Pending Home Sales Continue to Rise – Updated Statistics

From the desk of Ken Bryant at Lake Chatuge on the state line between Hiawassee, GA and Hayesville, NC

Daily Real Estate News  |  November 2, 2009  |  

Pending home sales rose again, marking eight consecutive monthly gains – the longest streak since measurement began in 2001, according to the National Association of REALTORS®.

The Pending Home Sales Index,^* a forward-looking indicator based on contracts signed in September, rose 6.1 percent to 110.1 from a reading of 103.8 in August, and is 21.2 percent higher than September 2008 when it stood at 90.9.

The gain from a year ago is the largest annual increase on record, and the index is at the highest level since December 2006 when it was 112.8.

President Obama Signs Extension/Expansion of First-time Homebuyer Tax Credit

From the desk of Ken Bryant at Lake Chatuge on the state line between Hiawassee, GA and Hayesville, NC

President Obama approved an extension/expansion of the first-time homebuyer tax credit on Fri, Nov. 6. This bill opens the credit to current homeowners and extends the deadline for homebuyers to have a contract in place to April 30, 2010.

For more information, please see the Research section on my Realtor website which is located at the following url:

http://www.kenbryant.remax.com/pages/research.aspx

The New and Improved Home Buyer Tax Credit

From the desk of Ken Bryant at Lake Chatuge on the state line between Hiawassee, GA and Hayesville, NC

The much-anticipated extension to the home buyer tax credit has finally been approved. 

First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the House voted 403-12 Thursday, November 5, to extend and expand the tax credit to include many buyers who already own homes. The Senate approved the measure Wednesday, November 4, with a vote of 98-0, and the White House said President Barack Obama would sign it Friday.

First-time home buyers have been eligible for tax credits of up to $8,000 since last January as part of this year’s economic stimulus package.  The newly backed program will expand the credit to include existing home owners. 

Under the revised program, those who have owned a home for at least five years will be able to apply for tax credits of up to $6,500 when they purchase their next home.  To qualify, buyers will have to sign a purchase agreement by April 30, 2010 and close by June 30.

The maximum purchase price on a home will be $800,000 with vacation homes not eligible. Income limitations are $125,000 for single tax payers and $225,000 for joint filers.

The National Association of Realtors (NAR) and the National Association of Home Builders (NAHB) have been lobbying hard for the extension and expansion of the tax credit.  NAR claims that so far, about 1.4 million first-time homebuyers have qualified for the program and they estimated that 350,000 of these buyers would not have otherwise purchased.

The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.

Please feel free to download a matrix with the changes and the FAQ from the National Association of Realtors from my Realtor website which is located at the following url:

http://www.kenbryant.remax.com/pages/research.aspx

Pending sales rise for 8th month

From the desk of Ken Bryant at Lake Chatuge on the state line between Hiawassee, GA and Hayesville, NC

November 2, 2009 

Pending sales of resale homes rose for the eighth straight month in September and was up 21.2 percent compared to the same month last year.

The National Association of Realtors reported that the index rose 6.1 percent from August to September, reaching 110.1 — an index score of 100 is equal to the average level of sales contract activity in 2001, which was the first year to be examined for the index.

The index for all of 2008 was 87.1; in 2007 it was 96.3, and in 2006 it stood at 111.9.

Homebuyer Credit Gets New Life, New Tax Credit Considered

From the desk of Ken Bryant at Lake Chatuge on the state line between Hiawassee, GA and Hayesville, NC

Daily Real Estate News  |  October 29, 2009 

Latest Update on Tax Credit

Key lawmakers in the Senate have tentatively agreed to extend the existing $8,000 tax credit for first-time home buyers.  Senate leaders of both parties and key Senate Finance Committee members and staff, and tax credit sponsors Dodd-Lieberman-Isakson agreed on October 28 to extend and expand the housing tax credit.

Key lawmakers in the Senate have also tentatively agreed to offer a new $6,500 credit for existing homeowners who have lived in their current residence for a consecutive five-year period in the past eight years. Home buyers must be under contract by April 30, 2010, and close before July 1.

Source: Wall Street Journal, Corey Boles and John D. McKinnon (10/29/09)

Rules Released on Military Home Owners Relief

From the desk of Ken Bryant at Lake Chatuge on the state line between Hiawassee, GA and Hayesville, NC

Military personnel who bought their primary home before July 1, 2006, and were ordered at least 50 miles away on permanent reassignment between February 1, 2006, and September 30, 2012, and sell at a loss are eligible for assistance under rules just released by the federal government. The assistance was authorized under the economic stimulus act passed earlier this year.

