The bottom of the housing decline is near, predicted analysts and home builders attending the National Association of Home Builders’ semiannual Construction Forecast Conference last week.

Mark Zandi, chief economist of Moody’s Economy.com, facetiously picked a date when home prices would stop falling: Dec. 15, 2009. Other observers weren’t so precise, but they did generally agree that the federal government’s efforts to shore up the market would take effect by the end of 2009 or early in 2010.

Analysts also predicted that consumers will spend less on remodeling. Eric Belsky, executive director at Harvard University’s Joint Center for Housing Studies, predicted that spending on remodeling would fall 12.3 percent by the end of this year compared to last.

Analysts project that the credit crisis will loosen, although people with blemished credit records may continue to have trouble getting mortgage loans.

Source: The Wall Street Journal, June Fletcher (04/2009)

Existing-home sales eased in March but first-time buyers are responding to low mortgage interest rates and tax credits, according to the National Association of Realtors®.

Existing-home sales—including single-family, townhomes, condominiums and co-ops—declined 3.0 percent to a seasonally adjusted annual rate of 4.57 million units in March from a downwardly revised level of 4.71 million in February, and were 7.1 percent lower than the 4.92 million-unit pace in March 2008.

Lawrence Yun, NAR chief economist, said the market appears to be stabilizing with modest monthly ups and downs, and that first-time buyers are driving the market. “The share of lower priced home sales has trended up, indicating a return of many first-time buyers, which we also see in a parallel member survey,” he said. “Sales in the upper price ranges remain stalled because of higher interest rates on jumbo loans.”

Although prices rose from February to March, the national median existing-home price for all housing types was $175,200, down 12.4 percent from March 2008. The price increase from February to March was 4.2 percent, which is much higher than the typical 1.8 percent seasonal increase between those two months. Distressed properties, which accounted for just over half of all transactions in March, typically are selling for 20 percent less than traditional homes.

An NAR practitioner survey in March showed first-time buyers accounted for 53 percent of transactions, based largely on contracts offered before the $8,000 first-time home buyer tax credit became available. “Buyer traffic has been rising, and real estate offices are getting phone inquires about the tax credit,” Yun said. “By early summer we should be seeing a positive impact on home sales from record-low mortgage interest rates in addition to the stimulus provisions.”

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said first-time buyers are crucial at this stage of a housing recovery. “The housing market always heals from the bottom up, and with large numbers of first-time buyers entering the market it will become a little easier for sellers to trade up or down, according to their needs,” he said.

“Although homeownership builds wealth over the long term, buyers need to evaluate their options. In this market, buyers and sellers who use a Realtor® to represent them are making a smart move,” McMillan said.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 5.00 percent in March from 5.13 percent in February; the rate was 5.97 percent in March 2008; data collection began in 1971.

“Record-high housing affordability conditions are helping markets recover, with home sales higher than a year ago in Minneapolis, Northern Virginia, Las Vegas, Phoenix and most areas of California and Florida.”

Total housing inventory at the end of March fell 1.6 percent to 3.74 million existing homes available for sale, which represents a 9.8-month supply at the current sales pace, compared with a 9.7-month supply in February.

Single-family home sales slipped 2.8 percent to a seasonally adjusted annual rate of 4.10 million in March from a pace of 4.22 million in February, and are 5.7 percent below the 4.35 million-unit pace in March 2008. The median existing single-family home price was $174,900 in March, which is 11.5 percent lower than a year ago.

Avoid Typical Home-selling Mistakes
by Louis Batides

A house seller’s biggest nightmare is trying to sell a home to a buyer who vanishes enigmatically at some point during the transaction. Typically, when a real estate deal falls apart it is due to some good reason, and not owed to the buyers’ whim.

The usual problems that can arise call for property reviews, inspections and funding. Although as frustrating as it seems to be, the damage is generally minimal—especially when a transaction comes apart ahead of time. But with an estimable team of real estate pros on your side, a lot of the problematic issues that come about during a transaction can be settled. Some Realtors can buy your house as-is and give you the same amount that you would net if you sold the house the traditional way. Qualified, knowledgeable and trusted Realtors can absolutely give you a hassle-free home selling experience.

The typical time for a real estate transaction’s collapse is during inspections. In this case buyers ought to include a review contingency in any property purchase agreement. A home inspection will disclose and reveal the material facts and possibly a few property defects. The fact is that even brand-new houses can have issues that may not be consistent with the buyer’s expectations. Whenever defects are detected that the buyer can’t take on—and that the sellers are unable to renovate—might signify the end of the deal if other matters can’t be negotiated to compensate.

