Fannie and Freddie Mac have decided to implement new rules that will increase their fees to close loans for most borrowers.  I will insert a Washington Post article below that goes into more detail about the actual costs.  What this means for most buyers is that they will be better off using an FHA or VA loan to purchase a property...and the FHA limits have been increased in the last several years.  For more information or to talk to a QUALIFIED lender...please contact me at shanetwhite@remax.net or 512.515.5263.  We would love to set you up with someone who can give you a clear picture of the current lending arena and help to get you the best deal possible when purchasing a home...

FANNIE, FREDDIE INCREASING FEES

WASHINGTON (Washington Post) – Effective April 1, Fannie Mae and Freddie Mac will increase the "delivery" fees they charge lenders based on FICO scores, down payment amounts and other loan characteristics.

Under the new guidelines, even applicants who assumed that their FICO credit scores would get them favorable rates will be charged more unless they can come up with down payments of 30 percent or more.

For example, a buyer with a 699 FICO score who brings a down payment of about 25 percent to the table will be hit with a 1.5 percent delivery fee at closing under the new guidelines. A buyer with a FICO score between 700 and 720 will pay an extra three-quarters of a point. Someone with a 739 FICO — once considered a platinum guarantee of the best rates available — will get dinged with a quarter-point add-on.

Condominium buyers who cannot come up with a 25 percent down payment will be hit with a three-quarter point add-on penalty, no matter how high their credit score.

Home prices in Texas were up for 2008 according to FHFA.  Austin/Round Rock prices were up 4.4%.  More detail is contained in the article below:

TEXAS HOME PRICES UP, REPORTS FHFA

WASHINGTON (FHFA, Real Estate Center) – Latest home appreciation rates released this week by the Federal Housing Finance Agency (FHFA) indicate Texas home prices increased 2.1 percent last year.

Midland led the way with a 10.4 percent increase between fourth quarter 2007 and fourth quarter 2008. At the other end of the spectrum were Odessa and Brownsville, where prices fell 2.7 percent and 2.6 percent, respectively.

In the final quarter of 2008, Texas home prices increased 0.2 percent.

"The data indicate what we have believed all along," said Real Estate Center Research Economist Dr. Jim Gaines. "Texas fared well in 2008, especially compared with the rest of the country."

According to FHFA, here's how home prices in select Texas cities did last year:

Abilene	up 2.7%
Amarillo	up 0.1%
Austin–Round Rock	up 4.4%
Beaumont–Port Arthur	up 3.1%
Brownsville-Harlingen	down 2.6%
College Station–Bryan	up 5.5%
Corpus Christi	up 1.8%
Dallas-Plano-Irving	up 1.9%
El Paso	down 0.4%
Fort Worth–Arlington	up 1.2%
Houston–Sugar Land–Baytown	up 3.7%
Killeen–Temple–Fort Hood	up 2.5%
Laredo	up 4.7%
Longview	up 1.9%
Lubbock	up 4.5%
McAllen-Edinburg-Mission	up 0.1%
Midland	up 10.4%
Odessa	down 2.7%
San Angelo	up 4.1%
San Antonio	down 1.6%
Sherman-Denison	up 2%
Texarkana	up 1.1%
Tyler	up 1%
Victoria	up 6.2%
Waco	down 1.7%
Wichita Falls	down 2%

Nationally, prices dropped 4.5 percent last year for the overall index (which includes financings and refinancing) and 8.2 percent based on purchases-only data.

I ran across an article on foreclosures for the State of Texas and what the future may hold in this arena.  I will post an excerpt of the article below from the Dallas Morning News. 

Unfortunately, the statistics show that distressed properties (those that have missed payments or are in the process of foreclosure) are going to be on the rise nationwide and aren't likely to decrease any time soon.  For that reason, I have just gone through some very extensive training from the Distressed Property Institute to obtain the CDPE designation...what that means for you is that I am very knowledgeable in alternatives other than foreclosure for homeowners that are in trouble or behind in their payements.  These options are far better than foreclosure.  If you or anyone you know could benefit from learning about these options, PLEASE contact me at shanetwhite@remax.net or at 512.515.5263.  AND know this, you are not alone in this situation...projections show that 1/2 of the homes sold in 2009 will be distressed properties! 

Here is the article I mentioned at the beginning of this blog:

SENATE TO FOCUS ON FORECLOSURES

AUSTIN (Dallas Morning News) – With 96,000 home foreclosures statewide in 2008, officials are eager to hear the status of Texas’ housing market from real estate experts in the current Senate session at the capitol.

