Real Estate News

[1]RISMEDIA, November 10, 2009—HomeGain.com, one of the first websites to offer Web-based free instant home values, announced that it has released the results of its nationwide home improvement and home staging Home Sale Maximizer survey.

HomeGain’s recent survey shows the top do-it-yourself home improvements that Realtors recommend to home sellers. HomeGain received responses from nearly 1,000 Realtors nationwide and configured a list of the top 12 do-it-yourself (DIY) home improvements that cost under $5,000 and benefit sellers most when they sell their homes.

According to the HomeGain survey, the top five home improvements that Realtors recommend to home sellers based on cost and return on investment (from highest to lowest ROI) are:

1. Cleaning and de-cluttering ($200 cost / $1,700 price increase / 872% ROI)
2. Home staging ($300 cost / $1,780 price increase / 586% ROI)
3. Lightening and brightening ($230 cost / $1,300 price increase / 572% ROI)
4. Landscaping ($320 cost / $1,500 price increase / 473% ROI)
5. Repairing plumbing ($385 cost / $1,250 price increase / 327% ROI)

Cleaning and de-cluttering continues to rank as the top suggested home improvement (since the survey was originally conducted in 2000), recommended by 98% of Realtors, costing less than $200 and returning a value of nearly $1,700 to the home’s sale price, or an 872% return on investment.

“Many Realtors agree, especially in a buyer’s market, that sellers who make these recommended home improvements often get their homes sold faster and at higher prices,” stated Louis Cammarosano, General Manager at HomeGain. “We have customized our Home Sale Maximizer online home improvement tool to help identify and prioritize the projects that can increase the salability and selling price of a home.”

Rounding out the top 12, the list of low cost, do-it-yourself home improvements includes: updating electrical, replacing or shampooing carpets, painting interior walls, repairing damaged floors, updating kitchen, painting outside of home, and updating bathroom/s.

The home improvement projects with the highest price increases to a home’s resale value are updating the kitchen ($1,200 cost / $2,850 price increase), followed by painting the outside of the home ($900 cost / $1,815 price increase) and home staging ($300 cost / $1,780 price increase).

“Inexpensive cosmetic home improvements and basic improvements greatly enhance the value of the home,” stated Carol Wilson of Carpenter Real Estate in Indianapolis, IN, HomeGain AgentEvaluator member since 1999.

5 questions to ask

1) Do I know the value of my home in today's market?
2) Am I ready to work with a buyer's agent?
3) Will I take charge of sales and marketing responsibilities?
4) Can I bear criticism of my home?
5) Am I willing to screen potential buyers?

RISMEDIA, November 6, 2009—President Barack Obama has approved the first-time homebuyer tax credit extension which will extend the tax credit until April 30, 2010.

The extension is part of a $24 billion economic stimulus bill that will extend the $8,000 tax credit for homebuyers who are purchasing their first home from the current November 30 deadline and expands the program to offer a credit of $6,500 to homeowners who have lived in their current home for at least five years and are seeking to relocate.

The following details apply to the homebuyer tax credit expansion:

Who is Eligible
-First-time homebuyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit.
-Existing homeowners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for up to a $6,500 tax credit.
-All U.S. citizens who file taxes are eligible to participate in the program.

Income Limits
Homebuyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.
-For married couples filing a joint return, the combined income limit is $225,000.
-Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
-The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000.

Effective Dates
-The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.

Types of Homes that Qualify
-All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify.

Tax Credit is Refundable
-A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.
-For example:
-A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 refund, you would receive $9,000 ($1,000 plus the $8,000 first-time homebuyer tax credit).
-A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit).
-All qualified homebuyers can take the tax credit on their 2009 or 2010 income tax return.

Payback Provisions
The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.

The www.federalhousingtaxcredit.com site is being updated. Check the site next week for more detailed information on the new tax credit.

For more information, visit www.nahb.org.

RISMedia welcomes your questions and comments. Send your e-mail to:

Continued

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Fri June 4th, 2009

May Real Estate Statistics for the Greater St Louis area:

	2008	2009
Number of Solds	2829	2375
Ave days on Market	99	99
Ave Sales Price	$187,232	$167,924

Although the market is not doing as well as last year the losses in May are not as bad as previous months in 2009.

We are expecting a slow recovery the rest of the year. The market still remains strong for buyers due to:

• Low interest rates
• A Great supply of homes on the market

• New loans available to buyers
• The $8000 tax credit for 1st time buyers

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The Two Latest Signs Housing Is Recovering
Here’s more evidence that the housing market is recovering.

Two major home builders, Toll Brothers Inc. and Hovnanian Enterprises Inc., say their losses were shrinking compared to last year because buyers are coming back to the market.

