More good news about the Austin market has just come out from Forbes!!  I hope everyone remembers that our real estate market is local and that if you have questions about how things are moving, to please contact our team at 512-515-5263.

See the Forbes article below: 

Forbes Ranks Austin Among Best Places for Business and Careers In a recent March story, Forbes.com ranked Austin No. 8 on the list of Best Places for Business and Careers. This year Austin jumped 39 spots compared to last year's rank of No.47. The study explored 200 metropolitan cities and examined each on 11 different criteria. Factors such as subprime mortgages, job growth over the past five years and employment projections for 2011 played a major role in improving the city's status. Cities in front of Austin included Raleigh, N.C., Fayetteville, Ark. and Lincoln, Neb. While no metropolis can escape damages of the current recession, this study is a good indicator of the ones expected to turn around the quickest.

 

If you have been paying attention at all to the media and their plans to rescue the economy lately, you know that they have made the decision to buy bonds and mortgage backed securities in hopes of bringing down long term interest rates.  It looks like early on that this is working.  Interest rates across the country on average have dropped under 5% to their lowest levels in more than 30 years.  Whether you are a buyer or a seller, this is good news.  For potential sellers if you have a higher interest rate and don't plan on selling right now, it might be time to contact your lender about refinancing.  If you are a buyer, there is NO BETTER TIME TO BUY with rates under 5% and with the $8000 tax credit available to many in 2009.

If you are in the market and want to take advantage of this incredible time to buy, take advantage of the $800 tax credit, and the historically low interest, visit our website www.shanetwhiteteam.com .  You can also sign up to recieve a list of REO or foreclosure properties at http://shanetwhiteteam.com/reo_foreclosures .  But don't wait.  These rates and incentives won't be around forever!!

You can call us at 512-515-5263 as well to set up a private showing of any home for sale that you are interested in.

I have been watching the media and listening to all that is going on in our economy and housing markets, and this question keeps coming to my mind.  We are still hovering around ALL TIME LOW interest rates that will surely start going up as soon as the economy has signs of improvements.  60 minutes had Ben Bernanke on their show a few weeks back and after hearing about his interview its clear that as housing improves, interest rates will have to go up.  So, that really is the million dollar question.  Should I buy a house now, or should I wait and see if prices fall ?  But what if interest rates go up then where do I stand ?   This chart REALLY shows the benefits of buying a home now vs waiting.

So if the interest rate increases 1% (which can  happen very quickly as the markets change) you will have to see prices drop another 10% just to "break even" from buying now!!

For more information or to find some homes that really make sense to buy now, give us a call.  Now may be the best time that we have seen to invest in real estate

The government has launched a website to help homeowners find out if they are eligible to participate in the "Making Home Affordable" loan modification and refinancing program. 

The site is http://makinghomeaffordable.gov and shares information about how this program works and who is eligible for assistance.  This is the same $75 billion program you may have heard of recently in the media.

  The homeowner should have the following available:

*  Information about your first mortgage, such as your monthly mortgage statement.

* Information about any second mortgage or home equity line of credit on the house.

* Account balances and minimum monthly payments due on all of your credit cards.

* Account balances and monthly payments on all your other debts such as student loans and car loans.

* Your most recent income tax return.

* Information about your savings and other assets

* Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.

* It may also be helpful to have:  A letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.) if applicable.

If you or anyone you know might benefit from this site, please pass it on.  They can also call me for a confidential consultation to discuss what options they might have if they are behind on their mortgage payments.  You can also visit www.avoidforeclosureinaustin.com for a wealth of informtion.

I am currently working on implementing a search feature into our website here for buyers to have the ability to search for REO or foreclosure properties only if they want.  We already have a page set up where you can request those properties and we can do the search and send it to the buyer, but hopefully over the next several weeks, the search feature will be available on the site.  We will also be able to send out FreddieMac properties that are on the market or that are about to become available...giving our clients a head start to those properties before they are even listed for sale.  It is a great time to buy real estate right now, and foreclosure properties can sometimes offer good deals!  Keep looking for the new search feature coming soon!!

