Are REALTORS all about the green?

Download now or preview on posterous

St Patrick's Day.docx (23 KB)

Posted via email from Around Northern Virginia

Prince William County Housing Stats – Feb 2010

For February, the sold units remain at very low levels. This shortage of inventory is having a positive impact on time on the market as well as pricing. Below are the statistics from MRIS, the local MLS system.

The volume of sales in Prince William fell by 26% from the prior February.

The average sold price rose 24.9% from $195K to $215K, suggesting both an improvement in competition as well as condition of the types of homes currently being sold.

The average days on the market decreased by over 40% in the past year. In 2009 it was 93 days, this February it has sunk to 44 days. It was back in 2005 when we last saw such quick sales. Home sellers are seeing multiple contracts on well priced homes.

Sellers received 100% of their sales price as a result this month. This does not, of course account for seller concessions which seem to be pretty standard in today’s marketplace. It seems to be an outstanding time to make a move if you have equity or even if you need to short sale and get out of an unsustainable debt. The question still remains about how the local area will respond to the expiration of the Federal tax credits at the end of April.

Jim Evans
Prudential Carruthers Realtors

Homes in Northern Virginia  Meet the Team  What’s my Home worth?

IRS clarifies documentation needed for tax credits

The new policy clarifies what documentation taxpayers need to submit to obtain either credit. When Congress revised the programs in November, it ordered the IRS to tighten its rules and monitoring to curtail widespread fraud that had emerged last year.

This included fictitious home purchases in which people received $8,000 checks from the government for transactions that had never occurred. In some cases, federal auditors found that fraud ringleaders were submitting multiple claims for credits and splitting the government payouts with people who had no financial ability to buy a house.

To avoid such abuses in the revised credit program -- which is scheduled to be available for qualified purchases closed through June 30 -- Congress directed the IRS to spell out documentation standards in detail and to install monitoring systems to spot fraud upfront. Among the keys to the monitoring system is that all documentation accompanying credit claims must comply with the IRS's detailed rules. Here's what the agency wants from anyone seeking a credit:

-- A fully executed IRS Form 5405 (available at http://irs.gov) on which taxpayers provide basic information supporting their claim of eligibility, including income and home purchase date.

-- A copy of the settlement statement proving that the sale and purchase transactions actually took place. In instructions to taxpayers issued last month, the IRS said the settlement statement should show "all parties' names and signatures, property address, sales price, and date of purchase. Normally this is the properly executed Form HUD-1."

The problem, however, is that home closing and settlement customs vary from state to state, and sometimes the HUD-1 does not contain both the seller's and the buyer's signatures. In escrow states such as California, where settlements are not sit-down affairs bringing together sellers and buyers, both sets of signatures might not appear on the HUD-1 received by the buyer.

In California, buyers sign an estimated closing statement or an estimated HUD-1 "at the time they sign their loan documents," said Donna Grosso, president of the California Escrow Association. Sellers have their "estimated closing submitted to them for their review and signature during or near the same time period as the buyer. We prepare the final closing statement or the final HUD-1 on the closing date," which is the date of recordation.

As a result, Grosso said, "we do not have the buyers or sellers available to sign the final closing statement." This seems to create an obstacle to meeting the IRS's instructions and makes it more likely that applicants' claims will be rejected or delayed for special review.

The agency tried to address that issue Feb. 12 by loosening its requirements. "In areas where signatures are not required on the settlement document, the IRS has clarified that it will accept a settlement statement if it is completed and valid according to local law," the agency said. "The IRS encourages those buyers to sign the settlement statement prior to attaching it to the tax return.

In situations where the signature of the seller is not on the settlement document, the IRS advises the buyer to still sign the document."

Despite the fact that Form 5405 continues to require all parties' signatures on the HUD-1 or settlement document, the agency is now essentially saying: "Don't worry about it. As long as your settlement statement conforms to prevailing local practices, we'll accept it."

This could be important for large numbers of repeat and first-time buyers who are planning to file for the credit with this year's tax returns and want to be sure they get through the IRS's tougher standards. Nationwide, according to estimates by the National Association of Realtors, 1.5 million repeat purchasers and 900,000 first-timers are expected to apply for credits this year.

What else does the IRS want to see on claims from home buyers? For repeat purchasers, the agency wants documentation that, before their latest purchase, they had lived in their former property for a consecutive five years out of the past eight years. This may include property tax records, hazard insurance records or copies of annual mortgage interest statements filed with their federal taxes.

One caveat for filers: Because of the increased documentation and monitoring, IRS processing will take four to eight weeks. So don't expect your $6,500 or $8,000 check overnight.

via washingtonpost.com

IRS clarifies the housing tax credit.

Posted via web from Jim's posterous

Local Market activity through January 2010

Absorption Rate* comparing August 2009 thru January 2010:

 

	AUG	SEP	OCT	NOV	DEC	JAN
Under 249,999	71 days	130 days	115 days	120 days	143 days	156 days
250,000 - 299,999	110 days	106 days	99 days	97 days	115 days	165 days
300,000 - 399,999	88 days	83 days	94 days	85 days	95 days	148 days
400,000 - 499,999	82 days	83 days	101 days	82 days	108 days	133 days
Over 500,000	131 days	176 days	193 days	160 days	128 days	220 days

 

DULLES ASSOCIATION OF REALTORS (LOUDOUN COUNTY)

 

January listings compared to December: Increased 6% to 1,914.

 

January sales units compared to December: Decreased 37% to 247.

 

January 2010 Sales Units compared to January 2009 Sales Units: Decreased 13%.

