Existing home sales at highest level since 2007

Existing home sales rose 10.1% last month. Good overview of the market and statistics below.

Have a Great Holiday!

Nancy Harville

Qualifying Broker

Existing home sales at highest level since 2007
Sales activity rises more than expected in October, by 10.1%, to 6.1 million annual units.

NEW YORK (CNNMoney.com) -- Existing home sales surged in October to the highest level in more than 2-1/2 years, according to a real estate industry report issued Monday.

The National Association of Realtors reported that existing home sales rose 10.1% last month to a seasonally adjusted annual rate of 6.1 million units, up from the downwardly revised rate of 5.54 million in September.

The sales beat forecasts of 5.7 million annual units, according to a consensus estimate of analysts compiled by Briefing.com, and were 23.5% above the 4.94 million-unit pace of 12 months ago.

Sales activity is the highest since February 2007, when the annual rate was 6.55 million.

The gain was likely due to an influx of buyers looking to take advantage of an $8,000 tax credit that the Obama administration made available for qualified first-time home buyers, the report said.

The tax credit was scheduled to expire at the end of November, but it has been extended to April 30 and expanded to include more home buyers.

"Many buyers have been rushing to beat the deadline ... and similarly robust sales may be occurring in November," NAR chief economist Lawrence Yun said in a statement.

Click Here to Read the Full Article at CNNMoney.com

Homebuyer Tax Credit Would Expand to Owners Under Senate Plan

Senators Agreed to extend tax credit through April 2010. The Credit was due to expire at the end of November. This agreement will let homeowners who buy a new home and have lived in their residence for five years qualify for a $6500 Tax Credit. Read the article below for all of the details. Great news for the Real Estate industry as well as the overall economy in my opinion.

Nancy

Homebuyer Tax Credit Would Expand to Owners Under Senate Plan

Oct. 29 (Bloomberg) -- The $8,000 tax credit for first-time homebuyers would be extended and some people who already own residences could claim a benefit under a proposal by Senate Democrats.

An agreement reached yesterday by the Democrats would let homeowners who buy a new home qualify for a $6,500 credit if they have lived in their prior residence for five years, according to Regan Lachapelle, an aide to Senate Majority Leader Harry Reid.

“The compromise we have now would expand the credit beyond first-time homebuyers,” Lachapelle said. Lawmakers expect to consider the measure as part of a bill to extend unemployment benefits, she said. That measure has been held up by a disagreement with Republicans over other proposed amendments.

Click Here to Read the Rest of the Article

Attention Investors/ First time home Buyers

Good afternoon to all. I wanted to share the news if you have not heard.
The Federal Reserve announced late yesterday that they are keeping the interest rates low, these are among the lowest levels we have seen in years.
This is great news for first time home buyers who can still take advantage of the $8000.00 Tax Credit and the low interst rates. This is also a great time if you are an Investor and do not want to use all of your cash flow and would like to finance properties. I work with a couple of great lenders and would be happy to refer any Investor or First time home Buyer to them. The article below details the Feds decision and why. Very interesting Read in Today's Wall Street Journal.
Best Regards,
Nancy

Home Buyers Get a Reprieve
The Wall Street Journal - September 24, 2009

By Sudeep Reddy and James R. Haggerty

The Federal Reserve, in a move aimed at keeping interest rates low for home buyers through early next year, decided to extend and gradually phase out its purchase of mortgage-backed securities.

The Fed's action signals its belief that the economy, while in recovery, remains fragile and that housing, which has seen some improvement in recent months, has only started to pull out of its slump.

"We definitely need help from the government," says Lee Barrett, president of Century 21 Barrett, a real-estate brokerage firm in Las Vegas. "I don't think the market can make it on its own." He also ... Click Here to Read the Rest of this Article at Wall Street Journal.com

More than $150 Billion in Commercial Loans to Come Due

Good Morning,
This article appeared in Today's Wall Street Journal, thought it important enough to share.
The Treasury has relaxed the restrictions on refinancing in response to the growing pain occurring in the Commercial Real Estate Industry. The restructuring of these loans has a big impact on our economy and the Real Estate industry.

New Rules Ease the Restructuring of CMBS Loans
Treasury Relaxes Restrictions on Refinancing in an Effort to Stave Off Commercial Mortgage Defaults

Wall Street Journal - September 16, 2009
BY LINGLING WEI

The Treasury, responding to the growing pain in the commercial real-estate industry, released new tax rules that make it easier for distressed property owners to restructure loans that were packaged by Wall Street firms and sold as securities.

Most in the real-estate industry, which lobbied intensely for the move, applauded the action. But some warned it has opened a Pandora's box, especially for servicers of the securities who will likely come under new pressure from borrowers and competing classes of investors.

The move is the first round of "additional guidance" the Treasury is weighing to stave off what many fear ... Click her to continue article on WallStreetJournal.com

Forclosures Holding Steady

New Mexico reported 736 properties with some sort of Foreclosure related filing in August 09. This reported by RealtyTrac. This number is a jump of 50% over reported numbers in 2008. On a positive note, this is a 16% decrease from July 09.
This should give First Time Home Buyers incentive to get out there and buy, there are so many good deals out there right now. Short Sales included. The $8000.00 tax incentive expires December 1st 2009. So get out there and Buy!!!
Read the full article below, featured in Friday's Albuquerque Journal.
Have a great weekend.
Nancy

