30-Year Mortgage Rate Ties Low While 15-Year Sets New Record

30-Year Mortgage Rate Ties Low While 15-Year Sets New Record McLean, VA – Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®). The 30-year fixed-rate mortgage rate dropped to tie the survey’s all-time low and the 15-year fixed-rate set another record low. 

30-year fixed-rate mortgage (FRM) averaged 4.32 percent with an average 0.8 point for the week ending September 30, 2010, down from last week when it averaged 4.37 percent. Last year at this time, the 30-year FRM averaged 4.94 percent. 

15-year FRM this week averaged a record low of 3.75 percent with an average 0.7 point, down from last week when it averaged 3.82 percent. A year ago at this time, the 15-year FRM averaged 4.36 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.52 percent this week, with an average 0.6 point, down from last week when it averaged 3.54 percent. A year ago, the 5-year ARM averaged 4.42 percent. 

1-year Treasury-indexed ARM averaged 3.48 percent this week with an average 0.7 point, up from last week when it averaged 3.46 percent. At this time last year, the 1-year ARM averaged 4.49 percent.
Frank Nothaft, vice president and chief economist at Freddie Mac, says, "Confidence in the state of the economy fell among consumers and businesses, which led to a decline in long-term bond yields and brought many mortgage rates to record lows this week. The September Consumer Confidence Index by the Conference Board fell to the lowest level since February of this year, while the Business Roundtable CEO Business Outlook for the third quarter was the weakest in the past four quarters. Consequently, rates for the 15-year fixed mortgage and the 5-year hybrid ARM reached new all-time lows and rates for 30-year fixed mortgages tied its record set just four weeks ago." 

"Homeowners have regained $1.0 trillion in home equity as of the second quarter of 2010 after losing more than $7.5 trillion over the three-year period ending in the first quarter of 2009, the Federal Reserve Board reported. This, in part, strengthened household balance sheets and reduced serious mortgage delinquencies. For instance, first mortgages 90-days delinquent or worse fell to 3.16 percent in August from 4.76 percent a year prior and was the lowest rate since June 2008, according to the S&P/Experian Consumer Credit Default Indices ."

September Real Estate Round Up

September Round Up: Rates Back Down In Freddie Mac's results of its Primary Mortgage Market Survey. The 30-year fixed-rate mortgage rate dropped to tie the survey’s all-time low and the 15-year fixed-rate set another record low.
30-year fixed-rate mortgage (FRM) averaged 4.32 percent with an average 0.8 point for the week ending September 30, 2010, down from the previous week when it averaged 4.37 percent. Last year at this time, the 30-year FRM averaged 4.94 percent.
15-year FRM this week averaged a record low of 3.75 percent with an average 0.7 point, down from the previous week when it averaged 3.82 percent. A year ago at this time, the 15-year FRM averaged 4.36 percent. 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.52 percent this week, with an average 0.6 point, down from the previous week when it averaged 3.54 percent. A year ago, the 5-year ARM averaged 4.42 percent.
1-year Treasury-indexed ARM averaged 3.48 percent this week with an average 0.7 point, up from the previous week when it averaged 3.46 percent. At this time last year, the 1-year ARM averaged 4.49 percent.
According to Frank Nothaft, vice president and chief economist, Freddie Mac: "Confidence in the state of the economy fell among consumers and businesses, which led to a decline in long-term bond yields and brought many mortgage rates to record lows this week. The September Consumer Confidence Index by the Conference Board fell to the lowest level since February of this year, while the Business Roundtable CEO Business Outlook for the third quarter was the weakest in the past four quarters. Consequently, rates for the 15-year fixed mortgage and the 5-year hybrid ARM reached new all-time lows and rates for 30-year fixed mortgages tied its record set just four weeks ago."
"Homeowners have regained $1.0 trillion in home equity as of the second quarter of 2010 after losing more than $7.5 trillion over the three-year period ending in the first quarter of 2009, the Federal Reserve Board reported. This, in part, strengthened household balance sheets and reduced serious mortgage delinquencies. For instance, first mortgages 90-days delinquent or worse fell to 3.16 percent in August from 4.76 percent a year prior and was the lowest rate since June 2008, according to the S&P/Experian Consumer Credit Default Indices."
Four Tips for Setting the Right Sales Price
Sellers think their homes are worth more than their real estate professional recommends, and buyers think these same homes are worth less.
It’s a difficult disconnect that makes selling properties a challenge. Successfully marketing a home requires that the price be set carefully -- or it will languish on the market. Among the considerations:

How many homes are for sale in the neighborhood? The more homes on the market, the more important it is to list at the lower end of the scale. "I want buyers to ask why is this house priced so competitively," said NAR President-elect Ron Phipps. "I want the answer to be an offer."

