November 2009
Monthly Archive
Posted by admin on 27 Nov 2009 9:28 am. Filed under
Idaho Home Loan.
In October, we received a pleasant surprise: home sales were higher than expected, and actually reached the highest level we’ve seen in 2.5 years. That’s right – we’ve been dealing with a slump for two and a half years now.
The rise is promising news, although convoluted by other recent news of 1 in 4 homeowners being underwater – that is, owing more on their mortgage than the current value of their home. It’s hard to make sense of all these various real estate figures, but experts seem to agree that things are moving in the right direction. As long as those 1 in 4 homeowners can continue to afford their mortgage payments and don’t need to sell anytime soon, being upside down isn’t as tragic as it could be.
One complication: If the rise in home sales is due mostly to first time buyers rushing to take advantage of the tax credit that was set to expire, we can’t count on that for a long-term solution. But it may be enough to jump start the market in the right direction, especially with the recent extension and expansion of the tax credit.
Whether or not real estate is improving is really a matter of where you live. Some markets are stronger than others. Idaho real estate, for example, is slightly lower than the national average in terms of median home value - $171,827 versus $190,781 nationally. Idaho real estate values are slightly less than they were just a year ago.
For those entering the market, it means affordability is high – especially when paired with low Idaho mortgage rates. Factor in that tax break if you qualify, and you’ve found yourself a great time to purchase your next home. If you’re an Idaho homeowner looking to sell, however, you need to be prepared to accept a selling price less than what you may have originally thought your home was worth. But as long as the value of your home is more than what you owe, you’re still in a good position.
Posted by admin on 19 Nov 2009 6:58 pm. Filed under
Idaho Home Loan.
The fourth quarter of the year is generally a very slow one in real estate. The holidays keep everyone busy, and families don’t want the stress of moving over the holiday season – or in cold weather, in some parts of the country. This year may be different, according to experts, due to the extension and expansion of the first-time homebuyer tax credit.
Under the new terms, buyers must have a sale agreement in place by April 30th, and the credit is now also available to some qualifying repeat buyers as well. The tax credit is said to have contributed significantly to new home sales over the past year, and many experts think the extension/expansion will continue to provide a boost in the fourth quarter of this year.
First time buyers who didn’t have an opportunity to take advantage of the original tax credit, but wanted to, now have a chance to continue searching for their perfect home. An influx of repeat buyers may flood the market as well, and potential buyers aren’t going to want to waste any time. Repeat buyers are often in a better position to purchase a home, because they can often obtain funds for a down payment through the sale of their existing home. This potential influx would provide a much-needed boost to the recovering, yet still struggling, real estate industry.
New and repeat home buyers have just five months to find the perfect home. Idaho real estate has plenty of fabulous homes to choose from in a variety of price ranges to suit any budget. Idaho mortgage rates, in line with national rates, recently made news for hitting the 5.00% mark yet again, so it continues to be affordable to borrow money under the current market conditions.
If you’re considering making a move, act quickly to take advantage of the expanded tax credit. It can take several months to find a home that you’re happy with, and new foreclosures continue to hit the market every day. Contact a lender from our network of Idaho mortgage lenders for a pre-approval and start your search today!
The latest reports indicate that approximately 20% of homeowners at least 60 days behind on their mortgage payments have received trial loan modifications. This figure is up from a reported 16% last month, which is moving in the right direction, but experts still say President Obama’s rescue plan hasn’t had the expected or hoped for impact on troubled homeowners.
Unfortunately, as we reported earlier, new foreclosure filings hit a record high in the third quarter. With thousands upon thousands of new foreclosures piling up, it appears as though the mortgage modification plan is failing to keep pace. Despite this, administrators claim the plan is on track to rescue up to 4 million homeowners as originally planned.
What’s to blame? Lost paperwork, incomplete paperwork, homeowners not qualifying due to too little income or too much home equity.
The continued increase in foreclosure filings seems to be contributing indirectly to low mortgage rates. Rates on some 30-year, fixed loans dipped below the 5.00% mark again within the past week, while others hover comfortably close to the coveted 5.00% mark. Idaho, in particular, was one of the top ten states for the highest rate of foreclosure filings in the third quarter, which could continue to have a positive impact on Idaho mortgage rates.
Pending home sales are also on the rise, which could help to stabilize the Idaho real estate market. The majority of states reported an increase in pending home sales for the third quarter, a trend that will continue to be fueled by the extended and expanded tax credit.
Contact one of our trusted Idaho mortgage lenders today to find out if you qualify for the extended tax credit or for more information on loan modification programs.
Posted by admin on 6 Nov 2009 11:31 am. Filed under
Idaho Home Loan.
You’ve probably heard that Congress was reviewing the possibility of extending the first time homebuyer tax credit. Yesterday, Congress approved the extension, and it’s now on its way to President Obama for his final approval. For those of you who were scurrying to find the perfect home in time to take advantage of the $8,000 gift from Uncle Sam, you now have a few more months to continue your search.
There is now a tax incentive to purchase a home through April 30, 2010, and a new incentive has been issued for buyers that aren’t first-timers: these buyers may be eligible for a tax credit of up to $6,500. First-time buyers could still be eligible for a tax credit up to $8,000. In order for existing home owners to be eligible for the credit, they must have been in their current principal place of residence for five years or more.
To take advantage of this extension, you need to have a sales agreement by the ending date of April 30th, and you have until June 30th to complete closing.
More home buyers may be eligible for this tax credit under the extension, as well. The income limits for the original credit were $75,000 for single taxpayers and $150,000 for joint taxpayers. Under the extension, income limits have been raised to $125,000 and $225,000, respectively. Idaho mortgage rates are still low, making now an ideal time to purchase Idaho real estate when combined with this generous government incentive.
Many are attributing a decrease in real estate inventory to the tax credit, and the National Association of Realtors says 1.2 million new and existing homes were sold solely as a result of the tax credit. An extension of several months will provide an incentive for those who thought they were running out of time as well as provide new opportunities and incentives for those who previously didn’t qualify. If the first round is any indication, this tax credit extension could provide a significant boost to the real estate industry.
Contact one of our trusted Idaho mortgage lenders for a pre-approval today to begin your search of the many fabulous properties currently available in Idaho real estate!
