Article in the Realtor news:
Investors are buying houses again
NEW YORK – March 22, 2010 – More home buyers are snapping up properties with cash, a trend driven in large part by investors returning to the market after four years of falling prices around the country.
The share of home sales involving all-cash transactions was 26 percent in January, up from 18 percent a year earlier, according to the National Association of Realtors. The figures come from a survey of members about their most recent transactions.
Many home buyers also are paying cash, but investors are largely using cash so they can avoid paying interest charges on loans and get a larger return on their investment.
NAR data also show a pickup in investment activity. Home purchases made by buyers identified as investors climbed to 17 percent in January, up from 15 percent in December and 12 percent in November.
“We bottomed out in 2008, and in late 2009, prices stabilized and investors have returned,” says Mark Fleming, chief economist at First American CoreLogic. “It’s a different type of investor going after foreclosed properties and expecting to hold on for longer time frames.”
Many investors say they’re financing their purchases with cash on hand, rather than borrowing. One investor San Francisco bought three rental properties in November and February and now owns 21 in four states. The rent he collects gives him an 8.5 percent annual return on his investment. Some of his homes are worth about $165,000.
"I’m still looking,” the investor says. “You can’t build these houses for the prices they’re selling them. I’ve always seen that the real wealth was in real estate. People have been sitting on cash, and there’s no interest from the bank (to pay).”
All-cash purchases also reflect a growing number of investors buying higher-end properties without credit, says NAR spokesman Walter Molony. That’s a sign that some investors see real estate prices as having nowhere to go but up. All-cash offers give buyers a competitive edge on rival offers – even higher ones – that are dependent on financing. Cash deals can close faster and are less likely to fall through.
Some investors say the current real estate market is an ideal time to buy because homes are so low priced, they are bound to hold their value. That’s the philosophy of a Tinley Park, Ill. investor. He is buying about 120 to 150 entry-level homes in the Chicago area this year and owns a total of about 300 properties. He says now is a good time to buy because properties going into foreclosure are no longer just one-bedroom, fixer-uppers but nicer, split-level brick homes with more bedrooms that will probably appreciate to a higher value.
For information on Marco Island real estate visit my website at http://www.realestateonmarco.com/
Monday, March 22, 2010
Warren Buffett sees housing market bouncing back in 2011
By Andrew Frye, Bloomberg News
Billionaire Warren Buffett said the U.S. will recover from the residential real estate slump by 2011 as demand for houses catches up with the supply that accumulated during the bubble.
"Within a year or so, residential housing problems should largely be behind us," Buffett wrote Saturday in his annual letter to the shareholders of his Berkshire Hathaway. "Prices will remain far below 'bubble' levels, of course, but for every seller or lender hurt by this there will be a buyer who benefits. Indeed, many families that couldn't afford to buy an appropriate home a few years ago now find it well within their means."
Record foreclosures flooded a U.S. real estate market already glutted with unsold property, causing housing starts to fall.
"People thought it was good news a few years back when housing starts — the supply side of the picture — were running about 2 million annually," wrote Buffett, 79, chairman and CEO of Omaha-based Berkshire. "But household formations — the demand side — only amounted to about 1.2 million."
Buffett built Berkshire into a $198 billion company through takeovers and investments in companies he believes have lasting competitive advantages and superior management.
Buffett wrote that his company should have bought more corporate and municipal bonds last year because they were cheap compared with U.S. Treasuries. When it's raining gold, reach for a bucket, not a thimble, he said.
Buffett has used past letters to discuss plans for his successor, praise Berkshire managers and confess his failings. Last year he said the U.S. economy was in shambles after reckless lending.
Buffett agreed to his largest deal last year when he arranged the $27 billion takeover of railroad Burlington Northern Santa Fe. Berkshire completed the acquisition, which Buffett described as an all-in wager on the U.S. economy, on Feb. 12.
Shares of Berkshire traded at about $15 when Buffett took control in 1965. The class A stock closed yesterday at $119,800, its highest since October 2008. Buffett added class B shares in 1996, and agreed to split them this year to help pay Burlington Northern shareholders.
© 2010 Bloomberg L.P. All Rights Reserved
Billionaire Warren Buffett said the U.S. will recover from the residential real estate slump by 2011 as demand for houses catches up with the supply that accumulated during the bubble.
