29067 Hwy 6 Treynor, IA - Fantastic Horse Acreage on over 8 Acres!! $525,000
Call Tammy Stuart for your tour!!
Tammy Stuart, Broker Associate - Certified Residential Specialist Serving the Council Bluffs. Iowa & Omaha, Nebraska Metro area. “Dedicated to Excellent Client Service, Continuing Education and the Highest Regard for Ethics and Honesty in the Real Estate Profession.”
Thursday, October 11, 2012
Monday, January 30, 2012
Omaha's own Warren Buffet agrees: Now is the Time to Buy a Home!
What Does Warren Buffet Think About Buying A Home?
Warren Buffet is seen by many as the greatest investor of our time. When he speaks, people listen. Like anyone else in his position of influence, he is criticized by some for using his bullhorn to promote his own business agendas at times. That makes it very interesting when we occasionally learn of how heprivately advises those closest to him.
Such a situation occurred this week. Debbie Bosanek, Warren Buffet’s secretary of 37 years, recently purchased a second home in Surprise, Arizona.
In an article in the Omaha World Herald, Mrs. Bosanek discussed her reasons for purchasing a second home and the personal advice she received from Mr. Buffet.
“I just thought it was time to buy a home. Warren tells me that it will be the best opportunity in my lifetime. Mortgage rates are low and prices have dropped dramatically…I share Warren’s view about the future of America, and we believe that our country will do just fine. I’m happy to make this investment.”
The greatest investor of the last century privately has told the people closest to him that buying a home right now “will be the best opportunity in [their] lifetime”.
That’s good enough for us. How about you?
Wednesday, January 11, 2012
The Real Estate Market is Doing Better than Many Believe. ~ Check Out These Stats!
People Are Buying Homes AND GETTING MORTGAGES!
Many believe that very few houses are selling and that almost no one can get a mortgage. We want to let everyone know that neither of these assumptions is true. Recently, the National Association of Realtors (NAR) released theirExisting Homes Sales Report. According to the report there are, on average, 12,109 homes selling in the United States EACH and EVERY DAY! That means that approximately 12,000 houses sold yesterday, approximately 12,000 will sell today and approximately 12,000 will sell tomorrow. So the thinking that homes aren’t selling just isn’t true.
Another interesting fact in the report was that 72% of these transactions were accompanied by a mortgage. That means that approximately 8,719 people qualify for a mortgage on a daily basis in this country.
There are over 12,000 homes sold and over 8,000 mortgages granted every day. The real estate market is doing better than many believe.
INFORMATION PROVIDED BY:
Tuesday, December 13, 2011
Thinking of Selling Your Home Yourself? Are the Potential Risks Worth the Minimal Advantages??
Although their are advantages to selling your own home, more often than not the risks far more outweigh the minimal advantages. Contact Tammy to discuss why it is in your best interest to list with a professional such as a Certified Residential Specialist.
(Tammy Stuart 402.689.1769 Tammy@SOLDbySTUART.com)
FSBO Sellers Decline as More Sellers Turn to Real Estate Agents to Sell the Home
The method most used to sell a home has changed in recent years. A higher share of sellers are relying on the expertise of real estate agents and brokers to sell their home, rather than trying other methods.- From 1991 to 2011 the share of home sellers who used a real estate agent or broker to sell their home increased from 77 percent to 87 percent.
- Over the same time period, the share of sellers who sold their home as a FSBO (For-Sale-By-Owner) decreased from 19 percent to 10 percent.
- Sellers use real estate professionals to help them sell their home in a reasonable timeframe, to market their home to potential buyers, and to price the home competitively.
- For more information on the Profile of Home Buyers and Sellers, click here.
Wednesday, October 12, 2011
"Save 2nd Base" - 1st Annual - Pub Crawl for JEH Breast Health Center - 100 Block, Council Bluffs, Iowa
"Save 2nd Base"
Pub Crawl for JEH Breast Health Center
Date: October 15th 2011
Time: 4p-8p
Crawl from PUB to PUB on the 100 Block
Barleys~Glory Day's~T'z~1892~Beer & Loathing~Fiddln Monkey~Venue 162
Check –in / register – Passage way
3:30-5:30pm
Early Sign-Up - $15/per person
Day of Event - $20/per person
REGISTRATION REQUIRED TO PARTICIPATE & BE ELIGIBLE FOR PRIZES!!
For early sign up:
save2ndbase100block@gmail.com or fax to 712.396.7780
At Check-In receive:
Wrist Band
Button
Player Card
Souvenir Cup
SPECIALS
$2 Draws
$3 Well Drinks
Special PINK Drinks at each location
Proceeds from this event will go to Jennie Edmundson Hospital Breast Health Center to help in their continued efforts to provide FREE screenings, educational opportunities to those in need and to continue awareness in our community.
Contact Tara Slevin or Amber Hawk at Jennie Edmundson Hospital for more info.
A VARIETY OF PINK T-SHIRTS WILL ALSO BE AVAILABLE FOR SALE TO HELP SUPPORT THIS GREAT CAUSE
Tuesday, August 30, 2011
Why You Should Choose a Certified Residential Specialist (CRS)
Why Choose a Certified
Residential Specialist (CRS)
The Answers You Need
In the current marketplace, you need more than just a REALTOR®. You need a professional with the unique training and know-how to create opportunities, identify potential pitfalls up front, and make your home-buying or-selling experience an unqualified success.
