Home Buyers Still Waiting

According to the most recent information from Trulia home buyers are staying on the fense when it comes to buying a home.  Market uncertainty is scaring away people who don’t own a home, particularly those who are in the 18-34 age group previously most likely to buy, says online real estate service Trulia.

More than 70 percent of non-homeowners surveyed say they have no plans to purchase a home in the next year. But the good news is 12 percent of non-homeowners say they expect to buy a home in the next 12 months.

Non-homeowners with an annual household income of $50,000 to $75,000 agreed more strongly (78 percent) on a home being central to achieving their personal American Dream than those with an annual household income of under $49,000 or over $75,000 (51 percent and 53 percent, respectively).

But first time home buyers should NOT wait too long.  Now is a great time to go out an buy your first home.  Why?  Because many buyers think that there is an actual buying season and that our current one is over for this year.  This is just not true.  What this does is keep your competition for that house away.  Your competition just quit looking and buying.  This leaves you an open field.  Another reason is the tax credit that first time home buyers get when they purchase their first home. The First-time Home Buyer Tax Credit was passed this year as part of the Housing and Economic Recovery Act (H.R. 3221) on July 30 and targets any individual or household that hasn’t owned a home for at least three years. As a first time home buyer, you can take the credit on your 2008 tax return if you buy your house this year after April 9. It’s worth up to $7,500 and can be taken in a single tax year. Authorization for the credit ends July 1, 2009, so if you wait to buy in the first half of 2009 you can take the credit on their 2009 tax return. But don’t wait too long…settlement MUST take place prior to July 1, 2009.

But remember, the actual credit amount is set as a percentage of the home purchase amount. That percentage amount is 10 percent, so you can get 10 percent of the home price credited against your tax liability, up to a maximum $7,500. Income limits are $75,000 for individuals and $150,000 for households. Individuals whose income exceeds the $75,000 limit but isn’t more than $95,000 can still take the credit but on a reduced basis. The same thing applies to households earning up to $170,000.

Any house is eligible as long as it’s a primary residence and is in the United States.

To help keep the program cost effective for taxpayers, the federal government requires the tax credit to be paid back in small, 6.67-percent increments over 15 years, although repayment will be no more than $500 yearly and payments will not start until 2011. For that reason, some analysts have likened the credit to a 15-year, interest-free loan to help make home buying affordable.

There’s one restriction on the type of financing that you can use if you plan to take the credit. That restriction is on tax-exempt mortgage financing. That only applies if you are using below-market interest-rate financing from a public agency or nonprofit that’s funding the loan using proceeds from a tax-exempt mortgage-revenue bond issue. For most buyers, this won’t be an issue. It’s mainly an issue for low-income buyers using special mortgage financing.

If you have any questions, please check our First Time Home Buyer’s Knowledge Base. You can also access the First-time home buyer tax credit chart.

Terry Iwaniw
REALTOR Associate
First Time Home Buyer Specialist
Foreclosure Prevention Consultant
RE/MAX Home Team
609-417-1086
http://www.terryi.com/
http://www.snewjerseyhomes.com/

Tags: buying a home, home inventories, housing market, real estate market

What Now? More From The Financial World

Previously, we detailed the news about Fannie Mae and Freddie Mac. Today the news broke about Lehman Brothers and Merrill Lynch. The on-going saga of the sub-prime mortgage loans claims another set of victims. One is down for the count and the other is on life-support. Again, greed overcame common-sense.

One of our key strategic mortgage partners sent us the following message that gives a summary of that news.

“Its just another manic Monday”…The Bangles. If you thought last Monday was wild on the news from Fannie and Freddie, the headlines that lead us into this week are even crazier. First, Mortgage Bonds are up sharply, which should lead to much better home loan rates and the great refinance opportunities that we have been expecting.

Let’s begin with more fallout in the financial sector. Lehman Brothers is done after 158 years, thanks to their exposure to sub-prime mortgages. And another casualty, that was narrowly avoided was Merrill Lynch, which is being acquired by Bank of America, again this is all due to their greed and exposure in the risky mortgage business. Also on the ropes is insurance giant, AIG, as they try to raise cash quickly to stay afloat.

