Coldwell Banker Lake Sinclair Real Estate

Potential Buyers GET OFF THE FENCE	Monday, June 01, 2009

Get off the fence – you’ll be glad you did! Already own a home? REALTORS® are your best resource to explore your options if you’re thinking about selling or refinancing. Call your REALTOR® today! Don’t already have a REALTOR® on call? Click Get off the fence – you’ll be glad you did! Already own a home? REALTORS® are your best resource to explore your options if you’re thinking about selling or refinancing. Call your REALTOR® today! Don’t already have a REALTOR® on call? Click here to locate one. New Tax Credit Available A tax credit of up to $1,800 is now available to purchasers of an eligible single family residence in Georgia for homes purchased between June 1 and November 30, 2009! Up to $8,000 First-Time Homebuyer Tax Credit The American Recovery and Reinvestment Act of 2009 provides for an $8,000 tax credit that would be available to first-time homebuyers. The credit does not require repayment, and it will be claimed on a tax return to reduce the purchaser’s income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser. Unprecedented Incentives for New Homes Builders are offering unprecedented incentives for new homes such as flooring upgrades, new appliances, and discounted financing. Don’t just dream about purchasing a home; make your dreams a reality. Right now is the right time to “Get Off the Fence!” It's a Buyer's Market Buyers who are pre-approved have incredible negotiating power. Financing options are available for those with a steady income and good credit. Sellers are pricing their homes more competitively. Lower prices also mean a wider range of options from which to choose in a variety of locations. Historically Low Interest Rates Interest rates are at historical lows – lower rates equal lower payments, or a larger home – you choose. Contrary to perceptions, conventional mortgages are available at favorable interest rates for homebuyers. Buyers with good credit, a steady income and a realistic view of what they can afford are excellent candidates for a mortgage, even in this market. Building Wealth with Homeownership Historically, homes are a solid long-term investment. For the past 40 years, real estate has delivered the most consistent positive return over any investment. When you buy a home, you are building equity and adding to your assets. According to the Federal Reserve Board, the average renter’s net worth is $4,800, while the average homeowner’s net worth is $171,000. Finally, you’ll see a sizable difference each year when you claim the mortgage interest deduction on your taxes. Get Off the Fence in 2009 Prices are right, rates are low and there are plenty of homes on the market NOW. As the economy improves and more people look for homes, prices will rise. If you’re playing the waiting game, remember that the market will come back around – it always does – and you could miss your opportunity for a fantastic deal. Take advantage of today’s market - you’ll be glad you did. Get off the fence and into a home! Talk to Market Experts: REALTORS® Not only can REALTORS® help you find your perfect home, they are an invaluable resource for selling your home as well. Did you know there are over 180 steps in a typical real estate transaction? It’s not worth navigating such a complex process by yourself. Get organized and informed and get ready to get off the fence – contact your REALTOR® today!

The road to the housing recovery?

Monday, June 01, 2009

Leading Economic Indicators

A Snapshot of Monthly Housing Indicators
Updated May 21, 2009

Pending Home Sales Index
Pending home sales rose with many first-time buyers taking advantage of historically good housing affordability conditions. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in March, increased 3.2 percent to 84.6 from a level of 82.0 in February, and is 1.1 percent higher than March 2008 when it was 83.7. The Pending Home Sales Index in the South rose 8.5 percent to 93.2 in March and is 7.7 percent above a year ago.

Existing-Home Sales
Existing-home sales eased in March but first-time buyers are responding to low mortgage interest rates and tax credits, according to the National Association of Realtors®. Existing-home sales – including single-family, townhomes, condominiums and co-ops – declined 3.0 percent to a seasonally adjusted annual rate1 of 4.57 million units in March from a downwardly revised level of 4.71 million in February, and were 7.1 percent lower than the 4.92 million-unit pace in March 2008. In the South, existing-home sales slipped 1.7 percent to an annual pace of 1.71 million in March and are 10.9 percent below a year ago. The median price in the South was $146,900, down 12.2 percent from March 2008.

New-Home Sales
New home sales declined 10.2% in January, posting a seasonally adjusted annual rate of 309,000 units. New home sales were off 48.2% from their level in January of 2008. While the actual number of new homes available for sale decreased, the months’ supply of inventory rose to 13.3 at the current sales pace.

Housing Starts
Housing starts fell 10.8 percent in March to a rate of 510,000 from the revised February figure of 572,000. On an annual basis, housing starts are down 48.4 percent. The decline in March was due to a slowdown in multi-family construction, as single-family housing starts were unchanged. Building permits fell 9 percent in March to 513,000, down from the revised February rate of 564,000. From the March 2008 rate of 932,000, housing starts are down 45 percent.

