Home Buyers Clamber to Collect Federal Tax Credit
By Zachary Vollmer, Real Estate Account Executive
Wednesday June, 30 marks the end of eligibility for home buyers to claim their federal tax credit. The credit offered up to $8,000 dollars for first time home buyers and $6,500 for repeat buyers. To qualify for this incentive buyers had to purchase or enter into a binding contract to purchase a primary residence before April 30 and close before June 30. The National Association Realtors predicts that as many as 180,000 buyers who entered into contracts prior to April 30 may miss the closing deadline. The principal reason behind this large number is that many of the pending transactions were short sales, which typically involve numerous parties and more paper work than a standard transaction. A proposed bill put before the Untied States Senate to extend the deadline to September 30 has failed several test votes and is not expected to pass.
New Housing Report Misses Wall Street Expectations by Wide Margins
By Zachary Vollmer, Real Estate Account Executive
The U.S. Department of Housing and Urban Development has released a report today revealing that construction of new homes and apartments decreased by 10% in May to 593,000 units. This decline is the lowest since December of 2009 and is dashing hopes that the construction industry will help fuel an economic recovery. Applications for building permits, a bellwether of future activity, dropped 5.9% to 574,000, which is the lowest level for 2010. During past recessions the construction industry has helped fuel growth, but this has not been the case this time as developers are still wading through a backlog of properties from the past real estate boom. These statistics fly in the face of the predications of economists who forecasted increases in both the number of newly constructed homes and building permits requested. Home builders may be wary about the potential for a decrease in future home sales because of the expiration of first time home buyers credit in May and the ever growing inventory of foreclosed properties.
Regional Housing Markets See Increases in Median Home Values
By Zachary Vollmer, Real Estate Account Executive
Core Logic, a California based business analytics company, is reporting after a review of housing data that national home prices rose 1.73% between March 2009 and March 2010. This increase appears counterintuitive as foreclosures continue to mount and the overall economy continues to struggle. Speculation is that the increase is the result of the Federal Government's first time home buyers credit of $8,000, which expired in April 2010. While the increase is a positive shift for real estate professionals certain markets have seen increases in housing prices far exceeding that of the national average. Below is a list of the top five metro areas which have seen significant growth in housing values over the past year.
New Laws to Affect Washington Real Estate Professionals Beginning July 1, 2010
By Zachary Vollmer, Real Estate Account Executive
On July 1, 2010 Washington will execute an overhaul to the Revised Code of Washington (RCW), a compellation of all permanent laws governing Real Estate transactions in the state. The changes are the result of recommendations put forth by a 30 member task force assembled by the Washington Department of Licensing in 2003. The task force included real estate commissioners, brokers, salespersons, real estate lawyers and representatives from the attorney generals office. Collectively the group submitted a series of suggestions to modernize the antiquated RCW, which had not been modified in any significant manner for over 60 years. In 2007 the Washington legislation passed the recommended changes and on March 14, 2008 Governor Christine Gregoire signed the bill into law.
Gulf Real Estate Professionals Feel the Pinch as Oil Reaches Shorelines
By Zachary Vollmer, Real Estate Account Executive
The environmental catastrophe unfolding off the Louisiana Coast has now begun to spread beyond the pristine coastal waters and beaches of the Gulf of Mexico as local real estate markets are quickly becoming an ancillary casualty to the still spewing oil. As the coast guard and engineers work to cap the leaking well head, real estate professionals in affected areas are scrambling to ease client concerns. With the vast majority of the oil still sitting atop gulf waters local agents are trying to fight a battle of perceptions about the future viability of the region even as tar balls begin to wash ashore. Grand Isle, Louisiana Agent Carolyn Angelette says, “We aren't selling a thing. I haven't had one closing since this whole thing happened."[i]
Fears are mounting that the costal real estate industry in affected areas may take years to recover depending on the overall extent of the disaster. Of growing concern among real estate professionals is that even once the oil is cleaned up the stigma left behind may never wash off.[ii] Additionally unease over the long term health implications of the spill are leaving buyers weary, a fact that has not been aided by the unmistakable smell of crude blanketing coastal towns.