You need a Certified Residential Specialist.
What is a Certified
Residential Specialist (CRS)?
A Certified Residential Specialist is a REALTOR® who has earned certification from the Council of Residential Specialists by completing a rigorous course of advanced training and by meeting significant experience requirements. It's this rare combination that makes a Certified Residential Specialist more than just another real estate agent. It's the ability to make a real difference in the purchase or sale of your home that places them among the best in the business. Discover the difference for yourself. And discover how enjoyable and successful a real estate relationship can be.
Benefits for Home Buyers and Sellers:
Less than 4 percent of the more than one million REALTORS® in business today hold the prestigious Certified Residential Specialist (CRS) Designation, the highest professional designation awarded to REALTORS® in the residential sales field. That's because just one in 25 has the experience, the commitment and the hours of advanced training necessary to call themselves a Certified Residential Specialist. Yet, despite all the extra expertise you get, a Certified Residential Specialist doesn't cost any more than any other REALTOR®. In fact, the skills and know-how you get with a Certified Residential Specialist may actually save you time and money.
And that's just the beginning. Here are some of the other reasons you should consider hiring a Certified Residential Specialist when you buy or sell a home.
4 Reasons to Work With the Top 4%
Experience
A hallmark of the Certified Residential Specialist isn't just the advanced training and education they receive. Just as important is the marketplace expertise they bring to the sale or purchase of your home. To earn the Certified Residential Specialist Designation, every REALTOR® must have significant experience and a number of real estate transactions. These strict requirements are your assurance that your Certified Residential Specialist is able to apply his or her education in the real world, giving you the knowledgeable, skilled service you expect.
Ethics
Ethics aren't just important in a REALTOR®. They're essential. That's why every Certified Residential Specialist is required to maintain membership in the NATIONAL ASSOCIATION OF REALTORS® and to abide by its strict Code of Ethics. That means, when you work with a Certified Residential Specialist, you can rest assured you're dealing with a trained real estate expert who will treat you fairly and professionally every step of the way.
A Focus on Home Buying and Selling
Whether you're looking to buy or sell a home, you face many risks along the way - financial risks, legal risks, even the risk that a home purchase or sale will fall through. A Certified Residential Specialist is trained to minimize those risks.
With that in mind, a Certified Residential Specialist is prepared to bring you the benefits of their significant experience and variety of successful real estate transactions. That expertise, combined with advanced education in areas like finance, technology and marketing, lets you know that your Certified Residential Specialist is able to make your home purchase or sale a success in every way.
Technological Expertise
Technology is changing the face of real estate. Computers, the Internet, mobile communications - each has helped make the market more efficient, and at the same time, more daunting. More than ever, the success of your home purchase or sale depends on the ability of your REALTOR® to harness that technology and make it work for you. For that reason, the training required of your Certified Residential Specialist focuses extensively on technology and its effect on the real estate business. You can count on a Certified Residential Specialist not just to understand technology, but to use it to make your home purchase or sale a worry-free experience.
Information Provided by: Council of Residential Specialists
The Council of Residential Specialists is the largest not-for-profit affiliate of the NATIONAL ASSOCIATION OF REALTORS®, with its headquarters in Chicago, Ill. It is composed of over 38,000 Certified Residential Specialists (CRS) Designees and Candidates/General Members.
Why You Should Choose a Certified Residential Specialist (CRS)
Why Choose a Certified
Residential Specialist (CRS)
The Answers You Need
In the current marketplace, you need more than just a REALTOR®. You need a professional with the unique training and know-how to create opportunities, identify potential pitfalls up front, and make your home-buying or-selling experience an unqualified success.
You need a Certified Residential Specialist.
What is a Certified
Residential Specialist (CRS)?
A Certified Residential Specialist is a REALTOR® who has earned certification from the Council of Residential Specialists by completing a rigorous course of advanced training and by meeting significant experience requirements. It's this rare combination that makes a Certified Residential Specialist more than just another real estate agent. It's the ability to make a real difference in the purchase or sale of your home that places them among the best in the business. Discover the difference for yourself. And discover how enjoyable and successful a real estate relationship can be.
Benefits for Home Buyers and Sellers:
Less than 4 percent of the more than one million REALTORS® in business today hold the prestigious Certified Residential Specialist (CRS) Designation, the highest professional designation awarded to REALTORS® in the residential sales field. That's because just one in 25 has the experience, the commitment and the hours of advanced training necessary to call themselves a Certified Residential Specialist. Yet, despite all the extra expertise you get, a Certified Residential Specialist doesn't cost any more than any other REALTOR®. In fact, the skills and know-how you get with a Certified Residential Specialist may actually save you time and money.
And that's just the beginning. Here are some of the other reasons you should consider hiring a Certified Residential Specialist when you buy or sell a home.