A similar number of foreclosures are expected this year, and at least one in three Texas homeowners will feel the effects of the large number of foreclosures across the state, a Senate committee heard Wednesday.

Texas has fared better than many states even though it saw a surge in subprime mortgages in recent years, said David Long, president of the Texas State Affordable Housing Corp.

More than a third of all home loans in Texas were subprime in 2005 and 2006, a number trailing only Mississippi, according to Long.

Long told the Senate Intergovernmental Relations Committee that by the end of 2010, about one out of every 35 houses in Texas will have been foreclosed upon.

Legislators are expected to consider several measures related to foreclosures in their current session.

  Check out these stats from an article I saw on RECON taken from First American CoreLogic.  This again reinforces the fact that the real estate market in the Austin, Liberty Hill, Bertram, Leander and Georgetown areas have not been affected nearly as bad as other areas of the country.  Now I will warn you that we are continuing to see a decline in our market activities and these numbers are from last year, but this is still very positive news for our area and shows buyers that it is still very safe to buy in our STABLE market!!

HIGHEST HOME APPRECIATION IN TEXAS

SANTA ANA, CALIF. (First American CoreLogic) – Texas continues its trend of weathering the recession better than most other states. The state’s major metros top the nation in home price appreciation over the last year.

Austin–Round Rock leads the country’s largest core-based statistical areas (CBSA) in home price appreciation with a 3.7 percent increase in 2008, according to First American CoreLogic.

Houston–Sugar Land–Baytown experienced a price appreciation of 3.3 percent over the last year, putting it right behind Austin–Round Rock.

Dallas-Plano-Irving homes appreciated 1.92 percent and San Antonio’s homes 0.17 percent, putting them third and fourth in the nation.

Only one other major CBSA, Denver-Aurora, Colo., showed an increase in home price, according to CoreLogic.

Of the 958 smaller communities the study observed, College Station–Bryan experienced the sixth highest home price appreciation, with an increase of 6.78 percent.

Overall, Texas homes saw an appreciation of 1.83 percent in 2008, putting the Lone Star State sixth among all state rankings.

I was sent some information about Austin making the tops of another list!  I thought I would pass along the information to you.  Remember that we have been relatively sheltered throughout the real estate cycles of the last few years and therefore are fairing much better than lots of areas around the country.  Enjoy the article below with excerpts taken from builderonline!

The Healthiest Housing Markets for 2009

Builder, in conjunction with Hanley Wood Market Intelligence, debuts its metric for determining markets with the best and least potential.

By:

Boyce Thompson

FIVE TEXAS CITIES NAMED HEALTHIEST HOUSING MARKETS

TEXAS (Builder) – Five Texas cities swept the top spots on Builder magazine’s list of “Healthiest Housing Markets for 2009.” (www.builderonline.com/local-markets/the-healthiest-housing-markets-for-2009)

Houston ranked first, Austin second, Fort Worth third, San Antonio fourth and Dallas fifth.

Rounding out the top ten were Raleigh, N.C., Seattle, Indianapolis, Ind., Fayetteville, Ark., and Washington D.C.

To compile the list, Builder analyzed the top 75 housing markets in the country, ranking them based on population trends and job growth, perennial drivers of housing demand. They also looked at home prices and the number of building permits.

And here is their take on the 2^nd top housing market for 2009:

2. Austin, Texas

2008 Total Building Permits: 14,250

Nine years ago, during the tech bust, some builders felt that Austin was too crowded and left. The bloom is back on Austin’s yellow rose now; it moved up the leader board to become the sixth largest home building market last year. Job creation explains the move. While other markets lost employment, Austin added 17,400 jobs last year, 2.31 percent growth rate. It helps that Austin is home to both a major university, The University of Texas, and the state capital. Existing homes cost a little bit more in Austin than other Texas markets, roughly $190,900, but that’s still below the national average. Also, Austin is one of the few metro areas in the country where median prices actually rose in 2008--1.4 percent through the first three quarters of the year. Amazingly, Austin now generates more home building activity than Chicago, which has six times more people.

I wanted to pass along some information about the tax credit that has been passed recently.  The Senate was trying to pass a bill that would have given up to a $15,000 tax credit for buyers this year who bought a primary residence.  While the $15,000 did not get approved, the house and senate did agree on an $8,000 tax credit. While $15,000 would have been better, $8000 will still be a big boost to those buyers who have not owned a home in the last 3 years. Here are the details of the tax credit that was part of the stimulus bill that the President signed into law. 

