First Time Homebuyer Tax Credit Extended and Expanded

On November 6, 2009, President Obama signed a bill into law that immediately extended the popular tax credit program offering up to $8,000 for qualified first-time homebuyers (FTHBs) into the first half of 2010.

The bill also instantly expanded the program, offering up to $6,500 in tax credits for qualified repeat home buyers, swinging open the door for even more qualified homebuyers to take advantage of this valuable opportunity at a time when mortgage rates are still near historical lows.

First-Time Buyers: For FTHBs (defined as someone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title), the basic rules remain the same, with one important exception – higher income limits are now in place, increasing the pool of potential buyers eligible for the tax credit of up to 10% of the purchase price or up to $8,000. This is money that does not have to be repaid as long you stay in your new home for at least 36 months.

Single tax filers who earn up to $125,000 are now eligible for the total credit amount. Those who earn more than this cap (but less than $145,000) can receive a partial credit. Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap (but less than $245,000) can receive a partial credit.

Repeat Buyers: The new homebuyer program offers an exciting new opportunity missing from the previous incentives – a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. This gives those who already own a qualifying residence some additional reasons to take advantage of lower home prices and interest rates and finally move up to the home of their dreams.

Important Deadlines: Purchase agreements must be signed by April 30, 2010, and closings must be final by June 30.Get the FactsThere are other important rules and guidelines you must meet to qualify for this great opportunity. So, if you or someone you know has missed out on the first two home buyer tax credit programs in the last two years, don't wait.

Article Courtesy of Homes and Money Quaterly News

Benefits of a Short Sale for Lenders

A short sale can save lenders lots of time and money. It is estimated that for each house that goes into foreclosure the bank is spending around $50000+/-. When the lenders decide to sell a property on a short sale, the litigation and foreclosure proceeding are skipped and the cost of holding the property is shorten. When a property falls into foreclosure, the lenders have to find asset managers and real estate brokers to list and sell their properties. In a short sale the lenders do not have to find asset managers and real estate brokers to sell and list their properties. The process is cut down and although it looks like the lenders are losing money up front, they actually will be saving more money by selling a property early before foreclosure.

The most difficult part in a short sale is getting the approval from the lender, because they are usually bombarded by multiple files and don’t have the adequate staff to manage all their files. It will take some time but most lenders will come to terms with an offer and will usually accept the lesser amount owed. In the long run, lenders know that they will benefit more from the short sale.

Benefits of a Short Sale for Seller's

There are numerous benefits to the sellers, some benefits include:

Won’t affect credit score as much as a foreclosure. When the seller’s only option is to sell a short and not got into foreclosure their credit score is effective as much as a foreclosure. Most seller’s who sell their home as a short sales can regain a good credit standing within 2 years where as a foreclosure your credit can be damage for up to 7 years.

No deficiency judgment. In most cases the banks will not have a deficiency judgment for the seller’s after a sale. The loan is satisfied and recorded as that.

Live in home. As a seller you can still stay in your home until the sale of your home. In a foreclosure the lender will order the sheriff to evict a person out of their home. If a homeowner has missed a payment and believe they have run into a hardship and are unable to work out anything with their lenders, seek a real estate professional trained in managing and selling short sale homes so their homes can be sold in a timely matter before they fall into foreclosure.

Morally correct. Most individuals want to be able to stay in their home and pay for their mortgage but hard times are upon them so they are unable to make the payments. If they can pay for the bills, they would.

Short sales are not easy transactions and everyone involved with a short sale should have patience and understanding of the process and educate their clients about the process. When there is better understanding of the process, all parties will benefit from the outcome.

Benefits of a Short Sale

I encourage all people falling behind on their mortgage to always first speak and try to work with their lender to see if they will allow a loan modification or provide other options so that a homeowner can keep their home. If the bank’s options are not favorable to the homeowner and they cannot afford the payments and their home is worth less than owed, the next best thing is to sell the home in a short sale instead of letting go into foreclosure.

There are many benefits that the homeowner can gain instead of letting the home fall into foreclosure. Please see below the benefits of a short sale versus a foreclosure.

Benefits of a Short Sale

I encourage all people falling behind on their mortgage to always first speak and try to work with their lender to see if they will allow a loan modification or provide other options so that a homeowner can keep their home. If the bank’s options are not favorable to the homeowner and they cannot afford the payments and their home is worth less than owed, the next best thing is to sell the home in a short sale instead of letting go into foreclosure.

There are many benefits that the homeowner can gain instead of letting the home fall into foreclosure. Please see below the benefits of a short sale versus a foreclosure.

Short Sales - Part I

We are seeing more and more short sales these days and it is now a common sight nowadays. I want to educate the public and all those interested, about the process and benefits of a short sale to all parties involved in the transaction.

