What’s the BUZZ?
Everyone
I talk to is curious… what’s happening
in the real estate market? From our perspective locally, the market is
great! All indicators point to a slow but steady recovery. Keep in
mind,
whether you get your information from the internet, watch the news or
read the newspapers you’ll notice
that real estate is localized. There’s
no doubt about it – there has definitely been a
negative
local market adjustment
in price
of anywhere from a 10 to 25%. Recent statistics show
a 10.5%
year over year
decrease in
New Listings while pending sales are up
26.4%. The
Active Listings for Sale have decreased by 27%. We’re beginning to see a significant
decrease in the number of homes on the market
for sale,
which is
changing the balance of supply and demand. With that comes a slight
decrease in the amount of time
that it takes to sell a
home.
Days on Market.
What does this mean to buyers and
sellers? The market is moving toward becoming more equalized. The
“Buyer’s Market” we’ve been experiencing is beginning to loose steam.
Can you still find a bargain? Certainly. Are you going to purchase the
home of your dreams for tens of thousands of dollars under value?
Probably not.
Now is STILL the
perfect time to buy.
There are a few key factors to
remember. The
most critical one is the current interest rate. I had a client
who settled
last month,
paid some points and
got an adjusted
APR of 3.94%! Yes that was 3.94!
Having been in the business for awhile, I remember mortgage interest
rates at 12, 15 and even 18%. It is forecasted that by April 2010,
we’ll see the average conventional rate increase from 5.19% to 5.84%.
That could increase your payment on a $400,000 loan (30 years) by
$163.24 OR loose you $27,865 in buying power.
An
interest rate this
low is the major contributing factor to the current
Housing Affordability Index of 134.
Translated, this means that the median household income was 134% of the
necessary income to qualify for the median priced home under prevailing
interest rates. If you are employed, have some savings and reasonably
good credit, you can afford to purchase a home. To sweeten the pie,
it’s not too late for first time homebuyers to cash in on the
$8,000 Tax Incentive now being offered
by the Federal
Government.
The current program is scheduled to expire on November 30, 2009. We
hare hearing rumors of an extension – but obviously this program won’t
last forever. We anticipate that any extension wouldn’t be more than a
few months.
If you, or anyone
you know has been considering a move, I’d
would
sincerely appreciate your keeping me in mind. It would be my pleasure
to help!
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Know
Anyone Having Trouble with Their Mortgage Payment?
Some
areas in Maryland were hit very hard and a lot of families are suffering
the effects of questionable mortgage products. In July the FHFA
(Federal Housing Finance Agency) announced a HARP program designed to
help some of those borrowers who are finding themselves with adjustable
rate mortgages now greater than their home value. If you’d like to know
more, visit
http://www.makinghomeaffordable.gov/
or call me, I’d be happy to help.
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Friends and Family NEW ADDITION…
I’m
excited to announce the addition
of
ADT
Home Security
to the Champion Realty Tina Cadden Jenkins Friends & Family Program.
ADT,
along with offering discounts to Program members will make a
contribution to
The Rotary Foundation
to enable Rotarians to advance improvement of health, the support of
education, and the alleviation of poverty and to eradicate Polio
throughout the world!
And
as always, don’t forget discounts at
SmartBox,
Sears
and
Lowes!
In order to take advantage of the
Sears
discounts call Tony Virando at 410–590–2330 and say that you are a
member of my Friends & Family Program. Then you will be eligible
for a 15% discount on all regular priced merchandise and an additional
5% off the price of merchandise on sale. Discounts are not limited to
the Kenmore Brand. To obtain the Lowe’s discount coupon – give me a call
or send me and e-mail and I’d be happy to get one to you ASAP!
THIS MONTH’S SPECIAL
Browns Toyota
of
Glen Burnie
offers a great discount in their Service Department Just give me a call
for contact information or click here for a coupon to pass on to the
service department.
This no obligation, easy to use program will result in real
savings. Champion Realty, Inc. does not financially profit from this
relationship in any way. The only benefit to Champion Realty, Inc. is
the pleasure we get from passing on the benefit of the savings to you.
I hope you are able to
take advantage of the program on your next major purchase.
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Lender’s Corner
$8,000 Tax Credit
More
than 1.4 million Americans have already claimed the new tax credit for
first-time home buyers, according to a report from the Internal Revenue
Service. The credit has been an important stimulus tool for two
reasons. It's fully refundable, meaning that even if buyers owe no taxes
whatsoever, they'll get an $8,000 check from the IRS. And this refund
will put money in consumers' pockets for good, as opposed to the $7,500
first-time homebuyer tax credit that could be applied to sales made
between April 2008 and July 1 2009. There has been some legislation to
extend this credit, but unfortunately, nothing has been passed. It is
getting down to wire and is becoming a question of gambling. Do you
want to wait to see if there is an extension or do you want a
guarantee? Now is the time to take advantage of an $8000, “cash in your
pocket”, credit.
Michael Savani
1st
Mariner Mortgage
410-777-1050
MSavani@1stMarinerBank.com
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Happy Halloween
If
you would like a seasonal pumpkin compliments of my team and I, please
give us a call or send an email. We’d be happy to deliver it to you
ASAP! Please let us know if your size reference and we’ll get right on
it… Limit one per family please…
