Christmas by the Numbers

Here are some interesting little tidbits you might enjoy. Christmas by the numbers:

• The U.S. Postal Service will deliver over 16 billion cards, letters and packages between December 1st and Christmas Day.


• Pre-cut Christmas trees account for 78% of all trees purchased in the United States. The rest are sold to people who cut their own trees.


• About 44% of all Americans feel they spend too much on Christmas gifts.


• The average Christmas trip is 275 miles for those traveling to be with loved ones on the holiday.


• Retail stores take in about 15% of their total year's sales in December. For jewelry stores, that percentage rises to 24%.

*Source: U.S. Census Bureau

I hope everyone has a very Merry Christmas and a Happy New Year. Stay safe and enjoy your loved ones. Happy holidays!

Marianne Backstone-Tabner, your connection to Boston Northwest, Cape Cod and the Islands

Are you interested in purchasing a Boston Northwest home but are hesitating because you're waiting for the "right time to buy"? Stop waiting and start searching. Here are the top 10 reasons to buy a home now:

1. Historically Low Interest Rates - Interest rates remain at historic lows. If you have good credit, you could be paying as low as 4.46% for a 30 year fixed-rate mortgage and 3.81% for a 15 year fixed-rate mortgage (as of December 5, 2010). Those rates are too low to pass up.



2. Mortgage Interest Tax Deduction - While the higher ups in the government are currently debating whether this should be stopped to help offset some of the national deficit, the mortgage interest tax deduction is still available for homeowners. So, take advantage of it while it is still available.



3. Community Stability - Research has shown that communities with higher homeownership rates tend to be safer, have higher community involvement and even see higher graduation rates.



4. More Affordable Than Ever - Now that the prices have come down in the last couple of years, owning a home has become affordable again, making it a better financial decision than simply renting.



5. Pay Yourself Instead of a Landlord - By paying a mortgage instead of a rental fee, you are investing in yourself.



6. Property Appreciation - While prices skyrocketed and then plummeted over the past few years, homeowners who have been in their homes for a longer period of time have still experienced an increase in their home value. Typically, homeowners experience a 4 to 6% increase in home value over the lifetime of their ownership.



7. Equity - By owning your home, you can tap into its equity to make major improvements.



8. Cultivating a Garden - With more people looking to grow their own fruits and vegetables, gardening is making a comeback. If you own your land, you have a piece of property you can cultivate your own garden on.



9. Setting Down Roots - Owning a home is your first step to setting down roots for you and your family.



10. Monthly Expenses - Once you pay off your home, your monthly expenses will be significantly less while, if you rent, your expenses stay the same.

Even during the holiday season, don't delay on purchasing your dream Boston Northwest home. The above top 10 reasons to buy a home now speak for themselves. Contact me now to help you find the perfect Cape Cod area home for you.

Marianne Backstone-Tabner, your connection to Boston Northwest, Cape Cod and the Islands

Real Estate Update

Market Update

Housing activity continues to remain above year-ago levels despite some setbacks resulting from the now-expired tax credit. Improved stability in home prices with similar levels of distressed properties seen last year offers a hopeful sign the market is holding its ground. However, the economy still has a considerable way to go to achieve its full recovery.

Consumers are saving more and being picky about how they spend their money. While a higher savings rate means less spending in the near term, this is a positive sign that households are taking control of their finances to build some cushion that can be used to pay down debt and/or support future spending.


Existing home sales marked the twelfth consecutive month of year-over-year increase in June. On a monthly basis, sales activity eased 5.1% from May. The moderation in home sales reflects “understandable swings as buyers responded to the tax credits,” according to Lawrence Yun, NAR chief economist. He anticipates such impact to show up in the next two months.



June’s median home price increased for the fourth consecutive month. Distressed homes, accounting for 32% of sales last month, continued holding home prices at highly affordable levels for the time being. While distressed sales hovered around the same level as a year ago, the gain in home prices is pointing to a sustained stability in the making.

Interest Rates

Mortgage rates set a new record low in July as consumer confidence softened and unemployment remained elevated. This presents a great opportunity for buyers and investors. Coupled with lowered home prices and a robust rental market, investors are finding their way to cash-flow opportunities. As recovery gains deeper roots, rates will need to rise to keep inflation in check.



Rates as of August 6.

This Month's Video

Topics For Home Owners, Buyers & Sellers



Consumers Beware: New Credit Card Tricks

On May 22, 2009, President Obama signed into law the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, marking a turning point for American consumers and ending the days of unfair rate hikes and hidden fees. While the new law offers significant safeguards, consumers still need to be vigilant against new practices designed to outflank the new rules.

Stay as informed as possible, read your statement , report any irregularities immediately, and watch for these tricks.

*

Shortened Billing Cycle: The CARD Act requires companies to allow a window of at least 21 days from when a statement is mailed and when payment is due. Cardholders are reporting being shortchanged on billing cycle time and then being assessed late-payment fees.
Advice: Watch out for shortened payment dates.
*

Sunday Due Dates: The CARD Act stipulates if a creditor does not receive or accept payments on weekends or holidays, then the date is extended and late-payment fees shouldn’t be triggered. However, some banks say they’re open for business even when there’s no mail delivery.
Advice: Don’t assume you are safe.
*

Low-Limit Cards: The CARD Act says a card’s total annual fees can’t exceed 25% of a borrower’s credit line. However, some issuers may be evading the fee restrictions by charging an up-front processing fee that doesn’t fall under the 25% cap.
Advice: Watch out for processing and other fees.
*

False Inactive Fees: Issuers will no longer be able to charge inactivity fees or extra charges for people who don’t spend a certain amount each year, effective August 22. However, some issuers are charging an annual fee that’s waived if cardholders reach a certain spending threshold.
Advice: Watch out for conditional annual fees.
*

Rebate Offers: Some credit cards offer refunds on finance charges when customers pay on time. However, rebate offers aren’t governed by the CARD Act, and such offers can be revoked suddenly and for any reason, leaving cardholders stuck with higher charges.
Advice: Rebates may translate to real savings in finance charges.

