Many people are talking about the expiration of the 1st Time Home Buyer Tax Credit, and how this will affect the market.  In reality, only a small percentage of recent home buyers made their decision because of the tax credit.  Home Buyers are more focused on interest rates, good house values and job security. 

As we move forward, I believe that buyers will continue to buy as long as the values are there.  The market will continue to be stable, as long as interest rates remain low and the job market remains stable.  In my experience, people adapt to new realities fairly quickly. 

In order to qualify to buy a home, consumers will need to have a good credit rating and stable job, as well as money for a down payment,.  The thing that boggles my mind,  is that was always the case.   I never understood why people would expect to finance 120% of their purchase, or get an “interest only” loan….  Such pressure- doomed to fail!

The Federal tax credit was necessary to stabilize the Real Estate market, and create a comfort zone to prevent consumer concerns that the real estate market was spiraling down out of control.

Now to deal with the issue of “value” . Simply, what a buyer is willing to pay and a seller is willing to sell.  If it is a value, the consumer will make the purchase. People need to understand that every situation is different. As real estate professionals, we establish a guideline of value for certain properties. That is done by taking into consideration many factors, such as condition, saleability, location and demand.  But consumers also need to understand that real estate is not an exact science.  Also consider that something that can’t be accounted for when setting the value of a home is emotions….

The market will continue to move forward, so put on a comfortable pair of shoes, and let’s go looking at houses!

The Greater Capital Association of Realtors just released the February numbers and as expected the market continues on a recovery mode. I would not say the market is on fire, but I most definitely believe that our market is on a steady course.
Many people ask if it’s a buyer’s market? the answers is not, as far as I’m concerned there is not such a thing as buyers market or sellers markets, consumers buy and sell houses when they are ready to do so, sometimes takes a bit longer but eventually will sell, there are many factors that influence peoples decision making, one is are interest rates low enough, job security among others.
So the big question is what’s next? In my opinion the market will continue as people get used to the new reality and adjust to such…..

If you are interested on downloading the February 2010 monthly market indicators report, click here, as always feel free to contact one of our agents for a more in-depth report for your specific area.

HUD has announced a temporary waiver of the 90 Day Flipping Requirements Rule. The waiver is effective for FHA purchase transaction loans with purchase contracts signed on or after February 1, 2010.
Loans with purchase contracts prior to February 1, 2010 are not eligible for the waiver. The waiver is limited to those sales meeting the following general conditions which are designed to protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting buyers:

All transactions must be arms-length, with no identity of interest between the buyer and seller or any other parties participating in the sales transaction, including:

seller or any other parties participating in the sales transaction,

Seller must hold title

LLCs, corporations and trusts must be established in accordance with state and federal law

No evidence of previous flipping within 12 months

Evidence that property was marketed openly; via MLS, auction, FSBO

If the sales price of the property is 20% or more above the seller’s acquisition cost, the waiver will only apply if the lender meets the following conditions:
Significant work has been done to the home (documented by a second appraisal verifying that legitimate repair and rehabilitation has been done to substantiate an increase more the 20%); or,

In cases where no work has been done, the appraiser must provide explanation to support the increase since the prior transfer; and,

A property inspection must be provided to the buyer prior to closing. (The lender may charge the borrower for the inspection.) The inspector does not need to be FHA approved, but must have NO interest in property, must no receive compensation other than from the lender and may not be involved with the repairs recommended from inspection. At a minimum, the inspection MUST include:

Property structure, foundation, floor, ceiling, walls and roof;
Exterior, siding, doors, windows, any decks, balconies, walkways and driveways;
Roofing, plumbing, all electrical, heating and A/C systems;
All interiors;
All insulation/ventilation systems as well as fire places and fuel burning appliances

The waiver is scheduled to be effective for one year. To read The complete text of the Waiver click here

Apparently change is in the air…  FHa is changing their requirements making it a bit harder to qualify, also of note is the First Time Buyer Tax Credit is due to expire in April and appears that will not be an extension.  This and other factors is making the market quite active.