December Market Snapshot

So, what is happening in our local real estate market? Well, with inventory down 30% in November, over November 2010, the market remains surprisingly consistent and is showing strong signs of recovery.

Denver Area Market Inventory Down 30%

The number of unsold homes on the Denver-area market plummeted 30 percent in November from a year earlier, likely the biggest year-over-year drop in the metro area’s history.
“The headline is that the inventory is down 10 percent on a month-to-month basis and down 30 percent year-over-year,” said independent broker Gary Bauer who today released a housing report based on Metrolist data.

There were a mere 14,275 unsold homes on the market last month, compared with 20,392 in November 2010 and 15,794 in October.

“It is unbelievable,” said Peter Niederman, CEO of Kentwood Real Estate.

The last November there were fewer unsold homes in the market was in 2000, when there were only 10,282 homes listed by area Realtors.

The unsold inventory peaked at 31,989 in July 2006.

Bauer said he believes the 30 percent drop is the largest ever. Still, he said it is a good news-bad news story.

“The good news is that there are still buyers out there,” Bauer said. “The bad news is they have less to choose from. Long-term, if this trend continues, we may have some real concerns for the market. This might be a very good idea for people who were holding off putting their home on the market until next year to consider to do so now, because there is so little to choose from.”

By the numbers

Other than the drop in inventory, the other metrics were not too bad:

• There were 3,365 homes placed under contract, a 12.5 percent drop from October, largely for seasonal reasons, but up 8.5 percent from the 3,101 in November 2010.
• In the first 11 months of the year, 44,541 homes have been placed under contract, down 4.5 percent from the 46,621 during the same period last year.
• Closings were even better. Some 3,068 homes closed in November, up 15 percent from the 2,666 in November 2010, and down 3.6 percent from October.
• In the first 11 months of the year, 36,231 homes have sold, 1.2 percent more than the 35,794 during the same period in 2010.
• Total sales volume is up slightly to $9.2 billion, compared with $9.1 billion in the first 11 months of 2010. Single-family homes accounted for $8.1 billion of the sales volume this year, while condo sales were unchanged at $1.1 billion from 2010.
• The average price of a single family home that closed in November was $275,951, compared with $281,466 a year earlier and $269,503 in October.
•  The median price of a single-family home that closed in November was $230,300, compared with $233,990 in November 2010 and $226,021 in October. The median price of a condo was $125,000, unchanged from October of November 2010.

“Every metric, other than the inventory, is relatively stable,” Niederman said.

“I think we are seeing such a big drop in inventory is because a lot of people are saying they are going to take a wait-and-see attitude, before they put their home on the market,” Niederman said.

Niederman expects another big drop in the inventory in December, but more consumers may brave listing their homes in early 2012.

“It will be really interesting to see what happens in January,” Niederman said. “A lot of people will not put their homes on the market between now and the end of the year before the holiday season.”

Niederman said that he thinks that home prices are doing better than the numbers reflect.

The overall prices are being dragged down because of haircuts sellers of $1 million-plus homes are taking, as well as short-sales at the lower end, in which the bank agrees to accept less than the mortgage amount.

“There are also some REOs, that is foreclosures, also hurting the overall prices,” Niederman said. “I think if you look at homes with conventional loans, those at $417,000 are below – or typically homes that sell for $470,000 or less – you will find they are very stable or even appreciating a bit. We have even seen bidding wars, but probably only out of 1 out of every 10 sales.”

Bullish on 2012

Shannel Ryan, sales manager at Fuller Sotheby’s International Realty Denver, is quite bullish on the Denver-area housing market in 2012.

“We are starting to see a little increase in consumer confidence and that affects not only the buy side, but the mind-set of the seller as well,” Ryan said. “More and more, I think people are seeing that if they are a losing a little bit as a seller, they will more than make up for it by buying right. No offense, but part of the problem is that people read all of these negative reports in the media. But the overall market here in Denver and Colorado is not as bad as the picture being painted.”

Although since all real estate is local, different pockets of the market will out-perform others.

“On a micro-level, it makes a difference whether you are in Castle Pines Village or City Park,” Ryan said. “We can’t get enough homes to sell in Country Club and Hilltop, but in a gated community like Castle Pines Village, you need to expect that the days on market for a home will be quite a bit longer.”

New home market filling resale void

One silver lining to the dearth of supply of previously owned homes is that a lot of consumers appear gravitating to new homes.

“We are hearing a lot of comments from our builder members that there are just not a lot to choose from in the resale market,” said Jeff Whiton, CEO and President of the HBA of Metro Denver.

“I heard from a lot of our members in November that they were seeing a big increase in traffic from people considering new homes,” he added. “A lot of new homes being constructed by home builders are Built Green or Energy Star-designated homes and those are really gaining traction for in the market.”

It’s not just entry level new homes that are selling, as it has been during the past few years.

“I was talking to one builder last night who said he is seeing a lot of activity in the $450,000-plus market, which had been kind of the hardest-hit part of the market,” Whiton said.

The number of new homes being sold have been accounting for about 11 percent of all homes that have been sold, half of where they were at during the buying frenzy of the mid-2000s.

“I think we are going to start seeing the new housing market penetration pick up again,” Whiton said. “Our objective is to get it back up to 20 percent or 22 percent. I can’t really predict when that will happen, but I do see it climbing right now.”



Chris Mygatt, president of Coldwell Banker Residential in Colorado, called described the low inventory number as “remarkable.”

He said that a big part of the low number is a Denver-area economy that while not robust, is better than many places in the country.

“I think because of our relatively decent employment picture those who do not have to sell their homes are going to wait-out the market,” Mygatt said.

Meanwhile, the low inventory numbers are putting upward pressure on prices, he said.

“In that respect, a low-inventory is healthy,” he said.

Last year, he noted, the first half of the year was driven by “those amazing tax credits. The second half of the year was simply devastated,” he said.

He said is it is a testament to the Denver market that without tax credits, sales are slightly ahead of where they were at this time in 2010.

Niederman noted early in 2011, most observers were predicting an over-supply of homes on the market, not a shortage.

The only question was not if Denver and other markets were going to be enveloped by the shadow market – homes held by banks not yet on the market – but the magnitude of the shadow.

“It didn’t happen,” Niederman said. “And I hear that next year we will see a big drop in foreclosures, mostly replaced by short sales. Lenders are realizing that they lose less money in a short sale than in a foreclosure. They might get 75 cents on the dollar for a short-sale, compared with 65 cents for a foreclosure. And if they do a foreclosure, the house sits vacant and they have to hire a property management company. It’s better for banks to keep someone in that house.”

