Tuesday, February 17, 2009
Friday, February 13, 2009
Stimulus Package
Well, we are still waiting for the final details on the stimulus package, but it appears that the "First Time Homebuyer" tax credit will become part of teh final bill. It will not be as bold as first expected, but still a very important step in getting buyers (you) to get active inyour home buying process.
We think it will wind up being a 10%, up to $8000, tax credit for home bought between 12/21/08 - 12/31/09. And the important part is that it will not have to be repaid.
Of course, there may still be other tax implications, but on the surface this appears to be a great tool for home buyers. A first time buyer is defined as anyone that has either never ownerd a home (duh!), or one that has not owned a home as a primary residence on the last three consecutive years. The last draft I read was still a little blurry on whether owning a rental home still allowed for first time status and I will be watching for that, along with other details and pass it along.
Another great news item for the greater San Antonio area is that USAA is bringing 1000 jobs here from other locations! Of course, many will be local hire, but also many new arrivals. Ths will allow more homes to be sold and give the seller market a boost.
We think it will wind up being a 10%, up to $8000, tax credit for home bought between 12/21/08 - 12/31/09. And the important part is that it will not have to be repaid.
Of course, there may still be other tax implications, but on the surface this appears to be a great tool for home buyers. A first time buyer is defined as anyone that has either never ownerd a home (duh!), or one that has not owned a home as a primary residence on the last three consecutive years. The last draft I read was still a little blurry on whether owning a rental home still allowed for first time status and I will be watching for that, along with other details and pass it along.
Another great news item for the greater San Antonio area is that USAA is bringing 1000 jobs here from other locations! Of course, many will be local hire, but also many new arrivals. Ths will allow more homes to be sold and give the seller market a boost.
Friday, February 6, 2009
San Antonio Market Statistics
Here are some statistics on the current San Antonio market:
As of February 5th, we have 10,715 single family homes in all price ranges.
-1962 are under $100,000
-2182 are between $100 - 149,999
-1935 are between $150 - 199,999
-1186 are between $200 - 299,999
-936 are between $300 - 399,999
-524 are between $400 - 499,999
-The remaining 1166 are between $500,000 - $5 Million
For Most home buyers the primary price range is between $125 - 200,000. This is also the largest inventory range as well. However, this range also sells the quickest and has the lowest inventory of approximatley 5 months, compared to 40 months for some of the highest priced homes.
Once our government figures out whether we get tax credits or tax incentives (not repayable), it will be time to take a serious look at buying. Call and we can discuss the options!
As of February 5th, we have 10,715 single family homes in all price ranges.
-1962 are under $100,000
-2182 are between $100 - 149,999
-1935 are between $150 - 199,999
-1186 are between $200 - 299,999
-936 are between $300 - 399,999
-524 are between $400 - 499,999
-The remaining 1166 are between $500,000 - $5 Million
For Most home buyers the primary price range is between $125 - 200,000. This is also the largest inventory range as well. However, this range also sells the quickest and has the lowest inventory of approximatley 5 months, compared to 40 months for some of the highest priced homes.
Once our government figures out whether we get tax credits or tax incentives (not repayable), it will be time to take a serious look at buying. Call and we can discuss the options!
Tuesday, February 3, 2009
Economic Stimulus Update
Here is an update on the Housing Stimulus Package in Congress. You may want to contact your Congressional Rep or Senator to state your support, or not.
A huge incentive would be to eliminate the repayment provision for the $7500 home buyer credit! Read on for more:
U.S. House passes stimulus packageLast Wednesday, the United States House of Representatives passed on a largely partisan vote of 244-188, HR 1, the American Recovery and Reinvestment Act of 2009. The economic stimulus bill, as the legislation is more commonly known, contains a number of key provisions:
-Restoration of the 2008 loan limits for FHA, Fannie Mae, and Freddie Mac to 125% of median home price up to a limit of $729,750
-Elimination of the repayment provision of the $7,500 first-time homebuyer tax credit
-Expansion of tax-exempt housing bonds
-Increased funding for the Rural Housing Service Program
-Additional funding for neighborhood stabilization activities under the Community Development -Block Grant Program
-Incentives to promote weatherization and energy efficiency
-Retrofitting federally assisted housing for energy efficiency
-An expansion of the Hope VI low-income housing construction and rehabilitation program
The House has also addressed a number of housing issues in legislation revamping the Trouble Asset Relief Program. Among the housing provisions of interest in the TARP Reform and Accountability Act of 2009, HR 384, are:
-A mortgage buy-down program to reduce rates below current prevailing market rates
-Increased foreclosure prevention and mitigation efforts
-Ensuring liquidity in the residential and commercial mortgage markets
-Streamlining efforts to unclog the credit markets and increase the availability of credit to worthy customers
Once the Senate passes a measure, the differences with the House version will be worked out in a conference committee.