Realtors show that listing a house at a price more than a couple of percentage points higher than other comparable sales in the neighborhood is among the biggest reasons why a property will not sell. If you have a house for sale, you need to determine the home rating in your area for houses similar to yours if you want to price your home consistently with the market. Keep in mind that location is a vital factor in pricing. That is, owning the “nicest” house in the neighborhood may be important to you as the owner, but it may not warrant a hike in the home’s price point.

When you are getting your house geared up to sell, focus on making repairs and not on improvements. However, even the most pressing of repairs will only garner about 90 percent of your investment when selling. Rather than adding a bedroom or a bathroom, you can invest in a fresh new coat of paint, or you can replace worn-out carpet. Smarten up the exterior as well. Remember that the first impression your house makes is most likely to be the one that lasts the longest. And if you can’t fund the necessary improvements, then it is imperative that you find a trusted Realtor that takes action; someone who can make the deal go through quickly and who has the resources available to make it happen.

by Kristi Maloney

Chances are the words “seller’s market” will not be uttered in reference to this year’s housing market, but you may be in a position where you have to sell your house now. In this current housing market, you only have one opportunity to make a great first impression on your potential homebuyer.

We were fortunate enough to have an interior decorator walk through our home, and give us some very good (free) house staging advice as a gift to us. Here are eight tips on how to stage your house for sale.

1. Clear out the clutter in every room, every closet, and even the basement (AKA The Dumping Ground). The potential homebuyer can’t see through your mess, and shouldn’t have to imagine what your house would look like without the clutter.

To clean out our clutter, we rented a 15-yard dumpster for a couple of weeks spending about $300. It’s a freeing feeling to toss all that stuff out, believe me!

If you have items you need to keep, but space is an issue, check out the rates at your local storage facility. We are currently renting a 10 ft. x 10 ft. storage area for $75 a month. This has allowed us to clear out our basement.

2. Paint using a neutral color. Whether it’s because of a previous unusual color choice, or just to cover up scuffmarks (or your kid’s artwork), painting will really add to your home’s clean look.

3. Clean the carpets and regrout the tile. While cleaning the carpets will obviously improve the appearance of your house, regrouting the tile was something we wouldn’t have thought to do.

We have an ivory-color tile in our front entrance and bathroom and the grout was a taupe color. The decorator suggested going over the existing grout with a lighter color grout. This job is easy, but time consuming and messy.

4. Replace carpet if necessary. Our great room carpet was just over 10 years old. It was in a room with a wood-burning stove, and it was also the room where the kids hung out and made many a mess. That carpet was stained so badly that it was an embarrassment. We were long overdue for ripping it out.

The room is rather big at 20 feet by 20 feet, and we agreed that faux-wood laminate would be the best choice. We purchased the laminate at Lowe’s for about $300 (less than the price of carpet) and installed it ourselves. It was a tough, all-weekend job, but the result is a nice clean “wood” floor.

5. Evaluate the furniture and replace if necessary. Our furniture was fine with the exception of our informal dining room table and chairs, and one couch that we had in our great room. This couch was nearly as old as I was (we are the third owners) and had been covered just as many times. It was in rough shape, but it had worked out great for our two messy boys! The decorator said it was time for the couch to go. That’s where the dumpster really came in handy!

The table and chairs were outdated too, and we sold them on Craig’s List. These were stored in the storage unit, and the neutral location worked out perfectly for the sale. We spent $700 on a new couch and loveseat, and the couches were flawless overstocks.

6. Move your furniture around. The new couches were placed in our living room and the old leather living room couches were moved out into the great room.

I am no decorator, so this is where a decorator or stager’s advice is really helpful. To make the room look 100 times better, she pulled the couch away from the wall to create an “L” shape in both the living room and the great room. This one change gave the room a more intimate and inviting seating area.

8. Keep the house smelling fresh. Lighting a candle or using pledge furniture cleaner before a showing will leave the house smelling clean and fresh, but be careful not to use a scent that’s too overpowering. You want your home to smell clean and look bright.