For those of you not familiar with short sales, I will explain what a short sale is in common everyday terms. A short sale is when a homeowner is selling his/her property for less than what is owed on the mortgage with the approval from the lender to take the lesser amount to satisfy the loan. In most cases the homeowner does not have to pay what is owed. By this time, the homeowner usually has exhausted all their other options in trying keep their home and is force to sell their property as a short sale instead of falling into foreclosure. I will explain and go into further details about the benefits of a short sale compare to a foreclosure later in another blog.

In order for a short sale to occur two things must occur: the home must be under contract (have a purchase agreement) and the lender must accept that discounted payoff amount.

Short Sales, Short Sales, and more Short Sales

My next few blogs, I will concentrate on everything related to short sales from what a short sale is to its benefits and reason behind it. Short sales are here to stay…at least a while longer. If you have any questions please do let me know and add some comments. Till then, I am going to eat, breath, sleep, and live with everything related to short sales. So check back often to learn everything you need about short sales.

Ray Singhal earns the prestigious CDPE Designation

Ray Singhal with Coldwell Banker Burnet (651) 398 - 6261 Ray@TheSinghalTeam.com has earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by “distressed” homes in the foreclosure process.
Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.
Hundreds of homes are in danger of foreclosing. It is happening in all price ranges. Local experts say that even high-priced homes are not immune.
“This CDPE designation has been invaluable as I work with sellers and lenders on complicated short sales. It is so rewarding to be able to help sellers save their homes from foreclosure.”
Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors® with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.
The Distressed Property Institute opened in January 2008 and provides training on-site and online. The CDPE is the premier designation for Realtors helping homeowners in distress and handling short sales.
“Our goal is to educate as many people as possible so we can help as many homeowners as possible,” Charfen said.
Ray Singhal with Coldwell Banker Burnet (651) 398 - 6261 Ray@TheSinghalTeam.com

If its working...why stop?

For first time home buyer's the $8000 tax credit will end on November 30. The tax credit, many believe is what is driving home sales and helping to stabilize home prices. If this is one of the driving factors, why stop the credit on November 30. Let the credit continue onto next year, we have just only begun seeing the real positive changes in the market this summer.

The National Associations of Realtors is fighting for this continuation of the tax credit and many other items at this very moment in Congress. Some of the items NAR hopes to improve and what Congress to address:
• The lack of liquidity in the jumbo mortgage market;
• Tight credit in the commercial real estate market;
• The Home Valuation Code of Conduct’s unintended side effects that are hindering sales;
• Increased funding to help FHA upgrade their technology and for Congress to ensure that funding be included in the final version of the FY2010 appropriation for HUD;
• Administration incentives and uniform procedures for speeding short sales under a new Foreclosure Alternative Program; and
• The potential for significant spikes in interest rates or disruptions to the flow of mortgage capital as the Federal Reserve unwinds the mortgage-backed securities purchase program to ensure that this does not happen.

If Congress listens and addresses those issues for 2010, look for a great change.

Short Sales...anyone?

In the real estate world we would all love to have quick short sale (as in the time it takes to close on a home) but when you hear or see the words SHORT SALES think opposite. Short Sales can take a very very long time to close, because we now have a third party involve…the bank. The sellers can agree to the buyers’ price, terms, and conditions but the bank has the final approval on the offer and just getting an answer from the bank can take months. The term short sale is used because the banks are being shorted. For example a person owes $200000 mortgage on a home and he/she is selling the home for less than owe to satisfy or release them of their debt $200000. If you have the patience and time to wait for a short sale approval, you can find a great home for a low price.

If you are a First time homebuyer, stay clear of short sales, especially if you are looking to buy in the next few months to receive your $8000 tax credit. You will probably not make the November 30 deadline for the tax credit if you are trying to purchase a short sale home now. However, there are plenty of inventory of homes to choose from now, look in any neighborhood from Roseville to Shoreview to St. Paul, you will surely find a home to suit your needs.

Short sales and foreclosures inventory dwindling…

Home prices in the current market are favorable to buyers because of the increase in foreclosures and short sales. However, the short sales and foreclosure home inventory are dwindling. Buyers are picking up these properties, especially in the low to median price range because they are really affordable. Many of the buyers have to be quick and aggressive with their offers to secure the property. Banks are pricing homes well below their value just to get a lot of activity and multiple offers on properties. Some contributing factors include Buyers trying to purchase properties before the First Time Homebuyers Tax Credit expires at the end of November.
Be aware, if you are a first time home buyer and you want to get that tax credit, get an offer accepted in October and close in Mid-November. Title companies are going to be bombarded with work during the end of the month of November and you might not be able to close by the end of month if you wait that long. Better be safe than sorry.

The unofficial end of summer...

Starts with the end of the Minnesota state fair. After that the kids will be off to school and before you know it the ground will be covered in snow. Why not enjoy the summer weather all year long? Buy a home in Florida. According to article on Zillow.com, Florida has one of the highest in the United States of inventories of homes; many are foreclosures and short sale homes. Because of this buyers have been able to negotiate prices down. But don’t wait too long to make a move at buying…the market is picking up.