Our team just listed a brand new home for sale in Liberty Hill, TX in the gated Sundance Estates!  This home has tons of  features including extensive tile floors, high ceilings, granite countertops, jack and jill bath, gameroom and seperate bonus room.  It features 4 bedrooms, 3 1/2 baths with a formal dining and living area.  All on over 1.5 acres in the highly acclaimed Liberty Hill ISD!  Check out more info and pics here:

 

http://shanetwhiteteam.com/inc/pmisc?pid=637

If you would like to setup your private showing of this great house, please contact us at 512-515-5263 or shanetwhite@remax.net 

One of my good broker friends (Wally Wilson) sent me an email with information on the Housing Recovery Plan this morning that I wanted to pass along.  It does a pretty good job of explaining what is going on at this point.  Hope you enjoy and have a great day.

Shane

 

Understanding the Housing Recovery Plan

The recently announced Homeowner Affordability and Stability Plan is a sweeping effort to stem the national tide of foreclosures and to help as many as 9 million homeowners stay current on their mortgages. Here's a look at what the plan will entail and who will be eligible for assistance.

Basics of the Plan

The nationwide foreclosure problem has caused a ripple effect of lowering home values throughout individual communities. The Obama administration's plan marks the largest government response since the beginning of the housing crisis. At its core are three main strategies:

1.    Secure refinancing for as many as four million responsible homeowners, with the goal of making monthly payments more affordable

2.    A $75 billion stability initiative to encourage lenders to modify loan terms for three to four million mortgages at risk of foreclosure or already in foreclosure.

3.    Additional financial support for Fannie Mae and Freddie Mac.

Housing Affordability

Under traditional rules, homeowners who owe more than 80 percent of their home's value cannot easily refinance their mortgage. Many homeowners who have paid money down and are current on their monthly payments have seen their home's value drop enough that they lack the necessary equity to qualify for refinancing.

Under the Housing Affordability and Stability Plan, qualifying homeowners would be able to refinance their mortgages to current rates, making monthly payments more affordable. For those borrowers who are currently facing high rates following an ARM reset, the plan offers a chance to switch to a lower fixed rate mortgage.

Who Qualifies - In order to qualify for this portion of the plan:

• Borrowers must have mortgages guaranteed by Fannie Mae or Freddie Mac.
• Homeowners must owe more than 80 percent of their home's current appraised value.
• Homeowners must not owe more than 105 percent of the home's current appraised value.
• Borrowers must be current on monthly mortgage payments.

Homeowners with second mortgages will also be eligible but with additional restrictions. Along with the 105 percent limit, borrowers must be able to prove that they can still meet payment terms on the original loan and the lender must agree to keep the original loan in "primary position" in terms of monthly payments.

Who Doesn't - While some details of the plan have not yet been released, initially it appears that the following groups of borrowers may not qualify for this portion of HASP:

• Borrowers who owe significantly more money than their home is worth.
• Most borrowers whose mortgage exceeds the $417,000 conforming limit.

Housing Stability

The second portion of the plan is designed to provide relief to homeowners whose loan payments have risen to 40 or even 50 percent of their monthly income. The plan's goal is to reduce the total monthly mortgage payments for struggling homeowners. To do so, the Financial Stability Plan has allocated a total of $75 billion in incentives that should encourage lenders to modify loan terms.

Some components of the plan include:

• Shared Modification Responsibility: lenders will be responsible for modifying loans so that the borrower's payment is reduced to 38 percent of their monthly income. Following that point, the initiative will match further reductions dollar for dollar down to 31 percent.
• "Pay for Success" Incentives for Servicers will be awarded when borrowers stay current on a modified loan, in addition to an up-front incentive paid at the time a loan is modified under the program's guidelines.
• Borrower Incentives will entail a monthly balance reduction payment applied to the loan's principal as long as the borrower remains current on payments/
• Early action incentives will include payments to both the servicer and borrower when an at-risk loan is modified before payments become delinquent.

