Markets have stabilized slowly over the last few months. While there have been many first time home buyers taking advantage of the $8000 tax credit, there are a significant number of investors buying up property.
As these homes are bought, renovated, and rented, the values of these homes are likely to increase due to the work and money invested in them. This will add to the taxable, which in turn should increase
The amount of money collected by state, federal and local governments in property taxes. While this is not a complete answer, it is one area that can help offset the massive government spending currently taking place. When real estate investors enter the market, it is usually a sign that prices may have reached the bottom. Most investors will not purchase a home where the rents will not cover the mortgage and expenses. It must be a good time to buy, or they would invest their money elsewhere. Given the fact that investors are buying, it is my impression that it is a GREAT TIME TO BUY.
There have been many efforts to help homeowners this past year. Varying degrees of success have been reported among the numerous well intended programs. I applaud the success stories Of those that have been able to refinance, or have their loans modified in a meaningful and sustainable way. Unfortunately, not everyone in that is in need of help has received it. Even worse, some that have received help are disappointed to find that the relief was only temporary. Click here to see an article from Reuters News with more information.
There are a growing number of people on the brink of abandoning their homes, as they feel they will never catch up. Click here to see a story from Florida Realtors with sobering statistics. There are concerns that the Fed may soon stop buying mortgages at their current pace. It is not reasonable to believe that this activity can continue indefinitely. Click here to see an article From Realty Check with some interesting facts. Does this mean that we are heading back down the road to more troubled times in the housing market. I do not believe so.
The next FREE Green Building Council event is Wednesday October 21 at the Volusia Building Industry Assn offices. The event begins at 8:00am with a free breakfast provided by our sponsor The Center For Business Excellence.
Our program, "Green Stimulus Dollars Now Available For Employers and Job Seekers", will provide critical information on how to obtain Green Stimulus dollars NOW for new green job hiring as well as training dollars for job seekers to retrain for a new career.
Networking begins at 8:45am .You will not want to miss this one. Please RSVP by email today as this one will fill up fast. Email : ron@daytonahomesonline.com
A growing number of economists have fresh concerns about the future of the mortgage industry, and the availability of home loans for future home buyers. Many question how many buyers will be left in the market when the $8000 tax credit expires.
A New York Times article supports the notion that banks will continue to tightly monitor all lending practices, and that it will continue to be difficult for Americans to borrow money. FHA Mortgages that have provided the financing for many home buyers in 2009 may see some changes in 2010.
There is legislation being drafted to increase the required down payment from 3.5% to 5%, and would potentially take away the option for seller concessions for closing costs. The mere fact that such a proposal even exists, is cause for concern for many. This report from Fox News has more information.
The most glaring misconception this past week is the loan modification reports of success from the Making Homes Affordable Program. While many homeowners are being given a temporary life line from this program, the root of the trouble is not being fully addressed.
Most modifications involve a lowering of interest rates for a given time which helps homeowners now. Unfortunately, the interest that is unpaid is often put on top of the loan, very similar to the negative amortization loans that were so popular a few years ago. Does it truly help a homeowner if their loan balance goes up each month?
An article on RealtyCheck details that only 5 homes in the program received principal reductions in the mortgage balance. What is worse? Unemployed homeowners that need help the most, are not eligible for the program. The Florida Realtors article on re-defaults has some very sobering statistics. An article from Yahoo Finance discusses current anti- foreclosure initiatives and feels that they do not fully address the problems ahead. While the program is helping, improved solutions are needed.
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