The Real Estate Roundtable, which represents commercial property owners, spent $670,000 in the fourth quarter of last year lobbying on federal assistance for the troubled industry, according to a recent disclosure form. View full post on Yahoo! News Search Results for real estate
The Zacks Mutual Fund Rank reveals its top 5 Real Estate funds: DWS RREEF Real Estate Securities A, JPMorgan US Real Estate A, Forward Select Income A, Cohen & Steers Realty Shares and Natixis AEW Real Estate A View full post on Yahoo! News Search Results for real estate
RISMEDIA, March 30, 2010—Home sales decreased 11.7% in February 2010 in California compared with the same period a year ago, while the median price of an existing home rose 14.1%, the California Association of Realtors® (C.A.R.)
recently reported.
“The federal tax credit for home buyers, low mortgage rates, and affordability at record levels have contributed to an unprecedented opportunity for many first-timers in the market for a home of their own,” said C.A.R. President Steve Goddard. “Although sales have declined from the unusually strong levels we experienced a year ago, they’ve remained above the 500,000 unit threshold for 18 consecutive months, while home prices continue to firm in the regions of the state most attractive to buyers taking advantage of today’s favorable market conditions.”
Closed escrow sales of existing, single-family detached homes in California totaled 528,930 in February at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local Realtor associations statewide. Statewide home resale activity decreased 11.7% from the revised 598,770 sales pace recorded in February 2009. Sales in February 2010 decreased 2.2% compared with the previous month.
The statewide sales figure represents what the total number of homes sold during 2010 would be if sales maintained the February pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales. The median price of an existing, single-family detached home in California during February 2010 was $279,840, a 14.1% increase from the revised $245,230 median for February 2009, C.A.R. reported. The February 2010 median price decreased 2.4% compared with January’s $286,600 median price.
“Sales of distressed properties to investors and first-time buyers continued to drive the market in February, although at a lesser rate than a year ago,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Supply continues to lag demand at the more affordable end of the market, with a 3.9 month supply of homes for sale priced below $300,000, compared with the long-run average of more than seven months. This contrasts sharply with the nearly 15-month supply of homes for sale priced at $1 million or more at the upper end of the market.”
Highlights of C.A.R.’s resale housing figures for February 2010:
-C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in February 2010 was 6.3 months, compared with 7.1 months (revised) for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
-Thirty-year fixed-mortgage interest rates averaged 4.99% during February 2010, compared with 5.13% in February 2009, according to Freddie Mac. Adjustable-mortgage interest rates averaged 4.23% in February 2010, compared with 4.87% in February 2009.
-The median number of days it took to sell a single-family home was 41.2 days in February 2010, compared with 51.4 days (revised) for the same period a year ago.
-Statewide, the 10 cities with the highest median home prices in California during February 2010 were: Newport Beach, $1,000,000; Santa Monica, $781,250; Danville, $755,000; Santa Barbara, $725,000; San Clemente, $685,000; Pleasanton, $650,000; Mountain View, $637,500; San Francisco, $637,441; Redondo Beach, $615,000; and Sunnyvale, $609,500.
-Statewide, the cities with the greatest median home price increases in February 2010 compared with the same period a year ago were: Banning, 44.4%; Richmond, 38.9%; La Habra, 35.9%; Rancho Mirage, 33%; Vista, 29.3%; National City, 29%; Oakland, 29%; El Cajon, 28.1%; San Pablo, 26.3%; Fremont, 26%; and Pittsburg, 25.8%.
For more information, visit www.car.org.
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LAND: East Mink has acquired 1.08 acres of land, improved with 14,000 square feet of buildings, at West 17th and Ashland in the Houston Heights from Regan-Riley Real Estate. Greg Lewis of Lewis Property Co. represented the seller. View full post on Yahoo! News Search Results for real estate
RISMEDIA, March 29, 2010—As the April 15 deadline to file 2009 federal tax returns approaches, the National Association of Home Builders (NAHB) is providing answers to some of the questions home buyers are most frequently asking about the home buyer tax credit.
“NAHB’s website that provides information about the home buyer tax credit, www.FederalHousingTaxCredit.com, has received more than 8 million visits,” said NAHB Chairman Bob Jones, a builder and developer in Bloomfield Hills, Mich.
“We are doing everything we can to make sure home buyers are informed about this outstanding opportunity to benefit from buying a home before it expires April 30.”
Some of the more commonly-asked questions, and the answers, include:
1. How does a home buyer claim the tax credit?
The credit is claimed when the home buyer files or amends their federal income taxes. For qualifying homes purchased in 2009 or 2010, the taxpayer must complete IRS Form 5405 and attach a copy of the settlement statement. In most cases, the settlement statement is a properly executed Form HUD-1.