Early in the year, Niederman predicted that 2011 would be slightly better than 2010, at a time when many thought the market was heading off the cliff.

His prediction appears to be on the money, despite a number of unexpected events that have roiled the markets, primarily the economic turbulence in Europe.

“I’m glad that I took a contrarian point-of-view when there was so much doom and gloom in the market,” Niederman said.

Contact John Rebchook at JRCHOOK@gmail.com

Market Snapshot: November 2011

Market Snapshot: November 2011

So what is happening in our local real estate market? The prime selling and buying season, finished strong with the inventory contining to dwindle. Home prices remain stable and show slight increases while Days on Market, DOM, remain stable as well.

For a more detailed report on your specific area, visit: Home Market Report or call 303-300-8989, to speak with us directly.

 

 

 

Denver, CO - Freshest New Home Sales Numbers Climb Year-Over-Year After Drop Last Month

In the Denver, CO market, sales of new homes rose year-over-year in August, moving up after a decline in July 2011. Sales gained 13.4% from a year earlier to 331, relative to a 4.6% decline in July from the year earlier.
In the 12 months ending August 2011, there were 3,521 new home sales, up from an annualized 3,482 in July.
Of the total number of sales, new home sales made up 6.8%. A year earlier, new home sales accounted for 7.1% of total sales. Sales of new and existing homes increased year-over-year in August after also rising in July year-over-year.

Pricing and Mortgage Trends

In August, the average price for new home sales was $347,159, an 8.8% decline from last year. This decline is less significant than the 6.1% decline in July from a year earlier.
For newly sold homes, the average mortgage size saw a drop year-over-year along with new home prices. In August 2011, average mortgage size on new homes sold was $280,639, down 11.9% from a year earlier. In July 2011, average mortgage size on newly sold homes saw a 12.7% fall from a year earlier. The overall percentage of sale price that was being financed slipped 2.9 percentage points year-over-year to 80.8% in August 2011.

Source:Housing Intelligence

October Market Snapshot

So what is happening in our local real estate market? With the  first full year, with no artificial stimulous to prop up the housing market.. the news remains surprisingly consistent and strong.

 

MBA Shows Mortgage Applications Increase

MBA Shows Mortgage Applications Increase

RISMEDIA, Saturday, October 15, 2011— Mortgage applications increased 1.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 7, 2011. The Market Composite Index, a measure of mortgage loan application volume, increased 1.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 1.3 percent compared with the previous week. The Refinance Index increased 1.3 percent from the previous week. The seasonally adjusted Purchase Index increased 1.1 percent from one week earlier. The unadjusted Purchase Index increased 1.2 percent compared with the previous week and was 2.9 percent lower than the same week one year ago. The increases were driven mainly by the government loan category, with the Government Purchase index up 2.4 percent and Government Refinance index increasing 9.9 percent. The Conventional Purchase and Refinance indexes increased 0.1 percent and 0.2 percent, respectively. The four week moving average for the seasonally adjusted Market Index is up 1.56 percent. The four week moving average is down 0.51 percent for the seasonally adjusted Purchase Index, while this average is up 2.15 percent for the Refinance Index. The refinance share of mortgage activity remained unchanged at 79.1 percent of total applications from the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.0 percent from 6.4 percent of total applications from the previous week. The average loan size of all loans for home purchase in the US was $210,863 in September 2011, down from $212,736 in August 2011. The average loan size for a refinance was $237,632, down from $241,323 in August. The largest purchase loans were made in the Pacific region at $ 302,110. The largest refinance loans were also made in the Pacific region at $ 339,592. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 4.25 percent from 4.18 percent, with points increasing to 0.47 from 0.44(including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also increased from last week. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 4.59 percent from 4.49 percent, with points increasing to 0.49 from 0.41 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also increased from last week. The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.06 percent from 4.05 percent, with points decreasing to 0.58 from 0.69 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also decreased from last week. The average contract interest rate for 15-year fixed-rate mortgages increased to 3.53 percent from 3.49 percent, with points remaining unchanged from 0.45 (including the origination fee) for 80 percent LTV loans. The effective rate also increased from last week. The average contract interest rate for 5/1 ARMs increased to 3.03 percent from 3.02 percent, with points increasing to 0.54 from 0.41 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also increased from last week. For more information, visit www.mortgagebankers.org.

Dispelling the 20 Percent Downpayment Myth

In my column last month, I discussed a government proposal that could have significant impact on the future of the housing industry: the QRM, or Qualified Residential Mortgage, as part of the Dodd-Frank Act. According to the proposed QRM definition, lenders must hold 5% of the risk of any given residential loan unless it is considered a QRM, which is a loan that has a 20% downpayment and meets other debt-to-income and borrower credit history requirements.

Market Snapshot: September 2011

So what is happening in our local real estate market? The prime selling and buying season, finished strong with the inventory contining to dwindle. Home prices remain stable and show slight increases while Days on Market, DOM, remain stable as well.

For a more detailed report on your specific area, visit: Home Market Report or call 303-300-8989, to speak with us directly.

Market Snapshot: August 2011

So what is happening in our local real estate market?  This being prime selling and buying season, the inventory has continued to dwindle.  Home prices remain stable and show slight increases while Days on Market, DOM, remain stable as well.  The condominium market has taken a downturn for the month of July in price.  DOM for condominiums is down over June's numbers, however.

For a more detailed report on your specific area, visit: Home Market Report or call 303-300-8989, to speak with us directly.

5 Inexpensive Home Updates to Complete before Listing Your Home

5 Inexpensive Home Updates to Complete before Listing Your Home

RISMEDIA, August 11, 2011—There is no perfect formula for selling your home efficiently, but by following these five tips prior to listing you can increase your chances to close quickly at a higher price.

1.) Update your old garage door(s). Garage doors seem like a non-issue, but many times they make up a significant percentage of the front of a home. Because of this, they are one of the first things that buyers notice when they pull in the drive way. Replacing, or even just painting, these central fixtures will do wonders when it comes to instantly impressing perspective buyers and standing apart from your competition. The market has changed drastically since many of us purchased our homes here in town. I frequently hear buyers say that they have taken a house off their list because of the lack of curb appeal. This issue is especially important to people on busier streets, corner lots, or near a neighborhood eyesore.

