Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 7.4 percent to a seasonally adjusted annual rate of 6.54 million units in November from 6.09 million in October, and are 44.1 percent higher than the 4.54 million-unit pace in November 2008. Current sales remain at the highest level since February 2007 when they hit 6.55 million.

Lawrence Yun, NAR chief economist, said the rise was expected. “This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead,” he said. “We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. In all, 4.4 million households are expected to claim the tax credit before it expires and balance should be restored to the housing sector with inventories continuing to decline.”

Conditions Optimal for Buyers
An NAR practitioner survey shows first-time buyers purchased 51 percent of homes in November, compared with an upwardly revised 50 percent of transactions in October. According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.88 percent in November from 4.95 percent in October; the rate was 6.09 percent in November 2008. Last month’s mortgage interest rate was the second lowest on record after bottoming at 4.81 percent in April 2009.

NAR President Vicki Cox Golder said conditions are optimal for buyers in the current market. “Inventories have steadily declined and are closer to balanced levels, which indicate home prices in many areas are either stabilizing or could soon stabilize and return to normal appreciation patterns,” she said. “This means buyers still have good choices but are purchasing near the bottom of the price cycle with historically low mortgage interest rates. Throw a tax credit on top and it really doesn’t get any better for buyers with secure jobs and long-term ownership plans.”

Inventories Fall
Total housing inventory at the end of November declined 1.3 percent to 3.52 million existing homes available for sale, which represents a 6.5-month supply at the current sales pace, down from an 7.0-month supply in October. Raw unsold inventory figures are 15.5 percent below a year ago. The last time there was a lower supply of homes on the market was April 2006, when it was at a 6.1-month supply.

“Nearly all markets experienced a solid sales gain from one year ago,” Yun said. “The only markets with measurably lower sales were in San Diego, Riverside, and Sacramento (Calif.), where inventory shortages for lower-priced homes are limiting sales.”

Sales Rise Across the Board
For the second month in a row, sales have risen in all price classes from a year earlier. Prior to October, the only consistent gains were in the lower price ranges. The national median existing-home price for all housing types was $172,600 in November, which is 4.3 percent below November 2008. Distressed properties, which accounted for 33 percent of sales in November, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.

Single-Family Homes
Single-family home sales jumped 8.5 percent to a seasonally adjusted annual rate of 5.77 million in November from a level of 5.32 million in October, and are 42.1 percent above the pace of 4.06 million in November 2008. The median existing single-family home price was $171,900 in November, down 4.4 percent from a year ago.

Condos
Existing condominium and co-op sales in November were unchanged from a seasonally adjusted annual rate of 770,000 in October, but are 60.1 percent above the 481,000-unit pace a year ago. The median existing condo price was $178,000 in November, which is 3.1 percent below November 2008.

By Region

* Sales in the Northeast rose 6.6 percent to an annual level of 1.13 million in November, and are 52.7 percent higher than November 2008. The median price in the Northeast was $223,400, down 13.1 percent from a year ago.
* Existing-home sales in the Midwest increased 8.4 percent in November to a pace of 1.55 million and are 53.5 percent above a year ago. The median price in the Midwest was $140,800, a decline of 0.4 percent from November 2008.
* In the South, existing-home sales rose 4.8 percent to an annual level of 2.39 million in November and are 44.8 percent higher than a year ago. The median price in the South was $151,400, down 1.4 percent from November 2008.
* Existing-home sales in the West increased 10.6 percent to an annual rate of 1.46 million in November and are 28.1 percent above November 2008. The median price in the West was $231,100, which is 4.1 percent below a year ago.

From: http://ping.fm/c9qFe

When a home-owning parent of an adult child co-signs for a mortgage and both names appear on the note, the IRS says that under some circumstances, the first-time home buyer can qualify for the whole amount.

The IRS says the parent doesn’t qualify for any portion of the credit, but if the child hasn’t owned a home during the three years preceding the current purchase and can qualify based on income, he or she can be allocated the entire $8,000 credit.

When unmarried individuals co-purchase a home and only one of them is eligible for the credit, then the full $8,000 can be allocated to the eligible buyer.

Source: Washington Post Writers Group, Kenneth R. Harney (12/04/2009)

From: http://ping.fm/GlP9M

Here’s the highlights. And note the “upgrades in who it covers”:

1) First-time homebuyers – or anyone who hasn’t owned a home in the last three years – would still get up to $8,000. To qualify, buyers have to sign a purchase agreement by April 30, 2010, and close by June 30.

2) Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. (Nice push for trade up/down)

3) The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000. (Significant increases above current regulations)

Note again, the credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible.

From: http://ping.fm/BniQ5

The legislation was included in a bill to extend unemployment benefits and is expected to be passed by the House today or tomorrow. President Obama is expected to sign the legislation when it’s sent to his desk.

Under the bill, income limits are expanded to $125,000 for individuals and $225,000 for joint filers. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.

Households who have binding contracts in place by April 30 will be allowed an additional 60 days to complete their transaction. The deadline for members of the military serving out the U.S. for at least 90 days between Jan. 1, 2009, and May 1, 2010, has been extended one year.

Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a check. Taxpayers will be able to claim the credit on their 2009 income tax return for purchases made in 2010.

More on the credit is available from NAR.

From: http://ping.fm/w1EOR

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in September, rose 6.1 percent to 110.1 from a reading of 103.8 in August, and is 21.2 percent higher than September 2008 when it stood at 90.9.

The gain from a year ago is the largest annual increase on record, and….

From: http://ping.fm/XfOCv

Home buyers must be under contract by April 30, 2010, and close before July 1. House Democrats have expressed concern about the cost of the tax credit for the government, and allegations of abuse have resulted in an IRS probe of the program.

From: http://ping.fm/zvCIM

The result is this list of top 10 safest metropolitan areas:

1. Minneapolis-St. Paul-Bloomington, Minn.-Wisc.
2. Milwaukee-Waukesha-West Allis, Wisc.
3. Portland-Vancouver-Beaverton, Ore.-Wash.
4. Boston-Cambridge-Quincy, Mass.
5. Seattle-Tacoma-Bellevue, Wash.
6. Providence-New Bedford-Fall River, R.I.
7. San Jose-Sunnyvale-Santa Clara, Calif.
8. New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa.
9. Cincinnati-Middletown, Ohio (tie)
10. Cleveland-Elyria-Mentor, Ohio/Denver-Aurora, Colo. (tie)

Source: Forbes.com, Zack O’Malley Greenburg (10/26/2009)

From: http://ping.fm/aHifE

Florida Democrat Sen. Bill Nelson told reporters traveling to Florida with President Obama on Monday that he thought that the extension would be approved, but both senators and representatives are among those who think that there should be some fiscal offset for the cost of the extension. Spending any more money on the stimulus effort also could stir up a hornets’ nest in some circles.

The proposal in the Senate that appears to have the most likelihood of passage would extend the $8,000 credit through March 31, then its value would drop by $2,000 for each of the subsequent three quarters of 2010. This plan was offered by Senate Majority Leader Harry Reid of Nevada and Senate Finance Committee Chairman Max Baucus, a Montana Democrat.

Source: Associated Press, Andrew Taylor (10/26/2009) and The Wall Street Journal, John D. McKinnon (10/27/2009)

From: http://ping.fm/SJkVx

The problem stems from a Fannie Mae policy that requires lenders to hand-underwrite these loans because that practice makes it harder for scammers to use the credit dispute law to hide bad credit experiences.

Denying people who are good credit risks a loan is frequently an unintended consequence, says Christopher Cruise, a mortgage originator and a founder of Responsible Loan Officers. “There’s no question when there are lots of other applications and business is good,” applications requiring extra time and research “just aren’t going to move.”

The policy is extremely unfair to honest consumers who are simply doing what they should challenging misinformation, says Evan Hendricks, whose newsletter Privacy Times outlined Fannie Mae’s policy in a recent report.

Fannie Mae says it is reviewing the policy and may change it.

Source: Washington Writers Group, Kenneth R. Harney (10/25/2009)

From: http://ping.fm/0GiVs

Linda Stiff, deputy commissioner of the Internal Revenue Service, told the House Ways and Means Oversight Subcommittee on Thursday that the IRS would support requiring anyone claiming the credit to file a copy of a settlement statement from the U.S. Department of Housing and Urban Development, known as the HUD-1 form, with their tax return.

IRS auditors testified that the agency believes it paid thousands of fraudulent tax credit claims, totaling at least $139 million since the first of the year.

From: http://ping.fm/pMa8b

Over the past three years, home prices have risen in most of the metro areas of 23 states, according to analytics firm Fiserv. States mostly likely to escape the housing meltdown were…..

From: http://ping.fm/ahSp2

“Anybody who is trying to sell a house going into the winter months has to be flexible, and you should be able to get good deals,”says Guy Cecala, publisher of Inside Mortgage Finance. With mortgage rates at record lows and favorable home prices, buyers should be active.

