Austin Real Estate | Austin Homes for Sale » buyers

Congress Extends and Expands the First-Time Homebuyers Credit

Austin Realtor — Tue, 17 Nov 2009 00:43:04 +0000

On November 5, 2009, Congress approved an extension to the First-Time Homebuyer Credit, including changes designed to open up this valuable incentive to still more buyers. The bill’s main architects, Senators Chris Dodd and Johnny Isaksen, crafted the credit specifically to target the troubled housing industry and promote economic growth throughout the real estate sector of the economy; the expansion is expected to allow still more first-time homebuyers to take advantage of this $8,000 incentive. Current homeowners can also qualify for a $6,500 homebuyer’s credit if they have owned and lived in their current home for at least five of the past eight years; the five years must be consecutive, and income restrictions apply. The extension runs from December 1, 2009 to April 30, 2010, allowing current homeowners to take advantage of the credit anytime between those dates.

National Capital where the homebuyer tax credit was extended and expanded

The extension represents a compromise between those looking to decrease the government’s already over-sized deficit and consumer advocates who touted the benefits of the existing credit, which has been credited with prompting anywhere between 200,000 and 400,000 additional sales nationwide. While economic analysts may disagree on the total number of sales, it is widely accepted that the existing credit has been beneficial to the housing industry in general and to first-time buyers, home builders, and mortgage lenders in particular. By providing an additional incentive for buyers, the credit helped maintain home values and prevent further damage to an already weakened housing market; the expanded and extended credit is expected to help even more. This will represent a real boon to Austin homeowners who may have felt “stuck” in their old home and unable to move up to a more desirable property. By providing a $6,500 credit to existing homeowners, the credit doubles its value; homeowners can count on this incentive (or the $8,000 first-time homebuyer credit) to help move their current home, while they can also rely on the $6,500 to help them make the move to their new home in financial comfort. This measure is win-win for the Austin market and for the country as a whole. Prospective home buyers should be aware of the April 30th deadline, however. It is unlikely that Congress will extend the credit past this date, although home buyers who have signed contracts as of April 30th will receive the credit provided they close within 60 days. With home prices at affordable levels and the economy on the upswing, there has never been a better time to buy in Austin; these valuable credits provide one more incentive to buy now.

Preparing to Make Your Offer

J Cline — Thu, 17 Sep 2009 15:22:34 +0000

At no time will your qualified real estate agent make an offer on your behalf until you have named the price you want to offer. Before making any offer you should take the time to investigate some of the information below prior to settling on a price for offer. Your real estate agent will help you through the investigation process. Below is a list of factors to consider as part of your investigation: * Determine the local market * Investigate how much the seller paid If the seller purchased the house recently in the depressed market, your purchase price should hover near it. * Learn what the seller’s balance is for their mortgage This will allow your offer to consider if this is a short sale. Short sales often have a minimum to the offer they will accept. You will need to be aware of this. * Examine Comparable home’s sold This includes homes that are near or in the same neighborhood with similar layout, square footage, and age. * Analyze List-Price to Sale-Price Ratio locally This will inform you of the range the seller may be willing to operate within. Trends are often very clear and your real estate agent can provide you with a report reflecting this information. * Check Square Foot Cost Average This article shows you how: How to Calculate Residential Square Footage * Get a home history report and a Days on Market Report (DOM) An important part of this process is to keep in mind this is a business transaction until your offer for purchase has been accepted. This fact in mind, have a counter offer and several other options in mind when you make the offer to begin with. This will make certain you will find the right house at the right price for you. Depend on your Real Estate Expert for this process and you won’t go wrong.

Real Estate Recovery

J Cline — Tue, 25 Aug 2009 05:25:50 +0000

Over the last three years there has been sharp downswing in housing prices. In many markets the prices dropped out quickly, not stabilizing until only recently. As foreclosures rose, many didn’t believe they housing market was going to stabilize any time soon. This thankfully, has not proven to be the case. Recent reports and studies have revealed that in 2009, specifically since the second half has begun the housing market in stabilizing and reestablishing solid markets where a loss was drastic previously. Home sales are up creating the most stable market since the mortgage crisis began. The 8 thousand dollar tax credit is being given some credit for easing the decline and initiating the incline in single family home purchases. This tax credit will expire on November 31st, 2009, this crucial deadline combined with lower interest rates have become the saviors of the housing market. In May of 2009 the OFHEO or Office of Federal Housing Enterprise and Oversight announced the first of a steady increase in home prices, over previous months. It edged up that first month with .09% and has continued every month since. In one area of significant concern with the mortgage crisis, the pacific coast has registered one month with an increase of 2.7% showing significant improvement. As the market continues to stabilize, buyers come out of the woodwork, and housing prices are starting to inch back up to more anticipated levels. This proves real estate and the economy as a whole has entered a state of recovery.

