Nationwide sales of existing homes were up 5.1%, the largest jump since July of 2003. First time buyers accounted for half of all home sales last month, evidence that the $8,000 tax credit for purchase of a home by a first time buyer is working. First time buyers were looking for bargains though and operating in the lower price ranges. The median sales price was down 15.5% from a year ago. In the Midwest sales increases were more modest at 1% over the previous month but the median sales price was only down 7.8% from a year ago.
Many of these sales were distressed sales. Removal of these homes is important to stabilize the marketplace and relieve consumer anxiety. Locally, there is less in the way of distressed sales and as a result prices have not dipped as drastically as they have elsewhere in the country.
Scott McKinney
Trusted Advisor for Real Estate Dreams
715-798-3445scott@mckinneyrealty.net
Monday, March 23, 2009
Monday, February 16, 2009
Stimulus - Homebuyer Tax Credit
After several versions were debated by the House and the Senate, significant changes were made to the Homebuyer Tax Credit of 2008. The credit is still only for the purchase of a principal residence by a first-time home buyer, but the limit was increased to $8,000. More importantly the credit is yours to keep unless you sell the home within 3 years; there is no repayment requirement. Keep in mind, to take advantage of this opportunity you must purchase a home in 2009.
For a complete chart on the differences from the existing law to the new law, click here: Chart Highlighting the Major Modifications to the First-Time Homebuyer
Further stimulus to the housing market includes an additional $500 million in funding for the USDA Rural Housing program. Most purchases today require 20% down but buyers qualifying for the Rural Housing program can still purchase a home with competitive rates and only 2% of the purchase price. It has been reported that this level of funding would provide for an additional 192,000 homeowners.
To learn more about how you might take advantage of both of these programs and purchase a home, please give me a call. Thank you.
Scott McKinney
Trusted Advisor for Real Estate Dreams
715-798-3445 Office
715-580-0093 Cell
scott@mckinneyrealty.net
For a complete chart on the differences from the existing law to the new law, click here: Chart Highlighting the Major Modifications to the First-Time Homebuyer
Further stimulus to the housing market includes an additional $500 million in funding for the USDA Rural Housing program. Most purchases today require 20% down but buyers qualifying for the Rural Housing program can still purchase a home with competitive rates and only 2% of the purchase price. It has been reported that this level of funding would provide for an additional 192,000 homeowners.
To learn more about how you might take advantage of both of these programs and purchase a home, please give me a call. Thank you.
Scott McKinney
Trusted Advisor for Real Estate Dreams
715-798-3445 Office
715-580-0093 Cell
scott@mckinneyrealty.net
Monday, February 9, 2009
Comparison of Housing Stimulus Proposals
If you've been following the different versions of the housing stimulus that is currently in place and those proposed by the House of Representatives and most recently the Senate you might be a bit confused by the details. The following chart is helpful to compare and contrast:
Comparison chart: current law/H.R. 1/senate amendment>
Now it is likely that a different form may ultimately be passed in the final stimulus package. Either way, this is good news for all homebuyers.
Stay Tuned!
Scott McKinney
Trusted Advisor for Real Estate Dreams
715-798-3445 Office
715-580-0093 Cell
scott@mckinneyrealty.net
Comparison chart: current law/H.R. 1/senate amendment>
Now it is likely that a different form may ultimately be passed in the final stimulus package. Either way, this is good news for all homebuyers.
Stay Tuned!
Scott McKinney
Trusted Advisor for Real Estate Dreams
715-798-3445 Office
715-580-0093 Cell
scott@mckinneyrealty.net
Wednesday, February 4, 2009
Pending Home Sales Show Healthy Gain
WASHINGTON, February 03, 2009
Pending home sales increased as more buyers took advantage of improved affordability conditions, according to the National Association of Realtors®. Big gains in the South and Midwest offset modest declines in other regions.
The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in December, rose 6.3 percent to 87.7 from an upwardly revised reading of 82.5 in November, and is 2.1 percent higher than December 2007 when it was 85.9.
Lawrence Yun, NAR chief economist, said the index shows a modest rebound. “The monthly gain in pending home sales, spurred by buyers responding to lower home prices and mortgage interest rates, more than offset an index decline in the previous month,” he said. “The biggest gains were in areas with the biggest improvements in affordability.”