Other encouraging news came from HIS Global Insight, a research firm, which said home prices fell on average at an annual rate of 2.2 percent in the first quarter in 199 of 330 metropolitan areas. That compares with a 12.5 percent decline in the fourth quarter of 2008 in 312 metropolitan areas.

"While it's too early to see a bottom of this housing downturn," the report said, the latest data "may signal that the market is beginning to stabilize."

Source: The Wall Street Journal, James R. Hagerty and John Spence (06/04/2009)

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Mon June 29th

The latest numbers indicate the trends for sales in the St Louis area continue to be down from 2008.

As of June 29th -  month to date  . . . There were 1427 closings as compared to 2008 there were 2078 closings which is a 31% reduction in the number of  sales. When the month end numbers are available we will keep you posted.

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Sunday Juy 12th, 2009

The latest sold stats are in for:

• St louis City
• St louis County
• Jefferson County
• Franklin County

	Number of Sales	Ave Sales Price	Days on Market
2009	2321	$216,287	93
2008	2673	$203,407	92

With only a slight decrease in the number of sales  the market seems to be headed in the right direction.

For detailed information concerning your zip-code or area go to the market analysis page on our web-site.

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Juy 19, 2009

The number of homes and condo closings in St Louis City, St Louis County, St Charles County, Franklin County, and Jefferson County  as repoted in the MLS have decreased so far this month as compared with July of 2008 (Month to-date):

2008	1247
2009	946

The good news is that the sales so far this month seem to be getting better due to the $8000 tax credit and continued low interest rates.

In todays market homes are not only in a price war they are also in a beauty contest. Buyers today are not only looking for a good value they are looking for a home with not much to do.

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Daily Real Estate News | July 20, 2009 | Share
Housing Experts: Now Is a Perfect Time to Buy
Don’t forget to remind potential buyers of something that is obvious to real estate professionals: Now is the time to buy, but that opportunity may be slipping away.

For people who have a job and money, a dream house is within reach, writes Marc Roth, founder of Home Warranty of America and a columnist for BusinessWeek.

He points out that mortgage rates remain low, prices are still at historic lows, and the government is offering incentives for first-time homebuyers.

He also adds that the inventory of homes to buy is still large, but it is shrinking. According to the NATIONAL ASSOCIATION OF REALTORS®, the housing inventory peaked in November 2008 at an 11-month supply. At the end of 5/29, it had fallen to a 9.6-month supply.

Roth says anyone who dallies will miss a good opportunity to buy a first home at a terrific price or go shopping for a move-up property that is a great buy.

Source: BusinessWeek.com, Marc Roth (11/17/2009)

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For more details about our local market please go to the market analysis tab on our web-site . . http://www.coldwellbankerpremier.com/marketanalysis.html 

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Wed Juy 29th, 2009

Some great news for the St Louis area  . . .

St Louis is one of 22 cities to show an increase in home prices.

For last month home values increased about 3.3.%

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Sun Aug, 2nd, 2009

We are proud to announce that Coldwell Banker Premier Group is the number 1 affiliate Coldwell Banker office in Missouri year- to -date in terms of sales.

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Sun Aug 9th, 2009

The real estate market continues to improve with over 2200 closings scheduled for Aug.

We are seeing more people come to the open houses and more requests for property information than we have seen in a very long time.

Of course we still a re not back to the market we saw 24 months ago but we do believe the real estate market is beginning to turn.

Our company alone closed on over $11 million in July.

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Sat Aug 22nd

Survey shows that women are faster than men in selecting a house.

Nearly 70% of women knew their home was right for them the day they saw it. The figure for men was 62%.

Concersns about personal safety was a deal breaker for both men and women.

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Sunday Aug 30th

As the article indicates on our Home Page the time is growing near to take advantage of the $8000 tax credit for 1st time buyers.

People need to start making plans now and should plan on closing at least 2 weeeks early.

For more details call one of our offices.

• 314-647-0001
• 314-963-9494
• 636-239-0667

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Friday September 4th

August 2009 shows an increase in the number of homes that sold compared with August 2008.

Exact numbers will be available shortly.

Hooray !

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Sun Sept 13th

The Final numbers are in via our Mls Sytem for the month of Aug and the market does seem to be improving . . .

	Sales	Ave Sales Price	Days  on market
2008	2283	$201,020	88
2009	2083	$177,790	89

These numbers are for St Louis, St Louis County, Jefferson - Franklin - St Charles Counties for homes and condos that have sold or the month of Aug

The losses over the last severla months do not see mto be as drastic as previouus months. The lower ave. sales price is probably dut to the first time buyer tax credit.

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Wed Sept 16 th, 2009

Daily Real Estate News | September 11, 2009 | Share
Many Experts Support Extending Tax Credit
Real estate professionals and home builders are pushing for an extension and an increase in tax incentives to encourage homebuying. Otherwise, they argue, that it is very likely that the current housing uptick will end on Dec. 1, when the tax credit does.

