Important 2010 Real Estate Dates to Know!!

There are many changes affecting YOU in real estate for the first quarter of 2010.

I have listed a few important dates pertaining to DC real estate in 2010 as follows:

-February 1: FHA (Federal Housing Administration) removing the 90-day "flipping" restriction on foreclosures. This allows investors to renovate and sell foreclosures faster.

-March 31: Federal Reserve Program to purchase mortgage-backed securities to keep interest rates low will expire. This allows interest to rise to 6% before the end of the year.

-April 1: The first-time homebuyer tax credit will expire. For more information: http://www.jtrotman.com/ (See Video on Homepage)

-April 5: FHA requirements are changing policy to increase mortgage insurance premiums for sale transactions and refinancing. http://tinyurl.com/y8l5or8

NOW is the time to purchase a home if you are thinking about doing so in the next 3 years...Let me know if you have any questions.



Call me at 301-452-4767 with any real estate questions!

Supply/Demand Economics: Local DC Real Estate Market:

How does Supply/Demand Economics affect the DC Real Estate Market?

With the bombardment of information regarding interest rates, house pricing, tax incentives, foreclosures, short-sales, modifications, and refinancing...the basic message of Supply/Demand Economics can easily be overlooked as it plays out in the local DC real estate market.

DEMAND: The low interest rates and tax incentives have spurred an enormous increase in demand for housing, especially among first-time homebuyers during the past few months.

SUPPLY: Despite the record-breaking amount of housing inventory, there has been a halt in new construction over the past year. This indicates an upcoming shortage of housing within the next few years.

How does the DC Rental Market affect the housing market?

The rental market is an indicator of upcoming housing trends. We have seen a shortage of DC rentals over the past few months due to new people moving to DC and former owners renting properties.

NOW is the time for investment in real estate throughout the Washington DC metropolitan area.



Call me at 301-452-4767 with any real estate questions!

Is NOW a Good Time to Purchase Real Estate?

Why is NOW the best time ever to purchase real estate?

The answer is easy...YES.

But WHY?

If you have ever thought about purchasing real estate...now is the time because home prices are low and everything is working in your favor as a homebuyer. Whether you are a first-time homebuyer or someone looking to move-up to a bigger/better home, you are buying incentives for everyone, such as tax credit and low interest rates.

What is the most important for a homebuyer to know in 2010?

There are TWO (2) important dates for homebuyers to know in 2010 as follows:

March 31, 2010: The Federal Reserve program which is purchasing MBS to keep rates historically low will END. In other words, mortgage interest rates will be rising above 5% after the first-quarter of 2010.

April 1, 2010: The First-time homebuyer tax credit program which provides tax credits for new homebuyers and previous homeowners will END. In other words, there will no longer be incentives to purchase a home.

So the real question is...WHAT ARE YOU WAITING FOR?

Call me at 301-452-4767 with any real estate questions!

What are First-Time Homebuyers looking for?

First-time homebuyers in 2010 are looking for a variety of things...with low interest rates, reasonable pricing, large inventory of housing, and buyer incentives all working to help them...

These buyers are paying more attention to details such as location, square footage, floorplans, amenities, and convenience as the driving force to purchase!

The most common question is in regards to the tax implications of housing as an investment. As more first-time homebuyers are finally realizing their home to be a long-term investment ie. 3-5 years to yield a profit.

What are your thoughts?



Call me at 301-452-4767 with any real estate questions!

FHA plans to require borrowers to produce more cash for down payments

WHAT DOES THIS MEAN FOR YOU?
Simply...you will be required to increase the amount of up-front cash when using FHA loans. Up-front insurance premiums are increasing from 1.75% to 2.25% to be collected at the settlement table.

NEXT QUESTION: WHY IS THIS HAPPENING?
There are a couple of reasons why FHA is requiring the increase. First reason, is that the FHA is financially strapped with FHA currently backing 30% of all loans and 20% of refinanced loans. Second reason is the belief that buyers will be more responsible regarding their financial well-being in the home if they have more invested.

WHAT ELSE IS IMPORTANT IN THE UPCOMING FHA POLICY CHANGES?
FHA is reducing the amount that sellers are able to contribute to the buyer's closing costs and free upgrades. The new policy will reduce from 6% to 3% of the salesprice toward closing subsidy.

A MUST READ: Why are interest rising to 6% at the beginning of 2010?

"We're ending the year with mortgage interest rates practically even with their levels at the close of 2008. Mortgage finance giant Freddie Mac reported Thursday that average rates on 30-year fixed-rate loans hit 5.14 percent with 0.7 points this week.

That's up from last week's average of 5.05 percent and marked the fourth consecutive increase since rates bottomed out at a historic low (at least since Freddie started keeping track in 1971) of 4.71 percent in early December.

Rates also rose this week for 15-year mortgages, reaching an average of 4.54 percent with 0.7 points. Last week the rate was 4.45 percent.

But the rate fell slightly on 1-year adjustable-rate loans, which averaged 4.33 percent compared with 4.38 percent last week.

Mortgage rates were driven artificially low in 2009 by the Federal Reserve, which said it would buy as much as $1.25 trillion in mortgage-backed securities to stimulate the economy. That stimulus program is scheduled to end during the first quarter of the new year." (Washington Post)

READ MORE OF THE ARTICLE:
http://voices.washingtonpost.com/local-address/2009/12/30-year_mortgage_rates_rise_to.html

Call me at 301-452-4767 with any real estate questions!

Home-buying resolutions for the new year

This is one of the BEST articles I've read about getting ready to purchase a home.

EVERY FUTURE HOMEBUYER SHOULD READ THIS ARTICLE AS FOLLOWS:

"If you're planning to buy a house in 2010, here's my annual list of New Year's resolutions you should consider making.

-- Get your credit and finances in shape. If you want to take advantage of today's low interest rates, you need to have a credit score above 760. The higher, the better. If your credit score is below 620, you'll have trouble getting even an FHA loan.

-- Know how much you can afford to spend before you shop. Getting pre-approved has never been more important. You'll need documentation (W-2, tax returns, account statements, etc.), so get it together before you contact a lender. And shop around. Each lender sets its own fee schedule. Get the best deal by contacting four or five types of lenders.

-- Know the neighborhood, and be comfortable with it before you buy a home there. Houses are great, but neighborhoods that are littered with foreclosures may be unstable for years. Spend time in the neighborhood before falling in love with a particular house." (Washington Post)

READ THE REST OF THIS ARTICLE:
http://www.washingtonpost.com/wp-dyn/content/article/2009/12/17/AR2009121705023.html