Follow this link for complete article http://www.realtor.org/press_room/news_releases/2009/02/pending_home_sales_show_healthy_gain?LID=RONav0021
Pending home sales increased as more buyers took advantage of improved affordability conditions, according to the National Association of Realtors®. Big gains in the South and Midwest offset modest declines in other regions.
The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in December, rose 6.3 percent to 87.7 from an upwardly revised reading of 82.5 in November, and is 2.1 percent higher than December 2007 when it was 85.9.
Lawrence Yun, NAR chief economist, said the index shows a modest rebound. “The monthly gain in pending home sales, spurred by buyers responding to lower home prices and mortgage interest rates, more than offset an index decline in the previous month,” he said. “The biggest gains were in areas with the biggest improvements in affordability.”
Follow this link for complete article http://www.realtor.org/press_room/news_releases/2009/02/pending_home_sales_show_healthy_gain?LID=RONav0021
Monday, February 2, 2009
Realtor® Recommendations Make Headway in House
WASHINGTON, January 29, 2009
The U.S. House of Representatives has taken a significant step toward economic recovery in passing H.R. 1, The American Recovery and Reinvestment Act of 2009.
Late last year, the National Association of Realtors (NAR) presented Congress with its core principles for stabilizing the housing market to launch an economic recovery. In the current legislation, NAR strongly supports the provisions to reinstate the 2008 FHA, Fannie Mae and Freddie Mac loan limit increases through 2009. NAR also strongly supports eliminating the repayment requirement on the first-time home buyer tax credit. “This is critical to stimulating home sales and shrinking the housing inventory, which will in turn help stabilize home values,” McMillan said.
The $7,500 tax credit that was passed last year is encouraging some first-time home buyers to become homeowners before the credit expires on July 1; NAR estimates that it will create 66,000 additional sales.
But more can be done, and NAR is working with Congress and the new administration to help buyers, sellers and investors in today’s market.
Currently, the program requires qualified buyers to repay the credit, without interest, over 15 years, essentially giving these buyers an interest-free loan. Eliminating the repayment feature could encourage an additional 202,000 home sales. And if the tax credit were extended to all home buyers without a repayment feature, it could result in an additional 555,000 home sales.
The U.S. House of Representatives has taken a significant step toward economic recovery in passing H.R. 1, The American Recovery and Reinvestment Act of 2009.
Late last year, the National Association of Realtors (NAR) presented Congress with its core principles for stabilizing the housing market to launch an economic recovery. In the current legislation, NAR strongly supports the provisions to reinstate the 2008 FHA, Fannie Mae and Freddie Mac loan limit increases through 2009. NAR also strongly supports eliminating the repayment requirement on the first-time home buyer tax credit. “This is critical to stimulating home sales and shrinking the housing inventory, which will in turn help stabilize home values,” McMillan said.
The $7,500 tax credit that was passed last year is encouraging some first-time home buyers to become homeowners before the credit expires on July 1; NAR estimates that it will create 66,000 additional sales.
But more can be done, and NAR is working with Congress and the new administration to help buyers, sellers and investors in today’s market.
Currently, the program requires qualified buyers to repay the credit, without interest, over 15 years, essentially giving these buyers an interest-free loan. Eliminating the repayment feature could encourage an additional 202,000 home sales. And if the tax credit were extended to all home buyers without a repayment feature, it could result in an additional 555,000 home sales.
Monday, January 12, 2009
Volunteers Make It Work
A friend of mine stayed with us last weekend as he was in town for the 24 Hours of Telemark which prompted the thought, “How committed someone must be to compete in temps hovering around zero for 24 hours straight.” Now granted, not all of the competitors actually ski the entire time but many do. What is just as remarkable are the dozens of volunteers required to put on an event like this. Their commitment is no less noteworthy in that they are sacrificing their time, and possibly fingers and toes, so someone else can enjoy themselves.