“The giddiness we see out there [about a recovery] is without merit," says Richard A. Smith, CEO of Realogy, which is the parent company of Century 21, ERA, Coldwell Banker, and Sotheby's International Realty.

Not everybody sees things Smith’s way. Michelle Meyer, an economist with Barclays Capital in New York, says that while the tax credit did contribute to an increase in sales, some of the improvement reflects an improving economy.

“Even if you say some of the gain is artificial, it's still true that we're seeing an increase in housing demand, and that shows fundamental strength," she says.

Mark M. Zandi, chief economist at Moody's Economy.com, ignores this chicken-or-egg argument and points to an analysis he did that suggests increasing the tax credit to $15,000 for all home owners through the end of next year would result in 675,000 additional home sales.

Source: BusinessWeek, Prashant Gopal (09/11/2009)

If you are looking to take advantage of the tax credit PLEASE make sure your home closes  on or before Nov 30th, 2009

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Fri Sept 25th, 2009

Fed Keeps Interest Rates

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Federal Reserve Stands Pat on Low Interest Rate
By Don Lee Print Article
RISMEDIA, September 25, 2009—(MCT)-The Federal Reserve recently maintained short-term interest rates at near zero and offered no indication of any imminent change in that policy, even as the central bank gave a more upbeat assessment of the U.S. economy.

Since its previous monetary policy meeting in mid-August 2009, “economic activity has picked up following its severe downturn,” the Fed said in a statement. Moreover, the panel noted, activity in the long-struggling housing sector has increased.

However, Chairman Ben Bernanke and his colleagues on the 12-member group said that consumer spending, while apparently stabilizing, continued to be constrained by job losses and sluggish income growth. Overall, “economic activity is likely to remain weak for a time,” with substantial slack, or unused capacity, damping cost pressures and keeping inflation subdued, the Fed said.

Against this setting, the central bank announced it was leaving the target for the federal funds rate, a benchmark for all interest rates, between zero and 0.25% for “an extended period.”

Although hardly anybody was predicting a change in policy, there has been growing discussion inside the Fed and elsewhere about when and how the central bank should step back from its expansive monetary policy and extraordinary interventions, given concerns about long-term inflation and the signs that the economy is recovering.

In a nod to such concerns, the Fed statement noted that although the central bank will continue with its previously announced plan to buy $1.25 trillion of government agency mortgage-backed securities to support the housing market, the policy-setting committee “will gradually slow the pace” of this and some other purchases.

Last month, policymakers announced plans to wind down their program of buying $300 billion of Treasury securities, another emergency measure that the Fed undertook to drive down long-term interest rates and prop up the economy.

(c) 2009, Tribune Co.

Distributed by McClatchy-Tribune Information Services.

For information on interst rates in the St Louis area please feel free to call.

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U.S. Monthly House Price Index Estimates 0.3% Price Increase from June to July 2009
RISMEDIA, September 25, 2009—U.S. home prices rose 0.3% on a seasonally-adjusted basis from June 2009 to July 2009, according to the Federal Housing Finance Agency’s monthly House Price Index. The previously reported 0.5% increase in June was revised downward to a 0.1% increase. For the 12 months ending in July, U.S. prices fell 4.2%.

The U.S. index is 10.5% below its April 2007 peak. The FHFA monthly index is calculated using purchase prices of houses backing mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac. For the nine Census Divisions, seasonally-adjusted monthly price changes from June to July ranged from -0.9% in the East South Central Division to + 1.6% in the Pacific Division.

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Sun Oct 4th

Here are the stats for the month of Sept as compared with last year compiled by the mls.

These are for homes and condos in St Louis City, St louis,Franklin, Jefferson and St Charles Counties.

                         2008                               2009

Sales                   2047                               2097

Volume            $366,653,285                     $366,395,512

Days on Market       98                                        91

 Based on this information the market seems to be improving. Much of it can be attributed to the 1st time buyer traffice because of the Tax Credit program.

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Fri Oct 9th, 2009

As reported in the Real Estate Daily News . . .

Daily Real Estate News | October 9, 2009 | Share
Long-Term Mortgages Near Record Low
Thirty-year, fixed-rate mortgages moved closer to the all-time low of 4.82 percent reached in May, falling to 4.87 percent this week from 4.94 percent a week ago, according to Freddie Mac.

Home owners who refinance have an opportunity to reduce their payment on a 30-year, fixed-rate loan for $200,000 by nearly $134 a month from a year ago, when long-term rates averaged 5.94 percent.

