Feb
28
2009
Here are some links to various resources concerning the Stimulus Plan, the American Recovery and Reinvestment Act of 2009, the Homeowner Affordability and Stability Plan.
If you want to recommend any other useful resources to add to this post - just post your comment and link!
NAR’s resource page - Unlock America’s Economy (Links to articles, NAR President’s Podast series, and other good information to keep you informed and updated)
Recovery.gov Stay informed about how and where the money is being distributed from the recently passes American Recovery and Reinvestment Act. Visit the site for timelines, graphics, charts and updates The President has promised Accountability and Transparency…
FinancialStability.gov Quick links to press releases, webcasts, fact sheets
Emergency Economic Stability Act - US Treasury site
HUD.gov - HUD site packed with info and resources
The White House website and blogs:
Feb
28
2009
Are you up to date with the latest modifcations to the First Time Home Buyer Tax Credit of $8,000? Here are some resources to help explain the specifics. Make sure to download the documents from NAR to use with your clients…. Excellent Newsletter material!
In a nutshell:
- Changes the 2008 $7500, repayable credit to $8000 and no repayment (tax credit - “refundable”)
- Good for purchases of principal residence on or after January 1 to December 1, 2009
- Only first-time home buyers are eligible (defined as anyone who has not had any home ownership in 3 years prior to day of 2009 purchase)
- Income restriction - individuals earning up to $75,000 and married couples who file joint return no more than $150,000
- There is a reduced credit which totally phases out for individuals at $95,000 annual income and $170,000 (joint return)
Attorney Darren Welsh has an informative post on his legal blog regarding the first time home buyers credit of $8,000 which was modified as part of the recently passed legislation “American Recovery and Reinvestment Act of 2009″. Las Vegas accountant, Diane Clough explains the tax credit… read more….. TGIF Legal Tip: First Time Buyer $8,000 Tax Credit
Here’s more on the home buyer tax credit from NAR:
Homebuyer Tax Credit – The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser’s income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
Download HomeBuyers_Tax_Credit - NAR Presentation
Download HomeBuyer_tax_cred_qa - FAQ from NAR
Feb
24
2009
Kathryn Bovard wrote an excellent post yesterday on her Zen Real Estate blog, reporting on NAR’s chief economist Dr. Lawrence Yun’s prediction that Las Vegas would lead the country out of the housing crisis.
Dr. Yun cited to key reasons…
1.The Las Vegas home prices are under market and
2. The Stimulus Plan
Read Kathryn’s full post for more..
Today Chief Economist Predicts Las Vegas Real Estate Market to Lead the Nation Out of Housing Crisis
Kathryn is the Broker-Manager for our West Sahara Office. Contact Kathryn at 362-1111 or kathrynb@americanagrp.com
Feb
22
2009
President Obama unveiled his $75 Billion plan to stem the foreclosure crisis in the country. The “Homeowner Affordability and Stability” plan proposes to help between 7-9 million families restructure & refinance their mortgages to avoid foreclosure.
Highlights of President Obama’s plan to reduce mortgage foreclosures:
- Allow an estimated 4 million to 5 million currently ineligible homeowners who get their mortgages through Fannie Mae or Freddie Mac to refinance at lower rates.
- Create incentives for lenders to work with borrowers to modify the terms of subprime loans at risk of default and foreclosure.
- Take “major steps” to keep mortgage rates low for millions of middle-class families seeking new mortgages.
- Pursue reforms designed to help families avoid foreclosure, including allowing bankruptcy judges to reduce mortgages on primary residences to their fair market value.
Who benefits from the plan?
- Homeowners on the verge of becoming delinquent or those who have missed a few payments are the prime candidates for assistance.
- The plan calls for lenders to reduce monthly interest payments to 38 percent of the mortgage holder’s income. Then, the government would step in with funding to help reduce payments to 31 percent of the individual’s income.
- Another key part of the administration’s plan enables lenders, with the assistance of the Treasury Department, to reduce monthly payments by lowering the principal due on the mortgage.