Everyday the markets in the twin cities are improving with sales increasing and inventories decreasing. This is trend is starting to pick up in many areas of the country not just the twin cities. The Minneapolis Area Associations of REALTORS (MAAR) reported that the median price sales increase from around $154,000 to $175,000 from March to August. The prices are stabilizing because there are fewer inventories of homes. Don’t wait, make that move and buy now when it is still the buyers’ market.

To search properties in Florida please click here.

Low prices of homes sparking activity…

Many factors are contributing the low prices of homes, but all that really matters is that if you are a buyer now is the time to buy. Whether you are buying a home in St. Paul, Roseville, Shoreview or anywhere, the price is right.

There are deals out there. Nowadays, it’s not a common site to see banks heavily discount foreclosed homes to increase activity to properties. The banks will price a property at $50000 knowing that a property is worth much more, and receive multiple offers. Sometimes this backfires on the banks and they might not receive a higher sale price, but this will ensure a quick sale of their property. Also Short sales are abundant, and if you have the time to wait for a short sale you can purchase a home 15-25 percent below tax assessed value.

The low prices are sparking many buyers and investors into a buying frenzy. We are now seeing more and more, multiple offers on properties. Many people don’t want to be in multiple offer situations but if you really like a home and feel that it is worth a certain value, why not submit an offer. There are only three answers you can get: Accepted offer, counter-offer, or rejection of offer. There’s no harm in it, so get out there and buy your home today before it’s too late.

Perfect Opportunities for Buyers

It is a perfect opportunity now to take advantage of the low interest rates and low home prices today and buy a home. There are numerous down payment assistance programs such as CityLiving for both St. Paul and Minneapolis. Also don’t forget the $8000 tax credit given to first time home buyers. Many cities also offer their own incentives for living in a particular location. Nowadays it is also common for Sellers to contribute to buyers closing cost and down payments. These incentives are going to only last for so long.
The interest rate today is hovering around 5.25 percent which is still very low. It will only stay so low for so long and as well as home prices. The market in June and July saw an increase in homes sales and median sales price. As the inventory of homes available decreases, the sales of price of homes will increase. If we continue on this trend the price of homes will only increase. So take advantage of the opportunities and buy a home today.

Market Improving

According to the Minneapolis Area Association of Realtors, the overall median sales price for all properties was down 17.8 percent from one year ago, but up 2.1 percent from the second quarter median sales price. The median sales price of traditional homes in June was down 6.2 percent from a year ago. Lender-mediated home sales were down 15.4 percent from a year ago.

There appears to be less room for negotiation, as the Percent of Original List Price Received at Sale continues to improve—the July mark of 94.0 is 1.5 percent higher than last July.

A year ago the market was not like it is today. The market is slowly but surely improving.

Home Sales Were Strong In July

Buyer activity in the Twin Cities housing market continued its strong run in July, according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc.

For the 13th consecutive month, there were more pending sales than there were a year ago. July saw 5,174 signed purchase agreements, up 16.0 % from July 2008 and the strongest July showing since 2005. Of these sales, 43.6 % were lender-mediated foreclosures and short sales.

What does this mean? It means that buyers are very active and the housing supply is shrinking. We started to see the first signs of the housing market correction last year, and we’ve come a long way. But make no mistake, there is still plenty more than has to happen to balance out the market.

Deadline for $8000 Tax Credit Fast Approaching

The deadline for the $8,000 first time home buyer tax credit is quickly approaching. The deadline is December 1, 2009 and has the following restrictions:

• Taxpayers who have not owned another principal residence at any time during the 3 years prior to the date of purchase are considered first time home buyers.

• The home must be purchased after April 8, 2008 and before December 1, 2009 in order to obtain the credit.

• Income limits apply. For married couples filing jointly the limit is $150,000 and for single people it is $75,000.

What does all of this mean? If you are in the market to buy your first home the clock is ticking for you to take advantage of the $8,000 tax credit. There are still some great homes and great buys in the Shoreview and Roseville areas.

TIME FOR SHOREVIEW HOME BUYERS TO GET OFF THE FENCE

Rates continue to be at historic lows and let’s face it, any rate below 6% is considered to be outstanding. Especially when you combine it with housing prices that are at their lowest levels in 6 years. Home prices are beginning to stabilize and we are even seeing homes being sold in multiple offer scenarios.

In addition, if you are a first time home buyer, you may qualify to take advantage of the $8,000 tax credit. We’ve heard it before, but it bares repeating. When do you know when we’ve hit the bottom of the housing market…when it starts to go back up.

So, if you are in the market to buy one of the beautiful Shoreview homes or a fantastic home in any other area, it is time for you to make your move and get off of the fence.