Mortgage Disclosure Information Act — effective July 30th

Marie Funston — Wed, 08 Jul 2009 20:24:32 +0000

This message is to alert you to changes in the federal Truth-in-Lending Act regulations, which will have an impact to every mortgage provider. It will require a fundamental change to how we finalize loan terms for the borrower prior to closing. Changes at the closing table could require the borrower to reschedule the closing date if a revised Truth-In-Lending (TIL) is needed. The rules for the Mortgage Disclosure Improvement Act were finalized Friday, May 8^th, and it is applicable to all mortgage lenders (federally chartered or state licensed). For applications taken as of July 30, 2009, new requirements about the delivery and the accuracy of disclosures will apply. One of the new requirements is that the borrower must be provided with an accurate APR disclosure at least three business days prior to closing. Remember the new rule with “3/7/3” 3 days after application – An initial Truth-In-Lending (TIL) statement must be provided no later than 3 business days after receipt of the loan application. Our current process generates an auto-compliance package that complies with this requirement, so no changes are needed. 7 business days after initial application – Waiting period – the borrower is not permitted to close until at least seven business days have passed since the TIL was placed in the mail or provided to the borrower. 3 business days prior to closing – Waiting period – the borrower must receive an accurate APR on their TIL at least 3 business days prior to closing. If it was provided before that period of time, because the loan terms were locked in earlier in the process, no new TIL is required if there is no change to the APR or the change is less than 1/8th of a percent. If the final loan terms cause the TIL / APR to be understated by more than 1/8th of a percent, a revised TIL with an accurate APR must be provided to the borrower so that they receive it at least three business days prior to closing. It must be in their hands at that time, and they may close on the 3rd business day after that day. What this means to you? All Realtors and buyers need to be advised of these new timing requirements, which will limit rush closings and could even delay closings.

Recent Austin Market Conditions

J Cline — Thu, 28 May 2009 12:42:08 +0000

It has not been a fruitful few years in regard to any housing market. The current recession that continues to plague the nation was first indicated through an enormous surge in foreclosures. Not long after the housing bubble burst, unemployment took its turn at rising to levels not seen in years. While Austin has been a city that has maintained overall decent economic health, it has not been completely untouched. The market here has slowed significantly, with March home sales down by around 22% when compared to the same month last year. Buyers are still skeptical about buying in a down market. This is evident from the low home sales so far through 2009. One major hurdle that interested buyers are facing is the credit crunch that has limited many options for loans. These days, it is harder than ever to secure financing for a large investment. While this may mean that those who are purchasing may have less trouble with continuing payments, it has taken a lot of people out of the running for new homes. People who may have been approved just a few years ago are no longer eligible. Home values in Austin have not dropped as dramatically as in other cities, though they are down by about 4% from last year. The strong local economy, availability of employment, and pleasant atmosphere all help to boast the housing market. These traits continue to bring newcomers to the area, which will continue to help the housing market. The market here is not expected to start looking up until late this year, or possibly into 2010. Until then, Austin will likely remain as steady as possible in such a difficult time.

US Foreclosures Create Good Deals for Foreign Buyers

J Cline — Sun, 15 Mar 2009 06:28:19 +0000

The United States has been gripped in an economic downfall for years. The first and most dramatic show of the dwindling economy has been the national real estate market. Home foreclosures have risen so dramatically that the Federal government has had to bailout several financial institutions and in the process of creating a new plan to help save homes. The national job market has equally been affected by economic woes, making it even more difficult for many people to even consider buying a home. For all of the hardships that we are currently coping with, it appears that opportunity is knocking for foreign investors. Homes in many of the nation’s hardest hit areas are being sold for taxes due. This has encouraged many foreign buyers, as far away as Australia, to purchase several homes in the U.S. as investment opportunities. Homes have been listed for as low as $1. Australian vacuum cleaner manufacturer Theo Szinger has already purchased several homes in the Detroit, Michigan area for less than $5,000. There are many houses available now for mere thousands of dollars that less than two years ago had been valued at more than $200,000. Many of these homes are in excellent condition; the current owners are just unable to keep up with payments. As Americans continue to struggle to keep their homes, foreign parties are expected to continue to take advantage of the deals now offered throughout the nation. Homes are now available for less than the price of a used car. These homes have become a good source of income for buyers.

