August Home Sales

AUGUST BRINGS SINGLE-DIGIT DECREASE IN CLOSINGS,

THIRD MONTH OF 2,000+ PROPERTIES SOLD

There were 2,064 home closings reported for the month of August, according to figures provided by the Greater Nashville Association of REALTORS®. This represents an 9.2 percent decrease from the 2,273 closings reported for the same period last year. Year-to-date closings for the Greater Nashville area have decreased 23.8 percent. There were 13,518 closings, compared with 17,758 closings reported through August of last year. “The number of closings has stabilized in recent months and it is encouraging that we have exceeded 2,000 sales for the third consecutive month,” said GNAR President Mike Nichols. “The median price has decreased, primarily as a result of short sales and foreclosures, which makes the current real estate market a good one for investors. It is also reasonable to expect that some first-time buyers will act soon to take advantage of the $8,000 tax credit before it runs out December 1, 2009.” A comparison of sales by category for August is: Closings Residential Condominium Multi-family Farms/Land/Lots August 2008 2,273 1,883 289 29 72 August 2009 2,064 1,710 265 11 78 There were 2,181 sales pending at the end of August, compared with 2,149 pending sales at this time last year. The average number of days on the market for a single-family home was 88 days. The median residential price for a single-family home during August was $160,000, and for a condominium it was $147,900. This compares with last year's median residential and condominium prices of $177,500 and $162,500, respectively. Inventory at the end of August was 24,404, down from 24,975 in August 2008. The current inventory of properties by category, compared to last year, is: Inventory Residential Condominium Multi-family Farms/Land/Lots August 2008 24,975 15,636 2,575 395 6,369 August 2009 24,404 14,828 2,490 441 6,645 “Residential and condominium inventory is lower than last year, but there is still an abundant selection of quality properties all across Greater Nashville. The inventory of farms, land and lots remains high and will likely stay that way until homebuilding activity increases,” said Nichols. “Those looking to take advantage of the Federal Housing Tax Credit, if not already looking, should immediately start the process of finding a home. Buying a home is rightfully a lengthy process and to take advantage of the $8,000 credit, the property must be purchased by December 1.” The Greater Nashville Association of Realtors® is one of Middle Tennessee's largest professional trade associations and serves as the primary voice for Nashville-area property owners and real estate professionals. REALTOR® is a registered trademark which may be used only by real estate professionals who are members of the National Association of REALTORS® and subscribe to its strict Code of Ethics.

©Copyright 2007-2011 GNAR.

Open House in Woodland Pointe

I would like to invite everyone to visit our open house at 416 Stone Chimney Ct on August 23 from 2:00 PM to 4:00 PM. It is a wonderful 3 bedroom, 2.5 baths, hardwoods, updated kitchen, and much much more...come by this Sunday to see!

July Home Sales

HOME SALES TOP 2,000 FOR SECOND CONSECUTIVE MONTH

There were 2,214 home closings reported for the month of July, according to figures provided by the Greater Nashville Association of REALTORS®. This represents an 11 percent decrease from the 2,488 closings reported for the same period last year. Year-to-date closings for the Greater Nashville area are 11,454. That is a decrease of 26 percent from the 15,485 closings reported through July 2008. "There were more than 2,000 closings in July, which makes two consecutive months at that level. And, there are more than 2,000 sales pending for the third consecutive month, which creates a positive outlook for next month, as well," said GNAR president Mike Nichols. "Clearly, sales continue to decrease, but it is encouraging to see the rate of that decline improve so dramatically since the beginning of the year." A comparison of sales by category for July is: Closings Residential Condominium Multi-family Farms/Land/Lots July 2008 2,488 2,060 325 29 74 July 2009 2,214 1,861 273 21 59 There were 2,147 sales pending at the end of July, compared with 2,394 pending sales at this time last year. The average number of days on the market for a single-family home was 87 days. The median residential price for a single-family home during July was $171,100, and for a condominium it was $142,146. This compares with last year's median residential and condominium prices of $179,995 and $162,900, respectively. Inventory at the end of July was 24,592, down from 25,023 in July 2008. The current inventory of properties by category, compared to last year, is: Inventory Residential Condominium Multi-family Farms/Land/Lots July 2008 25,023 15,844 2,593 404 6,182 July 2009 24,592 14,916 2,614 412 6,650 "Value is one of the most significant terms for potential home buyers right now. There is a good amount of inventory available, though slightly less than last year. And, prices are lower than a year ago," added Nichols. "It is important to be aware that interest rates have shown some upward trends recently and the $8,000 tax credit is scheduled to end soon. So, those who are considering the purchase of a home may want to consider acting before circumstances change and costs increase." The Greater Nashville Association of Realtors® is one of Middle Tennessee's largest professional trade associations and serves as the primary voice for Nashville-area property owners and real estate professionals. REALTOR® is a registered trademark which may be used only by real estate professionals who are members of the National Association of REALTORS® and subscribe to its strict Code of Ethics.

