Thursday, November 11, 2010
Wednesday, November 10, 2010
Tuesday, February 23, 2010
January 2010 Market Report
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January 2010 Market Report for Humboldt County
Welcome to another Market Report for Humboldt County Real Estate Sales. Sales numbers slipped for the first month of January, but this is standard for the First month of the year. It tends to be the slowest time because of the holidays the prior month.
January 2009 saw 80 sales vs. 81 sales for 2010, but there were more listings in 2009 (1416) than in 2010 (1153). Inventory is down to 14.23 Months of Inventory vs. 17.70 for 2009.
What does this mean? Less downward pressure on prices, this is good for sellers but signals to buyers that the market has likely hit the bottom. Coupled with the highest afforbabilty since March of 2004 (27%) and low interest rates, this makes for an excellent buying opportunity.
Where does the market go from here? Good question! If I could predict the future, I'd be living on my own private island somewhere, but since I can't I'll have to give it my best guess. I believe that the prices of homes will bump along the "bottom" until there is a real economic recovery. Look for sales activity to increase through the year and In the mean time, there is a very real possibilty that two factors could affect the market.
1. Credit could dry up even further. Thus far, FHA has powered the market across the country, but if HUD makes significant changes to FHA loans by increasing the down payment from 3.5 % to 5% or requiring higher credit scores this could push many more buyers out of the market. This loweres the demand and pushes prices lower.
2. The Federal Tax credit for First Time and Move Up buyers is not renewed (again) causing sales activity across the nation to drop substantially. This is scheduled to occur on April 30th. (You must be in escrow on a home by that date to qualify.)
In any event as we move towards recovery interest rates are likely to increase, this affects a buyer by cutting into their buying power, so I think now is a great time to buy.
No matter what happens, a home is always more than an investment, it's a place to celebrate and live life with friends and family. Feel free to browse Humboldt County Listings and then call me if you see something you like, I'd be happy to help you find a place to call home!
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Thursday, December 10, 2009
Extension and Expansion of the Federal Tax Credit!
President Obama on Friday, Nov. 6 signed a bill extending and expanding the Federal Tax Credit for Home Buyers. The bill passed the U.S. House of Representatives yesterday and the U.S. Senate late Wednesday.The tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. First-time home buyers will continue to receive a tax credit of up to $8,000, while existing homeowners will receive a reduced credit of up to $6,500. Existing homeowners will be eligible for the $6,500 if they have lived in their current residences for at least five years. The bill also will increase the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers, to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000.Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The bill maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.
What does this mean? Well, First Time Buyers will get up to an $8000 tax credit to buy their first home and move up buyers will qualify for a $6,500 credit. I think that this will spur Market Activity for the first half of 2010 and afterwards, we may see a slight drop in activity. Time will tell, but if you're thinking of moving up to a larger house, 2010 is your year to do it!
What does this mean? Well, First Time Buyers will get up to an $8000 tax credit to buy their first home and move up buyers will qualify for a $6,500 credit. I think that this will spur Market Activity for the first half of 2010 and afterwards, we may see a slight drop in activity. Time will tell, but if you're thinking of moving up to a larger house, 2010 is your year to do it!
Wednesday, December 2, 2009
Seller Pays for Buyer's Closing Costs
Welcome again to my Real Estate blog. I recently had an issue come up in a transaction that left my buyers a bit confused, and could potentially be a problem for Buyers in the future, so I thought that I'd address this: Closing costs.
These days, many buyers are asking sellers to pay for their closing costs or a portion of the closing costs. This is the money that is required to close a transaction. This includes loan fees/expenses, the down payment, buyer's title insurance(ALTA), seller's title insurance(CLTA), escrow fee and associated tranfer fees (private, city or county).
There are only a fee of these expressly referenced in the CAR purchase agreement:
1. CLTA (Owner's Title Insurance).
2. Escrow Fee
3. Tranfer Tax (Humboldt County)
Typically, these are split between Buyer and Seller - 50/50, and are only a small portion of these expenses. On a $300,000 home the escrow fee is: $621.00, the CLTA is $1184.00 and the transfer tax is $1.10 per 1000 or $330.00. The total is: $2135.00
The problem arose because of the number of offers I'd written for these particular buyers. I have written 5 offers for them The buyers didn't want to hear the full explaination each time, so when it came to the "allocated costs"I said, "The costs are split." This meant that the costs discussed in the contract were split: escrow, title insurance, and transfer tax. The buyers thought we were splitting the closing costs. They thought that is was ALL of the closing costs.
Quite a big misunderstanding if I do say so myself.
