Numbers, Numbers & More Numbers – A Mixed Bag

Sales are up! For the past couple of months we’ve been closing over 2000 homes a month. We haven’t seen numbers like that since mid ’06. Of those sales, 58% were what would be considered ‘normal’ sales and 42% were either bank-owned or short sales.

The pending sales, those under contract, increased as well for the sixth straight month. While this used to be a good indicator of future closings, I don’t feel it is as accurate as it used to be since many under contract do not make it to the closing table.

Inventory has been pretty much steadily dropping for the past year – down over 7000 properties to 17,231. We still have a long way to go as during a normal cycle we would see an inventory of about 7K homes.

The affordability index for Orange & Seminole counties is 181.48. An affordability index of 100 tells you that a median income family can qualify for a median priced home. Therefore, a higher index number shows you that they are more than qualified.

Current low interest rates should also be fueling increased demand as is the $8K tax credit.

So why are so many people still on the fence?

Well some do have the legitimate fear of losing their job. That is wholly understandable and should be a major consideration when undertaking a purchase of a home. But at the same time many are still frightened that prices will still drop. I can only talk about the Greater Orlando/Central Florida region, but I doubt if that will happen unless something catastrophic occurs. But that’s out of our control in almost any situation, anyway.

The other side of the coin is that interest rates will rise. That is an inevitability that we have to face. They will not stay at these levels much longer. That will also affect affordability in that as they rise homes become less affordable.

I think we are on the road to recovery. Granted, it won’t happen overnight, but neither did the debacle that we’re dealing with. We can not lose sight of the fact that real estate is a long-term investment. The run up and run down of the market has put us below the level where we should be at this time. But we will get back there. It will take time. Real estate is not supposed to appreciate like we saw, but at the same time it is a good investment. But as with any good investment, you have to put into it and nurture it & not take out from it and rape it (home equity loans).

Till next time…Marc It Sold!

Florida's $8K Tax Credit Downpayment Program

The program utilizing the Government's $8K tax credit as a downpayment became effective July 1. Unfortunately, there is no money as they are relying on current home sales' Doc Stamp taxes to fund the necessary reserves.

The Florida Homebuyer Opportunity Program’s (FLHOP) $8,000 tax credit is a bridge loan (short-term loan) administered by the state's local State Housing Initiatives Partnership (SHIP) program.

Florida's lawmakers are offering this loan to first-time homebuyers eligible for the federal government’s $8,000 tax credit utilizing current programs. But unfortunately, the rules for the SHIP and FLHOP programs differ and this is making for some issues. Because of such, some of the state's local SHIP offices may not be ready come the first week of Aug., the likely kick off date due to collections.

The legislation does not stipulate an education requirement as there are currently with other SHIP programs, but the primary lender may require such.

In some instances these monies can be used as part of the required downpayment, but "those who access through any other FHA-approved lender must (as with any standard FHA loan), provide the 3.5% themselves."

At this point, the best thing for you to do is to contact your local SHIP office.

Till next time....Marc It Sold!

Floridians Can Use Their Federal Tax Credit For A Downpayment

The Florida Legislature approved a budget in which they are providing $30.1M to downpayment assistance programs allowing people to use the Federal $8K tax credit for a downpayment. For 5 months as of July 1, those qualifying for the First Time Homebuyers Tax Credit, will be able to apply for downpayment assistance through their local county housing authority to be able to utilize the $8K tax credit for a downpayment at closing. In return, this amount will be repaid when the borrower receives their tax refund.

This is surely a win-win situation for all. It will definitely help many of those who are limited in purchasing a home because of the lack of an adequate downpayment. Hopefully, this will also further spur on what I'm seeing as an improving economy and especially consumer confidence.

All of the details have not been worked out, but I would suggest that you contact your local housing authority as quickly as possible. Theoretically, this will help over 3000 first time homebuyers. Now to the federal guidelines for the First-Time Homebuyer Tax Credit:

• To qualify, the home must be your principal residence (therefore, neither vacation homes nor rental properties)

• purchased prior to December 9, 2009.

• To be considered a first-time homebuyer, you may not have owned a home for the three years prior to the date you closed on this home.

• The home must cost at least $80,000 to receive the full tax credit, otherwise the credit will be prorated to 10% of the purchase price.

• To qualify for the full tax credit, your Adjusted Gross Income (according to your 1040 Form Tax Return) must be below $75K for single individuals and $150K for married couples. Reduced amounts are available above those limits, but are phased out at $95K for singles & $170K for couples.

• There is only one restriction and that is that you can not sell the home for three years otherwise you will have to repay the tax credit.

Happy House Hunting!!

Till next time....Marc It Sold!

For information on Seminole and Orange County real estate and Seminole and Orange County homes for sale in addition to Seminole and Orange County relocation contact Marc Grossman, your Seminole and Orange County Realtor @ 407-463-1034. Additional information is available for Seminole County real estate, Orange County real estate, West Volusia County and South Lake County.

To learn more about Marc and the services he has to offer, visit his website.

Marc Grossman, GRI - http://www.OrlandoHomes-4u.com/ - 407-463-1034

You can read Marc's other blogs Real Estate Morsels, Real Estate Off The Leash & Real Estate Cracker

Marc donates 10% of his net proceeds to Hospice of the Comforter.

Marc It Sold!