1.  $8,000 for new buyers: The tax credit included in the economic stimulus legislation is much narrower than the $15,000.00 proposal.  This credit is equivalent to 10 percent of the purchase price of the home–although it’s capped at $8,000 and applies only to first-time home buyers (defined as those who have not owned a home in the last 3 years) and it must be for principal residences. But unlike an earlier $7,500 home buyer tax credit, This one does not have to be repaid.

2.  2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won’t be able to take advantage of it.

3.  Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that’s $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits. 

4.  Refundable: Because the tax credit is “refundable,” qualified buyers can take advantage of it even if they don’t have much tax liability. In other words…unlike the $15,000 tax credit, this tax credit will be refunded to a buyer, if his year end tax liability is less than the credit.

5.  Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.) If you have more questions, please contact me at 512-515-5263.

Shane

Our team just listed a beautiful lot in Georgetown!!  It has great views and nice tree coverage on a street full of custom homes!  It also has water and is ready for someone to build their dream home on...see more about this land for sale in Georgetown here:

http://shanetwhiteteam.com/inc/pmisc?pid=614

I hope everyone has a great weekend!

What another great day here in Liberty Hill...we are finally getting some much needed rain (although not enough)...but at least it is better than none at all.  We continue to see some increase in real estate activity around the Liberty Hill and Bertram areas with both buyers and sellers.  If the stimulus package passes with the 10% tax credit up to $15,000, that should really help buyers get off the fence and make purchases...that tax credit is a true credit and would not be a loan to be repaid (with some stipulations).  So, keep an eye on that for sure if you are thinking about buying...that is a great incentive.

We just listed a great property!  It is a lovely home on 1 acre.  The seller has additional acreage they may sell that has a barn and river frontage as well.  They will give an access easement to the river with the sale of the home on 1 acre, so that is a great perk!  You can see more about the house here:

http://shanetwhiteteam.com/inc/pmisc?pid=612

I hope you have a wonderful day, and please let us know if there is anything our team can do for you in real estate!!

The Shane T White Team has just listed a 1 acre lot in the highly sought after Cierra Springs subdivision in Liberty Hill, TX.  This neighborhood is private, and this lot sits in a cul-de-sac!  You definitely want to check this one out...

http://shanetwhiteteam.com/inc/pmisc?pid=606

Let us know if you need any more information or want to see this one in person!!

John Bowen Construction is in the process of building another great custom home in one of Liberty Hill's popular subdivisions!  This home sits on a 1 acre lot in the Liberty Hill ISD!  You can check this one out here:

http://shanetwhiteteam.com/inc/pmisc?pid=605

I wanted to let you know that we just listed a great CUSTOM Home for Sale in Liberty Hill, TX.  This brand new home has 4 bedrooms and 2 baths and sits on a 1 acre lot.  There is still time for you to pick out colors if you hurry, so if you or someone you know might be interested, don't miss this one.  Check out more here:

http://shanetwhiteteam.com/inc/pmisc?pid=604

I thought I would shed some light on the small trend I am seeing in our marketplace to give a POSITVE spin on what is going on.  FIRST, I tell you that you need to turn off the news and quit listening to the media...they are spinning each and every statistic or story to make it sound much worse than things really are. 

Take the Austin American Statesman for example, they had a story from Jan. 28th that was printed with an incendiary headline (“Key home price index falls a record 18.2 percent; www.statesman.com/search/content/business/stories/other/01/28/0128homeprices.html ), and included no information on Central Texas specifically.  The article was a reprint from the New York Times, and the statistics did not include numbers from any Texas market except the Dallas Metro area. The Central Texas housing market remains relatively stable, and at this point one of our biggest hurdles is negative public perception fueled by articles like these.

We have seen the buyer activity in the Liberty Hill area pick up over the last 3 weeks, both in leads we are generating from our marketing systems, but also from other agents showing our listings, giving us feedback, and writing offers and contracts.  We typically see a pickup like this after the first of the year, but with the huge slow down starting in September, I wasn't sure what to expect this year.

Interest rates are still low, prices have come down just slightly but are stable now, so it is a great time to buy and get back in the market.  Sellers should also see the opportunity that if they price their properties properly, the competition at this time of the year is less, therefore there is a better chance of snagging one of the buyers that is in the market.  All in all, I am pleased with the activity I am seeing, and truly believe that if we all would turn off the media and look at the local trends and numbers, we would do even better than we are now!!

Have a great Tuesday and rest of the week, and let us know if we can help you in selling or buying in the Liberty Hill, Leander, Bertram, or Georgetown areas soon!!