introduced in July 2008, was expanded in February as part of the economic stimulus package. The proposals may face headwinds amid growing public criticism of government spending to rescue the economy and the widening budget deficit.
Some economists say a tax benefit is vital to spur home buying and help stabilize prices.
"I'm fairly confident that (Congress) will extend the tax credit, because it is so important that housing come back," says Bernard Baumohl, an economist at the Economic Outlook Group. "But raising the tax credit will be difficult because it reduces taxes even more."
The White House had no immediate comment Sunday.
Current proposals:
•A Senate bill to expand the tax credit to $15,000 for any home buyer regardless of income was introduced this month by Sen. Johnny Isakson, R-Ga. It is co-sponsored by Senate Banking Committee Chairman Chris Dodd, D-Conn.
"It would go a long way toward inducing trade-up buyers into the market," says Lawrence Yun, chief economist at the NAR.
•A House bill to keep the $8,000 credit in place until June 2010 and expand it to all home buyers was introduced last month by Rep. Kenny Marchant, R-Texas. It also would provide a $3,000 credit to homeowners who refinance.
•Another bill in the House, introduced by Rep. Eddie Bernice Johnson, D-Texas, would extend the credit to all home buyers through 2010.
The Business Roundtable, a consortium of CEOs from large companies, urged Congress this month to expand the tax credit to $15,000 and make all home buyers eligible.
"The issue is how do we stimulate the move-up market, and that's essential for the economy," says Richard Smith, CEO of Realogy, the parent company of Century 21, Coldwell Banker, Sotheby's International Realty and ERA.
"I think it's going to be a bipartisan effort," Smith says. "The issue is how to pay for it."
The current tax credit does not apply to singles earning more than $95,000 a year and couples who earn more than $170,000. Some business leaders want the income caps eliminated.
Buyers do not have to repay the tax credit if they occupy the home for three years or more.
"A lot of people are taking advantage of it," says David Thomas, a Realtor in Washington, D.C., who adds that expanding the credit would boost the market. "That would be a fantastic idea, to enhance and expand the incentives
By Stephanie Armour, USA TODAY
Lawmakers and businesses are calling for expansion of a tax credit for first-time home buyers that has helped spark home sales in an otherwise dismal real estate market. With the tax credit scheduled to expire in fall, some business groups say the amount of the credit, now capped at $8,000, should be raised to $15,000 and applied to anyone who buys a home.
First-time buyers make up a hefty 40% of home purchases, according to the National Association of Realtors (NAR), which is about 5 percentage points higher than the historical average. The credit, introduced in July 2008, was expanded in February as part of the economic stimulus package. The proposals may face headwinds amid growing public criticism of government spending to rescue the economy and the widening budget deficit.
Some economists say a tax benefit is vital to spur home buying and help stabilize prices.
"I'm fairly confident that (Congress) will extend the tax credit, because it is so important that housing come back," says Bernard Baumohl, an economist at the Economic Outlook Group. "But raising the tax credit will be difficult because it reduces taxes even more."
The White House had no immediate comment Sunday.
Current proposals:
•A Senate bill to expand the tax credit to $15,000 for any home buyer regardless of income was introduced this month by Sen. Johnny Isakson, R-Ga. It is co-sponsored by Senate Banking Committee Chairman Chris Dodd, D-Conn.
"It would go a long way toward inducing trade-up buyers into the market," says Lawrence Yun, chief economist at the NAR.
•A House bill to keep the $8,000 credit in place until June 2010 and expand it to all home buyers was introduced last month by Rep. Kenny Marchant, R-Texas. It also would provide a $3,000 credit to homeowners who refinance.
•Another bill in the House, introduced by Rep. Eddie Bernice Johnson, D-Texas, would extend the credit to all home buyers through 2010.
The Business Roundtable, a consortium of CEOs from large companies, urged Congress this month to expand the tax credit to $15,000 and make all home buyers eligible.
"The issue is how do we stimulate the move-up market, and that's essential for the economy," says Richard Smith, CEO of Realogy, the parent company of Century 21, Coldwell Banker, Sotheby's International Realty and ERA.
"I think it's going to be a bipartisan effort," Smith says. "The issue is how to pay for it."
