In November, Congress extended the tax credit and amended it to include some repeat buyers in hopes of securing a more sustained real estate upswing. However, the narrow window suggests none of us should count on another extension.

As the new deadline looms, first-timers who were excluded from the $8,000 credit by the old income limits will be looking to join the action, too.

We cannot count on any extensions this time so this is the time to act.  

In November, Congress extended the tax credit and amended it to include some repeat buyers in hopes of securing a more sustained real estate upswing. However, the narrow window suggests none of us should count on another extension.

As the new deadline looms, first-timers who were excluded from the $8,000 credit by the old income limits will be looking to join the action, too.

We cannot count on any extensions this time so this is the time to act.  

I’m surprised that the percentage is not higher. The government is trying to help those that want to save their home but many do not want the help. When I was in Real Estate in Florida Buyers where paying crazy prices for homes and resold them months later for thousands more. Now that real estate has turned they are walking away. Many of these people made lots of money flipping properties for year but know are not willing to take a loss. That seems to be the American way perhaps the Government can come up with a way to subsidize them for their loss… Just Kidding! http://bit.ly/6MlLNY

I find all this very exciting however I am not sure if real estate can turn that quickly on its own without another government handout. http://bit.ly/6qlNpJ

New construction has hit an all time high since September and my belief is because prefabs has lowered the cost of new construction and has enjoyed a steady growth because of the lower cost and controlled quality than on location construction. Let us not forget that first time buyer and the tax break has also helped new construction as younger families would rather be in a newer development.

If you’ve been watching the news lately, you’ve probably noticed a slew of positive coverage relating to the housing market. 

The figures that I am seeing in the press are quite impressive however I am not seeing a gain in housing prices in Western North Carolina. In fact I would say in most cases the price is still going down.

I am encouraged that the stabilizing prices along with increase in sales plus with decline in inventory are a clear indication that we may be looking at better days ahead nationally.  

But areas like Florida, Michigan and Ohio may take some time to heal.

Western North Carolina did not seem as hard hit as other areas in reference to sales, foreclosures and the like because we have been consistent with pricing without those crazy price increases they saw in Florida for example.

Among some of the news items coming out this week alone:  Housing prices in May showed their first gain in three years, there is a much smaller inventory of homes for sale and we continue to see a rise in home sales. All of this begs the question, is the market finally turning around? http://www.usatoday.com/printedition/news/
20090729/1ahousingsales29_st.art.htm

What do you think??????????????

When it Comes to the Real Estate Industry in N.C., Let’s Set the Record Straight
In an effort to dispel any mistruths and unsubstantiated facts about the housing market in North Carolina, NC REALTORS®’ July/August issue of 'For the Record,' a bi-monthly one-page document, is now available.
http://www.ncrealtors.org/uploads/FortheRecord7-09.pdf

Report: NC Home Prices Among Most Stable in Nation
The value of homes in North Carolina puts the state into some stable territory considering the number of elements currently shifting during the current economic downturn, according to NC Magazine.
http://tinyurl.com/lspupw

What Can You Expect Housing To Be in 2012
The housing industry is currently in a tug-of-war between those who think we've finally found a bottom and those who are convinced that the overhang of unsold homes is going to push prices considerably lower. What do you think?
Follow the link below for one prediction on where the housing market is headed.
http://www.businessweek.com/magazine/content/
09_26/b4137028238311.htm?chan=magazine+channel_top+stories

Fraud in Reverse Mortgages
The housing bubble, lax regulatory oversight and an influx of shady loan professionals have made lawmakers uneasy about the safety and soundness of the popular government-backed reverse-mortgage program. The number of HECM loans issued annually has grown from 157 in 1990 to more than 112,000 last year.
http://news.yahoo.com/s/mcclatchy/20090629/
pl_mcclatchy/3262645

Chinese Drywall Can Make You Sick? 
Problems were first reported in Florida, but Chinese drywall has since grown to become a household name, though not the good type. Follow the link below for all the facts on what caused the problems, what the complaints involve, and what’s being done to control it. Your clients might just ask you about it.
http://online.wsj.com/article/SB1000142405297
0204556804574260324092312130.html

North Carolina Cities in the Top 10 Fastest Growing U.S. Cities
Even as the economy suffers through a recession, we’ve got official proof that N.C. cities remain a magnet for newcomers. Raleigh, Cary, Durham and Charlotte all ranked among the 25 fastest growing large cities in the nation. Only Texas – with seven cities – had more cities on the list than North Carolina.
http://www.bizjournals.com/triangle/stories/2009/06/29/daily26.html

First-Time Homebuyers Make Big Return in March
Existing-home sales eased in March but first-time buyers are responding to low mortgage interest rates and tax credits, according to the National Association of REALTORS®.
http://www.realtor.org/press_room/news_releases/2009/04/march_ehs?LID=RONav0021

Cramdown Bill Continues to Face Senate Opposition
The bill that would let judges modify the mortgages of homeowners in bankruptcy is facing more opposition as it moves to the U.S. Senate. The bill Senators are being asked to vote on would require homeowners be at least two months delinquent and have an outstanding balance of less than $729,750 to qualify.
http://www.realtor.org/RMODaily.nsf/pages/News2009042805?OpenDocument


GOOD NEWS FOR JUMBO LOANS

Fannie Mae and Freddie Mac are once again set to begin buying "super-conforming" mortgage loans of up to $729,750, which should bring rates down for borrowers with good credit seeking loans previously classified as jumbo. Currently, loans greater than the $417,000 conforming limit in "normal" housing markets -- or the super-conforming limit of up to $625,500 in high cost markets -- are considered jumbo loans.

