So you've decided to buy a house, but you're not sure if your finances are quite up to speed. Even if you hope to buy six months from now, there are numerous improvements and adjustments to be made in the interim, prior to taking on a mortgage.
First-time home buying is well documented as an arduous process, and much of that can be attributed to the sheer number of new and unexpected issues. Therefore, the more you know, the better you're likely to fare. Here, briefly, are some aspects buyers should consider when shoring up finances to buy a house.
Click Here to Read: Real Estate 101: What New Home Buyers Need To Know...
Showing posts with label First Time Homebuyer. Show all posts
Showing posts with label First Time Homebuyer. Show all posts
4 Questions Before Buying Your First House
The decision to buy a house is about more than just mortgage interest rates, the Case-Shiller Home Price Index, and property taxes. Your home is more than just an investment, it's also shelter, security and safety. That's why you should think about more than just finances when making the decision.
Click Here: 4 Questions Before Buying Your First House...
Click Here: 4 Questions Before Buying Your First House...
Why First Time Home Buyers Shouldn’t Target Their Dream Homes
People have a lot of expectations when buying their first home. Most first time home buyers probably envision opening the doors to their dream house and triumphantly walking into their mansion. The culmination of their hard work and even harder saved dollars are embodied in this perfect piece of property.
While that is a great image to strive for, a more practical approach may be to buy a starter home like a fixer-upper or condo to tide you over as your first purchase. It isn’t as pretty a setting as you’d like, but it could be a much smarter financial decision in the long run. In fact, it could help get you to that perfect home a little sooner.
Click Here to Read: Why First Time Home Buyers Shouldn’t Target Their Dream Homes...
While that is a great image to strive for, a more practical approach may be to buy a starter home like a fixer-upper or condo to tide you over as your first purchase. It isn’t as pretty a setting as you’d like, but it could be a much smarter financial decision in the long run. In fact, it could help get you to that perfect home a little sooner.
Click Here to Read: Why First Time Home Buyers Shouldn’t Target Their Dream Homes...
84% of Consumers Favor Another Tax Credit for Home Buyers
Another tax credit for home buyers in 2011 seems unlikely at this point. But despite this, most consumers feel another tax credit would help to stabilize the housing market. Here are the results of a survey we concluded last week:
Chart: Many consumers feel another home-buyer tax credit would help. Image permission
Survey details: This survey was presented to more than 5,500 readers. We ran this survey on the Home Buying Institute website, and several other sites within our financial network. The audience was mixed — some were home buyers and homeowners, while others were researching personal finance and investment topics.
Click For Full Story: 84% of Consumers Favor Another Tax Credit for Home Buyers...
Chart: Many consumers feel another home-buyer tax credit would help. Image permission
Survey details: This survey was presented to more than 5,500 readers. We ran this survey on the Home Buying Institute website, and several other sites within our financial network. The audience was mixed — some were home buyers and homeowners, while others were researching personal finance and investment topics.
Click For Full Story: 84% of Consumers Favor Another Tax Credit for Home Buyers...
Why Your First Home Shouldn't Be Your Dream Home
Since 2000 homeownership rates in the U.S. have hovered around 66% to 67% of the population. In 1900 less than half of Americans owned their own homes. The biggest surge in home buying came after World War II, when many young families were encouraged to buy "starter homes."
Attitudes about how to buy a home have fluctuated as much as interest rates during the decades since World War II, and eventually many first-time home buyers were encouraged to "buy big" in order to stretch their budgets as much as possible, and to buy the homes they wanted to live in forever. Given the high level of foreclosures and the loss of value in many homes, today's buyers are more wary of taking on homes they cannot afford, but many are still tempted to make their first home purchases their dream homes rather than their starter homes.
Click Here to Read: Why Your First Home Shouldn't Be Your Dream Home...
Attitudes about how to buy a home have fluctuated as much as interest rates during the decades since World War II, and eventually many first-time home buyers were encouraged to "buy big" in order to stretch their budgets as much as possible, and to buy the homes they wanted to live in forever. Given the high level of foreclosures and the loss of value in many homes, today's buyers are more wary of taking on homes they cannot afford, but many are still tempted to make their first home purchases their dream homes rather than their starter homes.
