Senate panel OKs extension for home buyers' credit
By Alan J. Heavens
Inquirer Real Estate Writer
A Senate committee reached a compromise yesterday to extend the $8,000 tax credit for first-time home buyers, a boost the housing industry expects will help it pull out of its two-year-old downturn.
Lawmakers in Washington also added a $6,500 tax credit for other primary-home purchasers and raised the qualifying income limits to $125,000 for single taxpayers and $225,000 for joint taxpayers, housing-industry sources said.
Under the Senate panel compromise, buyers must have sales agreements in hand by April 30, but they will have until June 30 to go to settlement, the sources said. The measure still faces votes in the full Senate and the House.
The current tax credit did little for the new-home market in September, the Commerce Department reported yesterday - news that took many industry analysts by surprise. Sales fell 3.6 percent from August and 7.8 percent from September 2008.
Industry observers had expected a fifth consecutive monthly increase in new-home sales, believing that the tax incentive for qualified first-time buyers - credited with 357,000 sales of previously owned homes so far this year - would do the trick.
Thursday, October 29, 2009
Wednesday, October 28, 2009
10 inexpensive ways to add value and appeal to your home
Click on the above link for 10 great ways to improve your home without spending allot of money courtesy of the National Association of Realtors.
Wednesday, September 23, 2009
Changes in Local housing market
Local housing market improving?
September 18, 2009 by Al Harris
Move over, McMansion.
The home-building industry is starting to emerge from deep hibernation. And some builders around town say it’s the smaller homes that people will want to buy.
Between June and August, Chesterfield County issued 236 permits for single-family homes, only three less than was issued during the same three months in 2008.
That is in stark contrast to the previous three months, March through May, when activity was half of what it was in 2008, suggesting that the market might be starting to turn.
Still, for the year to date (excluding September) Chesterfield issued 456 single-family permits, compared with 691 issued through the same time last year, or a 34 percent decline.
And for the most recent months, new home permits in Chesterfield fell from 93 in July to 75 in August. Both months were better than 2008, when 77 permits were issued in July and 61 in August. That is still way off from three years ago, when 155 new home permits were issued in August 2006.
Across the river in Henrico, there were 51 single-family permits issued in August, down 29 percent from July, when 72 permits were issued.
Both months were a vast improvement from April, when only 37 were issued.
And yesterday the U.S. Department of Commerce released improved figures for the nation — in August, new construction of homes and apartments rose 1.5 percent nationwide from July, a total of 598,000 homes, the highest level in nine months.
But the construction of single-family homes fell in August, reaching a total of 479,000. Compared with last August, single-family home construction is down more than 29 percent.
So what’s behind the new activity?
David Reel, the executive vice president of the Home Building Association of Richmond, said that it got so bad it really had no where else to go but up.
“Inventory had been drawn down, nothing was being built for the longest time,” said Reel. “Eventually the supply and demand curve started catching up with itself.”
He said housing is poised to make a comeback, but he envisions major changes in how and where homes are built.
“What people will be building and developing will change dramatically,” said Reel. “You’ve got the tail end of the baby boom generation downsizing, and you have echo boomers coming in who either don’t have children may not ever have children. Both of those groups are simultaneously looking for much different housing than we have seen in the past.”
Reel anticipates a mix of housing that has smaller floor plans, single stories and locations closer to the urban core.
Vernon McClure, owner of Main Street Homes, said he is starting to see some of that shift.
“We’ve had to bring out the 2,400-square-foot plans and dust them off and not build as many of the 4,000-square-foot plans,” McClure said.
Building smaller houses has shaved about $100,000 from the average sales price of McClure’s homes. He said the demand for smaller houses is also tied to consumers being thriftier since the economic downturn began.
“Homebuyers are asking ‘Do I need five bedrooms, or is four enough?’ or thinking, ‘Maybe I don’t need a study and a living room,” McClure said.
McClure, who estimates building about 70 homes in Chesterfield this year, said several factors are leading sales including low interest rates, lower prices, and the federal $8,000 first time buyer tax credit.
The credit expires at the end of the year, McClure said about 10 percent of his homes sales this year have been driven by the tax incentive. But now that program is drawing to an end, McClure and other homebuilders are concerned that demand could fall again.
“There is concern that it may have pulled some of the demand forward. If it goes that way, we’ll hit another slow period,” said McClure.
September 18, 2009 by Al Harris
Move over, McMansion.
The home-building industry is starting to emerge from deep hibernation. And some builders around town say it’s the smaller homes that people will want to buy.
Between June and August, Chesterfield County issued 236 permits for single-family homes, only three less than was issued during the same three months in 2008.
That is in stark contrast to the previous three months, March through May, when activity was half of what it was in 2008, suggesting that the market might be starting to turn.
Still, for the year to date (excluding September) Chesterfield issued 456 single-family permits, compared with 691 issued through the same time last year, or a 34 percent decline.
And for the most recent months, new home permits in Chesterfield fell from 93 in July to 75 in August. Both months were better than 2008, when 77 permits were issued in July and 61 in August. That is still way off from three years ago, when 155 new home permits were issued in August 2006.
