Hello readers…I have been somewhat absent here in the past week due to a personal tragedy,  so my apologies. I will be returning the week of February 1st, but in the meantime, I wanted to give you a glimpse of the monthly Housing Newsletter for Rye from William Raveis Real Estate.  You can sign up to receive this free newsletter every month for ANY community covered by William Raveis,  simply by visiting raveis.com or the Market Update link above here on on my site.

Click here  for a peek of this month’s newsletter for Rye complete with recent stats and graphs, and see you next week.

If you are considering selling in the spring, you will want to act NOW to start making some improvements on your home. Here are the Top Ten Projects that add value to your home, according to HGTV’s Front Door:

• Top Kitchen Project: Upgrade Appliances to Stainless
• Top Bathroom Project: Refresh Fixtures
• Top Storage & Organization Project: Maximize Storage with a Closet Organization System
• Top Landscaping Project: Tidy your Lawn (as we get closer to spring, in our area)
• Top Outdoor Project: Add Outdoor Lighting (this is on my personal list…)
• Top Exterior Project: Repair Gutters ( gutters keep the roof, siding, etc. in good shape)
• Top Big Ticket Project: Finish your Basement (adds value & usable space to your home-YES)
• Top Outdoor Project: Build a Fence
• Top Energy Efficiency Project: Add Insulation
• Top Budget Friendly Project: Clean and Conquer Clutter ( a clean and clutter free home looks larger and more liveable and makes a good first impression- priceless!)

Also, I always think it is a good idea to have a “pre inspection” by a qualified home inspector or contractor to fix any lingering issues that could come up and give the impression that your home is well cared for and well maintained. Keep in mind too that paint is an inexpensive way to freshen your home right before you put it on the market. Remember, you don’t get a second chance to make a first impression!

Need more tips?  Check out the video, 10 Ways to Increase The Value of Your Home- On any Budget.

Rye

Harrison

 *Information per raveis.com

On my recent post, I detailed the recent modifications to the Home Buyer’s Credit that should have a positive effect on many sectors of the housing market. Still, two additional factors that will  continue to influence our local real estate in the coming year are 1) restrictions on mortgage lending implemented in the past year and 2) job losses.

To that effect, I am optimistic that JP Morgan Chase announced Tuesday that they plan to increase their home loan sales force by 60% by the end of 2010 in 23 states, including key cities such as New York and Chicago, according to a recent report from cnnmoney.com*.  This is significant as is the extension of conforming loan limits in our area to $729,750 through the end of 2010. The story on job losses is not as rosy, as we’re all aware, yet on a very informal note, I know of three people close to me that have accepted jobs within the past 2 weeks from positions that they had initially interviewed for over the summer!! Does that mean that companies are starting to feel it is time to take on some additional qualified new people in anticipation of a turnaround in the economy, as JP Morgan Chase is in their home loan department staffing?

Email me at judy.croughan@raveis.com for more clarification on these pertinent issues which affect the purchase OR sale of your home in the Rye, N.Y. area.  Interest rates remain low, and I post mortgage rates here weekly on the site to help you purchase your new home.

*JP Morgan plans to hire 1200

The Home Buyer’s Tax Credit has been extended and some of the provisions changed since my last post on the subject.  What are the details of the new law?  Changes include:

• Extension to April 30, 2010 contract signing, and the purchaser will have until July 1, 2010 to close.
• Includes current homeowners that have used the home sold as a principal residence consecutively for 5 of the past 8 years, as well as first time home buyers.
• Increased Income Limits to $125,000 single, $250,000 married.
• $800,000 limitation on cost of purchased home.
• Purchaser must attach documentation of purchase to tax return as an anti fraud provision.