House staging is a lot of work and can seem overwhelming, but take it one step at a time and you will get there. For the short time you remain in your house, you will enjoy the fruits of your labor. Good luck!

by Ania Tates

Hearing a lot about short sales these days? If you are a buyer, chances are you have come across several short sale properties that are listed on the market in your area. In fact, in some condo buildings or subdivisions, you’ll find that many of the properties are short sales—especially if they were purchased during 2004 through 2006 when the market was at its height.

Definition of Short Sale
A short sales occurs when the seller owes more on their mortgage than their home is worth in today’s market. The seller’s lender must approve the sale to the new buyer before the transaction can take place. The seller’s lender will write off the unpaid balance of the loan, deducting the sale price from the mortgage balance. The seller then owes nothing and can walk away from the home.

Short Sale Process
The first step in a short sale process is contacting the lender to see if the property qualifies for a short sale. If the owner/borrower has other assets that would enable them to pay off their mortgage, then the lender will not approve the short sale and he or she could get a deficiency judgment against the homeowner for the difference of the amount owed on the loan and the sale price of the home. Working with a short-sale savvy investor is key in getting your short sale approved with no deficiency judgment.

If the property does qualify, then the owner will generally contact an investment company to work with directly or list it with a Realtor and have the Realtor market the property for sale to potential buyers. Once an offer is negotiated between the seller and the buyer/investor, the offer will be presented to the seller’s lender for approval.

Who Qualifies for a Short Sale?
A seller that can prove a financial hardship and substantiate why they cannot make their current mortgage payments as a result of a job loss, wage reduction, an illness or divorce generally will qualify for a short sale providing they do not have other assets that would enable them to pay off their mortgage. A decline in home values is another reason why the seller would not be able to sell the home other than in a short sale because they would not be able to get enough money from the proceeds of the sale to pay the mortgage balance off.

Information to Provide the Lender
The lender will require a hardship letter and proof of the financial hardship such as copies of the last two paycheck stubs of the homeowner, two months of bank statements, the last two year’s tax returns and copies of W-2s or 1099s. They will also need a copy of the brokerage listing agreement and the purchase and sale agreement, and both will require the lender’s approval before the sale can be completed.

Time Frame
A short sale approval can take on average anywhere from 60 days to 90 days or longer. The lender may counter the buyer’s offer and want more money so the buyer should be prepared that even though the seller accepted the buyer’s offer it is contingent on the lender’s approval. The buyer will need to be patient. Many short sales fall apart before the lenders have even assigned a negotiator to the property because the process take so long the buyers find other properties or just get tired of waiting.

Advantages
The advantage of a short sale is that the owner can save their home from foreclosure and their credit. The seller simply walks away at the closing not owing any money on their mortgage. Of course, they have lost their equity in the property by that time. A foreclosure costs the lender on an average $50,000, so it is smarter for the lender to approve the short sale and save the time and money of going through a foreclosure proceeding. The buyer/investor generally gets to purchase a property at or below market value. It’s a win-win situation for all parties.

Disadvantages
The biggest disadvantage of a short sale is the time involved. If the seller is too far behind in their mortgage payments, there is a possibility that the home will go to foreclosure anyway—even if the lender says the property qualifies—if there is no offer from a buyer to purchase the property within the time frame needed to stop the foreclosure. There is no guarantee that the lender is going to approve the buyer’s offer anyway, and the home may still go to foreclosure.

Generally, investors are good candidates for short sale properties because they have the time and patience to wait for the lender’s decision. Even so, about half of the short sales under contract don’t close because either the buyer walks away or the bank and the buyer/investor cannot agree upon a purchase price acceptable to both parties.

However, a short sale is a much better alternative for the seller than simply waiting for the lender to foreclose on the property.

If you were to read every newspaper, magazine article or listen to television, you would probably believe that the chances of getting a mortgage are slim to none. You hear that there is a credit crunch, decreasing market values and increasing foreclosures and to buy a home right now is not a good investment. One might even think that mortgage companies, banks and credit unions are no longer lending money to people who want to purchase a home. All this information may lead you to believe this is not a good time to buy. While it is true that some of the mortgage programs that were so popular a couple of years ago are hard to find now, it is also true that mortgage credit guidelines are changing.

In the past, it was sufficient enough to have a "good" credit score in order to purchase a home and a buyer did not have to put any money down. Not anymore. Lenders are now requiring specific and complete documentation of a buyer's income to prove they can afford the payments and evidence they have the ability to make a down payment to purchase a home.