2.) Replace old windows. Outdated windows age a home significantly, and you can often upgrade standard windows to vinyl for a reasonable $300 per window. The average home has 8 windows, so this upgrade doesn't cost nearly as much as you might think and it will make a huge difference to the value perceived by prospective buyers. Key point to remember is that when buyers view a home they love, if they see it has older windows, they consider it a time consuming and costly headache. First time buyers have never replaced windows and often dramatically overestimate the cost to cure this issue. By replacing pre-listing you an actually save money. A well priced, move-in condition home will sell for far more than one with windows in need of repair.

3.) Assess your floors . If you have hardwood flooring, it's worth the investment to have them refinished considering buyers put an extremely high value on them; you'll get the most bang for your buck if they are refurbished. Carpets should be shampooed and replaced if they are stained or look worn. You don't need to spend large amounts of money on the highest grade or most modern name but something inexpensive and neutral will certainly bring you a return on the investment. Even the smell of new carpet will make buyers set your home apart from the comparables.

4.) Paint the trim. If you can't afford the daunting task of painting your entire house, painting just the trim will still make a big difference when it comes to curb appeal. Painting the whole house can be expensive, time consuming, and delayed by weather conditions; painting just the trim will give your home a fresher look. Interior trim is equally as important.

5.) Update fixtures. Keep an eye out for sales at home improvement stores and replace outdated lighting, plumbing and hardware fixtures. Simple replacing lighting fixtures and knobs in the bathroom or kitchen can update the entire look of the room. You can find many modern brand name fixtures online on contractor supply websites by just searching for terms like sale faucets, sale plumbing fixtures etc.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
Cynthia M. Parker, ABR®, SFR®, CDPE®
Broker Associate
"Marketing your home for all it's worth"!

RE/MAX Alliance
Office: (303) 757-7474
Mobile: (303) 563-9700
Fax: 866-673-0053
E-mail: cynthia@cynthiamparker.com
Web site: http://www.CynthiaMParker.com

BUYERS: "Find out how to buy a home for as little as $ 100 down"...visit: http://www.FreeCOHomeInfo.com
SELLERS: "Find out what the home down the street from you just sold for"... visit: http://www.HomePricesInYourArea.org

* Oh, by the way, if you know of someone who would appreciate the level of service I provide, please call me with their name and business number. I'll be happy to follow up and take great care of them.

Louisville, Colorado is # 1 on "MONEY's 100 Best Places to Live in America"

MONEY Magazine Reveals Annual "MONEY's 100 Best Places to Live in America" RISMEDIA, Tuesday, August 16, 2011— “MONEY” magazine has revealed the 2011 list of "MONEY's 100 Best Places to Live in America," highlighting small towns across the country with populations of 50,000 or less. For the annual cover-story, on sale August 19, MONEY looked for places with the optimal combination of job opportunities, fiscal strength, top-notch schools, safe streets, good healthcare, cultural and outdoor activities, and even nice weather.

MONEY's editors write, "With the current state of the economy—and the dispiriting sight of the nation's leaders endlessly battling about how to fix it—the phrase 'small town' conjures up images of a happier time. When unemployment wasn't above 9%. When people didn't stress out about home values. When school budgets weren't under siege. Those were the days, right?"

Louisville, Colorado tops this year's list at number one. Twenty-three miles outside Denver, Louisville has a strong economy, stable housing and lots to do. Louisville has some of the lowest crime rates in Colorado and was also ranked No. 1 in 2009 when MONEY assessed places with populations of under 50,000. There are good jobs in Louisville in the tech, telecom, aerospace, clean energy, and healthcare space.

Additionally, MONEY editors report that businesses are flourishing in the historic downtown district writing, "This summer alone saw the opening of three restaurants, a rooftop bar, a coffee shop, a yoga studio, a gift shop, and two art galleries. And world-class outdoor recreation is a short drive away."

MONEY's 2011 top-ten list:
1. Louisville, CO http://cnnmon.ie/pZGV36
2. Milton, MA http://cnnmon.ie/pVK3gT
3. Solon, OH http://cnnmon.ie/njtiIa
4. Leesburg, VA http://cnnmon.ie/r2j6KD
5. Papillion, NE http://cnnmon.ie/nuHOEl
6. Hanover, NH http://cnnmon.ie/qIHOVD
7. Liberty, MO http://cnnmon.ie/pnxqf5
8. Middleton, WI http://cnnmon.ie/ntBOjr
9. Mukilteo, WA http://cnnmon.ie/nbZB6M
10. Chanhassen, MN http://cnnmon.ie/okTt1D

For more best places to live, visit www.Money.com/BestPlaces.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2011 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission.

Program Helps Military With A Grant Up to $5,000

RISMEDIA, July 28, 2011—A nationally recognized nonprofit organization working to meet the unmet needs of military personnel and their families, is offering financial help to eligible first-time home buyers through its Dream Makers program.

Active duty personnel, veterans and retired members of the military, as well as employees of the U.S. Department of Defense and the Department of Homeland Security, qualify for a grant up to $5,000 to use on down payments and closing costs when buying their first home.

“Members of the military often put off buying a home earlier in their careers because they’re moving around the country a lot,” says Kate Kohler, former Army captain and chief operating officer for the PenFed Foundation. “We want to make sure they have resources to add immediate equity into their home when they decide to buy and the Dream Makers program helps make that possible.”

In today’s housing market, there has seen a slowdown in the number of veterans applying for the program, so it is redoubling its efforts to help both active duty members and veterans learn about the Dream Makers program.

For more information on the Program and see if you qualify, visit:  http://www.cynthiamparker.com/zerodown.asp    and in the details section, type "5k Grant Info"

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Federal Housing Finance Agency Reports Mortgage Interest Rates

RISMEDIA, July 29, 2011— The Federal Housing Finance Agency recently reported that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some ARM contracts, was 4.62 percent based on loans closed in June. This is a decrease of 0.12 percent from the previous month.

The average interest rate on conventional, 30-year, fixed-rate mortgage loans of $417,000 or less decreased 13 basis points to 4.79 percent in June. These rates are calculated from the FHFA’s Monthly Interest Rate Survey of purchase-money mortgages. These results reflect loans closed during the June 24-30 period. Typically, the interest rate is determined 30 to 45 days before the loan is closed. Thus, the reported rates depict market conditions prevailing in mid- to late-May.

The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 4.61 percent in June, down 14 basis points from 4.75 percent in May. The effective interest rate, which reflects the amortization of initial fees and charges, was 4.74 percent in June, down 13 basis points from 4.87 percent in May.