4 Reasons to Work With the Top 4%
Experience
A hallmark of the Certified Residential Specialist isn't just the advanced training and education they receive. Just as important is the marketplace expertise they bring to the sale or purchase of your home. To earn the Certified Residential Specialist Designation, every REALTOR® must have significant experience and a number of real estate transactions. These strict requirements are your assurance that your Certified Residential Specialist is able to apply his or her education in the real world, giving you the knowledgeable, skilled service you expect.
Ethics
Ethics aren't just important in a REALTOR®. They're essential. That's why every Certified Residential Specialist is required to maintain membership in the NATIONAL ASSOCIATION OF REALTORS® and to abide by its strict Code of Ethics. That means, when you work with a Certified Residential Specialist, you can rest assured you're dealing with a trained real estate expert who will treat you fairly and professionally every step of the way.
A Focus on Home Buying and Selling
Whether you're looking to buy or sell a home, you face many risks along the way - financial risks, legal risks, even the risk that a home purchase or sale will fall through. A Certified Residential Specialist is trained to minimize those risks.
With that in mind, a Certified Residential Specialist is prepared to bring you the benefits of their significant experience and variety of successful real estate transactions. That expertise, combined with advanced education in areas like finance, technology and marketing, lets you know that your Certified Residential Specialist is able to make your home purchase or sale a success in every way.
Technological Expertise
Technology is changing the face of real estate. Computers, the Internet, mobile communications - each has helped make the market more efficient, and at the same time, more daunting. More than ever, the success of your home purchase or sale depends on the ability of your REALTOR® to harness that technology and make it work for you. For that reason, the training required of your Certified Residential Specialist focuses extensively on technology and its effect on the real estate business. You can count on a Certified Residential Specialist not just to understand technology, but to use it to make your home purchase or sale a worry-free experience.
Information Provided by: Council of Residential Specialists
The Council of Residential Specialists is the largest not-for-profit affiliate of the NATIONAL ASSOCIATION OF REALTORS®, with its headquarters in Chicago, Ill. It is composed of over 38,000 Certified Residential Specialists (CRS) Designees and Candidates/General Members.
Thursday, August 18, 2011
HOLY HAIL!! ~ Now what?? - Council Bluffs Hail Storm 8.18.11
WOW! What a storm that was! It hit my neighborhood pretty hard and it sounds as though it was city wide!
You may be asking yourself...
Now what??
If you own real estate be sure to notify your insurance company of potential damage within the next few days.
If you aren't 100% sure whether you sustained damage your insurance company may advise you to first seek a damage assessment from a local contractor to avoid filing an unnecessary claim.
If there is damage you will want to get an exact assessment of damage from a local contractor, and then you will want to share this information with your insurance company.
If a claim is necessary your agent will have an adjustor come out to do their own damage (loss) estimate.
Insurance companies vary on their procedures for filing a claim so be sure to talk with your agent, or refer to their website.
Also important to Remember: AVOID STORM CHASER CONTRACTORS if at all possible. These are contractors that go state to state chasing storms to find work. ALWAYS HIRE A REPUTABLE, LOCAL CONTRACTOR FIRST!!
I have many business contacts in the home contracting trades, so never hesitate to call me for a reference!
~ Tammy
Monday, June 27, 2011
The American Red Cross Opens Emergency Aid Station in Council Bluffs
COUNCIL BLUFFS, Iowa, Saturday, June 25, 2011 --The American Red Cross is offering an alternative for people who either need to move out of their residence or just are concerned about being there in the face of the threatening waters. An Emergency Aid Station will open tonight at 6:00 p.m. for individuals and families who will be able to check in 24 hours a day for information, a meal, shower, nap or in special circumstances, a safe bed for the night just until they can make other provisions. The temporary Emergency Aid Station is intended for citizens of Council Bluffs, but as is always the case with the Red Cross, no one in need is turned away.
Located at First Assembly of God, 3320 Harry Langdon Blvd., Red Cross officials emphasized that this is a temporary safe refuge in the storm. Three shelters, operated by the Red Cross, are open and located at Missouri Valley High School, 605 Lincoln Highway; Peru State College – J. F. Neal Hall, 600 Hoyt St., in Peru, and East Mills High School, 1505 E. 15th St., Malvern. Shelters remain on standby in Douglas, Cass, Sarpy, Dixon, Cedar, Thurston, Washington and Pottawattamie. Additional sites are on standby should the need arise.
More information is available by calling 1-800-RED-CROSS (1-800-733-2767) between 8 a.m. and 7 p.m.
Make a donation:
The Red Cross depends on financial donations to help in times of disaster. Those who want to help people affected by disasters like tornadoes, floods and wildfires, as well as countless crises at home and around the world, can make a donation to support American Red Cross Disaster Relief. This gift enables the Red Cross to prepare for and provide shelter, food, emotional support and other assistance in response to disasters. Visit www.redcross.org or call 1-800-RED-CROSS; people can also text the word “REDCROSS” to 90999 to make a $10 donation. Contributions may also be sent to local American Red Cross chapters or to the American Red Cross, P.O. Box 37243, Washington, DC 20013.