Housing Affordability
NAR’s Housing Affordability Index remained near record highs. The affordability index was 166.7 in March – down from an upwardly revised record of 174.4 in February due to higher home prices in March. The index remains 30.8 percentage points higher than a year ago. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income; tracking began in 1970.

Mortgage Rates
The 30-year fixed mortgage rate is currently up .4 percent to 4.82 percent.

Employment
The economy continues to bleed jobs, as employers cut 651,000 jobs in February. While that is down from January’s revised job loss of 655,000, the figure for December was revised upward to 681,000. Unemployment rose to 8.1% -- its highest level in 25 years. Based on company payroll data, the latest report shows that since January of 2008, the economy has shed 4.4 million jobs, with more than 3.3 million of them lost over the last six months.

Economic Growth
The economy contracted at a 6.2% annual rate from the third to the fourth quarter of 2008 – a significantly larger negative GDP growth figure than originally estimated based on more complete data. Third quarter GDP growth was -0.5%. Contributing to the negative growth were decreases in consumer and business spending, residential fixed investment, as well as a downturn in exports, but federal government spending did rise.

Other Indicators
GDP - Down 6.3% from Q4 2008
Consumer Confidence - Down 32.35% from February
Consumer Price Index - Up .1% in April
Producer Price Index - Up .3% in April
Retail Sales - Down .4% from March

Source: National Association of REALTORS^®, unless otherwise indicated.

Georgia Homebuyer Tax Credit

Monday, June 01, 2009

Statewide Homebuyer Tax Credit Signed Into Law

HB 261 was signed into law on May 11, 2009 by Georgia Governor Sonny Perdue. GAR applauds House Sponsor Ron Stephens (Savannah), House Ways and Means Chairman Larry O'Neal (Warner Robins) and Senate Chairman Chip Pearson (Dawsonville) for their tireless efforts in the passage of this important legislation. Unlike the federal tax credit, the Georgia credit is not limited to first-time homebuyers, and there are no applicable income limits. The credit is only available to buyers of eligible single family residences who close between June 1 and November 30 of this year. The prompt actions of all GAR members who responded to Calls for Action on this legislation were pivotal in influencing the passage of this legislation. Below are Frequently Asked Questions regarding the Georgia Tax Credit:

1. Is this tax credit limited to first time homebuyers?
NO, all purchasers of an eligible single family residence in Georgia that file a Georgia income tax return can claim the credit.

2. Can the Georgia credit be combined with the federal $8,000 first time homebuyer tax credit?
YES, if buyers meet the qualification for each credit they may claim both. Each credit operates independently from the other. One is claimed on your federal income tax return, the other is claimed on your Georgia income tax return.

3. Is it true this credit is limited to the purchase of a single family residence?
YES, the tax credit is limited to the purchase of one single family residence.
Single-family residences (including condominiums) are eligible if they are:
* New residences, residences occupied at the time of sale, or previously occupied residences, if such residences:
- Were for sale prior to the effective date (5/11/09) and were still for sale after the effective date;
* Owner-occupied residences with respect to which the owner’s acquisition debt is in default on or before March 1, 2009; and
* Residences with respect to which a foreclosure event has taken place and which are owned by the mortgagor or the mortgagor’s agent.

4. Is it true that eligible single family residences must have been listed prior to May 11, 2009 in order to qualify for the credit?
YES, the original intent of the bill was aimed at reducing the housing stock that has been on the market for an extended period of time.

5. Is it true that only eligible buyers that close between June 1, 2009 and Nov. 30, 2009 can claim the credit?
YES, the intent of credit is to stimulate the market by encouraging potential buyers to get off the fence and BUY NOW!

6. How do I determine the amount of tax credit I am eligible for?
The tax credit will be for 1.2% of the purchase price, with a maximum credit of $1,800 (whichever is less). Homes purchased for $150,000 or more will receive a maximum of $1,800.

7. Can I claim all $1,800 on my 2009 income tax returns?
NO, the total amount of your credit must be claimed in one-third increments over a three year period. The maximum credit per year is $600 if you are eligible for the maximum $1,800. Any excess or unused credit may be carried forward to apply to succeeding years’ tax liability.

8. Can I amend my 2008 Georgia income tax return to claim the credit?
NO, the tax credit cannot be applied against prior years’ tax liability.

9. I am looking for investment property or a second home, is the credit available for the purchase of owner-occupied residences only?
NO, all eligible single family residences qualify for the credit. However, each taxpayer can claim the credit one time only.

10. Is there an income limit for buyers who claim the credit?
NO, there are no income limits applicable to this credit.

11. Is there a limit to how long a buyer must own the property to claim the credit?
NO, there is not a limit to how long a buyer must own the property.