This report contains no data on adjustable-rate mortgages due to insufficient sample size. Initial fees and charges were 0.94 percent of the loan balance in June, up 0.09 percent from 0.85 in May. Twenty-eight percent of the purchase-money mortgage loans originated in June were “no-point” mortgages, matching the share in April and May. The average term was 28.2 years in June, up 0.3 years from 27.9 years in May. The average loan-to-price ratio in June was 76.3 percent, down 0.1 percent from 76.4 percent in May. The average loan amount was $219,100 in June, down $3,800 from $222,900 in May.

For more information, please visit www.fhfa.gov.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Market Snapshot.: July 2011

As I stated in my appearance on The Denver Channel, properties currently under contract have had a year over year improvement of 22.5%.  This is important because it is the first market data over the span over 1 full year, without any artificial market influences like federal tax incentives, etc.   Denver is a market poised for great gains. Consistently making it's ranking in the top 10 markets according to the latest Case-Shiller Index and ranked number one of the cities between both coasts.   While I remain cautiously optimistic, I think there are signs of life in the Denver Metro real estate market.  With rental units at a vacancy rate below 5% (the lowest in more than a decade), the argument for potential buyers entering or reentering the market place becomes even more compelling. 

For a more detailed report on your specific area, visit: Home Market Report or call 303-300-8989, to speak with us directly.

 

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Bankrate: Mortgage Rates Hit a 2-Month High

Bankrate: Mortgage Rates Hit a 2-Month High

RISMEDIA, Monday, July 11, 2011— Mortgage rates increased for the second week in a row, with the benchmark conforming 30-year fixed mortgage rate now 4.79 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.32 discount and origination points. The average 15-year fixed mortgage stepped up to 3.9 percent while the larger jumbo 30-year fixed rate climbed to 5.27 percent. Adjustable rate mortgages were higher also, with the average 5-year ARM rising to 3.49 percent and the 7-year ARM inching higher to 3.72 percent. Mortgage rates increased for the second week in a row and the third time in the last four weeks. Better economic news and an easing of concerns about a potential Greek debt default spurred this week's move, pushing mortgage rates to a two-month high. Mortgage rate volatility could pick up in the coming weeks as investors grapple with the state of the U.S. economic recovery, quarterly corporate earnings, and a deadline for increasing the debt ceiling. The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.79 percent, the monthly payment for the same size loan would be $1,048.12, a difference of $193 per month for anyone refinancing now. For more information, please visit www.bankrate.com. realestatemagazinefeedback@rismedia.com.

Pending Home Sales Turn Around in May...

Pending Home Sales Turn Around in May

RISMEDIA, Tuesday, July 05, 2011— Pending home sales rose strongly in May with all regions experiencing gains from a year ago, pointing to higher housing activity in the second half of the year, according to the National Association of REALTORS®. The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 8.2 percent to 88.8 in May from an upwardly revised 82.1 in April and is 13.4 percent higher than the 78.3 reading in May 2010. The data reflects contracts but not closings, which normally occur with a lag time of one or two months. This is the first time since April 2010 that contract activity was above year-ago levels, and the monthly gain was the strongest increase since last November when the index rose 10.6 percent. Lawrence Yun, NAR chief economist, says the improvement bodes well for home prices. “Absorption of inventory is the key to price improvement, and this solid gain in contract signings implies that home values in many localities are or will soon be stabilizing as inventories get absorbed at a faster pace,” he says. “Some markets have made a rapid turnaround, going from soft activity to contract signings rising by more than 30 percent from a year ago, including areas such as Hartford, Conn.; Indianapolis; Minneapolis; Houston; and Seattle.” For more information, please visit www.realtor.org. RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com

Case-Shiller: Slight Increase in April

Case-Shiller: Slight Increase in April

By Steve Cook   

RISMEDIA, June 30, 2011—S&P/Case-Shiller’s 10- and 20-city composites rose less than one percent in April over March, the first price increase the indices have measured in eight months.
Data through April 2011, released recently by S&P Indices for its S&P/Case-Shiller Home Price Indices show a monthly increase in prices for the 10- and 20-City Composites for the first time in eight months.

Case-Shiller prices still are significantly lower than they were a year ago. The 10-City Composite fell 3.1 percent and the 20-City Composite is down 4.0 percent from April 2010 levels.
Six of the 20 MSAs showed new index lows in April—Charlotte, Chicago, Detroit, Las Vegas, Miami and Tampa. Thirteen of the cities and both composites posted positive monthly changes. With index levels of 152.51 and 138.84, respectively, both the 10- and 20-City Composites.
“In a welcome shift from recent months, this month is better than last —April’s numbers beat March,” says David M. Blitzer, Chairman of the Index Committee at S&P Indices. “However, the seasonally adjusted numbers show that much of the improvement reflects the beginning of the Spring-Summer home buying season. It is much too early to tell if this is a turning point or simply due to some warmer weather.

“Other housing statistics show the same trends. Single-family housing starts were up in May, but still well below their 2010 levels and still very close to their 30-year low. Existing home sales rose in May, but are still about 15 percent below last year’s pace and about 35 percent below their 2005 pace. While foreclosures remain a large factor in most parts of the country, the S&P/Experian Consumer Credit Default indices show a small decline in the pace of new defaults since last November. Other reports confirm that banks have tightened lending standards in the past year making it harder to qualify for a mortgage despite very low interest rates.

“In the monthly details, we saw home prices increase in April over March. The 10-City was up 0.8 percent and the 20-City rose 0.7 percent. Only seven cities experienced lower prices compared to 18 in March. However, the seasonally adjusted figures saw less dramatic improvement. The annual rate of change for the 10-City remained the same at -3.1 percent; whereas the 20-City fell further from -3.8 percent reported for March to -4.0 percent for April. For a real recovery we would need to see several months of increasing home prices, large enough to shift the annual momentum to the positive side. In short, better news, but still a lot of questions and a long way to go,” says Blitzer.
For more information please visit www.realestateeconomywatch.com.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

