Tax Credit Extended!

Just about two hours ago, in the 25th hour, the Senate concurred with the House and passed the stand-alone bill to extend the first time home buyer's tax credit so buyers can still take advantage of the credit up to September 30, 2010. This is ONLY for buyers who were already in contract at the April 30, 2010 deadline--the assumption is that it will only benefit about 180,000 buyers who are currently in short sale transactions and have not received final approval so that they can close escrow. Full Article

First Time Home Buyer Tax Credit Extension?

The Senate has approved extending the "close dates" on transactions where buyers, who qualify for the FTHB tax credit, will receive another 3 months, until September 30, 2010, to close those transactions that qualify for the tax credit. This does NOT give buyers who got into contract after April 30th any benefit, and, in truth, the estimates are that it will only affect approx. 180,000 first time homebuyers.

It is, however, good news for those who may be waiting on approvals for short sale transactions and who were in contract prior to April 30th but are unlikely to close by June 30th.

Please note, this has been sent to the House of Representatives, so final approval will rest with their vote, expected next week.

MARKET FLASH

If annual trends hold this year, May should be a strong month for real estate. According to Lawrence Yun, NAR’s chief economist, there is a broad home sales recovery occurring in nearly every part of the country. Two trends to note are that sales have been above year-ago levels for the past 9 months while inventory has trended down from year-ago levels for the past 20 months.

What fed this growth? The home-buyer tax credit that was in effect until the end of April is being credited for preserving up to $1 trillion in housing wealth, according to Yun. Single-family home sales are over 13% higher than a year ago.

Home prices have stabilized and mortgage interest rates are historically low. There is a sense that the market is turning and conditions are optimal in most of the country.

New EPA law for House built prior to 1978

There is a new federal statute requiring contractors to be certified in order to do remodeling work on properties built prior to 1978. This will affect those of you who hire people to work on properties in preparation for sale. Full details here: http://www.epa.gov/lead/pubs/renovaterightbrochure.pdf

Growth!

March 15 (Bloomberg) -- The U.S. housing market is poised to withstand the removal of government and Federal Reserve stimulus programs and rebound later in the year, contributing to annual economic growth for the first time since 2006.

An Easy Answer

Today at our meeting I was asked what I have done to become a successful Realtor. I replied: "I really haven't done anything but be myself."

It reminded me of a quote from my favorite, Dr. Seuss: “Today you are You, that is truer than true. There is no one alive who is Youer than You.”

Cheers,

-Mike

Mike gets global recognition from 2009 Premier Club

On Wednesday I received an award from The 2009 Premier Club. The Premier Club is a sales associate recognition program that identifies referral achievement in the Leading Real Estate Companies of the World® which we (Alain Pinel) are a member. I'm very appreciative of this recognition and thanful for all your support. I look forward to helping you and your families for years to come. -Mike

Bernanke's Announcement on Rates!

The days of awesome interest rates are soon ending according to Bernanke's announcment. Click here for the article.

How does your home score? WALK SCORE!

Walk Score is a fun website that calculates the proximity of your home to services, restaurants, entertainment, public trasportation and more. How does your home score? Check it out: www.walkscore.com

Building Permits. WITH or WITHOUT?

WITH! Please do your projects WITH PERMITS! Yes, I am shouting here!
A few good reasons to pull permits:

1. If there are any alterations, repairs or additions discovered that are not indicated on a parcel the Seller might be liable to pull the required permit(s) and pay late fee(s).

2. Sellers are required to disclose any work done on a property with and/or without permits to perspective Buyers. Sometimes Buyers are OK with non-permitted work, sometimes they aren’t!

3. If work done without permits is not to current building standards or code, the Seller might be liable to correct it. This can be costly depending on the scope of work.

4. Some areas have a required City Resale Inspection Report to be performed on the property before it can be sold.

OK, I’m done shouting now. Phew!

"Move-Up" Tax Credit

1. Who is eligible to claim the $6,500 tax credit?
   Qualified move-up or repeat home buyers purchasing any kind of home are eligible to claim this credit.
2. 
   What is the definition of a move-up or repeat home buyer?
   The law defines a tax credit qualified move-up home buyer (“long-time resident”) as a person who has owned and resided in the same home for at least five consecutive years of the eight years prior to the purchase date. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. That is, both spouses must qualify as long-time residents, with at least five years of principal residency for each. Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.
3. 
   How is the amount of the tax credit determined?
   The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit.
4. 
   Are there any income limits for claiming the tax credit?
   Yes. The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) above those limits. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

New GFE & HUD-1

The feds now require a multi page GFE & HUD-1. It's intended to provide clarification of fees but expect a very confusing form. Make sure your escrow officer and Realtor are on top of any fee adjustments as it will now take longer to amend the GFE and likely required loan docs to be redrawn, causing a delayed close of escrow!

Just for fun: December 2008 & 2009 SOLD #’s

Marin County Single Family Residence SOLD
December 2008: 91
December 2009: 176

Marin County Condo’s/Townhouse SOLD
December 2008: 36
December 2009: 44

Sonoma County Single Family Residence SOLD
December 2008: 413
December 2009: 355

Sonoma County Condo’s/Townhouse SOLD
December 2008: 59
December 2009: 80

Big Banks, Short Sales, Kick Backs and Fraud

Here's an interesting online article from CNBC about naughty short sale practices. When will they learn? Here's the link: http://bit.ly/ssfraud

Is This The Start?

As we move further away from the holiday's sellers and buyers start to make decisions. Last week mortgage applications in the U.S. rose 14%, with refinancing up 22% and purchases up .8%.

How was 2009?

As we are in the New Year many friends have asked “how many sales did you do this year?” It was wonderful, 14 successful transactions this year. Pretty good in this market for sure. It’s funny though, I don’t think of what I do as “sales”. I naturally take the approach of helping families achieve their real estate goals by providing credible information, market stats and guidance they need to make informed decisions whether purchasing or selling. So yes, I did 14 transactions but I didn’t “sell” anything.

What does 2010 have in store for us? Well, hard to know but stats are looking up and we all hope for a continuing stabilizing market. I should have my Q4 stats and enewsletter to you by the end of January.

Until then – be good and don’t hesitate to contact me if you need anything.

Cheers,
Mike