12. Does any portion of the credit require repayment for any reason?
NO, if you are awarded the credit there are no penalties that would require you repay any portion of the credit.

Existing Home Sales Rise in April	Monday, June 01, 2009

For more information, contact: Walt Molony 202/383-1177 wmolony@realtors.org Existing-Home Sales Rise in April WASHINGTON, May 27, 2009 Existing-home sales rose in April with strong buyer activity in lower price ranges, according to the National Association of Realtors^®. Existing-home sales – including single-family, townhomes, condominiums and co-ops – increased 2.9 percent to a seasonally adjusted annual rate¹ of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March, but were 3.5 percent below the 4.85 million-unit level in April 2008. Lawrence Yun, NAR chief economist, said first-time buyers continue to influence the market but there also is a seasonal rise of repeat buyers. “Most of the sales are taking place in lower price ranges and activity is beginning to pick up in the midprice ranges, but high-end home sales remain sluggish,” he said. “The Federal Reserve needs to help restore liquidity for the jumbo mortgage market by buying these loans under the TALF program.” “Because foreclosed properties will likely be released into the market over the rest of year, it is critical that distressed homes be quickly cleared from the market,” Yun said. “Fortunately, home buyers are being attracted to deeply discounted prices and are bidding up many foreclosed listings, particularly in California, Nevada, and Florida – this will set the stage for healthy market conditions going forward.” An NAR practitioner survey in April showed first-time buyers declined to 40 percent of transactions, implying more repeat buyers are entering the traditional spring home-buying season. It also showed the number of buyers looking at homes has increased 14 percentage points from a year ago. “This is consistent with our forecast for home sales in the latter part of the year to be 10 to 20 percent higher than the second half of 2008,” Yun said. The national median existing-home price² for all housing types was $170,200 in April, which is 15.4 percent below 2008. Distressed properties, which accounted for 45 percent of all sales in April, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said conditions are optimal for buyers with good jobs and long-term plans. “We have record low mortgage interest rates, a wide selection of homes and affordable prices in most areas,” he said. “When you add the $8,000 first-time buyer tax credit, it’s hard to imagine a better time to make an investment in your future through homeownership.” According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.81 percent in April from 5.00 percent in March; the rate was 5.92 percent in April 2008; data collection began in 1971. Total housing inventory at the end of April rose 8.8 percent to 3.97 million existing homes available for sale, which represents a 10.2.-month supply³ at the current sales pace, compared with a 9.6-month supply in March. “The gain in inventory is largely seasonal from sellers entering the spring market. Even with the rise, inventory over the past few months has remained consistently lower in comparison with a year earlier,” Yun noted. Single-family home sales rose 2.5 percent to a seasonally adjusted annual rate of 4.18 million in April from a level of 4.08 million in March, but are 2.8 percent below the 4.30 million-unit pace in March 2008. The median existing single-family home price was $169,800 in April, which is 14.9 percent below a year ago. Existing condominium and co-op sales increased 6.4 percent to a seasonally adjusted annual rate of 500,000 units in April from 470,000 in March, but are 9.4 percent lower than the 552,000-unit pace a year ago. The median existing condo price⁴ was $173,900 in April, down 18.5 percent from April 2008. Regionally, existing-home sales in the Northeast jumped 11.6 percent to an annual pace of 770,000 in April, but are 10.5 percent below April 2008. The median price in the Northeast was $237,400, which is 9.6 percent lower than a year ago. Existing-home sales in the Midwest slipped 2.0 percent in April to a level of 1.00 million and are 9.9 percent lower than a year ago. The median price in the Midwest was $138,800, down 11.7 percent from April 2008. In the South, existing-home sales increased 1.8 percent to an annual pace of 1.74 million in April but are 8.9 percent lower than April 2008. The median price in the South was $148,000, which is 12.8 percent below a year ago. Existing-home sales in the West rose 3.5 percent to an annual rate of 1.17 million in April and are 19.4 percent higher than a year ago. The median price in the West was $222,600, down 21.8 percent from April 2008. # # # NOTE: References to performance in states or metro areas are from unpublished raw data used to analyze regional trends; please contact your local association of Realtors^® for more information. ¹The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns. Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 to 90 percent of total home sales, are based on a much larger sample – more than 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions. Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos. ²The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported. ³Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982. ⁴Because there is a concentration of condos in high-cost metro areas, the national median condo price generally is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes. Existing-home sales for May will be released June 23. The next Pending Home Sales Index & Forecast is scheduled for June 2; release times are 10 a.m. EDT.

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Existing-Home Sales Rise in April