Austin Real Estate Market: Good News and Bad News

J Cline — Wed, 16 Jul 2008 06:38:12 +0000

First, the bad news. New home construction in the Austin area in 2008 is still far below where it was this time last year. Housing starts had been sliding since the third quarter of 2006, possibly a delayed reaction to the national house construction slump. The 2,814 new homes started in the second quarter of 2008 is 19 percent when compared with second quarter home starts in 2007.

Buyers are still skeptical and reluctant to make an investment in real estate while conditions remain so uncertain. In the second quarter of 2008, 2,728 new homes were sold, compared with 3,110 in the first quarter. This is down 19 percent from the same period last year.

It’s not only the buyers who are wary in the midst of this housing slump, either. Builders are concerned that prospective buyers can qualify for and obtain mortgages. Lenders, too, are cautious and have raised their standards. After the fiasco of sub-prime lending practices and loose requirements resulted in the current credit crunch, state governments and government mortgage guarantors have cracked down on lending practices.

Now, the good news. Housing starts in the second quarter, though lower than last year at the same time, are up from the first quarter housing starts of 2,303. This is actually a smart move on the part of home builders, who are want to keep their inventory low. There were 11 percent fewer vacant homes on the market at the end of the second quarter than the previous quarter.

And, for those who qualify, lending rates remain low and builders are willing to negotiate for bargain prices.

Is Now The Right Time to Buy in Austin?

Joe Cline — Wed, 20 Feb 2008 20:51:15 +0000

Right now the real estate market in places across the country is pretty shaky. In places that experienced unsustainable appreciation, prices have tumbled and combined with the mortgage crisis, prices have been depressed. Understandably, many buyers are afraid to make a move due to the uncertainty being spread by the media and folks who sell stocks. Consumers need to remember that commodity brokers want to sell you commodities, stock brokers want to sell you stocks and so on and so forth. That said, take an example such as Enron. When Enron collapsed, many people lost their entire retirement, pension, or and/or savings. The company was a sham. Does this ever happen in real estate? I personally can’t imagine anyone buying a property and then having it evaporate overnight. I suppose if you bought a property with a nuclear waste dump on it, then it’s possible, but aside from that, real estate is a much safer investment. Additionally, real estate needs to be managed. In that respect, if you buy a property in Austin or Las Vegas and are a good owner you might want to take a trip there to make sure your property is being managed properly. This is called a tax deduction. You get the picture. Of course, that is just one perk of owning real estate. You get additional benefits such as tax write-offs, depreciation, and leverage. With prices down, rates cheap, and lots of inventory, it may be counter intuitive, but it could be the perfect time to buy.

Builders remain cautious although more buyers visit model homes
Paul Lopez National Association of Home Builders WASHINGTON, D.C. – - Builder confidence in the market for new single-family homes edged marginally higher in February as traffic of prospective buyers through model homes improved considerably, according to the latest National Association of Home Builders//Wells Fargo Housing Market Index , released Tuesday. The index rose a single point to 20 this month, still close to its recent historic low reading of 18 (the series began in January of 1985). “While builders remain very cautious about the outlook for new-home sales, given today’s economic environment, the fact that more consumers appear to be checking out their options is a good sign,” said Sandy Dunn, a home builder from Point Pleasant, W.Va. and the newly elected 2008 president of the National Association of Home Builders. … “Some potential buyers who have been sitting on the sidelines are starting to at least research a new home purchase given improving affordability factors and the large selection of units on the market,” said the builders’ chief economist David Seiders. “That said, builders know there’s a difference between people looking and people buying, and their current outlook remains quite subdued. Additional stimulative measures on the legislative and policy side are definitely needed to bolster consumer confidence and help bring about a housing and economic recovery.” … In February, the index gaging current sales conditions for single-family homes rose one point to 20, while the index gaging sales expectations for the next six months declined one point to 27. Meanwhile, the index gaging traffic of prospective buyers rose five points to 19, its highest level since July of 2007. …