In circumstances where a HUD-1 is not provided, such as purchasing a mobile home or a newly constructed home, the IRS will accept an executed retail sales contract (mobile homes) or a copy of the certificate of occupancy (new homes).
2. Does the home buyer have to sell their current home in order to qualify for the $6,500 repeat home buyer tax credit?
A home buyer does not need to sell their current home in order to be eligible for the repeat buyer credit. They can continue to own both homes, and rent or use their former home for something else, as long as it no longer serves as their principal residence. The taxpayer is required to use the new home as their principal residence, and live in it for at least 36 months, or they will have to repay the credit.
3. Do married couples both have to meet the eligibility requirements in order to claim the credit, even if they file taxes separately?
Both spouses must fully meet all the eligibility requirements for either the $8,000 first-time home buyer tax credit or the $6,500 repeat buyer tax credit, regardless of if they file joint or separate tax returns. However, if an unmarried couple purchases a home and only one person qualifies, the eligible person may claim the full credit.
4. Do all home purchases need to be completed by April 30, 2010, in order to be eligible for the credit?
There are two exceptions to the April 30 deadline. If the buyer enters into a binding contract by the deadline, they have until June 30, 2010, to complete the purchase. The deadline has been extended a year, to April 30, 2011, for members of the uniformed services, Foreign Service or employees of the intelligence community who have been on qualified extended duty outside the United States for at least 90 days between January 1, 2009, and April 30, 2010.
For more information, visit www.nahb.org.
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March 26 (Bloomberg) — Heiwa Real Estate Co. fell the most in seven weeks in Tokyo trading after forecasting a full-year net loss because of impairment losses. View full post on Yahoo! News Search Results for real estate
RISMEDIA, March 25, 2010—Joe Moshe, Broker/Owner, Charles Rutenberg Realty, says the Home Affordable Foreclosure Alternatives (HAFA) program will help stabilize the residential real estate market by allowing the short sale process to move forward more easily. This, in turn, will benefit real estate agents as they perform more short sale closings and homeowners who are attempting to stave off foreclosure.
On April 5, 2010, HAFA, a part of the Home Affordability Modification Program (HAMP) which provides financial incentives to servicers and borrowers to lean toward short sales rather than foreclosures, will go into effect. The law will expire at the end of 2012.
“The Home Affordable Foreclosure Alternatives program is a great effort by the federal government to get the real estate market going again,” says Moshe. “However, we are leery of banks that use their own appraisers, who may not accurately report the true value of the property.”
Under HAFA, borrowers will be allowed to receive pre-approved short sale terms before listing the property, as well as $1,500 in relocation assistance. In addition, they will be fully released from any future liability for the first mortgage debt. In order for the borrower to be eligible for HAMP, it must be the principal residence, the first lien originated before 2009, the unpaid balance must not exceed $729,750 and the borrower’s total monthly payment exceeds 31% of their gross income.
The HAFA program prohibits servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement, up to 6%. In order to implement HAFA in accordance with their own written policy, the servicer must participate in HAMP and their policy must be consistent with investor guidelines.
HAFA also offers up to $1,000 in investor reimbursements for allowing up to $3,000 in short sale proceeds to be paid to subordinate lien holders. If a subordinate lien holder receives financial incentives from HAFA, they must agree not to pursue any deficiency judgments.
“With a more streamlined process for short sales now being put into place, we should see fewer foreclosures, helping to stabilize the housing market in the near future,” Moshe says. “The program will also allow our real estate agents to close more short sales without being at the mercy of the subordinate lenders and keep more of their commissions.”
In a short sale, a homeowner owes more than what their home is currently worth. To avoid foreclosure, the homeowner settles with the mortgage lender to accept less than what they owe on the property. As a result of this agreement, the seller is able to fend off foreclosure, the lender avoids taking on the burden of selling the property and the new buyer gets the property at a reduced price. Additionally, the seller will not be required to pay for the deficiency on the loan.
“Before HAMP and HAFA were introduced, the laws rewarded mortgage servicers that were looking to recover all their expenses on a foreclosure rather than opting for a loan modification or a short sale, which meant that the servicer would take a huge loss,” continues Moshe. “In the case of a pending short sale, the mortgage servicers were in charge of making decisions and it was obvious why they chose to foreclose over other alternatives.”
For more information, call 516-575-7500, e-mail Jmoshe@crrli.com, or visit www.crrli.com.
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RISMEDIA, March 27, 2010—RE/MAX agents report that the home buyer tax credit currently can deliver meaningful savings, but only for those who, at a minimum, have a binding contract to purchase a home in place on April 30, 2010. With that deadline bearing down, potential buyers who want to capture the tax credit had better get serious about home shopping.
