Gig Harbor, WA

The number of first-time home buyers rose to 47 percent of all home sales from 41 percent of transactions in last year's study, and was the highest on record dating back to 1981. The previous high was 44 percent in 1991. It's interesting to note the last cyclical peak of first-time home buyers was during the last noteworthy economic downturn, with first-time buyers starting the chain reaction that led the nation out of recession.

The profile shows the median age of first-time buyers was 30 and the median income was $61,600. The typical first-time buyer purchased a home costing $156,000, down from $165,000 in the 2008 study, and plans to stay in that home for 10 years.

Fifty-five percent of entry level buyers reported they financed their purchase with an FHA loan, while another 8 percent used the VA loan program.

First-time buyers who made a downpayment used a variety of sources: 61 percent used savings and 22 percent received a gift from a friend or relative, typically from their parents. Six percent received a loan from a relative or friend, 6 percent tapped into a 401(k) fund, and 6 percent sold stocks or bonds. Ninety-six percent chose a fixed-rate mortgage.

First-time buyers often make financial sacrifices to purchase a home: 39 percent cut spending on luxury items, 38 percent cut back on entertainment and 30 percent cut spending on clothes.

Only 12 percent said financing their first home was more difficult than expected, but 13 percent of successful buyers said they had experienced a purchase agreement that was canceled, terminated or fell through; and 8 percent had been rejected by a lender. This raises the question of how many potential buyers were unsuccessful because of problems with appraisals or loan qualificationsThe market would be even stronger without these problems,

read my appraisal blog!

http://www.daryldatus.com

Publishers Clearing House Prize Patrol in Gig Harbor!

Yesterday while taking advantage of the beautiful day to get some new photos, I started chatting with another "photographer" standing beside me. We were down at the old ferry landing trying to get the perfect shot of a sailboat making its way across Gig Harbor Bay.

As it turns out, Andrew, the other photographer was visiting from New York and was here on a very special mission. He and his associate, John were members of the Prize Patrol from Publisher's Clearing House and had come to Gig Harbor to award a prize to a local resident. How cool is that!?

Now I'll admit, I've always been a tad skeptical about whether these prizes ever actually existed. I'm pretty sure I'm not alone here.... But as I talked to Andrew and John, I learned a little about the various regional contests. There are contests based on your first name, initials - all kinds of fun little things. So they award many more prizes than just the big one in February. Who knew?

To see a winner in Gig Harbor assured me that there indeed is a Publishers Clearing House Prize Patrol. In fact Andrew and John are headed to Seattle to award another prize today.

What a fun job that must be!

Tax Credit Extended!

Last President Obama signed a bill which extended and expanded the tax credit, into law.

Here are the details:

The bill that was to originally expire on November 30, 2009 has been extended through April 30, 2010.

In addition, there will be a tax credit of $6500 for qualified buyers who are NOT first time-home buyers and purchase a home with a sales price of up to $800,000.

The buyer's income limits have been increased to $125,000 for individuals and $225,000 for couples for both of these tax credits.

Homes purchased must be used as a primary residence.

There are other additional provisions, so as always, I recommend that you check with your tax attorney to see if this tax credit will work for you.

But if you've been thinking about "moving up" and using your current home as a rental, this could work out nicely for you. With low interest rates, great home prices and a $6500 tax credit, this may be a golden opportunity to add to your real estate portfolio. We may never have this chance again!

My 2010 Gig Harbor photo calendars are only $7 this year! Don't worry, if you were one of the ones who ordered them when they were $15, you'll get the $7 price as well! Thanks to DPI of Gig Harbor, I can offer this year's calendar at 1/2 of what I was able to do in previous years!

This calendar features photos from 7 Gig Harbor photographers that will truly amaze you. It's an 11″x17″, full size, full color 12-month calendar. If you've ever visited Gig Harbor, lived in Gig Harbor at one time, are a current Gig Harbor resident, whatever, if you know like I know just how picturesque Gig Harbor is, this calendar will be perfect for you. Like every item around this time of year, it "Makes a great gift" too!

I started making these calendars 5 years ago as gifts for my clients. The past few years I've had so many requests for them from folks who've seen them at businesses or homes around town that I figured I'd start offering them to everyone. They're not available in any stores yet, so you have to order through me directly. You can simply email me at gigharborinfo@gmail.com and tell me how many you'd like to order. If you're in the Gig Harbor area, I can deliver or arrange to have you pick them up. If you're out of the area I am happy to mail them to you if you agree to pay the shipping.

Below is a sneak peak at one of this year's photos from Jim Nelson.

Beware of foreclosure predators. Those who are trying to take advantage of the fear that's still prevalent surrounding foreclosures. People who prey on others' fears and perhaps lack of information regarding their house payments.

I received a letter in the mail today that begins, "Records indicate that you are currently in default on your mortgage. Your lender may be in the process of foreclosure proceedings." It's a very official looking letter. They have my address, they refer to the government stimulus act, they make it look similar to an IRS form. They provide sample payments that their plan can get me and give me a 1-800 number to call or a website to visit.

It's easy for me to see how an elderly person or widow or anyone who may not be completely up to date with their finances could be fooled by this letter and sent into a panic. This kind of thing drives me nuts. Far too often in my business now I'm encountering folks who are fearful about the housing market, and folks like this choose to prey on that fear rather than do something worthwhile with their lives.

Please, if you get a notice like this, call a local Realtor or mortgage professional first. Don't become a victim of these jerks. Fear isn't a good decision maker.