Across the river in Henrico, there were 51 single-family permits issued in August, down 29 percent from July, when 72 permits were issued.
Both months were a vast improvement from April, when only 37 were issued.
And yesterday the U.S. Department of Commerce released improved figures for the nation — in August, new construction of homes and apartments rose 1.5 percent nationwide from July, a total of 598,000 homes, the highest level in nine months.
But the construction of single-family homes fell in August, reaching a total of 479,000. Compared with last August, single-family home construction is down more than 29 percent.
So what’s behind the new activity?
David Reel, the executive vice president of the Home Building Association of Richmond, said that it got so bad it really had no where else to go but up.
“Inventory had been drawn down, nothing was being built for the longest time,” said Reel. “Eventually the supply and demand curve started catching up with itself.”
He said housing is poised to make a comeback, but he envisions major changes in how and where homes are built.
“What people will be building and developing will change dramatically,” said Reel. “You’ve got the tail end of the baby boom generation downsizing, and you have echo boomers coming in who either don’t have children may not ever have children. Both of those groups are simultaneously looking for much different housing than we have seen in the past.”
Reel anticipates a mix of housing that has smaller floor plans, single stories and locations closer to the urban core.
Vernon McClure, owner of Main Street Homes, said he is starting to see some of that shift.
“We’ve had to bring out the 2,400-square-foot plans and dust them off and not build as many of the 4,000-square-foot plans,” McClure said.
Building smaller houses has shaved about $100,000 from the average sales price of McClure’s homes. He said the demand for smaller houses is also tied to consumers being thriftier since the economic downturn began.
“Homebuyers are asking ‘Do I need five bedrooms, or is four enough?’ or thinking, ‘Maybe I don’t need a study and a living room,” McClure said.
McClure, who estimates building about 70 homes in Chesterfield this year, said several factors are leading sales including low interest rates, lower prices, and the federal $8,000 first time buyer tax credit.
The credit expires at the end of the year, McClure said about 10 percent of his homes sales this year have been driven by the tax incentive. But now that program is drawing to an end, McClure and other homebuilders are concerned that demand could fall again.
“There is concern that it may have pulled some of the demand forward. If it goes that way, we’ll hit another slow period,” said McClure.
Friday, September 11, 2009
Time Running Out on Buying with Federal Tax Credit
To be eligible for a tax credit of up to $8,000, first-time homebuyers have until the end of business on November 30, 2009, to close their loans. There has been discussion that some members of Congress want to extend and increase the homebuyer tax credit. It remains to be seen if an extension or enhancements will be made.
Historically, it has taken 45 to 60 days to close a loan. However, new appraisal and disclosure requirements that recently took effect may add extra time to the closing process. To be certain homebuyers can take advantage of the tax benefit – as the law stands today – interested buyers should apply for their loan no later than the beginning of October to be able to close the loan prior to the deadline.
Kerry Riley
Kerry@kerryriley.com
Historically, it has taken 45 to 60 days to close a loan. However, new appraisal and disclosure requirements that recently took effect may add extra time to the closing process. To be certain homebuyers can take advantage of the tax benefit – as the law stands today – interested buyers should apply for their loan no later than the beginning of October to be able to close the loan prior to the deadline.
Kerry Riley
Kerry@kerryriley.com
Saturday, August 15, 2009
Encouraging signs in the housing market
It's nice to finally be able to report some concrete good news about the sales trend in the housing market. The National Association of Realtors reported that there pending housing update was up for the fifth straight months in a row.
This is an index of how many homes have gone under contract in a given month. They reported a gain over the previous month's sales for five consecutive months. Just one or two months is not a reliable predictor, but five months is a solid indicator.
Inventories are still at higher levels, but the buying activity is picking up especially with first time buyers taking advantage if the $8,000 federal tax credit.
Kerryriley.com, kerry@kerryriley.com, Riley Real Estate of Richmond
This is an index of how many homes have gone under contract in a given month. They reported a gain over the previous month's sales for five consecutive months. Just one or two months is not a reliable predictor, but five months is a solid indicator.
Inventories are still at higher levels, but the buying activity is picking up especially with first time buyers taking advantage if the $8,000 federal tax credit.
Kerryriley.com, kerry@kerryriley.com, Riley Real Estate of Richmond
Monday, August 10, 2009
Buying a Condo in the Richmond Market
In the current Richmond market lenders have become more conservative in lending for condos. Most lenders are requiring a minumum of ten percent down on condo loan because of the gut of units available.
The best way to finance a condo is using an FHA loan which only requires a three and one-half percent downpayment. Not all condos are eligible for FHA. Only those that have sold over fifty percent of the units and meet other requirements are eligible.
The link below details all of the Richmond area condos that are currently eligible for an FHA loan: https://entp.hud.gov/idapp/html/condo1.cfm. Enter Richmond or any city that interests you.