Tips for Buying Homes

Here are just a few tips that buyers should think about when buying a home:

1. Find a real estate professional that you get along with. Not only does
your realtor need to be knowledgeable, but you need to find someone that
works well with your personality.

2. Don’t try to second guess the market. If you find a home that you want,
make an offer on it.

3. Don’t ask for too many opinions from friends and family. Too many ideas
can make it harder to make a decision.

4. Accept the fact that no house is perfect. It is much more important to
focus on the things that are most important and let the minor ones go.

5. While negotiation is a big part of buying real estate, the best negotiation
is when all parties are happy with the outcome. A win-win is always a
better path.

These tips apply to first time home buyers as well as seasoned home buyers that may be purchasing their 10th home. Check back again for more tips on buying homes.

Traditional Home Sales Are On The Rise

After increasing by $12,000 from April to May, the median sales price in the Shoreview and Roseville housing markets jumped another $8,500 in June as traditional homes again increased their market share. Traditional homes are defined as those excluding foreclosures and short sales.

Of the 4,764 closed sales in the Twin Cities during June, 40.7% were lender-mediated foreclosures and short sales, down from the 59.7% seen at the beginning of the year. While that percentage is still too high, it’s a definite improvement from six months ago. It also is another indication that the low rates and tax credit are helping to encourage traditional home sales.

MORE HELP FOR FIRST TIME HOME BUYERS

More great news for FHA approved home buyers using the First Time Homebuyer Tax Credit. FHA approved lenders have been given the go ahead to develop a bridge-loan product that will enable first time home buyers to use the benefit of the First Time Homebuyer Tax Credit upfront.

FHA approved lenders can develop bridge loans that first time homebuyers can use to help cover closing costs, buy down their interest rates or put more than the minimum 3.5% down.

It is important to note, that these bridge loans can not be used to cover the minimum 3.5% down payment required by FHA.

Straight Talk About Foreclosures & Short Sales

Let’s face it, loan modifications, short sales and foreclosures have impacted the housing market in the Twin Cities, and they’re not going away any time soon.

A homeowner first course of action should be to try and work out a loan modification with their lender. If there does not happen, then the homeowner should consider a short sale. A short sale is an arrangement that a home owner makes with the lender to accept less than what is owed on the property. This is often done to try and sell a property before it goes into foreclosure. As a last resort the lender will foreclose on a property. A foreclosed property is one in which the lender has repossessed the property from the homeowner and now the lender owns it.

First quarter statistics for the Roseville area show the number of lender-mediated homes for sale up 56.3% compared to this time last year. While traditional (non-lender mediated) homes for sale were down 33.3% compared to this time last year.

Robust Home Sales In The Twin Cities

As we near the halfway mark of 2009, the Twin Cities housing market continues to show a pattern of robust home sales and declining new listing activity. Setting aside fluctuations over the Memorial Day holiday, long-term market improvement can be seen when comparing 2009 to 2008.

There were 1,210 pending sales for the week ending June 13—a strong 33.8% increase from last year. There were 1,970 new homes added to the market during the same week, a decrease of 2.6% from the same week in 2008. That 2.6% decline in new listings is a much smaller drop than we have seen in recent months when there were typically year-over-year drops of 10% or stronger.

Opportunity is Knocking for First Time Home Buyers

If you have been considering purchasing your first home, but have been waiting on the sidelines for the right time, this may be the right time. This year, qualified first time home buyers can receive a tax credit up to $8,000. This is part of the American Recovery and Reinvestment Act of 2009.

Some facts about the Tax Credit:

•Available to first time home buyers
•Credit amount up to $8,000
•Eligible for homes purchased on or after January 1, 2009,
and before December 1, 2009
•Available on single family detached homes, townhomes and condominiums,
new construction or pre-existing homes
•The tax credit does not need to be repaid unless the home is sold
within the first 3 years after the purchase
•Home must be your primary residence
•You have not owned a home during the last 3 years

Interest rates are still low and there are still plenty of wonderful homes available. Now IS a great time to buy a home.

Senate Pushes To Expand Home Buyer Tax Credit To $15,000

Lawmakers are pushing to revive legislation in the Senate that would almost double an $8,000 tax credit for first-time home buyers and expand the program to all borrowers.

This proposed legislation would extend the home buyer credit to multi-family properties that are used as the borrower’s primary residence. It would also eliminate income caps of $75,000 and $150,000 on individuals and couples seeking to claim the credit.

“The housing market continues to be a drag on the economy”, said John Castellani, President of the Washington-based Business Roundtable. “We believe that if we don’t stabilize this vital sector, we can’t turn the tide on the recession.”

The business Roundtable and the National Association of Realtors are both pushing to expand the tax credit and to lower mortgage rates to revive the U.S. housing market.

Home Sales Hot Streak Continues...

April home sales in the Twin Cities were even stronger than March's upswing, according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc.

