Sep
30
Will the tax credit deadline for first time home buyers get extended?
Posted by garreth under Uncategorized
The clock is still ticking on the first time homebuyer tax credit. The next two weeks will continue to see frantic activity from purchasers trying to get their $8,000, as the practical deadline for closing on a home by the end of November approaches.
As discussed in a previous blog, there are several bills which propose expansion of the deadline and program, and none of these are doing anything.
One Realtor, who happens to be a senator, is proposing another bill – to expand the credit to $10,000 for all home buyers (reduced from a proposed and defeated $15,000).
Do buyers feel this bill will get passed? Apparently not. Take a few areas of East Austin home sales:
University Hills is a classic neighborhood for first time buyers – larger homes, larger lots and close to Mueller and 15 minutes from Downtown. Inventory has dropped from 6 months last year to just over a month right now. There are 13 homes under contract and 20 available – a strong sellers market. I’m expecting to get multiple offers on a University Hills home coming up for sale there at the end of the week.
The last two homes I’ve sold in East Austin’s up and coming 78702 have also seen multiple offers from first time homebuyers. This is one of the only areas within a few miles of downtown Austin where buyers can get a single family home under $200,000.
So right now, buyers seem to believe the tax credit is going away soon, and that the $8,000 bird in the hand is worth two $10,000 birds in the bush.
Garreth Wilcock is an Austin Realtor ®. You can search Austin homes for sale at his website.
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Sep
20
Austin Mortgage Rates
Posted by garreth under Uncategorized
Austin mortgage planner John Schutze gives his weekley market update:
œMortgage rates are mostly unchanged from last week…but watch out!
Mortgage rates have been under a little pressure to move higher as the stock market rallied this week. Also new home starts for August were 598,000 which was slightly higher than expected. Good economic news tends to push rates higher.
Furthermore, the Consumer Price Index and the Producer Price Index were released this week and showed a slight increase in prices (or a small increase in inflation). Inflation is bad for rates. So far, the above mentioned news hasn’t moved rates significantly, but we need to keep a close watch!
Weekend Rates
The current rates on some of our programs are:
30 Year Fixed:4.875 %
15 Year Fixed:4.357 %
FHA 30 Year:5.0 %
VA 30 Year: 5.0 %
5 Yr ARM: 3.875 %
Jumbo 30 Year Fixed:5.875 %
Jumbo 5 Yr ARM:5.125 %
30 Year Home Equity:5.0 %
The above rates are based on a $120,000 Loan Amount with a 1% Origination Fee and 720 credit score (660 score for FHA and VA loans). Some programs require slight adjustments for smaller loan amount
John finds buyers the right loan for their Austin home purchase. Check out his Austin mortgage blog.
Garreth Wilcock is a Realtor ® in Central Austin. You can search Austin homes for sale at his website.
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Sep
20
Can I Buy a Foreclosed Home With an FHA Loan?
Posted by garreth under Uncategorized
As first time buyers are out shopping for discount homes in Austin, one question I get asked is can they use their government loan to buy a foreclosed home?
In simple terms, and FHA loan is a mortgage insured by the Federal Housing Administration. They differ from conventional loans as they require lower down payments (currently 3.5%) and the appraisal process is stricter than with a conventional loan. For example, the FHA will not insure a loan in Texas if the HVAC isn’t operational, there are broken windows or there are missing electrical fittings.
So can you buy a foreclosed home with an FHA loan? Often the answer is yes! If the home is a HUD home at least you’ll know before you put in an offer. HUD want to create home ownership opportunities, and so they send out an FHA appraiser before they put their homes on the market.
If you look at the Austin HUD Home site, you can see whether a home is marked “insured” or not. If it is – you can use a regular FHA loan to buy it.
For non-HUD homes – conventional foreclosures – the situation is not as clear for a consumer. If the home is in good condition, then you may be able to use an FHA mortgage. For conventional foreclosed homes, you need to get advice from a professional to see if the home may be elligible for the type of financing you have.
Garreth Wilcock is a HUD approved Realtor ® in Austin. Get in touch to find out if a foreclosed home is right for you – 512 215 4785.
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Sep
11
Austin Mortgage Rates
Posted by garreth under Uncategorized
Austin mortgage planner John Schutze gives his weekley market update:
œMortgage rates remain low and unchanged from last week!
Mortgage rates were helped by increased demand from foreign investors for US 30 Yr Treasury Bonds (and mortgage bonds). Investors monitor foreign investment is US-based securities and when more foreign money is flowing to the US it’s perceived as a good sign indicating confidence in our US financial system.
Also, the Fed is also continuing to purchase mortgage bonds to the tune of $43 billion over the last 2 weeks. These 2 factors are critical in keeping rates low in the short term.