So what do all these headlines mean to us in the mortgage business? It’s a time to look for opportunities. Pricing will be at its best level in some time, homes are at much more attractive prices, terms to purchase are far more favorable than they have been and the forecast could get even better. Prices should improve nicely today as money flows out of Stocks - but there is another story on the Bond side. We know that Treasury Bonds offer the lowest yield with the lowest risk. Then Mortgage Bonds offer a higher yield and for an even greater yield, there are Corporate Bonds. But they do carry higher risk. With all the turmoil in the financial sector, the risk on Corporate Bonds has increased significantly. While this will translate to higher yields being offered, the risk on Corporate Bonds may be greater than the appetite or tolerance of investors. In fact, many funds will preclude
investments in riskier Bonds.

As fund managers and investors seek alternatives they will notice that Mortgage Bonds offer a much higher yield than Treasuries with the same guarantee. This should help Mortgage Bond pricing down the road…especially, with some potential good news on inflation. The Dollar has made significant gains against other major currencies, which should help import prices. The Job market is weak and that should keep wage based inflation in check. The move in Oil lower has been dramatic. A $52 drop in two months puts Oil at $95…likely on its way to $85. All these positive inflationary factors spells good news for mortgage rates.

But this time it will not be as easy, as credit and appraised values will represent more of a challenge. That said, there are a lot of deals to be had. Brush up on how to improve credit scores with the tools inside MMG and do as much research as possible on valuations for potential refi clients ahead of time.

Remind your clients that these drops in rates don’t last forever and should be taken advantage of if they make sense. Greed kills.

As we have said quite a few times, both on this blog, in messages to our cusotmers, and in face-to-face meetings that the wrong focus is one that focuses on the price of the home you are looking at, but the price of the money you need to purchase that home. You will purchase that home only once, but you will be making payments for that mortgage loan month after month for many years.

Essentially, this is the time to buy a home! The price of money, in terms of interest rates are low. FHA loans are at 5.5% and Conventional 30 year loans are at 5.875%. If you can qualify for a mortgage loan and want to buy a home, this is the time to do it. People who were looking for homes are now giving up because they’ve been told that it is the “end of the home selling season” and will stop pursuing that new home. You nnow have less competition out there. The homes that were for sale did not automatically get removed from the market. Many are still for sale!

But no activity or serious offers will cause them to pull their homes off the market…either permenantly or temporarily.

This is the period that most buyers miss out on opportunities. They want to wait until the next home selling season next year, when EVERYONE IS THINKING OF DOING THE SAME THING. Think about it. When would you like to be purchasing a new home? When everyone else is looking at the same home as you or would you prefer that they stay home so you can have your pick of homes?

If we can’t find your new home, it doesn’t exist.

Linda & Terry Iwaniw
REALTOR Associates
RE/MAX Home Team
Laurel Springs, NJ
http://www.snewjerseyhomes.com/
http://www.i-teamhomes.com/
609-417-1086

Tags: home inventories, home inventory, home marketplace, home sales, housing market, Marketplace, mortgage rates, Real Estate

The Housing Market in New Jersey

The housing market will regain its footing eventually is a certainty – and there are developing signs that we are seeing the early stages of a recovery now.  The housing market in New Jersey has neither been worsening or improving, for the past several months. Although, this is not welcome news for both home sellers and new home builders attempting to sell a home now because it likely ensures that prices will continue to drift lower over the short term. However, that may change soon because the Contract-Sales in New Jersey have held pretty steady at a monthly pace of about 7,000 homes for the last 3 months while the Unsold Inventory levels have actually started to decline. Also of interest that over the past 12 months the Unsold Inventory levels have increased by only 1%, suggesting that we’ve reached the high-water market for the supply of homes on the market. But make no mistake about it, the weakness affecting the housing market is not over yet  but the end to the downward cycle is getting closer.This past June, the housing market’s performance reflected an Unsold Inventory supply of 10.8 months (a significant decrease from 15.6 months at the beginning of the year and a bit higher than 8.5 months  of one year ago). More evidence of stabilization is that the supply of unsold homes has shown little change in the past 4 months (10.5 months in March, 10.0 months in April, 10.4 months in May and 10.8 months in June). Because the Unsold Inventory is operating in such a narrow range implies that the housing market is starting to gain a foothold, which is a significant first-step, toward recovery.

