Archive for October 2009
Thursday, October 29th, 2009
Many first time home buyers have become frustrated because the first time Federal Tax Credit will soon expire across the country for buyers who want to buy in American Fork and surrounding cities in Utah County and they haven’t found real estate they want yet! Well, it looks promising that help is on its way! According to RISMEDIA, October 29, 2009 (MCT/The Wall Street Journal) it states that the Senate plans to extend and expand the tax credit. The passage is still uncertain, but if it passes there would be a tax credit up to $8,000 for first time home buyers and a new tax credit for some existing homeowners up to $6,500 with a new deadline of June 30, 2010!
What would the qualifications be? All homebuyers who have been in their current residence for a consecutive five year period in the past eight years. $125,000 income for single taxpayers and $250,000 for joint taxpayers. Sales agreements would need to be in process by April 30, 2010 with June 30, 2010 as a settlement deadline. According to the Ris Media article, the credit has contributed to three consecutive months of rising home prices nationwide. The full Senate and the House still need to vote on it, but it looks positive. So, for first time home buyers it still looks good to find a home with some tax credit help.
Tags: American Fork, buyers, deadline, Existing Homeowners, First time buyers in Utah, First time home buyer in American Fork, First Time Home Buyers, homebuyers, House, Real Estate Agent, Senate, Tax credit, utah, Utah County
Posted in Possible Federal Tax Credit Extension for First Time Home Buyers and Some Existing Home Owners | No Comments »
Thursday, October 22nd, 2009
It’s nice to know we have an unemployment rate in Utah that is less than our bordering states. According to the “Insight, Economic News of Utah and the Nation”, Vol 12 No 4/Autumn 2009/Jeff Thredgold, Zions Bank Economic Consultant, Utah has an average unemployment rate of 6.0% compared to the five states sharing a border with Utah with an average unemployment rate of 9.0%.
This report correlates with sales in Utah County. According to the Utah County Stats, sales of this year are 12% higher than last year – 529 Aug 2009 sales to 473 of 2008 sales. Sales are up 147% since January. Utah County’s active listings are up as well. In Utah County, the housing market is now holding steady. Homes are more affordable and currently we have attractive mortgage rates. It is a time for sellers and buyers to have confidence in the housing market locally.
According to Thredgold, “The state’s longer term economic potential, tied to strong population growth, a solid work ethic, reasonable business and living costs, high-quality universities, and world-class recreational opportunities for its residents and visitors, will rival any in the country.”
Tags: Add new tag, American Fork, buyers, confidence, economic outlook, Housing Market, mortgage rates, population growth, recreation, sales, sellers, unemployment, unemployment rate, universities, utah, Utah Association of Realtors, Utah County, work ethic
Posted in Utah Economy | No Comments »
Friday, October 16th, 2009
I thought it would be interesting to share with you some highlights on the Utah Association of Realtors Convention held in Midway, UT, October 5-8, 2009. It was held at the Zermatt Resort and Spa – nice facility – we enjoyed it! There were several highlights for me: one, the “Legal Panel” presented by Chris Kyler, Curtis Bullock, Peter Crhristensen, Mike Ostermiller, Bryan Kohler, Brad Baldwin and Dan McDonald – attorneys for UAR and the Wasatch Front Regional Multiple Listing Service. They covered topics ranging from referral fees for real estate agents to new legal forms to procuring cause to the “Do Not Call” list to new scams to fraud to updates on the MLS. Just about the in and outs of legal real estate issues and what to watch for. Several new handy forms we now have as agents are the “Buyer’s Notice of Cancellation ” and the “Confirmatin of Receipt of Earnest Money” and short sale addendum. Nice! Christensen’s explanation of the “Mortgage Disclosure Improvement Act of 2008 – Amendment of Reg. Z” was very helpful. For sure, buyers need to be advised to be aware of time frames required before a loan can close.
Another highlight for me was Governor Gary Herbert’s address. He’s a former real estate agent, he knows the industry and he knows what it takes to create jobs and to keep the economy going for the housing market. Did you know that Utah is considered a “Safe” state? Also, we’ve been awarded the “Best Managed State in America”. Governor Herbert’s # 1 concern is job growth. He’s created a “Dream Team”, Spencer Echolds, Josh Romney and Derrick Miller to recruit and bring in companies. Job growth will Utah’s economy and housing market. No doubt, I’m in!
Tags: attorneys, buyers, Do Not Call list, Dream Team, earnest money, Housing Market, job growth, Legal Panel, loan, MLS, Real Estate Agent, Recruit, Referral Fees, stimulate, utah, Utah Association of Realtors, Utah Association of Realtors Convention
Posted in Utah Real Estate Convention | No Comments »
Wednesday, October 7th, 2009
I received the following email from NAR this morning and felt it would be good to post it on my blog. It’s message is timely in that the $8,000 first time home buyer’s tax credit will be expiring soon and buyers will need to be under contract by October 15, 2009 to safely close by November 30th, 2009 and receive the tax credit. Importantly, I will lift my voice to join many other realtors in NAR in explaining to Congress that the housing recovery is not yet completed and we are asking for an extension of the tax credit to 2010 for first time home buyers.
