Sandra Nickel

The $8000 first-time home buyer tax credit was scheduled to expire in just a few short weeks...Nov 30, 2009. I say ‘was', because the Senate voted unanimously to extend the credit on Monday and the House of Representatives approved the extension yesterday afternoon by a vote of 403-12. The extension includes an expanded tax credit to repeat home buyers. The bill now goes to the President for his signature which is expected to happen today.

Home Buyer Tax Credit Expansion and Extension

• The $8,000 tax credit will be extended and available for first-time home buyers through May 1, 2010.
• A new $6,500 tax credit will be available for repeat buyers who purchase between December 1, 2009, and May 1, 2010. To qualify, buyers must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.
• Prospective buyers with binding contracts in place as of April 30, 2010, will be allowed an additional 60 days to complete the transaction.
• Income limits are expanded to $125,000 on a single return and $225,000 on a joint return.
• Limitation on the cost of a purchased home is $800,000.

If you know anyone looking to buy their first Montgomery home at a time when prices and interest rates are still down, or if you are thinking of buying another Montgomery home and getting the new $6,500 credit please contact me today!!

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There are 1,081 Montgomery foreclosure homes for sale with 67 new foreclosures in September 2009, down from the June 2009 high of 242 new foreclosed homes. The average selling price of a Montgomery home is $180,122 and the average foreclosure selling price is $111,614, a $68,679 savings, according to RealtyTrac.com.

Montgomery Foreclosure Activity and Home Price Index

Montgomery foreclosure activity is based on the total number of properties that receive foreclosure filings - default notice, foreclosure auction notice or repossession notice - each month. Home price appreciation is based on month-over-month percentage change of the Home Price Index. The Home Price Index is calculated from home sales records.

Montgomery Foreclosure Geographical Comparison

Montgomery foreclosure activity is lower 0.20% lower than national statistics and 0.04% lower than Alabama statistics.

Montgomery Foreclosure Activity by Month

The number of Bank-Owned properties increased in from 37 in August to 60 in September. the number of Auctions decreased from 91 to 7. The 6-month trend is a drop in Montgomery foreclosures.

Are you or someone you know behind on your mortgage payments and facing a Montgomery foreclosure? You do have options. A short sale may be the answer to saving you, your family and your home. Give me a call for a private consultation.

Montgomery Real Estate For Sale 1458 S Perry Street Montgomery, AL MLS #269344 Grace and grandeur await you here. And thanks to a tireless, old-house-loving owner, every room has been renovated but with respect for history. From the breathtaking front entry hall to the immense master bath, every space welcomes you to make this elegant house your next home. And its location on an entire block of estate-sized properties guarantees your investment will pay dividends one day. One more bonus: if you're a crafter, a do-it-yourselfer or just have tons of stuff to store, over 1000 sq ft of partially finished basement will meet your need for extra usable space. Learn more about 1458 S Perry Street and other Montgomery Real Estate by visiting HatTeam.com. Search all Montgomery Real Estate and homes for sale.

Pending home sales have increased for seven straight months, the longest in the series of the index which began in 2001, according to the National Association of Realtors®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in August, rose 6.4 percent to 103.8 from a reading of 97.6 in July, and is 12.4 percent above August 2008 when it was 92.4. The index is at the highest level since March 2007 when it was 104.5.

Lawrence Yun, NAR chief economist, said not all contracts are turning into closed sales within an expected timeframe. "The rise in pending home sales shows buyers are returning to the market and signing contracts, but deals are not necessarily closing because of long delays related to short sales, and issues regarding complex new appraisal rules," he said. "No doubt many first-time buyers are rushing to beat the deadline for the $8,000 tax credit, which expires at the end of next month."

Let's take a look at the September sales statistics to see how the Montgomery AL real estate market looks:

Montgomery AL real estate sales statistics for September show pending sales decreased by 30% in 2009 compared to September 2008. The average sales price decreased by 39% to $89,614 while sold listings were down 8% from 2008. Market times remainded consistent with 2008.

It is important to note that 15 of the closed sales were foreclosures at an average price of $33,853. With these 15 sales removed from the total, September 2009's average sales price was $148,394, a slight increase over 2008.

Midtown Montgomery	Pending Sales	Sold Listings	Average Market Times	Average Sales Price
Sept 2009	35	34	84	$89,614
Sept 2008	50	37	84	$147,114

Investors are snapping up foreclosures because they believe that prices have hit bottom and they are eager to build their portfolios before the anticipated recovery.
Remember, there are only a few weeks left to benefit from the $8000 first-time home buyer tax credit. Give us a call to make your dream home a reality!For the latest Montgomery AL real estate market conditions in your area, please call me at 800-HAT-LADY or visit

HomesForSaleInMontgomeryAlabama.com.

Information is provided by the Montgomery Area Association of Realtors and is deemed accurate but not guaranteed.

Buyer's often find themselves watching a property for a price reduction. Although getting the best deal possible when purchasing Montgomery real estate is important, it is not the only factor that determines monthly payments on a home. Rising interest rates nearly diminish the positive aspects of waiting for prices to drop.

Most people are familiar with the basic trends in real estate that have been affected by the United States economic crisis. The listing prices of homes have been steadily declining over the past couple years. This has put people looking to purchase Montgomery real estate at an advantage over those trying to sell. People have best described this as a buyer's market due to the low property prices and reasonable interest rates. However, the decline in prices is stabilizing while interest rates are beginning to inch up. It is becoming more and more popular for investors to make offers on properties, sometimes sweeping the property away from home buyers. Could buyers begin loosing their advantage? Today, properties that are correctly listed at a reasonable asking price are not being reevaluated and reduced as often. These are some of the factors that prove lower Montgomery real estate prices are not always worth the wait.

Buyer's should not be waiting for interest rates to continue declining, especially since real estate and economy experts are predicting that the lowest rates have come and gone. This is not necessarily a horrible thing. Rates are still lower than historical highs, which exceed 6.00%. With the new administration trying to bring back the economy, many analysts see a period of severe inflation in our future. Meaning interest rates are likely to jump even higher. The Federal Reserve introduced a program to help control interest rates on home loans. For example, the rates for a thirty year fixed-rate loan have been consistently ranging from 4.50% to 5.00%. Now, rates for this type of loan and the rates of other types of real estate loans are beginning to exceed their more reasonable range. Therefore, increasing interest rates may start rushing your desired closing date.

At the end of May buyers, who have been procrastinating by waiting for lower interest rates or price reductions, learned their lesson the hard way. At the end of the month interest rates went up about .50%-1.00%. Increasing interest rates defeats the purpose of waiting for [city] real estate prices to drop. Higher interest rates decrease the overall affordability and increase the monthly payments, especially when the price of the desired home does not budge.

Bottom line, it is not a time to be waiting around. Time is running out to take advantage of the current real estate market and loan programs being offered by the government. For instance, first time home buyers have until December 1^st, 2009 to close on their home if they want to be eligible for a maximum tax rebate of $8,000 dollars. Since interest rates are expected to increase, waiting for real estate prices to drop is not worth the wait. Don't procrastinate. You might unintentionally pass up a piece of gold trying to find a diamond.

Search all Montgomery real estate and homes for sale by visiting HatTeam.com.