The recently signed tax deal between Congressional Republicans and President Obama which extended the Bush-era tax cuts also included a revised extension of the energy efficient improvement credit. Certain energy efficient improvements to windows, insulation, etc. made throughout 2010 are eligible for tax credits of up to 30% of the cost with a lifetime cap of $1,500. Improvements made in 2011 may also be eligible but the cap will be reduced to $500.
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A mandate issued in 2009 by the Federal Housing Administration required that all condominium projects approved for FHA guaranteed loans and refinancing prior to 2007 submit additional documentation by December 7, 2010 in order to remain FHA eligible. This requirement aims to greatly improve the financial stability of these condo projects by guaranteeing adequate budgets and other legal documents are in place. There were more than 25,000 associations that missed the deadline set by the FHA, so the FHA has extended this deadline throughout 2011 for most associations. However, already nearly 2,200 of the oldest associations previously approved have lost their eligibility. Owners of condominiums are strongly urged to contact their homeowners association to make sure the association submits the required documentation prior to the newly looming deadlines. Sellers and buyers can check the current status of a condominium by following the following link: https://entp.hud.gov/idapp/html/condlook.cfm. Unless these associations are more proactive up to an additional 23,000 condominiums may lose their eligibility in 2011, which would potentially make it much more difficult for owners within that project to sell. The recent rise in Treasury yields has had the effect of pushing interest rates higher somewhat rapidly in the last few weeks. Freddie Mac had the average 30-year interest rate at 4.83% this week, which is up from 4.61% a week ago, and a record low of 4.17% just a month ago. While these rates are still very attractive, especially from a historical perspective, it does bear consideration that rates may continue heading up into next year. Many analysts believe that buyers in a position to purchase who have been waiting on the sidelines may spring into action with interest rates on the rise and likely to not come back down this low again. Those people looking for the bottom of the market may well be seeing it pass, although time will tell if this is the case. It certainly remains a favorable buying climate and unless significant further reduction occurs in home prices, buyers may be best off taking advantage of interest rates below 5%. A bill introduced in the House of Representatives by John Conyers (D – Michigan), Jerrold Nadler (D- New York), and Edolphus Towns (D- New York) would expand the protected classes under the Fair Housing laws to prevent discrimination based on sexual orientation, gender identity, source of income, or marital status. Another provision of the legislation would be to update the definition of familial status. Another aspect of the bill would seek to provide the U.S. Department of Justice more potential to investigate fair housing and fair lending violations. This introduced legislation comes just over a month after the National Association of REALTORS© approved a modification to its Code of Ethics that prevents discrimination based upon sexual orientation. There was some discussion at the time of whether the NAR should expand its Code of Ethics to wider protected classes than the government, but ultimately the argument which won out was that the Code of Ethics is supposed to hold REALTORS© to a higher standard. Should this recently introduced legislation become law it will help ensure more equal opportunities for all parties in real estate transactions and absolutely affirm the NAR’s adoption of its recent amendment to prevent discrimination based on sexual orientation. Freddie Mac analysts point to five features that they believe will likely characterize the 2011 housing and mortgage markets: 1. Low mortgage rates. With Fed observers expecting the central bank to keep the federal funds rate at its current target range of 0 percent to 0.25 percent for most (or all) of 2011, relatively low mortgage rates will be a feature of the 2011 mortgage market. Thirty-year fixed-rate loans are likely to remain below 5 percent throughout the year, and initial rates of 5/1 hybrid adjustable-rate mortgages will likely remain below 4 percent in 2011. 2. Prices have hit bottom. House prices are likely to begin a gradual, but sustained recovery in the second half of 2011. 3. Housing will remain affordable. With affordability high, many first-time buyers will be attracted to the housing market in the New Year, likely translating into more home sales in 2011 than in 2010. 4. Refinances will dwindle. Many eligible borrowers have already refinanced and the federal Making Home Affordable refinance program is expiring on June 30. While fixed-rate loans are likely to remain low, they will move up gradually, making it even less likely that refinances will be attractive to most home owners. 5. Delinquency rates will decline. Based on the last several business cycles, the share of loans that are 90 or more days delinquent or in foreclosure proceedings — known as the “seriously delinquent rate” — generally crests within a year of the start of the recovery in payroll employment, and this economic recovery appears to fit within that pattern. Payrolls began to rise last January, and by the spring the seriously delinquent rate had begun to fall. Source: Freddie Mac (12/09/2010) The Northwest side of Tucson remains amongst the most active areas of the city in terms of real estate business. According to October statistics released by the Tucson Association of REALTORS©, the Northwest had the most sold units of any area at 185 compared with the next closest of 94 for the Extended Northwest. Along with these sales comes the most active listings as well, so it would appear that while this area is showing itself to be desirable there are still plenty of homes to choose from for incoming buyers. Average sale price in this region was $214,069, placing it third most expensive behind the North and Northeast sections of town. After some very modest increases in interest rates over the last few weeks they have once again slid to record lows. The 30-year fixed rate average sits at 4.17% this last week according to Freddie Mac, while 15-year loans dipped to 3.57%. The drawn out economic recovery and job concerns still cause hesitation amongst buyers, but interest rates certainly aren’t standing in anyone’s way currently. As Fall begins to approach it is wise for sellers to take a look at their home and make any revisions necessary to keep the property in top shape to attract offers. Here are a few tips to keep in mind that could add appeal moving towards the Fall:
Just these few tips will ensure your home puts its best foot forward and makes your property memorable. Americans are shrewdly evaluating the current housing market and a recent poll conducted by Fannie Mae shows increased awareness of now being a good time for a home purchase. A total of 70% of respondents believe it is a good time to buy a home, which is up from 64% in January of this year. Continued values in today’s buyers market and exceptional interest rates are all encouraging this feeling. This poses the question of whether a surge in purchases may be coming when individuals feel more comfortable with the economy in general and more specifically their employment. Some rumblings have been made in Washington, D.C. which have questioned the desirability of eliminating the mortgage interest deduction for personal income tax. This position would be vehemently opposed by many groups the most vocal being the National Association of Home Builders and the National Association of REALTORS©. A survey commissioned by the NAHB recently determined that an overwhelming majority of citizens across a broad spectrum of onwerships interests and party affiliations support the current mortgage interest deduction. Almost 80% of all respondents said they supported the tax deductions which are a method of encouragement for homeownership. It’s very likely that this deduction will remain in place with such strong opposition to its elimination. |
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