According to a recent post in USA today by Christine Dugas, she quotes the Southern Oregon Multiple Listing Service statistics as home sale up 73% in 2009 from 2008.
I can say from my own experience that Medford and Ashland area homes sales were much better in 2009 than 2008, but 73% is a little bit of an exaggeration. Although, it may be technically true for the time period quoted in this post due to the parameters used in the calculation, I am predicting the overall percentage increase for 2009 compared to 2008 to be more in the 25 to 35% range. In a couple of weeks, I should be able to post the correct number.
Wednesday, December 30, 2009
Friday, December 11, 2009
Loan Modifications... Are they working?
According to: Associated Press, Alan Zibel (12/10/2009)
Only about 4 percent of the home owners who signed up for loan modifications—fewer than 31,000—had received them by the end of November, according to figures released Thursday by the U.S. Treasury Department.
Of the largest lenders, Bank of America Corp. had the worst results. It completed a total of 98 modifications. With 7,100, GMAC Mortgage completed the most.
Lenders have blamed their lack of success in part on the failure of borrowers to complete the paperwork necessary for the process.
The government says it will expedite its efforts to push through as many modifications as possible.
I have heard from a few people that their loans have been approved for modification, BUT the loan payment is more than the existing loan payment. In one case, $700 more than the homeowners current payment.
My theory is that the lenders are doing what the government asked them to do - give loan modifications....just not a loan mod a homeowner would want. Hence a win-win for the lender.
Only about 4 percent of the home owners who signed up for loan modifications—fewer than 31,000—had received them by the end of November, according to figures released Thursday by the U.S. Treasury Department.
Of the largest lenders, Bank of America Corp. had the worst results. It completed a total of 98 modifications. With 7,100, GMAC Mortgage completed the most.
Lenders have blamed their lack of success in part on the failure of borrowers to complete the paperwork necessary for the process.
The government says it will expedite its efforts to push through as many modifications as possible.
I have heard from a few people that their loans have been approved for modification, BUT the loan payment is more than the existing loan payment. In one case, $700 more than the homeowners current payment.
My theory is that the lenders are doing what the government asked them to do - give loan modifications....just not a loan mod a homeowner would want. Hence a win-win for the lender.
Thursday, December 3, 2009
Ashland and Medford Homes Sales Statistics
This chart shows the pending homes sales in Medford, Ashland, as part of the Jackson County housing market statistics provided by Southern Oregon Multiple Listing Service.
This chart shows the available homes for sale in the Medford, Ashland area as part of the Jackson County housing market statistics provided by Southern Oregon Multiple Listing Service.
Tuesday, November 24, 2009
Home sales increase in Ashland and Medford area
Driven by the first-time buyer tax credit, existing-home sales showed another big gain in October with a strong uptrend established over the past seven months, while inventories continue to decline, according to the National Association of Realtors®.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – surged 10.1 percent to a seasonally adjusted annual rate1 of 6.10 million units in October from a downwardly revised pace of 5.54 million in September, and are 23.5 percent above the 4.94 million-unit level in October 2008. Sales activity is at the highest pace since February 2007 when it hit 6.55 million.
See this POST for more information from the National Association of Realtors®.
Locally, existing home sales were up from 394 to 501 for the 3 month period ended Oct 31, 2009 when compared to the same time period in 2008.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – surged 10.1 percent to a seasonally adjusted annual rate1 of 6.10 million units in October from a downwardly revised pace of 5.54 million in September, and are 23.5 percent above the 4.94 million-unit level in October 2008. Sales activity is at the highest pace since February 2007 when it hit 6.55 million.
See this POST for more information from the National Association of Realtors®.
Locally, existing home sales were up from 394 to 501 for the 3 month period ended Oct 31, 2009 when compared to the same time period in 2008.
Tuesday, November 17, 2009
Medford and Ashland Oregon Home Loan Rates
According to recently published Medford and Ashland area Bank of America, these are Nov. 16th loan rates:
30 year fixed 4.75% .875 points 4.85% APR
FHA loan 4.85% .625 points 5.385% APR
Good interest rates! and with the first time home buyer credit - Good Deal!
Call Coldwell Banker at 541-482-5590 for more information.
30 year fixed 4.75% .875 points 4.85% APR
FHA loan 4.85% .625 points 5.385% APR
Good interest rates! and with the first time home buyer credit - Good Deal!
Call Coldwell Banker at 541-482-5590 for more information.
Friday, November 13, 2009
Ashland and Medford area Homes Sales Price to Increase in 2010?