Cable and Hayward play host to events year-round that are dependent upon countless hours of volunteer support. The American Birkebeiner relies upon over 2,000 volunteers to showcase our area to 7,000 skiers and the thousands of spectators. The Chequamegon Fat Tire Festival is grateful for the 750 volunteers that make their event such a success year after year. Each of our snowmobile clubs are reliant upon dozens of people who commit their time and energy to create such a fine network of trails that riders come from all over the country to enjoy our forests.
Volunteer support goes beyond the recreational activities though. Most of the local fire departments are volunteer organizations. These men and women are available 24 hours a day, 365 days a year to protect our homes and lives. The Lions Clubs, Ducks Unlimited, the groups are endless. Why do they all do it? I’m sure everyone has their own reasons but I believe it is a commitment to this community and passion for their respective sport.
What does this all have to do with a real estate blog? Probably nothing but I’m grateful that we have these folks in our community.
Scott McKinney
Trusted Advisor for Real Estate Dreams
715-798-3445
scott@mckinneyrealty.net
Cable and Hayward play host to events year-round that are dependent upon countless hours of volunteer support. The American Birkebeiner relies upon over 2,000 volunteers to showcase our area to 7,000 skiers and the thousands of spectators. The Chequamegon Fat Tire Festival is grateful for the 750 volunteers that make their event such a success year after year. Each of our snowmobile clubs are reliant upon dozens of people who commit their time and energy to create such a fine network of trails that riders come from all over the country to enjoy our forests.
Volunteer support goes beyond the recreational activities though. Most of the local fire departments are volunteer organizations. These men and women are available 24 hours a day, 365 days a year to protect our homes and lives. The Lions Clubs, Ducks Unlimited, the groups are endless. Why do they all do it? I’m sure everyone has their own reasons but I believe it is a commitment to this community and passion for their respective sport.
What does this all have to do with a real estate blog? Probably nothing but I’m grateful that we have these folks in our community.
Scott McKinney
Trusted Advisor for Real Estate Dreams
715-798-3445
scott@mckinneyrealty.net
Monday, January 5, 2009
Why Wait?
The November sales data came out a couple weeks ago and was disappointing. The December stats will soon be out and they surely won’t be good either. This probably comes as little surprise to anyone watching the news, reading a paper or drawing breath for that matter. We are bombarded with negative economic information and as much as we’d like to tune it out, we can’t. But amid the grim news, there are a few things that potential homebuyers should not tune out:
Mortgage Rates are down. The benchmark 30-year fixed-rate home mortgage in the U.S. fell to a national average of 5.10%, the lowest since Freddie Mac began its weekly rate survey in 1971.
Homes are affordable – According to National Association of Realtors, the Housing Affordability Index is up 6.5% from the previous month and the highest in years.
This really is a good time to buy real estate, sincerely. Not just for the heck of it but if you do have the desire and ability to purchase a property, why wait? As I have mentioned before, interest rates are lower than they ever have been, fewer buyers are in the marketplace so this means less competition and sellers are considering offers that they might not have in the past.
While many buyers might be waiting for the market to hit bottom, we will never know really know when that time is until the market is on the upswing. Unfortunately by then other buyers will recognize this creating more competition and prices will be on the upswing too.
So if you’re looking for a place to buy that piece of property I can’t think of a better place to do it than Northwest Wisconsin. New snow over the weekend freshened up our trails and it truly is a winter wonderland out there.
Mortgage Rates are down. The benchmark 30-year fixed-rate home mortgage in the U.S. fell to a national average of 5.10%, the lowest since Freddie Mac began its weekly rate survey in 1971.
Homes are affordable – According to National Association of Realtors, the Housing Affordability Index is up 6.5% from the previous month and the highest in years.
This really is a good time to buy real estate, sincerely. Not just for the heck of it but if you do have the desire and ability to purchase a property, why wait? As I have mentioned before, interest rates are lower than they ever have been, fewer buyers are in the marketplace so this means less competition and sellers are considering offers that they might not have in the past.
While many buyers might be waiting for the market to hit bottom, we will never know really know when that time is until the market is on the upswing. Unfortunately by then other buyers will recognize this creating more competition and prices will be on the upswing too.
So if you’re looking for a place to buy that piece of property I can’t think of a better place to do it than Northwest Wisconsin. New snow over the weekend freshened up our trails and it truly is a winter wonderland out there.
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