Showing posts with label Lexington KY real estate. Show all posts
Showing posts with label Lexington KY real estate. Show all posts
Thursday, November 19, 2009
Wednesday, October 21, 2009
Lexington Number 6 Place to Live
Good article today about Lexington.
By Jaclyn Colletti and Joel Weber, researchers
updated 10:37 a.m. ET, Tues., Oct . 20, 2009
From the moment she finds out she's expecting, a new parent's mind begins to construct a fantasy of the perfect place to build a nest: a community that's safe, nurturing, stimulating, and economically sound. A neighborhood where parents reflect your values — education, health and fitness, concern for the environment — and raise their children the same way. The kind of place where a child can slip on her rubber boots, grab her colorful umbrella, and play on the quiet, tree-lined street outside her home without worry.
The editors of Children's Health wanted to find where in America such places existed and how we can make the communities we live in today more like that ideal, so we embarked on a comprehensive statistical analysis to rank 100 noteworthy American cities scattered across the country. We considered more than 30 factors that parents deem vitally important, including crime and safety, education, economics, housing, cultural attractions, and health. (See the criteria used.) When we crunched the numbers, these were the cities that best complemented family life.
http://today.msnbc.msn.com/id/33385798/ns/today-parenting_and_family/
By Jaclyn Colletti and Joel Weber, researchers
updated 10:37 a.m. ET, Tues., Oct . 20, 2009
From the moment she finds out she's expecting, a new parent's mind begins to construct a fantasy of the perfect place to build a nest: a community that's safe, nurturing, stimulating, and economically sound. A neighborhood where parents reflect your values — education, health and fitness, concern for the environment — and raise their children the same way. The kind of place where a child can slip on her rubber boots, grab her colorful umbrella, and play on the quiet, tree-lined street outside her home without worry.
The editors of Children's Health wanted to find where in America such places existed and how we can make the communities we live in today more like that ideal, so we embarked on a comprehensive statistical analysis to rank 100 noteworthy American cities scattered across the country. We considered more than 30 factors that parents deem vitally important, including crime and safety, education, economics, housing, cultural attractions, and health. (See the criteria used.) When we crunched the numbers, these were the cities that best complemented family life.
http://today.msnbc.msn.com/id/33385798/ns/today-parenting_and_family/
Thursday, October 15, 2009
Lexington home sales up 13 percent, region up 7 percent
By Scott Sloan - ssloan@herald-leader.com
The Lexington-Bluegrass Association of Realtors said home sales in and around Lexington grew in the third quarter, with September particularly strong. Residential sales rose 13 percent in Lexington and 7 percent in the region as a whole.
The growth for the full quarter, although lower, was still growth, which has been tough to come by as the real estate market suffered during the recession.
The number of residential real estate sales that closed during the third quarter in Lexington increased 4.7 percent, the Lexington-Bluegrass Association of Realtors said Thursday. In the 14-county area served by LBAR's members, single-family sales were up 4 percent.
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During the quarter in Lexington, 1,194 sales closed, up from 1,140 in the same quarter of 2008. Sales were gaining momentum as the quarter ended, with a 13 percent rise in September with 347 sales, 40 more than a year ago.
During the quarter in the region, 2,110 sales closed, up from 2,028 in the same quarter of 2008. Sales also gained momentum as the quarter ended with a 6.7 percent rise in September. That month saw 651 sales, 41 more than a year ago.
September is the first month this year that home sales in the region exceeded their 2007 figures, according to the data provided by LBAR's members.
Sales declined 0.7 percent in the region in August but were up 6.2 percent in July.
In Lexington, sales were up just 1.7 percent throughout July and August. The months are not broken out separately in LBAR's statistical report.
Year-over-year price changes varied during the quarter. Lexington saw a substantial decline in the median sales price for residential sales in September: The price fell 7.5 percent to $149,838 from $162,000 a year ago.
The region saw varied results. In July, the median sales price for residential homes was $147,398, down 1.7 percent year-over-year. In August, it fell to $144,000 from $152,900 in August 2008, a drop of 5.8 percent. In September, the percentage drop-off narrowed to 1.8 percent with a median sales price of $140,000.
Central Kentucky's drop in sales prices has not been as pronounced during the recession as other areas of the country.
The average days on the market for a single-family home in the region was 78 at the end of the quarter, down from 93 a year earlier. Lexington was better with an average days on market of 66 compared to 69 a year ago.
The inventory of homes also was down in the region, with 6,238 for sale in September 2009, a drop of 5.4 percent.
"Interest rates are very low; there is a good selection of homes on the market and there is no reason not to be able find the home of your choice," LBAR president Gale Fulton said in a statement.
The Lexington-Bluegrass Association of Realtors said home sales in and around Lexington grew in the third quarter, with September particularly strong. Residential sales rose 13 percent in Lexington and 7 percent in the region as a whole.
The growth for the full quarter, although lower, was still growth, which has been tough to come by as the real estate market suffered during the recession.
The number of residential real estate sales that closed during the third quarter in Lexington increased 4.7 percent, the Lexington-Bluegrass Association of Realtors said Thursday. In the 14-county area served by LBAR's members, single-family sales were up 4 percent.
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document.write('');
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During the quarter in Lexington, 1,194 sales closed, up from 1,140 in the same quarter of 2008. Sales were gaining momentum as the quarter ended, with a 13 percent rise in September with 347 sales, 40 more than a year ago.
During the quarter in the region, 2,110 sales closed, up from 2,028 in the same quarter of 2008. Sales also gained momentum as the quarter ended with a 6.7 percent rise in September. That month saw 651 sales, 41 more than a year ago.
September is the first month this year that home sales in the region exceeded their 2007 figures, according to the data provided by LBAR's members.
Sales declined 0.7 percent in the region in August but were up 6.2 percent in July.
In Lexington, sales were up just 1.7 percent throughout July and August. The months are not broken out separately in LBAR's statistical report.
Year-over-year price changes varied during the quarter. Lexington saw a substantial decline in the median sales price for residential sales in September: The price fell 7.5 percent to $149,838 from $162,000 a year ago.
The region saw varied results. In July, the median sales price for residential homes was $147,398, down 1.7 percent year-over-year. In August, it fell to $144,000 from $152,900 in August 2008, a drop of 5.8 percent. In September, the percentage drop-off narrowed to 1.8 percent with a median sales price of $140,000.
Central Kentucky's drop in sales prices has not been as pronounced during the recession as other areas of the country.
The average days on the market for a single-family home in the region was 78 at the end of the quarter, down from 93 a year earlier. Lexington was better with an average days on market of 66 compared to 69 a year ago.
The inventory of homes also was down in the region, with 6,238 for sale in September 2009, a drop of 5.4 percent.
"Interest rates are very low; there is a good selection of homes on the market and there is no reason not to be able find the home of your choice," LBAR president Gale Fulton said in a statement.
Friday, October 2, 2009
Does this Sound Familiar?
Not that I am for taking the horse farms and turning them into subdivisions, I am not, but maybe we could learn something from here in Central KY?