Click Here to Read: Why Your First Home Shouldn't Be Your Dream Home...
Homeowning Rarely Has Been More Affordable Than Now
Buying a home can be a life-changing decision and one many people take seriously, especially in this market.
Part of becoming a responsible homeowner is weighing every aspect of the decision before buying, including lifestyle preferences, job and financial situation and affordability.
Fortunately, for anyone who is considering buying a home, current housing affordability conditions can benefit today’s buyers for years to come.
According to economists at the National Association of Realtors, NAR’s housing affordability index could reach an all-time high of near 200 in the second half of this year.
Click Here to Read: Homeowning Rarely Has Been More Affordable Than Now...
Part of becoming a responsible homeowner is weighing every aspect of the decision before buying, including lifestyle preferences, job and financial situation and affordability.
Fortunately, for anyone who is considering buying a home, current housing affordability conditions can benefit today’s buyers for years to come.
According to economists at the National Association of Realtors, NAR’s housing affordability index could reach an all-time high of near 200 in the second half of this year.
Click Here to Read: Homeowning Rarely Has Been More Affordable Than Now...
Another Home Buyer Tax Credit?
Just when I thought the housing market was finally being left to correct on its own, I'm starting to hear talk regarding yet another home buyer tax credit. From HUD to the hedge funds, it sounds as if it is gaining steam yet again. This one could involve not just first time/move-up buyers, but a credit for buyers purchasing foreclosed properties or short sales (when the bank allows you to buy a home for less than the value of the outstanding mortgage).
HUD Secretary Shaun Donovan, appearing on CNN's State of the Union this weekend, didn't rule out another tax credit. He did say it's "too early to say," but then added that "we're going to be focused like a laser on where the housing market is moving going forward, and we are going to go everywhere we can to make sure this market stabilizes and recovers."
Click Here to Read: Another Home Buyer Tax Credit?...
HUD Secretary Shaun Donovan, appearing on CNN's State of the Union this weekend, didn't rule out another tax credit. He did say it's "too early to say," but then added that "we're going to be focused like a laser on where the housing market is moving going forward, and we are going to go everywhere we can to make sure this market stabilizes and recovers."
Click Here to Read: Another Home Buyer Tax Credit?...
Still Rising: Spec Houses Worth $20 Million
Enzo Morabito, a luxury real estate broker in New York's Hamptons, saw a line of people at his open house on Aug. 29. The property was a new, $25.95 million spec home by Michael Davis Design & Construction at 232 Parsonage Lane in Sagaponack, N.Y.—the country's most expensive small town, according to Businessweek.com. By the end of the day, more than 75 people had passed through the mansion. "That is an extraordinary turnout," says Morabito, executive vice-president of Prudential Douglas Elliman Real Estate in Bridgehampton, N.Y. Equally surprising, given the tough environment for builders: This is Michael Davis' biggest and most expensive house ever.
Amid concerns about unemployment, an uneven housing rebound, and difficulty getting financing, some elite developers continue to build ultra-luxury homes on spec—for sale on the open market, not for an owner. Some cost even more than the residences they built during the housing boom. In high-end markets such as the Hamptons, Beverly Hills, Calif., Palm Beach, Fla., and Aspen, Colo., a number of new spec houses have entered the market this year in the $20 million range. A few are asking for far more.
Click Here to Read: Still Rising: Spec Houses Worth $20 Million...
Amid concerns about unemployment, an uneven housing rebound, and difficulty getting financing, some elite developers continue to build ultra-luxury homes on spec—for sale on the open market, not for an owner. Some cost even more than the residences they built during the housing boom. In high-end markets such as the Hamptons, Beverly Hills, Calif., Palm Beach, Fla., and Aspen, Colo., a number of new spec houses have entered the market this year in the $20 million range. A few are asking for far more.
Click Here to Read: Still Rising: Spec Houses Worth $20 Million...
Market 'Balanced' After Tax-credit End
The federal homebuyer tax credit that expired on April 30 seemingly had its intended effect, creating a spike in pending sales contracts in the Washington area.
