Posts Tagged ‘Homeowners’

By April of 2009, America was just starting to climb out of the trough that had been dug by the banking collapse at the end of 2008. Wall Street had hit rock bottom just a month earlier, when the Dow closed on March 9th at the 65-hundred mark. By April, it had rebounded to nearly 8-thousand mark, and just this past week, it’s been flirting with 11-thousand.

The stock markets are well into recovery because America is as well. A year ago, the jobless rate was climbing with no end in sight. Hundreds of thousands of jobs were still being lost each month. Now, the rate has steadied – in fact, it’s remained the same for the past three months, and in March, the economy actually added jobs – 162-thousand of them – the fastest pace in three years. A sure sign of better things to come.

But there’s still a lot of work to be done on the unemployment side of things…consider that overall, last March, the unemployment rate sat at 8-point-5 percent, and today, it’s at 9-point-7.

With more people now looking for work, consumer confidence is on the rebound. In fact, that index has more than doubled over the past year.

Now, there have been worries that the housing market is actually lagging the rest of the economy. And, it’s true that foreclosures are pacing the market right now and driving down prices. The national median price for a home is 165-thousand dollars –nearly two percent less than a year earlier.

Those lower prices are proving to be a catalyst to get home sales moving again. Combined with the federal tax credit and mortgage rates that remain near historic lows despite some recent increases, many Americans are not tasting lemons, but lemonade, as they enjoy the opportunity to become homeowners.

The Pending Home sales report issued just this past week suggests we’re in for a spring surge in home buying, with new contracts outpacing last year’s totals by double digits across the country. Even in a buyer’s market, all homeowners will benefit in the long run, because greater sales will drive down inventory and create a more stable housing market.

So what’s all this mean to you? Let’s take a look at that. If you’re a homeowner with no plans to move? You might benefit by possibly refinancing your home with a lower interest rate…savings that will carry well into the future.

If you’re buying…you’re able to take advantage of some of the most affordable conditions in history, Prices are low, interest rates are low, and the tax credits make a good situation even better.

And if you’re selling? Well, some areas are enjoying price gains. That’s a welcome development. Also, in many areas, it’s taking far less time to sell your home. The increases in buying activity are driving down inventory in many parts of the country…meaning you’ll have fewer competitors when it comes to selling your house.

But let’s remember that whether you’re buying or selling, we’re still in a fragile recovery and this is no time to go it alone. You’re going to need the skills, the expertise and the local market knowledge that only a REALTOR® can provide.

So as we take this Snapshot of America…it’s clear. There’s still a lot of hard work ahead. But many of us can see those green shoots of recovery in our states, in our neighborhood, and maybe even in our individual real estate transactions. And as always, all of us here at Real Estate Today wish you success…in every part of your real estate pursuits.

When we asked REALTOR® Elizabeth Blakeslee what exactly a Home Owners Association was her answer was simple: “A system of communal living.”

An HOA can take care of small things, like yard maintenance at your townhome, to big things, like paying for your subdivision’s pool, or mediating disputes between neighbors. And while we’ve heard horror stories about overzealous HOAs, they are a good thing. Without them, you might wake up one morning to find your neighbor’s house painted purple!

Elizabeth says that if you’re buying a home and are concerned about restrictions, make sure you read the rules! If you’re looking at a home in a neighborhood with an HOA, they are required to give you a list of regulations and fees associated with the group. For example, Elizabeth says in Washington, DC, you’re allowed three business days. Take a close look at their budget, as well, to see what they spend your money on. If you don’t like it, or don’t like the rules associated with it, look elsewhere for a home.

Every association has a different level of governing depending on where you are. Some associations in subdivisions watch over everything from how you mow your lawn to the color of your home to the height of your fence. They also take care of common areas, including playgrounds, tennis courts and pools. Smaller communities generally have less oversight. Elizabeth also notes that the more there is in your community, the higher your HOA fees are likely to be. Make sure you take that into account when you’re shopping for a home!

Elizabeth Blakeslee is NAR’s 2008 Regional Vice-President for the Mid-Atlantic Area, and a REALTOR® with Coldwell Banker Residential Brokerage in Washington, D.C.

Going forward, the $8000 tax credit will be available at the settlement table, instead of after closing, for all FHA loans. It’s a bold step that could very well help jump start housing markets all across the nation. Following up on many state programs, first time homebuyers and buyers who have not owned a home in the last three years, will now have $8000 available up-front for their down payment, and for closing costs, if they get an FHA mortgage, rather than having to wait until they file their taxes.

The U.S. Secretary of Housing and Urban Development talked exclusively to Real Estate Today minutes after the announcement.

Click here to listen to NAR’s Talk Radio Director Stephen Gasque interview the Secretary.