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The dream of homeownership is alive and well during Homeownership Month |
 Is it still reasonable to dream the dream of home ownership? Although the white picket fence comes in many forms nowadays, from condos to co-ops, from townhomes to bungalows, the dream is still a realistic one for American families this June, Homeownership Month.
"It's not just a platitude to say that this is the best time in years to buy real estate," says Tami Bonnell, President of the US Organization of EXIT Realty Corp. International. "The National Association of Homebuilders recently announced that housing affordability has jumped to its highest point in the past 18 years and the National Association of REALTORS® reported that existing home sales rose in April." Industry insiders know this is good news but it has left consumers with many questions. In order to address those questions, Ms Bonnell will be holding two free, half-hour webinars for the general public on Wednesday, June 24th at 4:00 p.m. and 7:00 p.m. ET. There will be an opportunity for attendees to ask questions during the sessions. Now anyone can ask an objective, experienced real estate executive for the real scoop - and get a straight answer. This is a must-attend event for anyone who is thinking of buying or selling real estate or wondering about where the market is going. To participate, visit the homepage of www.exitrealty.com and click on either the 4:00 link or 7:00 link to register. You will need an internet connection and speakers to participate. |
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Return to http://www.TheRealEstateAces.com
The 2009 Stimulus package included a “refundable” tax credit worth up to $8,000 for taxpayers who purchase their first home between January 1 and November 30, 2009. While it is a great incentive for first-time buyers, the funds are not available until after the purchase when buyers file and receive their tax return.
The new Washington State “Housing Tax Credit Advance Loan Program” will now make the tax credit (up to $8000) available to borrow up front to use as a down payment! The program is not up and running yet, but the funds have been approved and it should go into effect in the next few weeks after Governor Gregoire signs the state budget.
Details of the program are still being refined, but here are the basics:
- The State makes a deposit with a selected FDIC insured financial institution.
- The financial institution then provides the Washington State Housing Finance Commission with a line of credit up to $8000 to qualified first-time home buyers for a down payment.
- The advance loan is paid once the IRS delivers the home buyer’s refund.
Here’s what you can do RIGHT NOW to be eligible and ready once the program is available:
First of all, in order to take advantage of this program, you need to work with a participating lender. There are only a handful of WSHFC loan officers in the Spokane area. They can tell you if you qualify for a mortgage loan under this program. Call or email us and we will connect you with an approved lender!
Also, you will need to attend an approved Homebuyer Education Class. This free 5-hour seminar is a requirement for receiving a loan from the Washington State Housing Commission. Contact us for a list of upcoming classes.
Once you know how much you qualify for, it’s time to look for a home! That’s where we come in. There are lots of excellent homes on the market, but we are seeing buyer activity heat up. We can set you up to receive automatic emails for new listings with your specific criteria and show them to you as soon as they hit the market! Remember, to take advantage of this program, the home you purchase has to close escrow by the end of November. After you find the right home and make an offer, the sale could take 45 to 60 days to close, so the time to start looking at homes is right now. Let’s get started! Call Darla at 509-270-0782 or LeRoy at 509-990-5150 or visit us online at http://www.TheRealEstateAces.com.
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The latest update on the "Cash at Closing" program is that on June 2, the U.S. Department of the Treasury notified the Washington State Treasurer that the IRS will not make the required administrative change because federal law requires tax credit payments to be sent directly to the taxpayer, not third parties such as the Housing Finance Commission. The letter further states Congress had considered but rejected a proposed mechanism for advance payment of the credit, "instead choosing to use ordinary refund procedures to implement the credit."
However, downpayment-assistance programs are still available to first-time home buyers - call for info!
Man, I love the Zags. Me and everyone else in Spokane.