Source: The Wall Street Journal




Contact me, Marianne Blackstone Tabner

your local real estate expert,

for information about what's going on in our area.

Marianne Blackstone Tabner
REALTOR, CBR, GREEN
Mbtabner@kw.com
www.FineHomesLandAndSea.com
www.MBThomeTeam.com
Keller Williams Realty
200 Baker Ave, Suite 205
Concord, MA 01742
Cell: 978-621-8028
Fax: 978-759-0588







Newsletter Contents

1. Market Update

2. Interest Rates

2. Video

3. Topics for Owners, Buyers & Sellers


Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report.
The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources. You should not treat any opinion expressed on This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Keller Williams Realty, Inc., does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.

Real Estate News

This Month in Real Estate
July 2010

...............................................................................................................................................

Commentary

The U.S. housing market continues to benefit from the tax credit: home prices and sales remain above year-ago levels. As the summer progresses, however, the positive impact of government stimulus will wind down. Experts point to improved stability as a sign the market can likely hold its ground without further support from the government. However, economists indicate that the key for the housing market through the end of 2010 will be job growth and a manageable level of distressed properties.

The economy continues its journey to recovery with two steps forward and one step back, but the ground lost during the recession was great and the progress so far should be celebrated. The road to this particular recovery has been expected to be more prolonged than many previous recovery periods. Consumer confidence lowered from its high in May primarily due to a disappointing employment report, while the swelling federal deficit has also raised concern. Unmanageable debt levels have lead some European countries into their current situation, and Americans do not want to follow suit.

A job bill that would have further extended unemployment benefits has not gotten off the ground due to concerns over the deficit. Sited as a top priority for the government, a financial overhaul bill continues to proceed though Congress. The bill’s goal is to protect the financial system and the average consumer from unnecessary risk and unsound lending practices in an effort to build a stronger system for the long-term stability of the U.S. economy.

The Housing Market

Existing Home Sales

Existing home sales slowed slightly in May to 5.66 million, down 2.2% from April but up 19.2% from last May. This is the eleventh consecutive month of year-over-year increase. Lawrence Yun, NAR chief economist, attributes this to the “ongoing effects of the home buyer tax credit,” and he anticipates the same next month. In May, 46% of sales were from first-time buyers, down slightly from the previous month’s 49% but still considered high.

Median Home Price

The median price for an existing home was $179,600 in May, up 2.8% from a year ago and 4.2% from April. Distressed homes, accounting for 31% of last month’s sales, continued skewing prices downward slightly as they are usually discounted from comparable homes. Overall, prices this past year continued to show increased stability over the previous year. Vicki Cox Golder, president of NAR states, “With distressed sales at roughly the same level as a year ago, the gain in home prices is a hopeful sign that the market is in a good position to stand on its own without further government stimulus.”

Inventory

Total housing inventory declined slightly to 4.89 million in May, representing between eight and eight-and-a-half month supply of sales (if homes continue to sell at the current pace consistently and no new ones come on the market). There are about the same number of homes for sale as last year, with 1% more currently available. Although there continues to be a nice selection of available homes for buyers, the 3.4% fewer number from last month helps to further stabilize prices.

Mortgage Rates

Mortgage rates fell to a new record low in June amid a drop in consumer confidence concerning the recovery. The tone of the Federal Reserve’s latest meeting was notably tempered on the outlook for recovery, indicating that the economy is stronger than last year but there is still much ground to cover. Interest rates significantly below 5% may pique the interest of more investors.

Affordability

Affordability remains advantageous, supported by the lowest mortgage rates in decades as well as lowered home prices. The home price-to-income ratio continues to remain well below the historical average of 25%, but stabilized home prices are drawing affordability back up toward more normal levels. The ratio now stands at 15.4%.
Sources: National Association of Realtors, Freddie Mac

Government Action

Tax Credit’s Closing Deadline Extended

Home buyers who signed a contract before the end of April will now have three additional months to close and still be eligible for the homebuyer tax credit. A bill to extend the deadline to September 30 obtained congressional approval on June 30, the evening it was set to expire.

Many of these buyers are purchasing short sales which have notably slower contract-to-close time frames. A KW Research study found short sales often take twice as long to close as typical home sales.

While this does not extend the credit to any additional buyers, it is great news for those 180,000 who have not yet closed on their home sale through no fault of their own.

Source: WSJ.com

Topics For Buyers & Sellers

Real Estate Investing

The increased affordability and low interest rates may have some thinking about purchasing real estate investment properties. Here are a few key points on investing from The Millionaire Real Estate Investor:

* Criteria: Criteria are the standards that define what kind of property you are looking for. These are the things that you list when you are hunting for the next opportunity to invest in: Is it a single family or multi-family opportunity? What features or amenities does it have? What is the location? These are aspects of the property that can’t be negotiated.

* Terms: This is how you turn your opportunity into a good deal. Once the property meets your criteria, terms are the negotiable aspects of your investment, such as the offer price, the down payment, interest rates, occupancy date, and closing costs. Terms are where a great deal can be created from even the most modest criteria. They mean understanding the financial basics of a transaction, knowing which elements are flexible, being systematic about getting all you can from every deal, and also, for some, knowing when to walk away.

There are some great terms right now with record-low interest rates and discounted distressed properties. Keep in mind that the lending for investment properties has additional requirements – like cash reserves and total property limits. Talk to a professional for more information.

* Network: the people who help you find, complete, and support your real estate investments.

Contact me,

your local real estate expert,

for information about what's going on in our area.

Marianne Blackstone Tabner
REALTOR, CBR, GREEN
Mbtabner@kw.com
www.FineHomesLandAndSea.com
www.MBThomeTeam.com
Keller Williams Realty
200 Baker Ave, Suite 205
Concord, MA 01742
Cell: 978-621-8028
Fax: 978-759-0588

Update on Home Buyer Tax Credit!

