The Winston Salem Journal published an article earlier this week that shows the local real estate market in Forsyth County is making some progress. Home sales were down in December from November, but they were up 5% from December of last year. Prices were slightly up from November at $162,645, however a bit lower than $163,688 of December last year. The local board of Realtors (Winston Salem Regional Association of Realtors – WSRAR) is pleased with this progress locally based on many markets around the country showing a decline. Read the whole article below.
With prices increasing it means inventories are going down. So if you have been thinking about selling, but were unsure if the time is right, give me a call and request our free Market Timing Analysis for sellers. You could be risking losing money if you continue to wait for prices to keep going up due to other factors that can affect a seller’s net.
Today, the WALL STREET JOURNAL published an article with recently announced FHA changes. The highlights of the changes are buyers’ FHA insurance premium will increase from 1.75% to 2.25%; seller’s can contribute less money towards closing costs to help buyers; and buyers with credit scores below 580 will be required to make a 10% down payment. The changes will go into affect this Spring. These changes may be necessary to shore up FHA reserves, however Ivy Zelman, chief executive of Zelman & Associates, a housing-research firm, called the changes a “major coup” for the housing industry. I couldn’t disagree more.
Here’s why I disagree with Mr. Stevens. The insurance premium is going up 30%, which means it’s going to cost buyers more money to buy a home using an FHA loan. For a $200,000 loan, that means an increase from $3500 to $4500. This will only extend the current housing woes because buyers will have to buy less home, and sellers will have to consider lowering the price of their homes. Of course this isn’t the only problem with the market currently. High inventory due to REO’s (bank owned foreclosures) and the FED starting to phase out the purchase of mortgage backed securities (which will cause interest rates to increase) will also keep the “recovery” at a snail’s pace at best.
Do You Have Questions About the New First Time Home Buyers Tax Credit Extension?
Many home buyers have questions regarding the latest home buyer tax credit extension enacted in November, 2009. Local Winston Salem Loan Officer, Bob Church, of Bank of America has outlined the details of the newest homebuyer tax credit. Please give Bob a call if you are in need of financing or refinancing your home. His contact details are on the flyer below.
If you are a first time home buyer (homebuyer) in the Winston-Salem (Piedmont Triad) area, you can learn more about buying your first home by clicking the previous link. If you are looking for a trustworthy Realtor, give me a call at (336)462-9544 or on my cell at (336) 287-4423. I look forward to helping you!
Alternatives to Foreclosure Stop Foreclosure! (Foreclosure Options)
If you have experienced increased expenses, reduced income, or other hardship and are having trouble making your mortgage payment, you are not necessarily doomed to the devastation of foreclosure. Here are six options you may have to keep your house, if you cannot make your current mortgage payments, are about to default on your mortgage, or feel like you are going into “pre-foreclosure” status:
1. Refinance: You simply get a new mortgage loan and pay off your old (unaffordable) loan with the new one.
2. Repayment Plan: You work with your lender on structuring a repayment plan you can live with – one that lets you catch up on your missed payments by paying more than one full payment per month until you are current on your mortgage.
3. Forbearance Program: You work with your lender to delay or to suspend all (or a part) of your normal monthly payment for an agreed-upon period of time. You may roll the “suspended” payments into the existing mortgage loan, or you may make those payments as part of a repayment plan or loan modification, as agreed between you and your bank(s).
4. Loan Modification: You work with your lender to change the original terms of your mortgage loan. You may be able to change your interest rate, the duration of the loan, or the amount of the loan (adjusted by the amount that you are behind in paying).
5. Short Refinance: You work with your lender to obtain an adjustment or “forgiveness” of the actual principal portion of the balance. This may be used with Forbearance and Repayment Plans.
6. Short Sale: Simply put, it is when a lender will agree to accept an amount which is less than what is actually owed on the property. A short sale is a normal (actually nothing “normal” about a short sale) purchase and sale transaction, however the lender is receiving a payoff which is “short” of the total amount owed. Hence, the term “short sale.”
