Barry Long

Ok!

So the Tri-City Association Of Realtors delivered some sobering news about our market the other day. Feb 2009 was not a great month either in real estate in our area. Here's what it looks like

LISTINGS Feb 09 1222 Feb 08 1319 Thats good news! At least we don't have a glut of homes for sale.

TOTAL SOLD Feb 09 132 Feb 191 Not alot of people buying

AVERAGE SOLD PRICE Feb 09 $178,800 Feb 08 $193,900 Yep it's a buyers market and not alot of high end homes selling

HOMES UNDER CONTRACT Feb 09 145 Feb 08 183 Some buyers & sellers have had a meeting of the minds. Now we'll see if these turn into solds if the financing holds up.

Now! You need to get your home sold. To be sure that you are properly priced and the home looks good and the marketing is in place here are some great tips that I found that may help you!

In today's economy, it's tough enough to sell just one home in a neighborhood. But when there are multiple "for sale" signs on the same street, sellers often fear they're in for an especially long, trying experience.

A crowded market creates visions of price wars among neighbors who've lived on the same block for years. Sellers may also worry that potential buyers will conclude that something must be wrong with the neighborhood if everyone wants to leave.

Surprisingly, neighborhoods with multiple homes for sale may have a few unique marketing advantages, says Rhonda Duffy, owner and broker of Duffy Realty in Atlanta.

"As a buyer, it's easier to visit a street that has several homes for sale than to make a trip to just one property," she says.

When more buyers visit your street, there's a better chance they'll see your home. That may boost your odds of getting a good offer.

Here are seven things you can do to improve your odds of a sale when the neighbors are selling, too.

1. Suggest a joint open house
If the family next door and the people down the street have houses on the market, suggest hosting a combined open house on the same day, Duffy says.

"Try to work with the other sellers so that everyone is supporting each other instead of competing against each other," she says. "You might even agree to distribute each other's fliers."

A combined open house can draw more people while also giving buyers a glimpse of how well neighborhood residents get along. If the interactions are positive, it reflects well on the sellers, Duffy says.

Lori McGuire, a real-estate agent and president of the McGuire Team, a part of Re/Max Select One in south Orange County, Calif., knows it can be hard to get competing owners to work together. However, she says tough market conditions often force sellers, and their real-estate agents, to give it a try.

Let it rain!

Bear

Good Morning Everyone!

Despite all the news we have all heard on the news or read in the newspaper or seen on-line. Here are some facts that have come from the National Home Builders Association on the First Time Homebuyers Tax Credit.

There are several provisions in the overall stimulus package that will be beneficial for many of our members - and help stimulate demand for housing.

Chief among these is an $8,000 home buyer tax credit for new home buyers. While we are disappointed and would have preferred a more enhanced tax credit like the Senate version, the conferees did retain some key elements from the Senate and made other modifications that are beneficial to home buyers and home builders. For qualified home purchases in 2009, the legislation:

· Stipulates that the $8,000 tax credit does not have to be repaid, unlike the tax credit passed last summer;

· Keeps the tax credit refundable, or claimable regardless of tax liability;

· Extends the sunset date from July 1, 2009 until Dec. 1, 2009 so that consumers can utilize it during the critical summer and fall buying months;

· Allows tax credit home buyers to participate in the mortgage revenue bond program; and

· Permits state housing finance agencies to help buyers at closing by advancing the credit amount as a loan using tax-exempt bond proceeds.

While much of the industry's focus was on the home buyer tax credit, there are several other important components in the legislation that will help small businesses and bolster the housing market. H.R. 1, the American Recovery and Reinvestment Act of 2009, will:

· Help home borrowers in high-cost markets by extending the 2008 FHA, Fannie Mae and Freddie Mac loan limits of $729,750 through the end of this year;

· Temporarily allow exchange of Low-Income Housing Tax Credit allocating authority for tax-exempt grants and appropriates $2 billion in HOME funding for affordable housing projects;

· Provide up to a 10-year deferral of tax due to business debt restructuring;

· Expand the net operating loss carry back period from two years to five years for small businesses (businesses with average gross receipts of no more than $15 million over the prior 3 years) for losses arising in tax year 2008;

· Extend the 25C existing home remodeler credit through the end of 2010, increase the credit rate from 10 percent to 30 percent, raise the lifetime cap from $500 to $1,500, and expand the set of qualifying property;

· Provide an Alternative Minimum Tax patch for tax year 2009;

· Increase bonus depreciation and Section 179 small business expensing for business investment in 2009;

· Increase New Markets Tax Credit allocating authority for 2008 and 2009; and

· Delay for one year the start of the 3 percent government contractor withholding requirement (from 2011 to 2012).

This all looks very promising and I think that once we have buyer confidence back in our marketplace things will turn around.

The incentive is there. Buyers! If you are looking to buy now is not a bad time. Interest rates continue to stay low, inventory is good and Tri-Cities has a GREAT outlook for new jobs! Hope to see you soon!

Let it rain!

Bear

Hey everyone!

So I came across this article from the homebuilders website that I think explains the President's plan on helping with foreclosures.

Here it is:

President Obama last week unveiled details of a $75 billion foreclosure prevention plan designed to help seven to nine million "responsible" home owners remain in their homes with affordable mortgage payments. The official rollout date for the program is March 4.

