Real estate in Texas
The term affordable housing can mean many things. In Austin, for example, it could mean any single-family home that sells for under $200,000. In other areas of Texas, affordable housing might mean a $75,000 home.
Statewide, Texas REALTORS® help countless fellow Texans experience the benefits of homeownership, regardless of where you live or how much money you make. In addition, many Texas REALTORS® participate in specialized training to better equip themselves for helping first-time homebuyers.
Options abound for Texans who want to own their own home, but who might be strapped for cash or have yet to establish their credit. One is the Texas First Time Home Buyer Program, sponsored by the Texas Department of Housing & Community Affairs (TDHCA). It offers below-market mortgage interest rates for first-time buyers.
The Texas Veterans Land Board has a variety of attractive home-purchase programs for Texas military veterans and their spouses.
Source:TexasRealEstate.com
"Star Treatment for Your Real Estate Needs" It is important for me to understand my client’s needs and wants so I can exceed their expectations. I’m not happy unless they are. It is essential to have a productive positive working relationship and smooth transactions.
Showing posts with label 1st time homebuyer. Show all posts
Showing posts with label 1st time homebuyer. Show all posts
Thursday, June 3, 2010
Monday, February 22, 2010
Be Ready to Buy
If you find what you’re looking for in a home, you should be prepared to make an offer quickly. Even if homes are staying on the market a little longer in your neck of the woods, it only takes one other interested buyer to snatch the home or create a bidding war.
You can help the offer process by being ready. In addition to being pre-approved for a loan before you begin looking at properties, it’s wise to be honest with yourself. You know exactly what you want in a home and how much you can actually afford. Make sure to take into account utilities and other monthly expenses associated with homeownership.
Be advised, though, that a quick offer doesn’t necessarily mean a quick end to the transaction. There are myriad potential postponements in a real estate transaction. There may be contingencies, repairs, lender delays, or any number of other issues.
Purchasing real estate can be a tricky and detailed business, but a Texas REALTOR® can help prepare you for the process. He knows the value of properties in your local market and how to navigate the entire process to a smooth conclusion. He’ll use this information to help you submit an excellent offer.
When you have the information you need to make a good decision, your chances of making a successful offer on a property improve. Use a REALTOR® to increase your advantage.
Source:Texas Association of Realtors®
www.amsstarrealty.com
You can help the offer process by being ready. In addition to being pre-approved for a loan before you begin looking at properties, it’s wise to be honest with yourself. You know exactly what you want in a home and how much you can actually afford. Make sure to take into account utilities and other monthly expenses associated with homeownership.
Be advised, though, that a quick offer doesn’t necessarily mean a quick end to the transaction. There are myriad potential postponements in a real estate transaction. There may be contingencies, repairs, lender delays, or any number of other issues.
Purchasing real estate can be a tricky and detailed business, but a Texas REALTOR® can help prepare you for the process. He knows the value of properties in your local market and how to navigate the entire process to a smooth conclusion. He’ll use this information to help you submit an excellent offer.
When you have the information you need to make a good decision, your chances of making a successful offer on a property improve. Use a REALTOR® to increase your advantage.
Source:Texas Association of Realtors®
www.amsstarrealty.com
Thursday, February 18, 2010
Fast fixes for foreclosed homes
(ARA) - The high volume of foreclosed homes on the market is allowing some astute buyers to turn eyesores into eye-catching properties with only minimal investment. While not every property can be fixed up affordably, there are some common projects that dramatically improve a foreclosed home's appeal and value.
"Many people are finding huge opportunities in fixing up foreclosures," says Tom Sullivan, founder of Lumber Liquidators, the nation's largest specialty retailer of hardwood flooring. "Most of these houses can be completely transformed with just a few improvements. Often, the fixes are easy enough to be do-it-yourself projects."
Here are some popular cost-effective options for breathing new life into a home in need.
Add new countertops.
The kitchen is one of the most important rooms in any home, since it is a space where people spend a lot of time - from cooking dinner to entertaining friends. One of the most dramatic changes that can be made to a kitchen is adding new countertops. It alters the appearance of the space by changing the color scheme, depth and texture of the whole room.