Urban planning to blame for housing bubble? - REAL Trends Between 2000 and the bubble's peak, inflation- adjusted housing prices in California and Florida more than doubled, and since the peak they have fallen by 20 to 30 percent. In contrast, housing prices in Georgia and Texas grew by only about 20 to 25 percent, and they haven't significantly declined. In other words, California and Florida housing bubbled, but Georgia and Texas housing did not. This is not because people don't want to live in Georgia and Texas: since 2000, Atlanta, Dallas-Ft. Worth, and Houston have been the nation's fastest-growing urban areas, each growing by more than 120,000 people per year. According to a new study by the CATO Institute and Randal O'Toole, this suggests that local factors, not national policies, were a necessary condition for the housing bubbles where they took place. The most important factor that distinguishes states like California and Florida from states like Georgia and Texas is the amount of regulation imposed on landowners and developers, and in particular a regulatory system known as growth management. In short, restrictive growth management was a necessary condition for the housing bubble, says the study. Read more click here.
Real Trends Comment: Thomas Sowell's book, "Housing Boom and Bust" is one great read to understand how it was government involvement at all levels, local, state and federal, that was mostly responsible for both the boom and the bust in housing. At local and state levels, governmental action to reduce the land available for development and the cost of development caused huge price bubbles that exacerbated the wild swings in prices in such markets as San Francisco and Los Angeles when compared to cities like Atlanta and Houston. At the federal level the stimulus to accelerate low income households entry into homeownership caused Fannie and Freddie to purchase too many low downpayment and low credit scoring families - ending with the high foreclosure rates even before the recession.
Urban planning to blame for housing bubble? - REAL Trends Between 2000 and the bubble's peak, inflation- adjusted housing prices in California and Florida more than doubled, and since the peak they have fallen by 20 to 30 percent. In contrast, housing prices in Georgia and Texas grew by only about 20 to 25 percent, and they haven't significantly declined. In other words, California and Florida housing bubbled, but Georgia and Texas housing did not. This is not because people don't want to live in Georgia and Texas: since 2000, Atlanta, Dallas-Ft. Worth, and Houston have been the nation's fastest-growing urban areas, each growing by more than 120,000 people per year. According to a new study by the CATO Institute and Randal O'Toole, this suggests that local factors, not national policies, were a necessary condition for the housing bubbles where they took place. The most important factor that distinguishes states like California and Florida from states like Georgia and Texas is the amount of regulation imposed on landowners and developers, and in particular a regulatory system known as growth management. In short, restrictive growth management was a necessary condition for the housing bubble, says the study. Read more click here.
Real Trends Comment: Thomas Sowell's book, "Housing Boom and Bust" is one great read to understand how it was government involvement at all levels, local, state and federal, that was mostly responsible for both the boom and the bust in housing. At local and state levels, governmental action to reduce the land available for development and the cost of development caused huge price bubbles that exacerbated the wild swings in prices in such markets as San Francisco and Los Angeles when compared to cities like Atlanta and Houston. At the federal level the stimulus to accelerate low income households entry into homeownership caused Fannie and Freddie to purchase too many low downpayment and low credit scoring families - ending with the high foreclosure rates even before the recession.
Wednesday, September 23, 2009
To Extend or not to Extend
I will make this short and sweet, which is unusual for me, but anyone either in the market to buy or sell, or a real estate professional has an opinion on this current first time buyer tax credit. Now to debate the actual effects of the credit, good or bad, or how it is or is not market manipulation or control at some level is beyond the scope of this post, no matter how well founded or accurate they may or may not be. But like the cash for clunkers this is indeed creating a real shift in demand at least in the short term. Again the long term effect will be another matter all togeher for another time. So here are the top 3 pros and cons as I see it as a real estate professional and a property investor. And my idea to continue the plan so there is no cash for clunker type hangover period should it expire as set to do so in a matter of weeks.
Pro's:
1. Stimulates many on the fence buyers to go ahead an purchase property now rather than later
2. Helps to reduce the inventory available and in theory stabilize prices in the target price range.
3. Gives real a tangible monetary benefit to the average person, not an untangible corporation or group
Con's:
1. Limited to the typical first time home buyer target market and price range which may not address problems that created the current climate
2. Artificial inducement to act may create hangover effect in the future and creates minimum expectation standard for the future, and which may arguably be the root of the problem in the first place
3. By creating a hard deadline creates problems by rushing to act by too much of a sense of urgency to act.
My solution:
Now the numbers are arbitrary and can and should be adjusted as required for area and budget reasons. But here is a plan I think could be introduced to extend and most importantly expand the current credit.
The Ty Brown Real Estate Stimulus and Recovery Act of 2009
- $8,000 Federal Tax Credit in the first year for ANY owner occupied purchaser to be given to the buyer similar to the same current guidelines, except open to ALL buyers.
- and additional $1,000 interest credit towards federal taxes for each of the next 6 years the purchaser remains in the home.
- $2,000 incentive to purchaser to make home more energy efficient should home be in need, again similar to current guidelines -or-
-$8,000 principal reduction credit for a current seller that must sell their home that in turn purchases a new home that will lower their monthly mortgage payment by at least 20%. Then they would not be eligible for the $8,000 credit but would be eligible for the $1,000 interest credit and energy efficiency credit.
So this would be a great deal for someone that wanted to sell their home and couldnt because the value has decreased. They could lower their price by $8,000, the buyer could still use the $8,000 toward the purchase, and both could go to a new home and use the remaining credits.
The two biggest hurdles are 1. Who would fund the $8,000 principle reduction, and 2. Again is this TOO much artificial stimulus in a open market....
Pro's:
1. Stimulates many on the fence buyers to go ahead an purchase property now rather than later
2. Helps to reduce the inventory available and in theory stabilize prices in the target price range.
3. Gives real a tangible monetary benefit to the average person, not an untangible corporation or group
Con's:
1. Limited to the typical first time home buyer target market and price range which may not address problems that created the current climate
2. Artificial inducement to act may create hangover effect in the future and creates minimum expectation standard for the future, and which may arguably be the root of the problem in the first place
3. By creating a hard deadline creates problems by rushing to act by too much of a sense of urgency to act.
My solution:
Now the numbers are arbitrary and can and should be adjusted as required for area and budget reasons. But here is a plan I think could be introduced to extend and most importantly expand the current credit.
The Ty Brown Real Estate Stimulus and Recovery Act of 2009
- $8,000 Federal Tax Credit in the first year for ANY owner occupied purchaser to be given to the buyer similar to the same current guidelines, except open to ALL buyers.
- and additional $1,000 interest credit towards federal taxes for each of the next 6 years the purchaser remains in the home.
- $2,000 incentive to purchaser to make home more energy efficient should home be in need, again similar to current guidelines -or-
-$8,000 principal reduction credit for a current seller that must sell their home that in turn purchases a new home that will lower their monthly mortgage payment by at least 20%. Then they would not be eligible for the $8,000 credit but would be eligible for the $1,000 interest credit and energy efficiency credit.
So this would be a great deal for someone that wanted to sell their home and couldnt because the value has decreased. They could lower their price by $8,000, the buyer could still use the $8,000 toward the purchase, and both could go to a new home and use the remaining credits.