Home Buyer Tax Credits

Brought to you by the National Association of Home Builders

The Home Buyer Tax Credits Have Expired

The $8,000 tax credit for first-time home buyers and the $6,500 tax credit for repeat home buyers have expired. However, service members who were on official extended duty outside of the United States for at least 90 days between Jan.1, 2009 and May 1, 2010, may qualify for a one-year extension.

For home purchases where a binding sales contract was signed by April 30, 2010, otherwise qualified buyers now have until September 30, 2010 to complete the purchase. Congress has extended the closing date to provide buyers who had binding sales contracts in place by April 30, 2010, additional time to complete their purchases.

Although the home buyer tax credits have expired, the National Association of Home Builders will continue to maintain this website as a public service.

* Frequently asked questions about the $8,000 first-time home buyer tax credit.
* Frequently asked questions about the $6,500 tax credit for repeat home buyers.
* Special rules that apply to members of the military, the foreign service and the intelligence community.

Marianne Blackstone Tabner
REALTOR, CBR, GREEN
Mbtabner@kw.com
www.FineHomesLandAndSea.com
www.MBThomeTeam.com
Keller Williams Realty
200 Baker Ave, Suite 205
Concord, MA 01742
Cell: 978-621-8028
Fax: 978-759-0588

23 Falmouth Woods Rd, East Falmouth, MA 02536 ......"Your connection To Boston NorthWest, Cape Cod and The Islands."

Market Trends and Updates!

This Month in Real Estate
June 2010

...............................................................................................................................................

Commentary

The housing sector continues to show signs of recovery. Together the tax credit (which expired at the end of April), the more upbeat consumer confidence, and favorable market conditions all contributed to bolstering April’s sales activity - with existing home sales increasing for the second straight month.

The return of buyer confidence with much of the home price correction believed to be over, encouraging economic developments and historically low mortgage rates, will provide the stepping stone for further market stabilization.

Meanwhile, stagnant job growth and elevated levels of foreclosure continue to be cause for concern. The government is now taking proactive steps to restructure the mortgage industry with risk-management measures seen by experts as a “huge cut in red tape” that would ultimately benefit consumers.

The Housing Market



Existing Home Sales

Existing home sales strengthened in April to 5.77 million, up 8.7% from March and 22.8%from last April. This is the tenth consecutive month of year-over-year increases.

According to Lawrence Yun, NAR chief economist, although part of the uptick was expected from the tax credit, there’s also been a return of buyer confidence, for those who remained on the sideline last year. The return of confidence is a result of stabilized prices, an improved economy, and continued advantageous interest rates.

In March, 49% of sales were from first-time buyers.

Median Home Price

The median price for an existing home was $173,100 in April, up 2.1% from a year ago and 4% from March. Distressed homes, accounting for a third of last month’s sales, continued skewing prices downward slightly as they typically are discounted 15% compared to typical home sales. Overall, prices this past year showed increased stability over the previous year.

Inventory

Total housing inventory rose slightly to 4.04 million in March, representing slightly less than an eight-and-a-half month supply of sales (if homes continue to sell at the current pace consistently and no new homes come on the market). Compared to the previous year, there are now 3% more homes on the market. Although this is the first rise in twenty consecutive months of decline when compared to the previous year, NAR’s chief economist believes this increase can be attributed to the summer selling season and that home prices are back on track.



Mortgage Rates

Mortgage rates dipped back below 5% this month due largely in part to the European debt crisis. As confidence in the value of the Euro eroded, more investors chose the U.S. dollar instead. With more demand for dollars, the cost of debt (interest rate) dropped. This event has also shown the global recovery is not free-and-clear of roadblocks to complete recovery. However, experts still anticipate rates will increase to between 6% and 6.5% by the end of the year. As the recovery gains increasing traction, the Federal Reserve will need to increase rates to prevent inflation.

Affordability

Affordability remains advantageous, supported by some of the lowest mortgage rates in decades as well as less expensive home prices. The home price-to-income ratio continues to remain well below the historical average of 25%. The ratio now stands at 14.9%.
Sources: National Association of Realtors, Freddie Mac

Government Action

FHA Turns to Lenders to Monitor Brokers

As the Federal Housing Administration (FHA), the government agency that insures home loans, saw its market share rise to about one-third of the mortgage market last year, up from 2% in 2006, the number of brokers seeking to arrange FHA-backed loans has mushroomed to 9,043 at the end of 2009 from 5,759 just two years earlier.

The agency, finding itself inadequately equipped to monitor its brokers, is shifting the responsibility to its lenders.

The FHA expects the new policies to result in better risk management, and the cut in red tape should produce better rates for consumers.

As of May 20, the FHA no longer certifies mortgage brokers or tracks the performance of brokers’ loans. Instead, lenders are now required to sponsor brokers and assume responsibility for loans they originate, including losses from fraud or mistakes in underwriting. In addition to revamping broker insight, the agency also beefed up oversight of its lenders by increasing net-worth requirements to $1 million from $250,000. The change is in effect for one year for existing lenders.
Source: WSJ.com

Topics For Buyers & Sellers

Myths about Distressed Properties – Debunked!

Distressed properties – foreclosures and short sales alike – represent potentially great value for prospective buyers. However, common misconceptions about the time and money investment involved with buying such properties may keep many from inquiring further into this market. KW Research survey findings, taken from more than 2,500 KW associate respondents who have worked with distressed properties, can help steer clear of concerns as you make your way to homeownership.


Buyer Concern Research Found



It’s going to take forever to find one I want.


3 out of 5 REO buyers and 1 in every 2 short sale buyers spent less than one month searching for a home before writing an offer.

How many offers do I have to write before one gets accepted? 10? 20?


7 out of 10 distressed property buyers wrote three or fewer offers before one was accepted.

I know I am getting a good deal but will the cost of repairs eat up the savings?


Half of REO buyers and almost one-third of short sale buyers spent less than $5,000 in repairs.