About the American Red Cross:
The American Red Cross shelters, feeds and provides emotional support to victims of disasters; supplies nearly half of the nation’s blood; teaches lifesaving skills; provides international humanitarian aid; and supports military members and their families. The Red Cross is a charitable organization – not a government agency – and depends on volunteers and the generosity of the American public to perform its mission. For more information, please visit www.redcross.org or join our blog at http://blog.redcross.org/.
by American Red Cross Heartland Chapter on Saturday, June 25, 2011 at 5:38pm
by American Red Cross Heartland Chapter on Saturday, June 25, 2011 at 5:38pm
Friday, April 8, 2011
What a Government Shutdown Means for REALTORS® & their Clients
What a Government Shutdown Means for REALTORS®
(April 5, 2011)The current continuing resolution (CR) providing funding for government operations is set to expire on April 8, 2011. If legislation providing for funding is not signed into law to extend funding after April 8, the federal government could shut down. This means many, but not all, government programs, including some that impact federal housing and mortgage programs, could grind to a halt as early as April 9, 2011. While the true impact of a shutdown is unclear until it actually begins below is a synopsis of how federal housing programs will likely operate in the event of a shutdown. The Office of Management and Budget (OMB) requires each agency to have contingency plans in place and reportedly has instructed agencies to not provide specific information on impacted operations.
Federal Housing Administration
FHA cannot offer endorsements for any new loans in the Single Family Program and cannot make commitments in the Multi-family Program in the event of a shutdown. FHA will maintain operational activities including paying claims and collecting premiums. Management & Marketing (M&M) Contractors managing the REO portfolio can continue to operate.VA Loan Guaranty Program
Lenders may continue to process and guaranty mortgages through the Loan Guaranty program in the event of a government shutdown.Internal Revenue Service (IRS)
Should the federal government shut down, the IRS cannot process federal income tax returns or issue refunds (but it can deposit tax payments). Consumers who were expecting to use their tax returns as part of the down payment for a home purchase will temporarily not have access to these refunds.Flood Insurance
The Federal Emergency Management Agency (FEMA) confirmed that the National Flood Insurance Program (NFIP) will not be impacted by a government shutdown.Rural Housing Programs
For the US Department of Agriculture programs, essential personnel working during a shutdown do not include field office staff who typically issue conditional commitments, loan note guarantees, and modification approvals. Thus, lender will not receive approvals during the shutdown. If the lender has already received a conditional commitment from the Rural Development office, then the lender may proceed to close those loans during the shutdown. A conditional commitment, which is good for 90 days, is given to a lender once a USDA Underwriter approves the loan. If a commitment was already issued, the funds were already set aside and the lender may close the loan at its leisure. If Rural Development has not issued a conditional commitment, the lender must wait until funding legislation is enacted before closing a loan.Government Sponsored Enterprises
Fannie Mae and Freddie Mac will continue operating normally, as will their regulator, the Federal Housing Finance Agency.Treasury
No official word as of yet, but the Making Home Affordable program, including HAMP and HAFA, may not be affected as the program is funded through the Emergency Economic Stabilization Act which is mandatory spending not discretionary.Background Information on Government Shutdown
HJ Res. 48 extends the Continuing Appropriations Act, 2011 (Public Law 112-6) to April 8, 2011. If another continuing resolution (CR) or budget is not signed into law, the federal government could shut down on April 9, 2011. This requires the furlough of non-emergency personnel and the curtailment of federal agency activities. Federal contractors cannot be paid. Programs funded by annual appropriations are directly impacted though programs funded by laws other than appropriations (such as Social Security) may also be impacted. The last government shutdown occurred during fiscal year (FY) 1996 and lasted 21 days, from December 16, 1995 through January 6, 1996.The Anti-Deficiency Act is the primary law preventing government activity when no budget or CR is enacted. The act, found in 31 U.S.C., prohibits:
- Making or authorizing an expenditure from, or creating or authorizing an obligation under, any appropriation or fund in excess of the amount available in the appropriation or fund unless authorized by law.
- Involving the government in any obligation to pay money before funds have been appropriated, unless otherwise allowed by law.
- Accepting voluntary services for the United States, or employing personal services not authorized by law, except in cases of emergency involving the safety of human life or the protection of property.
- Making obligations or expenditures in excess of an apportionment or reapportionment, or in excess of the amount permitted by agency regulations
- communicate with employees and representatives about a potential shutdown;
- prepare draft furlough notices;
- determine which positions are excepted from the furlough according to OMB guidance.
Sources
House Resolution 3082, “An Act making appropriations for military construction, the Department of Veterans Affairs, and related agencies for the fiscal year ending September 30, 2010, and for other purposes.”http://www.gpo.gov/fdsys/pkg/BILLS-111hr3082eas2/pdf/BILLS-111hr3082eas2.pdf
Antideficiency Act Background. US Government Accountability Office.
http://gao.gov/ada/antideficiency.htm
Guidance and Information on Furloughs. US Office of Personnel Management.
http://www.opm.gov/furlough/furlough.asp
*Information Provided by the National Association of REALTORS
Wednesday, April 6, 2011
Real estate: It's time to buy again
Real estate: It's time to buy again
Forget stocks. Don't bet on gold. After four years of plunging home prices, the most attractive asset class in America is housing.
A home under construction in Austin. The number of new homes in the pipeline nationwide is quite low.