Today I attend a conference regarding the housing economy. One of our speakers was Lawerence Yun, the chief economist for the National Association of Realtors, according to him, he predicts home sales to increase by at least 15% in 2010.
He also predicts home prices to appreciate by about 3 to 5% from where the prices are at today. This is good news for sellers who want to sell their home or property next year in the Ashland and Medford area. Three to 5 percent is a normal home appreciation since it matches normal inflation.
Right now the overall housing inventory is at about 8 months which is down from last year, but not quite to normal at a 6 months supply as he is predicting for 2010.
He also predicts home prices to appreciate by about 3 to 5% from where the prices are at today. This is good news for sellers who want to sell their home or property next year in the Ashland and Medford area. Three to 5 percent is a normal home appreciation since it matches normal inflation.
Right now the overall housing inventory is at about 8 months which is down from last year, but not quite to normal at a 6 months supply as he is predicting for 2010.
Wednesday, November 11, 2009
Short Sales in Ashland or Medford - Maybe not Such a Good Idea for a Seller
Agents, Banks, Lenders all talk about the risks for a Seller if they choose to sale their house short. Yes, there can be tax problems and lien release problems...plus the short sale may never even occur. Yes, a foreclosure is most of the time the better choice for most sellers, most of the time. Yes, most of us, know all of these reasons, and if you don't please refer to the many good sources of information out there on the risks.
What I want to warn Sellers about is the future lawsuit risks. Don't assume because you as a seller did not recieve any money, that you can not be sued later by a buyer. A buyer in most cases has at least one year to sue, and in some cases up to 7 or 10 years depending on the state and situations.
Why would a buyer sue you? Don't they know you were desperate, you didn't net any money at the closing, you are renting now, and your credit is ruined? Yes, they did at the time the property closed. Flash forward a few months and the new owners are not happy about something. Somethingthey think you did to them wrong (country western song potential here).... In their opinion it -Could be they think you did not leave the property in condition, they agreed to buy it in... Could be they think you did not disclose something to them about something....Or any number of reasons.....
At some point a buyer may want to take the seller to small claims court, arbitration, mediation, and/or general court to obtain a judgment against the seller. Once a judgment has been obtain they can collect. So as a seller, you may have to pay when you don't have money.
Remember this little dirty little secret when you consider the pro's and con's of a short sale vs. a foreclosure.
What I want to warn Sellers about is the future lawsuit risks. Don't assume because you as a seller did not recieve any money, that you can not be sued later by a buyer. A buyer in most cases has at least one year to sue, and in some cases up to 7 or 10 years depending on the state and situations.
Why would a buyer sue you? Don't they know you were desperate, you didn't net any money at the closing, you are renting now, and your credit is ruined? Yes, they did at the time the property closed. Flash forward a few months and the new owners are not happy about something. Somethingthey think you did to them wrong (country western song potential here).... In their opinion it -Could be they think you did not leave the property in condition, they agreed to buy it in... Could be they think you did not disclose something to them about something....Or any number of reasons.....
At some point a buyer may want to take the seller to small claims court, arbitration, mediation, and/or general court to obtain a judgment against the seller. Once a judgment has been obtain they can collect. So as a seller, you may have to pay when you don't have money.
Remember this little dirty little secret when you consider the pro's and con's of a short sale vs. a foreclosure.
More on the Home Buyers Tax Credit from an Accountant in Ashland Oregon
Dear Client:
On November 6, the President signed into law H.R. 3548, the ''Worker, Homeownership, and Business Assistance Act of 2009.'' The new law extends and generally liberalizes the tax credit for first-time homebuyers, making it a much more flexible tax-saving tool. It also includes some crackdowns designed to prevent abuse of the credit. These important changes could it make it easier for you or someone in your family to buy a home. And because the changes generally aid buyers and aim to improve residential real estate markets nationwide, they also could make it easier for you or someone in your family to sell a home. This Client Letter fills you in on the details you need to know about the first-time homebuyer credit.
Homebuyer credit basics. Before the new law was enacted, the homebuyer credit was only available for qualifying first-time home purchases after April 8, 2008, and before December 1, 2009. The top credit for homes bought in 2009 is $8,000 ($4,000 for a married individual filing separately) or 10% of the residence's purchase price, whichever is less. Only the purchase of a main home located in the U.S. qualifies. Vacation homes and rental properties are not eligible. The homebuyer credit reduces one's tax liability on a dollar-for-dollar basis, and if the credit is more than the tax you owe, the difference is paid to you as a tax refund. For homes bought after Dec. 31, 2008, the homebuyer credit is recaptured (i.e., paid back to the IRS) if a person disposes of the home (or stops using it as a principal residence) within 36 months from the date of purchase.