Contact me,

your local real estate expert,

for information about what's going on in our area.

Don't forget to check out this month's video:



Newsletter Contents

1. Commentary

2. The Housing Market

3. Government Action

4. Topics for Buyers
and Sellers



Brought to you by KW Research. For additional graphs, please see the This Month in Real Estate PowerPoint Report.
In an effort to reduce the impact on the environment, This Month in Real Estate Report is available in email newsletter format.
Please consider the environment before printing.

Marianne Blackstone Tabner
REALTOR, CBR, GREEN
Mbtabner@kw.com
www.FineHomesLandAndSea.com
www.MBThomeTeam.com
Keller Williams Realty
200 Baker Ave, Suite 205
Concord, MA 01742
Cell: 978-621-8028
Fax: 978-759-0588

Check Out My Blog!

http://mbtabner.blogspot.com/

23 Falmouth Woods Rd, East Falmouth, MA 02536 ......"Your connection To Boston NorthWest, Cape Cod and The Islands."

Real Estate Growing Slowly But Steadily.

This Month in Real Estate
May 2010

...............................................................................................................................................

Commentary

The economic recovery continues gaining traction slowly but steadily. First quarter GDP, the key measure of the economy, came in at a positive 3.2 percent - an indicator that we have arrived, at last, at a sustainable recovery. However, this recovery is subdued compared to previous recessions. Without a higher upswing in GDP, businesses will continue to add jobs slowly. The positive news of sustainable economic growth is tempered by the longer-than-normal time frame it will take to recoup job losses.

High unemployment and elevated levels of foreclosure and distressed homeowners continue to be two of the biggest factors in preventing a robust recovery. The government has turned its attention to matters to help bolster the economy including unemployment and financial reform. The latter is currently working its way through debate in Congress. The government’s attentive attitude toward these obstacles is seen as a positive sign by industry and economic experts.



The Housing Market



Existing Home Sales

Existing home sales strengthened in March to 5.35 million, up 6.5 percent from February and 16 percent from last March. This is the ninth consecutive month of year-over-year increases. According to Lawrence Yun, NAR chief economist, the “home-buyer tax credit has been a resounding success,” increasing demand and stabilizing the market. In March, 44 percent of sales were from first-time buyers.

Median Home Price

The median price for an existing home was $170,700 in March, up 0.4 percent from a year ago and 3.6 percent from February. Distressed homes, accounting for 35 percent of last month’s sales, continued skewing prices downward slightly as they typically are discounted 15 percent compared to nondistressed homes. “Foreclosures have been feeding into the inventory pipeline at a fairly steady pace and are being absorbed manageably,” said NAR’s chief economist.



Inventory

Total housing inventory rose slightly to 3.58 million in March, representing an eight month supply of sales (if homes continue to sell at the current pace consistently and no new homes come on the market). Compared to the previous year, there are now 1.8 percent fewer homes on the market. This is the twentieth consistent month of inventory decline when compared to the previous year- one of several indicators that the market will likely “bottom out” in the next few months, according to NAR.

Mortgage Rates

Although mortgage rates continue to hover close to 5 percent, experts anticipate rates will increase to between 6 and 6.5 percent by the end of the year, since the Federal Reserve will need to raise them as the recovery gains traction to prevent inflation.



Affordability

Affordability remains near record levels, supported by the lowest mortgage rates in decades, low home prices, and the first-time home buyer tax credit. The home price-to-income ratio continues to remain well below the historical average of 25 percent. The ratio now stands at 14.7 percent.
Sources: National Association of Realtors, Freddie Mac

Government Action

Fannie Mae Short-Sale Policy Change

Fannie Mae promotes short sales over foreclosures by shortening the amount of time that homeowners going through a short sale will have to wait before applying for a mortgage again. Fannie cut the length of time in half from four to two years.

Spokespersons communicated that the recession is not a “get out of jail free card” for homeowners who owe more than their home is worth. However, they acknowledged those who have had extenuating circumstances, such as a job loss, but are otherwise solid applicants should not be prevented from owning a home once their situation proves stable.

Homeowners will need to focus on rebuilding their credit during the waiting period.
Source: WSJ.com

Topics For Buyers & Sellers

Summer Maintenance Tips

Summer is almost here! Below are some summer home-maintenance tips to help protect your investment.

1. Caulk exterior joints around windows and doors to help lower cooling bills.
2. Clean lint from the entire clothes dryer vent system, from the dryer to the exterior vent cap. Lint is flammable and poses a fire risk.
3. Repair cracks in concrete patios and driveways. For cracks less than 1/4" wide, apply concrete caulk. For larger cracks, use concrete patch for caulk.
4. Wash the exterior of your house using ordinary garden-hose pressure and a mild detergent.
5. Clean and seal your porch or deck.





Contact me,

your local real estate expert,

for information about what's going on in our area.





Newsletter Contents

1. Commentary

2. The Housing Market

3. Government Action

4. Topics for Buyers
and Sellers


Keller Williams Realty
200 Baker Ave, Suite 205
Concord, MA 01742
Cell: 978-621-8028
Fax: 978-759-0588

23 Falmouth Woods Rd, East Falmouth, MA 02536 ......"Your connection To Boston NorthWest, Cape Cod and The Islands."

Housing Market- Update April

This Month in Real Estate
April 2010

...............................................................................................................................................

Commentary

The economic recovery continues to slowly but steadily deepen its roots. Consumer sentiment ticked up in March and it appears businesses are feeling more positive as well. According to a CEO Economic Outlook Survey, America’s top CEOs are expecting an increase in sales, along with increased or stabilized capital spending and employment.

Over the past several months, the hot topic of health care reform took much of Congress’s attention. Now, with the bill passed into law, the government is turning its attention to other matters to help bolster the economy including the job bill and financial reform.

High unemployment and elevated levels of foreclosures and distressed homeowners continue to be two of the biggest factors in preventing a robust recovery. The government’s attentive attitude toward these obstacles is seen as a positive sign by industry and economic experts.