April Housing Scorecard Shows Growing Evidence of Economic Progress

RISMEDIA, May 10, 2011—The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury recently released the April edition of the Obama Administration’s Housing Scorecard—a comprehensive report on the nation’s housing market. Officials caution that the latest housing figures underscore fragility in the housing market and highlight the importance of the Administration’s foreclosure-prevention programs, which continue to help tens of thousands of struggling homeowners each month and play a critical role in setting standards for the mortgage industry. “The housing data in this month’s Scorecard offer continued mixed signals and some signs of weakness in the market—despite growing evidence of progress in the broader economy,” says HUD Assistant Secretary Raphael Bostic. “The Administration has been consistently committed to helping American homeowners and borrowers who have been hit hard by the economic recession and housing crisis, and our efforts have helped millions to avoid foreclosure and gain a more stable footing. That said, we still have more work to do to reach the many households who still face trouble.”
“The numbers of homeowners both entering HAMP and converting from trial to permanent modifications each month are a powerful reminder of the role this program is playing in delivering much-needed assistance to families facing a housing market that is still very tough,” says Acting Assistant Secretary for Financial Stability Tim Massad. “And by providing modifications that are sustainable for homeowners over time, HAMP is setting standards for the industry that ultimately mean more options for more families to avoid foreclosure.”
The March Housing Scorecard features key data on the health of the housing market and the reach of the Administration’s foreclosure prevention programs, including:
• The Administration’s efforts have helped millions of families deal with the worst economic crisis since the Great Depression. More than 4.5 million modification arrangements were started between April 2009 and the end of March 2011—including more than 1.5 million trial modification starts through the Administration’s Home Affordable Modification Program (HAMP), more than 808,000 FHA loss mitigation and early delinquency interventions, and nearly 2.2 million proprietary modifications under HOPE Now. While some homeowners may have received help from more than one program, the total number of agreements offered more than doubled the number of foreclosure completions for the same period (1.9 million).
• Tens of thousands of new homeowners continue to receive real payment relief from HAMP every month—and are able to keep up those arrangements over time. In March, servicers reported more than 36,000 trial HAMP modifications and more than 36,000 permanent modifications with a median payment reduction of 37 percent—or over $500 every month. Since the start of the program, more than 670,000 homeowners have received a permanent HAMP modification, saving approximately $5.9 billion. More than 1.5 million homeowners have started a trial modification. With more than 84 percent of homeowners in their permanent HAMP modification after one year, HAMP modifications continue to perform well over time and are proving more sustainable for homeowners than traditional industry modifications.
• Housing market remains fragile as data through March paint a mixed picture of recovery. Home prices remain weak under continued strain from foreclosures and distressed homes. However, mortgage delinquencies continued a downward trend compared to early 2010 and foreclosure starts and completions remain below peak. As lenders continue to review internal procedures related to foreclosure processing, many foreclosure actions have been delayed. The decline in foreclosure processing is likely to be temporary as lenders eventually revise and resubmit paperwork in the coming months.

For more information visit www.HUD.gov.
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Sales of Existing-Homes Rose in March 2011

RISMEDIA, April 21, 2011—Sales of existing-home sales rose in March 2011, continuing an uneven recovery that began after sales bottomed last July, according to the National Association of REALTORS®. Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 3.7% to a seasonally adjusted annual rate of 5.10 million in March from an upwardly revised 4.92 million in February, but are 6.3% below the 5.44 million pace in March 2010. Sales were at elevated levels from March through June of 2010 in response to the home buyer tax credit. Lawrence Yun, NAR chief economist, expects the improving sales pattern to continue. “Existing-home sales have risen in six of the past eight months, so we’re clearly on a recovery path,” he said. “With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain—primarily because some buyers are finding it too difficult to obtain a mortgage. For those fortunate enough to qualify for financing, monthly mortgage payments as a percent of income have been at record lows.”
NAR’s housing affordability index shows the typical monthly mortgage principal and interest payment for the purchase of a median-priced existing home is only 13% of gross household income, the lowest since records began in 1970.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.84% in March, down from 4.95% in February; the rate was 4.97% in March 2010.
Data from Freddie Mac and Fannie Mae show requirements to obtain conventional mortgages have been tightened, with the average credit score rising to about 760 in the current market from nearly 720 in 2007; for FHA loans the average credit score is around 700, up from just over 630 in 2007.
“Although home sales are coming back without a federal stimulus, sales would be notably stronger if mortgage lending would return to the normal, safe standards that were in place a decade ago—before the loose lending practices that created the unprecedented boom and bust cycle,” Yun explained.
“Given that FHA and VA government-backed loan programs turned a modest profit over to the U.S. Treasury last year, and have never required a taxpayer bailout, we believe low-downpayment loans should continue to be available for those consumers who have demonstrated financial responsibility and are willing to stay well within their budget. Raising the downpayment requirement would unnecessarily deny credit to many worthy middle-class families and veterans,” Yun said.
A parallel NAR practitioner survey shows first-time buyers purchased 33% of homes in March, compared with 34% of homes in February; they were 44% in March 2010.
All-cash sales were at a record market share of 35% in March, up from 33% in February; they were 27% in March 2010. Investors accounted for 22% of sales activity in March, up from 19% in February; they were 19% in March 2010. The balance of sales were to repeat buyers.
The national median existing-home price for all housing types was $159,600 in March, down 5.9% from March 2010. Distressed homes—typically sold at discounts in the vicinity of 20%—accounted for a 40% marketshare in March, up from 39% in February and 35% in March 2010.
NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said some renters are looking to homeownership as a hedge against inflation. “The typical buyer today plans to stay in a home for 10 years, while rents are projected to rise at faster rates over the next few years,” he said. “As buyers gain more financial security, the advantages of homeownership become more obvious. Rents will continue to trend up, especially in comparison with a fixed-rate loan which provides financial stability and gradual accumulation of equity over time.”
Total housing inventory at the end of March rose 1.5% to 3.55 million existing homes available for sale, which represents an 8.4-month supply at the current sales pace, compared with a 8.5-month supply in February.
Single-family home sales rose 4.0% to a seasonally adjusted annual rate of 4.45 million in March from 4.28 million in February, but are 6.5% below the 4.76 million level in March 2010. The median existing single-family home price was $160,500 in March, down 5.3% from a year ago.
Existing condominium and co-op sales increased 1.6% to a seasonally adjusted annual rate of 650,000 in March from 640,000 in February, but are 4.1% below the 678,000-unit pace one year ago. The median existing condo price was $153,100 in March, which is 10.1% below March 2010.
Regionally, existing-home sales in the Northeast rose 3.9% to an annual level of 800,000 in March, but are 12.1% below March 2010. The median price in the Northeast was $232,900, down 3.0% from a year ago.
Existing-home sales in the Midwest increased 1.0% in March to a pace of 1.06 million, but are 13.1% lower than a year ago. The median price in the Midwest was $126,100, which is 7.1% below March 2010.
In the South, existing-home sales rose 8.2% to an annual level of 1.99 million in March, but are 1.0% below March 2010. The median price in the South was $138,200, down 6.6% from a year ago.
Existing-home sales in the West slipped 0.8% to an annual pace of 1.25 million in March and are 3.1% below a year ago. The median price in the West was $192,100, which is 11.2% lower than March 2010.
For more information, visit www.realtor.org.
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Short video explaining HAFA... If you or someone you know is in distress with their home mortgage, it's good need to know...