Depending on the type of mortgage financing chosen, the down payment and the mortgage rate offered is based on the loan to value financed combined with the buyer's credit score. Why? Studies have shown that a large percentage of homes that have gone into foreclosure were due to the homeowner not making enough money to afford the payment and/or had no initial down payment investment when they purchased the home. As long as a potential buyer can provide the documentation and has the ability to make a 3 percent down payment, the borrower can qualify for a mortgage.

First-time buyers can also take advantage of the $7,500 tax credit that is available if they have purchased a home from April 9, 2008, until July 1, 2009. This allows buyers, if they elect this option, to reduce income tax owed or increase the amount of the income tax refund. Borrowers must pay the money back over a 15-year timeframe with no interest charge. Please contact your tax advisor for more information on this tax credit. Another tax benefit to purchasing a home is the homeowner may be eligible to deduct mortgage interest and property taxes paid from their taxable income. Again, please contact your tax advisor for more information on these deductions and how they apply to your personal situation.

Even in these challenging times, existing home sales have been increasing. Potential home buyers are finding that falling home prices combined with low mortgage rates has increased home affordability. In August, homes sales had reached the highest level in over a year. Some economists are forecasting that Jacksonville housing market will lead the way in real estate market recovery in Florida. Home buyers should consider that when purchasing a home in today's market they need to stay in the new home for minimum of 5 to 7 years in order to reap the market appreciation.

When you take all these factors into consideration, purchasing a home is and always will be one of the strongest investments for you and building your financial future. The tax savings of owning a home is another strong consideration in favor of owning a home. Before you start the process of buying a home speak with an experienced, reputable home mortgage consultant and get preapproved for a mortgage. Getting preapproved for a mortgage will make you more knowledgeable as to how much you qualify for, what your estimated mortgage payment would be and how much money you will need to purchase a home. This will help make your home-buying process an enjoyable and exciting experience.

SOURCE: http://homes.jacksonville.com/realestate?tp=homes2.jacksonville.com&classification=mdrealestate&temp_type=detail&tl=8&document_id=425161903

Sales of existing single-family homes in Florida rose 5 percent in 3Q 2008 compared to the same period last year, according to the latest housing statistics from the Florida Association of Realtors. A total of 33,203 existing homes sold statewide in 3Q 2008; up from 31,558 during that period 2007.

"Despite lending restrictions and the difficulties of finding affordable credit, we're seeing buyers take advantage of home ownership opportunities in the current market - buyers who want to make a long-term investment in their future," said 2008 FAR President Chuck Bonfiglio. The statewide existing-home median sales price was $185,400 in the third quarter; a year ago, it was $233,200 for a decrease of 20 percent. In 2003, the third-quarter statewide median sales price was $163,700, which reflects an increase of about 13.3 percent over the five-year period.

Twelve of Florida's metropolitan statistical areas reported increased sales of existing homes in the third quarter compared to the same three-month period a year ago, while seven MSAs also showed gains in condo sales. A number of local markets have reported increased sales activity over the past few months, according to FAR. Florida Realtors continued to report positive signs for the state's housing sector in the third quarter, including an increase in pending home sales (based on contracts signed, but not closed) and a slower rate of expansion of inventory levels.

To gain insight into current trends, the University of Florida's Bergstrom Center for Real Estate Studies conducts a quarterly survey of industry executives, market research economists, real estate scholars and other experts. According to the third quarter 2008 survey, the investment outlook for various types of properties remains steady. "People who have responded to our surveys have not lost their faith in Florida as a place to be and a place to invest," said Dr. Wayne Archer, director of UF's Bergstrom Center for Real Estate Studies. "We have 40 pages of comments from our respondents, and although the dominant theme is the disruption of financing, perhaps the second theme, as one person put it, is people being on the sidelines with full pads and helmets just waiting to jump back in."

Over the long term, Florida should benefit from an influx of new residents, particularly as baby boomers age, Archer said. In the year-to-year quarterly comparison for condo sales, 9,472 units sold statewide for the quarter compared to 9,680 in 3Q 2007 for a 2 percent decrease. The statewide existing-condo median sales price was $160,000 for the three-month period; in 3Q 2007, it was $196,000 for an 18 percent decrease. Continuing low mortgage rates are another favorable influence. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 6.32 percent in 3Q 2008; one year earlier, it averaged 6.55 percent. The latest industry outlook from the National Association of Realtors cautions the housing sector likely faces disruptions from the still-stabilizing credit market.