The Housing Market


Existing Home Sales

Existing home sales softened in February. According to Lawrence Yun, NAR chief economist, the widespread winter storms during the month may have masked underlying demand as “buyers couldn’t get out to look at homes in some areas and that should negatively impact near-term contract activity.” February sales of 5.02 million remained 7 percent above the 4.69 million-units last year.



Median Home Price

The median price for an existing home was $165,100 in February, a 1.8 percent drop from February 2009. Distressed homes, which accounted for 35 percent of sales last month, continued to skew prices downward as they typically were discounted in comparison with non-distressed homes.



Inventory

Total housing inventory rose 9.5 percent to 3.59 million, representing an 8.6-month supply at the current sales pace. Compared to the previous year, there were 5.5 percent fewer homes on the market.

Mortgage Rates

Mortgage rates dipped to 4.99 percent in February from 5.03 percent in January. During the first week of April, rates crossed the 5 percent threshold but still remained near historically low levels. While the full effect of the Federal Reserve mortgage-backed securities purchase program’s expiration at the end of March is yet to be seen, the Fed echoed its accommodating policy to support the economy.



Affordability

Affordability remains at record levels, supported by the lowest mortgage rates in decades, low home prices, and the first-time home buyer tax credit. The home price-to-income ratio continues to remain well below the historical average of 25 percent. The ratio now stands at 14.2 percent.

Sources: National Association of Realtors, Freddie Mac

Government Action

Mortgage Relief for Unemployed

Attempting to overhaul its foreclosure prevention program, the Obama administration took noteworthy steps to help the unemployed stay current on their mortgage through tough times.

While the trouble in the housing market stemmed originally started with loose lending practices, high unemployment and underwater homeowners are now the major factors contributing to foreclosure.

The program will now:

* Require lenders to “slash” payments for the unemployed for 3-6 months. In some cases, payments could be deferred entirely.
* Cut payments to at least 31 percent of previous income, about the same amount that unemployment insurance pays.
* Become effective over the next 6 months.
* Not require new taxpayer funds. The program has only used a
small portion of its $75 billion allocation.


Source: The Washington Post



Helping Underwater Homeowners



Underwater borrowers are one of the major driving forces behind foreclosure. It’s estimated that one in four homeowners owes more than their home is worth. Economists categorize these borrowers as “high risk” because they can’t sell or refinance.

The government is taking the following steps to address underwater borrowers:

1. Principal Reduction. Lenders will be asked to reduce the principal loan balance if it is 15 percent or greater than what the home is worth. This will only be available to borrowers who are current on their mortgage payments and they will need to stay current to “earn” the full reduction over three years.
2. FHA Refinancing. The Federal Housing Administration (FHA) offers refinancing alternatives for borrowers who are underwater and offering incentives for lenders who reduce the principal on primary mortgages by at least 10 percent.
3. Second Mortgages. The government will double the incentive amount paid to lenders who help modify second mortgages. Half of all troubled homeowners have second mortgages, which have been an obstacle in providing modifications.
4. Short Sales. Incentives to lenders who help troubled borrowers that don’t qualify for the program, most commonly a short sale, have been increased.

Source: The Washington Post

Topics For Buyers & Sellers

Energy Efficient Tax Tips

Three Things You Need to Know About Home Improvements to Help Slash Energy Bills and 2010 Taxes

1. Simple qualifying improvements include increasing insulation or insulating items such as door and windows, roofing, skylights, etc. These qualify for a 30 percent credit on the cost of the item, not installation, up to a maximum credit cap of $1,500.
2. Certain big-ticket items have no maximum credit cap. The credit is still 30 percent of the cost of the item. These items include furnace, air conditioning, tankless water heater, heat pump, geothermal system, solar or wind installation.
3. It’s a tax credit, not a deduction. That means it reduces the actual taxes you owe, not your taxable income. Use IRS Form 5695, and hang onto receipts and product labels.



Don’t forget to check your state and local area for additional incentives.

For more info on the federal tax credit, check out: EnergyStar.gov and NAHB.org/efficiencytaxcredit.




Contact me,

your local real estate expert,

for information about what's going on in our area.





Newsletter Contents

1. Commentary

2. The Housing Market

3. Government Action

4. Topics for Buyers
and Sellers



For a more detailed report with additional graphs and government action, please see the This Month in Real Estate PowerPoint Report.

In an effort to reduce the impact on the environment, This Month in Real Estate PowerPoint Report is now also available in email newsletter format. Please consider the environment before printing.

The Housing Market!

This Month in Real Estate
March 2010

...............................................................................................................................................

Commentary

As the market continues to show shoots of recovery, experts believe that the roots will continue to grow. In his annual letter to the shareholders of Berkshire Hathaway, Warren Buffett said, “Within a year or so, residential housing problems should largely be behind us.”

After a steep run-up in prices during the first half of the decade, home values have readjusted back to normalized levels. Fixed mortgage rates are sitting near record lows and the number of homes available for sale is providing home buyers with more options. Also encouraging are indications that the high end of the housing market could begin moving again as luxury financing becomes more readily available.

Despite high unemployment and looming foreclosures, experts maintain their expectations that the economy will grow in 2010, while the government carries on its search for solutions to help both troubled homeowners and the unemployed.



The Housing Market



Existing Home Sales

Existing home sales slowed in January. According to Lawrence Yun, NAR chief economist, this is mainly due to the lack of urgency with the extension and expansion of the first-time buyer tax credit in November. January sales of 5.05 million remain 12 percent above the 4.53 million-unit level last year.

Median Home Price

Existing-home price was $164,700 in January, 3.4 percent below December and unchanged from January 2009. Distressed homes, which accounted for 38 percent of sales last month, continue to skew prices downward as they typically are discounted in comparison with traditional homes.

