Senate Votes to pass Housing Tax Credit
The Senate just voted 98-0 to pass the Tax Credit [within the Unemployment Bill]. It now goes to the House. Expect House leadership to place the bill on a fast track for passage on Thursday. It could get to the President on Friday. John DiBiase Government Affairs Communications Director National Association of REALTORS®
Thursday, November 5, 2009
Monday, November 2, 2009
Will Expected Extension of Homebuyer Tax Credit Help Our Real Estate Clients?
Will the Expected Extension of the US Homebuyer Tax Credit help business in our state, be a boost for our clients, the housing market and be good for our US and local economies?
Good question, and we will all see what develops, whether the measure can be worked out between Senate and Congress, and if it passes whether Obama will sign it into law. Then we'll see how buyers and consumers react between December 1 and April 30 of next year.
WE NEED ENCOURAGEMENT FOR HOME SELLERS HERE AT RIVERSIDE COUNTY. Too many are nervous and waiting to sell their homes.
This new measure could possibly encourage more owners to be sellers, to have positive expectations and get their homes cleaned up and ready for market and sale.
The government's first-time home buyer $8,000 tax credit has inspired a lot of sales this year, estimated as many as 400,000 by the time the program ends on November 30.
US Senate negotiators have agreed on a tentative deal on extending and slightly expanding the tax credit.
•$8,000 tax credit extension would cover first-time home buyers who sign a contract for a home by the end of April 2010 and close by the end of June 2010.
•Creates a $6,500 tax credit for those who buy a home, but have owned a home for at least five consecutive years out of the past eight years.
•Under the $8,000 tax credit extension, income limit would be raised to $125,000 a year for individuals and $225,000 for married couples.
Like most REALTORS and real estate professionals, we are concerned about business and our economy, employment in California, and are in favor of this homebuyer tax credit extension. We believe it can help improve our US and local economies, put buyer consumer money back into the markets, and assist to create jobs in this important real estate industry.
Good question, and we will all see what develops, whether the measure can be worked out between Senate and Congress, and if it passes whether Obama will sign it into law. Then we'll see how buyers and consumers react between December 1 and April 30 of next year.
WE NEED ENCOURAGEMENT FOR HOME SELLERS HERE AT RIVERSIDE COUNTY. Too many are nervous and waiting to sell their homes.
This new measure could possibly encourage more owners to be sellers, to have positive expectations and get their homes cleaned up and ready for market and sale.
The government's first-time home buyer $8,000 tax credit has inspired a lot of sales this year, estimated as many as 400,000 by the time the program ends on November 30.
US Senate negotiators have agreed on a tentative deal on extending and slightly expanding the tax credit.
•$8,000 tax credit extension would cover first-time home buyers who sign a contract for a home by the end of April 2010 and close by the end of June 2010.
•Creates a $6,500 tax credit for those who buy a home, but have owned a home for at least five consecutive years out of the past eight years.
•Under the $8,000 tax credit extension, income limit would be raised to $125,000 a year for individuals and $225,000 for married couples.
Like most REALTORS and real estate professionals, we are concerned about business and our economy, employment in California, and are in favor of this homebuyer tax credit extension. We believe it can help improve our US and local economies, put buyer consumer money back into the markets, and assist to create jobs in this important real estate industry.
Wednesday, October 7, 2009
New Housing Bill Will Force Loan Modification.
Four senators are putting their muscle behind a new housing bill intended to prohibit lenders operating in the U.S. from foreclosing on home owners without first having discussed reasonable modification options with the borrowers.
The bill, called the Preserving Homes and Communities Act is being sponsored by Rhode Island Senator Jack Reed, Illinois Senator Dick Durbin, Jeff Merkley of Oregon and Sheldon Whitehouse of Rhode Island.
Under this bill, lenders will be forced to the negotiating table under the threat of stiff fines and other legal penalties.
All lenders will be required to perform what the bill terms as a "net present value" test for all seriously delinquent borrowers. The test would be a financial analysis weighing the benefits of a modification of loan terms against the benefits of foreclosure.
For borrowers who do not fit into this program, the bill would create a multi-billion national fund for states to make loans or grants in order to prevent foreclosures.
The senators' rationale behind the creation of this bill is that they are frustrated with the slow pace of current loan modification programs and feel that they are not keeping up with the record numbers of foreclosures this year.
