Update for First Time Homebuyer's Tax Credit

First-Time Home Buyer Tax Credit for Closing Will Move Market
WASHINGTON, May 29, 2009
Consumers across the country can now take advantage of a Federal Housing Administration program to allow qualified home buyers to apply the $8,000 tax credit when purchasing a home. FHA will now permit its lenders to provide a short-term bridge loan that will let qualified home buyers use the tax credit to either make a larger downpayment above the FHA required 3.5 percent, cover closing costs, or buy down their interest rate.

“A true housing recovery depends on buyers returning to the market and reducing inventory,” said National Association of Realtors® President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “Since many of the homes available are lower priced starter homes, the ability for individuals to use the tax credit at closing should have a meaningful impact on home sales and values and will allow thousands of families to achieve the dream of homeownership.”

Shaun Donovan, secretary of the Department of Housing and Urban Development, announced the change today. In an address to several thousand Realtors® gathered two weeks ago at NAR’s Real Estate Summit: Advancing the U.S. Economy, Donovan announced HUD’s plan to offer the tax credit as downpayment assistance. Donovan detailed the modifications to that original proposal and announcement.

“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans,” Donovan said. According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans allowing eligible home buyers to access the funds immediately at the closing table.

NAR has supported monetization of the tax credit, which was part of an Obama administration housing stimulus plan enacted earlier in the year. NAR petitioned HUD to allow home buyers to use the $8,000 tax credit to help them cover downpayment or closing costs to bring new home buyers to the market and stimulate home sales.

“We think this is a good program; our members have been getting many inquiries from potential buyers about it,” McMillan said. “NAR is pleased that this enhancement has been made to the administration’s housing recovery program. As we have heard before, there can be no economic recovery without a housing recovery. With an abundance of inventory, reduced home prices, historically low interest rates and now the availability of the tax credit at closing, we expect to see the housing market further stabilize and improve.”

Please let me know if you have any questions!

Thanks,
Brian Rule
Realtor - The Rule Team
Keller Williams Premier Realty
309-303-0557
brian@TheRuleTeam.com
www.TheRuleTeam.com
http://DigitalCompass.acnrep.com

This Month In Real Estate: 2009 First Time Home Buyer Tax Credit Special Edition

Good information about the Tax Credit for First Time Homebuyers! Please let me know if you have any questions!!

Thanks,
Brian Rule
Realtor - The Rule Team
Keller Williams Premier Realty
309-303-0557
brian@TheRuleTeam.com
http://www.theruleteam.com/
http://digitalcompass.acnrep.com/

Peoria Area Market Update - April 2009

I just finished going through April's market numbers (I know... it's a little late since we are almost done with May, but better late than never!) and it looks like there is still a lot of opportunities in the market! Here is a recap:

For market activity in April, here are the numbers. The stats are YTD, compared to the YTD numbers for April of last year:

Number of New Listings are down over 20%
Number of Pending Sales are down over 30%
Number of Closed Sales are down over 27%

Average Days on Market have increased almost 10% to 89 days

The Median Home Price has decreased 6% = $108,000, which is still above the Median Home price for 2007 = $106,250

The List Price to Sale Price Percentage has dropped to 91.2%, which is the lowest it has been in over 6 years!

The Housing Affordability Index is 215, which is up over 12%, and it is a great indicator of just how affordable it is to live in the Peoria area! The baseline is 100...

Here is the supply of single famile, pre-owned homes, in terms of months of inventory, in the market:

Overall - 6.2 months
Up to $75,000 - 4.5 months -- A seller's market!!
$75,001 to $125,000 - 5.7 months
$125,001 to $225,000 - 6.0 months
$225,001 to $500,000 - 10 months
$500,001 and Up - 20.4 months

So depending on what price range you are looking at, the market is in a different level of activity. And it will mean something different for a buyer or a seller as well. If you have any questions about any of this information or would like to know more about this market please let me know. It would be my pleasure to help in any way that I can!

Thanks,

Brian Rule
Realtor - The Rule Team
Keller Williams Premier Realty
309-303-0557
brian@TheRuleTeam.com
www.TheRuleTeam.com
http://DigitalCompass.acnrep.com

More Home Buyers Lured to Foreclosed Properties

"More Home Buyers Lured to Foreclosed Properties"
Many households say that foreclosures are a bargain and are increasingly eager to buy them, according to a Harris Interactive survey conducted for Trulia.com and RealtyTrac.

The survey found that 55 percent of U.S. adults are at least somewhat likely to consider purchasing a foreclosed home, up from 47 percent who answered the same question in November 2008.

But buyers aren’t naïve about the hassles involved with purchasing foreclosed property. About 85 percent said that they could identify negative aspects, up from 80 percent who felt the same way last November.

71 percent were concerned about hidden costs;
46 percent believe the process is risky;
31 percent fear the property will lose value.

Buyers of foreclosures also expect hefty discounts – at least 25 percent.

Source: RealtyTrac.com and Trulia.com (05/20/2009)"

Please let me know if you have any questions!

Brian Rule
Realtor - The Rule Team
Keller Williams Premier Realty
309-303-0557
brian@TheRuleTeam.com
www.TheRuleTeam.com
http://DigitalCompass.acnrep.com

Just made some updates to my Facebook Real Estate Fan Page. Looking to ramp up the info here. Check it out: http://ping.fm/jBRay

Just looked at the housing stats for Peoria IL, and what a market of opportunity we have right now!!

New grant funded through "The Recovery Act" to increase jobs & boost local housing

RISMedia Real Estate News Industry Trends Marketing - Residential & Commercial: "Grant Funded Through ‘The Recovery Act’ to Increase Jobs and Provide Boost to Local Housing Economies"

Take a look at the full story - http://tinyurl.com/pu7zo8

Thanks,
Brian Rule
Realtor
Keller Williams Premier Realty
(309) 303-0557
brian@TheRuleTeam.com
www.TheRuleTeam.com

This Month In Real Estate (US): May 2009

This is really good real estate information!!

Thanks,

Brian
Realtor
Keller Williams Premier Realty
(309) 303-0557
brian@TheRuleTeam.com
http://www.theruleteam.com/

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