Weekend Rates
The current rates on some of our programs are:
30 Year Fixed:4.875 %
15 Year Fixed:4.357 %
FHA 30 Year:4.875 %
VA 30 Year: 5.0 %
5 Yr ARM: 3.875 %
Jumbo 30 Year Fixed:5.75 %
Jumbo 5 Yr ARM:4.5 %
30 Year Home Equity:5.0 %
The above rates are based on a $120,000 Loan Amount with a 1% Origination Fee and 720 credit score (660 score for FHA and VA loans). Some programs require slight adjustments for smaller loan amount”
John finds the best loan to suit the needs of buyers in Austin, TX. Check out his Austin mortgage blog.
Garreth Wilcock is a Realtor ® in Central Austin. You can search Austin homes for sale at his website.
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Sep
10
Mueller – Affordable Homes Available Now!
Posted by garreth under Uncategorized
Affordable homes at Mueller Austin? Available in time for the $8,000 tax credit? Yes!
There are two Longhorn plans currently available for income qualified buyers. To write a contract you need to be pre-approved with the program and the preferrred lender. You can live opposite the beautiful Lake Park close to UT and downtown for under $165,000.
Let me know if you’ve missed out on the affordable program before or want to get into the Mueller shared equity scheme.
Garreth Wilcock is a Mueller Resident and Realtor ® and represents buyers of homes at Mueller. Call 512 215 4785 to talk about your new home.
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Sep
8
Austin First Time Buyers: Can They Still Get The Tax Credit?
Posted by garreth under Uncategorized
How long will the tax credit last, and what will happen when the deadline is reached?
Sixty-nine per cent of the Austin housing market in Q2 2009 was homes under $300,000 – homes which broadly fit into the first time home buyer market. This is a pretty significant market which could be about to change as the tax credit goes away.
What is the Tax Credit in a nutshell? There is an income qualified tax credit from the IRS of up to $8000 available for first time home buyers closing on a home before 12/1/2009.
It was a move intended to spur the US housing market, and when it seemed that it wasn’t getting enough traction, the FHA changed its rules to allow buyers to use this future tax credit as a downpayment to purchase their first home.
Will the $8000 tax credit deadline extend? There are several proposed legislation changes which aim to expand the tax credit – into 2010 / 2011 and to remove income qualifications, first time homebuyer requirements and more:
- H.R.2801 – Home Ownership Moves the Economy (HOME) Act of 2009
- H.R.2606 – Home Buying Credit Expansion Act
- H.R.2905 – Homebuyer Tax Credit Expansion Act of 2009
Nothing appears to be happening with any of these as far as I can tell. If the government is trying to bring people into the house buying market with an “offer ends soon!” message, then it might not help them to also have other messages saying “but the offer might extend!”.
When should I start looking for a home to get the credit? The best time to plant a tree is 20 years ago, the second best time is today. What do I mean by that? A typical duration between having an accepted offer and closing on a home in Austin is 30-45 days.
So if you want to close on or before 11/30/2009, you’d want an offer accepted by 10/16/2009. To give yourself more room to negotiate, you don’t want to be under the gun. If a seller knows that you have a strict deadline to meet to gain $8,000, they may use this to their advantage in negotiations.
Not all contracts are successful. It takes most first time buyers several weeks or more to get their financing in place and to find a home. If you think that the government’s “offer ends soon!” and you don’t want to be held over a barrel in negotiating the best deal, then it really pays to start looking today rather than next week.
When should I sell my home to take advantage of the tax credit? If your home is a good target for a first time buyer, then you may consider preparing and marketing it soon, so that you can get a contract by the middle of October.
What will happen to the Austin market after November? It’s hard to predict what is going to happen to the first time buyer market when the tax credit goes away. It might be that demand reduces and housing inventory goes up. The first time buyers’ market in Austin has seen less of a drop than the higher end since the tax credit announcement.
In summary, the tax credit may well be going away, so buyers and sellers who want to take advantage of it are acting now. Check out Brian Martin’s Northwest Austin homes blog for his take on the right steps to take to get the tax credit.
Garreth Wilcock helps first time homebuyers in Austin Texas. You can be notified when homes in Austin become available for sale at his website.
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Sep
8
Austin Housing Market – Winners and Losers
Posted by garreth under Uncategorized
There have been fewer home sales within Austin in the last few years – I don’t think that’s a surprise to anyone. And the under $300,000 price range is seeing the most activity now.
When you see statistics pulled from the Austin MLS, you often see all of the Greater Austin Metropolitan Area included – Round Rock, Pflugerville, Georgetown, Kyle and Buda are in there. I don’t look at these areas further out of town.
I took a look at single family home sales just in the City of Austin – all condos, half duplexes, and houses. I looked at sales closing in April, May and June when the Austin market typically sees some of its higher activity. I’m going to use the $300,000 list price as a cut-off for first time homebuyers – the median price for currently listed homes in Austin right now is $314,900.
The chart above shows that the under $300,000 market shrank more during Q2 in 2008 than the rest of the market. The under $300,000 market is doing much better in Q2 2009. So perhaps the stimulus package is working for first time home buyers.