Inventory

The supply of homes continued to shrink, falling 0.5 percent to 3.27 million, representing a 7.8-month supply at the current sales pace. Compared to a year ago, there are now 10 percent fewer homes on the market. This is the lowest level of competing homes on the market since March 2006.

Mortgage Rates

Mortgage rates edged above the 5 percent threshold during the week of February 25, but remained near historically low levels. As the Federal Reserve mortgage-backed securities purchase program is scheduled to run out at the end of March, the Fed has held the door open to extending it if the economy weakens.

Affordability

Affordability remains at record levels, supported by the lowest mortgage rates in decades, low home prices, as well as the first-time buyer tax credit. So far this year, the home price-to-income ratio has fallen well below the historical average of 25 percent. The ratio now stands at 14.1 percent.


Sources: National Association of Realtors, Freddie Mac

Government Action

Jumbo Mortgages Begin to Thaw



The cost of jumbo loans, often used to purchase luxury homes, shot up during the financial crisis because lenders steered clear of anything that could be considered somewhat risky. Plus jumbo loans are too large for the government to support through the Federal Housing Administration, Fannie Mae, or Freddie Mac.

The good news: The jumbo loan markets are beginning to unfreeze and return to normal.

The difference between interest rates on conventional loans and jumbo loans has decreased from higher levels seen last year.



In some cases, the down payment requirements are easing as well, but they often still depend on the level of borrowing – the more the mortgage, the higher the down payment percentage. In New York, mortgage professionals report the following common down payments:



Borrowers will still need a good credit score, typically at least 700, evidence of high income, and a sizable bank account.


Sources: Los Angeles Times, Inman News



Topics For Buyers & Sellers

2009 Tax Tips

Tax time is coming up. Don’t forget about the following benefits in 2009 for homeowners. What’s deductable in itemized deductions for homeowners?

1. Mortgage Interest

2. Points - paid at closing if you purchased or possibly if you refinanced this year

3. Mortgage Insurance Premiums

4. Property Tax

5. Energy Efficiency Credits - see IRS Form 5695 for qualifying projects

6. Home Buyer Tax Credit - see IRS Form 5405 to claim your credit if you qualify






Contact me,

your local real estate expert, Marianne Blackstone Tabner (978-621-8028)

for information about what's going on in our area.





Newsletter Contents

1. Commentary

2. The Housing Market

3. Government Action

4. Topics for Buyers
and Sellers



For a more detailed report with additional graphs and government action, please see the This Month in Real Estate PowerPoint Report.

* $729,750 is the upper limit in the most expensive areas. Limits vary depending on median home prices in local areas. ** Based on the week of February 25, 2010. ***According to Bank of America’s Jeffrey Appel in Inman News.

New Smoke Detector Requirements!

Marianne Blackstone Tabner
REALTOR, CBR, GREEN
Mbtabner@kw.com
www.FineHomesLandAndSea.com
www.MBThomeTeam.com
Keller Williams Realty
200 Baker Ave, Suite 205
Concord, MA 01742
Cell: 978-621-8028
Fax: 978-759-0588

23 Falmouth Woods Rd, East Falmouth, MA 02536 ......"Your connection To Boston NorthWest, Cape Cod and The Islands."


On April 5, 2010, a significant change in the Massachusetts’ smoke detector requirements will become effective for all residences subject to MGL c. 148, s. 26F upon sale or

transfer.

Following the links to the changes.

Consumer Guide Smoke Detector Requirements:

http://www.mass.gov/Eeops/docs/dfs/osfm/pubed/flyers/consumers_guide_w_sell_1_and_2_fam.pdf

New Smoke Detector Requirements:

http://www.mass.gov/?pageID=eopsterminal&L=6&L0=Home&L1=Public+Safety+Agencies&L2=Massachusetts+Department+of+Fire+Services&L3=Department+of+Fire+Services&L4=Office+of+the+State+Fire+Marshal&L5=Fire+Prevention&sid=Eeops&b=terminalcontent&f=dfs_osfm_fire_prevention_smoke_alarm&csid=Eeops

Demand is up, Supply is Down!

For sale, but not for long

Demand is up, supply is down, and time is short for hopeful Mass. home buyers seeking tax credit

By Jenifer B. McKim Globe Staff / February 13, 2010

Karen Daly headed out Sunday to tour a renovated Natick house, confident she would be one of the few home hunters on a cold afternoon during which people were prepping for Super Bowl parties.

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But when Daly arrived at the three-bedroom, $449,000 Cape, she found herself among a half-dozen other disappointed prospective buyers who learned that the seller had already accepted an offer. It wasn’t Daly’s first real estate letdown. Last month, she bid more than $20,000 above the asking price for a house in Framingham -- and lost out.

“If you are a buyer, you have to be very decisive, you can’t hesitate,’’ said Daly, 55, who sold her house in two days last summer and has been renting in Newton. “You are looking at very low inventory and very steep competition.’’

After years of waiting on the real estate sidelines, many are ready to buy a home, hoping to take advantage of depressed prices, low interest rates, and a federal tax credit that expires this summer. But many would-be buyers are facing unexpected concerns: not enough homes for sale and high demand for many that are available. Properties below $600,000 are hardest to find, and the most desirable of those, in good condition and reasonably priced, are generating multiple bids within days of going on the market, real estate agents and buyers say.

Unlike other parts of the country, Massachusetts did not overbuild during the housing boom. While sales have been on the increase since July, the number of single-family homes on the market fell to 21,743 in December, marking 21 consecutive months of inventory decline compared with the same month a year before, according to the Massachusetts Association of Realtors. December’s figure was a nine-year low for the month.

“You have a fairly perfect storm, increased demand and decreased supply,’’ said Alex Coon, a Boston manager for Redfin, an online real estate brokerage. “You can find people out there who are getting frustrated.’’

The buying intensity is a shock to people who have been hearing for years about the Massachusetts housing slump. Home values have dropped by about 15.6 percent since 2005, according to the S&P/Case-Shiller Home Prices Indices.