Countertops range in price depending on room size, type of material and mode of installation. In an average kitchen, a new laminate countertop starts at around $1,000, with granite or quartz ranging from $3,000 to $6,000. Butcher-block countertops are another attractive, yet cost-effective option. Williamsburg Butcher Block Company offers options in both maple and American cherry starting around $310.
Replace the bathtub.
Foreclosed houses frequently come with water stains left by standing water in sinks, toilets and bathtubs. Updating a bathroom by installing a new bathtub not only removes the problem, but, because the tub is a core item, it creates a more pleasant feeling in the room. Bathtubs are available in many different styles and sizes, so there is likely to be one that suits any taste, from traditional to contemporary. Bathtubs start at around $300, depending on the size and style.
Trade carpeting for new wood flooring.
Foreclosed houses are frequently abandoned with soiled carpet that continues to gather buildup over time. Mold is also common in homes that have been left bare for extended periods. To get rid of hidden odors, allergens, irritants and mold, replace carpet with wood, particularly in high-traffic areas such as living rooms and great rooms.
In addition to reviving these common areas, swapping carpet for wood adds style and creates a more spacious feel. The choice of wood can also make a big difference. Light wood colors can make a room appear larger, medium-toned woods can make a room appear more traditional and dark flooring can make a room appear warmer.
"The introduction of so many new species, colors and types of wood flooring in recent years gives homeowners a lot of options when renovating a room at different price points," says Sullivan.
Laminate flooring can deliver the appearance of solid hardwoods, but costs less than $1 per square foot at places like Lumber Liquidators. This allows budget do-it-yourselfers the ability to transform a 400-square-foot area for as little as $750.
In addition to making a foreclosed home look new again, completing these easy and affordable updates can go a long way in restoring the value of the property when it comes time to sell.
Courtesy of ARAcontent
Monday, October 12, 2009
A Historic Time to Buy
Young people just starting to invest and buying their first homes are potentially the winners in this recession.
First-time homebuyers, most between the ages of 25 and 45, accounted for about 45 percent of home sales from January through July 2009, according to the National Association of REALTORS®
"This is a historic time," says George Jaramillo, a 35-year-old business analyst in Atlanta, who recently bought three homes, two of them foreclosures. "It's a great opportunity to make some great gains in the future."
A study by investment company T. Rowe Price points out that investing when prices are low can result in amazing gains. For instance, between 1970 and 1990, the annualized rate of return for the S&P 500 was 11.5 percent.
"We need to be shouting from the rooftops that this is not the time to get out of the market if you're young," says Christine Fahlund, a senior financial planner with T. Rowe Price. "This is the time to be in the market."
Source: The Associated Press, Chip Cutter
First-time homebuyers, most between the ages of 25 and 45, accounted for about 45 percent of home sales from January through July 2009, according to the National Association of REALTORS®
"This is a historic time," says George Jaramillo, a 35-year-old business analyst in Atlanta, who recently bought three homes, two of them foreclosures. "It's a great opportunity to make some great gains in the future."
A study by investment company T. Rowe Price points out that investing when prices are low can result in amazing gains. For instance, between 1970 and 1990, the annualized rate of return for the S&P 500 was 11.5 percent.
"We need to be shouting from the rooftops that this is not the time to get out of the market if you're young," says Christine Fahlund, a senior financial planner with T. Rowe Price. "This is the time to be in the market."
Source: The Associated Press, Chip Cutter
Tuesday, September 29, 2009
Down Payment Assistance Programs for 1st Time Homebuyers buying in Frisco
The Housing Trust Fund offers two Down Payment Assistance Programs designed to help low and moderate income families who work in the city limits of Frisco also purchase a home in the City of Frisco.
Program #1: The Frisco Down Payment Assistance Program
(targeted to families working in the city limits of Frisco)
Families with at least one adult working full-time in Frisco for at least 6 months can be assisted in purchasing a home in Frisco.