There were 5,211 pending sales in April, up 23.8% from last April. This is the highest showing of signed purchase agreements in April since 2005 and the tenth consecutive month of year-over-year increases.

It’s all about low rates and excellent affordability. If you’re in the position to buy a home, opportunities are available and the time for action is now.

Buyer's Market Continues

The most important tip in economics is to buy low and sell high. Of course, that is easier said than done.

Nobody knows when the housing market will hit rock bottom or if it already has. Everyone wants to know when the bottom of the market will occur, however, we’re not going to know, until the bottom of the market is past by a month or by a quarter or by a half-a-year depending on what stats are being looked at.

What is clear, however, is that this is a buyer’s market for housing.

If you find a good house, buy it now because by the time we know the bottom of the market has come, it will have come and gone.

Why Use A Realtor?

All real estate licensees are not the same. Only real estate licensees who are members of local, state and national REALTOR® associations and agree to act under and adhere to Professional Standards of Practice and strict Code of Ethics are called REALTORS®. REALTORS® are committed to treat all parties to a transaction honestly, and proudly display their REALTOR “R” logo.

Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Do it right. Use a REALTOR®.

Strong Home Sales Continue Into Spring

Based on data from the Regional MLS of Minnesota, Inc. April home sales in the Twin Cities were even stronger than March's upswing according to the Minneapolis Area Association of Realtors. There were 5,211 pending sales in April, up 23.8 percent from a year ago. This is the highest showing of signed purchase agreements since April of '05 and the tenth consecutive month of year-over-year increases. Of the month's pending sales 46% were lender-mediated foreclosures and short sales-down from the last few months as more traditional properties are sold during the spring selling season but up from last year at this time.

Pending Home Sales On The Rise

Pending home sales rose with many first-time buyers taking advantage of historically good housing affordability conditions, according to the National Association of Realtors®.

Lawrence Yun, NAR chief economist, said it should take a few months for the market to gain momentum. “This increase could be the leading edge of first-time buyers responding to very favorable affordability conditions and an $8,000 tax credit, which increases buying power even more in areas where special programs allow buyers to use it as a downpayment,” he said. “We need several months of sustained growth to demonstrate a recovery in housing, which is necessary for the overall economy to turn around.”

Housing Sales Spring Back in the Metro Area

The 2009 spring selling season appears to be off to a strong start as indicated from the 13 county metro housing statistics released by the Saint Paul Area Association of REALTORS®.

Closed home sales were up 14.25% from one year ago. There was also an increase in the number of mortgage applications compared to last year. Some contributing factors include the first time homebuyers $8,000 tax credit and historically low interest rates. It appears as though buyers are feeling more confident, moving off the sidelines and purchasing homes again.

First Time Home Buyers Give Market A Boost!

Affordable home prices combined with historically low mortgage rates and first-time buyer's tax credit are fueling the sudden real estate turnaround. We've heard of open houses with a home that was priced in the $110,000 - $115,000 range getting 30+ people through in two hours. And many homes are now selling in multiple offer scenarios. Our optimism is supported by hard numbers. Pending home sales have jumped 20% compared to the same period a year ago. Chris Galler heads The Minnesota Association of Realtors® and says the housing market in the $100,000 to $250,000 price arena is extremely hot right now.

Could You Use $8,000?

Pohlad charity gives $8,000 to Dayton's Bluff homebuyers
Grant aimed at two hard-hit ZIP codes
By Tad Vezner

People looking to buy a home in St. Paul's Dayton's Bluff neighborhood will get extra money for a down payment, with the help of a $1 million grant from a Minneapolis charity.

Anyone who purchases a single-family home or duplex in the east St. Paul neighborhood by the end of the 2009 calendar year will receive $8,000. The money will not have to be repaid if the owner keeps the home for seven years. The owner has to stay in the home to qualify, and there are no limits on income.

The homes also must be in the 55411 or 55106 ZIP codes — the two areas hardest hit by foreclosures statewide, according to the Minnesota Housing Finance Agency. The funding would be in addition to an $8,000 federal tax credit that is part of this year's federal stimulus package.

"We're pretty excited. We should be ready to go shortly," said Jim Erchul, executive director of Dayton's Bluff Neighborhood Housing Services of St. Paul, the local nonprofit that is managing the grant funds. "That would help them (homebuyers) buy some furniture when they move in."

The funds are part of a $20 million effort by the Pohlad Family Foundation, a charity that focuses on family-based programs, to combat the effects of the economic downturn. It is giving job retention grants and low-interest capital improvement loans to small businesses; improving neighborhoods hit by the housing crisis and assisting homeless families with rent; and helping local nonprofits with other needed services, primarily in the areas of employment and housing.

In addition to several local and state housing agencies, the primary fund managers include the Minnesota Chamber of Commerce Foundation and MAP for Nonprofits.