"Within a year or so, residential housing problems should largely be behind us," Buffett wrote Saturday in his annual letter to the shareholders of his Berkshire Hathaway. "Prices will remain far below 'bubble' levels, of course, but for every seller or lender hurt by this there will be a buyer who benefits. Indeed, many families that couldn't afford to buy an appropriate home a few years ago now find it well within their means."
Record foreclosures flooded a U.S. real estate market already glutted with unsold property, causing housing starts to fall.
"People thought it was good news a few years back when housing starts — the supply side of the picture — were running about 2 million annually," wrote Buffett, 79, chairman and CEO of Omaha-based Berkshire. "But household formations — the demand side — only amounted to about 1.2 million."
Buffett built Berkshire into a $198 billion company through takeovers and investments in companies he believes have lasting competitive advantages and superior management.
Buffett wrote that his company should have bought more corporate and municipal bonds last year because they were cheap compared with U.S. Treasuries. When it's raining gold, reach for a bucket, not a thimble, he said.
Buffett has used past letters to discuss plans for his successor, praise Berkshire managers and confess his failings. Last year he said the U.S. economy was in shambles after reckless lending.
Buffett agreed to his largest deal last year when he arranged the $27 billion takeover of railroad Burlington Northern Santa Fe. Berkshire completed the acquisition, which Buffett described as an all-in wager on the U.S. economy, on Feb. 12.
Shares of Berkshire traded at about $15 when Buffett took control in 1965. The class A stock closed yesterday at $119,800, its highest since October 2008. Buffett added class B shares in 1996, and agreed to split them this year to help pay Burlington Northern shareholders.
© 2010 Bloomberg L.P. All Rights Reserved
Foreclosure prevention
Wells Fargo agrees to modify second mortgages
SAN FRANCISCO – March 18, 2010 – Facing criticism over the slow progress of its foreclosure-prevention efforts, the Obama administration has struck deals with two giant banks that would extend mortgage relief to homeowners with second mortgages.
Wells Fargo & Co. said Wednesday that it has agreed to modify home-equity loans in cases where borrowers have already qualified for relief under the U.S. Treasury’s mortgage-modification program. Wells Fargo joined Charlotte, N.C.-based Bank of America, which made a similar announcement in January.
Together, the two banks account for 25 percent of the second-mortgage market in the United States, according to the U.S. Treasury.
Consumer advocates say a key weakness with the government’s $50 billion foreclosure-prevention program is that mortgage modifications leave second loans unchanged. Borrowers qualifying for lower mortgage payments risk default because of large payments on a home equity loan. Some homeowners owe more on a second mortgage than the first.
The U.S. Treasury, recognizing the second-mortgage problem, last summer began urging large banks to modify those loans, too.
SAN FRANCISCO – March 18, 2010 – Facing criticism over the slow progress of its foreclosure-prevention efforts, the Obama administration has struck deals with two giant banks that would extend mortgage relief to homeowners with second mortgages.
Wells Fargo & Co. said Wednesday that it has agreed to modify home-equity loans in cases where borrowers have already qualified for relief under the U.S. Treasury’s mortgage-modification program. Wells Fargo joined Charlotte, N.C.-based Bank of America, which made a similar announcement in January.
Together, the two banks account for 25 percent of the second-mortgage market in the United States, according to the U.S. Treasury.
Consumer advocates say a key weakness with the government’s $50 billion foreclosure-prevention program is that mortgage modifications leave second loans unchanged. Borrowers qualifying for lower mortgage payments risk default because of large payments on a home equity loan. Some homeowners owe more on a second mortgage than the first.
The U.S. Treasury, recognizing the second-mortgage problem, last summer began urging large banks to modify those loans, too.
Tuesday, March 16, 2010
Tax Credit Extended for Military Service Persons
Tax credit extended for active duty military
WASHINGTON – March 16, 2010 – U.S. servicemen out of the country for 90 days (since 2008) may have an extra year to get the tax credit, up to $8,000, for buying a home.
The active-duty rule is not new. It’s part of the current tax credit law, though its use is limited. The qualification must be for “official extended duty outside the United States for at least 90 days after 2008 and before May 1, 2010.”
Should that be the case, however, the homebuyer has an extra year to buy a home. He or she has until April 30, 2011, to secure a binding contract, and until June 30, 2011 to close on the home. Other conditions such as a maximum $8,000 for first-time buyers and $6,500 for move-up buyers still apply.
