Let's Talk Real Estate

The Pending Home Sales Index , a forward-looking indicator based on contracts signed in April, rose 6.7 percent to 90.3 from a reading of 84.6 in March, and is 3.2 percent above April 2008 when it was 87.5. Economists are saying that buyers are responding to very favorable market conditions. Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market. Since first-time buyers must finalize their purchase by November 30 to get the credit, increased activity is expected in the months ahead Geographic Breakdown: Northeast: The Pending Home Sales Index shot up 32.6 percent to 78.9 in April and is 0.8 percent above a year ago. Midwest: The index rose 9.8 percent to 90.4 and is 11.1 percent above April 2008. South: The index slipped 0.2 percent to 93.0 in April but is 3.5 percent higher than a year ago. West: The index rose 1.8 percent to 94.8 but is 2.9 percent below April 2008. There are numerous buyer a

The $790 billion stimulus package hammered out by House and Senate conferees late yesterday afternoon drops the repayment feature on the home buyer tax credit. This is great news since the repayment requirement was a discouraging some buyers from taking advantage of the tax credit. The legislation also extends the effective date of the tax credit, which is for up to $7,500, to September 1 (from June 30). Buyers that purchase a home in 2009 using financing assistance from state and local mortgage bonds will be permitted to use the credit as well. Hopefully the combination of changes will encourage more buyers to "get moving". Other provisions reportedly in the bill that could help housing markets and communities include: FHA and conforming loan limits - Specifics have not been released but reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be a

If you have been watching the news this week, you may have noticed that the debate in Washington has finally turned toward real stimulus for the housing industry. As a result, many believe that we could be on the brink of a substantial turn around in the real estate market. Now we need to make sure that our legislators support this stimulus. It is critical that we all join together and deliver a powerful message. Last night, the Lieberman/Isakson Amendment was included in the senate version of the Economic Stimulus Bill by a unanimous voice vote. This amendment would provide a Tax Credit to all home buyers at the rate of 10% of the sales price up to a limit of $15,000. The credit would be available for a one year period to all purchasers of primary residences. Today, the senate expects to debate Amendment 353, a proposal by Senator John Ensign (R-NV) that would provide 30 year fixed financing at a rate of about 4%, for anyone purchasing a primary residence. If these two provisions sur