"Inventory remains high, and price declines are pressuring owners," said NAR Chief Economist Lawrence Yun. "Additional housing stimulus would stabilize prices more quickly, which would bring faster stability to Wall Street. Removing the repayment feature on the first-time buyer tax credit and permanently raising loan limits would bring more buyers into the market and further reduce inventory."

SOURCE: http://www.northfloridanewsdaily.com/News/2008/1117/real_estate/193.html

When most buyers think of waterfront property in the First Coast, especially those relocating from another city, their first searches for a new home typically center on the Beaches or Intracoastal Waterway.

But many are pleasantly surprised to find an array of great waterfront properties miles from the ocean in Clay County - and at prices much lower than those near the sea. "You certainly get more for your money here," said Andrea Brinkman. After 14 years in Clay County, she and her family recently moved to a two-story, 5,010-square-foot custom home along the St. Johns River in the Margaret's Walk subdivision.

"Like many people, the primary reason we originally moved here was job-related," she said. "The area was close enough to downtown but offered the slower pace of suburban living we were looking for in a community." Today, with the growth of the area, she said there are now more restaurants, shopping and other amenities that kept the family in Clay County - noting the recent addition of a movie theater at Fleming Island. "Also, we were looking for a quality, custom builder and were fortunate enough to contract with J.A. Long Custom Builders," she said. "We got a great value for our dollar working with them and more value by staying in this county."

Company owner John A. Long, whose family-owned company has built hundreds of custom homes over the last 35 years, most in Clay County, said the landscapes, water elements and other environmental features in the county are accented when they design a home. "Visually, there is a broader tree canopy compared to most areas north of us in Duval County that you can capitalize on during design," Long said. "Also, lot sizes tend to be larger and there are many opportunities to build on waterfront lots. From a builder perspective, you can use and maximize the impact of all of these aesthetic elements in how you position the home on the lot and through the design phase."

Most people moving to Orange Park are attracted by the same things: proximity to work, access to a good school system, lower taxes and the family atmosphere. With waterfront properties, there are more affordable rates here than across the river. Plus, you have Doctor's Lake, which is more protected. It's much easier to access by jet skis and small boats and also offers a safer boating experience for families.

Orange Park actually has more waterfront opportunities than the Beaches or the Intracoastal. You have the St. Johns River, which puts you only 35 minutes from a football game downtown or a little longer to reach the ocean, and you also have Doctors Lake and even Black Creek, where you can jet ski and fish. Clay County is actually more of a boater's paradise - and in more ways than one.

by Bob Lipply

Moving to the “Sunshine State” is a dream for many retirees, families and singles. With tropical weather in most parts of this giant peninsula, and miles of beaches, it's easy to daydream about a home with orange and palm trees, Spanish moss and friendly neighbors. If you're wondering how to pick out your dream property in Florida, then keep some of these tips in mind.

Florida is eclectic. It's true that some Floridians are living the lifestyle stereotype, but most residents will tell you that every community is completely different. Be sure to research the different areas of Florida to make sure you are selecting a development or town that has the atmosphere you are looking for.

Choose river and lake properties over pure beach ones. To keep from spending phenomenal amounts on insurance and property, try to live a little further inland. Buying Florida properties five miles or more inland will save you thousands.

Basements and extra space are rare. Wet weather and sandy soil make it almost impossible to build homes with below-ground footage. Many Florida real estate agents will suggest that their clients, who are relocating from out-of-state, trim down their belongings before arriving. Winter necessities are unnecessary for most of Florida. This is usually the first kind of belonging an agent will tell you to scale down.

The stereotype of the hyperactive condo board or homeowner association is a reality for many planned and gated communities, and condo complexes in Florida. If it is possible to talk to a few of the residents before purchasing a property in one of these structured developments, then do so. Try to get a feel for how the governing board conducts itself. Always read all the fine print on the homeowner association agreement, so you know what your responsibilities might be. Should you find the rules to be too strict for your comfort, there are always non-deed-restricted communities in which to live in Florida.

Get familiar with some common terminology. Most properties in Florida are built out of CBS, or concrete block and stucco that protect homes from humidity, wind and pests. Also, be sure to ask your real estate agent about Florida's Homestead Property Tax Exemptions. Many residents qualify for serious deductions on their property tax, but they have to make sure they are proactive to get them.

Florida has a town, a coastline and numerous attractions for people of every age, occupation and background. Consider the characteristics of each area of Florida, and then try to narrow things down to a few areas. With the right research, you can find the perfect Florida real estate property in the right community for you.