The two biggest hurdles are 1. Who would fund the $8,000 principle reduction, and 2. Again is this TOO much artificial stimulus in a open market....
Tuesday, June 30, 2009
Breaking News!
For the first time I have noticed in a long time, and yes its the last day of the month, and quarter, but pendings and solds, and even solds along have surpassed new listings. At least as of 4:21 pm. Note there are even 5 price increases...watch out!
LBAR 24-Hour Market Watch
New Listings 70
Back on Market 11
Price Increases 5
Price Reductions 53
Pendings 38
Solds 80
Expireds 19
Inactives 18
LBAR 24-Hour Market Watch
New Listings 70
Back on Market 11
Price Increases 5
Price Reductions 53
Pendings 38
Solds 80
Expireds 19
Inactives 18
Local vs. National News
OK once again I am going to say it, All Real Estate is Local, meaning I don't really care what Las Vegas is doing, and I REALLY do not care about California. So why is it that that is all we hear about? Florida is a little closer to home, and we New York is understandable, but still not relavant to Lexington, or Kentucky for that matter. However we hav to realize this is what our clients see everyday. Like the article on Yahoo today...
Home prices post 18.1 percent annual drop in April
Widely watched index shows home prices down by 18.1 pct. in April, but trend is stabilizing
Case-Schiller? Again that is only 20 cities, and none of them are in Kentucky. Plus it says that 8 of the 20 posted gains. WHO CARES ABOUT VEGAS!? But htis seems to contradict what NAR says...
Take a look at the recent local KAR and LBAR numbers to see what is happening in Kentucky and Lexington. Which one of these makes more sense to you and your clients who may be selling or buying a home? So share it...
Home prices post 18.1 percent annual drop in April
Widely watched index shows home prices down by 18.1 pct. in April, but trend is stabilizing
Case-Schiller? Again that is only 20 cities, and none of them are in Kentucky. Plus it says that 8 of the 20 posted gains. WHO CARES ABOUT VEGAS!? But htis seems to contradict what NAR says...
Take a look at the recent local KAR and LBAR numbers to see what is happening in Kentucky and Lexington. Which one of these makes more sense to you and your clients who may be selling or buying a home? So share it...
Monday, June 29, 2009
Perspective is Key Cont....
Here are the answers I promised last week for my questions. #1 Should be obvious since it took a week for time to sit down and answer them....
1. Are you busy with real estate right now?
- Yes, June was the second best month I have had ever in 6+ years, really close to being the first and if I were real creative I could say it was the best, since one really closed in May, or if I included the properties I bought and sold personally it would be handsdown, but I'm not. The activity seems to have leveled off just a tad, but I am finding again that the good listings are selling. People are wanting to buy.
2. How many buyers have you seen NOT be able to get a owner occupied loan this year?
- If only real buyers are considered then 1 straight turned down no possibility, and 1 was borderline and they gave up.
3. What type and price range are people wanting the most right now?
- Under $250k and especially $100-150k which is surely due to the first tme home buyer incentives, I am starting to see a few looking more in the $300-500k but I am not ready to put a lot of stock in that yet.
4. How confident are you that the market will get better in the next year, HERE*, and why?
- Very confident. There are too many reason to but and not enough reasons not to buy right now. Why pay rent? You have to live somewhere....
1. Are you busy with real estate right now?
- Yes, June was the second best month I have had ever in 6+ years, really close to being the first and if I were real creative I could say it was the best, since one really closed in May, or if I included the properties I bought and sold personally it would be handsdown, but I'm not. The activity seems to have leveled off just a tad, but I am finding again that the good listings are selling. People are wanting to buy.
2. How many buyers have you seen NOT be able to get a owner occupied loan this year?
- If only real buyers are considered then 1 straight turned down no possibility, and 1 was borderline and they gave up.
3. What type and price range are people wanting the most right now?
- Under $250k and especially $100-150k which is surely due to the first tme home buyer incentives, I am starting to see a few looking more in the $300-500k but I am not ready to put a lot of stock in that yet.
4. How confident are you that the market will get better in the next year, HERE*, and why?
- Very confident. There are too many reason to but and not enough reasons not to buy right now. Why pay rent? You have to live somewhere....
Tuesday, June 23, 2009
Tow Your Own Listings
OK part of this is good but the day you see me pulling my next listing down the street behind my truck, I am getting out of the business.....
http://cosmos.bcst.yahoo.com/up/player/popup/?rn=3906861&cl=14127903&ch=4226720&src=news
http://cosmos.bcst.yahoo.com/up/player/popup/?rn=3906861&cl=14127903&ch=4226720&src=news
Perspective is Key
In today's market it can be confusing, especially for people who are not in the real estate business everyday. Everywhere you turn there are conflicting messages telling you one thing, then seemingly another. Everything for example think of each of these and their current situation: North Korea, the UN, Iran, Goldman Sachs, Jodie Meeks, TARP, GM, Chrysler, Exxon, the price of gas, the economy, the housing market...I could go all day. It seems we never get the real story, only the story or the agenda whomever is reporting or telling the story wants you to have or hear. Since this is a real estate based site, then lets focus on that.
Here is the general overall take that most people get these days from all media sources.
"Everyone is in foreclosure, you can't get a loan, the market is falling even more, bank owned properties are a deal, don't buy, do buy, the time is now to buy, take advantage of the tax credit, market is bottoming out, by the end of the year the market will be rising again....again this could go all day. But take the pulse of the real market, get perspective. Call any Realtor or mortgage professional you know that will give you a straight answer, and ask them 4 questions.
1. Are you busy with real estate right now?
2. How many buyers have you seen NOT be able to get a owner occupied loan this year?
3. What type and price range are people wanting the most right now?
4. How confident are you that the market will get better in the next year, HERE*, and why?
* Here can be almost anywhere but the important thing is it is the town you are in.
I will answer my own questions tomorrow as well as pose it to a few friends of mine in the business and post their answers. I would be interested to hear what you find from these answers. Then next week I am going to get the question to people outside the real estate profession, common people and hopefully a reporter or two....I bet they are totally different.....
Here is the general overall take that most people get these days from all media sources.
"Everyone is in foreclosure, you can't get a loan, the market is falling even more, bank owned properties are a deal, don't buy, do buy, the time is now to buy, take advantage of the tax credit, market is bottoming out, by the end of the year the market will be rising again....again this could go all day. But take the pulse of the real market, get perspective. Call any Realtor or mortgage professional you know that will give you a straight answer, and ask them 4 questions.
1. Are you busy with real estate right now?
2. How many buyers have you seen NOT be able to get a owner occupied loan this year?
3. What type and price range are people wanting the most right now?
4. How confident are you that the market will get better in the next year, HERE*, and why?
* Here can be almost anywhere but the important thing is it is the town you are in.
I will answer my own questions tomorrow as well as pose it to a few friends of mine in the business and post their answers. I would be interested to hear what you find from these answers. Then next week I am going to get the question to people outside the real estate profession, common people and hopefully a reporter or two....I bet they are totally different.....
Tuesday, May 19, 2009
Day Two - What is Driving Today's Market?