The current tax credit does not apply to singles earning more than $95,000 a year and couples who earn more than $170,000. Some business leaders want the income caps eliminated.
Buyers do not have to repay the tax credit if they occupy the home for three years or more.
"A lot of people are taking advantage of it," says David Thomas, a Realtor in Washington, D.C., who adds that expanding the credit would boost the market. "That would be a fantastic idea, to enhance and expand the incentives
Wednesday, June 17, 2009
FINALLY THE WORD IS GETTING OUT THERE- THE HIGH-END NEEDS HELP!
For about 6 months now I have used just about every opportunity on National Television to voice my concern that giving incentives just to the low-end and first-time home buyers would not be enough to help housing. It is time we give incentives to ALL BUYERS. We are now seeing more problems in higher-end areas due to high lending requirements such as: high down payments & high mortgage rates, and to the perception that high-end areas will still decline.
When sub-prime loans disappeared, homes in low-end areas dropped drastically but low rates, FHA loans requiring a 3.5 percent down payment and a first-time home buyer credit DRAMATICALLY INCREASED DEMAND. We do not have the same help for high-end areas thus far and if something is not done SOON, I agree with Jody Shenn's Bloomberg article, the suffering will continue.
Here is that article.......
Millionaire Homes’ May Lose Value Until 2012-
By Jody Shenn, June 16, BLOOMBERG
Prices for the most expensive U.S. homes may not reach bottom for another few years, according to JPMorgan Chase & Co. analysts. The CHART OF THE DAY shows the supply of unsold homes by price in California, data that the mortgage-bond analysts including John Sim and Matthew Jozoff used in a June 12 report to illustrate the weakening market for the most-expensive residential properties. The supply of homes priced $750,000 to $1 million held steady while the supply of more expensive properties increased. “Tighter lending standards and the lack of cheap financing for these borrowers continue to be key issues,” the New York- based analysts wrote, referring to “jumbo” mortgages. That’s after so-called interest-only and option adjustable-rate loans were a “major driver” of soaring values, they said.
The government’s moves to aid the housing market include the Federal Reserve’s mortgage-bond purchases to drive down interest rates; President Barack Obama’s “Home Affordable” loan modification and refinancing programs; and new tax credits for some first-time buyers. None of the U.S. initiatives “directly focused on helping the sales of these so-called millionaire homes,” the analysts wrote. “Currently, we have national home prices bottoming in 2011,” they said. “However, prices for more expensive homes may not bottom out until 2012, and ultimately result in peak-to- trough declines in excess of 60 percent (compared to 40 percent nationally).”
“California is probably worse than other states, but higher-priced homes in general are going to be a problem,” Sim said in a telephone interview today. The state’s median sales price for existing single-family homes fell 37 percent in April from a year earlier, to $256,700, according to California’s Association of Realtors. Nationwide, the price fell 15 percent to $169,800, according to the National Association of Realtors.
When sub-prime loans disappeared, homes in low-end areas dropped drastically but low rates, FHA loans requiring a 3.5 percent down payment and a first-time home buyer credit DRAMATICALLY INCREASED DEMAND. We do not have the same help for high-end areas thus far and if something is not done SOON, I agree with Jody Shenn's Bloomberg article, the suffering will continue.
Here is that article.......
Millionaire Homes’ May Lose Value Until 2012-
By Jody Shenn, June 16, BLOOMBERG
Prices for the most expensive U.S. homes may not reach bottom for another few years, according to JPMorgan Chase & Co. analysts. The CHART OF THE DAY shows the supply of unsold homes by price in California, data that the mortgage-bond analysts including John Sim and Matthew Jozoff used in a June 12 report to illustrate the weakening market for the most-expensive residential properties. The supply of homes priced $750,000 to $1 million held steady while the supply of more expensive properties increased. “Tighter lending standards and the lack of cheap financing for these borrowers continue to be key issues,” the New York- based analysts wrote, referring to “jumbo” mortgages. That’s after so-called interest-only and option adjustable-rate loans were a “major driver” of soaring values, they said.