By Adrian Sainz /The Associated Press Thursday, 10 September 2009 18:02 MIAMI - The number of U.S. households threatened with losing their homes held steady last month, a sign that lenders' efforts to help distressed borrowers may be having a gradual impact.
More than 358,000 foreclosure-related filings were recorded in August, meaning one in 357 U.S. homes received a filing, RealtyTrac Inc. reported Thursday. That number, up 18 percent from a year ago, includes default notices, scheduled auctions and bank repossessions.
New Mexico, ranked 36th in the report, had 736 properties with some sort of foreclosure-related filing in August, a jump of nearly 50 percent from August 2008 but a 16 percent improvement over July. Only one household in every 1,171 statewide saw a foreclosure filing in August, dramatically less than the nationwide ratio.
Mortgage companies are ramping up efforts to help troubled borrowers modify their loan payments to make them more affordable, data showed. And RealtyTrac said bank repossessions dropped 13 percent from July.
The problem is the economy. The unemployment rate continues to rise, despite a new Federal Reserve survey that suggested the recession is over.
More than 138,000 households received a default notice in August. Another 144,113 received a notice scheduling the house for public auction.
"The August report demonstrates that there is still an ample supply of properties filling the foreclosure pipeline," said James Saccacio, CEO of Irvine, Calif.-based RealtyTrac.
Despite an 8 percent monthly decline in foreclosure activity in August, Nevada had the nation's highest foreclosure rate for the 32nd straight month. Florida, California, Arizona, Michigan, Idaho, Utah, Colorado, Georgia and Illinois completed the top 10 states for foreclosure filings.

NM Pending Sales Drop in July but increase across the US

I am expecting Home sales to rally in September and October with the deadline for the $8000.00 Tax incentive to end November 30Th. This is a great time to buy if you are a first time home buyer. Prices have not been this good in years and the incentive is the best I have ever seen offered. Below is the full article featured in the Albuquerque Journal today. If you know of a first time home buyer, please make them aware of the incentives offered. This is a one time deal and folks should really take advantage of it. Feel free to contact me, I will be happy to assist you in your new home purchase.
Best Regards,
Nancy
The article below appeared in the Albuquerque Journal and I wanted to share it with you.

Wednesday, September 02, 2009

N.M. Bucks U.S. Home Sales Rise

By Alan Zibel
The Associated Press
WASHINGTON — Pending home sales in most states — but not New Mexico — rose more than expected in July as first-time buyers rushed to take advantage of a tax credit that expires this fall.
The National Association of Realtors said on Tuesday that its seasonally adjusted index of sales contracts signed in July for previously occupied homes rose 3.2 percent to 97.6. It was the sixth straight increase and 12 percent above the same month last year.
Economists surveyed by Thomson Reuters expected the index would edge up to 96.5.
In the Albuquerque metro area, July produced the first recent decrease in pending sales, down to 875 from 933 in June. Local real estate officials had been hoping for another month of growth but since that did not happen, “that means that June was the peak,” said Don Padilla, chairman of the Greater Albuquerque Association of Realtors.
Pending sales could rebound, he said. “What we might see for August or maybe even September, we might see a spike (in sales) because of the deadline for the first-time homebuyer tax credit that expires Nov. 30.”
Typically there is a one- to two-month lag between a contract and a done deal, so the national index is a barometer of how sales completed this month and next will turn out. However, delays in getting mortgages approved and appraisals completed have lengthened the time it takes to close a deal.
In a separate report, the U.S. manufacturing sector grew in August for the first time in 19 months as new orders from customers jumped to the highest level since late 2004. The better-than-expected reading Tuesday by the Institute for Supply Management showed the highest number for its manufacturing index since June 2007.
The ISM, a trade group of purchasing executives, said its manufacturing index rose to 52.9 in August, from 48.9 in July. It's the first reading above 50 since January 2008.
Journal staff contributed to this report.

Are you Ready to Go Solar?

It's time to Go Green. Solar energy is the way to go and with over 300+ days of Sunshine here in the Land of Enchantment, it is time we all look at converting to Solar panels etc. This is a great article that appeared in the Albuquerque Journal on Sunday talking about how local builder, Artistic Homes have developed an energy series of homes. Let me know what you think. Are you ready to go Solar?
Nancy

Artistic Homes' Zero Energy series designed to dramatically reduce electricity consumption
By Jane Mahoney
For the Albuquerque Journal

Every month, Miguel and Miriam Reyna write an extra check for about $120 toward the principal on their home mortgage. The payment reflects the amount they receive each month from PNM for producing more electricity than they use in their solar home in Rio Rancho.
"We've never gotten a regular electrical bill," said Miguel Reyna, who, with his wife and young child, moved into an all-electric home in March. "So far, we've gotten back between $110 and $130 every month."
Participation in PNM's net metering program is just one of the perks that Reyna likes about the family's new Zero Energy home by Artistic Homes, a production builder with a goal of bringing affordable solar homes to buyers.
Artistic's Zero Energy series opened its first model home about a year ago, and now offers buyers several options. Top of the line in efficiency is a true Net Zero Energy all-electric home with rooftop-mounted photovoltaic (PV) solar panels to generate electricity and a solar thermal system to heat water. Other home packages include a smaller, introductory solar option in which about a third of a home's electricity is generated by the PV system.
The base price of Artistic homes (without solar panels) ranges from about $149,000 to more than $260,000 depending on size and location. A photovoltaic system to produce electricity and a solar thermal system to heat water can add upwards of $60,000 to a home, although federal and state tax incentives and rebates have softened the blow. Artistic Homes builder/co-owner Tom Wade said that any floor plan offered by the company can support a solar option installed as the home is being built.
Click Here to View Full Article at AlbuquerqueJournal.com