Before the new law, the first-time homebuyer credit phased out for individual taxpayers with modified adjusted gross income (AGI) between $75,000 and $95,000 ($150,000 and $170,000 for joint filers) for the year of purchase.
Your guide to the revised homebuyer credit. The new law makes four important changes to the homebuyer credit:
(1) New lease on life for the homebuyer credit. The homebuyer credit is extended to apply to a principal residence bought before May 1, 2010. The homebuyer credit also applies to a principal residence bought before July 1, 2010 by a person who enters into a written binding contract before May 1, 2010, to close on the purchase of the principal residence before July 1, 2010. In general, a home is considered bought for credit purposes when the closing takes place. So the extra two-months (May and June of 2010) helps buyers who find a home they like but can't close on it before May 1, 2010. They can go to contract on the home before May 1, 2010, close on it before July 1, 2010, and get the homebuyer credit (if they otherwise qualify). Note that certain service members on qualified official extended duty service outside of the U.S. get an extra year to buy a qualifying home and get the credit; they also can avoid the recapture rules under certain circumstances.
(2) The homebuyer credit may be claimed by existing homeowners who are “long-time residents.” For purchases after November 6, 2009, you can claim the homebuyer credit if you (and, if married, your spouse) maintained the same principal residence for any 5-consecutive year period during the 8-years ending on the date that you buy the subsequent principal residence. For example, if you and your spouse are empty nesters who have lived in your suburban home for the past ten years, you are potentially eligible for the credit if you “move down” and buy a smaller townhome. There's no requirement for your current home to be sold in order to qualify for a homebuyer credit on the replacement principal residence. Thus, the replacement residence can be bought to beat the new deadlines (explained above) before the old home is sold. For that matter, you can hold on to your prior principal residence in the hope of achieving a better selling price later on.
The maximum allowable homebuyer credit for qualifying existing homeowners is $6,500 ($3,250 for a married individual filing separately), or 10% of the purchase price of the subsequent principal residence, whichever is less.
(3) The homebuyer credit is available to higher income taxpayers. For purchases after November 6, 2009, the homebuyer credit phases out over much higher modified AGI levels, making the credit available to a much bigger pool of buyers. For individuals, the phaseout range is between $125,000 and $145,000, and for those filing a joint return, it's between $225,000 and $245,000.
(4) There's a new home-price limit for the homebuyer credit. For purchases after Nov. 6, 2009, the homebuyer credit cannot be claimed for a home if its purchase price exceeds $800,000. It's important to note that there is no phaseout mechanism. A purchase price that exceeds the $800,000 threshold by even a single dollar will cause the loss of the entire credit.
The new purchase price limitation applies whether you are buying a first-time principal residence or are a qualifying existing homeowner purchasing a replacement principal residence.
Other homebuyer credit changes. The new law includes a number of new anti-abuse rules to prevent taxpayers from claiming the homebuyer credit even though they don't qualify for it. The most important of these are as follows:
... Beginning with the 2010 tax return, the homebuyer credit can't be claimed unless the taxpayer attaches to the return a properly executed copy of the settlement statement used to complete the purchase of the qualifying residence.
... For purchases after Nov. 6, 2009, the homebuyer credit can't be claimed unless the taxpayer has attained 18 years of age as of the date of purchase (a married person is treated as meeting the age requirement if he or his spouse meets the age requirement).
... For purchases after Nov. 6, 2009, the homebuyer credit can't be claimed by a taxpayer if he can be claimed as a dependent by another taxpayer for the tax year of purchase. It also can't be claimed for a home bought from a person related to the buyer or the spouse of the buyer, if married.
... Beginning with 2009 returns, the new law makes it easier for the IRS to go after questionable homebuyer credit claims without initiating a full-scale audit.
What hasn't changed. The tax law still gives you the extraordinary opportunity to get your hands on homebuyer credit cash without waiting to file your tax return for the year in which you buy the qualifying principal residence. Thus, if you buy a qualifying principal residence in 2009 you can treat the purchase as having taken place this past December 31, file an amended return for 2008 claiming the credit for that year, and get your homebuyer credit cash relatively quickly via a tax refund. Similarly, you can treat a qualifying principal residence bought in 2010 (before the new deadlines) as having taken place on December 31, 2009, and file an original or amended return for 2009 claiming the credit for that year.
What also hasn't changed is the need for getting expert tax advice in negotiating through the twists and turns of the new beefed-up homebuyer credit. Please call us today for details on how the homebuyer credit can help you or your family members.
--
The advice we provide in this communication is not intended or written to be used, and cannot be used by you or any other person or entity for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or any applicable state or local tax law.