"Voluntary efforts to keep families in their homes have failed," said Durbin. "This bill will force lenders to modify qualified mortgages rather than letting them move quickly to foreclosure, which destroys households and neighborhoods."
The act will also set up a mortgage payment assistance program to provide money to state housing agencies to assist people who have lost income and face the prospect of foreclosure.
The most significant aspect of this bill would be to create "mandatory mediation" requirements forcing lenders to allow some mediation efforts between them and their borrowers before being able to file foreclosures against home owners.
This proposal will, no doubt, be met with opposition by banking and mortgage lending groups. It is, however, currently favored to be supported in the House.
The bill, called the Preserving Homes and Communities Act is being sponsored by Rhode Island Senator Jack Reed, Illinois Senator Dick Durbin, Jeff Merkley of Oregon and Sheldon Whitehouse of Rhode Island.
Under this bill, lenders will be forced to the negotiating table under the threat of stiff fines and other legal penalties.
All lenders will be required to perform what the bill terms as a "net present value" test for all seriously delinquent borrowers. The test would be a financial analysis weighing the benefits of a modification of loan terms against the benefits of foreclosure.
For borrowers who do not fit into this program, the bill would create a multi-billion national fund for states to make loans or grants in order to prevent foreclosures.
The senators' rationale behind the creation of this bill is that they are frustrated with the slow pace of current loan modification programs and feel that they are not keeping up with the record numbers of foreclosures this year.
"Voluntary efforts to keep families in their homes have failed," said Durbin. "This bill will force lenders to modify qualified mortgages rather than letting them move quickly to foreclosure, which destroys households and neighborhoods."
The act will also set up a mortgage payment assistance program to provide money to state housing agencies to assist people who have lost income and face the prospect of foreclosure.
The most significant aspect of this bill would be to create "mandatory mediation" requirements forcing lenders to allow some mediation efforts between them and their borrowers before being able to file foreclosures against home owners.
This proposal will, no doubt, be met with opposition by banking and mortgage lending groups. It is, however, currently favored to be supported in the House.
Monday, September 21, 2009
How to keep your team from getting distracted by social networking.
Three Minute Coach
How to keep your team from getting distracted by social networking.
Always: Ensure that every employee knows what work is critical.
Our research shows that about 50 percent of all work is "fake work," or work that is not directly linked to organizational strategy. Social networking and other workplace distractions are symptoms of a common problem—workers without clear expectations. Always translate organizational strategies into clear tasks and provide a forum for team discussion and alignment among coworkers. Alignment requires a concerted effort to create ownership, determine task importance, coordinate workloads and establish accountability for results.
Sometimes: Meet and have strategic conversations and reinforce accountability. Use real work tasks—those that are critical and connected to strategy—to manage and monitor performance. Managers should avoid noticing and rewarding noncritical work. Instead, review the obstacles and resource issues that obstruct real work and let the team help curb social networking distractions.
Never: Assume that strategies are understood and are finding their way into daily work. Managers think they can align people, but employees must adjust and find ways to drive strategies day to day. You can't ignore distracting behaviors, but ultimately you have to focus on monitoring real work tasks and expected outcomes. In areas like IT, exciting new projects often dominate, and strategic links are ignored. Most people don't like doing fake work. They want to accomplish work of value.
Gaylan Nielson and Brent Peterson have been organizational consultants for over 20 years working with Fortune 1000 companies and their subsidiaries all over the world. You can find them at www.fakework.com.
© 2008 CXO Media Inc
How to keep your team from getting distracted by social networking.
Always: Ensure that every employee knows what work is critical.
Our research shows that about 50 percent of all work is "fake work," or work that is not directly linked to organizational strategy. Social networking and other workplace distractions are symptoms of a common problem—workers without clear expectations. Always translate organizational strategies into clear tasks and provide a forum for team discussion and alignment among coworkers. Alignment requires a concerted effort to create ownership, determine task importance, coordinate workloads and establish accountability for results.
Sometimes: Meet and have strategic conversations and reinforce accountability. Use real work tasks—those that are critical and connected to strategy—to manage and monitor performance. Managers should avoid noticing and rewarding noncritical work. Instead, review the obstacles and resource issues that obstruct real work and let the team help curb social networking distractions.