Castleman is in a unique position to know. As the founder and CEO of a company called Metrostudy, he's spent more than three decades tracking real-time data on the country's inventory of new homes. Each quarter he dispatches 500 inspectors to literally drive through 45,000 subdivisions from Baltimore to Sacramento. The inspectors examine 5 million finished lots, one at a time, and record whether they contain a house that's under construction, one that's finished and for sale, or a home that's sold. Metrostudy covers 19 states, or around 65% of the U.S. housing market, including all the ones hardest hit by the crash: Florida, California, Arizona, and Nevada. The company's client list includes virtually every major homebuilder and bank -- from Pulte (PHM) and KB Home (KBH) to Bank of America (BAC) and Wells Fargo (WFC).
The key figures that Metrostudy collects, and that those clients prize, are the number of homes that are vacant and for sale in each city, and the number of months it takes to sell all of them. Together those figures measure inventory -- the key metric in determining whether a market has a surplus or a shortage of new housing.
Today Castleman is witnessing an extraordinary reversal of the new-home glut that helped sink prices just a few years ago. In the 41 cities Metrostudy covers, a total of 78,000 houses are now either vacant and for sale, or under construction. That's less than one-fourth of the 343,000 units in those two categories at the peak of the frenzy in mid-2006, and well below the level of a decade ago. "If we had anything like normal levels of buying, those houses would sell in 2½ months," says Castleman. "We'd see an incredible shortage. And that's where we're heading."
If all the noise you're hearing about housing has you totally confused, join the crowd. One day you'll read that owning a home has never been more affordable. The next day you'll see news that housing starts have plunged to nearly their lowest level in half a century, as headlines announced in March. After four years of falling prices and surging foreclosures, it's hard to know what to think. Even Robert Shiller and Karl Case can't agree. The two economists, who together created the widely followed S&P/Case-Shiller Home Price indices, are right now offering sharply contrasting views of housing's future. Shiller recently warned that the chances were high for a further double-digit drop in U.S. home prices. But in an interview with Fortune, Case took a far brighter view: "The lack of new home building is a huge help that a lot of people are ignoring," says Case. "People think I'm crazy to be optimistic, but housing is looking like the little engine that could."
To see where real estate is truly headed, it's critical to keep your eye firmly on the fundamentals that, over time, always determine the course of prices and construction. During the last decade's historic run-up in prices, Fortune repeatedly warned that things were moving too fast. In a cover story titled "Is the Housing Boom Over?," this writer's analysis found that the basic forces that govern the market -- the cost of owning vs. renting and the level of new construction -- were in bubble territory. Eventually reality set in, and prices plummeted. Our current view focuses on those same fundamentals -- only now they're pointing in the opposite direction.
So let's state it simply and forcibly: Housing is back.
Two basic factors are laying the foundation for dramatic recovery in residential real estate. The first is the historic drop in new construction that so amazes Castleman. The second is a steep decline in prices, on the order of 30% nationwide since 2006, and as much as 55% in the hardest-hit markets. The story of this downturn has been an astonishing flight from the traditional American approach of buying new houses to an embrace of renting. But the new affordability will gradually lure Americans back to buying homes. And the return of the homeowner will start raising prices in many markets this year.
Drumming up sales
One big fear is that today's tight credit standards will chill the market. But we're really returning to the standards that prevailed before the craze, and those requirements didn't stop prices and homebuilding from rising in a good economy. "The credit standards are now at about historical levels, excluding the bubble period," says Mark Zandi, chief economist for Moody's Analytics. "We saw prices rising with fundamentals in those periods, and it will happen again."
To see why, let's examine the remarkable shift in home affordability. A new study by Deutsche Bank measures affordability in two ways: first, the share of income Americans are paying to own a home. And second, the cost of owning vs. renting. On the first metric, the analysis finds that homeowners now pay just 9.8% of their income in after-tax mortgage, tax, and insurance payments. That's down from 17.2% at the bubble's peak in 2007, and by far the lowest number in the Deutsche Bank database, going back to 1999. The second measure, the cost of owning compared with renting, should also inspire potential buyers. In 28 out of 54 major markets, it's now cheaper to pay a mortgage and other major costs than to rent the same house. What's most compelling is that in all of the distressed markets, owning now wins by a wide margin -- a stunning reversal from four years ago. It now costs 34% less than renting in Atlanta. In Miami the average rent is now $1,031 a month, vs. the $856 it costs to carry a ranch house or stucco cottage as an owner. (For more, see The top 10 cities for home buyers)
Not all markets will bounce back equally, of course. Housing resembles the weather: The exact conditions are different in every city. But in general the big U.S. markets fall into two different climate zones right now. We'll call them the "nondistressed markets" and the "foreclosure markets." A more detailed look shows why the forecast for both is favorable.
Nondistressed markets: Ready for launch
No cities went untouched by the collapse in prices over the past few years. But markets such as Northern Virginia, Indianapolis, Minneapolis, San Diego, the San Francisco suburbs, and virtually all of Texas held up reasonably well. In those areas prices spiked far less than in bubble cities -- the foreclosure markets we'll get to shortly -- chiefly because they didn't get nearly as many speculators who thought they could flip the homes or rent them to snowbirds.