“It is certainly possible to find a great home and get it under contract in a month or less, but doing it requires intense focus on the part of both the buyer and the buyer’s real estate agent,” said Jim Merrion, regional director of the RE/MAX Northern Illinois real estate network.
Two versions of the tax credit are still being offered: a maximum credit of $8,000 for first-time buyers (and those who last owned a home 3 or more years ago), as well as a $6,500 credit for current homeowners. Either way, the credit applies only to the purchase of a new principal residence costing $800,000 or less, and there are income restrictions and other limitations, including a requirement to close the sale before July 1.
How can buyers eager to capture the tax credit streamline their home shopping?
Here are some suggestions:
1. Get to Know Your Market:
Buyers can do that using Internet sites that permit you to see the homes currently on the market, and by finding a good real estate agent who is ready to expedite the shopping process. “A capable agent can guide buyers through the home search process and save them a lot of time,” contends Debbie Laskowski of RE/MAX Select in Chicago. “New listings can be emailed to buyers as they are posted, and buyers should stay on top of the market on a daily basis, seeing what properties are coming onto the market and which ones have sold.”
2. Line Up Your Financing:
Talk to a reputable lender right away and go through the pre-approval process. That will tell buyers quickly how much they can borrow. At today’s extremely low interest rates, that amount may be more than many buyers imagined. But either way, the process will help buyers determine how much they are willing and able to spend on the home.
3. Start Narrowing Your Search:
With a large inventory of homes to choose from in the current market, buyers won’t have time to look at everything in their price range. By establishing specific criteria of the home they want, buyers can screen out homes that won’t fit their needs. “If you can give your real estate agent answers to two questions: Where do you want to live, and how much can you invest, you should be well on your way to a successful home search,” said Merl Carberry of RE/MAX Suburban in Arlington Heights, Ill.
“When it comes to geography, buyers should factor in their daily commute. Few of us want to be more than 45 minutes from work. If buyers need access to public transit, then that also shapes their choice, and if they have children, schools are going to be a factor. Ideally, you can narrow you search to one or two communities rather quickly.”
4.Separate Needs from Wants: Buyers can look at fewer homes if they can tell their agent what features the home they buy must have and what features would be nice but aren’t required. “When it comes to must haves, start with the basics,” recommends Dan Bundy of RE/MAX Center in Grayslake, Ill. “How many bedrooms are needed? Is a separate home office essential or just desirable? Do you require a basement? Will a two-car garage be sufficient, or do you need something larger? And don’t forget to consider the type of home. Are you interested only in a traditional two-story single-family detached dwelling, or would a ranch plan work just as well? And what about a townhouse?”
5. Consider Condition: In today’s market, many of the best values are foreclosed homes that aren’t in perfect condition. Buyers should decide up front if they are willing to tackle a home that needs work, and if so, how much.
“Buyers often have a hard time articulating what they will accept when it comes to condition,” explained Jim Hannigan of RE/MAX Properties in Western Springs, Ill. “That’s why it is important for a buyer to get out and walk through some properties with their agent as soon as possible. Buyers’ reactions give an agent the clearest picture of their priorities.”
6. Keep Things in Perspective: As nice as it may be to get the tax credit, don’t let the desire to do so completely control your home search. “Some buyers are quick decision makers, and others aren’t,” noted Debbie Laskowski. “If you like to mull over important decisions, take the time you need. The tax credit is a great incentive, but an $8,000 credit equals just 2.5% of the price of a $320,000 home. Buying the wrong home can end up costing you a lot more.”
7. Leave Time to Handle Standard Contingencies:
The typical purchase contract may have several contingency clauses, for such things as a home inspection, attorney’s approval, obtaining financing and even the sale of the buyer’s current residence. Fortunately, standard contingencies in a contract won’t prevent it from qualifying for the tax credit, according to Dan Bundy of RE/MAX Center.
However, “the more contingencies you have in a contract, the greater the risk that it won’t close,” said Bundy. For example, if an issue arises in the home inspection, and it can’t be resolved, the buyer may want to find another house, but doing that after April 30 will mean losing the tax credit. Allowing time to work through the contingencies before the deadline reduces that risk.
8. Be Careful of Short Sales: If the home you want to buy is offered as a short sale, qualifying for the tax credit may become more difficult. “Short sales require that purchase offers be approved by both the seller and the sellers’ lender, and lenders often are slow about responding,” said Merl Carberry of RE/MAX Suburban. “Waiting for lender approval could leave you without a binding contract on April 30.”
For more information, visit www.remax.com.
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Nationalized German lender Hypo Real Estate Holding AG says it narrowed its net loss to some euro2.24 billion ($2.98 billion) last year. View full post on Yahoo! News Search Results for real estate