They played an outstanding game today and won in a thriller against 12-seed Western Kentucky. The “Hilltoppers” (goofy name-good team) tied it with just seven seconds to go. Daye inbounded to Demetri Goodson who went coast to coast and banked a layup for the win. I guess he’s known as “Meech” on the team. In our house, we’ve called him “Woodson” ever since the Zags played Memphis at the arena, and Bob Knight was calling the game for ESPN and kept calling him Woodson instead of Goodson.
When it came down to the wire, we were on the floor in front of the TV shouting WOODSOOOOOOON!
There’s a lot to love about Spokane, and from November to March Zags Basketball is near the top of our list. The lady Zags are in the dance this year too, and beat Xavier in the first round, 74-59! The whole GU basketball program, men & women, make us proud to have them in little ol’ Spokane.
GO ZAGS!!!!!
Darla & LeRoy at a Zag's home game December 18th. That was the day it snowed about four feet so we scored tickets on Craigslist. Even though we were in the nosebleed section and the game was a blowout against Texas Southern, there's nothing like being there!
Unless you have been living in a cave, you most likely know that the U.S. Economy is at its lowest point in recent history. That is certainly not good news. But there is a silver lining: Mortgage rates tend to fall when economic news is bad. Basically, mortgage rates are tied to the Bond market so when the economy is weak, money flows out of Stocks and into Bonds. When Bonds go up, interest rates go down.
For a very short period of time at the beginning of this year, we saw some rates as low as 4.75%. It has crept up to the range of 5.00-5.25% since then, for borrowers with excellent credit. If you own your home or are considering buying, act now to take advantage of current low rates for refinancing or purchasing.A word of caution: beware of online lenders that advertise super-low interest rates. They make thier money by adding fees and points on the "backside" of the loan. Call me anytime and I’ll connect you with a trusted local lender.
Let’s do some math. If you are financing $200,000 at 5% interest on a 30-year fixed loan, your monthly payment (principal and interest only) would be $1073.64. That same amount at an interest rate of 6.5% comes to $1264.14. That’s almost $200 per month savings! Keep in mind, in the real world you have to pay taxes and insurance on top of principal and interest, so check with your lender to see how much home you can buy with the payment level you’re comfortable with.
In Spokane, it is an incredibly good time to buy a home, not only because interest rates are great. We also have the classic Supply and Demand principal bearing out: Lots of homes for sale in Spokane means lower prices to you as a buyer. Spokane is experiencing a rare “Buyer’s Market” right now, but that could change if a big chunk of the inventory is snapped up in the hot Spring and Summer selling season.
Back to the interest rate issue. As a general rule, weak economic news means lower interest rates, while positive data causes interest rates to rise. Federal Reserve Chairman Bernanke has stated the recession will be over by year-end if the banking industry is stabilized. Also, the distribution of stimulus money will soon begin to positively impact the various economic indicators that influence rates. Every time this type of positive news is reported, interest rates will crank up a hair, which means we could be back to 6-7% in no time.
If you are looking to buy, we’d love to help you find the home of your dreams. Or, if you know someone who is looking to buy, your referrals are appreciated! And don’t forget - there is an $8,000 tax credit for First Time Buyers if the sale closes before December 1, 2009! See my related blog post or call Darla at 509-270-0782 for more info!
When the final stimulus bill was approved, there were three major changes from the original first time home buyer tax credit program:
· Tax credit was increased from $7,500 to $8,000.
· Homes have to be purchased between January 1, 2009 and December 1, 2009
· Repayment of the credit is no longer required, after 36 months of occupancy and ownership.
Here are the details, as amended by the American Recovery and Reinvestment Act of 2009 (HR 1).
1. The Tax Credit is for home buyers who have NOT owned a principle residence during the three-year period prior to the purchase. Ownership of vacation property or rental property does not disqualify home buyers from this program.
2. The maximum credit is $8,000 or 10% of the home purchase, whichever is less.
3. The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
4. To qualify for the full tax credit, married couples' modified adjusted gross income (MAGI) should be under $150,000 and single filers' MAGI should be less than $75,000. Partial tax credits may be available for married couples with MAGI incomes of over $150,000 but under $170,000 and single filers with incomes over $75,000 but under $95,000. If married couples who qualify for the first-time tax credit file separately, they would both claim 5% of the home purchase or $4,000 each (whichever is less) on their tax returns.