The nondistressed markets will be able to get prices rising and construction growing far faster than the harder-hit areas for a simple reason: Although some of these markets are still suffering from foreclosures, they don't need to work through the big overhang haunting a Las Vegas or a Phoenix. The number of new homes for sale or in the pipeline is extraordinarily low in nondistressed markets. San Diego is typical. It has just 921 freestanding homes for sale or under construction, compared with 4,425 in late 2005. The challenge for these cities is to generate enough demand to reduce inventories of existing, or resale, homes. In the entire country the resale supply stands at 3.5 million houses and condos. That's a fairly high number, since it would take more than eight months to sell those properties; seven months or below is the threshold for a strong market.
But in the nondistressed cities, the existing home inventory is lower, closer to seven months on average. So a modest increase in demand will translate into strong gains in both prices and new construction. That should happen quickly, because most of those markets -- including Silicon Valley, Northern Virginia, and Texas -- are now showing good job growth.
Zandi of Moody's Analytics expects that prices will rise three to four points faster than inflation for the next few years in virtually all of the nondistressed markets. His view is that prices will increase in line with rents, which are now growing briskly because apartments are in short supply. Those higher rents will encourage buyers to cross the street from an apartment to a home of their own.
In Northern Virginia, Chris Bratz, an engineer, and his wife, Amy DiElsi, a publicist, are planning to leave their rental apartment and become homeowners for the first time. The main reason? Buying has simply become a far better deal than renting. "The market got completely inflated, then it crashed, so prices are coming back to where they should be," says Chris. As the couple have watched prices fall, they have also watched the rent on their apartment spiral upward, reaching $2,700 a month. They calculate that they should be able to purchase a townhouse for between $400,000 and $500,000 and pay less per month for a mortgage.
The nondistressed markets will also lead the way in construction. Zandi predicts that for the nation as a whole, single-family housing "starts" -- measured when a builder pours a foundation for a new home -- will rise from 470,000 in 2010 to as much as 700,000 this year. A large portion of that activity will happen in nondistressed markets where a tightening supply of resale houses will start making new homes look like a good deal. "Our main competition is from resales," says Jeff Mezger, CEO of KB Home. "The prices of those homes have stayed so low, because of low demand, that it's hampered the ability of builders to sell new houses."
But many would-be buyers simply prefer a brand-new house. Eventually they'll move from renters to buyers, and the trend will accelerate now that prices are no longer dropping. In Minneapolis, Yuan Qu and her husband, Xiang Chen, a researcher at the University of Minnesota, just moved from a two-bedroom rental to a new light-blue four-bedroom ranch with a chocolate-colored roof on a spacious corner lot. They paid $400,000, a bargain price compared with a few years ago. The couple, both in their early thirties, moved to Minnesota from China six years ago. "We wanted to buy a house, and we've been waiting and waiting and waiting," says Qu. "The prices went down for so long, we finally thought they couldn't keep falling." For Qu the only choice was new construction. "We're not very handy people," she admits.
Foreclosure markets: The outlook is brightening
A home off the market in Mesa, Ariz.
But the outlook is brightening for Phoenix, Las Vegas, Miami, and parts of Northern California. A big positive is the tiny supply of new homes entering the market. Phoenix, for example, has a total of just 8,100 new homes that are either for sale or under construction, down from 53,000 in mid-2006. The big test in these cities is absorbing the steady stream of distressed properties. The foreclosures put downward pressure on the market far out of proportion to their numbers because of markdown pricing. "We had levels of inventory even higher than this in 1990 and 1991," says MIT economist William Wheaton. "But they were traditional listings, not foreclosures, so they didn't create the big discounts you get with foreclosures."
Wheaton reckons that we'll see a flow of around 1 million foreclosures a year, at a fairly even pace, from now through 2013. That figure is frequently cited as evidence that the market is doomed for years in most foreclosure markets. Not so. The reason is that the vast bulk of those units, probably over 600,000, according to Gleb Nechayev, an economist with real estate firm CB Richard Ellis (CBG), are being converted to rentals either by investors or their current owners. Those properties are finding plenty of renters, since the rental market is still extremely strong across the country. Remember, the millions who lost their homes to foreclosure still need somewhere to live.
A typical investor is Alex Barbalat, a Russian immigrant who's purchased seven homes east of San Francisco in the towns of Bay Point, Antioch, and Pittsburg. His average purchase price is around $100,000 for homes that once sold for between $300,000 and $500,000. But he has no trouble finding renters, since his tenants can commute to jobs in San Francisco on the BART transit system. Barbalat is pocketing rental yields on the prices he paid of around 12%, and he's in no hurry to sell. "I'm holding them until prices drastically rise," he says.
Investment funds are also entering the game. Dotan Y. Melech looks for bargains in Las Vegas for UnitedAMS, a firm he co-founded that manages apartments and other real estate investments. The firm has raised more than $20 million from outside investors to purchase distressed properties. So far, Melech has bought around 300 houses and plans to purchase another 200 this year. He has no trouble renting the houses he buys, since, he estimates, occupancy rates in Las Vegas are touching 95%. The "cap rate," or return on investment after all expenses, is between 8% and 10% -- twice the rate on 10-year Treasuries. Melech rents to people who lost their homes but are reliable renters. "A lot of people can't be buyers because their credit got hurt," he says.
