Sticks in the Ground

Houston Housing Cools

An anticipated property sales slowdown hit the Houston real estate market in July following the expiration of the federal homebuyer tax credit. The credit had propelled local home sales for four straight months; however home sales suffered a double-digit decline in July. Despite the drop, the average price of a single-family home still managed to climb to a two-year high.

According to the latest monthly data compiled by the Houston Association of REALTORS® (HAR), July sales of single-family homes throughout the Houston area fell 25.1 percent compared to July 2009. Sales volume faltered in all single-family home pricing segments except for the segment of properties priced under $80,000, which was flat.

The average price of a single-family home rose 2.7 percent from July 2009 to $224,764, the highest price since June 2008. The July single-family home median price—the figure at which half of the homes sold for more and half sold for less—dipped 0.7 percent from one year earlier to $160,880.

The number of available properties, or active listings, at the end of July rose 18.6 percent from July 2009 to 55,247. That represents 1,313 more active listings than one month earlier, in June 2010, and reflects additional housing inventory that is remaining on the market as a result of reduced consumer interest following the expiration of the homebuyer tax credit.

Month-end pending sales for July totaled 3,267, down 16.4 percent from last year, suggesting that sales will be down again in August. The month’s inventory of single-family homes for June extended to 7.7 months compared to 6.5 months one year earlier, but remains healthier than the national month’s inventory of single-family homes of 8.9 months, as reported by the National Association of REALTORS®.

.....blogging from Kingwood, TX

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Time Is Running Out

 

UPDATE 2/24/10  

There are less than 66 days left in which to enter a contract to purchase a home and qualify for the Homebuyer’s Tax Credit.

Here is a great new website that explains all there is to know about the tax credit, It also has an ELIGIBILITY TEST to help you assess your individual situation. The site is Homebuyer Tax Credit

.....blogging from Kingwood, TX

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New Rules Improve Mortgage Info for Home Buyers

Two federal agencies have adopted rules that change what information lenders, mortgage brokers, and closing agents provide to borrowers regarding mortgage loans. The intent is to improve the information provided in order to help a home buyer make a more informed decision. With the new rules comes potential closing delays. Here's a brief overview of the changes.

The Fed’s 3 day Rule – “Early Disclosure”
The Federal Reserve Board now requires Lenders to provide a good faith estimates (GFE) of loan costs within three business days of a borrower's loan application. The new rules also prohibit the closing from taking place until seven days after the borrower receives this so-called “early disclosure”. The rules prohibit a lender from collecting fees from the borrower before the borrower receives the early disclosure, other than a reasonable fee for obtaining a credit report. If the interest rate of the proposed loan increases by .0125%, a new disclosure must be provided and 3 days are added to the closing cycle. This rule applies to the purchase of primary and secondary residences. Along with refinance transactions and home equity loans. Investment properties are exempt.

Standardized GFE & Coordinated HUD-1
As of Jan. 1, 2010, The US Department of Housing and Urban Development will requires a new good faith estimates (GFE) form and a new HUD-1 settlement statement. The new good faith estimates form is intended to better disclose key loan terms and costs. Its terminology will match the items presented on the new HUD-1 statement, facilitating easy comparison. Besides clearly comparing consumers' estimated and actual costs, the new HUD-1 statement will highlight the mortgage as FIXED or VARIABLE and will specifically state any PREPAYMENT PENALTIES or BALOON PAYMENTS included in the mortgage agreement.

.....blogging from Kingwood, TX

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Unintended Consequences – Protect Your Credit Score

The goal is to keep your credit history as clean as possible. With increasingly stringent requirements for mortgage loans, car loans, home improvement loans, you name it, a good CREDIT SCORE is more important than ever before.

You would think that if you have credit cards which you use infrequently that you would be better off if you close them out, simplifying your credit card holdings. Turns out that doing so may actually cause your CREDIT SCORE to drop.

One of the key factors in determining your CREDIT SCORE is the ratio between the amount you owe and the total amount of credit you command. This simple math ratio deteriorates if you eliminate a good size credit line (your credit card limit) and do nothing to proportionally reduce your debt balance at the same time.

Think twice before you cancel that card, it may not be in your best interest to do so. You should also note that certain banks will unilaterally cancel your card if there is little or no activity for an extended period of time.

Now, more than ever, its important to be pro-active in managing your good credit standing. 