What is driving today’s market?
The short answer is nothing really. It’s like an empty car in neutral rolling down a hill. Yes it will roll, and it will go until it either runs off the road or hits something big enough to stop it. Why? How? Gravity. No not a tractor beam (Borrowed Stimulus Money) sent from the mother ship (Gov’t) pulling it downhill, its gravity it has always been here.
Compare that visual to today’s burgeoning recovery (the car) which is starting to roll in many areas of the country the movement can be attributed to a few things.
1. The natural cycle (The gravity) for this time of year, the spring and summer naturally bring more activity, a good amount of stored up demand. (Which is in my opinion mostly due to the unfavorable, inaccurate, over generalized media coverage of the last year.)
2. Attractive first time home buyer incentives i.e. $8,000 tax credit, record levels of inventory, lower prices and increased affordability. The big if is the supposed increasing availability of mortgage financing available. (The road with a big 90 degree turn coming up)
While these are all nice, and depending on which party’s media machine you listen to, there are signs of optimism in the economy and overall direction of the housing market. There are signs of a bottoming out of the housing fall, an increased level of activity and consumer confidence in housing all over the place.
But for a true long term recovery there are a few items missing and a few time bombs (The Wall) lurking in the near future that could derail any recovery unless they are addressed; one of the most immediate being the $8,000 first time buyer tax incentive sunset of December 2009, not that this can continue indefinitely however. At some point virtually every person with the ability to purchase a home as a first time buyer is going to do so. Sure there will always be new people entering the market, but the level to drive a recovery will, has, level off and the effect will be less noticeable, they cannot drive the market for ever. Also the job market and banks starting to lend again are big deals, but those are obvious and yesterday’s news.
So what do I think is needed next? (Who can jump in our empty rolling car and steer us around that corner and away from that wall?) I think a new incentive should be introduced to spur the missing link in the housing recovery, the real estate investor. Not the jacked-up-on-HGTV flipping-manic-fly-by-night-know-it-all-jack-of-all-trades-price-war-bidding over exuberant type of the early to mid 00’s. But the professionals, and the rational small time investor looking to take advantage of an opportunity, and to make sound quality purchases of an asset that can never be worthless.* (As I have stated many times before, if you find a piece of property that is truly worth $0, tell me and I will buy it! Chernobyl excluded).
Tomorrow Day 3…The Investor the Missing Link
The short answer is nothing really. It’s like an empty car in neutral rolling down a hill. Yes it will roll, and it will go until it either runs off the road or hits something big enough to stop it. Why? How? Gravity. No not a tractor beam (Borrowed Stimulus Money) sent from the mother ship (Gov’t) pulling it downhill, its gravity it has always been here.
Compare that visual to today’s burgeoning recovery (the car) which is starting to roll in many areas of the country the movement can be attributed to a few things.
1. The natural cycle (The gravity) for this time of year, the spring and summer naturally bring more activity, a good amount of stored up demand. (Which is in my opinion mostly due to the unfavorable, inaccurate, over generalized media coverage of the last year.)
2. Attractive first time home buyer incentives i.e. $8,000 tax credit, record levels of inventory, lower prices and increased affordability. The big if is the supposed increasing availability of mortgage financing available. (The road with a big 90 degree turn coming up)
While these are all nice, and depending on which party’s media machine you listen to, there are signs of optimism in the economy and overall direction of the housing market. There are signs of a bottoming out of the housing fall, an increased level of activity and consumer confidence in housing all over the place.
But for a true long term recovery there are a few items missing and a few time bombs (The Wall) lurking in the near future that could derail any recovery unless they are addressed; one of the most immediate being the $8,000 first time buyer tax incentive sunset of December 2009, not that this can continue indefinitely however. At some point virtually every person with the ability to purchase a home as a first time buyer is going to do so. Sure there will always be new people entering the market, but the level to drive a recovery will, has, level off and the effect will be less noticeable, they cannot drive the market for ever. Also the job market and banks starting to lend again are big deals, but those are obvious and yesterday’s news.
So what do I think is needed next? (Who can jump in our empty rolling car and steer us around that corner and away from that wall?) I think a new incentive should be introduced to spur the missing link in the housing recovery, the real estate investor. Not the jacked-up-on-HGTV flipping-manic-fly-by-night-know-it-all-jack-of-all-trades-price-war-bidding over exuberant type of the early to mid 00’s. But the professionals, and the rational small time investor looking to take advantage of an opportunity, and to make sound quality purchases of an asset that can never be worthless.* (As I have stated many times before, if you find a piece of property that is truly worth $0, tell me and I will buy it! Chernobyl excluded).
Tomorrow Day 3…The Investor the Missing Link
Good or Bad? Making me Dizzy!
http://finance.yahoo.com/news/Housing-construction-drops-apf-15288681.html
Housing construction, permits hit record lows
Housing construction, permits plunge to record lows in April; more signs of a bottom
Martin Crutsinger, AP Economics Writer
On Tuesday May 19, 2009, 10:49 am EDT
WASHINGTON (AP) -- A modest rebound in single-family home construction in April raised hopes Tuesday that the three-year slide in housing could be bottoming. But with the supply of unsold homes bulging, foreclosures rising and prices falling, no broad recovery is expected until next spring at the earliest.
The Commerce Department said construction of new homes and apartments fell 12.8 percent last month to a seasonally adjusted annual rate of 458,000 units -- the lowest pace on records going back a half-century. Applications for new building permits dropped 3.3 percent to an annual rate of 494,000, also the lowest on record.
All of last month's weakness, though, came in the volatile multifamily part of construction. Single-family construction and permits both rose, a signal that this bigger sector of home construction is starting to stabilize.
Construction of single-family homes rose 2.8 percent to an annual rate of 368,000, following a 0.3 percent gain in March and no change in February. Building permits for single-family homes were up 3.6 percent to a rate of 373,000 last month.
"U.S. housing remains very weak, but the stability in single-family units is encouraging," Benjamin Reitzes, an economist at BMO Capital Markets, said in a research note.
Multifamily construction plunged 46.1 percent to an annual rate of 90,000 units after a 23 percent fall in March. Permits for multifamily construction dropped 19.9 percent to 121,000 units.
Analysts said apartment construction is being hurt by a glut of condominiums on the market and by tightening credit conditions for commercial real estate.
They also said a real rebound for single-family construction remains distant as heavy job layoffs and record levels of foreclosures will continue to weigh on this sector.
The number of unsold homes on the market at the end of March fell 1.6 percent from a month earlier to 3.7 million, not including new homes, according to the National Association of Realtors. But since sales remain sluggish, it would take almost 10 months to rid the market of those properties, compared with about 6.5 months in 2006.
"Home building conditions remain weak," Paul Dales, U.S. economist for Capital Economics, said in a note to clients. "The excess supply of new homes for sale is still high and heavy discounts on foreclosed properties have made new homes less appealing. Any rebound in starts will be modest."
On Wall Street, stocks rose modestly in morning trading. The Dow Jones industrial average added about 20 points and broader indices also edged up.