Even with investors jumping in, buying activity in foreclosure markets hasn't yet increased enough to bring inventories down. It will soon. Zandi thinks prices will fall a couple of percentage points lower in the distressed markets in the short run. "But that will be overshooting," he says. "It's like an elastic band. If prices do drop this year, they will need to bounce back because they'll be far too low compared with rents and replacement cost." Renters will come off the sidelines to purchase homes in the years ahead, precisely the opposite trend of the past few years.
Consider the example of Michael Dynda, a retired Air Force avionics technician who now works for a government contractor in Las Vegas. Dynda, 49, is a first-time buyer who put off purchasing for years, in part because prices were falling so rapidly in Las Vegas, with no bottom in sight. But last year the combination of bargain prices and low mortgage rates became too good to resist. He ended up purchasing a 2,300-square-foot stucco home for $240,000, or about half what it would have fetched in 2007. Dynda got a 4.38% home loan, and pays the same amount on his mortgage as on the rent on the house he left to become a homeowner. "The timing was about as good as it could get," says Dynda.
Mike Castleman's company tracks the inventory of new homes in 19 states across the country. He sees supply getting tight. "Home prices are fixin' to rise," he says.
Castleman claims that this recovery will look like all the others: It will bring a severe shortage of housing. He invokes the livestock business to explain. "It takes three years between the time a bull mates with a cow and when you get a calf ready for market," he says. "That's how it is in housing too. We'll get a big surge in demand and the drywall companies will take a long time to ramp up, and it will take years to get new lots approved. Buyers will show up looking for a house in a subdivision, and all the houses will be sold. The builders will tell them it will take six months to deliver a house." But those folks, says Castleman, will be set on buying a place. "And they'll want it so bad they'll bid the prices up!" In other words: Beat the crowd.
It's a Great Time to Buy a House
Mike Castleman, the Texan with the best realtime view of housing in the U.S., tells editor-atlarge Shawn Tully that the naysayers are about to get a big surprise: rising prices for new homes.
--Reporter associates: Anne VanderMey and Christopher Tkaczyk
Tax Time Less Taxing for Home Owners
Tax Time Less Taxing for Home Owners
Washington, March 15, 2011“Owning a home offers myriad benefits throughout the year, but some of the financial advantages of home ownership are most apparent at tax time,” said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “As many of today’s hard-working American families are feeling a financial squeeze, the tax benefits that can come from owning a home can be a welcome relief.”
A number of tax deductions and credits are still available for home owners; these include deductions – with specific limits – for mortgage interest and capital gains on home sales, and credits for certain energy-efficient home improvements. Even with these benefits, home owners pay 80-90 percent of all U.S. federal income taxes.
“It’s been suggested that many of today’s tax incentives for home ownership primarily benefit wealthy individuals, but that’s simply not true,” said Phipps. “As today’s public debate continues about what home ownership means for families, communities, and the nation’s economy, there’s no question that for many, owning a home is still the best way to begin building wealth.”
Ninety-one percent of home owners who claim the mortgage interest deduction earn less than $200,000 a year, and the ability to deduct the interest paid on a mortgage can mean significant savings at tax time. For example, a family who bought a home in 2010 with a $200,000, 30-year, fixed-rate mortgage, assuming an interest rate of 4.5 percent, could save nearly $3,500 in federal taxes when they file this year.
“Realtors® see the very real positive impact of home ownership every day with our clients,” said Phipps. “Recent proposals to reduce or eliminate the mortgage interest deduction and remove government support of the housing finance market could have disastrous consequences for the economy, not to mention making it harder or nearly impossible for millions of families to own their own homes. We believe America must continue to invest in home ownership, for the future of our families and our nation.”
For home owner tax season tips, visit www.HouseLogic.com. HouseLogic is a free source of information from NAR that helps home owners maintain and enhance the value of their homes and engage in issues that affect their local communities.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
*Information provided by th National Association of REALTORS
Wednesday, March 23, 2011
Myths About Homeownership
Myths About Homeownership
How lenders assess mortgage applications has changed a lot since 2007. What was acceptable a few years ago may not be so today. The following are some common homeownership myths:Myth: It’s a bad time to buy a house.
Fact: Mortgage rates for fixed-rate mortgages are at historical lows, creating stable payments and long-term savings for today's homebuyers and house prices have fallen at a record pace. Additionally, there is some financial relief for first-time homebuyers through the recently enacted Housing and Economic Recovery Act of 2008 and foreclosures have increased to record levels, leaving lots of housing supply on the market with unequalled demand. The combination of these factors generally equals greater affordability, and makes now a good time for many to consider homeownership.
Myth: Buying a house is just too risky; I'll end up in foreclosure.
Fact:The recent news on foreclosures is understandably frightening. Certainly if you lose your job, go through a divorce, or suffer an illness, you could have real trouble paying your mortgage, or rent for that matter. In recent years, we've even seen an increase in excessive obligation–just too many bills–as a reason for delinquency. While you can't always solve for the unexpected twists and turns of life, good budgeting and responsible credit practices can decrease the likelihood of a foreclosure. Also if you have trouble paying the mortgage, contact your lender immediately!
Myth: You can't buy a home in the U.S. if you're not a citizen.