7. Bankruptcy: You may change your original terms of your mortgage loan as part of a bankruptcy filing, order, reorganization, or repayment plan.
All of these methods require you to be able to make a payment that the Bank agrees with and to make it on-time every month.
If you have encountered a hardship, income reduction, or increase in expenses that prohibits you from participating successfully in any of these programs or that will simply delay the inevitability of foreclosure because you’re actually unable to make acceptable payments, even under modification or other attempt to adjust your mortgage burden, you may need to consider a Short Sale to escape foreclosure and its devastating effects on your life.
For more information on what a Short Sale is and how it can help you or other foreclosure options, please feel free to call (336) 462-9544 for a free consultation or email: info@exitelitenc.com
Unless you’ve had your head in the sand for the last year, you realize that the real estate market has been down. Our area has not been hit like other areas of the country, but it has been affected none the less. The first time home buyer’s tax credit has increased the number of homes being sold in the lower price ranges, but now with the expansion of that credit to include all other buyers (up to $800k) who had owned their previous home for at least 5 years, it should improve the overall market.
The First Time Home Buyers Tax Credit has helped the worst real market since the Great Depression begin to recover. The $8000 credit is set to expire on November 30, 2009, however many are pushing to extend the credit. Over the last few days, multiple media sources have reported that senate negotiators have reached an agreement to extend the tax credit until April 30th, but it’s passage remains uncertain.
Would you like $8000 from the government for buying a home?
The agreement has been expanded to include certain move-up home buyers as well. This new credit would be extended to all home buyers who have been in their residence for a five-year consecutive period up to $6500. The tax credit extension would be extended to all buyers under contract by April 30, and closed by June 30, 2010. It’s been proposed to increase income limits to $125,000 for singles and $250,000 for couples. The credit would be phased out for buyers earning more than these amounts.
The real estate market has been weak nationwide, however the first time home buyer credit has been a boost to the market recovery. The recovery has been slightly slowed down by the drop in new home sales in September that was reported last week. Economists and real estate professionals believe an extension of the credit would help improve the market and the economy.
A recent survey by Zillow.com shows that home owners are becoming more confident in the real estate market. Zillow performs a market analysis four times a year to see if home owners are optimistic or not in their home values for the next six months. The survey results show the South to be the most confident and least affected by the recession.
The recent survey shows:
22% believe their home has increased in value (27% in the South).
19% believe their home has remained the same in value (21% in the South).
60% believe their home has decreased in value (52% in the South).
Across the country, 83% of home values have dropped in the last year according to Zillow’s Second Quarter Real Estate Market Reports. Home values were down almost 10% from one year ago.
Homeowners’ Future Outlook for the Next 6 Months:
34% believe their home’s value will increase.
47% believe their home’s value will remain the same.
19% believe their home’s value will decrease.
The Winston Salem Piedmont Triad area real estate market has been fortunate not to experience a “bubble” where home values increased beyond actual value, and where home values have not decreased greatly like in major cities in states like Florida, California, Arizona and others. Many people are still moving to North Carolina and many of them are considering the Triad area due to reports like Business Weeks Top Places to Begin a New Career.
EXIT Realty offers several marketing programs to home owners to help you sell your home fast including a free 24/7 info hot line to attract home buyers. The hot line will also text a virtual tour to a potential buyer that is interested in more info about your home. If you’re ready to list your home for sell, give me a call at (336) 287-4423, and I will provide you with a free market analysis and discuss more how EXIT will get your home SOLD.
If you are looking to buy right now, click the following link to use my Free Home Buyers Online Service. This service will help you streamline your search by adding the specific criteria you are looking for. I look forward to serving you.
EXIT Realty celebrated its 13th birthday on September 3, 2009
From humble beginnings in 1996, EXIT Realty Corp. International has grown to one of the leading real estate companies in North America, and celebrated its 13th birthday on Sept 3rd.