Links to articles and blog posts about the President’s Housing Plan:
New York Times - Graphic explaining the key points is excerpted below…
Removing a limit on refinancing for “responsible homeowners”
4 million to 5 million households.
The bill will remove the current restriction on Fannie Mae and Freddie Mac that prohibits them from guaranteeing refinancing on mortgages valued at more than 80% of the home’s value. This will allow many more homeowners to refinance at lower rates.
Who may qualify
- Today A family’s home value drops to $400,000 from $475,000. The loan balance at $337,460 is now more than 80 percent of the home’s value, making it difficult to refinance under current rules.
- Under the proposal The family can refinance to a rate of 5.16% from 6.50%, which would save $331 a month and $3,968 a year.
Who doesn’t qualify
- Those holding loans not owned or guaranteed by Fannie Mae or Freddie Mac.
- Mortgages above a certain threshold — $417,000 for single-family homes in most areas and $729,000 in higher-priced regions.
- Those whose outstanding mortgage debt exceeds 105% of their current home value.
Although this is a step in the right direction, it does not begin to help so many homeowners in the Las Vegas Real Estate Market who have continued to be responsible and do the right thing by continuing to pay their mortgage….in spite of the fact that housing prices and equity have declined so drastically. In fact, finding a local homeowner who only has an outstanding mortgage debt that is less than 105 % of their current home value would be an exception to the rule.
Helping renegotiate loan terms for “at-risk homeowners”
3 million to 4 million households.
The bill creates incentives for lenders to modify the terms of subprime and other loans. Participating lenders will reduce payments to no more than 38% of borrower’s income, with the government matching further reductions down to 31%.
Who may qualify
- Today A family’s home value has fallen to $189,000 from $230,000 and its loan balance is $214,016. Job loss has reduced household income and loan payments can’t be made.
- Under the proposal The family could modify the mortgage for five years, so that payments are manageable. This would save $406 a month or $4,870 a year.
Who doesn’t qualify
- Mortgages above a certain threshold — $417,000 for single-family homes in most areas and $729,000 in higher-priced regions.
- Homes that are not owner-occupied.
- Those who apply more than three years after program’s start.
From The White House blog:
Questions and Answers for Borrowers about the Homeowner Affordability and Stability Plan
Homeowner Affordability and Stability Plan Executive Summary (PDF)
Download HousingExampleSheet (PDF)
Jun
06
2008
With a national average sales price of $368,019 in 2007, the Prudential Real Estate Network (PREA) continues its streak of having the highest national average sales price for residential property among major competitors. This price is based on an analysis of transaction sides and sales volume data of the largest independently-owned brokers in the U.S. as reported in the 2007 Real Trends 500.
Jun
06
2008
Prudential Real Estate Affiliates (PREA), our franchise network with about 2,100 offices and 64,000 sales professionals, announced a distribution agreement to feed about 140,000 property listings to real estate sites Zillow.com and Propsmart.com. Earlier this year Prudential announced an alliance with Trulia.com and HGTV-powered FrontDoor.com.
Laurie Keenan, president of Prudential Real Estate stated: “The sites are easy to use, they offer great information and they save consumers time. Most important, the sites offer consumers a rich search experience and, now, our listings will be a part of that experience.”
Read the press release for additional information.
May
16
2008
This editorial opinion by Cyril Moulle-Berteaux, “The Housing Crisis is Over” appeared in the Wall Street Journal on May 6, 2008 and has been getting a lot of attention in the blogosphere.
The author quotes historical real estate cycles and claims the national housing market is approaching the bottom now based on a variety of facts and economic trends:
- Home sales peaked in July 2005
- New Home sales are down 63% from peak levels
- Housing starts have fallen more than 50%
- Affordability - prices have declined while, generally, incomes have grown
Brett Arends asserts in his article “Is Housing Slump at a Bottom” that we may be at the bottom of the housing market because housing starts dropped below the One Million mark in March. “Every time that has happened in the last 50 years, it proved to be the bottom of a recession.”
