In the last decade, a lot has changed in the real estate industry from how buyers go through the process to how prices have changed while some things haven’t changed like the median age of buyers, according to the National Association of Realtors. The following are new stats about the buying experience... if you are considering selling your home, keep these things in mind:
1999: 37% of buyers searched for a home online. 2009: 90% of buyers searched for a home online.
1999: median home value is $137,600. 2009: median home value is $172,600 (but not that some reports reflect that when accounting for inflation, the value hasn’t changed at all this decade).
1999: 82% of buyers purchased detached, single family homes. 2009: 78% of buyers purchased detached, single family homes.
1999: 46% of buyers choose suburban neighborhoods. 2009: 54% of buyers choose suburban neighborhoods.
1999: 68% of buyers were married couples. 2009: 60% of buyers are married couples.
1999 and 2009: the median age for buyers was 39.
1999 and 2009: “neighborhood quality, affordability, and convenience to work and school have consistently been top priorities.”
Overall the only major shift has been in the rise of online search which was predictable, but I’m personally a bit surprised at the drop in number of married couples. Which stats most strike you?
Saturday, January 9
Short Sales getting easier?
Good Monday morning and WOW is it cold outside. New guidelines came out the end of last week from the US Treasury Department to make selling a home via the short sale approach easier. This could mean better buys for us all and easier sales if you happen to be in an unfortunate position.
To qualify under these new guidelines:
The property must be the home owner’s principal residence.
The home owner must be delinquent on the mortgage or close to defaulting (this is better than delinquent because usually once you are behind you only have 90 days...).
The loan must have been made before Jan. 1, 2009, and be for less than $729,750.
The borrowers’ total monthly mortgage payment must exceed 31 percent of their before-tax income.
Under the plan, borrowers will receive $1,500 from the government for selling homes for less than the amount of their mortgages. Mortgage-servicing companies will get $1,000 for each completed short sale. Second-mortgage holders can receive up to $3,000 of the sales proceeds in exchange for releasing their liens. Investors who hold the first mortgage can collect up to $1,000 from the government for allowing the payments. Borrowers who complete a short sale under the program must be "fully released" from future liability for the debt, according to the guidelines.
Source: Associated Press, J.W. Elphinstone (11/01/2009) and The Wall Street Journal, Ruth Simon (11/01/2009)
To qualify under these new guidelines:
The property must be the home owner’s principal residence.
The home owner must be delinquent on the mortgage or close to defaulting (this is better than delinquent because usually once you are behind you only have 90 days...).
The loan must have been made before Jan. 1, 2009, and be for less than $729,750.
The borrowers’ total monthly mortgage payment must exceed 31 percent of their before-tax income.
Under the plan, borrowers will receive $1,500 from the government for selling homes for less than the amount of their mortgages. Mortgage-servicing companies will get $1,000 for each completed short sale. Second-mortgage holders can receive up to $3,000 of the sales proceeds in exchange for releasing their liens. Investors who hold the first mortgage can collect up to $1,000 from the government for allowing the payments. Borrowers who complete a short sale under the program must be "fully released" from future liability for the debt, according to the guidelines.
Source: Associated Press, J.W. Elphinstone (11/01/2009) and The Wall Street Journal, Ruth Simon (11/01/2009)
Easier Home Energy Tax Credits...
I hope everyone enjoyed their Thanksgiving and visiting with family and friends... now it's time to prepare for the holidays.
If you need a motivator to do some home winterizing projects, the IRS recently sweetened the deal. The American Recovery and Reinvestment Act (Recovery Act), enacted earlier this year, expanded two home energy tax credits: the non-business energy property credit and the residential energy efficient property credit. That means you can perform energy-saving home improvements and reduce your 2009 tax hit.
The credit equals 30 percent of what you spend on eligible energy-saving improvements, up to a maximum tax credit of $1,500 for the combined 2009 and 2010 tax years. The IRS says that by spending as little as $5,000 before the end of this year on eligible upgrades, taxpayers can save as much as $1,500 on their federal tax return.
What's included? The cost of certain high-efficiency heating and air conditioning systems, water heaters and stoves that burn biomass all qualify, along with labor costs for installing these items. The cost of energy-efficient windows and skylights, energy-efficient doors, qualifying insulation and certain roofs also qualify for the credit, though the cost of installing these items does not count. Before making any investments, be sure to check with your accountant or the IRS to be certain that your upgrades qualify for the credit.
Some other low-cost home winterizing tips:
Use a programmable thermostat. When installed and used correctly, you may be able to save $180 each year.
Get a tune-up for your furnace and change your furnace filter monthly. Clean filters create better air flow, while dirty filters can hike energy usage.
Reduce drafts by sealing air leaks and add insulation to keep precious heat from escaping. The EPA estimates that homeowners can typically save up to 20 percent of heating and cooling costs (or up to 10 percent of total energy costs) by air sealing their homes and adding insulation in attics, floors over crawl spaces, and accessible basement rim joists.
Get a window insulation kit from the hardware store to keep drafts at bay.
If you need a motivator to do some home winterizing projects, the IRS recently sweetened the deal. The American Recovery and Reinvestment Act (Recovery Act), enacted earlier this year, expanded two home energy tax credits: the non-business energy property credit and the residential energy efficient property credit. That means you can perform energy-saving home improvements and reduce your 2009 tax hit.
The credit equals 30 percent of what you spend on eligible energy-saving improvements, up to a maximum tax credit of $1,500 for the combined 2009 and 2010 tax years. The IRS says that by spending as little as $5,000 before the end of this year on eligible upgrades, taxpayers can save as much as $1,500 on their federal tax return.
What's included? The cost of certain high-efficiency heating and air conditioning systems, water heaters and stoves that burn biomass all qualify, along with labor costs for installing these items. The cost of energy-efficient windows and skylights, energy-efficient doors, qualifying insulation and certain roofs also qualify for the credit, though the cost of installing these items does not count. Before making any investments, be sure to check with your accountant or the IRS to be certain that your upgrades qualify for the credit.
Some other low-cost home winterizing tips:
Use a programmable thermostat. When installed and used correctly, you may be able to save $180 each year.
Get a tune-up for your furnace and change your furnace filter monthly. Clean filters create better air flow, while dirty filters can hike energy usage.
Reduce drafts by sealing air leaks and add insulation to keep precious heat from escaping. The EPA estimates that homeowners can typically save up to 20 percent of heating and cooling costs (or up to 10 percent of total energy costs) by air sealing their homes and adding insulation in attics, floors over crawl spaces, and accessible basement rim joists.
Get a window insulation kit from the hardware store to keep drafts at bay.
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