Short video explaining HAFA... If you or someone you know is in distress with their home mortgage, it's good need to know...

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REALTORS Committed to Fair Housing throughout the Year

REALTORS Committed to Fair Housing throughout the Year

RISMEDIA, April 5, 2011—The National Association of REALTORS® will join Americans across the country as they honor Fair Housing Month this April. As one of the leading advocates for homeownership, NAR strongly supports the Fair Housing Act and believes that anyone who is able and willing to assume the responsibilities of owning a home should have the opportunity to pursue that dream. This April marks the 43rd anniversary of the 1968 landmark Fair Housing Act, which prohibits discrimination based on race, color, national origin, religion, sex, familial status or disability. NAR also supports equal opportunity on the basis of sexual orientation, incorporating that support into the REALTOR® Code of Ethics. "REALTORS® work tirelessly to build communities and believe people have a right to live wherever they can afford to live," said NAR President Ron Phipps. "In this vein, REALTORS® believe it's imperative to recognize Fair Housing Month and reconfirm our commitment to upholding fair housing laws and our commitment to offer equal professional service to everyone." NAR's Equal Opportunity and Cultural Diversity program offers REALTORS® education, grants, programs and events related to fair housing and diversity. Through the At Home with Diversity course, REALTORS® learn how to best work with and serve diverse consumers. Since its inception in 1998, At Home with Diversity has addressed the topics of diversity, fair housing and business planning development in a full-day certification course. NAR's Employer-Assisted Housing Class gives REALTORS® tools to work with local employers, helping them implement employer-assisted housing benefits to help employees become homeowners. Extensive training, grants and resources are also available to help REALTOR® associations and their members reach out to better serve today's diverse clientele. One workshop for association staff and their leaders, Leading with Diversity: A Business Imperative in a Changing World, helps REALTORS® associations incorporate diversity initiatives into their business models. In addition, NAR awards Diversity Initiative Grants to local and state associations twice a year, and Housing Opportunity Program Grants are also available to help associations support activities that create and expand affordable housing opportunities. The Ira Gribin Workforce Housing Grants program, which concluded in December 2010, awarded $4.93 million to 52 state associations and foundations with the goal of stimulating REALTORS®' efforts to address the ongoing need for affordable workforce housing. An end-of-program report will be available in May 2011. NAR has successfully built partnerships with housing groups and professional real estate organizations representing the multicultural community. In May, NAR will join five real estate diversity partners in sponsoring the HOPE (Home Ownership Participation for Everyone) Awards. The awards recognize outstanding individuals and programs that are increasing minority homeownership, revitalizing communities and expanding affordable housing opportunities. "NAR is committed to increasing awareness about fair housing laws and promoting inclusion and diversity in our nation's communities," said Phipps. "For REALTORS®, every month is fair housing month. With every transaction REALTORS® strive to promote inclusion, diversity and fairness in the housing industry." For more information, visit www.realtor.org. RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com

Practice Good Hearth Health: Fireplace Safety Basics

RISMEDIA, March 2, 2011—In the winter, there’s nothing as idyllic as sitting by a gently crackling fireplace with a cup of cider or hot cocoa, feeling the warmth from your toes to your soul. The essence of comfort and luxury, a fireplace is the focal point of a home. But, in order to ensure many more years of fireside moments—and to keep something beautiful from becoming potentially dangerous—some regular maintenance is required, as well as a keen eye toward safety.

When most people think of fireplaces, they recall traditional ones, found in older and classic homes. In a traditional fireplace, the fire is encased in a metal firebox lined with special firebrick. Smoke moves up a flue, which is typically a tile or metal liner inside a masonry chimney. A flue damper keeps air from escaping when the fireplace isn’t being used; and the smoke shelf, behind the damper, stops outside air from coming in and pushing harmful smoke into the living area.

Besides traditional fireplaces, though, there are plenty of other types. A heat-circulating fireplace produces some radiant heat, but mainly warms the air that circulates around the firebox; some have a fan that increases the air flow. A gas fireplace is mostly decorative and takes gas logs. By contrast, direct-vent fireplaces are like a wood-burning heat circulator—cool air enters at the bottom, is warmed, and rises out the vent at the top; the CO is expelled out the rear, so there is no need for a chimney. Finally, if you have a modern home or apartment, there’s a good chance you’ll have a modern wood stove—they’re desirable because they’re more efficient that a heat-circulating fireplace.

No matter what type of fireplace you have, maintenance is key to safety. First, before the winter, it’s essential to call in a professional to clean the chimney. Creosote can build up in the chimney and start fires. Typically, as soon as the creosote in the chimney is 1/8-inch thick, that’s an automatic sign to call in a professional who will also check the firebox and masonry and fill in potentially dangerous cracks.

Another important safety note: Chimneys must be lined with metal, or the appropriate tile. Older homes (especially those built before 1950) are typically not. If you have just moved to your home, this is something that a certified home inspector should have found during an inspection; but, if you’re not sure, call in a reputable, professional home inspector to assess the safety of the chimney. The inspector will give input on required repairs you need to have done.

Beyond professional maintenance, it’s essential for the homeowner to take safety precautions too. Here are some of the most important:
-Never burn pine or soft wood; it generally causes extremely fast creosote buildup.
-If you have a wood stove, make sure ashes don’t build up too much. One or two inches of ash is optimal; more than that, and you should remove some.
-Never burn pressure-treated or painted wood; it can cause noxious fumes.
-Never burn any kind of trash—paper, Christmas trees, anything at all—in a wood-burning fireplace. Only use logs made for wood-burning fireplaces.
-Never burn charcoal in a wood-burning fireplace.
-Even though it’s tempting to have as big a fire as possible, never overload a fireplace or wood stove; it can cause restricted air flow and dangerously high levels of combustion.
-Use logs specifically designated for your type of fireplace. If the label on the log’s packaging doesn’t detail this clear enough (which it should), ask a representative at the store you’re buying it from.
-If you have a direct-vent fireplace, make sure that it’s underwritten by Underwriters’ Laboratories (the “UL” symbol will be prominently listed on the packaging) or by the American Gas Association (AGA).
-Play it safe. If anything looks or smells out of the ordinary while you’re operating your fireplace, call a professional for servicing.