Statistics provided by Real Estate Business Intelligence (RBI), a subsidiary of Metropolitan Regional Information Systems (MRIS), show that pending sales (a reflection of signed contracts that have not yet reached settlement) peaked during the week ending May 1 at 4,614 contracts, compared with 2,617 pending sales for that same week in 2009. The increase of 76.3 percent from one year to the next during that week followed two previous weeks of increases of 41 percent and 31.6 percent over those weeks in 2009.
Click Here: Market 'Balanced' After Tax-credit End...
Statistics provided by Real Estate Business Intelligence (RBI), a subsidiary of Metropolitan Regional Information Systems (MRIS), show that pending sales (a reflection of signed contracts that have not yet reached settlement) peaked during the week ending May 1 at 4,614 contracts, compared with 2,617 pending sales for that same week in 2009. The increase of 76.3 percent from one year to the next during that week followed two previous weeks of increases of 41 percent and 31.6 percent over those weeks in 2009.
Click Here: Market 'Balanced' After Tax-credit End...
Is The Real Estate Market Turning Around?
The home sales index spike from the home buyer tax credit has almost run out. If you didn't have a deal in escrow by April 30, you didn't get the credit. The time to close a deal was extended to September 30. The predictions were that we'd see a fall in July activity which is exactly what is occurring.
The reports that are currently coming in don't yet reflect July sales which will show a drop in sales. For example, the Case-Shiller report came in yesterday for May, 2010, but that report is a three-month average of prices. The report said prices were up 1.2% MoM, and 5.4% YoY. That was the peak of housing credit driven sales.
Click Here To Read: Is The Real Estate Market Turning Around?...
The reports that are currently coming in don't yet reflect July sales which will show a drop in sales. For example, the Case-Shiller report came in yesterday for May, 2010, but that report is a three-month average of prices. The report said prices were up 1.2% MoM, and 5.4% YoY. That was the peak of housing credit driven sales.
Click Here To Read: Is The Real Estate Market Turning Around?...
Monday, August 2, 2010
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Home Prices Falling Despite Low Mortgage Rates
The fine bloggers over at Calculated Risk have a good article today about the future of housing prices. In essence the article asserts that there have been declines in home values in both May and June that have yet to fully show up in many measures of home prices.
This premise is based upon data from Campbell Surveys that shows prices for short sales fell 6.3%, move-in ready foreclosures fell 6.8 percent, and non-distressed properties dropped 4.6 percent.
The decline can likely be traced to several factors. First is the collapse in demand for homes following the expiration of the first time home buyer tax credit at the end of April (the overall weakness of the economy also plays a part in the lack of demand). The next factor is the massive overhang of houses on the market and in the hands of banks and lenders. Finally, the sheer volume of foreclosed and distressed homes negatively affects the price of homes.
Click Here: Home Prices Falling Despite Low Mortgage Rates...
This premise is based upon data from Campbell Surveys that shows prices for short sales fell 6.3%, move-in ready foreclosures fell 6.8 percent, and non-distressed properties dropped 4.6 percent.
The decline can likely be traced to several factors. First is the collapse in demand for homes following the expiration of the first time home buyer tax credit at the end of April (the overall weakness of the economy also plays a part in the lack of demand). The next factor is the massive overhang of houses on the market and in the hands of banks and lenders. Finally, the sheer volume of foreclosed and distressed homes negatively affects the price of homes.
Click Here: Home Prices Falling Despite Low Mortgage Rates...
Thursday, July 29, 2010
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New-Home Sales Fall To Lowest Level On Record
Sales of new homes in Utah and much of the rest of the country dropped in May as many potential buyers stopped shopping for homes once they could no longer receive government tax credits.
Nationally, sales sunk 33 percent to the lowest level on record, according to a report from the Commerce Department. The numbers show just how much the end of federal tax credits could weigh on the nation’s housing market, even though Realtors locally and nationally point out that low prices and favorable mortgage rates still make a purchase attractive.
The credits expired April 30, the date when a new homebuyer would have had to sign a contract to qualify. Buyers must close before June 30 to complete the process.
Click Here To Read: New-Home Sales Fall To Lowest Level On Record...