If you are interested in reading more about the details, please see the Links page on our Realtor website:

http://www.kenbryant.remax.com/pages/links.aspx

Big Rebound in Existing-Home Sales Shows First-Time Buyer Momentum

From the desk of Ken Bryant at Lake Chatuge on the state line between Hiawassee, GA and Hayesville, NC

Washington, October 23, 2009

Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of Realtors®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – jumped 9.4 percent to a seasonally adjusted annual rate¹ of 5.57 million units in September from a level of 5.09 million in August, and are 9.2 percent higher than the 5.10 million-unit pace in September 2008. Sales activity is at the highest level in over two years, since it hit 5.73 million in July 2007.

Lawrence Yun, NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” he said. “We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.”

Record Streak Continues for Pending Home Sales

From the desk of Ken Bryant at Lake Chatuge on the state line between Hiawassee, GA and Hayesville, NC

Washington, October 01, 2009

Pending home sales have increased for seven straight months, the longest in the series of the index which began in 2001, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in August, rose 6.4 percent to 103.8 from a reading of 97.6 in July, and is 12.4 percent above August 2008 when it was 92.4. The index is at the highest level since March 2007 when it was 104.5.

The Pending Home Sales Index in the Northeast jumped 8.2 percent to 85.3 in August and is 12.0 percent higher than August 2008. In the Midwest the index rose 3.1 percent to 90.8 in August and is 7.6 percent above a year ago. In the South, pending home sales increased 0.8 percent to an index of 104.6 and is 8.2 percent above August 2008. In the West the index surged 16.0 percent to 130.5 and is 22.3 percent above a year ago.

___________

*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

Existing-home sales rebound to 2-year high

FORECLOSURES, TAX CREDIT DRIVE RISE [Excerpts]

By Renae Merle

Washington Post Staff Writer

Saturday, October 24, 2009

Existing-home sales climbed 9.4 percent in September to their highest level in more than two years, fueled by demand for cheap properties and an $8,000 tax credit for first-time buyers, according to industry data released Friday.

Sales of existing homes, including condos and single-family residences, reached an annual rate of 5.57 million units in September, their highest level since July 2007, according to the National Association of Realtors. The monthly increase was the largest on records that date back to 1999 and was far better than analysts had expected. Sales were up 9.2 percent from the same period a year ago.

This is the latest sign that the housing market has begun to rebound, if only temporarily, as buyers take advantage of record-low mortgage rates and pounce on cheap foreclosed properties, analysts said. Sales have increased five of the last six months and rose throughout the country last month. In the South, which includes the Washington region, sales rose 9 percent last month. Also, the inventory of homes on the market shrank again, though analysts said it needs to come down more. It would take 7.8 months to sell all of the homes on the market at the current rate.

“The supply of used homes for sale is also steadily declining, an encouraging trend,” said Mike Larson, a real estate analyst at Weiss Research, a research firm.

In the meantime, the housing market remains weak and prices continue to decline, analysts said. The national median existing-home price fell to $174,900 in September, down 8.5 percent from the same time last year, according to the Realtors. Sales prices fell the most in the West, 15 percent, but the South saw a 7.6 percent decline.

That is a smaller price drop than in previous months, reinforcing hopes that home prices may be starting to stabilize, said Lawrence Yun, the Realtors’ chief economist. “It’s a positive momentum, but whether we have a firm stabilization is unclear,” he said.

Half of States Avoid Big Housing Drop

From the desk of Ken Bryant at Lake Chatuge on the state line between Hiawassee, GA and Hayesville, NC

Daily Real Estate News  |  October 22, 2009 

Parts of the U.S. with plenty of open space and moderate prices have mostly escaped the housing meltdown.

Over the past three years, home prices have risen in most of the metro areas of 23 states, according to analytics firm Fiserv. States mostly likely to escape the housing meltdown were in the South, the Plains states, and most of the non-coastal West.

The state that is the best example of this phenomenon is Texas, where home prices rose in all 26 metro areas over the last three years.

The 16 states hardest hit by the decline were in New England and the Northeast, plus California, Florida, Nevada, and Arizona.

The seven cities that are the best bets for a quick recovery are San Francisco, Seattle, Pittsburgh, Rochester, N.Y., Memphis, Tenn., Oakland, Calif., and Birmingham, Ala.

Source: CNNMoney.com, Les Christie (10/21/2009)