Realtor Action Alert, Oct 7, 2009, NAR Government Affairs
A recent Washington Post article pointed out that many of the housing indicators are pointing in the same positive direction. Several analysts attribute the improvements to the soon to expire $8,000 tax credit for first-time homebuyers, historically low interest rates, and rock bottom prices in many areas.
But the article continues to say that “If the first-time homebuyer tax credit expires as scheduled on Nov. 30, many analysts expect a drop in home sales and prices, though they disagree on how big the drops will be. The situation looks even more dire once swelling unemployment numbers and related delinquencies and foreclosures are factored in.”
The $8000 first-time homebuyer tax credit will end soon. As the law stands today, eligible buyers will actually need to get under contract almost immediately in order to be able to close their transactions in time. The law requires that closing must occur by November 30th for buyers to actually take the credit.
The housing market is stabilizing and improving, but the housing market crisis won’t end this year. We can’t wait until late in the year to see what happens.
Tags: 2008 Tax Credit, buyers, Congress, drop in home sales and prices, Federal Tax Credit Extension, First time buyers in Utah, Foreclosures, Housing market crisis, low interest rates, NAR, Realtors, Tax credit, utah
Posted in 2010 New Tax Credit for Home Buyers | No Comments »
Monday, October 5th, 2009
There has been a positive increase or gain in home sales over the past 7 months that leads to the opinion that the Federal Tax Credit has been an impetus for first time home buyers in the housing market.
According to Les Christie, CNNMoney.com staff writer: “The August Pending Home Sales Index from the National Association of Realtors (NAR) surged 6.4%, the seventh straight month-over-month improvement in the indicator. The increase far exceeded economists’ expectations — a panel of analysts surveyed by Briefing.com had forecast a 1% rise.”
“No doubt many first-time buyers are rushing to beat the deadline for the $8,000 tax credit, which expires at the end of next month,” said Lawrence Yun, NAR’s chief economist.
“That doesn’t mean that closing deals hasn’t been a challenge for the housing market. ’The rise in pending home sales shows buyers are returning to the market and signing contracts, but deals are not necessarily closing because of long delays related to short sales, and issues regarding,’ he said.”
What does that mean for the housing market in cities as American Fork, Pleasant Grove, Cedar Hills, Highland, Lehi and Alpine in northern Utah County in Utah? It means that first time home buyers should understand that now is the time to buy or invest to be able to use the 2008 Federal Tax Credit ; however, there may be a waiting period from 2 to 6 months if they offer on a short sale property. If the deadline for the tax credit arrives before the closing of their short sale transaction, their deal will not qualify for the tax credit. First time home buyers need to weigh their options before they offer and choose wisely.
Tags: 2008 Tax Credit, Add new tag, First time buyers in Utah, First time home buyer in American Fork, First Time Home Buyers, First time home buyers in Utah, NAR, Real Estate, short sales, stimulus, Tax credit, utah
Posted in Short Sale | No Comments »
Monday, October 5th, 2009
Losing a job is devastating – especially if you own a home. How do you make the mortgage payment if you don’t have three to six months savings? What happens if you don’t have a job when the savings run out? What if you’re the only one bringing home a check?
According to Amy Hoak, RisMedia, Sept, 2009, “Between programs offered by the government and loan servicers, there are additional options available for today’s homeowners before they slip into foreclosure — if they speak up and ask for help. Or maybe the best answer is to start over again by cutting your losses and selling your home or pursuing a short sale if you owe more on your mortgage than your home is worth, those in the industry say.”
Whatever a home owner decides to do, the decision should be made before going into default – not making a mortgage payment and getting behind. If you know there is a problem with keeping up with mortgage payments, you should get in touch with your lender and pursue the Federal Loan Modification program. Talk to a professional real estate agent about a short sale. Find out if the loan modification program or the short sale will help you in your situation and then act. There are programs and professionals available to help you if you lose your job and are a home owner. The key is acting quickly.
Tags: Federal Loan Modification, Foreclosures, Home Owner, Job Loss, mortgage
Posted in Job Loss | No Comments »
Sunday, October 4th, 2009
Now is the time to buy for first time home buyers in order to qualify for the $8,000 Federal Credit that will end November 30th. Most loans take 30 days to process and buyers will be in better shape without stress and extra time pressure to be under contract by October 15th. According to Gregory Phillips in his article in RisMedia, “Time Expiring on Home-Buying Tax Credit”, Oct 1, 2009, the tax credit was created from the $787 billion dollar Federal Stimulus package in February.
There are some including those from the Real Estate Industry who are trying to extend the deadline. It will be very positive for first time home buyers if the extension does come through; but, now is the time to take advantage of 2008′s Federal Credit for the first time home buyer!
Tags: 2008 Tax Credit, American Fork, buyers, Federal Stimulus Package, First time buyers in Utah, First time home buyer in American Fork, loans
Posted in First Time Home Buyers | No Comments »
Ave. Home Sale: $379,000
Avg. Sales Price: 379,000
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