For advice in any specific case, consult a qualified tax advisor. The applicable IRS publication is posted online (PDF format) at: http://www.irs.gov/pub/irs-pdf/p3.pdf
For information on real estate on Marco Island, Florida visit http://www.realestateonmarco.com/
WASHINGTON – March 16, 2010 – U.S. servicemen out of the country for 90 days (since 2008) may have an extra year to get the tax credit, up to $8,000, for buying a home.
The active-duty rule is not new. It’s part of the current tax credit law, though its use is limited. The qualification must be for “official extended duty outside the United States for at least 90 days after 2008 and before May 1, 2010.”
Should that be the case, however, the homebuyer has an extra year to buy a home. He or she has until April 30, 2011, to secure a binding contract, and until June 30, 2011 to close on the home. Other conditions such as a maximum $8,000 for first-time buyers and $6,500 for move-up buyers still apply.
For advice in any specific case, consult a qualified tax advisor. The applicable IRS publication is posted online (PDF format) at: http://www.irs.gov/pub/irs-pdf/p3.pdf
For information on real estate on Marco Island, Florida visit http://www.realestateonmarco.com/
Friday, March 12, 2010
Mortgage rates
Mortgage rates remain below 5 percent
Mortgage rates held below the 5 percent threshold for the second straight week, a report said Thursday, weeks before a government program that has been keeping rates low is scheduled to expire.
The average rate on a 30-year fixed rate mortgage was 4.95 percent this week, down from 4.97 percent a week earlier, mortgage finance company Freddie Mac said.
This week, the average rate on a 15-year fixed-rate mortgage was 4.32 percent, down from 4.33 percent last week, according to Freddie Mac.
Rates on five-year, adjustable-rate mortgages averaged 4.05 percent, down from 4.11 percent a week earlier. Rates on one-year, adjustable-rate mortgages fell to 4.22 percent from 4.27 percent.
For all you real estate needs visit http://www.realestateonmarco.com/ or call me at 239-404-7471
Mortgage rates held below the 5 percent threshold for the second straight week, a report said Thursday, weeks before a government program that has been keeping rates low is scheduled to expire.
The average rate on a 30-year fixed rate mortgage was 4.95 percent this week, down from 4.97 percent a week earlier, mortgage finance company Freddie Mac said.
This week, the average rate on a 15-year fixed-rate mortgage was 4.32 percent, down from 4.33 percent last week, according to Freddie Mac.
Rates on five-year, adjustable-rate mortgages averaged 4.05 percent, down from 4.11 percent a week earlier. Rates on one-year, adjustable-rate mortgages fell to 4.22 percent from 4.27 percent.
For all you real estate needs visit http://www.realestateonmarco.com/ or call me at 239-404-7471
Thursday, March 11, 2010
What is really happening in Marco Island Real Estate?
The real estate market on Marco Island had begun to stabalize and we are seeing some positive changes. With that being said here are some statistics:
NEW LISTINGS ON THE MARKET FOR FEBRUARY 2010:
Single family homes new on the market are down 7% from January 2010
Condominiums new on the market are down 22% from January 2010
PENDING SALES FOR FEBRUARY 2010:
Single family homes under contract are up 82% from January 2010 and up 27% from February 2009
Condominiums under contract are down 8% from January 2010 and up 20% from February 2010.
CLOSED SALES FOR FEBRUARY 2010:
Single family homes are down 8% from January 2010 and down 6% from February 2009
Condominiums are up 10% from January 2010 and up 55% from February 2009
If our inventory levels continue to decline it will make a shift on the supply and demand on Marco Island. The less supply we have the greater the demand.
NEW LISTINGS ON THE MARKET FOR FEBRUARY 2010:
Single family homes new on the market are down 7% from January 2010
Condominiums new on the market are down 22% from January 2010
PENDING SALES FOR FEBRUARY 2010:
Single family homes under contract are up 82% from January 2010 and up 27% from February 2009
Condominiums under contract are down 8% from January 2010 and up 20% from February 2010.
CLOSED SALES FOR FEBRUARY 2010:
Single family homes are down 8% from January 2010 and down 6% from February 2009
Condominiums are up 10% from January 2010 and up 55% from February 2009
If our inventory levels continue to decline it will make a shift on the supply and demand on Marco Island. The less supply we have the greater the demand.
Monday, March 8, 2010
Everglades Bicycle Ride
The Everglades Bicycle Ride will take place March 20, 2010 in Everglade City. They have 8, 23, 50,62, or 82 mile rides. Continental Breakfast, rest stops along route, and SAG vehicle support available. Great family event for kids of all ages.