MARTIN H. LEVINE
Certified Public Accountant
Come visit us @ www.mhlcpa.com
On November 6, the President signed into law H.R. 3548, the ''Worker, Homeownership, and Business Assistance Act of 2009.'' The new law extends and generally liberalizes the tax credit for first-time homebuyers, making it a much more flexible tax-saving tool. It also includes some crackdowns designed to prevent abuse of the credit. These important changes could it make it easier for you or someone in your family to buy a home. And because the changes generally aid buyers and aim to improve residential real estate markets nationwide, they also could make it easier for you or someone in your family to sell a home. This Client Letter fills you in on the details you need to know about the first-time homebuyer credit.
Homebuyer credit basics. Before the new law was enacted, the homebuyer credit was only available for qualifying first-time home purchases after April 8, 2008, and before December 1, 2009. The top credit for homes bought in 2009 is $8,000 ($4,000 for a married individual filing separately) or 10% of the residence's purchase price, whichever is less. Only the purchase of a main home located in the U.S. qualifies. Vacation homes and rental properties are not eligible. The homebuyer credit reduces one's tax liability on a dollar-for-dollar basis, and if the credit is more than the tax you owe, the difference is paid to you as a tax refund. For homes bought after Dec. 31, 2008, the homebuyer credit is recaptured (i.e., paid back to the IRS) if a person disposes of the home (or stops using it as a principal residence) within 36 months from the date of purchase.
Before the new law, the first-time homebuyer credit phased out for individual taxpayers with modified adjusted gross income (AGI) between $75,000 and $95,000 ($150,000 and $170,000 for joint filers) for the year of purchase.
Your guide to the revised homebuyer credit. The new law makes four important changes to the homebuyer credit:
(1) New lease on life for the homebuyer credit. The homebuyer credit is extended to apply to a principal residence bought before May 1, 2010. The homebuyer credit also applies to a principal residence bought before July 1, 2010 by a person who enters into a written binding contract before May 1, 2010, to close on the purchase of the principal residence before July 1, 2010. In general, a home is considered bought for credit purposes when the closing takes place. So the extra two-months (May and June of 2010) helps buyers who find a home they like but can't close on it before May 1, 2010. They can go to contract on the home before May 1, 2010, close on it before July 1, 2010, and get the homebuyer credit (if they otherwise qualify). Note that certain service members on qualified official extended duty service outside of the U.S. get an extra year to buy a qualifying home and get the credit; they also can avoid the recapture rules under certain circumstances.
(2) The homebuyer credit may be claimed by existing homeowners who are “long-time residents.” For purchases after November 6, 2009, you can claim the homebuyer credit if you (and, if married, your spouse) maintained the same principal residence for any 5-consecutive year period during the 8-years ending on the date that you buy the subsequent principal residence. For example, if you and your spouse are empty nesters who have lived in your suburban home for the past ten years, you are potentially eligible for the credit if you “move down” and buy a smaller townhome. There's no requirement for your current home to be sold in order to qualify for a homebuyer credit on the replacement principal residence. Thus, the replacement residence can be bought to beat the new deadlines (explained above) before the old home is sold. For that matter, you can hold on to your prior principal residence in the hope of achieving a better selling price later on.
The maximum allowable homebuyer credit for qualifying existing homeowners is $6,500 ($3,250 for a married individual filing separately), or 10% of the purchase price of the subsequent principal residence, whichever is less.
(3) The homebuyer credit is available to higher income taxpayers. For purchases after November 6, 2009, the homebuyer credit phases out over much higher modified AGI levels, making the credit available to a much bigger pool of buyers. For individuals, the phaseout range is between $125,000 and $145,000, and for those filing a joint return, it's between $225,000 and $245,000.
(4) There's a new home-price limit for the homebuyer credit. For purchases after Nov. 6, 2009, the homebuyer credit cannot be claimed for a home if its purchase price exceeds $800,000. It's important to note that there is no phaseout mechanism. A purchase price that exceeds the $800,000 threshold by even a single dollar will cause the loss of the entire credit.
The new purchase price limitation applies whether you are buying a first-time principal residence or are a qualifying existing homeowner purchasing a replacement principal residence.
Other homebuyer credit changes. The new law includes a number of new anti-abuse rules to prevent taxpayers from claiming the homebuyer credit even though they don't qualify for it. The most important of these are as follows:
... Beginning with the 2010 tax return, the homebuyer credit can't be claimed unless the taxpayer attaches to the return a properly executed copy of the settlement statement used to complete the purchase of the qualifying residence.
