RISMedia, a real estate news source, recently reported that at the top of the most frequently asked questions list is, “How will we know when the market has bottomed out and we should buy a home”? We have experienced that question many times and I concur it is on the front of most buyer brain lobes. Buyers want to buy right at the bottom; who wouldn’t?
The answer does not appear to be all that difficult and I agree with the report in that there are two major factors that one should consider and watch. When you see an increase in listed sales and sold prices and a decline in inventory you can be reasonably sure we have hit bottom, right?
Nationally it appears we have started to see a decline in listing volume; it is however much more difficult to gauge the sold price data. Sale prices will be affected by some of the discounted foreclosure sales; hence lower average prices.
Locally we have been far less affected by foreclosures but inventory remains high compared to three years ago. Buyers still have, in my opinion, a great deal of opportunity because of listed volume and interest rates that continue to be historically low. That all could change if rates increase and inventories shrink.
Personally I was never any good at stock market timing, too many variables! Timing the real estate market isn’t that easy. It's made up of more than inventories, sales prices and sales volume. The overall economy and other factors such as buyer confidence, location, population growth, job growth and more, has an affect on the real estate market. Oh, and don’t forget about the fact that this is an election year. What’s your opinion; I’d like to hear from you?
On the home front - we've had just outstanding summer weather. Each morning when I leave the lake to go to work I wonder why? Go back to the beginning of the above paragraph….I never was good at market timing, hence I work. Thank God I am able!
Life is Good…..Enjoy!
Gary Nathan
cell 715.699.4040
Amanda Mavis
Woodland Dev. & Realty
Hayward, WI 54843
nathan@garynathan.com
www.garynathan.com
www.haywardwaterfront.com
Thursday, August 07, 2008
Friday, August 01, 2008
Housing Stimulus
Greetings from sunny, warm Hayward!
President Bush just signed into law the Housing and Economic Recovery Act of 2008. This is a major action that certainly affects consumers, REALTORS®, and our nation. As a result homebuyers will soon have access to more affordable financing, and first-time homebuyers (those who have not owned a home for three years) will receive a tax-credit to help them enter the market. Some may say "too little too late" but I believe we needed the action.
H.R. 3221, the “Housing and Economic Recovery Act of 2008 signed the bill on July 30, 2008. The bill includes the following provisions:
- GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500.
- FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program.
- Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest-free loan).
- FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans.
- Seller-funded downpayment assistance programs VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.
- Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year.
- GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.
- Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.
- National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs.
- CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.
- LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.
Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system and requires a parallel HUD system for states that fail to participate.
For more information, visit http://www.realtor.org/governmentaffairs.
The weather has been superb and Sawyer County has been buzzing with tourists and second home owners. Come on up and see us! Enjoy.....Life is Good!
Gary Nathan
Amanda Mavis
Woodland Dev & Realty
Hayward, WI
nathan@cheqnet.net
http://www.garynathan.com/
http://www.haywardwaterfront.com/
President Bush just signed into law the Housing and Economic Recovery Act of 2008. This is a major action that certainly affects consumers, REALTORS®, and our nation. As a result homebuyers will soon have access to more affordable financing, and first-time homebuyers (those who have not owned a home for three years) will receive a tax-credit to help them enter the market. Some may say "too little too late" but I believe we needed the action.
H.R. 3221, the “Housing and Economic Recovery Act of 2008 signed the bill on July 30, 2008. The bill includes the following provisions:
- GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500.
- FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program.
- Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest-free loan).
- FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans.
- Seller-funded downpayment assistance programs VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.
- Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year.
- GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.
- Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.
- National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs.
- CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.
- LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.
Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system and requires a parallel HUD system for states that fail to participate.
For more information, visit http://www.realtor.org/governmentaffairs.
The weather has been superb and Sawyer County has been buzzing with tourists and second home owners. Come on up and see us! Enjoy.....Life is Good!
Gary Nathan
Amanda Mavis
Woodland Dev & Realty
Hayward, WI
nathan@cheqnet.net
http://www.garynathan.com/
http://www.haywardwaterfront.com/
Subscribe to:
Posts (Atom)