Take short sales and foreclosures into consideration when pricing. If the competing properties are in lousy condition, they are less of an issue, but if they are well taken care of, yet priced 25 percent below market, they can be a serious factor.

Negotiate decisively. "Buyers are not interested in back-and-forth negotiations these days," Phipps said. "They are less emotional and more disciplined. They will walk away."

Cut the price when you have to. If no one shows up for an open house, if no one calls and if there are no offers, then the price is too high. That means it's time to make a meaningful price cut. What's New in New Housing Design Below are the products grabbing the attention of the home building and remodeling industries:

Appliance Drawers. Small warning drawers, modest-sized dishwasher drawers for small loads, refrigerator drawers and microwave drawers.

Counter-depth refrigerators. Some are only 24 inches deep.

Motion-detecting faucets. Like you'd find in the restrooms of businesses.

LED lighting. These are used under cabinets and in ceiling fixtures as a longer-lasting, more efficient alternative to compact fluorescent lamps and incandescent bulbs.

Electric heated floors. A nice touch in bathrooms,

Showers with multiple heads and body sprays. Bathtubs are out. Sellers Quickly Transform Property with Paint
The best way to update a property is to paint it. It’s a job that many sellers can do themselves. Here are six suggestions for making the work go quickly.
1. Move the furniture. Get as much furniture as possible out of the way, and then cover what’s left with plastic drop cloths held in place with masking tape.
2. Buy good paint. Top-quality latex interior paint will hide what’s underneath and make the job go faster.
3. Tape the edges. Taping the edges with painters tape will speed up the job and make the results more professional.
4. Work top down. Paint the ceiling first, then the walls, then the windows and trim and finally the baseboards. This will cut down on time spent repairing drips and splatter marks.
5. Cut in the corners. Applying a three-inch band of paint around the edges will allow you to fill in the middle with a paint roller.
6. Apply paint generously. Trying to stretch the paint won’t save sellers any money if they have to repaint.

How Buyers Compete in a Sellers' Market

How Buyers Compete in a Sellers' Market No matter the market, sellers can find a competitive edge, whether it be through pricing, staging, or even negotiating closing costs.
What about buyers? Do they have any hope for an edge during a sellers market?
A sellers market is one which favors the seller. Perhaps you find yourself in a hot area where homes garner multiple offers and bidding wars. Or perhaps you live in an area where prices are appreciating or there is only a small inventory of homes for sale. No matter the situation, buyers can still find ways to gain an advantage.
Here are a few tips that might do just that.
1. Pre-approval: Be sure to start your home buying process by getting pre-approved for a mortgage. This will prove to your potential seller that you are ready, willing, and able to buy their home. A pre-approval will also give you an exact number of how much money you can borrow, and thus spend.
2. Be ready to buy: There can be no hesitation during a sellers market. There will be other buyers waiting to to grab up the same deal you just found. If the numbers work out in your favor for a home you like, then be ready to put in a strong offer.
3. Know your budget: You may be approved for a loan of up to $300,000, but you only want to spend $250,000 as your max. Be sure to know ahead of time what your budget really is.
4. Make a strong offer: In a sellers market, homes can expect to receive nearly if not all of their asking price. And in many cases, you may even find a home sells for more than the asking price. So, in order to make both a good impression on the seller so they take your interest seriously, as well as to beat out the competition, be sure to present a strong first offer.
5. Be willing to negotiate terms: This means if a seller needs 60 days until closing, do what you can do accommodate them. Or maybe they are unwilling to make a repair before you move in, but are willing to pay you the repair costs instead. Be willing to work with a seller, if it means getting the home you desire.
These simple tips can make a big difference when it comes to buying in a sellers market.