... For purchases after Nov. 6, 2009, the homebuyer credit can't be claimed unless the taxpayer has attained 18 years of age as of the date of purchase (a married person is treated as meeting the age requirement if he or his spouse meets the age requirement).
... For purchases after Nov. 6, 2009, the homebuyer credit can't be claimed by a taxpayer if he can be claimed as a dependent by another taxpayer for the tax year of purchase. It also can't be claimed for a home bought from a person related to the buyer or the spouse of the buyer, if married.
... Beginning with 2009 returns, the new law makes it easier for the IRS to go after questionable homebuyer credit claims without initiating a full-scale audit.
What hasn't changed. The tax law still gives you the extraordinary opportunity to get your hands on homebuyer credit cash without waiting to file your tax return for the year in which you buy the qualifying principal residence. Thus, if you buy a qualifying principal residence in 2009 you can treat the purchase as having taken place this past December 31, file an amended return for 2008 claiming the credit for that year, and get your homebuyer credit cash relatively quickly via a tax refund. Similarly, you can treat a qualifying principal residence bought in 2010 (before the new deadlines) as having taken place on December 31, 2009, and file an original or amended return for 2009 claiming the credit for that year.
What also hasn't changed is the need for getting expert tax advice in negotiating through the twists and turns of the new beefed-up homebuyer credit. Please call us today for details on how the homebuyer credit can help you or your family members.
--
The advice we provide in this communication is not intended or written to be used, and cannot be used by you or any other person or entity for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or any applicable state or local tax law.
MARTIN H. LEVINE
Certified Public Accountant
Come visit us @ www.mhlcpa.com
Monday, November 9, 2009
Homebuyer Tax Credit Changes for 2009-2010 - Good for Ashland and Medford Home Sales
Home sales in Ashland and Medford area should remain steady now that Congress has passed new legislation that:
Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.
To see a comparison chart CLICK HERE.
For the Q and A on the Extended Home Buyer Tax Credit from the National Association of Realtors click here.
Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.
To see a comparison chart CLICK HERE.
For the Q and A on the Extended Home Buyer Tax Credit from the National Association of Realtors click here.
Monday, November 2, 2009
Rebound for Existing Home sales in Ashland and Medford area?
For more information, contact: Walter Molony 202/383-1177 wmolony@realtors.org
According to National Association of Realtors:
Big Rebound in Existing-Home Sales Shows First-Time Buyer Momentum
Washington, October 23, 2009
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.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – jumped 9.4 percent to a seasonally adjusted annual rate1 of 5.57 million units in September from a level of 5.09 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 over 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. “We’re getting early indications of price stabilization, but we need a steady supply of qualified buyers to meaningfully bring inventories down and return us to a period of normal, steady price growth and to fully remove consumer fears, which would then revive the broader economy. Without a firm foundation for middle-class wealth recovery, the post-recession economic growth likely will be one of the weakest in U.S. history.”
Early information from a large annual consumer study to be released November 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, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, 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,” McMillan said.
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 supply2 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.
The national median existing-home price3 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 21.2 percent above the 561,000-unit pace a year ago. The median existing condo price4 was $175,100 in September, down 11.7 percent from September 2008.
Regionally, existing-home sales in the Northeast 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 in the Northeast was $234,700, down 7.0 percent from a year ago.
Existing-home sales in the Midwest 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 in the Midwest was $147,600, which is 1.0 percent below September 2008.
In the 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 in the South was $153,500, down 7.6 percent from a year ago.
Existing-home sales in the West 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.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
# # #
NOTE: NAR also reports monthly comparisons of existing single-family home sales and median prices for select metropolitan statistical areas, and is posted with other tables at: http://www.realtor.org/research/research/ehsdata. For information on areas not included in the report, please contact the local association of Realtors®.
1The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 to 90 percent of total home sales, are based on a much larger sample – more than 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.
Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.
2Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982.
3The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.
4Because there is a concentration of condos in high-cost metro areas, the national median condo price generally is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.
Existing-home sales for October will be released November 23. The next Pending Home Sales Index is scheduled for November 2. NAR’s quarterly report on metro area home prices and state home sales is on November 10; release times are 10 a.m. EST.
According to National Association of Realtors:
Big Rebound in Existing-Home Sales Shows First-Time Buyer Momentum
Washington, October 23, 2009
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.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – jumped 9.4 percent to a seasonally adjusted annual rate1 of 5.57 million units in September from a level of 5.09 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 over 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. “We’re getting early indications of price stabilization, but we need a steady supply of qualified buyers to meaningfully bring inventories down and return us to a period of normal, steady price growth and to fully remove consumer fears, which would then revive the broader economy. Without a firm foundation for middle-class wealth recovery, the post-recession economic growth likely will be one of the weakest in U.S. history.”