Nationally, sales sunk 33 percent to the lowest level on record, according to a report from the Commerce Department. The numbers show just how much the end of federal tax credits could weigh on the nation’s housing market, even though Realtors locally and nationally point out that low prices and favorable mortgage rates still make a purchase attractive.
The credits expired April 30, the date when a new homebuyer would have had to sign a contract to qualify. Buyers must close before June 30 to complete the process.
Click Here To Read: New-Home Sales Fall To Lowest Level On Record...
Monday, June 28, 2010
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Disney World's New Thrill Ride: Selling Luxury Vacation Homes
Walt Disney Co. plans to unveil Wednesday its first foray into residential real estate in more than a decade with a pricey vacation-home development in Florida's Walt Disney World.
It's a risky move. Disney will offer homes priced between $1.5 million and $8 million in a state where the foreclosure rate remains among the nation's highest. In Orlando, where brokers say home values have dropped between 50% and 60% from the peak, Disney's pricing would put its homes near the top of the market. According to Realtor.com, the average price of new listings in greater Orlando this year is just over $243,000.
Click Here To Read: Disney World's New Thrill Ride: Selling Luxury Vacation Homes...
It's a risky move. Disney will offer homes priced between $1.5 million and $8 million in a state where the foreclosure rate remains among the nation's highest. In Orlando, where brokers say home values have dropped between 50% and 60% from the peak, Disney's pricing would put its homes near the top of the market. According to Realtor.com, the average price of new listings in greater Orlando this year is just over $243,000.
Click Here To Read: Disney World's New Thrill Ride: Selling Luxury Vacation Homes...
Congress Could Extend Home-Buyer Tax Credit Closing Deadline
What if the home-buyer tax credit worked too well?
That’s the latest concern from the real-estate industry, which says that a last-minute home-buying rush in April created bottlenecks at lenders and real-estate service companies that may not be able to finalize purchases in time for tens of thousands of buyers to receive a tax credit worth up to $8,000.
On Thursday, there were signs that the real-estate lobby had successfully communicated those concerns to Congress. Senate Majority Leader Harry Reid (D., Nev.) joined Sen. Christopher Dodd (D., Conn.) and Sen. Johnny Isakson (R., Ga.) in sponsoring a measure that would give buyers until Sept. 30 to close on sales that went into contract by April 30. That measure would be attached to a job-related bill before the Senate. It would need House and Senate passage before being signed by President Obama.
Click To Read Further: Congress Could Extend Home-Buyer Tax Credit Closing Deadline..
That’s the latest concern from the real-estate industry, which says that a last-minute home-buying rush in April created bottlenecks at lenders and real-estate service companies that may not be able to finalize purchases in time for tens of thousands of buyers to receive a tax credit worth up to $8,000.
On Thursday, there were signs that the real-estate lobby had successfully communicated those concerns to Congress. Senate Majority Leader Harry Reid (D., Nev.) joined Sen. Christopher Dodd (D., Conn.) and Sen. Johnny Isakson (R., Ga.) in sponsoring a measure that would give buyers until Sept. 30 to close on sales that went into contract by April 30. That measure would be attached to a job-related bill before the Senate. It would need House and Senate passage before being signed by President Obama.
Click To Read Further: Congress Could Extend Home-Buyer Tax Credit Closing Deadline..
US Mortgage Rates Steady At Or Near Record Lows
U.S. mortgage rates stayed at or near record lows in the past week, with the 30-year fixed rate 1/2 percentage point lower than a year ago, home funding company Freddie Mac (FRE.N)(FRE.P) said on Thursday.
In the midst of volatile bond markets, home loan rates continued to keep affordability high.
Demand for loans to buy homes tumbled to 13-year lows in May after spiking in prior weeks, when buyers raced to sign contracts before a homebuyer tax credit expired on April 30. The buyer retreat is seen as temporary, with spring sales pulled into earlier months because of the credit.
Click Here to Read: US Mortgage Rates Steady At Or Near Record Lows...
In the midst of volatile bond markets, home loan rates continued to keep affordability high.
