"If prices come down by another 10% but interest rates increase by 1 percentage point, that would mean the same monthly payment today versus waiting."--New York Times 7/27/2009
"As the Fed begins to wind down its purchases in the next few months, rates will become less enticing. Analysts expect them to rise to at least 6 percent from the current 5 percent."--New York Times 10/24/2009
In 2009 the percent of total sales in the Winston-Salem, NC market were as follows
$0-100,000---30.0%
$100,000-250,000---54.2%
$250,000-500,000---12.3%
$500,000-750,000---2%
$750,000-1,000,000---.003%
$1,000,000-2,000,000---.002%
Should YOU wait until the market rebounds to sell? According to Housing Wire 9/21/2009 and Moody's analyst:
At least another decade will pass before housing prices return to peak 2006 levels, according to analyst Celia Chen at Moody's Economy.com. She wrote that housing prices will decline for another year bottoming out in the second quarter of 2010 before rebounding.
"The correction will be not only deep but also lengthy. The national price level will not regain its 2006 high until 2020."
Monday, January 25, 2010
Wednesday, January 13, 2010
Free House? Depends on how you view the glass...
Well, there isn't such a thing and home ownership does come with a ton of responsibility, but nothing is more American than owning your own home. With the extension and expansion of the tax credit and the raising of the limit of how much money you can make in order to qualify (125k-singles**225K-couples), there has never been a time that felt more like, well, free!
If you take the notion of a borrower paying $900 in interest and property taxes each month, this would equate to a loan amount of $165,000. At this loan amount, the interest is around $690 and the property taxes, let's say are $210 for a total of $900--both of these items being normal tax write-offs.
So on this $900/month budget or $10,800 per year they are probably close to a 25% tax bracket with federal and state taxes, so they could potential recognize $2700 in income tax benefits PLUS the additional $8000 in credits from the stimulus!
WOW! They just got their home for $100 this year! Of course, back to the expenses...there is of course home owners insurance, which should be a little more than the renter's insurance they SHOULD be carrying and they will have to maintain their new home.
In this situation it is obviously one scenario and as I tell all of my clients, even those who look like they have "cut and dry" situations, that they need to consult their tax advisor. I also have to say that this novel idea was not mine, but passed on to me by a dear mortgage associate.
Bottom line is this...the tax credit was extended and expanded and if you are even remotely considering moving up or out, NOW IS THE TIME! Any financial advisor that you read in the WSJ or see on t.v preach that this is a historic time for buying real estate...imagine the value 20 years from now!
Make the credit work for you and give me a call so that I can help point you in the right direction so that you too can take your piece of the stimulus pie!
If you take the notion of a borrower paying $900 in interest and property taxes each month, this would equate to a loan amount of $165,000. At this loan amount, the interest is around $690 and the property taxes, let's say are $210 for a total of $900--both of these items being normal tax write-offs.
So on this $900/month budget or $10,800 per year they are probably close to a 25% tax bracket with federal and state taxes, so they could potential recognize $2700 in income tax benefits PLUS the additional $8000 in credits from the stimulus!
WOW! They just got their home for $100 this year! Of course, back to the expenses...there is of course home owners insurance, which should be a little more than the renter's insurance they SHOULD be carrying and they will have to maintain their new home.
In this situation it is obviously one scenario and as I tell all of my clients, even those who look like they have "cut and dry" situations, that they need to consult their tax advisor. I also have to say that this novel idea was not mine, but passed on to me by a dear mortgage associate.
Bottom line is this...the tax credit was extended and expanded and if you are even remotely considering moving up or out, NOW IS THE TIME! Any financial advisor that you read in the WSJ or see on t.v preach that this is a historic time for buying real estate...imagine the value 20 years from now!
Make the credit work for you and give me a call so that I can help point you in the right direction so that you too can take your piece of the stimulus pie!
Friday, January 08, 2010
Rules For Living
This has been hanging over our kitchenette at the office and I have enjoyed it, so i wanted to share these sentiments by Kent Keith.