What has clearly worsened recently however, is the weakening of the national and local economy resulting in significant job losses. This environment serves to erode home buyer confidence due to resulting concerns about job security and future earnings growth. As was discussed in detail at our Spring Housing Workshops earlier this year, the timeline for a recovery of the housing market is in the hands of the economy. An optimistic view on the economy is for a short-lived economic slowdown (recession) which reverses course later this year and sets the stage for a more robust market in 2009. Ironically, a short-lived recession could actually benefit the housing market by accelerating the market correction and setting the stage for stronger sales demand next Spring. A longer and deeper recession however, would create even greater challenges for housing by extending the current cycle and forestalling a recovery. An in-depth presentation on how this will affect local submarkets will be included in our Fall Seminar Series.

Tags: home inventories, home marketplace, housing market, real estate in new jersey, real estate inventories, real estate sales, unsold homes

Buyers - Don’t kill the deal!

You’ve spent the last couple of months looking at different homes, discussing the pros and cons of each property you’ve seen, make an offer that you felt was fair and then have the seller reject it.  You do this a few times when, at last, your offer is accepted.  Your real estate negotiates the final details and the contracts are drawn up.  You sign them and then sweat it as you wait for the seller to sign and return them.  And then….FINALLY…you have it fully signed.  Now you go through the excruciating mortgage application process, get approved, and then at the last minute something turns your home purchase dream into a nightmare.  And what’s worse…it’s your own fault when the deal dies.

The two most common reason why buyers spoil their own deals are:

1.  Buyers Remorse
2.  Doing something to adversely affect their ability to get a mortgage

1.  Buyers remorse.  News media reports of sub-prime mortgages, dropping housing sales prices and rising housing inventories can put the fear of failure in your mind that the deal wasn’t a good decision. The news media’s ”bread and butter” are the doom and gloom stories.   Your real estate professional that worked with you to put this deal together knows more and better about what is going on in the housing market where you bought then then any reporter.  We also are able to explain in consumer terms if any of the factors mentioned in the news media apply to you.  In the majority of cases, the national stories are very vague in applying the details to real-life examples.   We are always there for our clients to help them through the whole process.  We know that Buyer’s Remorse is normal.

2.  Adversely affecting your mortgage qualification.  The rule for this one is real simple to follow:  Don’t do ANYTHING to change YOUR financial situation from what it was when you filled out the mortgage application.  Don’t charge anything on your credit card for the “new house”.  Don’t spend any of the reserve money you need for settlement; if it’s in the bank, leave it there.  Every REALTOR can relate stories how their buyers, who were well on the way to the settlement table, started to celebrate too early about their home purchase that they caused the deal to go bad.  Buyers should always remember 2 important points -  a) the mortgage lender can do a final verification up to 24 hours before the settement date (and pull the mortgage committment IF any adverse items show up), and b) even though all home purchase contraxt in NJ contain a mortgage contingency clause (the buyer must be able to secure funding for the purchase, in the majority of cases through a home mortgage), if the buyer does ANYTHING to cause them Ithe buyer) not to be able to get a mortgage, they will loose any good-faith deposit monies that they put up when they signed the contract.

Buyers can get great deals in today’s market, but they must not be overcome with unnecessary fear, or make financial decisions that could harm their financial standing.  Buyers should stand in place until the day of settlement and all papers have been signed.  Don’t worry about your decision to purchase to the point that you worry yourself out of it and don’t start celebrating too early by spending your reserve or adding to your credit card balance; both of these extremes can ruin your dream.  Remember, neither your real estate professional nor your mortgage lender is going to allow you to get into a situation that is not in your best interest. 

Tags: buyers, contracts, deal breakers, home inventories, Marketplace, Real Estate

Latest Update for the Housing Market in Winslow NJ?

