ARE WE THERE YET?

This real estate market reminds me of those road trips we took as a family when the children were young ... always impatient and asking, "Are we there yet?" That's the question on all agents' and clients' minds ... have we hit the bottom of the market and when do we start up again?

And the best answer is ... maybe. After every downturn there is an upturn and we're more than ready for that. According to the most recent numbers, the median sales price increased nationwide in March for the second month in a row, the biggest monthly jump since June 2005. The months' supply edged up to 9.8 from 9.7 but the raw inventory actually declined for all types of homes. The Federal Housing Finance Agency also reported that home prices rose 0.7% in February, the second month in a row that prices rose putting them up 1.7% for the last two months. Again, the biggest gain since 2005. And, March New Home Sales came in at 356,000 annual rate, a small decline from February but better than expected. And, according to the same source, inventory levels continue falling, down to 46.0% from their mid-2006 peak and at the lowest level since 2002.

So, what do the numbers mean? It shows, in my opinion, that we're "bouncing along the bottom" of this housing market and I believe we're looking toward a slow recovery starting this summer. Short Sales and REO sales are now dominating the market but there are still real "Sellers" out there that need to move and have some equity positions so they can sell without having to negotiate with the bank.

As for Buyers who've been waiting for the best deals ... they are out there NOW. My serious suggestion is to get off the fence and get in the game. Interest rates may never be lower and housing prices are unbelievable. Gentlemen and Ladies ... start your engines!

Foreclosure, Deed in Lieu or Short Sale?

Foreclosure, Deed in Lieu, Short Sale ... what's the difference and what's the impact on your life and credit score?

Foreclosure is where an owner's right to their property is legally terminated, usually because of default in loan payments. Property is purchased back by the bank at a public auction held on the courthouse steps (or a sheriff's sale in some cases). The bank will usually start the bidding at the auction at the amount currently owed on the property in most cases and anyone who bids over that amount may then purchase the property. They must have financing in place and put up a security deposit and close within a specified period of time. Most states will then zero out any deficiency balance owed by the owner. A Foreclosure is usually the most devastating on a person's credit record and will negatively impact it as much as 280 points plus it will remain on the record for a longer period of time thereby crippling a person's chances of buying anything in the near future.

Deed in Lieu is where an owner can avoid the foreclosure by voluntarily surrendering their property back to the bank by signing over the deed for satisfaction of the debt. This allows the bank to take possession sooner than is possible through a foreclosure action and saves the bank the foreclosure costs. We've seen many cases of this recently where owners simply put their keys in the mailboxes and walk away; however, they must legally do this by signing off the deed and going through a paperwork process. This has less impact on the credit rating but will still cause some negative results.

Short Sale is where the owner is able to sell the home prior to the foreclosure action at an amount of money that is less than owed. There must be a negotiation with the lien holder(s) to agree to take a payoff which is less than owed and must be completed prior to the auction date on the property. Lenders, especially in this market, seem to be more agreeable to accepting a Short Sale as property values have decreased throughout the country and frequently the property is certainly worth less than owed. Snagging a Buyer that is willing to pay over value on the property at a foreclosure auction is not a frequent occurrance, so it is in the best interests of the Lender to negotiate rather than incur the foreclosure expenses. Again, this will have a negative impact on a person's credit rating but not as bad as the formal forclosure. Many real estate agents and escrow companies are well versed in how to proceed with a short sale and are willing to help as Lenders will always agree to include a commission as part of the process.

Many of our agents are well versed in how to proceed with a short sale and we encourage you to give us a call if you have any questions.

Keep This in Mind for Your 2009 Taxes

Green Tax Credits for Homeowners. That's right! There is now a $1,500 lifetime tax credit when you improve your home with energy saving improvements such as insulated windows, doors, mechanical systems and insulation. Plus you can also take a 30% tax credit for every dollar you spend on green upgrades like solar heaters, heat pumps and fuel cells.

The credits will apply through 2010 and are a great help to Homeowners who are wanting to sell and make their home more attractive to potential Buyers.

Any of our agents are willing and able to help Home Sellers make affordable and viable choices on home remodeling that will return them dollars on their sale. Call us today if you'd like a free opinion.

First Time Home Buyers $8,000 Tax Credit

If you're a first-time Home Buyer, the new Economic Stimulus Package is tailor made for you! There are a few conditions to being able to receive the tax credit and you should always consult with your Tax Professional; however, if you are a couple filing jointly and earn less than $150,000 in adjusted gross income for 2009, you may be eligible. You must find, purchase and close on the home by November 30, 2009. THE TAX CREDIT GOES AWAY ON DECEMBER 1, 2009. So get started today.

And, what a great market to find a home! Prices are low. Interest rates are at an all time low. Inventory is huge and Builders are out there offering all sorts of incentives to purchase their product. You can add upgrades at little or no additional cost and some builders are even offering to match the stimulus with an $8,000 credit toward your closing costs.

However, there are some challenges. Mortgage Companies are much more cautious about lending money and you will need to have some money for down payment plus a decent credit rating. But money is out there at unbelievable rates and worth at least trying to get pre-qualified. Call us if you need referral to a good lender and take advantage of this once-in-a-lifetime opportunity.

Enter the "Path to your Dreams" Sweepstakes

Urging everyone who is not a CENTURY 21 Real Estate Agent or living in the same home with a CENTURY 21 employee to go to the website at www.century21.com/sweepstakes and register in the "Path to your Dreams" sweepstakes. You may win $221,000 toward the home of your dreams or maybe even a $5,000 cash prize. You can enter every day up thru May 16, 2009. There's not cost or obligation and who knows ... someone has to win and it may be you! Good luck!