Will the First-Time Home Buyer Credit be extended?

Senate negotiators reached a tentative deal to extend a tax credit for first-time home buyers, but the Senate lawmakers are not certain how it should be brought to the Senate floor, and its passage remains uncertain. The agreement would extend the existing credit for first-time home buyers (up to $8,000) while offering a new credit of up to $6,500 for some existing homeowners, being made available to all home buyers who have been in their current residence for a consecutive five-year period in the past eight years.

The provisions would extend the credit from its current expiration date of Dec. 1 to all contracts entered into by April 30, and closed before July 1. It is anticipated that income limits to claim the credit would be increased to $125,000 for singles and $250,000 for couples. The credit phases out for people making more than those amounts.

The new provisions are aimed at giving the real estate market a greater boost by expanding the availability of the credit beyond first-time buyers and extending the time period in which the credit can be claimed.

Entry-Level Housing Affordability Reaches 67% in Second Quarter of 2009

FINALLY...homes are becoming more affodable for our young people!! Read on:

RISMEDIA, August 22, 2009-The percentage of households that could afford to buy an entry-level home in California stood at 67% in the second quarter of 2009, compared with 49% (revised) for the same period a year ago, according to a report recently released by the California Association of Realtors® (C.A.R.).
C.A.R.’s First-time Buyer Housing Affordability Index (FTB-HAI) measures the percentage of households that can afford to purchase an entry-level home in California. C.A.R. also reports first-time buyer indexes for regions and select counties within the state. The Index is the most fundamental measure of housing well-being for first-time buyers in the state.
The minimum household income needed to purchase an entry-level home at $224,180 in California in the second quarter of 2009 was $39,930, based on an adjustable interest rate of 4.92% and assuming a 10% down payment. First-time buyers typically purchase a home equal to 85% of the prevailing median price. The monthly payment including taxes and insurance was $1,330 for the second quarter of 2009.
At $39,930, the minimum qualifying income was 34% lower than a year earlier when households needed $60,460 to qualify for a loan on an entry-level home. Recent decreases in home prices and mortgage rates have brought affordability into better alignment with income levels of the typical California households, where the median household income is $61,030.
The First-time Buyer Housing Affordability Index declined 2 percentage points in the second quarter of this year compared with the first quarter of 2009, due to a 6.4% increase in the price of an entry-level home.Read more: http://rismedia.com/2009-08-22/entry-level-housing-affordability-reaches-67-in-second-quarter-of-2009/#ixzz0OvBVyMIX

Busy is good!

In this business of real estate, busy is good!! Where did June & July go? THAT's how busy it's been. Yes, people are buying. Most of what is going is mid-range priced homes (around $150,000). However, we still have the occasionally 2nd home buyers looking for something more substantial and taking advantage of prices, mortgage rates, and terms. I'll keep you posted as the summer progresses!

Happy Memorial Day!!

Summer "officially" starts this weekend for Northwest Michigan. The snow is all gone and the sun is out. It's quite evident that the tourist season has arrived as well by the looks of the traffic on US-31 out my window. Many new listings are now available and it's a great time to buy! Email or stop in to see what we can do for you! Enjoy the weekend!!

Spring selling season is soon upon us!

Even though there is still snow on the ground (mostly old, dirty stuff), I have been getting more and more people calling in regards to listing their home. Some are "have to" (foreclosure problems) while most are "want to." Although all know it's a tough market right now, they are willing to cut their losses (usually cutting price) and get what they can. Some markets in the area are still quite strong - lakefront & homes under/around $100,000. There is a lot on the market and interest rates are at record lows - it's a GREAT time to buy!! Give me a call or drop me an email and I'll see what I can do for YOU!

February sun?!

As I write, the sun is shining brightly and my thermometer is reading 46. Although I'm enjoying the spring-like weather, I know it's just a tease. After all, it IS Michigan! This is fine with me; I'm still enjoying the wonderful ski conditions out at Crystal Mountain.

As we wait to see if the proposed US stimulus package is going to bring any housing relief, things are still "okay" here in Northern Michigan. While we still have our fair share of bank repos, we also have qualified sellers & buyers gearing for the upcoming season. I just had a closing on Friday and have two more in the works. Things WILL BE fine in 2009!!

Another note...Winterfest in Beulah is slated for next Saturday (Feb 14) - don't miss it!! In addition to fun, games, food, chili cook-off, there will also be fireworks over the frozen lake at 7:30 PM. Fireworks in July are great, but it's amazing to see the reflections off the snow/ice in February. Call me if you need more information

As always, if you'd like to keep up on the market in Northwest Michigan, drop me a line at Kathy@KathyNeveu.com. Let me know how I can help!!

Bye for now.....

Where did the year go?

Okay, so it's been WAY too long since I've posted. It is now January and a new year! Ready, set, here we go!

The real estate market seems to be picking up this month. With the new low interest rates and the high inventory of homes on the market, things are picking up - even with many feet of snow on the ground! There are new listings coming on the market daily. If you are interested in receiving these listings as they hit the market, drop me a line (Kathy@KathNeveu.com) and I'll make sure you get the latest updates. Most recently, I have been trying to email the new bank repos the minute they enter the MLS (multi-list system). This has brought about a lot of interest as the banks seem to be, finally, pricing super low. Gotta' love a deal!!

Would love hear from you!!
More later.......