Lily Robles and her husband, Mike Brink, were stunned when their offer on a $469,000 ranch in West Roxbury last week was trumped by a buyer willing to pay more than the asking price on the first day it was shown. “It is kind of crazy that you don’t have even one day to think about it,’’ said Robles. “It was supposed to be a buyer’s market.’’

For years, real estate agents have tried to convince prospective buyers to sign deals rather than wait to see if prices slide even lower. But now that many buyers seem to be gaining confidence in the market, sellers are in short supply. That’s because homeowners who don’t need to move are waiting for the market to turn and drive up prices.

Those biding their time include Andrew Syiek, 50, and his partner, Thomas Cantara, 49, who have considered moving but don’t want to take a loss on their Leominster home. They purchased the Colonial-style house for $447,000 in 2005 and invested more than $100,000 in a massive overhaul, including a new kitchen and two new bathrooms. “We’d be foolish to move now,’’ Syiek said. “People aren’t moving because they’ll take huge hits.’’

Prospective buyers, however, are motivated by the federal tax credit, which was extended and expanded last year to include homeowners as well as first-time buyers. To qualify, buyers must enter into a deal to purchase a home before May 1 and complete all the paperwork before July 1.

Buyers also are spurred by worries that interest rates, which have been hovering at about 5 percent for a 30-year fixed mortgage, will increase this spring after the Federal Reserve halts its purchase of mortgage-backed securities. In addition, there are signs the state’s housing market is on the mend, meaning prices may not go any lower. Home values in the Boston area have increased 5.6 percent since last March, according to Case-Shiller. Sales have increased for six months in a row, compared with the same month a year before, according to Warren Group, a private company that tracks local real estate.

John Neale, a partner with Sprogis and Neale Real Estate in Boston, is concerned that inventory could continue to dwindle. There were 781 condominiums available for sale in downtown Boston in December, an eight-year low, according to the Listing Information Network, a company that tracks the downtown condo market. He said many baby boomers and young families are choosing to stay in the city. That, combined with the low number of construction projects in the pipeline, means “it is only going to get worse,’’ Neale said.

For those shopping at the higher end of the market, selection remains more plentiful. John Prescott, vice president at Century 21 Commonwealth in Wellesley, said more expensive properties -- more than $800,000 in Natick and $1.5 million in Wellesley -- can linger for months. Sellers often have lofty notions about what their homes are worth, he said.

Some sellers are getting a jump-start on the traditional spring selling season by listing their homes in hopes of attracting time-pressed buyers. But there are not enough of them to satisfy real estate agents, who are trying to grow their listings by sending fliers and making phone calls, instead of waiting for business to come to them.

Jan Crosby, a real estate agent with RE/MAX First Realty in Newton, said she has clients who listed their West Roxbury home last week and were thrilled to accept an offer above the $469,000 asking price on the first day it was shown. Crosby attributed the quick deal to a fair list price and lack of competition in the neighborhood. “Inventory that is out there has been kicking around for a while and it is overpriced and unrealistic,’’ she said. “The motivated buyers are out now.’’

But for how long? Kevin Sears, president of the Massachusetts Association of Realtors, said he is warning potential sellers that interest could wane by summer, when the tax credit disappears and the threat of higher mortgage rates starts to loom larger. “We are going to have a flurry of activity in the spring,’’ said Sears. “What is going to happen after that is anybody’s guess.’’

Jenifer B. McKim can be reached at jmckim@globe.com.

© Copyright 2010 Globe Newspaper Company.

Marianne Blackstone Tabner
REALTOR, CBR, GREEN
Mbtabner@kw.com
www.FineHomesLandAndSea.com
www.MBThomeTeam.com
Keller Williams Realty
200 Baker Ave, Suite 205
Concord, MA 01742
Cell: 978-621-8028
Fax: 978-759-0588