5. Home buyers who qualify for this program, but who do not intend to purchase a home till the end of 2009, may elect to alter their tax withholdings (up to the amount of the of the tax credit) in order to save up money for a down payment. However, if the purchase of the home does not occur, the taxes must be repaid to the IRS. *Please consult a tax advisor before you alter your withholding.
6. There is no recapture or repayment clause IF the home is owned for at least 36 months.
7. The effective date of purchase for new construction (even if buyer owns title to the lot) is the date the owner first occupies the house. So even if construction began in 2008, as long as the home and buyers qualify for the tax credit, they will be eligible if they take possession any time during 2009. However, new construction bought from the builder is only eligible if the settlement date (closing) takes place between January 1, 2009 and December 31, 2009.
8. The law allows taxpayers to elect to treat qualified 2009 purchases as a 2008 purchase so that they can receive the tax credit on their 2008 tax returns.
9. The full amount of the eligible tax credit is refunded to the buyer, regardless of whether the buyer has paid an equivalent amount in taxes.
If you or someone you know could benefit from this program, let us know!
There is a great selection of homes to choose from,
and there are many financing options available as well.
Darla and LeRoy Pilant
1-888-852-ACES
http://www.TheRealEstateAces.com
The $790 billion stimulus package signed by President Obama today increases the home buyer tax credit to $8,000, drops the repayment feature, reinstates last year's 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans, and provides $2 billion in additional funding for states and localities to be used to purchase, manage, repair and resell foreclosed and abandoned properties.
Homebuyer Tax Credit. The bill provides for a $8,000 tax credit that would be available to first-time home buyers (those who haven't owned in at least three years) for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment for buyers who hold onto their property for at least three years. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
The three-year minimum holding period is a safeguard against speculators' use of the credit. The legislation also extends the effective date of the credit to December 1 from June 30, and extends eligibility to borrowers who buy their home with the help of state or local financial assistance that comes from the proceeds of tax-exempt mortgage revenue bonds. The start date for the first time homebuyer credit is January 1, 2009 through and before December 1, 2009.
FHA and conforming loan limits. Specifics have not been released but reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be available at the discretion of the secretary of the U.S. Department of Housing and Urban Development.
Foreclosure mitigation and neighborhood stabilization. Funding for states and localities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized. Some news reports put the funding level at $2 billion.
Rental assistance. Up to $1.5 billion to provide short-term rental assistance and other aid for families during the economic crisis.
Transportation infrastructure. Up to $29 billion for highway construction projects, $8 billion for rail projects.
Rural housing development. Increased funding for the Rural Housing Service direct and guaranteed loan programs.
Low-income housing grants. Allow states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing, including those with or without tax credit allocations.
Tax-exempt housing bonds. Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds.
Energy efficient housing. Grants for energy retrofits for federally assisted housing (Section 8), funding for energy efficiency and conservation block grants to states, increases in the residential tax credit through 2010 for certain energy efficient upgrades and $5 billion to weatherize low-income homes.
This article provided courtesy of:
Greg Wright
2009 President
Washington REALTORS®
We are still with EXIT, but are now at the Valley branch office at 1101 N. Argonne, Suite 101.
We are excited to have access to more tools and technology to better serve our clients. As always, if you have any questions about buying, selling or investing in Spokane Real Estate, call us, email us, or stop by!
The final numbers are in for 2008, and here is how we fared:
Total sales for 2008 were 4,911 compared to 6,935 in 2007. The average sales price for the year was $206,291 and the median price was $184,000. The average sales price is down 2.6% compared to last year while the median price was down less than one percent.