The foundation usually gives $7 million to $10 million annually, primarily to local Twin Cities programs. The $20 million grant was made in addition to the foundation's regular allocations this year.

Anyone interested in the Dayton's Bluff program should contact Dayton's Bluff Neighborhood Housing Services at 651-774-6995.

Tad Vezner can be reached at 651-228-5461.

St.Paul: City Offers 'Heroes' Tax Credit For First Home Buyers

Later this month, St. Paul and Minneapolis city officials will unveil a program that provides $8 million worth of federal tax credits to qualified first-time homebuyers who purchase homes in either city. St. Paul's Housing and Redevelopment Authority voted to sweeten the deal for vets, firefighters, emergency med techs, members of the US armed forces, health care workers and certain public sector employees. Those borrowers could receive loans of up to $15,000 for down-payment assistance, closing costs or reducing the principal amount owed on a mortgage.

Market Trend Continues

When compared to the same week a year ago, the market trends of the past few months continued this week with an increase in pending sales while new listings remaining about the same. Interest rates remain at record low's. Call us today to open the door to your dream home.

Weekly Market Activity Report

Weekly Market Activity Report 3.23.09
Has everyone remembered to “spring” forward? It looks like the Twin Cities housing market certainly has, as the new season has brought in an uptick in sales along with the warm weather. The market can only hope that “spring” fever is more than just a figure of speech.

Speaking of pending sales, while they have tapered off during the week ending March 14, there is no denying that since the new year began pending sales have steadily outperformed last year’s numbers. In fact, even with almost no increase in pending sales activity the 870 pending sales for the week are still 14.9 percent higher than last March at this time.

Total active listings are another story. While new listings for this period are only 13.9 percent lower than last year, active listings are down nearly 14.7 percent. This can be looked at in a positive light however if you consider the combination of pending sales, decreasing inventory, and higher HAI (Housing Affordability Index) are all helping to get more people into homes throughout the new spring season. This coupled with the federal government’s tax credit efforts could give the Twin Cities housing market the added boost it needs to awaken and to realize the potential that is out there.

There are many other events that coincide with spring: spring training, spring fever, spring boards…ok that last one isn’t technically associated with the season. But with the Month’s Supply of Inventory for March down 15.2 percent over last year, agents across the Twin Cities can assist buyers in diving right into the market now that conditions are beginning to warm

Need Help with Your Fannie Mae or Freddie Mac Mortgage? Making Home Affordable is Here!

A new government help program just launched yesterday with to assist homeowners in restructuring their loans. The US Treasury Department’s easy-to-navigate website and telephone hotlines were activated on March 19, 2009, for the Making Home Affordable program. This program was created to assist the over 9 million homeowners with a Fannie Mae or Freddie Mac mortgage refinance or modify their mortgage. The website is makinghomeaffordable.gov and the toll-free hotline numbers is 1-888-995-4673.

The site offers in formation on how to refinance to a new loan as well as steps to modify a current Fannie Mae or Freddie Mac loan. Easy step by step instructions are available so that you can quickly determine if you are eligible for the program. Not certain if your home loan is held by either Fannie or Freddie? There are weblinks and phone numbers to help you determine if your mortgage is held by either organization.

Minnesota: Feds Buying Thousands Of Acres Along MN River For Wildlife Reserve

A federal agency is quietly spending tens of millions of dollars to lengthen a swath of publicly owned natural areas up and down the Minnesota River. It's possible because of a fund created almost a decade ago when a new airport runway sent flights over a part of the MN Valley Wildlife Refuge for the first time. The Metropolitan Airports Commission agreed to set up the $26 million fund to compensate for its intrusion. Th e result could more than double the number of miles of reverfront included in what is already an unusual asset for any big metro area. Land buys are taking place as far south as Mankato.

St. Paul: Getting First-Time Buyers To Bite!

Real estate agents and builders hope an $8,000 tax credit will encourage new buyers to bite, jump-starting the market. Oakdale residents Mandy Palank and her fiance, Jeff Thalhuber, toured a bank-owned home in Eagan and liked the yard but the kitchen needed work. "The $8,000 credit is definitely a huge incentive." In the unfolding drama of the nation's troubled market, the role of first-time buyers has come into focus with the passage of the federal stimulus package but the tax credit is only available to people who haven't owned a home in the past three years and it can be applied to home purchases made by November 30. The National Association of Realtors estimates that the measure could compel as many as 300,000 people to buy homes.
Reprinted from St.Paul Pioneer Press article

Our Services for Home Sellers

<….We will professionally assess your specific needs, wants and desires.



<….We will prepare extensive market evaluation and propose best pricing strategy.



<….We will prepare and implement a custom-tailored marketing plan.



<….We will help you best stage your home and make home enhancement recommendations.



<….We will provide consistent feedback, update market information and watch the market throughout the home sale process.