23 Falmouth Woods Rd, East Falmouth, MA 02536 ......"Your connection To Boston NorthWest, Cape Cod and The Islands."

http://mbtabner.blogspot.com/

http://mbtabner.blogspot.com/

Housing Market Recovery

This Month in Real Estate February 2010 ............................................................................................................................................... Commentary Small steps to economic recovery continued last month. Among the positive readings was the report of a third quarter GDP growth rate of 2.8 percent, which followed four consecutive quarterly declines. This advance comes in well ahead of that of our Canadian neighbors, whose economy was once anticipated to be the first country out of recession, and by significant margin. Canada posted marginal 0.4 percent growth. Unemployment fell in November for the first time since April 2008. A strong rebound in home sales activity from year ago levels also points to a firmer stabilization. With the extension of the $8,000 federal housing tax credit into spring 2010, first-time buyers will now have an additional few months to purchase their dream homes. Expansion of the income restrictions now gives possibilities for higher earners to participate too. And the $6,500 tax credit now available to established homeowners with five consecutive years or more in their homes broadens the opportunity landscape. This in turn will allow the housing market more time to find a more solid footing on a sustainable recovery. Although economists continue to debate the overall shape of the recovery, it is widely agreed that the U.S. economy will take a long time to rebound. Unemployment is expected to remain high for several quarters and the number of underemployed is expected by some economists to remain a drag on growth prospects. On the brighter side, according to some economists, a slow and steady growth will likely fair better for the long-term well-being of the economy. Slower, sustained growth can help prevent dangerous asset bubbles, like the recent housing and technology bubbles, from growing and bursting. The Housing Market Existing Home Sales - Up 24% from last year Existing home sales recorded another strong gain in October with many buyers rushing to beat the deadline for the first-time buyer tax credit scheduled to expire at the end of November. Sales surged 10.1 percent to 6.1 million units over September sales of 5.54 million and are 23.5 percent above the 4.94 million-unit level seen last year. Sales activity is at the highest level since February 2007 when it reached 6.55 million. Median Home Price - Very favorable Low home prices are contributing to extremely favorable affordability conditions. Existing-home price was $173,100 in October, 5 percent higher from its low in January but still 7.1 percent below October 2008. Distressed properties, which accounted for 30 percent of all transactions in October, continue to hold down the median home price, as they typically sell for 15 to 20 percent less than traditional homes. Inventory - Lowest level in more than 2.5 years “We are getting closer to a general balance between buyers and sellers,” according to Lawrence Yun, NAR chief economist. The supply of homes is now at the lowest level in more than two and a half years. Total housing inventory at the end of October fell 3.7 percent to 3.57 million existing homes available for sale, representing a seven-month supply at the current sales pace, down from September’s eight-month supply. Compared to a year ago, there are now 15 percent fewer homes on the market. Mortgage Rates – Back at 4.78% Remaining at attractive levels for people looking to buy a home or refinance, historically low interest rates are boosting the market. Rates for 30-year fixed loans fell to 4.95 percent in October from 5.06 percent the month before. During the week ended November 25, rates again dropped to the low 4.78 percent reached in the spring. As the economy enters its recovery phase and concerns over inflation come back, mortgage rates are expected to go up. Affordability – Best since 1970s Unprecedented interest rates, low home prices, as well as the first-time buyer tax credit are lifting the housing market. All these factors combined are “adding to the buying power of the typical family, with affordability conditions this year at the highest on record dating back to 1970,” according to Lawrence Yun, NAR chief economist. So far this year, the home price-to-income ratio has fallen well below the historical average of 25 percent. The ratio now stands at 15 percent. Sources: National Association of Realtors, Freddie Mac Government Action New Fannie Mae Policies "First Look" In many markets dominated by distressed properties, buyers jumped off the fence in droves and as a result the number of homes for sale in the first tier of the market decreased significantly. When a new foreclosure becomes available for sale, it often is snapped up by investors with cash on hand, leaving the average home buyer looking for a place to live out of luck. Fannie Mae introduced a new “First Look” initiative to address this and aid in the stabilization of neighborhoods. During the first 15 days a Fannie Mae REO is on the market, only buyers who will live in the home and public entities committed to the best interests of the community may purchase it. Buyers will have 45 days to close, up from 30 days. Earnest money requirement may be reduced. This will hopefully give the average home buyer a greater chance of purchasing foreclosures and provide support to hard-hit neighborhoods, because owner-occupants are more invested in the long-term vitality of a community whereas investors typically are more invested in their monetary return from the property. Increased Credit Scores Fannie Mae is raising its minimum credit score from 580 to 620. This risk management measure will help protect Fannie Mae from future defaults and foreclosure by raising their standard and accepting less risky loans. While risk management is a sound and healthy approach for an entity that the economy depends on, this underscores the importance that potential home buyers check their credit report early in the process, allowing more time to clear up any errors. Earlier this year, Experian, one of three major credit-reporting bureaus, began exclusively providing complete credit report information when purchased directly from Experian or obtained from the government annual credit report. Source: National Association of Realtors FHA Signals Efforts to Manage Risk In an effort to secure its financial health, the Federal Housing Administration plans to require borrowers to have more “skin in the game” soon. Over the past three years, FHA’s market share has boomed from about 2 percent of all new loans to about 30 percent of all new loans this year and 20 percent of refinances. The escalading volume that the administration is currently handling calls for stricter requirements as evidenced by FHA’s capital ratios falling to nearly 0.5 percent well below the minimum of 2 percent. The agency is still analyzing the levels and time frames it wishes to tighten its standards but they expect to: Increase minimum down payments Increase minimum credit scores Increase insurance premiums Lower the amount of seller concessions As one of the major players in the mortgage market, the health of FHA is imperative to the housing market and flow of credit to home buyers, as well as to the health of the overall economy. Taking measures to safeguard the agency from needing a government tax payer-funded bailout is a notable risk management measure. According to a Keller Williams research study, the typical first-time buyer put down 3.5 percent this year. Those who want to take advantage of the tax credit before the April 30 contract, June 30 closing deadline may want to beef up their savings and check their credit report now in anticipation of any changes. Sources: National Association of Realtors, KW Research First Time Home Buyer Survey Topics For Buyers & Sellers First Time & Distressed Property Home Buyers What are other first time buyers doing? The tax credit extension and expansion in November has fueled new discussion about home buyers and the housing market in 2010. Here’s a look at first-time buyers in 2009. The median age is 28, significantly down from where it was in 2005 at 32. Location or Neighborhood was the No. 1 “must-have” for 36% of buyers. 2 out of 3 sellers paid at least part of the buyer’s closing costs. 76% used their own savings for the down payment. 1 in 4 had help from their family for the down payment. As elevated levels of distressed properties are expected to continue for the next few years, here is a glimpse of buying a distressed property: 27% of foreclosures* were purchased by investors. 47% of distressed* properties were purchased by first-time buyers. 89% of those first time buyers that purchased a distressed property were motivated by the $8,000 tax credit. 7 in 10 agents have seen an increase in multiple offers. Approximately 3 out of 5 agents discuss the differences between buying distressed and traditional properties at the buyer consultation. * Distressed – Short Sale and REO, Foreclosure – REO Only

Contact me, Marianne Blackstone Tabner your local real estate expert, for information about what's going on in our area. Newsletter Contents 1. Commentary 2. The Housing Market 3. Government Action 4. Topics for Buyers and Sellers

Tax Credit Extension

First Time Home Buyers

The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence.

The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns. The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.

Move Up/Repeat Home Buyers

The Worker, Homeownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).

If you would like to see more detailed information about the tax credit find all the information on my website at http://www.finehomeslandandsea.com and on the right hand side under "Helpful Links" click on Tax Credit.

Marianne Blackstone Tabner

REALTOR, CBR, GREEN

Mbtabner@kw.com
www.FineHomesLandAndSea.com
www.MBThomeTeam.com
Keller Williams Realty
200 Baker Ave, Suite 205 Concord, MA 01742
Cell: 978-621-8028 Fax: 978-759-0588