As a buyer, you have the right to ask a seller to pay for some of the closing costs, but it has to be specifically asked for. A dollar figure needs to be provided to the seller so they know what their bottom line is. This is only fair.
Ideally, you have met with a lender and received a "Good Faith Estimate". This is a document that out lines the closing cost and all of the fees for any given loan amount. By law it has to be provided to a borrower prior to closing, but the lenders that I use provide them up front. This way you will know what you can ask for.
The bottom line is that if you pay them now or have the seller pay them, they will be paid. If you have them paid upfront, it's done. If they are paid for by the seller, they are financed over 30 years. This is because the seller would have taken less for an offer that didn't include closing costs. So keep that in mind: there are no freeies in real estate: you always pay.
Negotiations can be tricky, but keep a realistic outlook and try not to be attached to the outcome. Happy Home shopping!
These days, many buyers are asking sellers to pay for their closing costs or a portion of the closing costs. This is the money that is required to close a transaction. This includes loan fees/expenses, the down payment, buyer's title insurance(ALTA), seller's title insurance(CLTA), escrow fee and associated tranfer fees (private, city or county).
There are only a fee of these expressly referenced in the CAR purchase agreement:
1. CLTA (Owner's Title Insurance).
2. Escrow Fee
3. Tranfer Tax (Humboldt County)
Typically, these are split between Buyer and Seller - 50/50, and are only a small portion of these expenses. On a $300,000 home the escrow fee is: $621.00, the CLTA is $1184.00 and the transfer tax is $1.10 per 1000 or $330.00. The total is: $2135.00
The problem arose because of the number of offers I'd written for these particular buyers. I have written 5 offers for them The buyers didn't want to hear the full explaination each time, so when it came to the "allocated costs"I said, "The costs are split." This meant that the costs discussed in the contract were split: escrow, title insurance, and transfer tax. The buyers thought we were splitting the closing costs. They thought that is was ALL of the closing costs.
Quite a big misunderstanding if I do say so myself.
As a buyer, you have the right to ask a seller to pay for some of the closing costs, but it has to be specifically asked for. A dollar figure needs to be provided to the seller so they know what their bottom line is. This is only fair.
Ideally, you have met with a lender and received a "Good Faith Estimate". This is a document that out lines the closing cost and all of the fees for any given loan amount. By law it has to be provided to a borrower prior to closing, but the lenders that I use provide them up front. This way you will know what you can ask for.
The bottom line is that if you pay them now or have the seller pay them, they will be paid. If you have them paid upfront, it's done. If they are paid for by the seller, they are financed over 30 years. This is because the seller would have taken less for an offer that didn't include closing costs. So keep that in mind: there are no freeies in real estate: you always pay.
Negotiations can be tricky, but keep a realistic outlook and try not to be attached to the outcome. Happy Home shopping!
Friday, September 4, 2009
Humboldt County Real Estate Sales - Behind the numbers and where we are headed...
Unlike many areas of California, Humboldt County has not seen a significant drop in median home prices. What we have seen is a drop in sales. Just compare the Summer of 2008 (pre financial meltdown) to the Summer of 2009 and you'll see that the sales have picked up seasonally, but remain below the sales from last year.
However, take a look at the sales from August 2008 (114) and compare them to August 2009 (113) : nearly identical. All this with less inventory in 2009 (1588 to 1460).
Why is the market gaining steam? I believe that it is the pressure that first time buyers are feeling to close by November 30th, 2009. If they miss out on this date, they miss out on $8000 in tax credits.
This is a real motivator for many first time buyers and I believe that it has led to the pick up in sales activity. I feel that we will see that homes priced under 200,000 in Humboldt County are going to become more of a hot commodity. So if you are looking in that range here are a few homes to look at:
0-150K - http://link.flexmls.com/j6etcf8w2ls,3
150-250 - http://link.flexmls.com/j6etcggy119,3
Here's a bit higher range too...
250-350 - http://link.flexmls.com/j6etcgseuem,3
350-500 - http://link.flexmls.com/j6etch5hxg8,3
Where is the Humboldt County Market Headed?
If I could predict the future, I probably wouldn't be selling real estate, but if I had to guess, I'd say that the November 30th deadline to close a transaction will be extended, giving first time buyers a reprive. This won't be done until the 11th hour, why? Because buyers would procrastinate on the purchase of a house.
I believe that first time buyers should be looking to purchase now. This is because I feel that the market has hit bottom and although the prices won't shoot through the roof again, they will be headed up, and so will interest rates. The take home is this: don't kick yourself down the road, buy at the right time and you'll pat yourself on the back for years to come.
Andy Parker, Broker Associate
Azalea Realty
http://www.azalearealty.com/
Friday, March 6, 2009
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