EXIT Realty’s Formula of single-level residuals continues to break ground and fuels the company’s unprecidented growth. Agents across the continent are building rewarding and lifetime careers in real estate with EXIT Realty; the only real estate company created with an agent’s lifestyle, success, family, and security in mind.
With over 1300 franchises sold and $150 Million paid out in single level residuals, EXIT Realty is destined to be the largest and most productively successful real estate company in North America!
Investor sentiment about the economic recovery fell this week, and the stock market declined.
Expectations for slower economic growth are favorable for bond markets, including mortgagebacked
securities (MBS), and mortgage rates ended the week a little lower.
The important monthly Employment report showed mixed results. Against a consensus forecast
for a loss of -225K jobs in August, the economy lost -216K jobs. This was the smallest level of
monthly job losses since August 2008 and was far below the monthly average of -691K seen
during the first quarter of the year. The biggest surprise in the data came from the
Unemployment Rate, which jumped from 9.4% to 9.7%, the highest level since 1983. The
unexpected increase was mostly due to previously discouraged workers returning to the labor
pool to look for jobs. Average Hourly Earnings, a proxy for wage growth, rose at a moderate
2.6% annual rate.
The future of Fannie Mae and Freddie Mac made the headlines this week when the Mortgage
Bankers Association (MBA) released its restructuring proposal. While the MBA suggested the
elimination of the two agencies, it would replace them with new entities which would perform
many of the same functions, with many of the same people. Its plan would maintain a
government guarantee of principal and interest for MBS investors. The two agencies have
played a pivotal role in keeping mortgage rates low and in expanding homeownership, and the
MBA proposal would retain these benefits. It’s very early in the process, and the Obama
administration indicated that its proposals for Fannie and Freddie may not be revealed until
early next year.
Also Notable:
July Pending Home Sales rose to the highest level since June 2007
The European Central Bank (ECB) held interest rates steady
The Treasury announced that it will auction $70 billion next week
The Fed purchased $26 billion in agency MBS during the week ending 9/2
Week Ahead
Treasury auctions may have the greatest impact on mortgage rates next week. There will be
$70 billion in 3-yr, 10-yr, and 30-yr auctions on Tuesday, Wednesday, and Thursday. It will be a
light week for economic data. The Fed’s Beige Book will be released on Wednesday, and the
Trade Balance will come out on Thursday. Import Prices and Consumer Sentiment are
scheduled for Friday. Mortgage markets will be closed on Monday for Labor Day.
Fairway Mortgage in Winston Salem can be reached at (336) 714-1560.
Time is Winding Down for First Time Home Buyers Tax Credit
First time home buyers who want to take advantage of the $8000 Tax Credit need to be looking aggressively for a home. The deadline to qualify is to be closed on a home by Novermber 30, 2009. A real estate transaction in NC typically takes at least 30 days to close, but can take longer. So, to ensure this, a buyer should be under contract on a home by the middle of October to leave room for any potential delays in closing. If you are a first time home buyer, you need the assistance of a Realtor. Please give me a call or text at 336-462-9544 so we can help fulfill your dream of owning a home.
You will absolutely love this stunning home. It has superb details and is in a gated community! It is the Builders Personal Home and has lots of extras and sits on almost one acre. You will enjoy the Very open floor plan with Gourmet Kitchen, Granite Island, stainless appliances, two vent free fireplaces, office, and screened in porch. There is a Heated Tile Floor in the Master Bathroom. The Finished lower level has 10′ ceilings, family room, game area, two bedrooms each with it’s on private bathroom, a kitchen, exercise room and plenty of storage. The lower level exits on to the covered patio with fireplace and hot tub. It has 3 garage spaces on the main level. Truly Exceptional. Call agent for more details.
November at $162,645, however a bit lower than $163,688 of December last year. The local board of Realtors (Winston Salem Regional Association of Realtors – WSRAR) is pleased with this progress locally based on many markets around the country showing a decline. Read the whole article below.