Indications in Las Vegas are that prices may continue to fall further, yet NOW is definitely a great time to buy - here’s why:
- Over 60% of sales are REO or Short Sales - there are tremendous bargains out there right now!
- From 4/1/08 to 4/30/08, Las Vegas had 1927 closed resale single family, condos & townhome: Download the Full Report for April 2008 REO stats
- REO - 1224 (63.5%)
- Short Sales - 144 (7.5%)
- Traditional resales were 19% of the market for the month
- Total number of contracts written is increasing dramatically. GLVAR statistics show that 770 listings went into Pending or Contingent status in a one week period between April 21-28. Notice the dramatic trend upward on written contracts since January 2008: GLVAR Under Contract Graph
- Banks are pricing their REO listings to sell - sometimes below the market - thus generating activity and multiple offers.
- Motivated sellers are finally shifting their list prices into the “Showing Zone”. For more on this trend, check out Forrest Barbee’s Las Vegas Real Estate Market 2008 post.
- Interest rates remain at historically low rates. Even with the tightening of the mortgage market, there are a variety of loan programs to choose from. FHA loans are now a realistic option in Las Vegas due to the new loan limit of $400,000.
- Market Condition Report for April 2008 from Equity Title:
- The report indicates a shift and positive change in closing numbers which, if the pattern continues, will surpass 2007 numbers in about 60 days.
- Percent Selling and Absorption Rate demonstrated substantial increases after a series of declines and pendings indicate that trend may continue.
The bottom line … the market continues to adjust and there are great opportunities in the market now… what are you doing to adjust and take advantage of this market?
Mar
25
2008
The Prudential Real Estate Affiliates (PREA) held their annual sales convention in New Orleans, March 16-18, 2008. At the end of 2007, PREA was made up of :
- 677 Franchises (Brokerages)
- 2100 Real Estate Offices
- 64,000 Sales Associates
Prudential Americana Group, REALTORS received the following honors:
- The company ranked 11th overall in the entire network
- Our Sahara Branch received the Pinnacle Award for 9th place in closed gross commission income.
- The Shapiro/Sher Group was honored as the number 1 TEAM in the country for the Prudential network.
- Joe Iuliucci of our Southwest Office ranked 10th in the country for total closed units.
Mar
18
2008
The following list is a great review and reminder of the basic principles of the REALTOR Code of Ethics.
To review or download the 2008 version of the Code of Ethics:
- Protect and promote your client’s interests, but be honest with all parties.
- Avoid exaggeration, misrepresentation, and concealment of pertinent facts. Do not reveal facts that are confidential under the scope of your agency relationship.
- Cooperate with other real estate professionals to advance your client’s best interests.
- When buying or selling, make your position in the transaction or interest known.
- Disclose present or contemplated interest in any property to all parties.
- Avoid side deals without your client’s informed consent.
- Accept compensation from only one party, except with full disclosure and informed consent.
- Keep the funds of clients and customers in escrow.
- Assure, whenever possible, that transactional details are in writing.
- Provide equal service to all clients and customers.
- Be knowledgeable and competent in the fields of practice in which you ordinarily engage. Obtain assistance or disclose lack of experience if necessary.
- Present a true picture in your advertising and other public representations.
- Do not engage in the unauthorized practice of law.
- Be a willing participant in Code enforcement procedures.
- Ensure that your comments about other real estate professionals are truthful, and not misleading.
- Respect the agency relationships and other exclusive relationships recognized by law that other REALTORS have with their clients.
- Arbitrate contractual and specific non-contractual disputes with other REALTORS and with your clients.
Oct
30
2007
by Mark Stark, CEO Prudential Americana Group, REALTORS
“ It is time for a change, a change that will correct a business model that has hindered the growth, quality and culture of the real estate industry for years. There are three key components when driving a successful real estate business… cash flow, residual income and asset building. To truly reach the pinnacle of success, you must tap into all three areas. We are blazing a new trail for our company and ultimately our industry. Not until NOW has any model taken such aggressive steps in supporting the real estate sales executive. Welcome to the ground floor! ”
Listen or download this audio file from Mark.