Early information from a large annual consumer study to be released November 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, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, 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,” McMillan said.
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 supply2 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.
The national median existing-home price3 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 21.2 percent above the 561,000-unit pace a year ago. The median existing condo price4 was $175,100 in September, down 11.7 percent from September 2008.
Regionally, existing-home sales in the Northeast 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 in the Northeast was $234,700, down 7.0 percent from a year ago.
Existing-home sales in the Midwest 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 in the Midwest was $147,600, which is 1.0 percent below September 2008.
In the 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 in the South was $153,500, down 7.6 percent from a year ago.
Existing-home sales in the West 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.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
# # #
NOTE: NAR also reports monthly comparisons of existing single-family home sales and median prices for select metropolitan statistical areas, and is posted with other tables at: http://www.realtor.org/research/research/ehsdata. For information on areas not included in the report, please contact the local association of Realtors®.
1The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 to 90 percent of total home sales, are based on a much larger sample – more than 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.
Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.
2Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982.
3The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.
4Because there is a concentration of condos in high-cost metro areas, the national median condo price generally is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.
Existing-home sales for October will be released November 23. The next Pending Home Sales Index is scheduled for November 2. NAR’s quarterly report on metro area home prices and state home sales is on November 10; release times are 10 a.m. EST.
Friday, October 30, 2009
Home Buyer Credit extension is almost here
In case you did not already know....
Members of the Senate have tentatively agreed to extend the existing $8,000 tax credit for first-time home buyers and also offer a new $6,500 credit for existing homeowners who have lived in their current residence for a consecutive five-year period in the past eight years.
Home buyers must be under contract by April 30, 2010, and close before July 1.
We should have a signed agreement next week so stay tuned....
Members of the Senate have tentatively agreed to extend the existing $8,000 tax credit for first-time home buyers and also offer a new $6,500 credit for existing homeowners who have lived in their current residence for a consecutive five-year period in the past eight years.
Home buyers must be under contract by April 30, 2010, and close before July 1.
We should have a signed agreement next week so stay tuned....
Monday, October 19, 2009
Tuesday, October 13, 2009
Sunday, October 4, 2009
Slow Growth of Homes and Real Estate Sales in Ashland?
According to recent article by Los Angeles Times, Peter Y. Hong (9/27/09)
"Over the next few decades, "We can expect a gradual rise [in home values], but not the bonanza we've become accustomed to between the end of World War II and 2006, and especially the last 20 years," says Robert Reich, public policy professor at UC Berkeley and U.S. Labor secretary in the Clinton administration.
The reasons cited for the change include the absence of pent-up demand that followed the Great Depression and World War II and the aging of the baby boomers who carried that housing demand forward, says housing consultant Thomas Lawler."
This opinion contradicts the National Association of Realtors general housing outlook which cites the increase in population due to birth rates and immigration are creating pent-up demand which is part of the recent surge in buyer activity.
"Over the next few decades, "We can expect a gradual rise [in home values], but not the bonanza we've become accustomed to between the end of World War II and 2006, and especially the last 20 years," says Robert Reich, public policy professor at UC Berkeley and U.S. Labor secretary in the Clinton administration.
The reasons cited for the change include the absence of pent-up demand that followed the Great Depression and World War II and the aging of the baby boomers who carried that housing demand forward, says housing consultant Thomas Lawler."
This opinion contradicts the National Association of Realtors general housing outlook which cites the increase in population due to birth rates and immigration are creating pent-up demand which is part of the recent surge in buyer activity.
Thursday, September 17, 2009
Real Estate in Ashland & Medford is going to Improve?
According to L. Yun, NAR's chief economist, "summer is not the only thing that has ended. The world-wide economic recession is also essentially over. Led by countries such as Brazil, India, and, in particular, China, the economies of the world are digging themselves out of that recessionary ditch."
The most important factor for those of you trying to "figure out" the real estate market locally in the Ashland and Medford area this means the number of home sales is going up (at least more than last year), inventory has slowly, but surely gone down in the last year, and home prices don't seem to be going down (at least not under $350k). In fact, in the bottom end of the price range, I have seen price wars and an increase in the property prices. Good news for those buyers who were not afraid to buy about 8 months ago.
The most important factor for those of you trying to "figure out" the real estate market locally in the Ashland and Medford area this means the number of home sales is going up (at least more than last year), inventory has slowly, but surely gone down in the last year, and home prices don't seem to be going down (at least not under $350k). In fact, in the bottom end of the price range, I have seen price wars and an increase in the property prices. Good news for those buyers who were not afraid to buy about 8 months ago.