Never: Assume that strategies are understood and are finding their way into daily work. Managers think they can align people, but employees must adjust and find ways to drive strategies day to day. You can't ignore distracting behaviors, but ultimately you have to focus on monitoring real work tasks and expected outcomes. In areas like IT, exciting new projects often dominate, and strategic links are ignored. Most people don't like doing fake work. They want to accomplish work of value.
Gaylan Nielson and Brent Peterson have been organizational consultants for over 20 years working with Fortune 1000 companies and their subsidiaries all over the world. You can find them at www.fakework.com.
© 2008 CXO Media Inc
Wednesday, August 26, 2009
Economic update
LOS ANGELES (Aug. 25) – Home sales increased 12 percent in July in California compared with the same period a year ago, while the median price of an existing home declined 19.6 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
“The federal tax credit for first-time buyers played a critical role in the purchase decision of many buyers,” said C.A.R. President James Liptak. “Nearly 40 percent of first-time buyers said they would not have purchased a home if the tax credit was not offered.
“Because the tax credit has helped so many first-time buyers become homeowners, it is critical that Congress extends the credit beyond the Dec. 1 deadline, and includes all buyers, not just first-timers.”
Closed escrow sales of existing, single-family detached homes in California totaled 553,910 in July at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 12 percent from the revised 494,390 sales pace recorded in July 2008. Sales in July 2009 increased 8.1 percent compared with the previous month.
The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The median price of an existing, single-family detached home in California during July 2009 was $285,480, a 19.6 percent decrease from the revised $355,000 median for July 2008, C.A.R. reported. The July 2009 median price rose 3.9 percent compared with June’s $274,740 median price.
“July marked the fifth consecutive month of month-to-month increases in the median price,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “This was the largest increase on record for the month of July based on statistics dating back to 1979. The yearly decline in July also was the smallest in the past 19 months.
“The federal tax credit for first-time buyers played a critical role in the purchase decision of many buyers,” said C.A.R. President James Liptak. “Nearly 40 percent of first-time buyers said they would not have purchased a home if the tax credit was not offered.
“Because the tax credit has helped so many first-time buyers become homeowners, it is critical that Congress extends the credit beyond the Dec. 1 deadline, and includes all buyers, not just first-timers.”
Closed escrow sales of existing, single-family detached homes in California totaled 553,910 in July at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 12 percent from the revised 494,390 sales pace recorded in July 2008. Sales in July 2009 increased 8.1 percent compared with the previous month.
The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The median price of an existing, single-family detached home in California during July 2009 was $285,480, a 19.6 percent decrease from the revised $355,000 median for July 2008, C.A.R. reported. The July 2009 median price rose 3.9 percent compared with June’s $274,740 median price.
“July marked the fifth consecutive month of month-to-month increases in the median price,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “This was the largest increase on record for the month of July based on statistics dating back to 1979. The yearly decline in July also was the smallest in the past 19 months.
Wednesday, August 12, 2009
California Housing Market shows signs of recovery!
The median price of a home in California rose for the fourth straight month in June. State wide the median price was $274,740 up 4.2 percent from May but still 26.4% below last June.
June sales slipped 6% from May but showed a 20.1 percent increase over the same period one year ago. While gains are expected be higher during the remaining months of 2009, they gains will not be quite as steep according to CAR economists.
Gains in sales for the first half of 2009 exceeded last year’s pace by 50.6% and are expected to be around 25% ahead of last years pace at year end.
The unsold inventory index in June was at 4.1 months and has decreased at a steady pace from the first of the year when it stood at 6.6 months and is well below the peak of 16.6 months in early 2008. The low inventory may contribute to an upward pressure on home prices.
Folks better gem 'em while they're cheap!!
June sales slipped 6% from May but showed a 20.1 percent increase over the same period one year ago. While gains are expected be higher during the remaining months of 2009, they gains will not be quite as steep according to CAR economists.
Gains in sales for the first half of 2009 exceeded last year’s pace by 50.6% and are expected to be around 25% ahead of last years pace at year end.
The unsold inventory index in June was at 4.1 months and has decreased at a steady pace from the first of the year when it stood at 6.6 months and is well below the peak of 16.6 months in early 2008. The low inventory may contribute to an upward pressure on home prices.
Folks better gem 'em while they're cheap!!
Tuesday, July 28, 2009
Valley home sales up 30% as buyers jump on deals
Valley home sales up; prices dip
Home sales rose 20 percent across the state in June as the Coachella Valley continued to post sales volume gains.