"We applaud the Obama Administration for unveiling its plan to stem the rising tide of foreclosures that is flooding the market with excess inventory and undermining overall home values," said NAHB Chairman Joe Robson. "This is an important first step to address the acute supply problems confronting the housing market."

The plan has three main components:

• A refinancing program for borrowers of mortgages held or guaranteed by Fannie Mae and Freddie Mac who are current on their mortgage payments but who have been unable to refinance because the value of their home has declined
  
  
• A mortgage modification program for borrowers in default, or at imminent risk of default, that builds on the model established by the Federal Deposit Insurance Corporation by expanding eligibility and establishing incentives for borrowers, mortgage holders and servicers
  
  
• Actions to bolster the financial stability and mortgage support capacity of Fannie Mae and Freddie Mac

Of particular interest to NAHB are provisions that relate to mortgage loan modifications for primary residences.

"We hope this will focus only on those mortgages responsible for the surge in defaults," said Robson, adding that NAHB looks forward to working with the Administration and Congress to ensure that any legislative change is done in a careful manner that will have a positive impact on the marketplace.

The Administration believes its plan will enable Fannie Mae and Freddie Mac to refinance four million to five million home owners. Currently, these institutions have rules that make it difficult to refinance mortgages valued at more than 80% of the home's worth.

For example, on a home valued at $300,000 with a mortgage of $270,000, a home owner might have trouble refinancing through Fannie Mae and Freddie Mac. The Administration will remove limitations on Fannie and Freddie so that they can refinance mortgages they already own or guarantee.

The plan would create new incentives for lenders to work with borrowers to modify the terms of loans at risk of default or foreclosure. This would require both borrowers and lenders to do their part. Lenders would be required to reduce payments to no more than 38% of a borrower's income. The government would provide a subsidy to help further cut the borrower's mortgage debt-to-income ratio to 31%.

To encourage lender participation in the program, the plan provides them with additional financial incentives to modify loans prior to default.

The program also encourages borrowers to stay current on their payments. Those who participate will be required to make payments on time in return for this opportunity to reduce their monthly mortgage payments and stay in their homes. Home owners who remain current on their mortgage payments following loan modification will be eligible for an incentive of up to $1,000 a year from the government for five years. The bonus will be applied to the borrower's mortgage to lower the principal balance.

The mortgage modification program will also be available to home owners who are "underwater" and owe more on their mortgage than their home is worth.

The plan seeks to shore up Fannie Mae and Freddie Mac to help keep mortgage rates low for millions of middle-class families looking to buy a new home or to refinance an existing one.

The Treasury Department will provide additional financial support for Fannie and Freddie and allow them to increase their portfolios, which is designed to help the broader mortgage finance market.

The Treasury and the Federal Reserve will also continue purchasing Fannie Mae and Freddie Mac mortgage-backed securities to lower mortgage rates and to maintain stability and liquidity in the marketplace.

The foreclosure prevention package also calls on Fannie and Freddie to provide support to state housing finance agencies. These agencies are currently frozen out of the credit markets and are unable to provide much-needed support to first-time home buyers.

With Fannie and Freddie helping the state housing finance agencies to increase their liquidity, this will provide a ripple effect to strengthen the mortgage markets, said Robson.

While the Administration's plan is aimed at helping to ease excess capacity in the market due in large part to an unprecedented wave of foreclosures, Robson said that Congress still needs to take additional measures to stimulate housing demand to get the economy moving forward again.

"Until we move to resolve the housing crisis, we will not be able to pull the nation out of recession," he said.

Everybody got that? Good! There's a quiz later :)

Let it rain!

Bear

Its kind of like planting a bulb in the fall and wondering if its going to sprout in the spring. Guess we'll wait and see.

The big housing news we were all hoping for was the tax credit for all home buyers for $15,000. Well that didn't happen. BUT!

If you are a 1st time home buyer you can get a tax credit which does NOT have to be paid back for $8000! Thats good news for 1st time home buyers!

Our area (Tri-Cities) got some heaving lifting from Sen. Patty Murray & Sen Maria Cantwell during the stimulus package building period. Hanford recieved full funding for Hanford work $2 billion and ANOTHER $2 Billion to start new projects which will create and/or save 3000 jobs! THATS GREAT NEWS!

Our inventory of new & exsisting homes is low. Right now we have about 1100 homes on the market in ALL prices ranges. Looks like it is going to shape up to be a good spring for buyers!

Interest rates are low, sun is shining, snow is GONE and spring is almost here. By the way. Hanford Hank our resident groundhog DID NOT see his shadow this year.

Let me know how I can be of service!

Remember "If You Can't Be Good....Be Good At It"!

Bear

Good morning everyone!

Picked up my news paper this morning and what did the headline read? $15,000 tax break for homebuyers!

Currently Uncle Sam (our government) has a First-Time Homebuyers tax credit of $7500 which is for as it says First-Time Homebuyers. The Senate passed a housing stimulus package which includes a tax credit of $15,000 for ALL home buyers of NEW AND EXSISTING HOMES! I don't have all the details on this but I wanted to get the information out there that this is COMING!

So get out your surfboards and get ready to ride the wave!

Have a GREAT day! Y'all

Bear