New Short Sale Bill Submitted to Congress

New Short Sale Bill Submitted to Congress U.S. Representative Robert Andrews (D-N.J.) and Tom Rooney (R-Fla) offered up new legislation to Congress last week. H.R. 6133, "Prompt Decision for Qualification of Short Sale Act of 2010," is an effort from Congress to help keep potential buyers from walking away from short sales, simply because lenders take months to respond to their offers.
The National Association of REALTORS are a strong supporter of the bill. Their President, Vicki Cox Golder, said, "The short sale, which requires lender approval, is an important instrument for homeowners who owe more than their home is worth. While the lending community has worked to improve the size and training of their short sales staffs, they still have a long way to go on improving response times."
And in a sticky financial situation such as a short sale, where time really counts, this bill comes as welcome news to many homeowners and buyers.
This legislation aims to "require the lender or servicer of a home mortgage, upon a request by the homeowner for a short sale, to make a prompt decision whether to allow the sale." (Library of Congress)
In this bill, the terms "short sale" means the sale of the dwelling or residential real property that is subject to the mortgage, deed or trust, or other security interest that secures a residential mortgage loan that:

• will result in proceeds in an amount that is less than the remaining amount due under the mortgage loan; and
• requires authorization by the securitization vehicle or other investment vehicle or holder of the mortgage loan, or the servicer acting on behalf of such a vehicle or holder.

Ms. Golder continued, "Unfortunately, homeowners who need to execute a short sale are severely hampered because lenders (loan servicers) are unable to decide whether to approve a short sale within a reasonable amount of time. Potential homebuyers are walking away from purchasing short sale property because the lender has taken many months and still not responded to their request for an approval of a proposed short sale price. Many consumers have mentioned that the delay in short sale price approval exceeds 90 days, and in many cases never arrives."
Hopefully, if this bill passes into law, homeowners will find relief from their mortgage woes, and will be able to sell their home without having to be foreclosed upon.

Written by Carla Hill

Pay Extra Attention To Mortgage Financing Contingency Clauses During Today’s Credit Crunch

by Rich Vetstein 

 
Today’s strict lending and underwriting environment has resulted in quite a few delays and even losses of buyers’ financing for home purchases. Loan commitment deadlines are being pushed back due to underwriting delays, regulatory compliance and appraisal issues, among other delays. The worst case scenario for any borrower is the wholesale rejection of financing in the middle of a transaction.
What Is The Typical Mortgage Contingency Clause?
The Massachusetts “standard” form purchase and sale agreement contains a mortgage contingency clause which protects the buyer (and his deposit) for the period of time until he can obtain a firm loan commitment. The date is negotiated by the buyer and seller, and is usually around 30 days from the execution of the purchase and sale agreement, depending on the closing date. If the buyer cannot get a firm loan commitment by the deadline, he can opt out of agreement with a full refund of his deposit. Here is how a typical Massachusetts mortgage financing contingency clause operates:

In order to help finance the acquisition of said premises, the BUYER shall apply for a conven­tional bank or other institutional mortgage loan of $300,500.00 at prevailing rates, terms and conditions. If despite the BUYER’S diligent efforts, a commitment for such a loan cannot be obtained on or before October 15, 2010, the BUYER may terminate this agreement by written notice to the SELLER in accordance with the term of the rider, prior to the expiration of such time, whereupon any payments made under this agreement shall be forthwith refunded and all other obligations of the parties hereto shall cease and this agreements shall be void without recourse to the parties hereto. In no event will the BUYER be deemed to have used diligent efforts to obtain such commitment unless the BUYER submits a complete mortgage loan application conforming to the foregoing provisions on or before 3 days from the execution of this Agreement.