The nation's current recession, the longest since World War II, began with a collapse in housing that triggered rising loan losses and the worst crisis in the financial sector in seven decades. The government has provided billions of dollars in support to try to stabilize the financial system and get banks to resume more normal lending to consumers and businesses.
Housing construction and sales are expected to bottom out in the second half of this year but economists are forecasting that prices will keep falling until next spring.
The median price of a new home sold in March was $201,400, down 23 percent from a peak of $262,600 two years earlier. The median price is the midpoint, which means half of the homes sold for more and half for less.
In April, housing construction fell 30.6 percent in the Northeast, the largest drop for any region. Housing starts dropped 21.4 percent in the Midwest and 21.1 percent in the South.
The West was the only region showing strength with a 42.5 percent jump in housing starts.
The National Association of Homebuilders reported Monday that its survey of builder confidence increased for the second straight month in May, reflecting growing optimism on the part of many builders.
The Washington-based trade group's index rose two points to 16, the highest reading since September. Even with the rebound, the index remains near historic lows. Index readings lower than 50 indicate negative sentiment about the market.
The housing slump has affected related industries such as home remodeling, but two nationwide chains reported better-than-expected earnings this week.
Home Depot Inc. said Tuesday its first-quarter profit climbed 44 percent on fewer charges, and the nation's largest home improvement retailer beat Wall Street's expectations despite lower sales. Smaller rival Lowe's Cos. on Monday reported a quarterly profit that also beat analysts' expectations and the company boosted its full-year outlook.
But the nation's top three homebuilders reported financial results earlier this month that give little hope the spring selling season will be strong enough to stop the red ink.
Pulte Homes Inc. and Centex Corp., which agreed to combine this year to become the largest U.S. homebuilder, said that while their quarterly losses narrowed, they continued to be battered by falling prices and a glut of unsold homes.
D.R. Horton Inc., currently the industry's No. 1 home builder, also reported that its losses had shrunk, but the company said it still faces challenges from foreclosures, high inventory levels, tight homebuyer credit, low consumer confidence and job losses.
The economy contracted by more than 6 percent in the final three months of last year and the first three months of this year, the steepest six-month downturn in a half-century. Analysts believe the recession will end sometime in the second half of this year but they are looking for the jobless rate, now at a 25-year high of 8.9 percent, to keep rising into 2010.
AP Real Estate Writer Alan Zibel contributed to this report.
Housing construction, permits hit record lows
Housing construction, permits plunge to record lows in April; more signs of a bottom
Martin Crutsinger, AP Economics Writer
On Tuesday May 19, 2009, 10:49 am EDT
WASHINGTON (AP) -- A modest rebound in single-family home construction in April raised hopes Tuesday that the three-year slide in housing could be bottoming. But with the supply of unsold homes bulging, foreclosures rising and prices falling, no broad recovery is expected until next spring at the earliest.
The Commerce Department said construction of new homes and apartments fell 12.8 percent last month to a seasonally adjusted annual rate of 458,000 units -- the lowest pace on records going back a half-century. Applications for new building permits dropped 3.3 percent to an annual rate of 494,000, also the lowest on record.
All of last month's weakness, though, came in the volatile multifamily part of construction. Single-family construction and permits both rose, a signal that this bigger sector of home construction is starting to stabilize.
Construction of single-family homes rose 2.8 percent to an annual rate of 368,000, following a 0.3 percent gain in March and no change in February. Building permits for single-family homes were up 3.6 percent to a rate of 373,000 last month.
"U.S. housing remains very weak, but the stability in single-family units is encouraging," Benjamin Reitzes, an economist at BMO Capital Markets, said in a research note.
Multifamily construction plunged 46.1 percent to an annual rate of 90,000 units after a 23 percent fall in March. Permits for multifamily construction dropped 19.9 percent to 121,000 units.
Analysts said apartment construction is being hurt by a glut of condominiums on the market and by tightening credit conditions for commercial real estate.
They also said a real rebound for single-family construction remains distant as heavy job layoffs and record levels of foreclosures will continue to weigh on this sector.
The number of unsold homes on the market at the end of March fell 1.6 percent from a month earlier to 3.7 million, not including new homes, according to the National Association of Realtors. But since sales remain sluggish, it would take almost 10 months to rid the market of those properties, compared with about 6.5 months in 2006.
"Home building conditions remain weak," Paul Dales, U.S. economist for Capital Economics, said in a note to clients. "The excess supply of new homes for sale is still high and heavy discounts on foreclosed properties have made new homes less appealing. Any rebound in starts will be modest."
On Wall Street, stocks rose modestly in morning trading. The Dow Jones industrial average added about 20 points and broader indices also edged up.
The nation's current recession, the longest since World War II, began with a collapse in housing that triggered rising loan losses and the worst crisis in the financial sector in seven decades. The government has provided billions of dollars in support to try to stabilize the financial system and get banks to resume more normal lending to consumers and businesses.
Housing construction and sales are expected to bottom out in the second half of this year but economists are forecasting that prices will keep falling until next spring.
The median price of a new home sold in March was $201,400, down 23 percent from a peak of $262,600 two years earlier. The median price is the midpoint, which means half of the homes sold for more and half for less.
In April, housing construction fell 30.6 percent in the Northeast, the largest drop for any region. Housing starts dropped 21.4 percent in the Midwest and 21.1 percent in the South.
The West was the only region showing strength with a 42.5 percent jump in housing starts.
The National Association of Homebuilders reported Monday that its survey of builder confidence increased for the second straight month in May, reflecting growing optimism on the part of many builders.
The Washington-based trade group's index rose two points to 16, the highest reading since September. Even with the rebound, the index remains near historic lows. Index readings lower than 50 indicate negative sentiment about the market.
The housing slump has affected related industries such as home remodeling, but two nationwide chains reported better-than-expected earnings this week.
Home Depot Inc. said Tuesday its first-quarter profit climbed 44 percent on fewer charges, and the nation's largest home improvement retailer beat Wall Street's expectations despite lower sales. Smaller rival Lowe's Cos. on Monday reported a quarterly profit that also beat analysts' expectations and the company boosted its full-year outlook.
But the nation's top three homebuilders reported financial results earlier this month that give little hope the spring selling season will be strong enough to stop the red ink.
Pulte Homes Inc. and Centex Corp., which agreed to combine this year to become the largest U.S. homebuilder, said that while their quarterly losses narrowed, they continued to be battered by falling prices and a glut of unsold homes.
D.R. Horton Inc., currently the industry's No. 1 home builder, also reported that its losses had shrunk, but the company said it still faces challenges from foreclosures, high inventory levels, tight homebuyer credit, low consumer confidence and job losses.
The economy contracted by more than 6 percent in the final three months of last year and the first three months of this year, the steepest six-month downturn in a half-century. Analysts believe the recession will end sometime in the second half of this year but they are looking for the jobless rate, now at a 25-year high of 8.9 percent, to keep rising into 2010.
AP Real Estate Writer Alan Zibel contributed to this report.
Good or Bad? Is it me or is it not clear here?