Sponsored by the Naples Pathways Coalition. Proceeds benefit the River of Grass Greenway and Reach Out Everglades.
For more information contact: Patty Huff at 239-695-2397 or evergladesrogg.org
Sponsored by the Naples Pathways Coalition. Proceeds benefit the River of Grass Greenway and Reach Out Everglades.
For more information contact: Patty Huff at 239-695-2397 or evergladesrogg.org
Saturday, March 6, 2010
Walk to the Beach
Walk to the beach from this beautiful home with 3 bedrooms and 2 baths. Mature landscaping and tile roof located in the prestigious Copperfield area.
The home features a pool and built in spa, boat dock and lift with the boat included in the sale of the home. Relax by the pool and watch the sunset over the water for another perfect day on Marco Island.
For more information on this home, please call Deanna at 239-404-7471 or visit my website at http://www.realestateonmarco.com/
Great home at a great price on Beautiful Marco Island!
$499,000
Tuesday, March 2, 2010
Real Estate Tax Credit
With the Tax Credit deadlines just around the corner, I wanted to go over the requirements.
What's the deadline?
To Qualify, first-time and repeat buyers must have a binding written contract by April 30, 2010 and close by July 1, 2010.
How Much Money is available?
The maximum allowable credit for first-time home buyers is $8,000. The maximum for repeat buyers, also referred to in the legislation as "long-time residents," is $6,500.
What Properties are eligible?
The Extended Home Buyer Tax Credit may be applied to primary residences, including single-family homes, condos, townhomes, and co-ops.
How do buyers get the benefit?
Buyers can apply the credit to their 2009 tax return, filed on or before April 15, 2010; file an amended 2009 return; or apply the credit on their 2010 return, filed on or before April 15, 2011.
Who Qualifies?
To quailfiy as a first-time home buyer, the purchaser or his or her spouse may not have owned a residence during the three years prior to the purchase. To qualify as a repeat buyer, current home owners must have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
Are there income limits?
The new law raises the income limits for people who purchase homes after November 6, 2009. The full credit will be available to taxpayers with modified adjusted gross incomes up to $125,000 or $225,000 for joint filers. Those with MAGI between $125,000 and $145,000 - or $225,000 and $245,000 for joint filers-are eligible for a reduced credit. Those with higher incomes do not qualify.
This information was obtained from www.realtor.org
What's the deadline?
To Qualify, first-time and repeat buyers must have a binding written contract by April 30, 2010 and close by July 1, 2010.
How Much Money is available?
The maximum allowable credit for first-time home buyers is $8,000. The maximum for repeat buyers, also referred to in the legislation as "long-time residents," is $6,500.
What Properties are eligible?
The Extended Home Buyer Tax Credit may be applied to primary residences, including single-family homes, condos, townhomes, and co-ops.
How do buyers get the benefit?
Buyers can apply the credit to their 2009 tax return, filed on or before April 15, 2010; file an amended 2009 return; or apply the credit on their 2010 return, filed on or before April 15, 2011.
Who Qualifies?
To quailfiy as a first-time home buyer, the purchaser or his or her spouse may not have owned a residence during the three years prior to the purchase. To qualify as a repeat buyer, current home owners must have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
Are there income limits?
The new law raises the income limits for people who purchase homes after November 6, 2009. The full credit will be available to taxpayers with modified adjusted gross incomes up to $125,000 or $225,000 for joint filers. Those with MAGI between $125,000 and $145,000 - or $225,000 and $245,000 for joint filers-are eligible for a reduced credit. Those with higher incomes do not qualify.
This information was obtained from www.realtor.org
2nd Annual Marco Island Seafood Festival
Marco Island will be holding a Seafood Festival March 20-21 at Vetrans Community Park. There will be a wide range of seafood from fresh fish, stone crab claws, fish chowder and arts & crafts.
There will also be a wide variety of live music. Entertainment starts at 11am both days and ends at 6:45pm.
There will be a bus route that will pick up people at Marco Island Healthcare Center and deliver them to the Festival.
For more information visit http://www.marcoislandseafoodfestival.com/
There will also be a wide variety of live music. Entertainment starts at 11am both days and ends at 6:45pm.
There will be a bus route that will pick up people at Marco Island Healthcare Center and deliver them to the Festival.
For more information visit http://www.marcoislandseafoodfestival.com/
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