A huge incentive would be to eliminate the repayment provision for the $7500 home buyer credit! Read on for more:
U.S. House passes stimulus packageLast Wednesday, the United States House of Representatives passed on a largely partisan vote of 244-188, HR 1, the American Recovery and Reinvestment Act of 2009. The economic stimulus bill, as the legislation is more commonly known, contains a number of key provisions:
-Restoration of the 2008 loan limits for FHA, Fannie Mae, and Freddie Mac to 125% of median home price up to a limit of $729,750
-Elimination of the repayment provision of the $7,500 first-time homebuyer tax credit
-Expansion of tax-exempt housing bonds
-Increased funding for the Rural Housing Service Program
-Additional funding for neighborhood stabilization activities under the Community Development -Block Grant Program
-Incentives to promote weatherization and energy efficiency
-Retrofitting federally assisted housing for energy efficiency
-An expansion of the Hope VI low-income housing construction and rehabilitation program
The House has also addressed a number of housing issues in legislation revamping the Trouble Asset Relief Program. Among the housing provisions of interest in the TARP Reform and Accountability Act of 2009, HR 384, are:
-A mortgage buy-down program to reduce rates below current prevailing market rates
-Increased foreclosure prevention and mitigation efforts
-Ensuring liquidity in the residential and commercial mortgage markets
-Streamlining efforts to unclog the credit markets and increase the availability of credit to worthy customers
Once the Senate passes a measure, the differences with the House version will be worked out in a conference committee.
Thursday, January 29, 2009
What is going to get better for a buyer?
I just received a note from a client that I have been working with for some time. She and her husband started looking as the overall market was weak, and they knew some good deals could be made. However, they decided last night that the ecnomoy was too shaky and they were going to sit it out for while longer until things started to get better.
Ok, what is going to get better for a buyer?
-Low interest rates? Lowest in years! If you qualifiy for the Texas Veteran Program and have a VA disablity of 30% or more, you can get a 30 year fixed for a guaranteed rate of 4.78% this week!!!
-Low home prices? Home prices in the greater San Antonio area have weatherd the economy better than most, but our prices have either been steady or seen some decline. Will every house for sale go lower? I doubt it seriously. So current prices are probably as good as we will see for some time as well.
-Availability/Inventory of existing homes? The most we have had on the market - ever! The San Antonio MLS currently has about 10,790 singel family residential units available. If there isn't something you want, you may never find it!
-Availablity of mortgage money? Again, loads of money out there. Every lender I talk to is looking for new buyers. A lot of refinancing in the works, and that should spark a bit of new purchases as well, but where are the buyers? Yes, the requirements are a bit more stringent than a couple of years ago. you have to do more than breath to get a loan!
The money is there and it is cheap and the houses are there and they are priced well. Get out and see what we have and if you have a job and want a new house, now may be the best time in years to make that happen!
Ok, what is going to get better for a buyer?
-Low interest rates? Lowest in years! If you qualifiy for the Texas Veteran Program and have a VA disablity of 30% or more, you can get a 30 year fixed for a guaranteed rate of 4.78% this week!!!
-Low home prices? Home prices in the greater San Antonio area have weatherd the economy better than most, but our prices have either been steady or seen some decline. Will every house for sale go lower? I doubt it seriously. So current prices are probably as good as we will see for some time as well.
-Availability/Inventory of existing homes? The most we have had on the market - ever! The San Antonio MLS currently has about 10,790 singel family residential units available. If there isn't something you want, you may never find it!
-Availablity of mortgage money? Again, loads of money out there. Every lender I talk to is looking for new buyers. A lot of refinancing in the works, and that should spark a bit of new purchases as well, but where are the buyers? Yes, the requirements are a bit more stringent than a couple of years ago. you have to do more than breath to get a loan!
The money is there and it is cheap and the houses are there and they are priced well. Get out and see what we have and if you have a job and want a new house, now may be the best time in years to make that happen!
Tuesday, January 27, 2009
Interest Rates At Historic Lows
As interest rates hover in historically low levels, there are certain things happening that will start to slow down some of the refinancing and purchases.
For openers, the lenders are trying to slow down the flow so they can keep their costs low. Underwriting is reviewing packages and taking weeks to finalize, often with last minute requirements that have even caused loans to be disapproved at the last minute.
Another is the use of many legal, but sometimes questionable, fees. These can add hundreds to thousands of dollars to the cost of obtaining a loan. The banks need this money to offset the low interest rates. They are not making a lot of money on the low rates, so they are not waiving or reducing the fees they charge.