Charles Furlough is Vice President of Pillar To Post Professional Home Inspections.
For more information, visit www.pillartopost.com.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Contract Chronicles...

In section 8.2., of the Colorado Contract to Buy Sell, there is outlined a contingency for Matters Not Shown by the Public Records, or Off-Record Matters Deadline
The Contract Reads:
Seller shall deliver to Buyer, on or before Off-Record Matters Deadline true copies of all leases and surveys in Seller’s possession pertaining to the Property and shall disclose to Buyer all easements, liens (including, without limitation, governmental improvements approved, but not yet installed) or other title matters (including, without limitation, rights of first refusal and options) not shown by the public records of which Seller has actual knowledge. Buyer shall have the right to inspect the Property to investigate if any third party has any right in the Property not investigate if any third party has any right in the Property not shown by the public records (such as an unrecorded easement, unrecorded lease, boundary line discrepancy or water rights).  Written notice to terminate based on any unsatisfactory condition (whether disclosed by Seller or revealed by such inspection, notwithstanding § 13), in Buyer’s sole subjective discretion, by or on behalf of Buyer shall be delivered to Seller on or before Off- Record Matters Objection Deadline (§ 3). If Seller does not receive Buyer’s written notice to terminate on or before Off-Record Matters Objection Deadline (§ 3), Buyer accepts title subject to such rights, if any, of third parties of which Buyer has actual knowledge.

So...long story short, any agreements you have with neighbor or leases you have established and not recorded, ANYTHING, that may affect the marketability or enjoyment of the new owner, you should surrender by the dates specified for Off-Record Matters Deadline.

FHA Raising Monthly Mortgage Insurance Premium

FHA Raising Monthly Mortgage Insurance Premium and what that means to you...

FHA will be raising their monthly mortgage insurance premium on April 18, 2011 by 0.25%. What this means to you is that with a $200,000 FHA loan your monthly payment will increase by approximately $40. You will also need approximately $1,200 in additional income per year to qualify for this increased monthly payment. In order to avoid this increased mortgage insurance payment be sure that you have a property under contract and have your lender register an FHA 12964z case number prior to April 18, 2011. It is not necessary to close your loan before April 18, 2011. For additional information call Glen Holguin of Guild Mortgage at 303-253-4369 or email GlenH@GuildMortgage.net.

Around the Home: Get Rid of Electronic Waste the Right Way

RISMEDIA, February 5, 2011—(MCT)—Electronic waste is on the rise in the United States at a startling rate. In fact, it is growing at nearly three times the rate of any other kind of trash. It is estimated that 85% of electronics that can be recycled or donated aren’t. Think about it. What really happens to all the cell phones, computer equipment, televisions, and other electronic devices we get rid of when they break or we upgrade? Many times, we just throw them out where they are sent to a landfill. Electronics contain toxic heavy metal components like lead, cadmium, beryllium, and mercury that can pollute the environment, but they also contain valuable metals like gold, silver and copper. Instead of leaving old or broken electronics in our landfills, get those metals disposed of safely or recycled back into the next generation of electronics. It’s cost-effective for the manufacturer and the customer. And, it’s easy.

Who doesn’t have a used computer, hard drive, printer or video game players stuck in a closet around the house? Consider donating them to a local non-profit, like Goodwill. They have a partnership with Dell called “Reconnect,” where nearly 2,000 participating Goodwill locations across the U.S. will accept any brand of computer equipment and certain Microsoft products such as Xbox and Zune.

Goodwill either sells or responsibly recycles the products and all the money made is used to create job training and employment opportunities for people in your community. Goodwill will wipe all of the personal information off of working hard drives. Non-working units will have a spike drilled through the hard drive to make sure your information stays safe.

If you have computer parts hanging around, you probably also have an old cell phone or two. Eighty percent of Americans own cell phones and upgrade, on average, every year to a year and a half. There are many ways you can give one of these millions of cell phones new life. Many cell phone providers will take back your old models and recycle them for you. And, AT&T, Verizon, Motorola and Sprint are some of the companies involved in the wireless recycling network of ReCellular, one of the world’s leading recyclers and resellers of cell phones. Cell Phones for Soldiers is another organization you can donate your old cell phone to. They provide prepaid calling cards for U.S. troops stationed overseas with every donated cell phone they receive. March of Dimes, Keep America Beautiful and Call To Protect are other non-profits that collect cell phones for their missions.

So go ahead, scour your closets, garage, kitchen drawers, and anywhere else that you stash old electronics that you and your family are no longer using. Then, do your part and make sure they do some good instead of being trashed.

(c) 2011 Terri Bennett Enterprises, LLC. ALL RIGHTS RESERVED.

Distributed by McClatchy-Tribune Information Services.

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Contract Chronicles...

In the Colorado Contract to Buy Sell (revised for 2011), there are some changes that you should be aware of prior to inking a contract on your home of choice.  One of the most significant changes is the verbiage regarding Inspection Objection and Inspection Resolution. The contract now reads:

10.2. Inspection Objection Deadline. Unless otherwise provided in this Contract, Buyer acknowledges that Seller is conveying the Property to Buyer in an “as is” condition, “where is” and “with all faults”. Seller shall disclose to Buyer, in writing, any latent defects actually known by Seller. Buyer, acting in good faith, shall have the right to have inspections (by a third party, personally or both) of the Property and Inclusions (Inspection), at Buyer’s expense. If (1) the physical condition of the Property,  (2) the physical condition of the Inclusions, (3) service to the Property (including utilities and communication services), systems and components of the Property, e.g. heating and plumbing, (4) any proposed or existing transportation project, road, street or highway, or (5) any other activity, odor or noise (whether on or off the Property) and its effect or expected effect on the Property or its occupants is unsatisfactory in Buyer’s sole subjective discretion, Buyer shall, on or before Inspection Objection Deadline
10.2.1. Notice to Terminate. Notify Seller in writing that this Contract is terminated; or

10.2.2. Notice to Correct. Deliver to Seller a written description of any unsatisfactory physical condition which Buyer requires Seller to correct.

If written notice is not received by Seller on or before Inspection Objection Deadline (§ 3), the physical condition of the Property and Inclusions shall be deemed to be satisfactory to Buyer.

10.3. Inspection Resolution Deadline. If a Notice to Correct is received by Seller and if Buyer and Seller have not agreed in writing to a settlement thereof on or before Inspection Resolution Deadline (§ 3), this Contract shall terminate on Inspection Resolution Deadline (§ 3), unless Seller receives Buyer’s written withdrawal of the Notice to Correct before such termination, i.e., on or before expiration of Inspection Resolution Deadline (§ 3).