The government’s moves to aid the housing market include the Federal Reserve’s mortgage-bond purchases to drive down interest rates; President Barack Obama’s “Home Affordable” loan modification and refinancing programs; and new tax credits for some first-time buyers. None of the U.S. initiatives “directly focused on helping the sales of these so-called millionaire homes,” the analysts wrote. “Currently, we have national home prices bottoming in 2011,” they said. “However, prices for more expensive homes may not bottom out until 2012, and ultimately result in peak-to- trough declines in excess of 60 percent (compared to 40 percent nationally).”
“California is probably worse than other states, but higher-priced homes in general are going to be a problem,” Sim said in a telephone interview today. The state’s median sales price for existing single-family homes fell 37 percent in April from a year earlier, to $256,700, according to California’s Association of Realtors. Nationwide, the price fell 15 percent to $169,800, according to the National Association of Realtors.
Monday, June 8, 2009
TAX CREDIT MAY BE GIVEN AS CASH TO BUYERS & 100 % FINANCING MAY BE HERE AGAIN-
This is targeting some buyers with the least amount of disposable income and many who are not in the best position financially, with a delicate economy, to take on this responsibility.
Current policies are helping to make buying a home (in certain areas and price ranges) almost too good to pass up. This is a good thing but only when qualified buyers participate. We experienced what happened when housing was "hot", when word spread and greed took over.
We already know that allowing people to purchase a home with very little down is a bad idea. There should be a significant investment that gives buyers a real incentive to stay in their home and honor their contractual commitments regardless of the market or a personal situation.
The number of first-time home buyers will decrease and our market will be left with traditional buyers who are not responding as strongly to the market but tax incentives could help this trend improve.
It is unfair that low-end housing and first-time home buyers have all the existing benefits and sellers in other higher-end markets and buyers making over a certain limit are simply being ignored.
A first-time home buyer buying in the low-end could have the following options: 100 percent financing, low mortgage rates, very low home prices, and now cash to make buying even easier and risks of buying even lower should the buyer decide to just walk away from the property and his/her responsibilities.
Connie De Groot
Comment:
Roberto Magalhaes at 6:01pm June 8
Hi Connie,Aren't there financial qualifiers for the 100% home financing or is the government taking on some of the risk?My general experience, not necessarily in the US, is that 100% financing of capital goods always lends itself to a loss on the lender side since recovery of foreclosed assets is costly.Dank u! Roberto
Current policies are helping to make buying a home (in certain areas and price ranges) almost too good to pass up. This is a good thing but only when qualified buyers participate. We experienced what happened when housing was "hot", when word spread and greed took over.
We already know that allowing people to purchase a home with very little down is a bad idea. There should be a significant investment that gives buyers a real incentive to stay in their home and honor their contractual commitments regardless of the market or a personal situation.
The number of first-time home buyers will decrease and our market will be left with traditional buyers who are not responding as strongly to the market but tax incentives could help this trend improve.
It is unfair that low-end housing and first-time home buyers have all the existing benefits and sellers in other higher-end markets and buyers making over a certain limit are simply being ignored.
A first-time home buyer buying in the low-end could have the following options: 100 percent financing, low mortgage rates, very low home prices, and now cash to make buying even easier and risks of buying even lower should the buyer decide to just walk away from the property and his/her responsibilities.
Connie De Groot
Comment:
Roberto Magalhaes at 6:01pm June 8
Hi Connie,Aren't there financial qualifiers for the 100% home financing or is the government taking on some of the risk?My general experience, not necessarily in the US, is that 100% financing of capital goods always lends itself to a loss on the lender side since recovery of foreclosed assets is costly.Dank u! Roberto
Tuesday, June 2, 2009
Home Sales Are On The Rise But How Can We Keep Up The Momentum?
REASONS SOME BUYERS ARE BUYING:
The expiration of the first-time home buyer tax credit is coming soon and is one reason buyers are buying now therefore this buying trend will most probably continue until rates change affordability for those first-time home buyers.
2. Commodity prices are up, the dollar is weakening and inflation is already being discussed so some are buying as a hedge against inflation.
3. Consumer confidence leaped up in May so this is also a contributing factor as to why pending sales are up by 6.7 percent which is the largest gain in 7 years!
4. Pending home sales are up for the 3rd month in a row based on affordability (prices, mortgage rates and income) and the first-time home buyer tax credit.