Buying a home using an FHA loan is a great deal in this market. If you can put down just 3 1/2%, get the seller to pay your closing costs, and get an $ 8,000 tax credit for first time buyers (must close before 11/30/09) you could actually buy with no net cash out of pocket and own your own home instead of renting.
Kerry Riley. http://kerryriley.com/. Kerry@kerryriley.com.
The best way to finance a condo is using an FHA loan which only requires a three and one-half percent downpayment. Not all condos are eligible for FHA. Only those that have sold over fifty percent of the units and meet other requirements are eligible.
The link below details all of the Richmond area condos that are currently eligible for an FHA loan: https://entp.hud.gov/idapp/html/condo1.cfm. Enter Richmond or any city that interests you.
Buying a home using an FHA loan is a great deal in this market. If you can put down just 3 1/2%, get the seller to pay your closing costs, and get an $ 8,000 tax credit for first time buyers (must close before 11/30/09) you could actually buy with no net cash out of pocket and own your own home instead of renting.
Kerry Riley. http://kerryriley.com/. Kerry@kerryriley.com.
Wednesday, August 5, 2009
How walkable is your nieghborhood
I found this great site that was listed in the latest issue of Fanfare newsletter about Walkable Neighborhoods. I was attracted to my current neighborhood for this every reason. I drive so much as a real estate agent it's so nice to just park the car and be able to walk during my time off from work.
Check out this site http://walkscore.com to see how you address score as "walkable". Great selling point for home. Also it lists all nearby grocery stores, restaurants, coffee shops, movie theaters, schools, parks, libraries, book stores, fitness centers, drug stores, hardware stores, and clothing & music stores.
Below is an excerpt from Walkscore.com's definition of what is "walkable":
Picture a walkable neighborhood. You lose weight each time you walk to the grocery store. You stumble home from last call without waiting for a cab. You spend less money on your car—or you don't own a car. When you shop, you support your local economy. You talk to your neighbors.
What makes a neighborhood walkable?
A center: Walkable neighborhoods have a discernable center, whether it's a shopping district, a main street, or a public space.
Density: The neighborhood is compact enough for local businesses to flourish and for public transportation to run frequently.
Mixed income, mixed use: Housing is provided for everyone who works in the neighborhood: young and old, singles and families, rich and poor. Businesses and residences are located near each other.
Parks and public space: There are plenty of public places to gather and play.
Pedestrian-centric design: Buildings are placed close to the street to cater to foot traffic, with parking lots relegated to the back.
Nearby schools and workplaces: Schools and workplaces are close enough that most residents can walk from their homes.
Streets Designed for Everyone
Complete Streets are roads are designed for everyone who uses them, including bicyclists, pedestrians of all ages and abilities, and people getting on and off transit vehicles.
These streets are:
Accessible: There are wheelchair ramps, plenty of benches with shade, sidewalks on all streets, etc.
Well-connected: Streets form a connected grid that improves traffic by providing many routes to any destination.
Built for the right speed:
Lanes are narrow or traffic calming is in place to control speed.
Comfortable: Pedestrian medians at intersections, count-down crosswalk timers, bicycle lanes, protected bus shelters, etc. make the street work better for those outside of a car.
Kerry Riley can be found at www.kerryriley.com.
Check out this site http://walkscore.com to see how you address score as "walkable". Great selling point for home. Also it lists all nearby grocery stores, restaurants, coffee shops, movie theaters, schools, parks, libraries, book stores, fitness centers, drug stores, hardware stores, and clothing & music stores.
Below is an excerpt from Walkscore.com's definition of what is "walkable":
Picture a walkable neighborhood. You lose weight each time you walk to the grocery store. You stumble home from last call without waiting for a cab. You spend less money on your car—or you don't own a car. When you shop, you support your local economy. You talk to your neighbors.
What makes a neighborhood walkable?
A center: Walkable neighborhoods have a discernable center, whether it's a shopping district, a main street, or a public space.
Density: The neighborhood is compact enough for local businesses to flourish and for public transportation to run frequently.
Mixed income, mixed use: Housing is provided for everyone who works in the neighborhood: young and old, singles and families, rich and poor. Businesses and residences are located near each other.
Parks and public space: There are plenty of public places to gather and play.
Pedestrian-centric design: Buildings are placed close to the street to cater to foot traffic, with parking lots relegated to the back.
Nearby schools and workplaces: Schools and workplaces are close enough that most residents can walk from their homes.
Streets Designed for Everyone
Complete Streets are roads are designed for everyone who uses them, including bicyclists, pedestrians of all ages and abilities, and people getting on and off transit vehicles.
These streets are:
Accessible: There are wheelchair ramps, plenty of benches with shade, sidewalks on all streets, etc.
Well-connected: Streets form a connected grid that improves traffic by providing many routes to any destination.
Built for the right speed:
Lanes are narrow or traffic calming is in place to control speed.
Comfortable: Pedestrian medians at intersections, count-down crosswalk timers, bicycle lanes, protected bus shelters, etc. make the street work better for those outside of a car.
Kerry Riley can be found at www.kerryriley.com.
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