Joe Harris

Please join us this Thursday October 29th from 4pm to 6pm.

Is the Market Changing?

Brevard County real estate sales continue to thrive. New listings are down, sales are up, and interest rates are still at historically low levels. With sales up almost 20% year over year, and inventory down about the same, it seems as though the market is moving at a fairly decent pace. So ask the question: is the market changing?

Sales continue to show strong numbers, and inventory is decreasing. With 79% of the sales being under $200,000, buyers are still looking for the bargains. These "bargains" are going fast, as 37% of September sales sold in less than 30 days. That means that if the price is right, the house will sell, fast! I do not think we are in a sellers market, however, in the lower price points, it is starting to feel that way.

With 60% of homes being financed in the Brevard County area, buyers are still taking advantage of the historically low interest rates. With the majority of the financing being done through FHA and VA loans, many are enjoying the benefits of these government insured and guaranteed loans. With the $8000 First time Home Buyers credit still being offered, first time homebuyers are rushing to the market to find their dream home, however, the deadline is fast approaching.

All in all September's Brevard County mortgage and market data proved to be in line with the theme that the market is improving and changing. Sales are up, inventory is down, rates are still low, and with incentives to purchase for first time homebuyers, it is an amazing time to purchase real estate! So, make sure that you speak with a mortgage professional to get an idea of you purchasing power and financing options, and then go out there and get yourself a deal before the market has "changed"!

There is much talk out there of retail lenders in Brevard County not closing loans in 30 days. I am still closing loans in 30 days. While there are instances where more time may be needed, a normal transaction can be completed in this time. With the First time homebuyer program coming to an end on November 30, make sure that you are working with someone who can close your loan in a reasonable amount of time.

Of course that timeline comes with some conditions, and here are the caveats: I need to have all necessary documentation including a clear fully executed copy of the contract and all addendums, and all needed buyer documentation and signed disclosures. There may be items outside of my control ie...appraisals, inspections, audits, and the like that could affect that timeframe, but again these are outside of anyone's control.

With many different options and choices for my valued clients and business partners, there is no reason to go anywhere else. I have a level of service that will astound any client or business partner, and I always keep all parties informed throughout the process. With a proven track record, and hundreds of wowed clients I am the person who you can trust with your business.

Many Thousands of Americans have had to sell their house through a short sale in the past few years. Who would have guessed a few years back that prices would plummet like they did? Here in Brevard County, home prices in some areas have been more than cut in half.

If you had to sell your house short, more than likely the credit report will show a mortgage settled for less than owed. If you go to apply for a mortgage, there are new rules surrounding this type of derogatory credit. The new rules for Fannie Mae says that it must be 2 years from the completion of the short sale, with no exceptions. This is fairly straightforward. If you had a short sale in the last two years, you are ineligible for a loan which is bought by Fannie Mae (that is all conforming loans, or anything that is not government).

US Department of Housing and Urban Development (HUD), who determines the rules for FHA loans, has not made a ruling on short sales as of when this article was written. While this may sound promising, the majority of the lenders are treating short sales on FHA loans like they do on conventional loans. However, there are a few lenders out there that will entertain a short sale if there are extreme extenuating circumstances prior to two years. Otherwise, like on a conventional loan, you must wait two years.

So here is the long and short of it: if you have recently experienced a short sale, you will be ineligible for a conventional loan for at least 2 years; you may be eligible for FHA financing, however, you will have to prove that there were extenuating circumstances. These extenuating circumstances could include loss of job, death of a wage earner, hospitalization, or some of these sorts. Additionally, you cannot have had any mortgage lates in the last year. For a loan to be considered prior to 2 years, it must be strong.

There is life after short sales, however, it seems as though for loan qualification purposes, it starts after 2 years for most. This is really not that long of a time, and there are probably some people who went through a short sale a few years back that are ready to buy again. For more information, contact Joe Harris.

First Time Homebuyers...The Clock is ticking...

Uncle Sam wants you to buy a house! If you are a first time homebuyer, he is even willing to give you an $8000 tax credit to do so. Time is ticking away...this deal only lasts through November of 2009. With rates still low, many properties to choose from that are aggressively priced, it really is the time to take advantage of the deals and get $8000 from Uncle Sam.

As I have outlined before, the program is simple, however, if you have any questions, you may want to check with your accountant or CPA. You can also check on the IRS's website. However, here is an outline of the program:

• Must be first time homebuyer - That means you haven't owned a home in the past three years, and your spouse hasn't either if you're married.

• Purchase home before December 1^st 2009

• File an amended return on your 2008 tax return, or wait to file on your 2009 tax return

• The credit is for 10% of the purchase price, up to $8000

• The credit amount starts phasing out if you make more than $75,000 or $150,000 if you're filing a joint return.

• Enjoy the benefit of an $8000 tax credit

Again, with interest rates at historic lows, homes being aggressively priced, and an $8000 tax credit, now is an outstanding time to be a first time homebuyer! But don't forget, this offer does have an expiration date. To be eligible for this money, you must purchase before December of this year. So call a Mortgage Professional, get pre-approved, and go out there and find your dream home!