Tuesday, September 8, 2009
Ashland and Medford Home & Real Estates Sales Information
The Southern Oregon Multiple Listing service just released their July 1 to August 31 2009 statistics. Below are some of the highlights
Comparing the July 1 to Aug 31 2008 to the same time period in 2009, Overall the number of sales increased from 405 to 514 in Jackson County. In Ashland the number decreased from 69 to 65 sales, and in East Medford the number of sales increased from 122 to 138. West, SW, and NW Medford had an increase in the number of home sales from 67 to 125 sales.
The median sales price for Jackson County went from $255k to $185k, due mostly to the number of bank owned property sales under $100K. Inventory is down countywide from 2684to 2284 or 14%.
For more information go to the JacStats button on our website at www.ashlandprowest.com
Comparing the July 1 to Aug 31 2008 to the same time period in 2009, Overall the number of sales increased from 405 to 514 in Jackson County. In Ashland the number decreased from 69 to 65 sales, and in East Medford the number of sales increased from 122 to 138. West, SW, and NW Medford had an increase in the number of home sales from 67 to 125 sales.
The median sales price for Jackson County went from $255k to $185k, due mostly to the number of bank owned property sales under $100K. Inventory is down countywide from 2684to 2284 or 14%.
For more information go to the JacStats button on our website at www.ashlandprowest.com
Tuesday, September 1, 2009
Ashland and Medford Homes and Real Estate Sales Statistics
Below are some of the recent statistics posted by the Southern Oregon Multiple Listing Service (Ashland & Medford Oregon area). These statistics compare July 2008 to July 2009:
The Months Supply of Inventory in all areas have gone down. Overall Jackson County's supply has gone down from over 14 months supply to 8 months supply. The number os homes for sale in Ashland has gone down from over 18 months to about 10 months supply. The number of homes for sale in East Medford has gone from 14.5 months to 8 months, and West Medford from 9 to 5 months. Good news for sellers.
Pending home sales in Ashland have gone up from 23 to 28 in this time period, East Medford declined from 47 to 46, West Medford increase from 27 to 52!!, and the county overall saw an increase from 155 to 201 sales which is approx. a 30% increase in the number of sales.
The Months Supply of Inventory in all areas have gone down. Overall Jackson County's supply has gone down from over 14 months supply to 8 months supply. The number os homes for sale in Ashland has gone down from over 18 months to about 10 months supply. The number of homes for sale in East Medford has gone from 14.5 months to 8 months, and West Medford from 9 to 5 months. Good news for sellers.
Pending home sales in Ashland have gone up from 23 to 28 in this time period, East Medford declined from 47 to 46, West Medford increase from 27 to 52!!, and the county overall saw an increase from 155 to 201 sales which is approx. a 30% increase in the number of sales.
Friday, August 21, 2009
Housing Affordability Near Highest Level in 18 Years
According to an article in RIS Media housing affordability continues to be near highest level in 18 Years. RIS media says "The HOI showed that 72.3% of all new and existing homes sold in the second quarter of 2009 were affordable to families earning the national median income of $64,000, down only slightly from the record-high 72.5% during the previous quarter and up from 55.0% during the second quarter of 2008."
Most experts equate the affordability to be related to low interest rates and the first time home buyer's credit of $8000. I personally believe all of this is true based on my experience as an agent in Ashland and Medford area. In some cases, I am seeing home prices at their 2001 or 2002 price level.
Although inventory has come down in the last year, there are still many choices for buyer.
Read more: http://rismedia.com/2009-08-20/housing-affordability-continues-to-hover-near-highest-level-in-18-years/#ixzz0OqIwg4Hi
Most experts equate the affordability to be related to low interest rates and the first time home buyer's credit of $8000. I personally believe all of this is true based on my experience as an agent in Ashland and Medford area. In some cases, I am seeing home prices at their 2001 or 2002 price level.
Although inventory has come down in the last year, there are still many choices for buyer.
Read more: http://rismedia.com/2009-08-20/housing-affordability-continues-to-hover-near-highest-level-in-18-years/#ixzz0OqIwg4Hi
Wednesday, August 19, 2009
Boom Times Ahead for Ashland Real Estate?
A recent Internet posting by RIS Media stated that "homeowners are more optimistic than ever about the future values of their homes, with 81% of homeowners believing their own homes’ values will not decline in the next six months- the highest percentage on record since the first quarterly Homeowner Confidence Survey, which was fielded in the second quarter of 2008. Meanwhile, only 19% of homeowners believe their own home will decrease in value over the next six months."