Housing construction, permits hit record lows
By MARTIN CRUTSINGER, AP Economics Writer Martin Crutsinger, Ap Economics Writer – 1 hr 24 mins ago
WASHINGTON – Housing construction plunged to a record low in April as a steep drop in apartment building offset a rebound in single-family construction. Permits for new projects also hit a new low.
The Commerce Department said Tuesday that construction of new homes and apartments fell 12.8 percent last month to a seasonally adjusted annual rate of 458,000 units, the lowest pace on records going back a half-century.
In a disappointing sign for the future, applications for new building permits dropped 3.3 percent to a new record low annual rate of 494,000.
Economists had expected home construction and building permits to post modest increases in April as signs that the worst collapse in housing activity in the post-World War II period was drawing to a close.
Even in last month's big decline, there were some signs of stabilization. Construction of single-family homes rose 2.8 percent to an annual rate of 368,000, following a 0.3 percent gain in March and no change in February. The stability in single-family construction likely will be viewed as a hopeful sign that the three-year slide in housing could be bottoming out.
The weakness last month came in the more volatile multifamily sector where construction plunged 46.1 percent to an annual rate of 90,000 units after a 23 percent fall in March.
Housing construction fell 30.6 percent in the Northeast, the largest drop for any region. Housing starts dropped 21.4 percent in the Midwest and 21.1 percent in the South.
The West was the only region showing strength with a 42.5 percent jump in housing starts.
The National Association of Homebuilders reported Monday that its survey of builder confidence increased for the second straight month in May, reflecting growing optimism on the part of many builders.
The Washington-based trade group's index rose two points to 16, the highest reading since September. Even with the rebound, the index remains near historic lows. Index readings lower than 50 indicate negative sentiment about the market.
Still, private economists viewed rising builder sentiment as an encouraging sign.
"Record high affordability, record low mortgage rates and the government's efforts to jump start economic growth are giving potential buyers optimism to step in and take a look around," said Jennifer Lee, an economist with BMO Capital Markets.
But analysts cautioned that the wave of foreclosures hitting the market means that builders still face tough competition to sell new homes.
The nation's top three homebuilders reported financial results earlier this month that give little hope the spring selling season will be strong enough to stop the red ink.
Pulte Homes Inc. and Centex Corp., which agreed to combine this year to become the largest U.S. homebuilder, said that while their quarterly losses narrowed, they continued to be battered by falling prices and a glut of unsold homes.
D.R. Horton Inc., currently the industry's No. 1 home builder, also reported that its losses had shrunk, but the company said it still faces challenges from foreclosures, high inventory levels, tight homebuyer credit, low consumer confidence and job losses.
By MARTIN CRUTSINGER, AP Economics Writer Martin Crutsinger, Ap Economics Writer – 1 hr 24 mins ago
WASHINGTON – Housing construction plunged to a record low in April as a steep drop in apartment building offset a rebound in single-family construction. Permits for new projects also hit a new low.
The Commerce Department said Tuesday that construction of new homes and apartments fell 12.8 percent last month to a seasonally adjusted annual rate of 458,000 units, the lowest pace on records going back a half-century.
In a disappointing sign for the future, applications for new building permits dropped 3.3 percent to a new record low annual rate of 494,000.
Economists had expected home construction and building permits to post modest increases in April as signs that the worst collapse in housing activity in the post-World War II period was drawing to a close.
Even in last month's big decline, there were some signs of stabilization. Construction of single-family homes rose 2.8 percent to an annual rate of 368,000, following a 0.3 percent gain in March and no change in February. The stability in single-family construction likely will be viewed as a hopeful sign that the three-year slide in housing could be bottoming out.
The weakness last month came in the more volatile multifamily sector where construction plunged 46.1 percent to an annual rate of 90,000 units after a 23 percent fall in March.
Housing construction fell 30.6 percent in the Northeast, the largest drop for any region. Housing starts dropped 21.4 percent in the Midwest and 21.1 percent in the South.
The West was the only region showing strength with a 42.5 percent jump in housing starts.
The National Association of Homebuilders reported Monday that its survey of builder confidence increased for the second straight month in May, reflecting growing optimism on the part of many builders.
The Washington-based trade group's index rose two points to 16, the highest reading since September. Even with the rebound, the index remains near historic lows. Index readings lower than 50 indicate negative sentiment about the market.
Still, private economists viewed rising builder sentiment as an encouraging sign.
"Record high affordability, record low mortgage rates and the government's efforts to jump start economic growth are giving potential buyers optimism to step in and take a look around," said Jennifer Lee, an economist with BMO Capital Markets.
But analysts cautioned that the wave of foreclosures hitting the market means that builders still face tough competition to sell new homes.
The nation's top three homebuilders reported financial results earlier this month that give little hope the spring selling season will be strong enough to stop the red ink.
Pulte Homes Inc. and Centex Corp., which agreed to combine this year to become the largest U.S. homebuilder, said that while their quarterly losses narrowed, they continued to be battered by falling prices and a glut of unsold homes.
D.R. Horton Inc., currently the industry's No. 1 home builder, also reported that its losses had shrunk, but the company said it still faces challenges from foreclosures, high inventory levels, tight homebuyer credit, low consumer confidence and job losses.
Monday, May 11, 2009
Why?
Everyday I find something that makes me ask, why? Not that I think we are crazy or anything like that, but just why? Why does it matter? Why do we care? Why did you waste time printing this? Why was it 40 degrees last night? Why will it not stop raining? Why are you still in this business? Why didn't I think of that? Why was it (80 or 20)degrees this morning and (snowing or 90) now? Why is is still raining? Why do they keep hiring weather people in KY? Why, why, why....etc. So in real estate I have these too, everyday. Why would you do that to your walls? Why did you choose that carpet? Why are you wasting our time? Why are you wasting my time? Why can't all buyers/sellers be like you? Why did I answer the phone? Why does every sales person in the world call me? Why is it that you are the only company that can put me on top of Google? Why did the last person say he was the only one? Why do you like this house not the other 23 we looked at? Why did I get that postage meter? Why, Why, Why....etc. So just to risk the sake of losing the 2 people that actually read this BLOG I am going to start sharing mine, and any other why's I get from time to time.....
A weird one for me that happened today....."..when asking a prospect who had called me about a listing I have, "Why do you want to move to Lexington anyway?" This after rambling about how good his current hometown was particularly the schools there, and that we really seemed like a town that thought we were stuck up and too good, not that he had any pre-misconceptions (sic) of course of KY.
I asked him if schools were important to him, he said no.
I asked him if the price range of the home he called about was a factor? No.
The area of town? No.
The home in particular? No.
Then what is it what made you call me? Pause....
I thought you called me?
Me....Pause.....pause....uh no.
OK bye. Click....
Why?
A weird one for me that happened today....."..when asking a prospect who had called me about a listing I have, "Why do you want to move to Lexington anyway?" This after rambling about how good his current hometown was particularly the schools there, and that we really seemed like a town that thought we were stuck up and too good, not that he had any pre-misconceptions (sic) of course of KY.
I asked him if schools were important to him, he said no.
I asked him if the price range of the home he called about was a factor? No.
The area of town? No.
The home in particular? No.
Then what is it what made you call me? Pause....
I thought you called me?
