Good News Dominates!

I have to say it has been very refreshing as of late to read and hear all the positive factors affecting the Real Estate Market. Sales in Florida are once again on the positive and in some areas even setting records. The only negative that we are hearing is that the prices have eroded significantly. My answer to that is sure they have but what did you expect? The 2005 bubble (and it was a bubble) had to burst sometime and it sure did that. In the Polk County area it is my feeling that the market has bottomed out and we will once again return to some normalcy. When I first started selling Real Estate in the area in 2001 (it was a down market at that time too) we could still expect to see an average appreciation rate of 6%. It is my opinion that we will return to that (or better) in a very short period of time. As a member of Commercial Investment Division (CID) of Lakeland Association of Realtors I am fortunate to be in the loop as to the upcoming job creating projects that are forthcoming to Polk County. There were many projects put on hold as a result of the current economy but it appears that they will once again emerge in 2010. The key now is job creation and Polk County is right on the forefront of this development. Positive News don’t you just love it?

New Home for the Holidays?

As the Holidays fast approach us the furthest thing from most people’s minds is buying a new home. With Thanksgiving just days away our thoughts turn to family & friends. However you might want to think about this. I have been asked a lot lately about home prices and where the market is at and what do I suggest.
My thinking is that we have bottomed out on pricing in the Lakeland Area and that after the 1st of the year we could easily see an increase in prices. With this thought in mind coupled with the extension of not only the 1st time home buyers tax credit ($8000) but the addition of another tax credit for people who are not 1st timers ($6500) is there really a reason to wait? If you made an offer on a property before year end and closed shortly thereafter you could take the tax advantage easily on your 2009 Tax Return. If you are remotely considering a new home you might want to give it some serious thought.

Home Buyer Fedreal Tax Credit

*The extension and expansion of the homebuyer tax credit is the pending business in the Senate. After a long week of negotiation on the credit, an agreement on the scope of both expansion and extension has been reached. The extension is part of a larger bill that has not yet gone to a vote, however. A Senate vote on the underlying bill will occur in the Senate during the week of November 1. The package will then go back to the House. The House is expected to accept the Senate amendments, vote on the package and send it to the President for signature. The underlying bill is an extension of unemployment benefits. Other provisions in the bill include expansion of the net operating loss carryback rules, new requirements for some tax return preparers and noncontroversial provisions that "pay for" these changes. The agreement on the extension and expansion of the credit is as follows:
Credit available for purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.
Credit remains at $8000 for first-time purchasers. No change to definition of first-time purchaser.
New $6500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years.
Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.
New anti-fraud limitations are imposed.
The White House has indicated that President Obama will sign the legislation.
*Source NAR Washington Report

As you can see the legislation still feels that a Tax Credit will be beneficial to the ultimate recovery of the Real Estate Market. The fact that it has now opened up the qualification to other than 1st timers will most likely generate additional sales. Income limits are generous and who couldn't use $6500 ??

Real Estate Recovery,Slow but sure!

All signs are now pointing to a Recovery in the Real Estate Market. Traffic in our Office is greatly increased over the last Month. Multiple Closings and scheduled closings for the Month of October have been above average. I look for November to be strong as well. No doubt the 1st time home buyer tax credit has helped somewhat but I am seeing improvement in all buyer segments. People who are looking to upgrade are taking advantage of the reduced pricing of most homes and Investors are scooping up the remaining bargains.
Now is the time to help bolster the recovery. If you are thinking of selling your current home you need to solicit professional advice as to proper pricing. With all the publicity as of late one would think they will have to give away their property to get it sold. This is not necessarly true. If your property is in above average condition and well maintained you should be able to sell it at above market pricing as compared to distressed properties that are not. By pricing your property slightly above the current day market you will help to bring pricing levels back to some reasonable levels. Let's not forget that a home is worth what someone is willing to pay for it. This will require a bit of patience but will not go unrewarded.
I have been watching the legislation in regards to the $8,000 Federal Tax Credit. All signs are pointing to a possible extension and quite honestly I have mixed feelings on the issue. I compare this to the "cash for clunkers" program that was designed to help the automotive industry. It was a short lived event that did help on the short term but in my opinion did nothing to shore up the industry in the long haul. Agreeably the Real Estate First Time Home Buyers Credit was much better structured to effect the long term. It helped to maintain jobs (temporarly) in the building and supply trades minimizing the impact there, but most importantly it enabled some people that may have not become a home owner realize the "American Dream" to own their own home. Since most mortgages are on a 30 year basis this can help in the long run. I do however have some concerns about some lending practices (USDA) that promote no down payment loans that even roll closing costs back in to the loan amount. My fear is that if someone has little or none of their personal funds invested when things get tough are they more apt to just walk away from the obligation? Time will tell on that note. After all isn't that type loan a small part of what got us in to this in the 1st place? I sure hope my concerns are not warranted! Stay tuned as new developments unfold I will keep you updated...............

Time Is Short!!!

Those of you who are 1st time home buyers looking to take advantage of the $8000 tax credit just barely have enough time to make an offer on a property and get it to close on or before the November 30th deadline. What most people don’t realize that it is taking longer to get funding approved through a lender in this current market. We used to schedule closing dates 30 days out from contract acceptance but now the best case is usually 45 days and that is for loans that are pretty “clean” or problem free.
For the rest of you (not 1st timers) out there however this is still very much a buyer’s market. Almost record low interest rates coupled with abundant inventory at rock bottom pricing, well it doesn’t get much better than this.

What is our home worth? Can I sell it anytime soon? These are 2 questions that many of us may be asking ourselves.
The old adage still applies even in today’s market. “A home is worth what someone is willing to pay for it.” The problem is with the recent decline in market value over the last 2 years the buyers are very cautious not to pay more than what the home is worth. They do not want to over pay like several people did back in 2004/2005. Evaluation is the key. Choosing the “right” professional to assist you is very important. Yes you can sell your home with the proper advise. Our Company will provide to you at no charge or obligation what is known as a CMA (comparative market analysis) This a full color brochure that is laid out with current market data and side by side comparisons based on the very latest data. It is very difficult to go it alone without Realtor assistance in this market. Agreeably there are Web Portals out there that claim to evaluate your home but quite frankly they are flawed. They are normally created by someone who has little or no knowledge of your neighborhood.....beware

The Lobbyists for NAR (National Association of Realtors) are working diligently in Washington trying to negotiate an extension to the current November 30th expiration date for the $8000 tax credit for 1st time home buyers. A first time Home buyer is defined as someone that has not owned a home for the last 3 years. Not only are they trying to extend the date but they are trying to make it available to all buyers not just 1st timers. There is also an attempt to have the amount increased to $15,000 but there is a great resistance to that. My advise is don’t count on the extension and most definitely not the increased amount. Time is running out with credit being tight and closing dates being pushed out you would need to commit to purchase early this month to be insured to close by November 30th. I have been very busy as of late and have been somewhat remis in updating this blog. Not to worry I fully intend to do a better job about keeping my followers advised of any new developments in Real Estate. Expect to see new postings every couple of weeks