At a recent real estate conference, Gary Keller described the stimulus package as a way of borrowing buyers from the future. When the tax credit ends in December, it will be interesting to see if the under $300,000 market loses ground.
Garreth Wilcock is an Austin EcoBroker ® who helps people find homes in Austin, and can give you a FREE market analysis of your Austin home.
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Sep
5
Austin Mortgage Rates
Posted by garreth under Uncategorized
Austin mortgage lender John Schutze gives a market update before the Labor Day weekend:
œMortgage rates are down .125% this week!
Helping to keep rates low, the unemployment report for August was released today at 9.7%. This is double what it was two years ago and is the highest level in 26 years. Certainly not good for the economy but this type of news will help keep rates down in the short term.
Weekend Rates
The current rates on some of our programs are:
30 Year Fixed:4.875%
15 Year Fixed:4.25%
FHA 30 Year:4.875%
VA 30 Year:5.0%
5 Yr ARM:3.875%
Jumbo 30 Year Fixed:5.375%
Jumbo 5 Yr ARM:5.0%
*The above rates are based on a $120,000 Loan Amount with a 1% Origination Fee and 720 credit score (660 score for FHA and VA loans). Some programs require slight adjustments for smaller loan amounts.John finds loans for Austin area home buyers and writes a blog about Austin mortgages. Ask him how first time buyers can borrow their downpayment before the end of November 2009.
Garreth Wilcock is a Realtor ® in Central Austin. You can search Austin homes for sale at his website.
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Sep
1
How Are Energy Audits Affecting Home Sales in University Hills Austin?
Posted by garreth under Uncategorized
Since June 1st, most homes sold in University Hills have been subject to mandatory energy audits. What does this mean for buyers and sellers in the area?
If a home served by Austin Energy is over 10 years old and has not received $500 in energy efficiency rebates in the last 10 years, it is likely to require an audit. The majority of homes in University Hills were built in the 1960s and 1970s, and often were built in a split level or ranch style – the average size of homes sold in the last three years is 1640sqft.
For buyers this means a perception of older, larger home which may be less energy efficient than a smaller, newer home. 69% of homes sold in the last three years in University Hills have less than two energy efficient features recorded in the MLS. So double pane windows and ceiling fans aren’t the norm.
Buyers looking at a 40 year old home aren’t expecting them to be built to modern building codes with R38 attic insulation. Only extreme energy efficiency problems are being negotiated between buyers and sellers right now.
How do the Energy Audits affect buyers in the area? The results aren’t surprising – I’ve seen HVAC duct leakages between 8% and 80% in the last two months. As it says on the audit form itself:
In homes the average Duct Leakage is 27%. Acceptable leakage should not exceed 10%.
So an 80% duct leakage is something so catastrophically out of the norm that it could be negotiated. And the rule for sellers is that the sooner you can find, fix and disclose, the better you do in negotiations.
One way some sellers are avoiding the audit is to simply apply for energy efficiency upgrade rebates as part of their home sale preparations. Then they can market a more energy efficient home, avoid negotiations based on an energy audit and have a smoother sale.
If you’re considering selling your home in the next few years, check if your home requires an Energy Audit before sale, and consider some of the available Energy Star rebates.
Garreth Wilcock is an Austin EcoBroker specializing in East Austin Real Estate.
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Sep
1
What is a Pocket Listing?
Posted by garreth under Uncategorized
Not all Austin homes for sale are listed in the Multiple Listing Service (MLS). Some homes are available via other means. What is a pocket listing and how can it help you as a seller?
Most sellers want the homes they are selling to appear as a listing in the MLS. Potential buyers and their Realtors ® search the MLS for homes, and the seller’s home pops up.
Sometimes a seller doesn’t want their home to appear in the MLS.
It could be for privacy reasons – they don’t want people to know they’re selling their home – or it might be that their home is being prepared for sale (it’s being staged and cleaned).
A third reason is that the seller doesn’t want Realtors to find out how much their home sold for after it has closed.
Sometimes a seller will ask their Realtor to market the home as a “pocket listing” – to keep it out of the MLS permanently, or until certain conditions have been met.
What can a seller get from a pocket listing? “Days on market” is the ticking MLS clock that shows the time between the date the home is listed and the date an offer is accepted. The sooner a home sells, the more it sells for (on average, if you look at market statistics). So it’s in a seller’s best interest to keep days on market as small as possible before they let the largest number of buyers see their home.
A pocket listing buys you some time to finish your home staging and decorating before opening up your doors. A “coming soon” sign piques the interest of buyers, and can prevent them putting an offer in on a rival home until they’ve seen all that’s available – including the pocket listings.
A pocket listing gives the listing agent chance to build up anticipation – to create a line of eager buyers waiting to see the home as soon as it becomes available. More buyer competition can result in a higher sales price.
Garreth Wilcock is an Austin EcoBroker. You can search Austin homes for sale at his website.
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