What If There Are Delays In Obtaining My Loan Commitment?
The buyer really has only two choices if the lender cannot deliver a firm loan commitment by the mortgage contingency deadline: (1) ask the seller for an extension of the loan commitment deadline, or (b) terminate the transaction. There is, however, a smart way to handle this situation.
I always couple a request for a loan commitment extension with notice that if the seller does not agree, then the buyer will exercise his right to terminate the agreement. That way, the seller has to make a tough choice: grant an extension or lose the deal. If the seller does not want to grant an extension, the buyer really has no other choice but to move on to the next home for sale.
Parties need to make mortgage contingency deadlines workable and don’t wait until the last minute to ask for extensions. See this post about a recent case for what happens when you don’t do this.
What If There Are Conditions In My Loan Commitment That I Cannot Control or Meet?
Loan commitments are often riddled with conditions which must be reviewed carefully with counsel. Sometimes, there are conditions that a buyer simply cannot meet or control. To account for this I always insert this clause in my Massachusetts purchase and sale agreement rider:

Application to one such bank or mortgage lender by such date shall constitute “diligent efforts.”  If the written loan commitment contains terms and conditions that are beyond BUYER’S reasonable ability to control or achieve, or if the commitment requires BUYER to encumber property other than the subject property, BUYER may terminate this agreement, whereupon any payments made under this agreement shall be forthwith refunded and all other obligations of the parties hereto shall cease and this agreement shall be void without recourse to the parties hereto.

This protects the buyer in case there are those uncontrollable conditions, and also limits the buyer’s efforts in applying for a mortgage to 1 application.
What If There Are Title Defects Which Delay The Transaction And My Rate Lock Expires?
Under paragraph 10 of the Massachusetts standard form purchase and sale agreement, the seller has the option (or the requirement, depending on the negotiation of the agreement) to cure any title defects, and has up to 30 days to do so. Sometimes, during this 30 day cure period, the buyer’s rate lock will expire. In this situation, I insert the following clause into the purchase and sale agreement:

MODIFICATION TO PARAGRAPH 10: Notwithstanding anything to the contrary contained in this Agreement, if SELLER extends this Agreement to perfect title or make the Premises conform as provided in Paragraph 10, and if BUYER’S mortgage commitment or rate lock would expire prior to the expiration of said extension, then such extension shall continue, at BUYER’S option, only until the date of expiration of BUYER’S mortgage commitment or rate lock.  BUYER may elect, at its sole option, to obtain an extension of its mortgage commitment or rate lock.

This gives the buyer an “out” of the transaction if his rate lock expires.

Reprinted with permission. 
http://www.massrealestatelawblog.com/pay-extra-attention-to-mortgage-financing-contingency-clauses-during-todays-credit-crunch/

5 Reasons Why Massachusetts Home Sales Will Continue To Rise

 Debunking The July 2010 Housing Report: 5 Reasons Why Massachusetts Home Sales Will Continue To Rise

by Marc Canner on August 27, 2010

in Massachusetts Property Values

A National Association of Realtor’s report released Wednesday indicated that home purchases fell 27% in July, a drop that jolted the real estate industry, according to the Wall Street Journal, and sent shock waves through the broader economy. As a result, a number of economists provided dire warnings of a continued down slide in real estate prices.
At first blush, this news could have the “echo chamber” effect of  turning the purported downturn into a self-fulfilling prophecy, discourage consumer confidence, and sidelining a number of prospective Massachusetts home buyers from the fall housing market.  Here are 5 reasons why the national housing report won’t impact the Massachusetts real estate market.
1.  Massachusetts Has a Strong Housing Market.
Massachusetts has bucked the national trend as its housing market has remained strong. Indeed, parts of the Massachusetts housing market actually saw a surge in activity in July 2010:

• From July ’09 to July ’10, these towns had an increase in sales:

1. Norwood (+117%)
2. Bedford  (+78%)
3. Easton (+27%)
4. Brookline (+20%)
5. Melrose (+20%)

• Several towns saw an  increase in year-to-date median home prices in July, including:

1. Cohasset (+25%)
2. Marblehead (+12%)
3. Dennis (+6%)
4. Norwood (+5.9%)
5. Melrose (+4%)

2.  The June 1^st Time Tax Buyer Credit Caused An Artificial Decrease in July Purchases.
The government stimulus program brought out the seasonal first time buyer’s in full force during June. Thus, the normal sales cycle was altered which skewed the July numbers
3.  Massachusetts Is Always Out In Front Of The National Numbers
The national housing report gives equal weight to markets blighted with foreclosures and economically hard hit areas like Detroit, Las Vegas, Florida, Arizona and parts of Southern California. Greater Boston has historically been a unique “inelastic” market along the lines of Washington, D.C. and San Francisco. Negative national trends do not necessarily correlate to the Massachusetts real estate market.
4.  “It’s the Economy, Stupid.”
Massachusetts has a strong and diverse economy, a number of high paying jobs (no, I’m not running for governor), a very limited number of new housing starts, and several industries that have constant employment turnover- a tried and true recipe for a hot housing market.
5.  Historically Low Interest Rates
The average rate for a 30 year mortgage has fallen to 4.5%, a 50 year low! Prospective borrowers who pass on this- caveat emptor “buyer beware.” A number of economists predict that the Fed will gradually ease rates back up to counter inflation.

Reprinted with permission from The Massachusetts Real Estate Blog

Fewer Home Owners Are Under Water

Fewer Home Owners Are Under Water

 
In the second quarter of 2010, 21.5 percent of borrowers owed more than their homes were worth. That’s down 7.7 percent from the first quarter of the year when 23.3 percent of home owner with mortgages were under water.

Much of the improvement came from homes falling into foreclosure, wiping away negative equity. Rising home values also improved the situation in 45 of the metropolitan statistical areas, including the northeast region of the United States.

Mortgage Rates for Massachusetts at All-Time Lows...Again!

Mortgage Rates are at all-time lows right now; 30 year fixed, 20 year fixed, 15 year fixed and even Jumbo Rates, and they're showing no signs of rising! I don’t see them going any lower, but staying down at these levels for a while.

What’s moving Mortgage Rates? No one really knows right now but this is usually what happens, bonds go up, stocks go down.  Stocks go up, bonds go down. It’s really pretty easy to understand. However this mortgage market that we are in  is no where near normal.  In fact, it’s the total opposite, it’s like nothing we’ve ever experienced.

Refinance loans account for the majority of all present loan production, but home buyers are getting these incredible rates, too! What I don't understand is why there are not more home buyers placing offers, and why some properties just languish on the market when they are priced competitively. I have to think that the home buying consumer just does not have enough confidence in the overall economic outlook yet. I'm just afraid these same people may miss out on a rare real estate buying opportunity...low home prices and rock bottom mortgage interest rates.

30 year fixed mortgage rates remain in the 4.375% to 4.625% range.  The 30 year fixed rate mortgage is 4.375% for a qualified borrower.

Do I Need a Buyer’s Agent for Home Purchase?

 Do I Need a Buyer’s Agent for Home Purchase?

Q: We own a home now in town for 14 years. We’ve done a drive-by and are interested in a different home in a rural setting. We have made an appointment with the listing agent to see the house on our own. If we are still interested after seeing the house, we will need to sell ours in order to buy it. We may or may not continue looking if that one is not “the one.” A friend is urging us to have our own REALTOR® now to represent our interests before our appointment next week. I don’t see the need until we’ve decided that we’re ready to give up our current home for another. What do you advise?
~ Brenda
A: Brenda, there are a couple of problems with looking at homes without your own Realtor (working as a Buyer’s Agent). First, the listing agent is representing the seller, and cannot give you any information on the property other than what the seller would allow.

The other issue is that the compensation for representing a buyer typically goes to the agent who first showed the property to the buyer. So, if you go to see a home with the listing agent, then your agent could possibly be cut out of receiving any compensation from the transaction if you decide that you want to make an offer. Your agent may not even want to represent you because of that fact, or you may have to pay your agent out of your own pocket.
If you want to see homes without your agent, then you could go to open houses. If you need to make an appointment to see a property, then you should go through your own Realtor. As a Realtor, this is part of our job. So don’t hesitate to give him/her a call.
~ Jim Armstrong


Jim Armstrong is a Realtor-Broker with Armstrong Field Real Estate in Essex County, MA.