The program provides forgivable loans of up to $10,000 to qualified homebuyers for the purpose of down payment and closing cost assistance. The homebuyers is required to pay 50% of the closing costs.
Eligible households must be first time homebuyers (with some exceptions)
Income and purchase price limits vary by family size. Household income for a family of four (4) cannot exceed $53,200 in order to be eligible for the program (see the DPA Brochure for more details)
The Down Payment Assistance Program can be used with other First Time Homebuyer Programs to help make homeownership possible for almost everyone.
Program #2: The Frisco Targeted Down Payment Assistance Program
(targeted to City of Frisco and Frisco ISD employees)
Families with at least one adult working full-time FOR the City of Frisco or Frisco ISD for at least 6 months can be assisted in purchasing a home in Frisco.
The program provides forgivable loans of up to $5,000 to qualified homebuyers for the purpose of down payment and closing cost assistance.
Eligible households must be first time homebuyers (with some exceptions).
Income and purchase price limits vary by family size. Household income for a family of 1 or 2 cannot exceed $66,500 and 3 or more cannot exceed $76,475 in order to be eligible for the program (see the TDPA brochure for more details).
The Down Payment Assistance Program can be used with other First Time Homebuyer Programs to help make homeownership possible for almost everyone.
Source:city of Frisco Texas
Program #1: The Frisco Down Payment Assistance Program
(targeted to families working in the city limits of Frisco)
Families with at least one adult working full-time in Frisco for at least 6 months can be assisted in purchasing a home in Frisco.
The program provides forgivable loans of up to $10,000 to qualified homebuyers for the purpose of down payment and closing cost assistance. The homebuyers is required to pay 50% of the closing costs.
Eligible households must be first time homebuyers (with some exceptions)
Income and purchase price limits vary by family size. Household income for a family of four (4) cannot exceed $53,200 in order to be eligible for the program (see the DPA Brochure for more details)
The Down Payment Assistance Program can be used with other First Time Homebuyer Programs to help make homeownership possible for almost everyone.
Program #2: The Frisco Targeted Down Payment Assistance Program
(targeted to City of Frisco and Frisco ISD employees)
Families with at least one adult working full-time FOR the City of Frisco or Frisco ISD for at least 6 months can be assisted in purchasing a home in Frisco.
The program provides forgivable loans of up to $5,000 to qualified homebuyers for the purpose of down payment and closing cost assistance.
Eligible households must be first time homebuyers (with some exceptions).
Income and purchase price limits vary by family size. Household income for a family of 1 or 2 cannot exceed $66,500 and 3 or more cannot exceed $76,475 in order to be eligible for the program (see the TDPA brochure for more details).
The Down Payment Assistance Program can be used with other First Time Homebuyer Programs to help make homeownership possible for almost everyone.
Source:city of Frisco Texas
Sunday, September 27, 2009
1st Time Homeowners: Cleaning House
First time homeowners: Clean house naturally with inexpensive improvements
(ARA) – You narrowed the long house-hunting search down to your favorite option, made an offer the homeowners couldn’t refuse, and are well-positioned to take advantage of that $8,000 first-time home buyer federal housing tax credit. All that’s left to do is move in.
But the excitement of making a home your own can dim the first time you open a cabinet door or look in the oven to realize not everyone shares the same commitment to good housekeeping.
Whether cleaning your new home before moving in, or looking for a way to juggle the increase in housework that comes when you move from an apartment to a larger condo or single-family home, tidying up your environment doesn’t have to be a tough or expensive task. Moving into a new place is a great time to start fresh, breaking out of old routines and trying different things, including living a more natural lifestyle at home.
“Moving into a new home can be exciting and overwhelming at the same time, but a few simple steps can ease the transition,” says Jen Singer, family lifestyle expert. “Think of it as a clean slate for your family, regardless of whether someone previously lived there.”
Start off fresh
It’s the dirty little secret of home buying – sometimes the previous owners leave a mess behind when they move out. “Even if they don’t leave a mess, you’ll still want to give your new home a good cleaning so it truly feels like you’re making a fresh start,” Singer says.