Included here is the document table as provided by National Association of Realtors Government Affairs Division, please click below to read in full:

NAR ISSUE BRIEF HOMEBUYERS TAX CREDIT

First time home buyers still get 10% of the purchase price up to $8000 as a credit, but now existing homeowners can claim up to $ 6500 if they meet the criteria. While the increase in income limits opens the pool of potential buyers in the metro area, could the newly added $800,000 cap on sales price be a stumbling block for buyers in Rye, where the median sales price is consistently over the $1,000,000 mark (the median price of the 105 single family homes sold in Rye City since the beginning of this year is $1,350,000*). A time to take a second look at fixer uppers with expansion potential? 

I tend to agree with the opinion of a recent Forbes.com article that some of the biggest winners in this scenario could be empty nesters and retirees who are planning to trade down. After selling their current home, many retirees tend to pay cash (or a high percentage of cash) to finance their downsized homes, and therefore would not be hindered by some of the recent credit restrictions that are frustrating some new potential buyers. I also think the home credit can be a boost for local singles or recently divorced parents looking for a downsized home or townhouse in the same highly rated school district.

There are 173 homes currently available at $800,000 or under in our selling area right now**- perhaps some of them deserve a look? Let me know- I would be happy to help.

*Information per WPMLS, Sales RSCD & RNSD, zip 10580, 1-1-09 to 11-7-09.

**Homes currently listed for sale $800,000 & under as per WPMLS 11-7-09 in Rye, Harrison, Mamaroneck, Rye Brook, & Port Chester N.Y.

*source www.raveis.com

Nationally, home resales are up nearly 24% from the bottom in January, after jumping 9.4% in September, according to NAR (the National Association of Realtors).* There have been reports of buyers hurrying to make a deal as it is “now or never” to take advantage of this incentive. But can this program really take the credit?

The government sponsored First Time Homebuyer’s Tax Credit is set to expire on November 30th of this year.  Home builders and NAR are calling for an extension and/or expansion of the credit.  

Under the current guidelines, the credit phases out for individuals making $75,000 or couple earning $150,000,and there is a movement to extend the credit to at least next summer and raise the income limits to $150,000 per individual and $300,000 per couple. Many feel that the credit has helped the housing market show signs of a rebound.  Inventories have stopped rising, although levels remain high. While some suggest that the looming expiration of the credit in November is moving some home buyers off the fence, others wonder whether the credit has had a significant impact in the market at all, for the following reasons:

• Of the many homebuyers taking advantage of the credit, it is expected that many (some experts estimate as many as 4 out of 5) would have bought a house anyway.
• A Reuters article of Friday 10/23 suggests that “the direction of mortgage rates and general health of the job market will have the broadest, and most profound impact on the housing market” and that a better idea would have been to spend that money on qualifed loan modification counselors to stabilize the market by preventing foreclosures, rather than enticing marginal buyers to enter the market.
• The IRS is investigating a number of “criminal schemes” involving the credit. At a recent hearing, Bonnie Speddy, national director of AARP Tax Aide, a volunteer service for low income people, “suggested that abuse of the home purchase credit appeared to be widespread, in part because of relatively loose standards for claiming the credit (Taxpayers don’t have to file their claims as part of a real estate transaction and instead can file or amend their income tax returns to claim the credit.)

*Sources:

With Government Plan about to Expire, Home Resales Spike, The Journal News, 10/24/09, U.S. First Time Home Buyers: Worth the cost? Reuters 10/23/09, Home-Buyer Credit is Focus of Inquiry, Wall Street Journal 10/20/09, Home Builders’ Confidence Drops, WSJ 10/19/09, Cost Concerns Surface Over Home Buyer Tax Credit, WSJ 10/15/09.

Thank you to Pat MacCarthy for forwarding some of the information on the Home Buyers Tax Credit.

Watching the market? You can always check my site to get the latest real estate information including home sales, inventory charts, and graphs to clearly show you what is going on in the community.

Since 9-1-09 in Rye City, there have been:

• 15 Sales
• 10 Pending (signed contracts)
• 7 Homes in Conditional Contract (awaiting mortgage commitment)

For more information on Rye or any local community, click on the MARKET UPDATE link above for stats, graphs, and recent sale information!

*Information per WPLMS/raveis.com