The inventory as of the end of 2008 stands at 2,488 listings compared to 2,553 one year ago. Sales of newly constructed homes ended the year at 804 sales compared to 1,245 in 2007. These numbers are tracked by the Spokane Association of Realtors, and reflect sales of residential properties on one acre or less in Spokane County.
Predictions for 2009 vary, depending on who you talk to. On the positive side, there seems to be quite a bit of pent-up demand from buyers who have stayed on the sidelines hoping prices would nose-dive. That has not happend, nor is it typical for Spokane. With interest rates ranging from 4.75-5.25%, (and the snow melting) we are certainly seeing activity pick up. And for the first time in several months the listing inventory is decreasing. However, the national credit crunch means home loans are more difficult to come by, so borrowers should expect a much higher level of scrutiny in order to meet lender standards.
If you are looking to buy or sell, give us a call and we can help you make it happen.
US News and World Report listed Spokane in their “10 Great Low-Tax Places to Retire” Report. They created a search tool that ranks and analyzes more than 2,000 locations throughout the United States, according to various criteria including cost of living, healthcare, climate, and recreation.
Spokane is well known as a regional health care destination, and certainly our lack of a state income tax helped us make the top 10 list. Also, our home prices are still below the national average. Author Emily Brandon noted “The business-friendly tax structure of Spokane, Wash., is key to attracting prime technology jobs to the area. After work, retirees can stroll along the Spokane River, which runs through the center of town, or hike in the nearby mountains.”
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Spokane was also touted by SmartMeetings.com as one of the best spots to host a meeting or event. With the recent expansion of the convention center, Spokane offers options for meetings of all sizes. Our compact downtown core makes it easy to experience the local flavor between meetings with dining, shopping and entertainment all within a few blocks.
In the article, Julie Keller states “Spokane offers yet another scenic venue for meetings. The city has, in recent years, undergone a cultural and developmental renaissance that combines a respect for history with state-of-the-art updates like free Wi-Fi throughout the downtown core. The city’s downtown shopping center, 100-acre Riverfront Park, the Spokane Falls Skyride and a 26-foot-long Radio Flyer Wagon interactive sculpture are all within walking distance of the LEED-certified Spokane Convention Center.
The convention center offers more than 164,000 sq. ft. of meeting space, but Spokane’s other venues, many of which also espouse green philosophies and historical consideration, are equally enticing for an event. The Davenport Hotel, which was recently named by Condé Nast Traveler as a finalist for “Best Hotel in the U.S. and Canada,” and the Martin Woldson Theater at The Fox, an Art Deco masterpiece, are two such examples.”
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Spokane is a great place to live, so I always like to see us get good press. For more information or to request a free Spokane Relocation Package, visit our website.
As of midnight Friday January 2nd, the total snowfall in Spokane for the season was 66.9 inches. We shattered all the previous records. It is getting hard to come by a shovel, scraper, snowblower or roof rake anywhere. One day before Christmas we stopped to pick up some replacement wiper blades at Shucks Auto, and the parts guy told us rather grumpily that they were sold out… he had sold 1,500 wiper blades that day!
It seems like we haven’t gone a whole 24 hours in the last two weeks without getting anywhere from 3-10 inches, and the forecast keeps calling for more of the white stuff.
After this last snowfall, the trees had a heavy coat of snow. When the sun came out later in the day it was absolutely beautiful. I took several photos around our house, take a look at the slideshow!
Home staging is the art of maximizing a home’s best features to create an edge over the competition. That means cleaning, eliminating clutter, working with the “flow” of a home, neutralizing colors, creating the illusion of space, editing and arranging furniture, and enhancing curb-appeal. Other tricks of the trade include using design psychology to appeal to a buyer’s emotions. The end goal is to make the home appeal to the largest number of buyers by transforming it into an appealing and attractive product for sale. For vacant homes, minimal staging furniture helps create an inviting space where buyers can envision themselves living.