It is good news for all of us that the general public is no so down in the dumps as they were last year, but I not sure I fully agree. Homes are selling now because interest rates is great and the $8000 tax credit, but the credit will be gone soon and interest are sure to rise some.
I think that people are confident enough to be buying houses, but that prices will remain close to what there are now for the next year, and we won't see significant price increases for a few years.
Read more: http://rismedia.com/2009-08-18/optimism-grips-homeowners-81-think-homes-value-will-increase-or-stay-same-in-next-6-months/#ixzz0OeGrOcRi
It is good news for all of us that the general public is no so down in the dumps as they were last year, but I not sure I fully agree. Homes are selling now because interest rates is great and the $8000 tax credit, but the credit will be gone soon and interest are sure to rise some.
I think that people are confident enough to be buying houses, but that prices will remain close to what there are now for the next year, and we won't see significant price increases for a few years.
Read more: http://rismedia.com/2009-08-18/optimism-grips-homeowners-81-think-homes-value-will-increase-or-stay-same-in-next-6-months/#ixzz0OeGrOcRi
Saturday, August 15, 2009
Time is Running out - Buy a Home in Ashland, Now?
A friendly reminder to all of you first time home buyers....The last day to purchase a house a get the first time home buyer credit of $8000 is November 30, 2009. That might seem like you still have time, but if you do the math, you will see it is not.
In order to close by Nov 30, you need to be in a signed contract no later than Oct. 15th, but that assumes there are no glitches or big repairs, and you actually close and buy the home. So really that means you need to be in contract by Oct 1st so if that house does not work out or there is a glitch, you can still make the Nov 30th dare.
But...that means all the other buyers are thinking the same thing and they will be rushing around to get a property in contract by Oct 1st so that really means you need to be in contract by Sept 15th.
Okay....Now you can see what I mean, time is running out. You really have less than one month. Call us today! 482-5590.
Monday, August 10, 2009
It is not a Buyer's Market any more in Ashland
If you are not active in the real estate market, you might have missed something kind of big. It is not a buyer's market if you are trying to buy a home under $200,000. It is rare to find a home that has not gotten multiple offers or sold immediately if priced right.
We have about a 4 1/2 months supply of homes on the market in the Ashland, Medford area. A six months supply is an average market. More than that is a seller's market and less than that a buyer's market. This is the average. If you are a buyer right now in this price range, you already know this. How many homes have you written an offer on and did not "win"?
Also I am finding that many time the offer is for over the listed price!! It is almost like 2004-2005 in this price range.
Sorry to say, though, once you get over $300,000, this all changes....and if you are over $500,000...Well it is not much different than 2008.
The time to buy was 6 months ago. Sorry all of you that were waiting for the bottom. You missed it if you were looking under $200,000.
We have about a 4 1/2 months supply of homes on the market in the Ashland, Medford area. A six months supply is an average market. More than that is a seller's market and less than that a buyer's market. This is the average. If you are a buyer right now in this price range, you already know this. How many homes have you written an offer on and did not "win"?
Also I am finding that many time the offer is for over the listed price!! It is almost like 2004-2005 in this price range.
Sorry to say, though, once you get over $300,000, this all changes....and if you are over $500,000...Well it is not much different than 2008.
The time to buy was 6 months ago. Sorry all of you that were waiting for the bottom. You missed it if you were looking under $200,000.
Monday, August 3, 2009
A home in Ashland Oregon for under $230,000? Yes, it's true
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tuesday, July 21, 2009
One of Ashland Coldwell Banker's Agents named Realtor of the Year
Krista Bolf, one of our brokers, was recently named by her peers as Realtor of the Year. You can view the Mail Tribune article here. Ashland Coldwell Banker has 7 brokers with an average of over 11 years in the business. This office values their customers and ethics. Stop by today and say hi.
Sunday, July 12, 2009
Ashland and Medford Home Sales for first 1/2 of 2009
Existing home sales are up from 613 to 749 when you compare the first half of 2008 to first half of 2009. New home sales were down from 124 to 53, but this is mainly due to the lack of new homes being built.
Total number of sale for both existing home sales in the Ashland/Medford metro area is up from 737 to 802.
For more information contact info@ashlandprowest.com
Ashland Home Sales Looking Up!
This chart shows the number of home sales in Ashland in the last 13 months. Sales for the last 3 months of 2009 (Apr-Jun) compared to the same time period in 2008 have increased, but this chart does not show this information.
Sales prices remain down, but the number of sales is up!
Subscribe to:
Posts (Atom)