HOW TO KEEP THE MOMENTUM GOING
1. Give a tax incentive to buyers of ALL HOMES and also allow multiple purchases and consider extending it past Dec 09 but DO NOT ANNOUNCE IT NOW.
2. Raise the tax credit limit to 15,000 dollars to give incentive in higher priced marketplaces who also have desperate sellers
3. Consider raising the conforming loan limits higher than $ 729, 750 in higher priced areas and also ONLY FOR A LIMITED PERIOD OF TIME.
4. If giving buyers credits on each home they purchase is not favorable,why not offer repeat home buyers a capital gains exception for as long as they own those properties.
5. There is no secondary market for jumbo loans so perhaps the Federal Reserve could help restore liquidity in this market by buying these loans under the TALF program.
CONCERNS:
1. 1 in 12 mortgages in the U.S. are delinquent.
2. There is a stark rise in prime loan delinquencies.
3. Continued lack of financing for jumbo loans (no secondary market and lenders fears that prices will continue to come down in that market).
4. Continued job losses will negatively impact delinquencies and foreclosures.
5. Interest rates have come off their lows and if this upward trend continues many buyers will not be able to afford to buy.
6. A 40 month supply of homes above 750K currently exist and that market has virtually no tax incentive,difficult financing if a jumbo is required, and buyers are still concerned prices will continue to fall so they are on the fence.
The expiration of the first-time home buyer tax credit is coming soon and is one reason buyers are buying now therefore this buying trend will most probably continue until rates change affordability for those first-time home buyers.
2. Commodity prices are up, the dollar is weakening and inflation is already being discussed so some are buying as a hedge against inflation.
3. Consumer confidence leaped up in May so this is also a contributing factor as to why pending sales are up by 6.7 percent which is the largest gain in 7 years!
4. Pending home sales are up for the 3rd month in a row based on affordability (prices, mortgage rates and income) and the first-time home buyer tax credit.
HOW TO KEEP THE MOMENTUM GOING
1. Give a tax incentive to buyers of ALL HOMES and also allow multiple purchases and consider extending it past Dec 09 but DO NOT ANNOUNCE IT NOW.
2. Raise the tax credit limit to 15,000 dollars to give incentive in higher priced marketplaces who also have desperate sellers
3. Consider raising the conforming loan limits higher than $ 729, 750 in higher priced areas and also ONLY FOR A LIMITED PERIOD OF TIME.
4. If giving buyers credits on each home they purchase is not favorable,why not offer repeat home buyers a capital gains exception for as long as they own those properties.
5. There is no secondary market for jumbo loans so perhaps the Federal Reserve could help restore liquidity in this market by buying these loans under the TALF program.
CONCERNS:
1. 1 in 12 mortgages in the U.S. are delinquent.
2. There is a stark rise in prime loan delinquencies.
3. Continued lack of financing for jumbo loans (no secondary market and lenders fears that prices will continue to come down in that market).
4. Continued job losses will negatively impact delinquencies and foreclosures.
5. Interest rates have come off their lows and if this upward trend continues many buyers will not be able to afford to buy.
6. A 40 month supply of homes above 750K currently exist and that market has virtually no tax incentive,difficult financing if a jumbo is required, and buyers are still concerned prices will continue to fall so they are on the fence.
Wednesday, May 27, 2009
BREAKING NEWS-April Existing Home Sales Rise
Connie appeared on FOX BUSINESS NEWS "Bulls & Bears" hosted by Liz Claman and David Asman to discuss the possible write-downs on home mortgages. Connie shared her concerns and also what she thought could further boost demand for housing. To see clip go to http://www.conniedegroot.com/ and click on Connie on TV- look for original Air Date: May 26, 2009.BREAKING NEWS.......
April existing home sales rise by 2.9 percent nationally up from March.
The median sales price dropped to $172,000, down from $201,300 in the same month last year. That was the second-largest drop on record after January, when prices fell 17.5 percent.
Homes over 750,000 dollars currently have a 40 MONTHS SUPPLY OF HOMES.
Existing-home sales in the West rose 3.5 percent to an annual rate of 1.17 million in April and are 19.4 percent higher than a year ago. The median price in the West was $222,600, down 21.8 percent from April 2008.