In our current market, where listing inventory is high and market time can stretch into several months, staging can make a huge difference. Research has shown that properly staged homes sell for 5% more on average than non-staged homes. Survey results for average market time vary according to source and market, but most indicate that staged homes sell in half the time of non-staged homes.
I recently earned the Accredited Home-Staging Specialist (AHS) designation, joining a growing group of real estate agents who recognize the importance of providing value-added service to their clients. For general information on how staging can help sell your home, visit www.stagingspecialist.com, and for specific help, contact me for a free preliminary assessment.
Yep, you read that right. Most people know by now that the Spokane Real Estate market has not experienced the steep decline in values that many other locations have seen. Although listing inventory is high and total sales have declined, we’ve held fairly steady on prices. But that doesn’t mean there are not great buying opportunities here.
One of Spokane’s largest and most reputable home builders, Sullivan Homes, went into court receivership in early August. Spokane attorney Nancy Isserlis was appointed as the receiver of Sullivan Homes' assets, which included 32 homes and 72 building lots, with a combined list price of $20.7 million.
Here’s a link to the story that ran in the newspaper: Sullivan Homes Files to Liquidate: http://www.spokesmanreview.com/breaking/story.asp?ID=15928
My husband and I recently represented the purchasers of one of Sullivan’s new construction homes in the new Bidwell Park development. While the offer process took several extra days than what is typical, after a few back and forth counters we signed around a deal at $318,000 on a beautiful home that was listed at $364,900. That’s $46,900 or 13% off the asking price, (which originally started at $379,850). How’s that for built-in equity?
Sullivan has always built a good home, with quality materials and workmanship. So if you are looking for new construction, this is a great opportunity. There are still dozens of Sullivan homes available in some of Spokane’s nicest developments – Legacy Ridge, Canyon Bluffs, Morningside Heights, and Bidwell Park to name just a few.
If you would like a list (or a tour!) of the homes that are still available, just let me know. Because there are several different lenders holding the paper on these homes, there are no guarantees on how each will respond to offers. But it is a great opportunity to get a screaming deal on a new house.
Forbes recently announced their 10th annual ranking of the Best Places for Business and Careers. The findings help to paint a picture of what is happening in the overall U.S. economy, as well as in specific metro areas across the country. Plus, the rankings offer a wide range of choices for the best places to launch a new business, consider for relocation, and much more.
This year, Raleigh, N.C. is number one for the second year in a row due in part, to its strong job growth. For the third straight year, the Southeast is home to half of the top ten, with Lexington, Atlanta and Richmond joining the ranks. The Pacific Northwest is well represented with Boise at number two and Olympia and Spokane in the eight and nine spots. Rounding out the top ten is Knoxville, Tenn. where business costs are 14% below the national average.
Common themes for the business-welcoming metros include solid job growth, an educated labor supply and low business costs.
2008 Top Ten Places For Business and Careers
1. Raleigh, North Carolina (#1, 2007)
2. Boise, Idaho (#3, 2007)
3. Fort Collins, Colorado (#28, 2007)
4. Des Moines, Iowa (#4, 2007)
5. Lexington, Kentucky (#30, 2007)
6. Atlanta, Georgia (#25, 2007)
7. Richmond, Virginia (#14, 2007)
8. Olympia, Washington (#10, 2007)
9. Spokane, Washington (#20, 2007)
10. Knoxville, Tennessee (#5, 2007)
For details on the full rankings, including 179 Smaller Metro Areas, visit: http://www.forbes.com/bestplaces/
Spokane is a great place to live! I specialize in helping people relocate to the area. See my website to request a free relocation package.
If you plan to buy a home any time soon, you have probably considered most of the obvious questions like, what neighborhood you want to live in, how many bedrooms you need, and when you want to move. But before you get too far down the road, you’ll need an answer to an extremely important question: “What is my credit score?”
By now, everyone should know that lenders are more likely to approve your loan and give you a better interest rate if you have a higher credit score. But this has become even more important right now, as lenders everywhere are tightening their standards after the sub-prime shakeout.
