Thanks to the media and special consultants to Good Morning America, we now know that the economy is back on the rise. We have seen the bottom and are going to be alright!
Yeah!
It is still a buyers market for homes. However, as an astute REALTOR(R) wrote recently, it's only a buyers market if you actually buy a house! Wait too long to time it and you'll face rising interest rates (how do we pay for all the economic stimulus?), rising home prices as more people decide to buy, and less choices as the best are taken off the market by the buyers willing and ready to make a move now.
Thanks to the media, I feel better.
Wednesday, May 13, 2009
Tuesday, May 12, 2009
Breaking News!
This just in - HUD today released approval for first time home buyers to use their tax credit as a down payment!
Details are being provided to mortgage lenders, but the bottom line is that if a buyer is eligible for the tax credit (up to $8,000), they can arrange to use that as their down payment for FHA loans!
So, if a buyer needs $7,000 to purchase a $200,000 home, they can arrange for their lender to provide a "bridge loan" until they recive their tax credit from the IRS. They will still be able to keep the other $1000 for their use.
This is a huge incentive to the program and as we get details, I will post them here and on the web site.
Details are being provided to mortgage lenders, but the bottom line is that if a buyer is eligible for the tax credit (up to $8,000), they can arrange to use that as their down payment for FHA loans!
So, if a buyer needs $7,000 to purchase a $200,000 home, they can arrange for their lender to provide a "bridge loan" until they recive their tax credit from the IRS. They will still be able to keep the other $1000 for their use.
This is a huge incentive to the program and as we get details, I will post them here and on the web site.
Monday, May 11, 2009
They're Back!
Yes, investors with quality in mind and a realistic view of our housing market are coming back. Here in the greater San Antonio area, houseing prices are holding steady, and more people are forced to rent for a variety of reasons. This makes for an attractive combination to an investor with a minimum of 20% or more down payment.
Although we don't have quite the number of foreclosures that some areas of the country have, we do have a nice selection for investment or as move in homes. These are often a good way to start the investment portfolio, but buyers need to have patience as it can take weeks just get the contract approved with some lender owned properties. HUD and VA properties normally are easier to work with as they have established process' in place.
With the increase in our military presence and continued growth in the general business sectors, we have a need for quality rentals that are priced to support the local needs. For example, a $130,000 house will not rent for $1600/month. Even with lots of upgrades most homes in this price range will rent for $950 - $1200, depending on location and condition.
So, if you want to make 5% or so on your money and have some future appreciation in the real estate market, now is a good time to consider investing in rental properties. And if the trends are any indication, the professionals are already out there looking.
Although we don't have quite the number of foreclosures that some areas of the country have, we do have a nice selection for investment or as move in homes. These are often a good way to start the investment portfolio, but buyers need to have patience as it can take weeks just get the contract approved with some lender owned properties. HUD and VA properties normally are easier to work with as they have established process' in place.
With the increase in our military presence and continued growth in the general business sectors, we have a need for quality rentals that are priced to support the local needs. For example, a $130,000 house will not rent for $1600/month. Even with lots of upgrades most homes in this price range will rent for $950 - $1200, depending on location and condition.
So, if you want to make 5% or so on your money and have some future appreciation in the real estate market, now is a good time to consider investing in rental properties. And if the trends are any indication, the professionals are already out there looking.
Friday, May 8, 2009
Homes are moving here!
I don't know what the details are, but since teh end of April, home showings have been through the roof. A lot of contracts are signed and June and July should be bonzo for closings! A couple of thoughts -
-Ft Sam and unit moves are beginning this summer. BRAC was devastating to some areas, but we are seeing a wonderful increase in military presence here in the San Antonio area
-UTSA continues to attract students, which equates to faculty and staff, and all the associated business that supports education
-The Central Texas Medical Center continues to grow, adding professional and support staff
-The First Time Home Buyer Tax Credit - up to $8,000 for qualifying individuals and families is certainly getting young folks out to look. Many are seeing the benefits and working to obtain financing
Tha above, combined with more people just looking to relocate for work or retirement, has kept our real estate market in good condition. Now we are seeing a nice increase in home sales which should keep our market resilient for this year at least.
If we have a soft spot in our market, it is that lenders are being excessively cautious in approving loans. Even folks with excellent credit (above 750 FICO score), good income, and low debt ratios are having to supply a ridiculous amount of support to get a loan finalized and closed. What was ridiculously easy a couple of years ago has taken the pendulum swing to the other side and making good buyers work too hard.
But, we are glad to be in Texas! Had a great dinner with a bunch of active duty and retired Air Force Combat Controllers last night at On the Border - a great time! Support your troops and respect what they are doing to keep this country safe!
-Ft Sam and unit moves are beginning this summer. BRAC was devastating to some areas, but we are seeing a wonderful increase in military presence here in the San Antonio area
-UTSA continues to attract students, which equates to faculty and staff, and all the associated business that supports education
-The Central Texas Medical Center continues to grow, adding professional and support staff
-The First Time Home Buyer Tax Credit - up to $8,000 for qualifying individuals and families is certainly getting young folks out to look. Many are seeing the benefits and working to obtain financing
Tha above, combined with more people just looking to relocate for work or retirement, has kept our real estate market in good condition. Now we are seeing a nice increase in home sales which should keep our market resilient for this year at least.
If we have a soft spot in our market, it is that lenders are being excessively cautious in approving loans. Even folks with excellent credit (above 750 FICO score), good income, and low debt ratios are having to supply a ridiculous amount of support to get a loan finalized and closed. What was ridiculously easy a couple of years ago has taken the pendulum swing to the other side and making good buyers work too hard.
But, we are glad to be in Texas! Had a great dinner with a bunch of active duty and retired Air Force Combat Controllers last night at On the Border - a great time! Support your troops and respect what they are doing to keep this country safe!
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