(NAPSI)—Even in today’s real estate market, it’s still all about location, location, location. Since nine out of 10 homebuyers start their search online, this is especially true when selecting a real estate Web site, or the right Web address, to find your new address. If you’re thinking about buying a home, learn the secrets smart buyers are using to find the right home at the right price in the right neighborhood.

Knowing where and how to look is essential right now. Is the market you’re looking in hot or not? Some markets are hotter than others and that means more competition for the really great high-value buys.

“Recently, home prices have softened in many local markets and inventory levels are above normal, creating great conditions for smart buyers looking for values,” said Realtor.com president, Errol Samuelson. “Our data in early 2009 shows many markets are experiencing dramatic year-over-year increases in search activity on Realtor.com. Markets like Miami, San Diego and Phoenix-Mesa are just a few attracting significant interest by potential buyers.”

Smart Deals for Smart Shoppers
How do you know a good deal when you see it? Some sites, like Realtor.com, offer home valuation features and neighborhood data to help you understand trends in local markets. Use these features to see how a listing compares with nearby, comparable properties in terms of value, actual sales prices, home features, neighborhood characteristics and more. In many markets, through Realtor.com’s Find Home Values, you’ll see what buyers paid for similar properties that sold recently, and you’ll find the area’s most active Realtors®.

Find an Expert
Finding a great Realtor makes the difference in locating, making the right offer on and closing on the home of your dreams. It’s easy to find the right Realtor on Realtor.com, including those specializing in representing buyers in your neighborhood.

Get the 411 Before You Step Inside
It’s difficult to know much about a community from an online listing. But schools, crime and proximity to shopping and work all impact property values. So, talk to a Realtor and go to Realtor.com’s Find Neighborhoods to explore what may become your new community. Also, save time by looking at photos, videos and virtual tours, leaving time for personal tours of a home closer to your liking.

Are the Property Details Reliable?
Buyers need to know when a listing has experienced a price change. Realtor.com updates most listings every 15 minutes with information, including price changes. Fresh and reliable information is critical and only Realtor.com time-stamps listings so buyers can make better-informed decisions. By requesting an e-mail alert, smart buyers stay on top of changes so they can be first to act.

Technology and the challenges of today’s real estate market have made buying a home very different than it was five years ago. Values and opportunities abound if you know how and where to find them. Smart buyers are putting online technology to work in ways today that’ll bring them closer to the home of their dreams tomorrow.

Information derived from: Custom House Publishers, Inc.

For a limited time home buyers can claim a special tax credit worth up to $8,000. The American Recovery and Reinvestment Act offers qualifying homebuyers a tax credit equal to 10 percent of a home's purchase price, up to a maximum of $8,000. The tax credit is offered to first time homebuyers, and those who have not owned a principle residence in the past three years. To be eligible for the tax credit, the home purchase must be recorded between January 1 through December 1, 2009.

The full tax credit is offered to buyers with reported income up to $75,000, or $150,000 for married couples filing a joint return. Partial tax credits are available to for those with income levels up to $95,000, or $170,000 for those filing jointly. Contact us today for more details on this exciting program!

Existing Home Sales Rise

The National Association of REALTORS (NAR) reported that existing home sales increased 5.1 percent in February, reversing the trend from the previous month. Total housing inventory for sale rose 5.2 percent in February, representing a 9.7-month supply at the current sales pace. Existing home sales — including single-family, condos, co-ops and townhomes — are projected at 4.72 million units for 2009, up from 4.49 million units projected in late February.

According to Lawrence Yun, NAR chief economist, "Because entry level buyers are shopping for bargains, distressed sales accounted for 40 to 45 percent of transactions in February." Yun also referred to strong improvements made in the West, including California, "where the median listing price is beginning to rise for the first time in three years."

Pending home sales have edged up, hinting at a possible pickup of sales activity in coming months, according to the National Association of Realtors®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in February, rose 2.1 percent to 82.1 from a reading of 80.4 in January, but is 1.4 percent below February 2008 when it was 83.3.

Lawrence Yun, NAR chief economist, said the market is continuing to underperform. “Pending home sales have a way to go for there to be a meaningful increase, but recent increases in shopping activity are hopeful indicators that we’ll see additional sales gains,” he said. “More buyers are getting into the market to take advantage of stimulus incentives and much improved housing affordability conditions, but it will take a few months before we could see this turn up in measurable sales contract activity.”