Many people dread finding out what their score is, wondering if real or imaginary financial skeletons will come f the proverbial closet. Hit your fear of the unknown head-n and get a copy of the report from a reputable source. No matter how ugly it is, the good news is that although it may take time, you CAN improve your score. (If I can do it – so can you!)
There is still a lot of confusion as to how credit scores are calculated. And to make things more interesting, Fair Isaac Corp. (the namesake for “FICO”) is introducing a new scoring new model, dubbed FICO 08.
Here are my personal “Top 5 Tips” for keeping your score in good standing:
- Pay your bills on time. No surprises here.
- Never, ever let a mortgage, credit card or auto payment go beyond 30 days late. Trust me on this one.
- Keep a mixture of credit accounts open, but don’t carry very large balances on any of them. You will get dinged if your credit cards are at or near the limit.
- When you pay off a credit card balance, it is not always best to close the account. You’ll gain points for having accounts open and in good standing for a long time.
- Get a copy of your report once a year to make sure the information is accurate. (Especially important if your name is John Smith or you have a family member with the same name.)
For more information on credit scores and the new scoring system, here are some excellent articles:
What's In Your Score
Six Ways to Kill Your Credit Score
Importance of Credit Scores
If you find this information helpful, let me know. Whether you’re buying, selling, or just curious about Spokane market information, I'm glad to help.
The Spokane residential real estate market continues to buck the national trend of declining values. Several factors are combining in the Spokane region, including positive in-migration, dwindling inventory in new construction, rising rental rates, and lack of supply of buildable land. The following statistics back up these facts:
- Forbes ranked Spokane 9th in the nation for housing appreciation, with a year-to-date increase in prices through June 2007 of 10.4%.
- Spokane is still a bargain. The median home price is $197,700 - less than a quarter of those in San Francisco and a third of those in Los Angeles.
- Apartment vacancy rates are extremely low, at approximately 4.2% in Spokane County. The last time we had a vacancy rate this low was during the housing boom of the early 90's.
- 40% fewer residential building permits have been drawn year-to-date 2007 as compared to 2005.
- The current mortgage foreclosure rate in Washington is less than 1%. It is currently lower than it was 10 years ago. As of mid-June, sub-prime, adjustable rate loans represented 20% of loans nationally, but just 6% of home loans in the state of Washington.
- Positive job growth put Spokane #1 in the state per capita in 2006. The unemployment rate in Spokane County for the second and third quarter of 2007 was the lowest consecutive two quarters since the third and fourth quarters of 1999.
- Retail sales tax collection is up 15% over 2006 year-to-date.
- Revitalization of Spokane's downtown district continues, spurred by the creation of RiverPark Square Mall and the renovation of the historic Davenport Hotel. More condominiums are being built, and the Kendall Yards urban development is now underway. It is estimated to have a total economic impact of nearly $3 billion.
Real Estate prices are a factor of supply and demand. In the second and third quarters of 2007, the inventory of listed properties in Spokane increased significantly, creating a large selection for buyers and more competition for sellers. At the same time, the media cranked out stories about the sub-prime mortgage crisis, housing bubbles and all kinds of negativity, scaring buyers to the sidelines. Residential sales in Spokane reached a low point in September '07 with 521 units closed. October bounced back with 593 sales. With roughly 3,000 properties on the market, I believe there is a temporary window of opportunity for buyers and investors to pick up Spokane properties at below market prices. But with all the strong economic factors we have going for us locally - I don't think this opportunity will last for long. More people continue to relocate to Spokane, jobs are being created, rents are going up, retail is strong, and home prices are forecasted to continue to trend higher.
If you are thinking of investing in Spokane, now is the time!
*Statistics provided by WSU Center for Real Estate Research, National Association of Realtors, Washington Association of Realtors, US Dept of Labor, Construction Monitor, The Spokesman-Review, and the Journal of Business