.....blogging from Kingwood, TX

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Technorati Tags: Housing,Credit Score

$8,000 FIRST TIME HOMEBUYER INCENTIVE AVAILABLE IN ADVANCE

NEW YORK (CNNMoney.com) – The U.S. Department of Housing and Urban Development (HUD) recently announced that its $8,000 incentive for first-time homebuyers has been revised from a refund at tax time to cash made available for assistance on down payments or closing costs.

The mechanics of the new program, according to National Association of Home Builders economist Robert Dietz, allow lenders to purchase tax credits from the buyers and then collect the rebate from the IRS.

Homebuyers must still come up with the Federal Housing Administration's mandatory down payment of 3.5 percent on their own, but they can use the tax credit to lower their principal balance and save on monthly payments.

"Families will now be able to apply their anticipated tax credit toward their home purchase right away,” said HUD secretary Shaun Donovan. “What we're doing will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing."

.....blogging from Kingwood, TX

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Technorati Tags: Housing,Tax Credit

First Time Homebuyer’s Tax Credit ….. Do You Qualify ?

First time home buyers may qualify for a substantial tax credit when they pay their 2008 or 2009 federal income tax. Here is how it works.

First of all your home must be purchase between April 9, 2008 and July 1, 2009 and you must never have owned a home before that served AS YOUR PRINCPAL RESIDANCE. It's ok if, DURING THE LAST THREE YEARS, you owned a home which was not your principal residence ( maybe you're an investor / landlord). IF you are married, the three year rule applies to your spouse as well.

If your adjusted gross income is $75,000 or less, the tax credit is equal to 10% of the purchase price of your home to a maximum of $7,500. If your AGI exceeds $75k, the credit is reduced proportionately until it dwindles to $0.00 at the $95k AGI level. Married couples have an AGI range of $150k to $170k to work within.

Here's the kicker. You have to REPAY this tax credit. You start paying the credit back after two years. As long as you still live in the house, you have 15 years from when you start to repay the credit; that works out to be a max of $500 per year. Not all that bad. BUT, if you sell the house you must pay it back in the year of the sale.

One nice benefit if you purchase your home in 2009, you can file an amended tax return for 2008 and get your credit sooner than you would  by waiting until your 2009 filing.

Visit us on the web at KingwoodTxHomesForSale.com

... blogging from Kingwood, TX

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Fingerprints & Background Checks

With the new year comes new requirements for Texas real estate brokers and salespeople. Now, before a person can apply for or renew their real estate license, they must be fingerprinted and submit to an FBI background check. Although fingerprinting is a one time requirement, effective January 2008, the FBI background check will be performed EVERY time the real estate license is renewed, typically every two years. The process is administered by the Texas Department of Public Safety.

This requirement is a positive step in an ongoing effort to safeguard the public and monitor the integrity of the real estate practitioner. As a consumer of real estate services YOU deserve the best representation possible.

Visit us on the web at KingwoodTxHomesForSale.com

... blogging from Kingwood, TX

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Free Credit Report

Did you know that you are entitled to a free copy of your credit report from each of the nationwide credit reporting bureaus each year?

Recent amendments to the Fair Credit Reporting Act require Equifax, Experian and TransUnion to provide you with a report containing your consumer payment history, loan balances and other personal and financial information typically used by lenders and insurers.

As a prospective home buyer, taking advantage of these free reports can help you avoid surprises when you apply for a loan. You want to check these reports for accuracy and work to clear up any discrepancies BEFORE you find your next home.

Reviewing these reports is also an excellent way to combat potential identity theft. Request a report from one of the three bureaus every four month to minimize your exposure.

To receive your free reports go to AnnualCreditReport.com or call toll-free 877-322-8228. You will need to supply personal information such as your name, date of birth, Social Security number, current address and past address to verify your identity.

I used the service provided by Equifax to obtain my first free report. I found the information to be complete and accurate. What was missing was an actual "credit score". But, for a modest $5.00 fee I was able to get an estimated credit score from Equifax that was useful.

I had some difficulty using TransUnion's service and finally gave up. They were unable to give me an on-line report and wanted me to call them. That kind of defeats the purpose, doesn't it. I suspect they had difficulty identifying Kingwood, since we are serviced by the Humble TX post office and are part of the City of Houston.

By the way, Equifax has a very good educational site for learning the basics about credit. Especially if you are considering purchasing your first home. VISIT THIS SITE. Having and maintaining a good credit record is the first step in ensuring long term home ownership.

.... blogging from Kingwood, TX

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