©Copyright 2007-2011 GNAR.

Rates are falling!

Coming down from a seven-month high of 5.59 percent a week ago, rates on 30-year fixed home loans settled at 5.38 percent last week. Freddie Mac reports that interest on 15-year fixed mortgages was lower as well, slipping to 4.89 percent from 5.06 percent over the same period. An upward trend in borrowing costs over the past three weeks was linked to rising yields on long-term government debt, sparked by investor concerns over inflation. According to Freddie Mac, however, new data suggest that inflation is under control.

[SOURCES: Freddie Mac; Information, Inc.]

THDA Mortgage Information

Click on images to read and print. Great information for first-time homebuyers!

Senators Want Homebuyer Tax Credit to Rise to $15,000

June 10 (Bloomberg) -- Lawmakers are pushing to revive legislation in the Senate that would almost double an $8,000 tax credit for first-time homebuyers and expand the program to all borrowers.

Senator Johnny Isakson, a Georgia Republican, introduced a bill today that would increase the tax credit to $15,000 and remove income and other restrictions on who can qualify, according to his spokeswoman, Sheridan Watson. The Treasury Department declined to comment on the proposal.

The legislation, co-sponsored by Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, would extend the homebuyer credit to multifamily properties used as the borrower’s primary residence. It would also eliminate income caps of $75,000 and $150,000 on individuals and couples seeking to claim the credit.

“The housing market continues to be a drag on the economy, John Castellani, president of the Washington-based Business Roundtable, said in a telephone interview today. “We believe that if we don’t stabilize this vital sector, we can’t turn the tide on the recession.”

The Business Roundtable represents more than 100 chief executive officers including General Electric Co.’s Jeffrey Immelt and Exxon Mobil Corp.’s Rex Tillerson. The group and the National Association of Realtors are pushing to expand the tax credit and to lower mortgage rates to revive the housing market.

For All Borrowers

“One of the biggest problems facing the American people today is an illiquid housing market, a decline in their equity, a decline in their net worth and a depression in the housing market that we are obligated to correct if we possibly can,” Isakson said in a statement. Isakson said his legislation would spur demand in the housing market by giving homeowners the incentive to trade up to a more expensive home.

The bill would extend the tax credit, which now applies to homes purchased from Jan. 1 to Dec. 1, 2009, to one year after the new measure is signed into law, according to Watson. Isakson’s bill would make the credit available to all borrowers, not only borrowers who haven’t owned a home in the previous three years as is the case under current law. It would also let borrowers divide the credit over two years. The legislation wouldn’t be applied retroactively to purchases completed before the date of enactment, Watson said.

The bill is co-sponsored by Republican Senators Lamar Alexander of Tennessee, Saxby Chambliss of Georgia, David Vitter of Louisiana, James Risch of Idaho, Lisa Murkowski of Alaska, John Ensign of Nevada and Jim Bunning of Kentucky, according to a statement from Isakson.

Senator Joseph Lieberman, a Connecticut independent, has also signed on to the bill, according to the statement.