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June 2010 REALTOR® Market Index Down but Price Index is Up

June 2010 REALTOR® Market Index Down but Price Index is Up

The June 2010 REALTOR® Market Index Down Compared to the Same Time Last Year. REALTOR® Price Index up for the 11th time in the past 12 months.   WALTHAM, Mass. – The Massachusetts Association of REALTORS® (MAR) announced that after 16 straight months of annual increases, the June REALTOR® Market Index (RMI) is down for the first time since February 2009.  Despite the drop, the June REALTOR® Price Index was up compared to the same time last year. “The combination of the post-tax credit lull and buyers who may have moved up their plans for a summertime purchase to take advantage of the tax credit which expired in April, is having an impact on how REALTORS® are feeling about the current market as reflected in the low Market Index number,” said 2010 MAR President Kevin Sears, broker/co-owner of Sears Real Estate in Springfield.  “Despite this combination of events, REALTORS® do see home prices starting to move up over the next 12 months, which indicates to me that members believe the market will continue to improve.” In June 2010, the REALTOR® Market Index was 28.36, which was 24.8 percent lower than the 37.70 score recorded in June 2009.  On a month-to-month basis, the June 2010 RMI was down 28.19 percent from the May 2010 score of 39.49.  Measured on a 100-point scale, a score of 50 is the midpoint between a “strong” (100 points) and a “weak” (0 points) market condition.     The REALTOR® Price Index was up 6.34 percent in June 2010 compared to the same time last year (44.06 in 2009 to 46.85 in 2010).  On a month-to-month basis the June index number was up 22.07 percent from the Home Sales Price Index number in May 2010 (38.38). When REALTOR® members were asked how they would describe their clients’ ability secure financing in the current lending environment, 60 percent of respondents reported that it was either “somewhat” more difficult (37 percent) or “significantly” more difficult (23 percent).  Thirty-two percent of respondents reported that securing financing had “remained the same”, while 11 percent reported that financing was “somewhat” easier to secure.  Zero percent of the respondents reported that financing was “significantly” easier to obtain. About the REALTOR® Index Methodology: The Massachusetts REALTOR® Market Index (RMI) and Price Index (RPI) are based on monthly responses from a random sampling of Massachusetts Association of REALTORS® members on the state of the housing market.  More specifically, the survey asks members two basic questions pertaining to the real estate business in their market area in Massachusetts. 1. How would you describe the current housing market? 2. What are your expectations of home prices over the next year? In addition to these standard questions, the survey each month includes one wildcard question that changes each month and is based on an industry hot topic. The RMI is calculated in the following way.  Respondents indicate whether conditions are, or are expected to be “strong” (100 points), “moderate” (50 points), and “weak” (0 points).  The results are the average score for each question.  A score of 50 is the threshold between a “strong” and a “weak” condition.  Similarly, the question about home prices over the next year (REALTOR® Price Index) is calculated using five categories: “Rise 0-5%” (75 points), “Rise 5%+” (100 points), “Level” (50 points), “Fall 0-5%” (25 points), and “Fall >5%” (0 points).

Closing Deadline Extended for Tax Credit

July 1, 2010 - Last night, Congress passed an extension of the closing deadline for the Homebuyer Tax Credit, the Homebuyer Assistance and Improvement Act (H.R. 5623). The extension applies only to transactions that have ratified contracts in place as of April 30, 2010, that have not yet closed. The legislation is designed to create a seamless extension; the new closing deadline for eligible transactions is now September 30, 2010. There will be no gap between June 30 and the date the President signs the bill into law. Extending the tax credit closing deadline will help provide additional stability to real estate markets across the nation.
Our Government Affairs team worked closely with Congressional leaders on both sides of the aisle to enact this important legislation.
NAR is still working on restoring the 502 single-family rural housing loan guarantee program. Language is included in H.R. 4899, the Emergency Supplemental Appropriations bill, that is currently in conference between the House and Senate.  We expect the House to pass that bill shortly and are hopeful the Senate will do the same when they return the week of July 12. When that bill passes, the program will be restored through the end of the fiscal year.



Additionally, the Senate passed the National Flood Insurance Program Extension Act of 2010 (H.R. 5569), an extension of the National Flood Insurance Program until September 30, 2010. This will allow transactions to move forward. The bill is retroactive and covers the lapse period from June 1, 2010, to the date of enactment of the extension. The National Association of REALTORS (NAR) members sent more than 250,000 letters to Members of Congress encouraging them to extend the program.