Also in February, NAR’s Housing Affordability Index rose to a new high.

The PHSI in the Northeast rose 10.6 percent to 63.9 in February but is 11.2 percent below a year ago. In the Midwest the index jumped 14.5 percent to 83.1 and is 3.4 percent higher than February 2008. The index in the South rose 4.4 percent to 85.8 in February but is 0.1 percent below a year ago. In the West the index fell 13.5 percent to 89.6 and is 1.7 percent below February 2008.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said home buyers are in an excellent position. “The drop in mortgage interest rates and home prices mean the buying power of a typical family has never been better,” he said. “If you have a good job and long-term plans, it’s unlikely that you’ll find a much better time to buy a home. This is especially true for first-time buyers who can qualify for an $8,000 tax credit this year, have a great selection of homes to choose from, and are in a favorable negotiating position.”

NAR’s Housing Affordability Index rose 0.9 percentage points to a record high of 173.5 in February from an upwardly revised index of 172.6 in January, and is 36.3 percentage points higher than a year ago. The HAI, a broad measure of housing affordability using consistent values and assumptions over time, shows that the relationship between home prices, mortgage interest rates and family income is the most favorable since tracking began in 1970.

A median-income family, earning $59,700, could afford a home costing $285,600 in February with a 20 percent down payment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small down payments are roughly 80 percent of that amount. The affordable price is considerably higher the median existing single-family home price in February, which was only $164,600.

“Obviously, potential home buyers need to be managing their existing debt effectively,” McMillan said. “A Realtor® can counsel you on what you may be able to afford given your personal financial situation. In some cases, buyers who want to build their future through homeownership may need to start reducing their debt and improving their credit score before entering the housing market.”

Last year at this time, the typical family could afford a home costing $265,600, which is $20,000 less than the current affordable price. “Homes in many areas are now selling for less than replacement construction costs—clearly this is an abnormal situation which will change once inventory is drawn down and supply and demand come closer into balance,” McMillan said.

Yun said he expects housing inventories to rise through early summer from a normal seasonal pattern of more sellers appearing in the spring. “But with the positive housing stimulus incentives now in place, we expect home sales to gain momentum in the second half of the year with first-time buyers absorbing a lot of the excess inventory,” he said. “Under these conditions, we should see price stabilization in most markets by the end of the year.”

SOURCE: Article derived from Custom House Publishers, Inc.
Date Added: 4/2/2009

(NAPSI)—As more Americans face difficulty making their mortgage payments, scam artists are becoming increasingly sophisticated and brazen in their efforts to squeeze the last few dollars from desperate homeowners.

For a fee, these individuals promise to help save homes from foreclosure, but either they charge a high price for services that can be obtained for free from a qualified nonprofit counseling agency—or deliver little or nothing for the money received.

There are various forms of foreclosure fraud scam, but the most prevalent ruses fit into three categories:

1. Phantom Help—Phony mortgage consultants charge high fees for work the homeowners could either easily do themselves or at no cost through a nonprofit counseling agency approved by the U.S. Department of Housing and Urban Development.

2. Bogus Bailout—Homeowners sign over title to their property after being tricked into believing they can stay in their homes and rent back from the scammers with the option of eventually buying back their homes.

3. Bait and Switch—Homeowners think they are signing new mortgage papers that will solve their foreclosure problems when, in fact, they are deceived into signing over the deeds to their homes.

The so-called foreclosure rescue “consultants” or “specialists” are even taking a mass-market approach, running ads in newspapers and on talk radio and television. According to Rick Harper of the Consumer Credit Counseling Service of San Francisco, “In addition to advertising on radio and television, many scammers target homeowners by soliciting them at community events and with flyers. Some scammers are using the public records information to directly target troubled homeowners for personal contact by knocking on doors, direct mailings or phone calls.”

If you are behind on mortgage payments, contact your lender or a HUD-approved nonprofit counseling agency, such as Consumer Credit Counseling Service, to obtain free advice. To help prepare for conversations with either your lender or a nonprofit counseling agency, visit a Web site such as the one sponsored by PMI Mortgage Insurance Co. at www.HomeSafePMI.com. In addition, HUD maintains a list of approved housing counselors available at www.hud.gov, or you can call (800) 569-4287 to locate a counseling agency near you.

SOURCE: Article derived from Custom House Publishers, Inc.
Date Added: 3/27/2009