Before you settle into your new home, dust, mop and scrub everything from the ceiling to the floor. It’ll save you from feeling like you’re living in someone else’s dirt, and give you a brand new start in your new home.
Divvy the chores
You may love the fact that your new home affords you more living space, but with more space comes more chores. Start out by fairly distributing chores among family members.
“It might be fun to play with your new washing machine now, but doing all the laundry all the time will get old fast,” Singer says. “So task your spouse with grabbing a natural laundry stain remover that cleans powerfully to tackle tough stains, such as Nature’s Source Laundry Stain Remover by Shout. The line also has other natural cleaners I like to use for other chores around the home by trusted brands including Windex and Scrubbing Bubbles. They contain 99 percent or more natural ingredients; and they are affordable and available in many grocery and mass merchandise stores.”
Conquer clutter ... before it starts
It’s an unwritten law of physics – when you move into a bigger place, your furniture, clothes and other things multiply to take up all the new space. More space and more stuff can add up to clutter and ultimately, more waste.
“Resist the urge to fill your closets and counters with new things,” Singer warns. “Instead, look at new ways of using pieces you already own.”
Another clutter-cutting tactic – if you just moved boxes that you packed two moves ago and haven’t unpacked since, get rid of them. “You may not even want to open them before donating or recycling them,” Singer suggests. “After all, whatever is in them is something you’ve done just fine without for quite a while.”
Personalize with paint
Even if the sellers of your new home put a fresh coat of paint throughout the house before they left, repainting is an easy, inexpensive way to personalize your environment. “Don’t be afraid to pick colors that are a shade darker than you’d normally go for. You’ll be surprised to find how it can show off your personal style,” Singer says.
In keeping with your commitment to live naturally, look for low VOC paints, especially if you’re repainting in the winter when ventilation will be limited.
To learn more about natural living tips, visit www.NaturesSourceCleaners.com.
Courtesy of ARAcontent
(ARA) – You narrowed the long house-hunting search down to your favorite option, made an offer the homeowners couldn’t refuse, and are well-positioned to take advantage of that $8,000 first-time home buyer federal housing tax credit. All that’s left to do is move in.
But the excitement of making a home your own can dim the first time you open a cabinet door or look in the oven to realize not everyone shares the same commitment to good housekeeping.
Whether cleaning your new home before moving in, or looking for a way to juggle the increase in housework that comes when you move from an apartment to a larger condo or single-family home, tidying up your environment doesn’t have to be a tough or expensive task. Moving into a new place is a great time to start fresh, breaking out of old routines and trying different things, including living a more natural lifestyle at home.
“Moving into a new home can be exciting and overwhelming at the same time, but a few simple steps can ease the transition,” says Jen Singer, family lifestyle expert. “Think of it as a clean slate for your family, regardless of whether someone previously lived there.”
Start off fresh
It’s the dirty little secret of home buying – sometimes the previous owners leave a mess behind when they move out. “Even if they don’t leave a mess, you’ll still want to give your new home a good cleaning so it truly feels like you’re making a fresh start,” Singer says.
Before you settle into your new home, dust, mop and scrub everything from the ceiling to the floor. It’ll save you from feeling like you’re living in someone else’s dirt, and give you a brand new start in your new home.
Divvy the chores
You may love the fact that your new home affords you more living space, but with more space comes more chores. Start out by fairly distributing chores among family members.
“It might be fun to play with your new washing machine now, but doing all the laundry all the time will get old fast,” Singer says. “So task your spouse with grabbing a natural laundry stain remover that cleans powerfully to tackle tough stains, such as Nature’s Source Laundry Stain Remover by Shout. The line also has other natural cleaners I like to use for other chores around the home by trusted brands including Windex and Scrubbing Bubbles. They contain 99 percent or more natural ingredients; and they are affordable and available in many grocery and mass merchandise stores.”
Conquer clutter ... before it starts
It’s an unwritten law of physics – when you move into a bigger place, your furniture, clothes and other things multiply to take up all the new space. More space and more stuff can add up to clutter and ultimately, more waste.