Mortgage Rates

The Business Roundtable and Realtors group also recommended the Federal Reserve continue to purchase mortgage securities guaranteed by Fannie Mae, Freddie Mac and government mortgage bond insurer Ginnie Mae to drive down mortgage rates to less than 5 percent.

The Fed is about a third of the way through its $1.25 trillion commitment, holding $427.6 billion of mortgage debt backed by the government-sponsored enterprises as of June 3, according to the New York Federal Reserve.

The average rate on a 30-year fixed-rate U.S. mortgage jumped last week to the highest level since November, rising to 5.57 percent from 5.25 percent the prior week, according to data released today by the Mortgage Bankers Association.

To contact the reporter on this story: Dawn Kopecki in Washington at dkopecki@bloomberg.net.

Last Updated: June 10, 2009 18:09 EDT

$8,000 Tax Credit for First Time Home Buyers

HUD: Tax Credit Can Be Used on Closing Costs

FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.

Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.

The loans can't be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning.

Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent downpayment.

There remain many sources of assistance for buyers needing help with the 3.5 percent downpayment, including many state and local government instrumentalities and nonprofit lenders.

In addition, some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their downpayment. These programs are separate from what HUD announced today.

The first-time homebuyer tax credit was enacted last year--and improved upon earlier this year--to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven't owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.

Learn more about the credit, including how to apply for it this year even if you've already filed your taxes, at REALTOR.org.

Source: Robert Freedman, REALTOR® Magazine Online

Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.

Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Breaking news: HUD Secretary Donovan announces that the $8,000 tax credit may be used as a downpayment.

Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer's income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

Information provided by www.realtor.org

May Home Sales

GREATER NASHVILLE HOME SALES CONTINUE RECENT TRENDS

Pending Sales Reach 2,000

There were 1,783 home closings reported for the month of May, according to figures provided by the Greater Nashville Association of REALTORS®. This figure represents a 28.9 percent decrease compared with 2,508 closings in May of 2008. Year-to-date closings are down compared to last with year with 7,149. That is a 31.2 percent decrease compared to the 10,406 closings reported through May 2008. “My home sales are consistent with what we have seen throughout all of 2009 ,” said GNAR President Mike Nichols. “Real estate is feeling the same effects as the rest of the national economy. With the recent American Recovery adn Reinvestment Act of 2009 supported by the FHA, we are hopeful that first-time homebuyers will take advantage of the opportunity to use the $8,000 tax credit to help with certain costs at closing. And, as more potential buyers become aware of this significant help, some of them will take seriously the opportunity to purchase a homein what are really very favorable conditons and act now. ” A comparison of sales by category for May is: Closings Residential Condominium Multi-family Farms/Land/Lots May 2008 2,508 2,074 305 34 95 May 2009 1,783 1,495 228 9 51 There were 2,000sales pending at the end of May, compared with 2,489 pending sales at this time last year. The average number of days on the market for a single-family home was 92 days. The median residential price for a single-family home during May was $169,900 and for a condominium it was $156,250. This compares with last year’s median residential and condominium prices of $189,975 and $159,000, respectively. Inventory at the end of May was 25,096, down from 24,598 in 2008. The current inventory of properties by category, compared to last year, is: Inventory Residential Condominium Multi-family Farms/Land/Lots May 2008 25,096 15,859 2,596 410 6,231 May 2009 24,598 14,976 2,650 389 6,583 “This is the first time since September of last year that we have seen pending sales at the 2,000 level ,” Nichols added. “For buyers, this is a very important time. Many factors remain in their favor with interest rates low, inventory plentiful and even support from government programs. However, those factors will not remain that way indefinitely. If interest rates increase, that could add significantly to the cost of a home. So, acting now would be to their advantage. For sellers, making their homes attractive and pricing them properly is critical to getting them sold.“ The Greater Nashville Association of Realtors® is one of Middle Tennessee's largest professional trade associations and serves as the primary voice for Nashville-area property owners and real estate professionals. REALTOR® is a registered trademark which may be used only by real estate professionals who are members of the National Association of REALTORS® and subscribe to its strict Code of Ethics.

©Copyright 2007-2011 GNAR.