So what does this mean?  Well, in previous versions of the contract there was no mention that a property would convey "as is, where is" proposed by the state document.  This would be addressed in the additional provisions sections or 78230n addressed in the counter proposal by the seller.  So now, all properties convey "as is" "where is" and the buyer, similar to times passed, would need to submit a Notice to Correct or Notice to Terminate if an unsatisfactory condition existed. 
Furthermore, in previous versions of the contract,  if issues were not mutually agreed upon by the Inspection Resolution Deadline, the contract would terminate 24 hours after that deadline.  A good common sense change to make the deadline an actual deadline.  As far as the presumption of "as is" goes...it has has always been up to the buyer to either request repairs or terminate the contract.  Any buyer acting in "good faith" should always perform their due diligence when purchasing a home and consult with a real estate professional on their options.

Market Snapshot....

News on the U.S. residential real estate market did not wane in 2010. The year was particularly noteworthy for what may be a reversal of the housing market turnaround that was occurring in late 2009 and early 2010, in spite of the November 2009 extension of tax credits for homebuyers into 2010.


The Worker, Homeownership, and Business Assistance Act created a tax credit of up to US$ 6,500 for qualified homebuyers for purchases after November 6, 2009 and up to April 30, 2010, or purchased by September 30, 2010 and under contract by April 30, 2010. Throughout most of 2010, there was much discussion and debate about whether such a credit would provide the needed stimulus to get the housing market permanently on the path of real recovery, or if it would prove to be just a temporary boost, benefiting a few at the expense of many.

After some signs of recovery in the spring, home sales, housing starts, and home price appreciation moved back to, or close to, record lows during the latter half of 2010. After moderating in late 2009/early 2010, inventories of unsold homes, as measured in both units and months’ supply, are back up at levels witnessed in 2008 when the housing market was in the midst of its crisis. Mortgage delinquency rates and new foreclosures continued to increase in both the prime and sub-prime loan markets and the national unemployment rate remains high, fueling further speculation about the strength or duration of any recovery in the housing market

The S&P/Case-Shiller Home Price Indices1 were a primary topic of discussion throughout the year. At both the national and regional levels, the indices clearly illustrate the historic declines in home prices beginning in mid-2006, the modest recovery that began in the early spring of 2009, and the recent reversal that seems to be occurring, as observed in the latest reported data.
 
In Denver, the non-seasonally adjusted figures show that home prices declined as well as number of homes on the market. 

A very exciting announcement!!

A very exciting announcement!!


Wells Fargo Home Mortgage and Colorado Mortgage Alliance (an affiliate of Well Fargo Home Mortgage) have made a policy change for FHA PURCHASE LOANS!!!
Effective January 15th, 2011, (purchase money only) credit scores down to 500!!

Their minimum credit score prior to January 15th was 600! This could open up financing options to many buyers that were previously denied due to credit scores. 

The down payment requirements are increased.
500-579 == 10% down payment
580-600 == 5% down payment
600 and higher == 3.5% down payment
NO gift funds for required down payment
NO down payment assistance programs

Call me NOW so we can get you connected with the right mortgage professionals!

The More You Know: Energy-Efficiency Tax Incentives Extended

The More You Know: Energy-Efficiency Tax Incentives Extended
By Keith Loria

RISMEDIA, January 6, 2011—In December Congress extended and modified energy-efficiency tax incentives for appliances, new homes and retrofits to existing homes. The tax legislation, signed into law by President Obama earlier this year, will continue to help raise the market share of efficient appliances, HVAC and insulation products, as well as new homes.

“For the last few weeks, the Alliance to Save Energy has urged policymakers to remember the pitfalls of not extending these tax incentives—namely, higher energy bills and less disposable income for American families, who are counting on Congress to turn around our still-struggling economy,” said Alliance President Kateri Callahan. “Congress will help Americans keep their homes comfortable and their energy bills low in an unpredictable economy.”

The bill provides several energy efficiency-related provisions and will be in effect for 2011.

Included is a federal income tax credit of up to $500 for homeowners who make certain energy-efficient improvements. This popular energy-efficient home retrofits credit has returned to pre-Recovery Act levels with strengthened eligibility criteria.

For dishwashers, a $25 credit is given for models using no more than 307 kilowatt hours/year and 5.0 gallons of water/cycle. It goes up to $50 for models using no more than 295 kilowatt hours/year and 4.25 gallons of water/cycle; and $75 for those using no more than 280 kWh kilowatt hours/year and 4 gallons of water/cycle.

Clothes washers can get a credit of $175 for top-loading models that meet/exceed 2.2 MEF, and does not exceed 4.5 WCF or $225 for top-loading models that meet/exceed 2.4 MEF, and does not exceed 4.2 WCF, or front-loading models that meet/exceed 2.8 MEF and do not exceed a 3.5 WCF.

For refrigerators, models that use 30 percent less energy relative to the federal standard will receive a $150 credit, while those with 35 percent less energy will receive $200.

There is also limited credit for building materials including insulation, sealing products, certain types of roof and energy-efficient windows at up to 10 percent of their cost. Windows also are subject to a flat $200 limit.

“These incentives have substantially raised the market share of efficient products and new homes, saving consumers money, creating jobs, and helping to make efficient products the long-term norm,” said Steven Nadel, Executive Director of the American Council for an Energy-Efficient Economy.

The bill also contained credits for manufacturers of energy-efficient appliances, a credit that could be claimed for installation of electric vehicle charging stations and an increased maximum value for pre-tax, employer-provided transit benefits.

“The tax incentives adopted are a welcome signal to U.S. consumers, who currently face rising energy costs in a still-uncertain economy, that Uncle Sam will help them pay for energy efficiency improvements to make their homes more comfortable and their energy bills more affordable for years to come,” Callahan said.

While Congress is expected to extend most of the expiring federal energy efficiency tax incentives, it is not extending the incentive for hybrid trucks and buses. This extension had been included in previous House and Senate bills, but was dropped from the final bill.

“While we are happy to see most of the energy efficiency incentives extended, we are disappointed that the hybrid truck incentive is not being extended; we hope Congress will rectify this omission in 2011,” Nadel said.

Congress is expected to consider further extensions of these incentives into 2012 and beyond next year.

For more information about energy efficiency tax incentives, contact us or visit the U.S. Department of Energy website at http://www.energy.gov/taxbreaks.htm.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.