“Resist the urge to fill your closets and counters with new things,” Singer warns. “Instead, look at new ways of using pieces you already own.”
Another clutter-cutting tactic – if you just moved boxes that you packed two moves ago and haven’t unpacked since, get rid of them. “You may not even want to open them before donating or recycling them,” Singer suggests. “After all, whatever is in them is something you’ve done just fine without for quite a while.”
Personalize with paint
Even if the sellers of your new home put a fresh coat of paint throughout the house before they left, repainting is an easy, inexpensive way to personalize your environment. “Don’t be afraid to pick colors that are a shade darker than you’d normally go for. You’ll be surprised to find how it can show off your personal style,” Singer says.
In keeping with your commitment to live naturally, look for low VOC paints, especially if you’re repainting in the winter when ventilation will be limited.
To learn more about natural living tips, visit www.NaturesSourceCleaners.com.
Courtesy of ARAcontent
Wednesday, September 2, 2009
Good Year for FHA loans
FHA Is Having Busiest Year Ever
About 25 percent of all new mortgages are backed by the Federal Housing Administration in what will probably be the busiest year yet for the federal agency.
Applications for FHA mortgages rose 50 percent from last October through mid-August 2009 and approvals for purchases, refinancings, and reverse mortgages rose 70 percent to 1.67 million.
FHA loans "are one of the most important sources in this market," says Mark Zandi of Moody's Economy.com. "Without FHA, the housing slide would be much more severe. We wouldn't be talking about a recovery now. We'd still be talking about a crash."
Some analysts are concerned about the risk the FHA has taken on, but others point out that borrowers with FHA-insured loans now have an average credit score of 690, compared to 630 two years ago. Borrowers with a credit score below 500 must come up with a 10 percent down payment.
Source: USA Today, Stephanie Armour (09/02/2009)
About 25 percent of all new mortgages are backed by the Federal Housing Administration in what will probably be the busiest year yet for the federal agency.
Applications for FHA mortgages rose 50 percent from last October through mid-August 2009 and approvals for purchases, refinancings, and reverse mortgages rose 70 percent to 1.67 million.
FHA loans "are one of the most important sources in this market," says Mark Zandi of Moody's Economy.com. "Without FHA, the housing slide would be much more severe. We wouldn't be talking about a recovery now. We'd still be talking about a crash."
Some analysts are concerned about the risk the FHA has taken on, but others point out that borrowers with FHA-insured loans now have an average credit score of 690, compared to 630 two years ago. Borrowers with a credit score below 500 must come up with a 10 percent down payment.
Source: USA Today, Stephanie Armour (09/02/2009)
Wednesday, August 26, 2009
July new US home sales up 9.6 percent
WASHINGTON (AP) -- New U.S. home sales surged 9.6 percent in July, rising for the fourth straight month and beating expectations as the housing market marches steadily back from its historic downturn.
The Commerce Department said Wednesday that sales rose to a seasonally adjusted annual rate of 433,000 from an upwardly revised June rate of 395,000. Sales are now up more than 30 percent from the bottom in January, but are still off nearly percent from the frenzied peak four years ago.
The median sales price of $210,100, however, was off 11.5 percent from year-ago levels and down slightly from $221,400 in June.
Last month's sales pace was the strongest since September and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 390,000 units.
In a kind of Cash for Clunkers effect, homebuyers are rushing to take advantage of a federal tax credit that covers 10 percent of the home price, or up to $8,000, for first-time owners. Home sales must be completed by the end of November for buyers to qualify.
Builders and real estate agents are pressing Congress for that credit to be extended. If it isn't, sales could reverse their upward trend.
As sales rise, that's likely to make builders more confident about getting going on new projects, and that's likely to lead to more jobs ins the construction industry. "These are crucial elements of a sustainable recovery," David Resler, chief economist at Nomura Securities, wrote in a research note.
Each new home built creates, on average, the equivalent of three jobs lasting one year and generates about $90,000 in taxes paid to local and federal authorities, according to the National Association of Home Builders.