Other mortgage averages were as follows:

15-year loans fell to 4.33 percent.
Five-year adjustable-rate mortgages dropped to 4.35 percent.
One-year ARMs rose to 4.53 per cent

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Fri Oct 16thEconomists Predict Housing Recovery

Economic forecasters predict that 2010 will be the first year since 2005 for housing to contribute to the growth of the U.S. economy, according to a survey released by the National Association for Business Economics.

Home prices are expected to rise 2 percent next year, but forecasters don’t believe the increase in prices will discourage homebuyers.

More than 80 percent of economists surveyed by the NABE think the recession is over and recovery has begun, but they expect the expansion to be slow because unemployment persists.

Source: Associated Press, Mae Anderson (10/12/2009)

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Fri Oct 23rd, 2009Big Rebound in Existing-Home Sales
Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of REALTORS®.

Existing-home sales—including single-family, townhomes, condominiums, and co-ops—jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million units in September from a level of 5.10 million in August, and are 9.2 percent higher than the 5.10 million-unit pace in September 2008. Sales activity is at the highest level in more than two years, since it hit 5.73 million in July 2007.

Lawrence Yun, NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” he said. “We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.”

Even with the improvement, Yun said the market is underperforming. “Despite spectacular gains in the stock market, principally from the financial sector recovery, most of the 75 million home-owning families have more wealth tied to their homes. Home values could soon turn consistently positive and help the broad base of middle-class families, but we are not there yet,” he said.

Conditions for First-Time Buyers
Early information from a large annual consumer study to be released on Nov. 13, the 2009 National Association of REALTORS® Profile of Home Buyers and Sellers,shows that first-time home buyers accounted for more than 45 percent of home sales during the past year. A separate practitioner survey shows that distressed homes accounted for 29 percent of transactions in September.

NAR President Charles McMillan said affordability conditions remain historically high. “Potential first-time buyers can take heart in that affordability conditions this year are the highest on record dating back to 1970, but with the first-time buyer tax credit scheduled to expire at the end of next month, people could hold back from entering the market,” he said. “Our read is that housing overshot on the downside because homes are selling for less than replacement construction costs in much of the country, and the home price-to-income ratio has fallen below the historical average.”

Inventory Falls
Total housing inventory at the end of September fell 7.5 percent to 3.63 million existing homes available for sale, which represents an 7.8-month supply at the current sales pace, down from an 9.3-month supply in August. Unsold inventory totals are 15.0 percent below a year ago.

“The current housing supply is the lowest we’ve seen in two and a half years,” Yun said. “If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.06 percent in September from 5.19 percent in August; the rate was 6.04 percent in September 2008.

Home Sales Breakdown
The national median existing-home price for all housing types was $174,900 in September, which is 8.5 percent lower than September 2008. Distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.

Single-family home sales rose 9.4 percent to a seasonally adjusted annual rate of 4.89 million in September from a pace of 4.47 million in August, and are 7.7 percent above the 4.54 million-unit level in September 2008. The median existing single-family home price was $174,900 in September, which is 8.1 percent below a year ago.

Existing condominium and co-op sales jumped 9.7 percent to a seasonally adjusted annual rate of 680,000 units in September from 620,000 in August, and are 9.7 percent above the 561,000-unit pace a year ago. The median existing condo price was $175,100 in September, down 11.7 percent from September 2008.

Here’s the region-by-region picture:

Northeast: Existing-home sales increased 4.4 percent to an annual level of 950,000 in September, and are 11.8 percent higher than September 2008. The median price was $234,700, down 7.0 percent from a year ago.
Midwest: Existing-home sales jumped 9.6 percent in September to a pace of 1.25 million and are 7.8 percent above a year ago. The median price was $147,600, which is 1.0 percent below September 2008.
South: Existing-home sales rose 9.0 percent to an annual level of 2.06 million in September and are 10.8 percent higher than September 2008. The median price was $153,500, down 7.6 percent from a year ago.
West: Existing-home sales surged 13.0 percent to an annual rate of 1.30 million in September and are 5.7 percent above a year ago. The median price in the West was $219,000, which is 15.0 percent below September 2008.

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Sundat Nov 1st, 2009

This past week the Senate passed a bill to Extend the $8000 tax credit but also added a tax credit of $6500 for those who have lived in their home for 5 years and then buy another home as their main residence.

This bill has to be passed by the House and approved  by the President.

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Fri Nov 6th, 2009

With the passage of the extension of the tax bill . . .

Nearing all -time low interest rates . . .

A great supply of homes to slect from . . .

The "Perfect Storm"  for buyers is here.

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By dialing the following number you can hear a pre-recorded message about each home currently on the market.

The sytem also has the capability of giving you the aproximate payments on the home based on your down payment.

All you will need in calling this number is the address or MLS identification #.

 Just call:

St Louis City & County: (314) 732-0656

Franklin County: (636) 234-9957