Here are some tips for buyers to help ensure a successful close:

* Secure Employment: Buyers must have a stable job in order to feel comfortable about the purchase and to get approved for a mortgage.
* Spotless Credit: Credit scores above 720 still get the best mortgage rates, as lending remains tight. Help buyers to correct any errors on their credit reports.
* Build Cash: Let house hunters know that the days of no-down-payment loans are a relic of the past. Depending on the situation, they�ll need to put down at least 3.5 percent of the purchase price.
* Follow Uncle Sam: Though the first-time home buyer tax credit is set to expire November 30th, there�s talk it may be extended into 2010. Buyers may still be able to take advantage of this opportunity, but pay attention to the news out of Washington to see if eligibility will be extended.
* Be Ready to Bargain: Purchasers are in a position to ask for a lot more if a seller needs to move. If you think the floor needs to be replaced, ask for it. “In my market, buyers still have a great deal of influence and sellers will do just about anything, assuming it is doable and legal,” says NAR First Vice President Ron Phipps, a broker with Phipps Realty in Warwick, R.I.

Source: U.S. News & World Report, Luke Mullins (10/14/09)

From: http://ping.fm/SRnI1

The IRS has identified

From: http://ping.fm/RdWmm

Click the link below to view current rates around the nation.

http://www.freddiemac.com/pmms/

From: http://sussex-de-real-estate.blogspot.com/2009/10/primary-mortgage-market-survey-pmms.html

* Home Affordable Refinance: This option can help you refinance into a more affordable mortgage if you’re paying your mortgage on time but you’re unable to refinance to a lower rate because you owe more on your mortgage than your home is currently worth.
* Home Affordable Modification: This option can help you get mortgage payments you can afford if you’re delinquent in making your monthly mortgage payments, in the foreclosure process, or current on your payments but have recently experienced hardship and you are about to miss a payment.

To get help using the Making Home Affordable Program, call your lender right away. (Your lender is the company to whom you make your mortgage payments. A lender can also be called a “servicer.”) Use the customer service contact information located on your mortgage statement.

If your loan is owned by Freddie Mac (or Fannie Mae), you may be eligible. Even if your loan is not owned by Freddie Mac (or Fannie Mae), your bank may offer Making Home Affordable or other options. Always ask!”

Click below to read the rest of the details.

http://ping.fm/po0jg

From: http://ping.fm/2NnqN

http://ping.fm/oCpt6

From: http://ping.fm/8BcJu

The seller should provide the buyer all financial documents relating to the association in time for an attorney for the buyer to review them before closing.

Here’s some advice from Leonard Baron, professor of finance at San Diego State University, about the information that the seller should consider:

* Does the association budget include money for operating expenses such as water, lights, elevator maintenance, and landscaping?
* Is there extra money set aside in a reserve fund for long-term maintenance? If there is an outside reserve study, that should be provided. If not, there should be adequate money in the reserves right now to cover 50 percent of the estimated cost of repairs over the next 30 years.
* Do the condo’s expenses exceed revenues due to a high foreclosure rate or other reasons that owners debts go unpaid?
* If there is a shortfall, does the association have a plan besides cutting back on services for making it up?

From: http://ping.fm/OIKpa

Bloomberg News surveyed 53 economists and asked them where they expected the numbers to fall. Here are their predictions:

* Construction starts in September are expected to hit a 610,000 annual rate, the most since last November.
* Sales of existing homes likely rose to a two-year high.
* Because of fear of a relapse, the Federal Reserve is predicted to leave interest rates low for a few more months.
* Building permits, a sign of future growth, probably rose to a 590,000 annual pace, also the highest level since November, the Commerce Department is likely to announce.
* The National Association of Home Builders/Wells Fargo index is expected to rise to 20 from 19, the economists say.

Google Inc. plans to resume hiring and acquisitions after its third-quarter sales beat analysts estimates. CFO Patrick Pichette says: We weathered what is an incredible recession. If you have all this behind you, the only outcome you should have as management is: OK, let’s build now.

Source: Bloomberg, Courtney Schlisserman (10/18/2009)

From: http://ping.fm/ZfCUc

The overall value of construction starts is expected to rise 11 percent to $466.2 billion in 2010, according to the survey.

This year has been a tough one for the industry, with the value of starts expected to decline 25 percent to $419 billion through December.

Source: The Wall Street Journal, Dawn Wotapka (10/16/2009)

From: http://ping.fm/WTNht