Posts Tagged ‘Sales’

Cities leading the country in price reductions

Monday, November 16th, 2009

As any good Realtor will tell you, price moves a home. But sometimes Realtors (as well as sellers) are afraid to take their own advice. As housing evaluations have dropped around the country, listing prices have been slow to follow. To get the job done, and your home sold, a price reduction might be in order.  However, nothing beats pricing a home correctly from the start. Even with price reductions, you may never fully catch up the the market. No groundhog has popped its head up to officially declare the housing decline over.

Here is a slide show of cities leading the country in price reductions.

DHW asks: Do you see your city on this list?

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

Monday, November 16th, 2009

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?

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

Sunday, November 15th, 2009

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?

Realtors forecast uptick in home prices 2010

Saturday, November 14th, 2009

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?

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

Thursday, November 12th, 2009

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

Foreclosures down but not out

Thursday, November 12th, 2009

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:

  1. Nevada
  2. California
  3. Florida
  4. Arizona
  5. Idaho

DHW asks: Are foreclosures down in your area?

FHA loosens condo project guidelines

Wednesday, November 11th, 2009

The Miami Herald reported the Federal Housing Administration (FHA) is temporarily relaxing underwriting guidelines for some condominium communities. The changes are intended to increase condo sales and put occupants in otherwise vacant units. 

DHW asks: Do you agree with the FHA’s decision to relax condo underwriting guidelines?

Critics be damned. Home sales up, prices down

Tuesday, November 10th, 2009

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?

Citi and USA Today: 1 in 5 dressed like they want it

Monday, November 9th, 2009

Last week, CitiMortgage suggested in a USA Today article that 1 in 5 homeowners currently in default of their mortgage are doing so strategically or voluntarily. They cite Sharon Sakson as one of these ’strategic defaults.’ Ms Sakson was laid off as a television writer and producer. After losing her job, she ‘burned through her savings to pay her mortgage.’ Burned through her savings. Ms Sakson is possibly the worst strategist I know. She strategically lost her job then voluntarily burned through her savings to make her mortgage payments. She eventually ‘walked away’ from her New Jersey home.

Clearly, we’re made to think Sakson and others who ‘walk away’ from their homes are bad people. How CitiMortgage and other lenders can get away with this type of character  assassination is beyond belief. Even more unbelievable, USA Today refuses to call lenders out on this practice. 

Readers should also note the USA Today article is not entirely accurate with regard to the seven-year wait period. If the foreclosed property is a primary residence, a borrower may be eligible for a new mortgage in five years.

DHW asks: USA Today’s decision to ‘blame the victim’ struck a nerve with a lot of folks at DesperateHouseWise. Have you had to walk away from your home?

Done! Obama signs bill extending, creating Tax Credits

Friday, November 6th, 2009

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?