 

The average sold price for all homes for January was $382,668, Up 17% compared to 2009.

 

Absorption Rate* comparing August 2009 thru January 2010:

	AUG	SEP	OCT	NOV	DEC	JAN
Under 249,999	132 days	122 days	129 days	137 days	132 days	179 days
250,000 - 299,999	101 days	136 days	109 days	89 days	83 days	162 days
300,000 - 399,999	97 days	92 days	99 days	106 days	101 days	153 days
400,000 - 499,999	145 days	153 days	114 days	163 days	120 days	280 days
Over 500,000	193 days	235 days	253 days	249 days	188 days	427 days

 

PRINCE WILLIAM ASSOCIATION OF REALTORS

 

January listings compared to December: Increased 3% to 2,696.

 

January sales units compared to December: Decreased 19% to 466.

 

January 2010 Sales Units compared to January 2009 Sales Units: Decreased 42%

 

The average sold price for all homes for January was $243,020, Up 20% compared to 2009.

 

Absorption Rate* comparing August 2009 thru January 2010.

 

	AUG	SEP	OCT	NOV	DEC	JAN
Under 249,999	96 days	108 days	102 days	106 days	124 days	145 days
250,000 - 299,999	148 days	132 days	100 days	110 days	134 days	153 days
300,000 - 399,999	121 days	139 days	128 days	129 days	116 days	171 days
400,000 - 499,999	146 days	153 days	164 days	179 days	152 days	248 days
Over 500,000	311 days	325 days	398 days	336 days	392 days	422 days

 

*Absorption Rate is the number of days, at current rates of sale, that would be required to dispose of current inventory, provided no additional listings are added to the market. This calculation accurately tracks market conditions and has been used by the home building industry for more than 30 years.

Posted via web from Jim's posterous

Mortgage demand at six-week highs on refinance wave - Yahoo! News

NEW YORK (Reuters) – Demand for home loans rose to a six-week high on a mini refinance wave, with borrowers pushing to lock in rates before they climb later this year, the Mortgage Bankers Association said on Wednesday,

Applications to buy homes and refinance loans jumped last week to mid-December levels as average 30-year mortgage rates held near 5 percent.

The industry group's mortgage index jumped 21 percent last week, fueled by a 26.3 percent leap in demand for refinancing as purchase loan requests increased 10.3 percent.

The 30-year mortgage rate dipped 0.01 percentage point to 5.01 percent.

But this borrowing cost was 0.40 percentage point above the record low set last March and seen headed higher throughout the year.

"Rates continue to hover around 5 percent, quite low by historical standards, but are well above the record lows seen in 2009 and hence are not generating substantial refi volume," said Michael Fratantoni, MBA's vice president of research and economics.

Last spring when mortgage rates hit rock bottom, the index for refinance applications was more than double its current level.

Nonetheless, as the U.S. housing market claws its way out of the worst crash since the Great Depression there are increasing signs that the important spring selling season could be relatively healthy.

Affordability remains high with mortgage rates still historically low and average home prices plunging about 30 percent from 2006 peaks before stabilizing since last summer.

The government's bonus to first-time and move-up buyers via a tax credit remains in place for several more months, luring buyers who have been sitting on the sidelines waiting for some signs of stability.

Qualified borrowers who sign purchase contracts by April 30 and close on loans by the end of June can get an $8,000 first-time buyer credit or $6,500 move-up credit.

Each set of housing data brings with it the debate about whether this key segment of the U.S. economy can sustain once the government incentives disappear.

A modest December rise in pending sales of existing homes, which are based on signed contracts, after a steep November drop suggested that the housing rebound would come in fits and starts.

"I do think the housing recovery in the U.S. still has legs and is firmly in tact," said Ian Pollick, economics strategist at TD Securities in Toronto. "There's a lot of pent up demand in the system right now, there are a lot of really really good deals."

The rise in mortgage rates is seen as gradual this year with the Federal Reserve committing to keeping interest rates low for an extended period.

One of the wild cards is the pace at which banks start putting foreclosed properties up for sale. Those sales are also expected to be measured, to prevent a second price swoon that results in a double-dip for housing.

"Taken as a whole I have a big thumbs up for the housing market," said Pollick. "I really do think that the recovery is sustainable and I really do think that we've seen the worst in the rearview mirror."

via news.yahoo.com

The worst may be behind us. Sounds like a good time to buy to me!

Posted via web from Jim's posterous

Treasury to Cut Foreclosure Relief Paperwork

Daily Real Estate News  |  January 28, 2010  |  

Treasury to Cut Foreclosure Relief Paperwork
The Treasury Department is announcing a plan Thursday to reduce the burdensome paperwork surrounding the foreclosure relief plan.

Two changes expected to make a big difference are: Lenders will be required to collect two pay stubs at the start of the process, and borrowers will be required to give the Internal Revenue Service permission to provide their most recent tax returns.

Participating mortgage service companies will be required to acknowledge that they have received a borrower’s application within 10 days and approve or deny the application within 30 days. Borrowers will still be required to make three months of trial payments before the modification is made permanent.

Treasury officials are also reportedly devising a plan to give unemployed borrowers a break on payments – probably for six months – but because the details aren’t decided, the announcement won’t be made this week.

 

Source: The Associated Press, Alan Zibel (01/27/2010)

 

Posted via web from Jim's posterous

REALTOR® Magazine-Daily News-Treasury to Cut Foreclosure Relief Paperwork

Check out this website I found at realtor.org

Posted via web from Jim's posterous