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

Everyone who knows me well knows that I love summer.  I’m happiest at the beach and have a soft spot for the Hamptons out on the eastern end of Long Island, where I met my husband 22 years ago on a sunny July 4th weekend.  I was thinking of this as I spent last weekend in Westhampton Beach attending the wedding of a great couple, who are close friends and clients. Even the rain couldn’t put a damper on festivities under a large tent in the private backyard of my friends’ beach home.

The next morning after breakfast, we walked up Main St. in Westhampton checking out the sidewalk sales of the local shops.  As I sometimes do when I’m away from home, I stopped into a local realty office on the street and asked about business this past summer, to which the broker replied, “Interestingly, it was our worst year, but our best month.”

Hmmm…What does that mean?  Could it be that, as Bill Raveis talked about in the video featured on my previous post, that the combination of low interest rates and significantly reduced prices make this an attractive time to buy relative to other recessionary periods, now that the summer crowds have gone? There are fewer buyers, thus less competition for attractive properties in areas that historically have held their value…like Westhampton, and, of course, Rye. Over the long term, home ownership still pays.

It is worth thinking about if you are serious about buying. Time will tell, but in the meantime I am going to enjoy the sunnier weather following “the summer that wasn’t”.  I picked up a current copy of the infamous Dan’s Papers while out east, where I read this amusing quote by CNN contributor and Southampton year round resident Robert Zimmerman ,… “Let’s get the record straight, after having the second coldest summer in 140 years, remember that October is the new August. The best part of the summer is just beginning.”

In my personal opinion, one of the most difficult periods of this current recession, from a local real estate perspective, was the stagnation we experienced earlier in the winter months of this year, with inventory rising and buyers on hold.  Although activity has picked up quite a bit since that point, market conditions- and the media- have ensured that current buyer clients have no shortage of reasons to site for sitting on the sidelines!  Many are renting in the greater N.Y.C. area and actively watching the local real estate market, but waiting for some sign of a “bottom”….

That being the case, I find this current video by Bill Raveis, President and CEO of William Raveis Real Estate, very timely and informative. Mr. Raveis explains in easy to understand language how this recession differs from other recessionary periods he has seen during his 35+ years of experience in the Real Estate Industry, and details how you can best take advantage of opportunities in this market.

Take A Look here at the Video- How To Buy a House in a Recession          

Please take a moment also to see how simple it is to run current local housing statistics on raveis.com for Rye or any local community you are interested in. Call or email me anytime for information on Rye area Real Estate.

• The story behind William Raveis Real Estate is a powerful one. The 6th largest independent brokerage in the country, they have experienced phenomenal growth over the past 35 years. They currently have #1 market share in the prominent Fairfield County, CT. communities.
• They began expanding their business outside of Connecticut only six years ago with their first office in Massachusetts, where they were ranked as the largest independent residential real estate company in that state in 2008.
• The Rye/Harrison Offices represent their first step into their expansion into New York, and plans are to develop an office network throughout Westchester County to Manhattan.
• Their award winning website, raveis.com, offers immediate live assistance, “real time” graphs for local housing data, mapping and mortgage features,and more in addition to MLS search.