Demand for loans to buy homes tumbled to 13-year lows in May after spiking in prior weeks, when buyers raced to sign contracts before a homebuyer tax credit expired on April 30. The buyer retreat is seen as temporary, with spring sales pulled into earlier months because of the credit.
Click Here to Read: US Mortgage Rates Steady At Or Near Record Lows...
Thursday, June 3, 2010
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First-Time Home Buyers and Boomers Feel Effects of Housing Downturn Most
Although the situation is open to interpretation as well as change, there are growing concerns that the effects of this economic downturn could have a long-lasting effect on the housing market.
A study by the Mortgage Bankers Association, conducted by Kentucky economics professor Joe Peek, concludes that “the current financial crisis and recession exceeded the devastation created by other post-World War II recessions.”
Click to Read Entire Article: First-Time Home Buyers and Boomers Feel Effects of Housing Downturn Most...
A study by the Mortgage Bankers Association, conducted by Kentucky economics professor Joe Peek, concludes that “the current financial crisis and recession exceeded the devastation created by other post-World War II recessions.”
Click to Read Entire Article: First-Time Home Buyers and Boomers Feel Effects of Housing Downturn Most...
Wednesday, June 2, 2010
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Home Prices Could Sink Without Tax Credit
Home prices are widely expected to fall now that a tax credit for home buyers has expired.
That's raising concern about a possible double dip in home prices.
National housing prices stopped falling early last year and rose 0.3% over the 12 months ending in February, according to a study by real estate analytics firm CoreLogic.
The firm predicts prices will fall this year before starting to rise again in late 2010. Even so, next February's prices are likely to be 4.2% lower, it forecasts.
Click here to read entire article: Home prices could sink without tax credit...
That's raising concern about a possible double dip in home prices.
National housing prices stopped falling early last year and rose 0.3% over the 12 months ending in February, according to a study by real estate analytics firm CoreLogic.
The firm predicts prices will fall this year before starting to rise again in late 2010. Even so, next February's prices are likely to be 4.2% lower, it forecasts.
Click here to read entire article: Home prices could sink without tax credit...
7 Tips For Picking a Real Estate Agent
Ever wish you could see through the hype to hire the best real estate agent for buying or selling your home?
When it comes to choosing real estate agents, "we don't have the information that we have about other service professionals," says Stephen Brobeck, executive director of the Consumer Federation of America, in Washington, D.C.
However, there are things you can do to pull back the curtain and accurately assess a real estate agent's past performance and potential success with your home. Whether you're the buyer or the seller, here are seven ways you can find out more about your agent before you hire.
Click here to read entire article: 7 tips for picking a real estate agent...
When it comes to choosing real estate agents, "we don't have the information that we have about other service professionals," says Stephen Brobeck, executive director of the Consumer Federation of America, in Washington, D.C.
However, there are things you can do to pull back the curtain and accurately assess a real estate agent's past performance and potential success with your home. Whether you're the buyer or the seller, here are seven ways you can find out more about your agent before you hire.
Click here to read entire article: 7 tips for picking a real estate agent...
Homebuyers Need an Honest, Knowledgeable Agent
The anxiety first-time home buyers feel starting their search can be compared with the trepidation preceding a trip through the Amazon jungle. An unfair comparison perhaps, but both experiences can be made measurably better, or worse, depending on the quality of one's guide.
"When you are buying or selling real estate, it's an emotional roller coaster, so you want someone who is going to be right next to you, being as calm and educated as possible," said Realtor Steve Jones.
Click here to read entire article: Home buyers need an honest, knowledgeable agent...
"When you are buying or selling real estate, it's an emotional roller coaster, so you want someone who is going to be right next to you, being as calm and educated as possible," said Realtor Steve Jones.
Click here to read entire article: Home buyers need an honest, knowledgeable agent...
Questions and Answers About the Home-Buyer Tax Credits
Time is running short if you want to cash in on the popular home-buyer tax credits. You'll need to sign a binding contract by April 30 and then close the deal by June 30. With thousands of dollars at stake, it's not surprising that potential home buyers have lots of questions. We have the answers.
Click here to read article: Questions and answers about the home-buyer tax credits...
Click here to read article: Questions and answers about the home-buyer tax credits...
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