Fact:If you're a permanent or non-permanent resident alien, you can purchase a home in the U.S. In order to qualify for a loan you typically need to be a permanent resident alien with a valid USCIS card or, a "Green Card" and Social Security number. If you are a temporary resident alien with a valid work permit and Social Security number and have been in the United States continuously for the last 2 years, with steady employment and good credit history you may also qualify for a loan.
Myth: If you don't have a bank account or credit cards, you can't qualify for a mortgage.
Fact: Having a bank account is always a good idea and helps you establish credit. However, lenders can approve you for a mortgage even if you don't have a bank account or credit cards. You'll likely need to keep records showing a history of payments you've made for items such as rent, utilities, and car payments.
Myth: Lenders share your personal financial information with other companies.
Fact: By law, banks and other financial institutions are restricted in their uses and disclosures of information about you. In some situations, you may choose to restrict the disclosure of your information if you don't want it to be shared. If you are unsure how your information will be used, don't be afraid to ask – it's your right to know.
Myth: If you're late on your monthly mortgage payments, you'll lose your house.
Fact: If you have a financial hardship, like the death of your spouse or a medical emergency, and fall behind, it's possible to keep your home and get back on track if you contact your lender early (the organization to whom you make your monthly mortgage payments, sometimes also referred to as your mortgage servicer).
If you experience a change in your financial situation and think that you will fall behind or have fallen behind on your mortgage payment, call your lender immediately.
Despite popular belief, lenders do not want to foreclose on homes. They want to keep you as a customer for life. In fact, lenders typically lose money in the foreclosure process, so they are always looking for ways to help you make ends meet.
Myth: You can't get a mortgage if you've changed jobs several times in the last few years.
Fact: Not true. You can change jobs several times and still get a loan to buy a home. Lenders understand that people change jobs. The important thing is to show that you've had a stable income and good credit.
Information Courtesy of...
About Homeownership
Freddie Mac's Online Guide to the Homebuying Process
Saturday, February 26, 2011
Tax Benefits of Home Ownership Are Almost Too Good to Be True
Tax Benefits of Home Ownership Are Almost Too Good to Be True
Uncle Sam helps you in three ways when you own your home.
1. The purchase
When buying your own home, most of the expenses are not tax deductible. But there is one exception that is worth finding.
The IRS says you can deduct interest in the year that it is paid, and that is usually part of each monthly loan payment. In addition, if the day you purchase is on any day other than the first of the month, you will likely pay a charge for "daily interest" between the day of closing and the end of the month. Look on line 901 of your HUD settlement statement.
Much more importantly, the IRS says that, in most cases, loan discount points and origination fees are tax deductible to the buyer, regardless of who pays them. Look at lines 801 and 802 of your settlement statement and see if you hit the jackpot. This is a particularly unusual deduction because you get the benefit even if the seller paid your closing costs. And because origination fees of 1% and more are common, this can amount to a lot of cash.
2. Mortgage interest
In general, you can deduct interest charged on a loan used to acquire or improve your principal residence in the year that it is paid. In the early years of a loan, most of your monthly payment is interest, so this can really add up. If you are in a 28% federal tax bracket, this can have the effect of lowering your borrowing costs by almost a third, depending on which state you live in. This is truly nothing more than a subsidy to home owners, and it's a very popular deduction.
In addition, you can always deduct interest on an additional $100,000 of mortgage debt, which can be used for any purpose. This is called the "Home Equity Loan" exception, and it allows you to tap into your home equity for any purpose. This gives home owners the ability to do what is called "debt-shifting." For example, if you live in an apartment and have a credit card balance of $10,000 at 18% interest, none of that interest would be deductible. But if you bought a house, obtained a home equity loan for $10,000 and paid off the credit card, then ALL of the interest expense becomes automatically deductible. Furthermore, the rate on the home equity loan is likely to be around prime plus one or two, usually much lower than credit card rates. This same technique works with any and all personal debt, from car loans to consolidation loans - with only one hitch. In every home equity loan, you have pledged your house as collateral for the loan. If you fail to pay the payments as agreed, you could lose your house to foreclosure. So be careful in using this technique.
3. The sale
This is the best. In fact, I can hardly believe this myself. Here's how it works:
If you have owned and occupied your principal residence for at least two of the past five years, you can earn up to $500,000 on the sale of that house and pay no federal income tax whatsoever. That's assuming you are married - singles get up to $250,000 tax free. And here comes the kicker:
You can do this as often as every two years for the rest of your life.
This is as good an excuse for getting married as I have ever heard. Buy a fixer-upper in an up and coming neighborhood, work on it nights and weekends for two years, then sell it at a nice profit and pocket the cash, totally free of federal taxes. And most states recognize the federal exclusion, so you put the cash away totally tax free. You don't have to re-invest, you don't have to be age 55, and you can do this every two years forever. No, I'm not kidding.
The one restriction is that you MUST own and occupy the house as your principal residence, so don't try this on a rental property by pretending you live there when you don't. And there are some unclear rules about how you can take a partial exclusion if you live there less than two years, but we don't really know what they mean yet, so I recommend you stay there two years.
*Information provided by the National Association of REALTORS* By John Adams : Copyright © by Move, Inc.
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