<….We will evaluate all offers, negotiate the best price and terms for our sellers.



<….We will coordinate the entire closing process and keep you fully informed.



<….We will assist you and do our best in fulfilling any special needs of our sellers to facilitate the transition process.





We will always be there to answer your questions…and thus become “Your Real Estate Trusted Advisors……For Life”!


Contact us today
651-398-6261

What's Ahead for Real Estate in 2009?

2009 will be a year of recovery and stabilization for the real estate industry. Here are my 15 top predictions for 2009:

1. Mortgage rates will drop, then rise, and finally stabilize
• Rates will be at a historical low in the first part of the year.
• Rates will go up in spring & level off after the first half of the year.

2. Investors will come back into the market in 2009
• The Federal Reserve plans to pump up the housing sector by buying up to $100 billion dollars worth of bonds issued by Fannie Mae & Freddie Mac.
• The Fed will also buy ½ trillion dollars of mortgage-backed securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae.

3. Buyers will jump off the fence and come back into the market
• With fixed rates in the mid-fives -- combined with pricing at 2003 and 2004 levels -- it is an excellent time to buy.

4. Sellers will become creative with alternative ways to add value to their home sale with incentives such as:
• Interest rate buy-downs
• Seller financing & Other incentives

5. Listing Inventory will go down as the market absorbs inventory
• Nationally, listing inventory will begin to go down as inventory is consumed by many markets where new home inventory is on the decline. Builders in 2008 focused on selling existing inventory and did not focus on building new projects so as the year goes on inventory numbers will decrease. Coupled with lower interest rates and higher investor confidence, this consumption of inventory will continue.

6. Market time will decline and remain on the lower end of the spectrum
• Days-on-market numbers will go down in 09 due to a lack of new home inventory coming on the market.

7. Real Estate agents will leave the industry in record numbers

8. Builders will use auctions to sell off inventory; many will leave the business entirely
• Builders will turn to auctions to liquidate remaining properties.
• Builders will leave the industry due to financial pressures from the lack of 2008 sales.
• New construction will virtually grind to a halt as builders are unable to develop new product as a result of excess inventory / poor sales in 2008.

9. New home inventories will reach record low numbers in the fall of 2009
• Many builders stopped buying land in 2008, and will therefore be unable to build in 2009.
• Builders stopped building in 2008 and concentrated on selling standing inventory. As a result, they were not building new inventory. This will lead to an inventory shortage in 2009.
• Existing new home inventory will be absorbed by the fall of 2009.

10. Consumer confidence will improve in the spring of 2009
• Consumer confidence will improve in the spring of 2009, and buyers jump back into the market…carefully.
• Consumers will look to real estate agents for guidance in buying and selling.

11. Appreciation will be small to nonexistent in most markets as the industry stabilizes
• Most markets across the country will see little or no appreciation while the market stabilizes and inventory gets absorbed by the market.
• Some markets will continue to see their markets decline into the second half of 2009 as inventory levels stabilize.

12. The rental market will BOOM IN 2009
• It’s estimated that almost 2 million homes will be foreclosed on in 2009. This will transform many former homeowners into tenants.
• Banks will rent their real estate owned properties rather than sell at a substantial loss.
• Tighter credit criteria will force potential buyers to renew their current leases after they are turned down for a mortgage.
• Consumer fear and an uncertain employment picture will keep would-be, credit- worthy buyers on the sidelines, leading to reduced turnover in rental housing.
• Americans who have realized a loss by recent homeownership will decide that ownership is not worth the risk and trouble. They will sign a rental lease and happily return to rental living.

13. "In demand" homes will become the "safe necessity" of 2009
• Smaller, green-built, and energy efficient homes will be in big demand.
• Home with a good location in relation to work and school will be in demand.
• Homes in the mid-range of price for their market will be in demand as more homebuyers become more frugal.

14. Real estate companies will merge in 2009
• Smaller real estate companies will merge with larger companies to make it through the market downturn.
• Competition in the industry will shrink as the number of companies and the numbers of agents is reduced.

15. Second home markets will see far less activity; many will suffer in 2009
• Second home markets in many markets will suffer due to the financial losses owners of second homes experienced as their stock portfolios, pensions, or other investments devalued and deteriorated.
• Second home markets will suffer due to consumers’ need to relocate assets and financial priorities.

While we will see adjustments in 2009, it’s sure to be a much better year than 2008.