For additional information on the tax credit extension, the flood insurance program and rural housing, please visit www.realtor.org/government_affairs

Senate approves extension to qualify for homebuyer tax credit

The proposal pushes the closing deadline back to Sept. 30, 2010, from the previous June 30 deadline.
By a 60-37 vote, the Senate on Wednesday approved a measure extending the closing deadline for qualifying for the homebuyer tax credit. The proposal is expected to be added to a slimmed-down tax extenders bill that Senate Democratic leaders are expected to unveil Wednesday.

To qualify for the credit, homebuyers have until June 30 to close on the purchase. The proposal pushes the closing deadline back to Sept. 30, 2010.

  Senate Majority Leader Harry Reid (D-Nev.), Senate Banking Chairman Chris Dodd (D-Conn.) and Sen. Johnny Isakson (R-Ga.) authored the proposal. The senator from Georgia tried but failed to offset the amendment's cost with unspent stimulus dollars. His proposal failed by a 45-52 vote. The proposal that is expected to be added to the extender bill is offset by denying the tax deduction for certain punitive damages, which raises $315 million over 10 years. The cost for extending the closing date is $140 million, which means the provision reduces the deficit by $175 million over 10 years.

Congress originally passed an $8,000 tax credit for first-time homebuyers as part of the stimulus bill President Barack Obama signed into law in February of 2009 (In fact, the original tax credit was in 2007 for $7,500, but had to be paid back). Lawmakers extended and expanded the measure last November to include a $6,500 tax credit for buyers who have already owned a home. Both of these measures expired at the end of April for buyers that enter into a contract to purchase a home. Wednesday's measure only extends the cut off date for closing on the property.

If You Missed Out on the Tax Credit - Don't Complain!

To all of you who are complaining that you don't qualify because you haven't place a home under contract yet or went under contract after April 30, 2010:

You have had over 2 years to take advantage of the tax credit. The 1st deadline was in 2008, then 2009 and finally April 30, 2010. We all knew that it wouldn't be extended forever. There were many, many great bargains on homes out there, and we had dozens and dozens of clients buy them and take advantage of the credit. We had many other buyers who didn't take advantage of it because they procrastinated too long.

But as the final April 30th deadline approached, I told my buyers that it made no sense to buy a property they weren't happy with just for the sake of getting the tax credit. By waiting they have the opportunity to purchase the home they really want and, with all the short sale/bank owned properties on the market, save much more than the $8,000 they would have received.

Yes, the tax credit is over, but the savings are still here. Buyers are picking up short sale properties and with a little work they are getting instant equity.

Jim Armstrong

Real Estate Economic Report for 1st Quarter 2010

The Economic and Market Watch Report was just released by MLS Property Information Network - the largest real estate multiple listing service in Massachusetts.

For Essex County, it is still a buyer's market, but it is moving towards the neutral zone. The average sale price is steady, with the number of homes on the market predicted to rise giving buyers more to choose from. The average number of days that a home is on the market before going under contract has risen to 119, and is expected to rise more from there as more seller place their homes up for sale.

Though the tax credit incentives are over, there is still strong activity as buyer take advantage of prices that have bottomed out, and the excellent mortgage rates. For people who are thinking about moving up to a larger, higher priced home there are significant price reductions happening every day.

Here is a link to the complete report:

http://www.mlspin.com/mlspin/downloads/economic_market_watch_reports_current/MLSPINQ12010.pdf

Jim Armstrong
President/Broker
Armstrong Field Real Estate
978-394-6736

Zillow Reports that Boston Area Home Values Up

Zillow.com Reports that Boston Area Home Values are Up

The Boston metro area is one of the few places in the United States that have year over year home home value increases for the 1st quarter of 2010. Some other areas that had increases are Santa Barbara, Santa Cruz, Green Bay, San Diego, San Francisco, Tulsa, Dayton, Denver and New Orleans. Of the 135 areas tracked by Zillow, only 29 had increases in home values.

See the full stats at: http://www.zillow.com/local-info/

Jim Armstrong

Too Late for the Tax Credit!

Too Late for the Tax Credit!

The April 30th deadline for placing a property under agreement in order to qualify for the Fed's $8,000 tax credit has come and gone. If you did not have an offer accepted in time, does that mean you should stop looking for your first home?