Me....Pause.....pause....uh no.
OK bye. Click....
Why?
Monday, May 4, 2009
Lexington Urban Infill
Urban infill in Lexington
Innovative projects give old downtown buildings new life
By Tanya J. Tyler
The buzzword for downtown these days is “infill” – projects that create new and innovative living spaces out of older buildings that otherwise might have been demolished.
Today HomeSeller looks at four exciting and diverse Lexington infill projects.
CAMPBELL HAGERMAN FLATS
At 441 West Second Street, a former classroom building for a now-closed women’s college is finding new life.
Campbell Hagerman Flats will have five condominiums, one on each floor, said developer/renovator Michael Satterly. He is buying one floor himself and fixing up the others.
“I invested in a building two doors down (from 441) that I bought right out of college in 1984,” Satterly said. “This building had been sitting vacant for the past 15 years. It saddened me to see it in a state of disrepair. I’d been talking to the owners and trying to come up with a way that I could purchase it, and finally we came up with something that worked.”......
http://www.kentucky.com/985/story/669560.html
Innovative projects give old downtown buildings new life
By Tanya J. Tyler
The buzzword for downtown these days is “infill” – projects that create new and innovative living spaces out of older buildings that otherwise might have been demolished.
Today HomeSeller looks at four exciting and diverse Lexington infill projects.
CAMPBELL HAGERMAN FLATS
At 441 West Second Street, a former classroom building for a now-closed women’s college is finding new life.
Campbell Hagerman Flats will have five condominiums, one on each floor, said developer/renovator Michael Satterly. He is buying one floor himself and fixing up the others.
“I invested in a building two doors down (from 441) that I bought right out of college in 1984,” Satterly said. “This building had been sitting vacant for the past 15 years. It saddened me to see it in a state of disrepair. I’d been talking to the owners and trying to come up with a way that I could purchase it, and finally we came up with something that worked.”......
http://www.kentucky.com/985/story/669560.html
Tuesday, April 28, 2009
Lexington Named to Top 10 Places to Live in America
Relocate America has named Lexington one of the best places to live in AMerica...
Read Article on Lexington Here.......
See all 10 here...
Read Article on Lexington Here.......
See all 10 here...
Monday, April 20, 2009
New Construction Permits Up- Another Positive Sign?
There is an article in todays Lexington Herald Leader, that says construction activity is up 40% this year from last year. Good news unless you consider it was virtually zero for last year.....but all being told I think this is a good sign, see article here.
http://www.kentucky.com/181/story/766496.html
Pace of building picks up in Lexington
By Scott Sloan and Greg Kocher -
Long associated with only doom and gloom, the economy became the reason for hope last week when Lexington Mayor Jim Newberry pitched a city budget that proposed a 1.5 percent increase in spending for the next fiscal year.
Citing a 40 percent increase in building permits for single-family homes, Newberry said there's "legitimate optimism" about city revenues.
It's an optimism shared by those who follow building trends around Lexington, although it appears to have not yet spread to surrounding counties. Those in the city say the rise in permits might be an indication that the housing business, whose mortgage meltdown fueled the recession, could finally be turning around. .......................................
http://www.kentucky.com/181/story/766496.html
Pace of building picks up in Lexington
By Scott Sloan and Greg Kocher -
Long associated with only doom and gloom, the economy became the reason for hope last week when Lexington Mayor Jim Newberry pitched a city budget that proposed a 1.5 percent increase in spending for the next fiscal year.
Citing a 40 percent increase in building permits for single-family homes, Newberry said there's "legitimate optimism" about city revenues.
It's an optimism shared by those who follow building trends around Lexington, although it appears to have not yet spread to surrounding counties. Those in the city say the rise in permits might be an indication that the housing business, whose mortgage meltdown fueled the recession, could finally be turning around. .......................................
Friday, April 17, 2009
3 reasons why now’s the time for renter’s to become home owners.
If you are currently renting a home or apartment now is the time to consider becoming a home owner. There are 3 very simple reasons why this is true and here they are.
Sellers are motivated and there are some great deals out there
Over the past couple of months I have seen my clients get some great deal on property. I have had clients buy homes for several thousand dollars below appraisal. I have also had customers who have purchased foreclosures that require very little if any work and save a ton of money. In many other cases I have seen sellers make concessions like replacing old carpet, updating fixtures and paying all closing costs and pre-paid’s. The bottom line is if you don’t have a house to sell you are positioned as good as you could possibly be to get a great deal on a home. Make sure you are connected with a great Realtor and they will help you find it.
Mortgage Rates are at Historic Lows
The Federal Reserve is currently purchasing Mortgage Backed Securities in an effort to drive mortgage rates down to boost the housing market. (For an in-depth explanation of this see Marty Preston’s Blog entry titled A Mortgage Pro’s Take on the Market from April 2nd) What this mean to you is that interest rates have dropped to low’s that have never been seen. Take this example; I have a first time buyer client who was renting a 2 bedroom town home in the Hamburg Pavilion area for just over $900 per month. With the help of a local Realtor, we were able to find her a 3 bedroom home less than a mile away. The home was in great shape and needed no repairs. With a 3.5% down payment on an FHA loan (that was gifted to her by her parents) and today’s low rates we were able to get her a payment $10 per month less than her rent including taxes and insurance! At today’s low rates you can own a home for about what you are paying rent. Because of the amount of money the government is pumping into the financial system inflation will soon be on the rise. When it does mortgage rates will be to. Take advantage of the low rates now before it is too late.
The Government is going to give you an $8000 Tax Credit to Buy
As part of the recently passed stimulus package you will get an $8000 tax credit if you have not owned a home in the last 3 years and do it before December the 1st of this year. What this means in very basic terms is as long as you make less than $75,000 if your single and less than $150,000 if your married you will receive a line item credit for $8000 on your 2009 tax return. So think of it this way, if you normally get a refund take that amount and add $8000 bucks to it. If you normally pay, take $8000 away from what you would owe. This is a great incentive and something that everyone who can should take advantage of.
2009 is going to be the year of the first time buyer. The bottom line is if you choose to buy you are going to get a great deal, at a historically low rate and the federal government is going to give you 8 grand to do it. If you would to get to get pre-approved and receive a FREE Home Buyers Handbook give me a call today!
Happy Home Buying!
Brad Hacker, Senior Mortgage Planner
mymortgagepro
Toll Free Phone (866) 293-0411
Fax (859) 293-0511
Mobile (859) 351-6495
Sellers are motivated and there are some great deals out there
Over the past couple of months I have seen my clients get some great deal on property. I have had clients buy homes for several thousand dollars below appraisal. I have also had customers who have purchased foreclosures that require very little if any work and save a ton of money. In many other cases I have seen sellers make concessions like replacing old carpet, updating fixtures and paying all closing costs and pre-paid’s. The bottom line is if you don’t have a house to sell you are positioned as good as you could possibly be to get a great deal on a home. Make sure you are connected with a great Realtor and they will help you find it.