Published by Realty Times: February 12, 2009

Weekly market report

For the week ending January 31, new listings continue at a lower level than
seen last year, clocking in at 1,635—a 15.3 percent drop. Conversely, pending
sales continue to raise sand with 673 recorded for this week's report—25
percent above last year. Basically, this is all welcome news. Having fewer
listings on the market, combined with an increase in pending sales, helps to
reduce the Months Supply of Inventory to 13.5 percent when compared to last
year at this time—down from 8.9 to 7.7 months. This means it will take the
current supply of houses for sale 7.7 months to sell (on average).
The Percent of Original List Price Received at Sale continues to fall, with the
January figure of 89.5 sitting at 1.6 percent less than 2008. It's important to
consider sales prices of foreclosure homes and how they affect this figure.
Our new Housing Affordability Index jumped to 202 in February. This is a new
record and means that the median family income is 202 percent of what is
necessary to qualify for the median-priced home. Again, we must consider how
the sales prices in the lender-mediated market are affecting this figure, but we
can say with some confidence that there are a number of very attractive buying
opportunities in the local housing market.

What would convince home buyers to buy in today’s market:

What is the magic mix that will get buyers motivated. Mortgage rates lower than today’s 5%? smaller down payments? Below market value pricing? Special amenity packages? Or a big tax credit? Strategies to bring buyers back into the market dominated the recent Annual convention of National Association of Home Builders in Las Vegas.

Survey results suggest that a tax credit alone is not sufficient to motivate buyers to sign purchase contracts.. The most effective in convincing them to buy now is: a 30 year loan with a fixed 3% interest rate. The Zero down option would be highly attractive to potential buyers Guarantees by builders that loan applications will be accepted when buyers verify their income and have a fair credit score. Price concessions also are compelling to would-be buyers. Most effective of all: a 10% discount below TRUE market value—in other words, instant equity for the purchase upfront.

Bottom line: Look for builders to offer combination packages of special financing, price concessions, lower down payments and perhaps loan application approval guarantees. Tax credits would continue to get more push on Capitol Hill but financing concessions appear to have more clout with potential home buyers.

Downtown St.Paul: Hot For This Market

Downtown St. Paul managed a 6 percent increase in the median sale price for a home during 2008, making the district a Twin Cities oddity alongside Edina and two sections of Dakota County in posting price gains, compared with the previous year. Overall, the median price in the 13-county metro dropped 13 percent this past year, with declines being posted in the majority of districts defined by Realtors. The new data had St. Paul civic leaders boasting about the joys of downtown living and agents offered a variety of explanations for the uptick, ranging from size of the condos sold to a small number of downtown foreclosure properties.

Nation: National: Long-Term Rates Fall For Eleventh Consecutive Week

Long term interest rates fell again in the week ending January 15th, according to Freddie Mac's Primary Market Mortgage Survey. Rates are the lowest they have been since Freddie Mac begin the PMMS in 1971

LONG-TERM RATES FALL FOR TENTH CONSECUTIVE WEEK SETTING YET ANOTHER NEW LOW

McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.01 percent with an average 0.6 point for the week ending January 8, 2009, down from last week when it averaged 5.10 percent. Last year at this time, the 30-year FRM averaged 5.87 percent. The 30-year FRM has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.

The 15-year FRM this week averaged 4.62 percent with an average 0.7 point, down from last week when it averaged 4.83 percent. A year ago at this time, the 15-year FRM averaged 5.43 percent. The 15-year FRM has not been lower since June 13, 2003, when it averaged 4.60 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.49 percent this week, with an average 0.7 point, down from last week when it averaged 5.57 percent. A year ago, the 5-year ARM averaged 5.63 percent.

One-year Treasury-indexed ARMs averaged 4.95 percent this week with an average 0.5 point, up from last week when it averaged 4.85 percent. At this time last year, the 1-year ARM averaged 5.37 percent.

(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)

"Interest rates for 30-year fixed-rate mortgages fell for the tenth week to a fourth consecutive record low due in part to the Federal Reserve's recent purchases of mortgage-backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae," said Frank Nothaft, Freddie Mac vice president and chief economist. "On November 25, 2008, the Federal Reserve announced that it planned to purchase up to $500 billion of these securities by the end of June of this year. For the sake of comparison, there were roughly $4.7 trillion of such securities backed by home mortgages available as of September 30, 2008.

"Since the end of October 2008, these rates have declined by almost 1 1/2 percentage points, or payment savings of about $184 a month for a $200,000 loan – an additional $11 dollars from last week."

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

Nation: 4 Facts About Down Payments In Today's Market

There is some misinformation in the media lately about the required size of a down payment for a mortgage in today's market. According to the National Association of Realtors, here are the facts: There is some misinformation in the media lately about the required size of a down payment for a mortgage in today's market. According to the National Association of Realtors, here are the facts:



An individual may be required to put down 20 percent based on that person's financial situation but that's not a requirement for all buyers.
A borrower who puts down less than 20 percent is required to obtain mortgage insurance.
Even in a declining market, a borrower is required to make at least a 5 or 10 percent down payment.
FHA requires a 3.5 percent down payment by borrowers, so long as they meet a 31 percent housing cost-to-income ratio. In other words, anyone who stays within their budget and who can afford a 3.5 percent down payment (even with famly help) can become a homeowner.