Of course not! There are so many good deals out there right now there it makes no sense to discontinue your home search. Just in Essex County there are 400 single family homes priced under $250,000. Three years ago you would be hard pressed to find 25 homes in that price range. If you are looking for a condo there are 285 priced under $150,000 in Essex County.

Don't overlook short sale properties now that you don't have the tax rebate deadline looming over you anymore. You can get some fantastic deals on all types of properties. Don't let the asking price stop you from placing an offer significantly lower. When making an offer, you do have to consider what the property is really worth in today's market, and how long it has been on the market. A newly listed short sale property with aggressive (low) pricing could get offers for more than the list price. Your buyer agent is the best person to help you determine an offer price.

You do have to be a little patient when waiting for a response to your offer, but in the end it could be worth it. The good news is that many lenders are working on cutting the response time down for replying to short sale offers.

Jim Armstrong

Jobless Rate Falls. First Time since 2007

Jobless Rate Falls. First Time since 2007

The state unemployment rate fell last month for the first time in nearly three years as Massachusetts employers added thousands of jobs, the clearest sign yet that the economic recovery is gaining strength, the state reported yesterday.

The job gains were broad based, spreading across sectors from retail to technology to financial services, and apparently strong enough to bring down the unemployment rate even as thousands more residents entered the labor market in search of work.

“It is hard to see anything bad in this,’’ Alan Clayton-Matthews, an economics professor at Northeastern University, said of the report.

See the rest of the article at Boston.com

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Pending Homes Sales up 9th Month in a Row.

WALTHAM, MA. – April 6, 2010 – The Massachusetts Association of REALTORS® (MAR) reported the number of single-family homes placed under agreement in March 2010 was up 27 percent over March 2009, and condominiums were up 38 percent. March is the ninth straight month that the number of both single-family homes and condominiums placed under agreement had increased over the year before.

“It appears that the record rains in March didn’t keep buyers from taking advantage of the market conditions and making offers on homes,” said 2010 MAR President Kevin Sears, broker/co-owner of Sears Real Estate in Springfield. “Whether the rain will impact how many of these deals close is still a question, but the buyers are out there and that is a good sign for the market.”

There were 4,808 single family homes put under contract in March 2010, compared to 3,783 in March 2009. On a month-to-month basis (which really doesn't mean squat because of seasonal & monthly fluctuations), single-family homes put under agreement were up 37.8 percent from 3,489 homes in February.

The number of condos put under agreement in March was 2,1222 compared to March 2009 with 1,543 units.

Jim Armstrong

Boston in the Top Ten Cities for Borrowers

Top 10 Best Cities for Borrowers
Some cities are better than others for borrowers.

The best cities have the lowest percentage of foreclosures and delinquencies, including a low percentage of bank-owned homes. In most of the cities on this best list, home prices are actually rising. Boston ranks 6th in the list of the top ten.

This kind of solid housing market motivates banks to offer lower rates and better terms.

Here are the 10 cities that Forbes ranks as the best for borrowers:
1. Kansas City, Mo.
2. Houston
3. Dallas
4. Virginia Beach, Va.
5. San Antonio, Texas
6. Boston
7. Pittsburgh
8. Denver
9. Seattle
10. Portland, Ore.

Time to Spring Ahead...and Check Those Smoke Detectors!

Tonight is the night (actually, tomorrow morning at 2am) that we turn our clocks ahead by one hour, and when we should be replacing the batteries in our smoke detectors (and carbon monoxide). This year, with the change in the smoke detector regulations, you should consider replacing any of your smoke detectors that are near (within 20ft) a kitchen or a bathroom with a shower with a photoelectric model.

Most smoke detectors that are currently installed in homes are of the ionization type. They work very well, but are prone to going off due to cooking vapors and steam from a shower. When this happens, people tend to remove the batteries to shut them off, and ultimately forget to put them back in leaving everyone in the home vulnerable to a fire. The photoelectric type is not as sensitive to false alarms, therefore the batteries won't be taken out, leaving them ready to do their job at all times.

Though the new law that goes into effect in April only applies to new construction and homes that are being sold, you should take the initiative and install the photoelectric detectors now.

Jim Armstrong