housing market

Confidence is on the rise according to Fannie Mae

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Despite continued uncertainty surrounding the fiscal cliff, Americans are showing increased confidence in the housing market and the direction of the economy. According to results from Fannie Mae’s November 2012 National Housing Survey, such improvement bodes especially well for continued strengthening in the housing sector, which in turn should lead to overall economic growth.

According to the survey, the share of respondents who say now is a good time to sell a home jumped 5 percentage points in November to 23 percent – the highest level since the survey began in June 2010. The percentage of respondents who expect mortgage rates to go up increased by 4 percentage points to 41 percent. Those expecting home prices to go down within the next year also rose by 4 percentage points to 14 percent over last month, a rebound from the survey’s record low in the prior month, while the share who believe home prices will go up in the next 12 months edged up to 37 percent, tying the survey high. Of note, 51 percent of respondents now say it would be easy to get a mortgage, marking the highest rate since the survey’s inception.

These survey statistics support the trends that real estate brokers around the country are beginning to witness: an increasing lack of inventory, rising home values, and home buyers – who have been waiting five years or more – finally ready to purchase their first home or move-up home.

Positive housing indicators are connected to a generally improving outlook regarding the nation’s overall economic picture. When asked about the economy, those who say it is on the wrong track dipped 6 percentage points since October and a total of 25 percentage points in the past year.

Other noteworthy results from the Fannie Mae survey include:

  • 48 percent of those surveyed say home rental prices will go up in the next 12 months, a slight decrease from last month.
  • 51 percent of respondents now say it would be easy to get a mortgage.
  • 21 percent of respondents say their household income is significantly higher than it was 12 months ago.
  • Household expenses remained stable over the past month, with 56 percent responding that their household expenses stayed the same compared to 12 months ago.

As a Member of the Top 5 in Real Estate Network®, I have a wealth of real estate and home-ownership information that may be of help to you. Feel free to contact me any time to learn more about this important information, and be sure to forward this article on to any friends or family that may be interested as well.

It’s all so confusing…

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There is so much confusion in what is being reported about the real estate market it is understandable why so many people are unsure of what to do in regards to housing.  Information recently reported from Standard and Poor’s is just one reporting outlet where mixed signals are being sent out to consumers.  In one report, they claim that housing prices have increased for 8 consecutive months – this is through Standard and Poor’s and then through the Standard &Poor’s/Case-Shiller pricing index they say prices have dropped for the 4th consecutive month – absolutely insane.  How can one agency say prices are going up and down at the same time and not believe they are sending a mixed message to consumers and in turn hurting the housing recovery? 

For the record, The Washington Examiner reported that the Washington area was the strongest in the Nation as we have the right fundamentals in place.  Low unemployment, and scarcity of land are factors they sight in their article – couple this with low inventory, low housing starts, great rates, the home buyer tax credit and relatively affordable prices and we have a better than average housing market.

We too have been hearing, reading and expecting rates to increase when the Fed eases out of and stops buying mortgage backed securities (which has been happening by the way) yet rates have stayed low – conflicting news, but good news none the less.

We watch the market very closely everyday here locally and it is important to understand from a professional what is happening in our market and why.  We want to reiterate that our housing market in Northern Virginia is robust, resilient and is rebounding nicely today.  Our absorption rate remains high, prices are increasing in some areas and we have buyers out looking to capitalize on the remaining days of the home buyer tax credit.  To learn more about what is happening with your home or to learn how you or someone you know can take advantage of the tax credit, call us today!

Numbers, Short Sales and Taxation…oh my!!!

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ScottsCam 001

Wow!  Lots of great info was shared today at training
– numbers, top ten questions ready to be answered, short sales in any market
and then Aronson & Company notes on taxation of debt forgiveness.

 

Numbers (in Northern Virginia)

 

  • Active (Sales)                                      5414
  • Vacant                                                 1597
  • % of Market                                         29.5%
  • Month Supply (For Sale)                      1.8
  • Month Supply (For Rent)                     2.2
  • Month Supply Sold                              2.1

 

 

Top Ten Questions – ready
to be answered!

 

  1. Is the housing market getting better?
  2. When will housing bottom out?
  3. What signals should I watch to determine
    whether my local market is improving?
  4. How can I figure out the value of my home?
  5. Does it matter whether I’m ‘under water’?
  6. If I lose my home to foreclosure, how long
    will it take to repair my credit record?
  7. If I’m renting, is now a good time to buy a
    house?
  8. Can I get a tax credit if I buy a home now?
  9. Can I get a mortgage on attractive terms?
  10. Should I invest in foreclosed homes?

 

 

Aronson & Company
Notes

 

·       
Cancellation
of debt is a taxable event

·       
Bankruptcy
does protect from tax liability from a tax liability that occurred prior to
bankruptcy.

·       
Deed in Lieu
of Foreclosure – similar to short sale – selling to third party with bank’s
approval. 

·       
Loan
Modifications can also result in cancellation of debt and the modifier may
receive a 1099 from the lender – be aware this is could possibly happen!

·       
The discharge
of acquisition debt secured by the taxpayer’s principal residence is excluded
from income up to $2,000,000 until December 31, 2012.  This date is subject to change.


For a complete chart of
the implications of the Taxation of Debt Forgiveness handout we received call
or email me and we will get it to you. 
As is always the case – you learn more by listening, taking notes and
reading the materials than you do by reading my synopsis – get to training
yourself to internalize it more!  Get
it?  Got it?  Good!

 

Now, go sell something!