Anna Stout

According to the National Association of REALTORS® Government Affairs Division, Congress has extended and expanded the First time homebuyer tax credit. The following chart is an overview or you can listen to the podcast:

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First time homebuyer home search

Westfield Market Update - October

What's the housing market look like in Westfield IN? According to the Metropolitan Board of Realtors, there were 483 single family homes and condominiums on the market in Westfield, IN., at the end of October, which is a 16% decrease from the same period last year. In October of 2008, there were 573 active listings. The average list price in the area was $245,873 and the average sales price was $234,565.

During the month of October there were 59 homes that sold averaging 95 days on the market, a slowdown from October 08, which averaged 68 days on the market. Recent sales may be indicators of perceived value. Additionally, there were 40 pended sales or homes ‘under contract' waiting completion. Sellers are receiving an average of 95.5% of list price which is slightly less than October 08. The market has slowed down, as evidenced by the number of days on the market. The following chart gives a comparison of October 2009 to October 2008:

For previous months click here

*DOM - days on market

Figures were pulled from the MLS 11/04/2009

Westfield Market Update

We keep hearing that the market is picking up in Westfield IN. Well, is it? Based on the following data on housing in Westfield, it sure looks like it. Currently, there are 309 homes on the market, ranging from $3,190,000 to $64,995. Most of the higher priced homes are located at the Bridgewater Club and Viking Meadows. So, if you want pricy in our great community, we've got pricy. On the other hand, if you are a first time homebuyer, wanting to use your $8000 tax credit, before November 30, 2009, now is the time.

Home sales increased 66% in June. WOW! Also, pended sales jumped to 78 in June from 47 in May. Pended sales are those still under contract, waiting to get to the closing table.

The average list price of homes dropped 27%, again making it a great opportunity for first time homebuyers wanting a home in Westfield's community.

Westfield Neighborhoods

The average sales price is right around the national average of $181,000, according to CNBC Mortgage and Real Estate News. Days on the market also had a 32% decrease, meaning inventory is beginning to move. These are all indicators that the market is turning around in Westfield and a great time to experience the benefits of homeownership, especially if it's your first!

Source: Metropolitan Indianapolis Board of Realtors 7/25/09

People buy homes for many reasons; some psychological and some financial. So, let's talk about each. We've all been told since childhood that owning a home is part of the American Dream. And guess what? This just might be your chance to join millions who had the same dream. There's nothing like being in control of your surroundings which can give a sense of emotional well being. Autonomy and pride of ownership are two examples of how homeownership can be psychologically fulfilling.

Autonomy

Although you can't put it all in words, there's something special about owning your own home. Maybe it's because you have a certain amount of freedom that you don't have if you rent. For instance, if you want to paint your walls a certain color or landscape the way you prefer, you don't have to get permission from anyone. Notice I said a certain amount. If you choose to live in a housing addition in a Westfield neighborhood, you'll have to abide by the rules of the Homeowner's Association. These are rules that are spelled out in the covenants and restrictions for a particular community such as requirements associated with having pets or how high a fence can be built.

Pride of Ownership

Rather you live in a neighborhood that has an (HOA) homeowner's association, or not, owning a home can be very gratifying. Pride of ownership is a term that is often used to describe the positive feelings you'll experience as a result of maintaining your property well. As a proud owner, financial benefits are also part of the package.

Tax deductions and credits

Uncle Sam allows you to deduct property taxes, as well as, the interest charged on your mortgage loan. Interest is usually the largest portion of the loan in its earlier years. This is one of the few interest deductions still allowable. Also an $8,000 tax credit is being offered to first time home buyers who purchase a home on or after January 1, 2009 and before December 1, 2009. A tax credit is a dollar-for dollar reduction in what the taxpayer owes. The new law also defines "first-time home- buyer" as a buyer who has not owned a principal residence during the three-year period prior to purchase. For married taxpayers, the law tests the home history of both the home buyer and his/her spouse. If one does not qualify, then the married couple does not qualify.

Equity:

Equity is the value in your home above the total amount of the liens against your home. For instance, if you bought a house in the Westfield Carmel area and owe $200,000 but it is worth $250,000, you have $50,000 of equity. This can also serve as a forced savings account, depending on the market. Communities with a strong job market and close proximity to business centers will usually have real estate that's in demand. Therefore in an environment where homes appreciate, you can realize the gain and use the funds for whatever you choose.

So, why wait? If you are considering buying a home, now may be your time!

Charles McMillen, President of National Association of Realtors orchestrated an outstanding summit in Washington DC with members of Congress and the Senate on real estate and our current economic situation. He outlined the four goals to be addressed:

1. The first goal was to share ideas on what can done on the public policy front to help stimulate real estate and the economy
2. To encourage more advocacy related to current issues pending in Congress
3. Generate more coalition support for key programs that will stimulate housing such as the Homebuyer's Tax Credit and mortgage interest deduction
4. Lastly to help the media to receive insight on what is happening in real estate

Issues of deregulation, the liquidity standards for bankers and the realization that conversations about the market will continue to be in flux were discussed.

Dr. Robert Reich, former US Secretary of Labor was a strong advocate of Home Buyers Tax Credit and stated that it should continue until 2010. He believes that we are coming to the bottom of the financial crisis. However, he stated the main issue is consumers. Consumers need to have higher and better purchasing power and need to be able to afford housing.

The bottom line is: there's no going back to the economy of 2002-2007. Business is not going to be done as usual. New relationships have to be formed with lenders due to the fact that half of them are out of business and there is a capitalization issue.

The first part of the summit ended with talks on the urgency of fixing the short sale process. We are all aware of the nightmare short sales present. The competitive nature of short sales serves as a hindrance to the market. For instance while several people are bidding on one home on a short sale and waiting several months for an approval, there are 4-5 other home sales being postponed. Stabilization is urgent and shorter turnover time for approval is critical.

These are all issues that we as realtors know need to be addressed and resolved. This summit brings a sense of hope that we are being heard.

View Part 1