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November 28, 2007
Calfornia Home Sales Down 40%
Home sales decreased 40.2 percent in October in California compared with the same period a year ago, while the median price of an existing home fell 9.9 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
“Financing issues have dogged entry-level buyers since early 2007, but they spilled over into the middle and upper-tier markets in the last few months,” said C.A.R. President William E. Brown. “The decline in sales at the upper end of the market contributed to a significant decline in the statewide median price as even well-qualified borrowers had difficulty securing financing.”
Closed escrow sales of existing, single-family detached homes in California totaled 265,030 in October at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity decreased 40.2 percent from the 443,320 sales pace recorded in October 2006.
To read the entire article click here.
Posted by Jeff at 7:40 PM | TrackBack
November 27, 2007
Mortgage Cancellation Debt Relief Legislation
Another piece of legislation that REALTORS® have been advocating for to help struggling homeowners is H.R. 3648, the Mortgage Forgiveness Debt Relief Act of 2007. If a homeowner must sell a property due to financial problems or through a foreclosure and is unable to repay the full amount of any outstanding mortgage debt, the lender may forgive some or the entire shortfall (this is known as a “short sale”). When some portion of a debt is forgiven, income tax is imposed on any amount that a lender forgives.
H.R. 3648 would remove taxes from mortgage cancellation relief provided on a mortgage on a primary residence. The tax relief would apply only to the original purchase price, plus personal improvements of a primary residence, and would not cover any amount over the original purchase price if a loan has been refinanced with a “cash out” option.
H.R. 3648 was marked up to cost $2 billion over 10 years. Under the 110th Congress’ Pay As You Go rules, and in order to offset this loss in revenue, H.R. 3648 made changes to corporate estimated tax rates and to rules governing second homes that are converted into primary residences.
H.R. 3648 passed through the House Ways & Means Committee on September 26 by a unanimous voice vote and will now head to the full House for a vote.
Posted by Jeff at 10:58 AM | TrackBack
November 22, 2007
What Buyers Buy and Why
The NATIONAL ASSOCIATION OF REALTORS® recently released its 2007 NAR Profile of Home Buyers and Sellers. The Profile reports on results from a survey of consumers who recently purchased or sold a home (or both) that was conducted by NAR Research. Analysis of the results validate what many real estate professionals already know: people don’t just buy a house or a condo – they purchase a home.
To learn what NAR found out about buyers, their motivations, and what they're looking for in a home click here.
Posted by Jeff at 10:36 AM | TrackBack
November 8, 2007
Fed Chairman Proposes New Mortgage Guarantees
As Congress and the financial services industry struggle to cope with rising mortgage defaults and a deepening housing slump, Federal Reserve Chairman Ben Bernanke Wednesday proposed that the federal government guarantee so-called “jumbo” home loans worth up to $1 million.
Bernanke proposed that so-called “government sponsored entities” like Freddie Mac and Fannie Mae pay mortgage insurance fees to the federal government. These GSEs would then guarantee loans that are larger than the current $417,000 limit on so-called “conforming” mortgages
Read the entire story here.
Posted by Jeff at 7:28 PM | TrackBack
November 5, 2007
Five Tips to Sell Homes Quickly, for the Highest Valuation
Despite grim news in the media noting the pending home sale index has hit a record low, and it “hasn’t hit rock bottom yet”, savvy home sellers have discovered the secret to selling their homes.
Here are a few ways strategic thinkers prepare to sell their homes:
– Pre-Sale Home Inspections. These inspections allow sellers to identify and repair problems rather than lose money during the sale. Statistics show that for every $1 of identified repairs, the buyer would ask for double that in a price reduction. Paying $5,000 to repair a roof is far more enticing than losing $10,000 in the sale.
– Neighborhood Environmental Reports. These reports provide important information on known and potential contamination that may exist on or in the vicinity of a property. The seller could use this information to ensure buyers that the home is in an environmentally safe neighborhood.
– An overview of the neighborhood’s assets. A list of the neighborhood’s assets can help sellers market the area’s positive attributes along with those of the home. Nearby schools, parks, community pools or other features can add value for a buyer.
– Minor interior cosmetic enhancements. Upgrading or enhancing elements in a home gives potential buyers the feeling that they can move in and feel comfortable in the home right away. Besides making kitchen and bathroom upgrades and cleaning floors and windows, the entry way should be well lit, clean and uncluttered, as it’s the first room a potential buyer evaluates.
– Minor exterior cosmetic enhances, curb appeal. Establish the right first impression by making a home’s exterior more appealing. Make certain the lawn is green and mowed. Evaluate any stone walkways to be certain they’re even. Plant flowers to add color and vibrancy.