There are incentives in the low-end that have stimulated buying activity for several months now. Almost half the homes sold were distressed sales. Low rates, low prices, a first-time home buyer tax credit are all contributing factors to the boom in sales.
Now is the time to let your elected officials know that the tax credit should be extended to buyers of ALL HOMES. The pool of buyers will not increase overnight and we MUST INCREASE THE DEMAND so we need to get as many qualified buyers to buy now. We have little movement with homes over 750,000 dollars because we have higher loan rates, more challenging lender requirements, larger down payments required and banks are more reluctant to do jumbo loans since there is no secondary market. This market needs some help so if we could give a tax incentive this might get a few more homes sold. The limit should also move to up to 15,000 dollars and this should only be offered for a limited period of time to create urgency in the marketplace. Lawrence Yun speaks to creating a secondary market...
Lawrence Yun, NAR chief economist, "Most of the sales are taking place in lower price ranges and activity is beginning to pick up in the midprice ranges, but high-end home sales remain sluggish," he said. "The Federal Reserve needs to help restore liquidity for the jumbo mortgage market by buying these loans under the TALF program."
Spread the word.....
Connie
The median sales price dropped to $172,000, down from $201,300 in the same month last year. That was the second-largest drop on record after January, when prices fell 17.5 percent.
Homes over 750,000 dollars currently have a 40 MONTHS SUPPLY OF HOMES.
Existing-home sales in the West rose 3.5 percent to an annual rate of 1.17 million in April and are 19.4 percent higher than a year ago. The median price in the West was $222,600, down 21.8 percent from April 2008.
There are incentives in the low-end that have stimulated buying activity for several months now. Almost half the homes sold were distressed sales. Low rates, low prices, a first-time home buyer tax credit are all contributing factors to the boom in sales.
Now is the time to let your elected officials know that the tax credit should be extended to buyers of ALL HOMES. The pool of buyers will not increase overnight and we MUST INCREASE THE DEMAND so we need to get as many qualified buyers to buy now. We have little movement with homes over 750,000 dollars because we have higher loan rates, more challenging lender requirements, larger down payments required and banks are more reluctant to do jumbo loans since there is no secondary market. This market needs some help so if we could give a tax incentive this might get a few more homes sold. The limit should also move to up to 15,000 dollars and this should only be offered for a limited period of time to create urgency in the marketplace. Lawrence Yun speaks to creating a secondary market...
Lawrence Yun, NAR chief economist, "Most of the sales are taking place in lower price ranges and activity is beginning to pick up in the midprice ranges, but high-end home sales remain sluggish," he said. "The Federal Reserve needs to help restore liquidity for the jumbo mortgage market by buying these loans under the TALF program."
Spread the word.....
Connie
Wednesday, May 20, 2009
First-Time Home Buyer Tax Credit: 6 Things to Know
While the proposed $15,000 home-buyer tax credit died in negotiations between the House and the Senate, the $787 billion stimulus bill that President Barack Obama signed into law Tuesday includes a similar--albeit smaller--measure designed to help revive the real estate market. Here are six things you need to know about the freshly-enacted $8,000 first-time home buyer tax credit.
1. Eight grand, new buyers: The tax credit included in the economic stimulus legislation is much narrower than the $15,000 proposal. This credit is equivalent to 10 percent of the purchase price of the home--although it's capped at $8,000--and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.
2. First time buyers defined: For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you've owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit.
3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be able to take advantage of it.
4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.
5. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.
6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)
written by Luke Mullins
1. Eight grand, new buyers: The tax credit included in the economic stimulus legislation is much narrower than the $15,000 proposal. This credit is equivalent to 10 percent of the purchase price of the home--although it's capped at $8,000--and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.
2. First time buyers defined: For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you've owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit.
3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be able to take advantage of it.
4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.
5. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.
6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)
written by Luke Mullins
Monday, May 18, 2009
Connie on Money For Breakfast at 4:45 am May 18, 2009!
Connie appeared via Satellite on the morning show "Money For Breakfast" hosted by Alexis Glick to discuss California's deficit, the suggested selling of San Quentin, the Los Angeles Coliseum and the upcoming vote on May 19th which polls are showing most unpopular. Original Air Date: May 18, 2009. To view clip go to "Connie on TV".