“The trend we are seeing is that prices are stabilizing and sales are spiking, so buyers are getting the message that this is not a time to linger if they are in the hunt to buy a home,'' said Greg Berkemer, executive director of the California Desert Association of Realtors.
Valley home sales rose 30 percent, with 2,898 transactions noted from April to June.
That's up from 2,222 sales during the same period last year, according to Multiple Listing Service data released by the Desert Association of Realtors.
The average MLS home sale price in the valley from April to June was $257,427, up from $250,935 from January through March.
“There was a slight tick up of the average sales price in the second quarter, and people are starting to notice that,” Berkemer said.
But Patrick Veling, president and founder of Brea-based Real Data Strategies, said the enthusiasm about rising home sales must be tempered with statistics that show home sales are largely occurring at entry-level price ranges.
“There's been about a 20 percent increase in sales activity, but that's occurring only when compared to record lows,'' he said.
Average home sale prices are down dramatically from a year ago: The fall in prices nearly equates to two homes for the price of one. Last year, the average MLS sale price on a single-family home was $486,694 in the first three months. It averaged $454,706 from April to June 2008.
The median price of all homes sold in May in the Coachella Valley — that would include existing single-family homes, condos and new construction — was $180,000. That's down 41 percent from a year ago.
The price points have been a catalyst for sales.
James Liptak, president of the California Association of Realtors, said June marked the 10th consecutive month of positive sales gains for resale homes across the state.
“Many first-time buyers, especially those who were previously priced out of certain areas, are realizing that tax credits from both the state and federal governments increased affordability, and low-interest rates are creating a prime time to purchase a home,'' he said.
It was the fourth month of rising median home prices across California, Liptak said.
The state median of $274,740 rose 4.2 percent from May to June but was down nearly $100,000 from one year ago. The state median in June 2008 was $374,100.
Closed escrow sales across California totaled 514,110 in June at a seasonally adjusted rate. The sales pace recorded in June 2008 was 427,910 closed escrow sales.
Home sales rose 20 percent across the state in June as the Coachella Valley continued to post sales volume gains.
“The trend we are seeing is that prices are stabilizing and sales are spiking, so buyers are getting the message that this is not a time to linger if they are in the hunt to buy a home,'' said Greg Berkemer, executive director of the California Desert Association of Realtors.
Valley home sales rose 30 percent, with 2,898 transactions noted from April to June.
That's up from 2,222 sales during the same period last year, according to Multiple Listing Service data released by the Desert Association of Realtors.
The average MLS home sale price in the valley from April to June was $257,427, up from $250,935 from January through March.
“There was a slight tick up of the average sales price in the second quarter, and people are starting to notice that,” Berkemer said.
But Patrick Veling, president and founder of Brea-based Real Data Strategies, said the enthusiasm about rising home sales must be tempered with statistics that show home sales are largely occurring at entry-level price ranges.
“There's been about a 20 percent increase in sales activity, but that's occurring only when compared to record lows,'' he said.
Average home sale prices are down dramatically from a year ago: The fall in prices nearly equates to two homes for the price of one. Last year, the average MLS sale price on a single-family home was $486,694 in the first three months. It averaged $454,706 from April to June 2008.
The median price of all homes sold in May in the Coachella Valley — that would include existing single-family homes, condos and new construction — was $180,000. That's down 41 percent from a year ago.
The price points have been a catalyst for sales.
James Liptak, president of the California Association of Realtors, said June marked the 10th consecutive month of positive sales gains for resale homes across the state.
“Many first-time buyers, especially those who were previously priced out of certain areas, are realizing that tax credits from both the state and federal governments increased affordability, and low-interest rates are creating a prime time to purchase a home,'' he said.
It was the fourth month of rising median home prices across California, Liptak said.
The state median of $274,740 rose 4.2 percent from May to June but was down nearly $100,000 from one year ago. The state median in June 2008 was $374,100.
Closed escrow sales across California totaled 514,110 in June at a seasonally adjusted rate. The sales pace recorded in June 2008 was 427,910 closed escrow sales.
Monday, July 27, 2009
Thursday, July 23, 2009
Troubled owners: 3 warnings about short sales
Many struggling homeowners are considering short sales as a way to avoid foreclosure on their homes, but there are a few things they should know before taking the plunge. Source: MSN Real Estate
Click here for more info.
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