Even our highly regarded Texas Veteran Loan program is keeping their rates higher than usual, and have reduced the Veterans with disability discount to 0.5%. This is to slow down the number of loans and keep their program funded through the rest of the year.
So, we may be at the lowest cost of obtaining a loan and may see more fees, higher interest rates, and longer times for approval as the economy starts to "recover" and the stimulus packages kick in.
I'll let you know if I see things changing anytime soon.
Sorry about the spelling earlier, I missed spell check!
For openers, the lenders are trying to slow down the flow so they can keep their costs low. Underwriting is reviewing packages and taking weeks to finalize, often with last minute requirements that have even caused loans to be disapproved at the last minute.
Another is the use of many legal, but sometimes questionable, fees. These can add hundreds to thousands of dollars to the cost of obtaining a loan. The banks need this money to offset the low interest rates. They are not making a lot of money on the low rates, so they are not waiving or reducing the fees they charge.
Even our highly regarded Texas Veteran Loan program is keeping their rates higher than usual, and have reduced the Veterans with disability discount to 0.5%. This is to slow down the number of loans and keep their program funded through the rest of the year.
So, we may be at the lowest cost of obtaining a loan and may see more fees, higher interest rates, and longer times for approval as the economy starts to "recover" and the stimulus packages kick in.
I'll let you know if I see things changing anytime soon.
Sorry about the spelling earlier, I missed spell check!
Monday, January 12, 2009
Texas Home Inspection Updates
Thanks to our frined, Jim Wiley of Gold Star Home Inspection, here is a quick update to the Texas Residential Inspection regulations. As always, when purchasing a home, it is in your best interest to have a thrid party inspector go over it whether new construction or existing.
Changes to the Standards of Practice
I have just returned from a seminar for our Standards of Practice. Some changes have taken place that I feel everyone should know.
They have removed the term “In Need of Repair” and replaced it with “Deficiency”. It seems a buyer assumed that if a box was checked “In Need of Repair” that the seller was obligated to repair that item before the sell of the home. As always the report is just a negotiating tool.
Everyone has heard of Arc Fault Circuit Interrupters (AFCI) breakers. They are used for an additional level of protection on all branch circuits that supply 125 Volt, single-phase power installed in bedrooms and for smoke alarms. This requirement did not become effective until November 1, 2002 for all new and remodeled construction.
Now, Texas has adopted the 2008 NEC which requires AFCIs circuit breakers for all branch circuits that supply 125 Volt, single-phase power serving bedrooms, family rooms, dining rooms, living rooms, parlors, libraries, dens, sunrooms, recreations rooms, closets, hallways, or similar rooms or areas. We are required to report the lack of arc arc-fault circuit interrupting devices.
How does this affect you? The only thing we have to do extra is brief our clients that this is a new requirement and that NO home in Texas will meet the new standard. It is not something that has to be repaired and will not affect the sell of a home. However it is my duty to tell our client that there is an additional level of protection out there for them.
On this same line of thought now all outlets in the garage must be GFCI protected. The earlier standards allowed one outlet to not be on a GFCI circuit.
If you have any questions regarding the Standards Of Practice please give me a call.
Jim Wiley
Gold Star Home Inspections
Changes to the Standards of Practice
I have just returned from a seminar for our Standards of Practice. Some changes have taken place that I feel everyone should know.
They have removed the term “In Need of Repair” and replaced it with “Deficiency”. It seems a buyer assumed that if a box was checked “In Need of Repair” that the seller was obligated to repair that item before the sell of the home. As always the report is just a negotiating tool.
Everyone has heard of Arc Fault Circuit Interrupters (AFCI) breakers. They are used for an additional level of protection on all branch circuits that supply 125 Volt, single-phase power installed in bedrooms and for smoke alarms. This requirement did not become effective until November 1, 2002 for all new and remodeled construction.
Now, Texas has adopted the 2008 NEC which requires AFCIs circuit breakers for all branch circuits that supply 125 Volt, single-phase power serving bedrooms, family rooms, dining rooms, living rooms, parlors, libraries, dens, sunrooms, recreations rooms, closets, hallways, or similar rooms or areas. We are required to report the lack of arc arc-fault circuit interrupting devices.
How does this affect you? The only thing we have to do extra is brief our clients that this is a new requirement and that NO home in Texas will meet the new standard. It is not something that has to be repaired and will not affect the sell of a home. However it is my duty to tell our client that there is an additional level of protection out there for them.
On this same line of thought now all outlets in the garage must be GFCI protected. The earlier standards allowed one outlet to not be on a GFCI circuit.
If you have any questions regarding the Standards Of Practice please give me a call.
Jim Wiley
Gold Star Home Inspections
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