Fannie Mae and Freddie Mac are once again set to begin buying "super-conforming" mortgage loans of up to $729,750, which should bring rates down for borrowers with good credit seeking loans previously classified as jumbo. Currently, loans greater than the $417,000 conforming limit in "normal" housing markets -- or the super-conforming limit of up to $625,500 in high cost markets -- are considered jumbo loans.

Jumbo loans carry higher rates than conforming loans because they aren't eligible for purchase or guarantee by Fannie Mae and Freddie Mac. Rates on jumbo loans are running at least 1 percent to 1.5 percent higher than conforming loans of less than $417,000. In between conforming and jumbo loans are so called super-conforming loans that exceed the $417,000 conforming loan limit, but are still eligible for purchase or guarantee by Fannie and Freddie. Super-conforming loans carry slightly higher interest rates than conforming loans -- about 25 to 30 basis points -- but are less costly than jumbo loans that Fannie and Freddie can't buy or guarantee. A basis point is one hundredth of a percent.

On Jan. 1, the upper limit for super-conforming loans was rolled back from $729,750 to $625,500. But the economic stimulus bill signed into law Feb. 17 restored the higher limit for single-family homes in high-cost markets that was in place for much of 2008. The following week, the Federal Housing Finance Agency published lookup tables for the new

Fannie and Freddie limits in high-cost markets -- 250 counties nationwide. But Fannie Mae did not issue its eligibility requirements for the new limits until March 30. Freddie Mac published its guidelines on April 16. Both companies will begin buying super conforming loans of up to $729,750 from lenders on May 4. Wells Fargo will begin making super-conforming loans of up to $729,750 in high-cost markets on Monday, and Bank of America will start in mid-May, the San Francisco Chronicle reported. Implementation of the new policy should mean lower rates for some borrowers seeking loans that were previously classified as jumbo, but which now qualify for purchase by Fannie and Freddie as super- conforming loans.

Borrowers will generally need FICO scores of at

least 700 to obtain fixed-rate super-conforming mortgages, and provide at least a 10 percent down payment. Freddie Mac will require down payments of at least 20 percent for loans above $625,500. Both Fannie and Freddie are requiring appraisal reviews in cases where borrowers are putting down less than 20 percent on loans larger than $625,000, or less than 25 percent down on loans where the property is valued at more than $1 million (super conforming loans of up to $1.4 million are available for multi-unit properties). The secondary market for loans not backed by Fannie and Freddie all but dried up in September 2007. Lenders have been charging more for jumbo loans ever since, because they must hold them on their books. To address the problem, Congress last year temporarily raised the $417,000 conforming loan limit, but only in high-cost housing areas. The new rules allowed Fannie and Freddie to buy or guarantee loans of up to 125 percent of the median home price in high-cost areas, with an upper limit of $729,750. There were hopes that the secondary market for jumbo loans would be restored by now. On Jan. 1, a sunset provision in last year's stimulus bill brought the super-conforming loan limit back down to 115 percent of median home price in high-cost markets, with a cap of $625,500. But the secondary market for jumbo loans hasn't come back. So this year's stimulus bill, H.R. 1, the American Recovery and Reinvestment Act, restored the super-conforming loan limits in place for high cost housing markets during much of 2008. The bill also restored the Federal Housing Administration's ability to guarantee loans of up to 125 percent of the median home price in high-cost markets, up to a maximum of $729,750 for one-unit properties, $934,200 for two-unit properties, $1,129,250 for three-unit properties, and $1,403,400 for four-unit properties.

States Contemplate Loans for Homebuyers
The $8,000 first-time homebuyer mortgage tax credit has been a great motivational tool for potential homebuyers, if they have enough cash for a down payment. In an effort to help those with less cash, some states are contemplating offering an $8,000 loan to potential homebuyers with the expectation that the money be paid back once the homebuyer tax credit arrives.
http://www.realtor.org/RMODaily.nsf/pages/News2009041401?OpenDocument

Why the Banks Aren't Making Many Commercial Loans
Most commercial loan brokers will tell you that the banks are not making a whole lot of commercial loans these days. Surprisingly, the reason why isn't just because they are afraid to make new commercial loans. Follow the link below for more information.
http://realtytimes.com/rtpages/20090415_bankloan.htm

Business Group Supports Taxing Personal Services
The movement to overhaul North Carolina's 1930's era tax structure gained critical support yesterday when a committee of business leaders said it backed lowering income taxes, but would require that personal services be taxed.
http://www.newsobserver.com/politics/story/1485346.html

Small Business Assistance Fund Launched
Lt. Gov. Walter Dalton has announced the creation of the Small Business Assistance Fund, which will provide low-interest loans to help small businesses struggling to access capital. The new revolving loan fund received $3 million in funding in the budget passed last week by the N.C. Senate.
http://www.bizjournals.com/charlotte/stories/2009/04/13/daily21.html

How to Avoid the ‘Vacant Home’ Look
Selling a home that is vacant can be harder than selling a lived-in home, experts say. Follow the link below for some ideas on what practitioners and sellers should consider to protect an empty property and get it sold.