There were 271,000 new homes for sale at the end of July, down more than 3 percent from May. At the current sales pace, that represents 7.5 months of supply - the lowest since April 2007. The decline means builders have scaled back construction to the point where supply and demand are coming into balance.
Courtesy of:
By ALAN ZIBEL
AP Real Estate Writer Aug 26, 11:19 AM EDT
© 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy.
The Commerce Department said Wednesday that sales rose to a seasonally adjusted annual rate of 433,000 from an upwardly revised June rate of 395,000. Sales are now up more than 30 percent from the bottom in January, but are still off nearly percent from the frenzied peak four years ago.
The median sales price of $210,100, however, was off 11.5 percent from year-ago levels and down slightly from $221,400 in June.
Last month's sales pace was the strongest since September and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 390,000 units.
In a kind of Cash for Clunkers effect, homebuyers are rushing to take advantage of a federal tax credit that covers 10 percent of the home price, or up to $8,000, for first-time owners. Home sales must be completed by the end of November for buyers to qualify.
Builders and real estate agents are pressing Congress for that credit to be extended. If it isn't, sales could reverse their upward trend.
As sales rise, that's likely to make builders more confident about getting going on new projects, and that's likely to lead to more jobs ins the construction industry. "These are crucial elements of a sustainable recovery," David Resler, chief economist at Nomura Securities, wrote in a research note.
Each new home built creates, on average, the equivalent of three jobs lasting one year and generates about $90,000 in taxes paid to local and federal authorities, according to the National Association of Home Builders.
There were 271,000 new homes for sale at the end of July, down more than 3 percent from May. At the current sales pace, that represents 7.5 months of supply - the lowest since April 2007. The decline means builders have scaled back construction to the point where supply and demand are coming into balance.
Courtesy of:
By ALAN ZIBEL
AP Real Estate Writer Aug 26, 11:19 AM EDT
© 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy.
Thursday, August 20, 2009
Mortgage Applications Rise on Falling Rates
Mortgage applications bounced back last week with the Mortgage Bankers Association market index rising 5.6 percent on a seasonally adjusted basis compared to the previous week.
On an unadjusted basis, the index increased 4.8 percent and was up 25 percent compared with the same week a year ago.
The recent seesaw of mortgage rates has affected refinances more than purchases. The refinance index rose 6.9 percent last week after falling 7.2 percent the previous week, reflecting declining mortgage rates. The purchase index, which has trended upward gradually, rose 3.9 percent.
Here are the average performances of mortgage rates this week:
30-year fixed-rate mortgages decreased to 5.15 percent from 5.38 percent.
15-year fixed-rate mortgages decreased to 4.52 percent from 4.71 percent.
1-year ARMs decreased to 6.66 percent from 6.71 percent.
Source: Mortgage Bankers Association (08/19/2009)
On an unadjusted basis, the index increased 4.8 percent and was up 25 percent compared with the same week a year ago.
The recent seesaw of mortgage rates has affected refinances more than purchases. The refinance index rose 6.9 percent last week after falling 7.2 percent the previous week, reflecting declining mortgage rates. The purchase index, which has trended upward gradually, rose 3.9 percent.
Here are the average performances of mortgage rates this week:
30-year fixed-rate mortgages decreased to 5.15 percent from 5.38 percent.
15-year fixed-rate mortgages decreased to 4.52 percent from 4.71 percent.
1-year ARMs decreased to 6.66 percent from 6.71 percent.
Source: Mortgage Bankers Association (08/19/2009)
Saturday, August 15, 2009
$8000 1st Time Homebuyer Tax Credit Deadline is Near
The deadline is approcahing and will be here before you know it. 1st Time Home Buyers have just a little over 100 days before the $8000 tax credit is gone.
The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.
Don't miss out on this government housewarming gift.
Thursday, July 23, 2009
Housing Market on the Rise
Jul 23, 12:06 PM EDT – Dallas Morning News
June existing home sales rise by 3.6 percent
By ALAN ZIBEL
AP Real Estate Writer
WASHINGTON (AP) -- The U.S. housing market has started to recover from the most far-reaching crisis since the Great Depression, data released Thursday shows.