Thursday, May 14, 2009
HANNITY- Fox News Channel
Clips from the "HANNITY SHOW" To view the segment just go to my website: www.ConnieDeGroot.com and click on "CONNIE ON TV". Here are some of the comments received after the show.
Jane Hanson, Seaside CA
Dear Connie, we saw you last evening on the Hannity show and just want to tell you that you are NOT alone out here in CA!!! I was so happy to hear you say that People DON'T Get IT! It's getting more and more disheartening as the days go by and I"m so unsure of where our country is headed. Thank you for speaking up for us!
Dear Connie, we saw you last evening on the Hannity show and just want to tell you that you are NOT alone out here in CA!!! I was so happy to hear you say that People DON'T Get IT! It's getting more and more disheartening as the days go by and I"m so unsure of where our country is headed. Thank you for speaking up for us!
Sergeant Michael Bustamante, Anaheim Police Department
I just wanted to say I was impressed with your segment on Fox News Live. I felt you were very well informed and have a strong opinion about the economy, and housing situation. It was nice to hear someone making sense of this whole economic situation. (Responding to appearance on "Hannity")
Mark Hanlin
Connie, from the brief clip of you that I saw tonight, I have to say I was impressed--you presented your position well, with authority and expertise (not everyone can keep up with Hannity). My thoughts...gosh, where do I begin?? At the risk of sounding like a right-wing whacko, I must admit I'm concerned with the direction our country is taking, fiscally, politically, socially. And coming from 20+ yrs in the military, throw national security into that mix! I definitely think TARP was a BAD idea, and I'm supremely disappointed in the previous administration for setting us down that path. I've noticed over the past 10 or so years that I've become something of a news junkie, and now wish I'd paid more attention in Poli Sci class...! I will be very interested to see what happens in the next several years. (Responding to appearance on "Hannity")
Jim Morris
Connie, I just saw you on Hannity and wanted to send you a message. Right on target with your outlook on the economy and housing. Absolutely stunning also.
Steve Klar, ERGONOIC REALITIES
I saw you on Sean Hannity show tonight. You really had a lot of good thoughts on banks and how our tax dollars are being wasted on them. I agree with your conservative values.
Ray Ralston, Arizona
Hello Connie, I saw your interview on the Sean Hannity show the night of May 7th. You are right. Most people don't get what is happening to our country. Obama is marching us to Communism. The government is taking a little at a time.My son and I are trying to get into real estate investing over the last 2 years. Because of one thing or another, including me losing my job last July, and have not found one since, it has been a slow go. Now the government is changing the rules almost daily and making it extremely difficult to get any property. We may have found something just in the last week and are proceeding with an offer and hopes of a loan approval in a short time. This would finally be our first investment.
Maria Apodaca, California
Good Evening Connie, I saw you on Hannity this evening and I was very impressed with what you had to say. A conservative voice is very unusual in LA. I admire people who speak up and are not ashamed of what they believe. Thank you for taking a stand!
Tracy Grote, MAI, CCIM- TRACY GROTE & COMPANY, Austin Texas
Ms. De Groot, THANK YOU for presenting an aspect of the real estate industry to the public through your interviews on the various TV shows. As you may be aware, Costar stated today that during the 1Q2009, the commercial real estate brokerage firms are realizing a decline in sales and market activity. Whereas the housing market lead the way in the real estate downturn due to poor lending practices and underwriting, the commercial real estate market is next in line. Again, THANK YOU for presenting a logical, concise, real-world look at our present economic situation.
Monday, May 11, 2009
Connie in New York on "HANNITY"-
I went to New York to do several shows and was fortunate enough to be on with Sean Hannity. I know that many out here in California do not share his opinions but it is my feeling that he presents both sides of an issue as he did the night I appeared. To view this segment that appeared on the FOX NEWS CHANNEL May 8, 2009 just click on the link!
Hannity Recorded May 7, 2009, FNC
Connie De Groot on Hannity (In studio) May 7, 2009
Hannity Recorded May 7, 2009, FNC
Connie De Groot on Hannity (In studio) May 7, 2009
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