Who Qualifies -

• Borrowers whose combined mortgage balance exceeds the current market value of the home
• Individuals with high debt/income ratios

Who Doesn't - The administration has indicated that the following categories of borrowers will not qualify for this portion of the plan:

• Borrowers who do not live in the home
• Speculating investors or home flippers
• Borrowers whose mortgages exceed the Fannie Mae/Freddie Mac conforming limits

Support for Fannie and Freddie

Using money authorized by congress in 2008 under the Housing and Economic Recovery Act, the Treasury Department is increasing its funding commitment to Fannie Mae and Freddie Mac by $200 billion total. Specifically, Treasury will increase Preferred Stock Purchase Agreements to $200 billion each (from the previous level of $100 billion each).

The overall goal behind this move is to increase confidence in the two mortgage giants and by doing so support the continuation of low mortgage rates.

Other Provisions in the Plan

• $1.5 billion in relocation and other assistance for renters displaced as a result of landlord foreclosure.
• $2 billion in neighborhood stabilization funds.

The National Association of REALTORS just published an article I hope that everyone gets a chance to see.  It does talk about pending home sales being down, which we have definitely seen in our area over the last 6 months.  BUT, more importantly it talks about affordability being at an all time high, and that now is the time to buy!  I will include the entire article below, but remember, these are national numbers.  If you would like more local information as real estate is very local, contact me at 512-515-5263 or shanetwhite@remax.net . 

 

Pending Sales Down, Affordability at Record

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in January, fell 7.7 percent to 80.4 from a downwardly revised reading of 87.1 in December, according to NAR's latest report.

The index is 6.4 percent below January 2008 when it was 85.9.

The index is at the lowest level since tracking began in 2001, when the index value was set at 100.

Lawrence Yun, NAR chief economist, says the downturn in the economy weighed heavily on the data.

“Even with many serious potential home buyers on the sidelines waiting for passage of the stimulus bill, job losses and weak consumer confidence were a natural drag on home sales,” he says. “We expect similarly soft home sales in the near term, but buyers are expected to respond to much improved affordability conditions and from the $8,000 first-time buyer tax credit.”

Breakdown By Region

Here's how the PHSI fared across the country:

• Northeast: dropped 12.7 percent to 57.8 in January and is 19.7 percent below a year ago.
• Midwest: declined 9.2 percent to 72.6 and is 13.8 percent below January 2008.
• South: fell 11.9 percent to 82.2 in January and is 9.1 percent below a year ago.
• West: rose 2.4 percent to 103.6 and is 13.5 percent higher than January 2008.

Buying Power Rises Significantly

NAR President Charles McMillan says it’s ironic with the weak housing market that affordability conditions have improved dramatically.

“Housing affordability is at a record high – the buying power of a typical family has risen significantly,” McMillan says. “With the drop in interest rates, a median-income family can afford a home costing $20,000 more than a year ago for the same monthly mortgage payment. With the strong housing stimulus, we are hopeful inventory will get trimmed and help prices to stabilize in many areas by the end of this year.”

Indeed, NAR’s Housing Affordability Index rose 13.6 percentage points in January to 166.8, a new record high. The HAI, a broad index of affordability using consistent values and assumptions over time, shows that the relationship between home prices, mortgage interest rates and family income is the most favorable since tracking began in 1970.

The HAI indicates a median-income family, earning $59,800, could afford a home costing $283,400 in January with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest; affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of that amount. A year ago, the typical family could afford a home costing $263,300.

Yun: Hopeful for Spring Turnaround

“Conditions have been aligning very favorably for home buyers with the exception of consumer confidence," Yun says. "But I am hopeful that sales will turn around by late spring and early summer because history suggests that home sales can rise even in times of job losses when housing affordability rises.”

Source: NAR

For many property owner's in today's market, renting their houses is a better option than selling.  But if you decide to turn into a landlord, there are things you will want to remember and think about.  I found some tips from an article in the Washingtong Post I thought I would share for anyone thinking about turning their property into a lease property or even those thinking about becoming investors in today's great buyer's market!!

6 Tips for Home Owners Who Turn Into Landlords
Home owners who decide to rent out their properties have to stop thinking of themselves as home owners and instead consider themselves as running a small business, experts say.