Sales of previously occupied homes rose for the third month in a row in June, the National Association of Realtors reported. That hasn't happened since early 2004, during the boom.
"The turnaround in the housing market appears finally to be here and indeed may be gaining some speed," wrote Joel Naroff, president of Naroff Economic Advisors Inc.
Stocks jumped on the news, with the Dow Jones industrial average rising above 9,000 for the first time since early January.
Home sales rose 3.6 percent to a seasonally adjusted annual rate of 4.89 million last month, from a downwardly revised pace of 4.72 million in May. Sales were up in all four regions of the country.
It was the highest level of sales since last October and beat economists' expectations. Sales had been expected to rise to an annual pace of 4.84 million units, according to Thomson Reuters.
In another encouraging sign, the share of foreclosures on the market is shrinking. About one out of three homes sold in June was foreclosure-related, down from nearly half earlier this year.
And the glut of homes up for sale dwindled to 3.8 million. That's a 9.4-month supply at the current sales pace and another important sign of a recovery. When the market balances at a 7-month supply prices should begin to stabilize, the Realtors's group said.
That probably won't happen until next year because of a backlog of foreclosures that have yet to come on to the market. The median sales price was $181,800 in June, down 15 percent from year-ago levels but up slightly from $174,700 in May.
Nevertheless, prices have risen for three straight months in about half of the 55 major metropolitan areas tracked by the Associated Press-Re/Max Housing Report, also released Thursday.
Source: © 2009 The Associated Press. All rights reserved.
June existing home sales rise by 3.6 percent
By ALAN ZIBEL
AP Real Estate Writer
WASHINGTON (AP) -- The U.S. housing market has started to recover from the most far-reaching crisis since the Great Depression, data released Thursday shows.
Sales of previously occupied homes rose for the third month in a row in June, the National Association of Realtors reported. That hasn't happened since early 2004, during the boom.
"The turnaround in the housing market appears finally to be here and indeed may be gaining some speed," wrote Joel Naroff, president of Naroff Economic Advisors Inc.
Stocks jumped on the news, with the Dow Jones industrial average rising above 9,000 for the first time since early January.
Home sales rose 3.6 percent to a seasonally adjusted annual rate of 4.89 million last month, from a downwardly revised pace of 4.72 million in May. Sales were up in all four regions of the country.
It was the highest level of sales since last October and beat economists' expectations. Sales had been expected to rise to an annual pace of 4.84 million units, according to Thomson Reuters.
In another encouraging sign, the share of foreclosures on the market is shrinking. About one out of three homes sold in June was foreclosure-related, down from nearly half earlier this year.
And the glut of homes up for sale dwindled to 3.8 million. That's a 9.4-month supply at the current sales pace and another important sign of a recovery. When the market balances at a 7-month supply prices should begin to stabilize, the Realtors's group said.
That probably won't happen until next year because of a backlog of foreclosures that have yet to come on to the market. The median sales price was $181,800 in June, down 15 percent from year-ago levels but up slightly from $174,700 in May.
Nevertheless, prices have risen for three straight months in about half of the 55 major metropolitan areas tracked by the Associated Press-Re/Max Housing Report, also released Thursday.
Source: © 2009 The Associated Press. All rights reserved.
Wednesday, July 22, 2009
10 Ways to Prepare for Homeownership
1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.
2. Develop your home wish list. Then, prioritize the features on your list.
3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.
4. Start saving.Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 3.5% to 20% of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.
5. Get your credit in order.Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.
6. Determine your mortgage qualifications.How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.
7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.
8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.
9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.
10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process.
Source Realtor.org
2. Develop your home wish list. Then, prioritize the features on your list.
3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.
4. Start saving.Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 3.5% to 20% of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.
5. Get your credit in order.Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.
6. Determine your mortgage qualifications.How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.
7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.
8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.
9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.
10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process.
Source Realtor.org
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