The following is the latest update as to the housing market activity in Winslow Township NJ, including the areas of Sicklerville and Cedarbrook.  That is one of the many things that we do for our customers, analyse the market and letting them know what is happening in their market area.  So, the following is the most current data we have for Winslow Township from August 2007:

For the month of August 2007 -

• Properties Being Marketed - 133
  • Average asking price - $247,067
  • Average Days on the Market - 45 days
• Properties that Settled in August - 55
  • Average sold price - $201,553  (97.8% of average asking price)
  • Average number of bedrooms - 3, average number of baths - 1.7
  • Average Days on the Market - 69 days
  • Numer that sold with Seller Concessions - 23 (where seller gave some amount of net proceeds back to buyer toward buyer’s closing/settlement costs)
  • Number that sold without Seller Concessions - 32
• Properties that Expired (Not Sold and Listing Agreement ended) in August - 12

We can provide you with a complete and accurate market analysis for your home with an analysis of the market area it is located in.   By knowing the value of your home you have a basis to start selling your home.  If you want to know the value of your home and to receive a no-cost home evaluation, please call our Real Estate Hotline toll-free at 1-800-374-8571 x3025 or go to http://www.i-teamhomes.com/Home_Evaluation/page_1746021.html

If you are planning to sell your home and would like to receive a free 12 page report, “Insider’s Secret To Selling Your Home”, directly to your home.   ”Insider’s Secret To Selling Your Home” is a must have report for anyone planning on selling their home. Don’t wait, call now.

• If you have an immediate need to sell your home, call 1-800-374-8571 x3051.
• If you are planning to sell you home in the near future, call 1-800-374-8571 x3052.

When you call the above numbers you will will hear recorded instructions; you will not be directed to a live agent.
For first time home buyers, purchasing your first home can be a very stressful experience.  We can help eliminate that stress and help you through the process.  We work closely with many first time home buyers and understand your concerns.  First Time Home Buyer Programs, 0% and No Money Down Programs, Conventional, FHA, and VA Financing (To Qualified Buyers). Seller Assist with Closing Costs, New Homes Existing Homes in Great Neighborhoods, Fixer Upper Properties. We search all of Camden, Burlington, Gloucester, Salem, Cumberland, and Atlantic Counties. Go to http://www.homes4firsttimebuyers.com/

If you would like a free list of Fannie Mae homes currently for sale , go to: http://www.terryi.com/FNMA/.

Tags: august, camden county, home inventories, Marketplace, Real Estate, seller information, winslow township

Low Interest Rates + Lower Prices = A Great Home

Now could not be a better time to buy a house. Interest rates are at nearly historic lows, home prices down and home inventories at record highs. All of this translates into the best BUYERS MARKET in 50 years. Not since the mid-1950’s has the home buying market been this good for the home buyer.

That being said, many buyers seem to be sitting on the fence waiting to something to happen in the market before they make a move to buy a house. Well, it has already happened. The feds are starting to help home owner who were victims of predatory loans save their homes. The interest rates are soon to drop again, allowing for lower monthly payments to home buyers. And the FHA has streamlined their processes to allow for faster mortgage approvals.

With the resurgence of the old standard for many home buyers: the FHA Mortgage, the home buying market will begin to return to a more normal market. FHA loans are insured loans, so lenders are more willing to lend money to an FHA buyer because the lender will not lose money as they did in the sub-prime market. These new FHA loans will help mortgage companies continue to write mortgages.

FHA requires a lower down-payment; as low as 2.25% and will allow for down payments to be a gift from family or a non-profit organizations and will allow the seller to assist with closing costs.

In this market, many homeowners are helping the buyers with closing costs to make the sale. Pluse, if you have a few dings on your credit, an FHA loan is the way to go.

All the economic indicators are predicting a upsurge in home sales in Spring of ‘08 and a return to normal in early ‘09. When that happens, prices too will return normal, sellers will be less willing to help with closing costs and many buyers who waited on the fence, will be out of the market again.

If you have been on the fence about buying a home, now is the time to start the process. There are many great homes that went unsold during the summer and are waiting for you. Autumn has always been a great time to negotiate for a great home.

