DesperateHouseWise.com » 6500 tax credit extension

Game clock: Housing tax credits expire in 107 days

DHW — Wed, 13 Jan 2010 22:00:52 +0000

Buyers hoping to take advantage of the housing tax credits will need to have a written, binding contract in effect by April 30, 2010. Buyers will have until July 1, 2010 to close.

There are exceptions for certain armed service, intelligence service and foreign service personnel.

DHW asks: Will you take advantage of the housing tax credits?

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The South will rise again, but in a good way.

DHW — Mon, 16 Nov 2009 13:00:27 +0000

A survey released last week by Move.com, a real estate website, shows 1 in 5 Americans plan on purchasing a home within the next year. The survey also revealed these buyers are most likely to be 34 years of age or younger and live in the South or West.

It should be noted this survey was taken before the housing tax credit extensions were announced.

DHW asks: Do you intend to buy a home within the next year?

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Will expanding the housing tax credits beyond first time homebuyers contribute to housing inventory woes?

DHW — Sun, 15 Nov 2009 19:09:01 +0000

The Capital published an intriguing article addressing the potential side-effects of expanding the housing tax credits beyond first time homebuyers. The article raises some fair questions with regard to existing homes needing to be liquidated so that current homeowners can take advantage of the housing tax credits now afforded to them. The Capital article focuses on housing inventory in D.C. and its surrounding area. However, this potential side-effect could present itself in other parts of the country.

DHW asks: Do you think expanding the housing tax credits beyond first time homebuyers will increase housing inventories?

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Realtors forecast uptick in home prices 2010

DHW — Sun, 15 Nov 2009 03:45:49 +0000

Lawrence Yun, chief economist for the National Association of Realtors, predicted on Friday that home prices will rise in 2010. If his prediction holds true, home prices will see their first increase in four years.

Yun pointed to the current price-income ratio of 2.4 as evidence of pent-up demand in the market. The price-income ratio accelerated from a norm of 2.6 in 1984-2001 to 3.3 in 2005. This means the price-income ratio has dipped below its pre-bubble rate.

The housing tax credit extension is also seen as a contributing factor to rising homes prices next year.

DHW asks: Do you think home prices will rise in 2010?

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Audit: FHA’s reserve funds way below what law requires

DHW — Thu, 12 Nov 2009 15:37:53 +0000

From The Washington Post : ‘FHA’s cash reserves have dropped well below amount required by law, audit shows’

DHW asks: Do you think the FHA’s reserves will hit zero?

FHA loan limits in your area

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Foreclosures down but not out

DHW — Thu, 12 Nov 2009 14:56:24 +0000

U.S. foreclosures sank for a third consecutive month in October, down 3% from the previous month. However, many feel this trend will not continue. Foreclosure notices were curtailed in many states due to temporary, legislative intervention. CNBC reported Nevada foreclosures “dropped 26 percent from the previous month because of new legislation requiring mediation before initiating foreclosure proceedings.” Illinois had similar legislation, but foreclosure notices skyrocketed there 56% in October from the previous month.

States leading in foreclosure:

Nevada
California
Florida
Arizona
Idaho

DHW asks: Are foreclosures down in your area?

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Realogy CEO just doesn’t get it.

DHW — Wed, 11 Nov 2009 22:07:01 +0000

In a CNBC interview this morning, Realogy CEO, Richard Smith, called on FHA to increase its minimum required down payment of 3.5%. Mr Smith suggested the ‘risk profile’ will have to change to stave off foreclosures. This argument only perpetuates the myth that those who put less money down are somehow less attached to their home than those who put down a significant amount. Mr Smith should have taken the opportunity to call on the administration and Congress to cure the real problems that cause mortgage delinquencies.

The Urban Institute, a Washington D.C. based think tank, issued a study recently that revealed some interesting, though not surprising, data. Those who put little or no money down tend to be more poor than those who put, say, 20% down. They are also less likely to have health insurance. Someone who has health insurance is more likely to miss less work due to an illness than someone who has no insurance. This is only one example cited in the Institute’s report.

Although many pundits, including Mr Smith, suggest the nation’s recovery is tied to housing, it is not. It is tied to job creation. You cannot have a 10% unemployment rate and expect to have a stabilizing housing market.

Reology is the world’s largest brokerage operator. They own Coldwell Banker, Century 21, Better Homes and Gardens Real Estate and ERA.

DHW asks: Do you think the FHA should increase its minimum required down payment?

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Critics be damned. Home sales up, prices down

DHW — Tue, 10 Nov 2009 21:19:41 +0000

Critics of the Housing Tax Credit were quieted, if only briefly, when the National Association of Realtors (NAR) released data for third quarter home sales. According to the trade group, home sales increased by nearly 6% over this same time last year. Despite the spike in sales, prices have fallen more than 11% during the same period. The U.S. median existing single-family price for the third quarter was $177,900.

Opponents of the housing tax credit feared an inflationary reaction in home prices. Although housing inventories are down, existing units still outweigh the demand.

NAR chief economist, Lawrence Yun, predicts home prices will stabalize next spring. His prediction may be overly optimistic. Foreclosures and short sales made up 30% of thrid quarter sales. There is no real evidence to suggest foreclosures will take a breather in 2010.

DHW asks: Do you see a bottom to the housing market?

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DesperateHouseWise Update

DHW — Sat, 07 Nov 2009 20:26:55 +0000

DesperateHouseWise.com added a new page to its site. Modification Center offers helpful information for homeowners seeking a loan modification or refinance. Find information about Making Home Affordable and local foreclosure prevention events. You can even find a free, HUD-approved housing counselor.

DHW also added Housing Tax Credits. This page provides in-depth information regarding the recent extension and additions to the housing tax credits.

DHW asks: Have you applied for a loan modification? How was your experience?

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Done! Obama signs bill extending, creating Tax Credits

DHW — Fri, 06 Nov 2009 21:16:08 +0000

President Obama signed bill H.R. 3548, extending unemployment benefits for all states and extending the $8,000 Tax Credit for first home buyers. The bill also creates a $6,500 tax credit for those home buyers who have owned their current primary residence for at least 5 years. See ‘Housing Tax Credits’ for more details. You can also see how congress voted.

Remember: The $6,500 tax credit took effect when the President signed the bill.

DHW asks: Will this encourage you to buy a home?

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