RULES FOR LIVING
1-People are illogical, unreasonable and self-centered. Love them anyway.
2-If you do good, people will accuse you of selfish ulterior motives. Do good anyway.
3-If you are successful, you win false friends and true enemies. Succeed anyway.
4-The good you do today will be forgotten tomorrow. Do good anyway.
5-Honesty and frankness make you vulnerable. Be honest and frank anyway.
6-The biggest men and women with the biggest ideas can be shot down by the smallest men and women with the smallest minds. Think big anyway.
7-People favor underdogs but follow only top dogs. Fight for a few underdogs anyway.
8-What you spend years building may be destroyed overnight. Build anyway.
9-People really need help but may attack you if you do help them. Help people anyway.
10-Give the world the best you have and you'll get kicked in the teeth. Give the world the best you have anyway.
RULES FOR LIVING
1-People are illogical, unreasonable and self-centered. Love them anyway.
2-If you do good, people will accuse you of selfish ulterior motives. Do good anyway.
3-If you are successful, you win false friends and true enemies. Succeed anyway.
4-The good you do today will be forgotten tomorrow. Do good anyway.
5-Honesty and frankness make you vulnerable. Be honest and frank anyway.
6-The biggest men and women with the biggest ideas can be shot down by the smallest men and women with the smallest minds. Think big anyway.
7-People favor underdogs but follow only top dogs. Fight for a few underdogs anyway.
8-What you spend years building may be destroyed overnight. Build anyway.
9-People really need help but may attack you if you do help them. Help people anyway.
10-Give the world the best you have and you'll get kicked in the teeth. Give the world the best you have anyway.
Monday, January 04, 2010
X Marks the Spot...
Well, now the holidays are behind us and 2010 or the Year of X is now upon us. I have been super busy listing and consulting folks who are weeks away from listing, so there will be plenty to choose from if you are a first-timer or move-up buyer looking to take advantage of the extended and expanded tax credit before April 30, 2010.
The numbers show the "hot spots" in the market and I have some stats from November 09 I would like to share that demonstrate just that.
These stats are residential stats for Forsyth County-November 2009
Homes closed between 100,001 and 150,000---112 sold
Homes closed between 150,001 and 200,000---41 sold
Homes closed between 200,001 and 250,000---17 sold
Homes closed between 250,001 and 300,000---12 sold
TOTAL of home sold that were over 300,000---29 sold!
Hot market is definitely between 100-200K and those over the 300K mark are going to have to price aggressively, still be the shiniest apple in the bunch and be open to buyer incentives at least for the next quarter or three.
December and January's numbers will be very interesting since it is my opinion that these figures above from November 09 are artificially inflated due to the perception that the tax credit was ending on Nov 30...we'll see how we adjust to the new deadlines and where the market ends up after April 2010...As far as bottoming of the market, it is my hope that X will truly mark the spot as the bottom and we can go onward and upward from there.
Wishing you a healthy and prosperous New Year!
The numbers show the "hot spots" in the market and I have some stats from November 09 I would like to share that demonstrate just that.
These stats are residential stats for Forsyth County-November 2009
Homes closed between 100,001 and 150,000---112 sold
Homes closed between 150,001 and 200,000---41 sold
Homes closed between 200,001 and 250,000---17 sold
Homes closed between 250,001 and 300,000---12 sold
TOTAL of home sold that were over 300,000---29 sold!
Hot market is definitely between 100-200K and those over the 300K mark are going to have to price aggressively, still be the shiniest apple in the bunch and be open to buyer incentives at least for the next quarter or three.
December and January's numbers will be very interesting since it is my opinion that these figures above from November 09 are artificially inflated due to the perception that the tax credit was ending on Nov 30...we'll see how we adjust to the new deadlines and where the market ends up after April 2010...As far as bottoming of the market, it is my hope that X will truly mark the spot as the bottom and we can go onward and upward from there.
Wishing you a healthy and prosperous New Year!
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