If you are getting off the fence, contact us now, so we can get started and you could be in your new home for the holidays.
Linda - 609-417-1084
Terry - 609-417-1086

Tags: Buyer Information, Buyer Information; Finances; mortgages; Real Estate, camden county, cumberland county, gloucester county, home inventories, new jersey, pricing, Real Estate

Housing Market Outlook for Camden County

The numbers are out for the second quarter of 2007. The information below is provided by myself and my wife, Linda, for all of our customers and clients. Our marketing group provides details pertaining to the composite figures below.

Composite market figures for Camden County in the 2nd Qtr 2007:

• Average # Of Offerings/Monthly - 1281.3 (2nd Qtr 2006 = 1211.3)
• Average # Of Sales/Monthly - 535.3 (2nd Qtr 2006 = 646.0)

The average number of homes, per month, being offerred for sale has increased from the same time last year. Additionally, the average number of sales, per month, has decrease from the same time as last year. The impact of this shows in the number of homes that are going unsold, as shown below and represented by the Projected Absorption Rate. The Absorption Rate denotes how long it will take (in months) to deplete the current inventory of homes if no additional listings were added.

• Unsold Inventory - 4307 (2nd Qtr 2006 = 3324)
• Projected Absorption Rate (in months) - 8 (2nd Qtr 2006 = 5)

Essentially, this shows that the number of homes still on the market that have not sold is at 4307 units, which is an increase of almost 1000 units from the same time last year. It would take 8 months, at today’s market condition, to deplete the inventory of these homes in Camden County.

What does this mean to the home owner? That you may need to re-evaluate what you think your home is really worth. For the 2nd Qtr, the number of homes that are selling at $600,000 or more has increased from the same time as last year. Pricing a home correctly is a key factor that we do to insure that the homes we market actually sell, and not just sit on the market. The heyday of of few years ago are gone. The fact that a former neighbor’s house down the block sold for a specific dollar mount three years ago, is not relevant to your home in today’s market.

Now, what do these numbers mean to potential buyers? In a nutshell, sitting back thinking that the prices may be lowered even lower could backfire. The home you saw today may be off the market tomorrow…and not because it sold, but because the owner withdrew it from the market or the listing time on market has run out (expired). You have to rely on your real estate agent to advise you regarding the market price of the home you are looking at. The fact that homes were selling at extemely high prices a few years ago cannot be changed at this time. People are not going to give their homes away or take a loss. Unless they HAVE to sell, they will hold their property until the market catches up with their expectations.

If you’re currently a home owner who is planning on selling your home, call us now before you make your next move.
We can save you time and frustration.

Terry => 609-417-1086
Linda => 609-417=1084

Tags: Buyer Information, camden county, home inventories, Marketplace, pricing, Real Estate, seller information

Housing Market Outlook for Gloucester County

The numbers are out for the second quarter of 2007. The information below is provided by myself and my wife, Linda, for all of our customers and clients. Our marketing group provides details pertaining to the composite figures below.

Composite market figures for Gloucester County in the 2nd Qtr 2007:

• Average # Of Offerings/Monthly - 678.7 (2nd Qtr 2006 = 668.7)
• Average # Of Sales/Monthly - 293.3 (2nd Qtr 2006 = 343.3)

The average number of homes, per month, being offerred for sale has increased from the same time last year. Additionally, the average number of sales, per month, has decrease from the same time as last year. The impact of this shows in the number of homes that are going unsold, as shown below and represented by the Projected Absorption Rate. The Absorption Rate denotes how long it will take (in months) to deplete the current inventory of homes if no additional listings were added.

• Unsold Inventory - 2436 (2nd Qtr 2006 = 1944)
• Projected Absorption Rate (in months) - 8 (2nd Qtr 2006 = 6)

Essentially, this shows that the number of homes still on the market that have not sold is at 2436 units, which is an increase of almost 500 units from the same time last year. It would take 8 months, at today’s market condition, to deplete the inventory of these homes in Gloucester County.