Mortgage Rates are at Historic Lows
The Federal Reserve is currently purchasing Mortgage Backed Securities in an effort to drive mortgage rates down to boost the housing market. (For an in-depth explanation of this see Marty Preston’s Blog entry titled A Mortgage Pro’s Take on the Market from April 2nd) What this mean to you is that interest rates have dropped to low’s that have never been seen. Take this example; I have a first time buyer client who was renting a 2 bedroom town home in the Hamburg Pavilion area for just over $900 per month. With the help of a local Realtor, we were able to find her a 3 bedroom home less than a mile away. The home was in great shape and needed no repairs. With a 3.5% down payment on an FHA loan (that was gifted to her by her parents) and today’s low rates we were able to get her a payment $10 per month less than her rent including taxes and insurance! At today’s low rates you can own a home for about what you are paying rent. Because of the amount of money the government is pumping into the financial system inflation will soon be on the rise. When it does mortgage rates will be to. Take advantage of the low rates now before it is too late.
The Government is going to give you an $8000 Tax Credit to Buy
As part of the recently passed stimulus package you will get an $8000 tax credit if you have not owned a home in the last 3 years and do it before December the 1st of this year. What this means in very basic terms is as long as you make less than $75,000 if your single and less than $150,000 if your married you will receive a line item credit for $8000 on your 2009 tax return. So think of it this way, if you normally get a refund take that amount and add $8000 bucks to it. If you normally pay, take $8000 away from what you would owe. This is a great incentive and something that everyone who can should take advantage of.
2009 is going to be the year of the first time buyer. The bottom line is if you choose to buy you are going to get a great deal, at a historically low rate and the federal government is going to give you 8 grand to do it. If you would to get to get pre-approved and receive a FREE Home Buyers Handbook give me a call today!
Happy Home Buying!
Brad Hacker, Senior Mortgage Planner
mymortgagepro
Toll Free Phone (866) 293-0411
Fax (859) 293-0511
Mobile (859) 351-6495
Tuesday, April 14, 2009
FINALLY!!!!
I finally found it, a positive real estate article online. It is pretty generic and basically what we say everyday, but none-the-less....
http://realestate.yahoo.com/promo/10-mistakes-first-time-home-buyers-make.html
The market is really heating up, every agent I talk to is as busy now as ever.....
http://realestate.yahoo.com/promo/10-mistakes-first-time-home-buyers-make.html
The market is really heating up, every agent I talk to is as busy now as ever.....
Wednesday, April 8, 2009
$8,000 Tax Credit for First-time Home Buyers
New $8,000 Tax Credit for First-time Home Buyers
Great news for first-time home buyers in 2009! The stimulus plan that President Obama signed into law contains a new $8,000 tax credit for qualified first-time home buyers. And, unlike the $7,500 tax credit from last year, this credit does NOT have to be repaid to the government, as long as you stay in the home for at least 36 months after the purchase date.
Remember, a tax credit is much more valuable than a tax deduction. A tax credit reduces dollar for dollar the amount of tax you owe. A deduction merely reduces the amount of your income that is taxable. This means the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset.
Who?
First-time buyers or anyone who hasn't owned a home in the 3 years prior to a purchase of a primary residence may qualify for a tax credit of up to 10% of the purchase price or $8,000, whichever is less. To qualify for the full credit, the buyer's modified adjusted gross income must be less than $75,000 for single taxpayers and $150,000 for married taxpayers filing a
joint return. Partial credit is proportionally reduced for incomes under $95,000 (single) or $170,000 (married). For married taxpayers, the homeownership history of both the home buyer and his/her spouse are taken into account. This means if you or your spouse has owned a principal residence in the last 3 years, neither you nor your spouse qualifies for the credit.
What?
According to the IRS, a primary residence is the one you live in most of the time. It can be a house, houseboat, housetrailer, cooperative apartment, condominium, or other type of residence. If you constructed your main home, you are treated as having purchased it on the date you first occupied it.
When?
The $8,000 tax credit is available for qualifying home purchases made from Jan. 1, 2009, until Dec. 1, 2009. This is not a typo. To receive the credit you must purchase a qualified home before December 1st, 2009 – not the end of the year.
How?
Unfortunately, you can NOT use the credit as a down payment. To receive the credit, you must purchase a qualified home first and then claim it on either your 2008 or 2009 taxes. If you make a qualified purchase after April 15, or after having already filed your 2008 taxes, you and your tax professional can submit an amendment to your return. To claim the credit, use
form 5405.
Why?
The current combination of lower home prices and lower interest rates makes for an amazing opportunity to buy real estate. Add to that this $8,000 gift from the government, and renting a home just doesn't make much sense.
If you or someone you know is ready to stop paying the landlord's mortgage and start building equity in your own home, give
us a call. We'll run the numbers and see what makes sense for your individual financial needs.
Sincerely,
Wade Kundinger
Royal Mortgage Company, Inc.
(859) 264-8183
wkundinger@insightbb.com
Great news for first-time home buyers in 2009! The stimulus plan that President Obama signed into law contains a new $8,000 tax credit for qualified first-time home buyers. And, unlike the $7,500 tax credit from last year, this credit does NOT have to be repaid to the government, as long as you stay in the home for at least 36 months after the purchase date.
Remember, a tax credit is much more valuable than a tax deduction. A tax credit reduces dollar for dollar the amount of tax you owe. A deduction merely reduces the amount of your income that is taxable. This means the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset.
Who?
First-time buyers or anyone who hasn't owned a home in the 3 years prior to a purchase of a primary residence may qualify for a tax credit of up to 10% of the purchase price or $8,000, whichever is less. To qualify for the full credit, the buyer's modified adjusted gross income must be less than $75,000 for single taxpayers and $150,000 for married taxpayers filing a
joint return. Partial credit is proportionally reduced for incomes under $95,000 (single) or $170,000 (married). For married taxpayers, the homeownership history of both the home buyer and his/her spouse are taken into account. This means if you or your spouse has owned a principal residence in the last 3 years, neither you nor your spouse qualifies for the credit.
What?
According to the IRS, a primary residence is the one you live in most of the time. It can be a house, houseboat, housetrailer, cooperative apartment, condominium, or other type of residence. If you constructed your main home, you are treated as having purchased it on the date you first occupied it.
When?
The $8,000 tax credit is available for qualifying home purchases made from Jan. 1, 2009, until Dec. 1, 2009. This is not a typo. To receive the credit you must purchase a qualified home before December 1st, 2009 – not the end of the year.
How?
Unfortunately, you can NOT use the credit as a down payment. To receive the credit, you must purchase a qualified home first and then claim it on either your 2008 or 2009 taxes. If you make a qualified purchase after April 15, or after having already filed your 2008 taxes, you and your tax professional can submit an amendment to your return. To claim the credit, use
form 5405.
Why?
The current combination of lower home prices and lower interest rates makes for an amazing opportunity to buy real estate. Add to that this $8,000 gift from the government, and renting a home just doesn't make much sense.
If you or someone you know is ready to stop paying the landlord's mortgage and start building equity in your own home, give
us a call. We'll run the numbers and see what makes sense for your individual financial needs.
Sincerely,
Wade Kundinger
Royal Mortgage Company, Inc.
(859) 264-8183
wkundinger@insightbb.com
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