Thinking like a businessperson means focusing on the monthly cost of maintenance, mortgage and taxes, as well as being aware of landlord-tenant regulations and avoiding liabilities.

Here are key issues to consider:

• Set a fair rent. Setting the right price will make it more likely that a landlord will be able to keep the place rented.
• Understand landlord-tenant rules. Running afoul of landlord-tenant regulations and rules regarding security deposits can be costly.
• Screen applicants. Eliminating potential tenants who can’t pay or who won’t take care of the property is very important.
• Lay out the rules in a lease. Widely available sample leases can help. If you have questions, ask an attorney.
• Consider a property manager. Despite the expense, turning the job over to experts can help a landlord come out ahead.
• Talk to the condo association. If the property is a condominium, be prepared to deal with a host of regulations.

Source: The Washington Post, Renae Merle (02/28/2009)

The Shane T. White Team just listed a home for sale in Liberty Hill, TX in the fabulous Sundance Ranch!  This custom home sits on a beautiful wooded lot with a wet weather creek along the back.  You can also enjoy some incredible views across the hill country from your back deck that also overlooks a beautiful inground pool!  There are not many homes available in the highly sought after area, and especially not that many at this price...you can check out more information, pictures, and virtual tour here:

http://shanetwhiteteam.com/inc/pmisc?pid=630

If you would like to set up a private showing, please contact us at 512-515-5263 or email me at shanetwhite@remax.net

I have just returned from the RE/MAX International Convention where I heard lots of things about our current state of the market.  BUT the one thing that kept coming up is what an incredible time it is to BUY!  Interest rates are still hovering at all time lows, and prices are still great.  I received a great email this week with some information that I definitely wanted to pass along...I hope you enjoy, and when you decide it is time for you to buy, PLEASE give me a call.  Our team is here to help.

 

An Opportunity of a Lifetime

Warren Buffet says, "A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful." While Mr. Buffet was writing about buying stocks, the same can be said for housing today.

Housing issues have permeated the economy both locally and nationally. This week, one index that tracks housing prices, S&P/Case-Shiller Home Price Indices, indicated home values fell the most since 1968, declining 18.5% in December from the year before.

Looked at from a different perspective, this means home prices have fallen to levels not seen in six to twelve years, depending on individual markets. Following the Case-Schiller report was the report from the National Association of Realtors (NAR) recently. The NAR reported that home prices for the month of January fell by 14.8%.

The bright spot though in contrast was that the number of homes sold in December increased. Home buyers from coast-to-coast have been buying distressed properties at the rate of 45% of total sales.

Recognizing that now is the time to buy, everyone – from those looking to purchase their first home to seasoned real estate investors – is buying homes today. Bruce Norris, the head of an investment group in Southern California, expects to buy at least 100 homes this year as, "This is the buying opportunity of our lifetime."

Fundamentals Point to Strength
The basic fundamentals of the housing market point to higher prices ahead. Almost half of the properties being sold today are existing homes that are either owned by banks or homes on which banks are accepting short sales, allowing them to be sold for less than what is owed.

New homes or homes under construction are near all-time lows. The country's demographics point to more potential buyers coming into the housing market than projected inventory in coming years. This all points to higher prices on the horizon as demand will be greater than supply. This is supported by the fact that the inventory of unsold homes fell 2.7% in January.

Why Buy Now?
Three very important reasons to buy now are:

• Interest rates are near all time lows;
• Home prices have declined to levels not seen in years; and
• Qualified first-time home buyers are now eligible for up to an $8,000 tax credit.

Lower Prices Don't Always Equate to Lower Payments
One final point to consider. Even if you believe that home prices will continue to decline, it's very difficult to believe that interest rates will remain at these low levels.

Did you know that even if home prices were to decline 10% but also during that time, interest rates available for home loans were to increase by 1.00%, your monthly principal and interest payment would actually be higher? It's true. So, if you are thinking of buying or the end of your lease is near, get busy and get in the game. To quote Mr. Buffet again, "If you wait for the robins, spring will be over."