What does this mean to the home owner? That you may need to re-evaluate what you think your home is really worth. For the 2nd Qtr, the number of homes that are selling at $600,000 or more has decreased significantly from the same time as last year. But how many were actually priced below $600,000 or were withdrawn from the market is not known at this time; but the fact the the number of homes remaining unsold is a good indication of which option was chosen. Pricing a home correctly is a key factor that we do to insure that the homes we market actually sell, and not just sit on the market. The heyday of of few years ago are gone. The fact that a former neighbor’s house down the block sold for a specific dollar mount three years ago, is not relevant to your home in today’s market.

Now, what do these numbers mean to potential buyers? In a nutshell, sitting back thinking that the prices may be lowered even lower could backfire. The home you saw today may be off the market tomorrow…and not because it sold, but because the owner withdrew it from the market or the listing time on market has run out (expired). You have to rely on your real estate agent to advise you regarding the market price of the home you are looking at. The fact that homes were selling at extemely high prices a few years ago cannot be changed at this time. People are not going to give their homes away or take a loss. Unless they HAVE to sell, they will hold their property until the market catches up with their expectations.

If you’re currently a home owner who is planning on selling your home, call us now before you make your next move. We can save you time and frustration.

Terry => 609-417-1086
Linda => 609-417-1084

Tags: Buyer Information, gloucester county, home inventories, Marketplace, pricing, Real Estate, seller information

What’s Happening in the Housing Market in Winslow NJ?

My wife, Linda, and I have been marketing quite extensively in Winslow NJ including the areas of Sicklerville and Cedarbrook. We have been watching the market in the area for some tme. Finally, we decided to start to compile some of the data and make our findings available to those who are interested in Winslow Township NJ. That is one of the many things that we do for our customers, analyse the market and letting them know what is happening in their market area. So, the following is the most current data we have for Winslow Township:

For the month of June 2007 -

• Properties Currently Being Marketed - 130
  Average asking price - $258,482
  Average Days on the Market - 29.8 days
• Properties that are Pending Sales (Under Contract, Not Settled) - 32
• Properties that Settled in June - 56
  Average sold price - $200,823 (97.4% of average asking price)
  Average number of bedrooms - 3, average number of baths - 1.5
  Average Days on the Market - 79 days
  Numer that sold with Seller Concessions - 26 (where seller gave some amount of net proceeds back to buyer toward buyer’s closing/settlement costs)
  Number that sold without Seller Concessions - 30
• Properties that Expired (Not Sold and Listing Agreement ended) in June - 17
• Properties that were Withdrawn from the Market by the Seller in June - 35

We can provide you with a complete and accurate market analysis for your home with an analysis of the market area it is located in. By knowing the value of your home you have a basis to start selling your home. If you want to know the value of your home and to receive a no-cost home evaluation, please call our Real Estate Hotline toll-free at 1-800-374-8571 x3025.

If you are planning to sell your home and would like to receive a free 12 page report, “Insider’s Secret To Selling Your Home”, directly to your home. “Insider’s Secret To Selling Your Home” is a must have report for anyone planning on selling their home. Don’t wait, call now.

• If you have an immediate need to sell your home, call 1-800-374-8571 x3051.
• If you are planning to sell you home in the near future, call 1-800-374-8571 x3052.

When you call the above numbers you will will hear recorded instructions; you will not be directed to a live agent.

For first time home buyers, purchasing your first home can be a very stressful experience. We can help eliminate that stress and help you through the process. We work closely with many first time home buyers and understand your concerns. First Time Home Buyer Programs, 0% and No Money Down Programs, Conventional, FHA, and VA Financing (To Qualified Buyers). Seller Assist with Closing Costs, New Homes Existing Homes in Great Neighborhoods, Fixer Upper Properties. We search all of Camden, Burlington, Gloucester, Salem, Cumberland, and Atlantic Counties. Go to http://www.homes4firsttimebuyers.com/

If you would like a free list of Fannie Mae homes currently for sale , go to: http://www.terryi.com/FNMA/.

Tags: camden county, home inventories, Marketplace, Real Estate, seller information, winslow township