Feeds:
Posts
Comments

Everybody can benefit!

December 11, 2009 by chappellteam

Wow, there has been a lot going on in the housing market lately! I recently assisted a buyer moving to The Woodlands from the Detroit, Michigan area. Their incentive to move here was to be close to children and grandchildren. Coming from a real estate market much different than ours, these buyers were finally able to sell their home after 3 long years of being on the market in Michigan. Plus, the value of their home in Michigan decreased by $40K from contract to closing due to appraisal issues – a very hard situation. The light at the end of the tunnel for them was being able to take advantage of the $6500 tax credit on the purchase of their new home in The Woodlands.

In case you haven’t heard, there is up to an $8000 tax credit for first time home buyers. For move-up buyers or downsizing buyers who qualify for a tax credit can get up to a maximum $6,500. The stipulations are as follows for the $6,500 credit are:
• Must have lived in your current primary residence for the last 5 of 8 years.
• Must not exceed income of $125,000 for a single person or $225,000 for a married couple.
• The purchase price must not exceed $800K

This is a great incentive for the “empty nester” wanting to downsize or perhaps a homebuyer from 2004 and before that is ready to increase their current home size and/or value. What a valuable gift, just in time for Christmas!
- Ann Dee, Buyer’s Agent

Posted in Real Estate Advice | Leave a Comment »

$8,000 Homebuying Tax Credit Has Been Extended!

November 6, 2009 by chappellteam

$8,000 Tax Credit - you still have time!

$8,000 Tax Credit - you still have time!

You have been living in a hole if you have not heard about the $8,000 tax credit available to first time homebuyers or those who have not owned a home within the last 3 years. What you may not have heard yet is that this tax credit, which was once set to expire November 30th, has been extended until April 30th, 2010! Not only did the Senate vote Wednesday to extend the tax stimulus package, but they have glammed it up to include current home owners who can now receive up to $6,500! To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30. The credit is available to purchase a principle home (no vacation homes this time!) costing $800,000 or less by individuals with incomes up to $125,000 and joint filers with incomes up to $225,000. Critics say the tax credit is poorly targeted because the majority of the people taking advantage of the credit would have purchased a home anyway…how do they know that? As REALTORS we have talked to countless buyers who are in the market at this time specifically to take advantage. We are thrilled with the results and it could not have come at a better time as we struggle through this topsy turvey economic market! The tax credit is equal to 10 percent of the purchase price of a primary residence up to a maximum of $8,000 or $6,500 depending on your situation. Taxpayers claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a payment.

Posted in Uncategorized | 2 Comments »

The Woodlands Foreclosures Decline

November 5, 2009 by chappellteam

Cheering for Good numbers

Something to cheer about

Good news on the Woodlands Foreclosures front. Houston area foreclosures did not significantly increase between the second and third quarters, and there were fewer than last year.

RealtyTrac’s U.S. Foreclosure Market Report revealed that Houston–Sugar Land–Baytown foreclosures increased 1.5 percent between the second and third quarters, and actually fell 8.1 percent from third quarter 2008.

Approximately one out of every 256 area homes, or 0.39 percent, posted foreclosure activity from July to September, ranking Houston 124th in the United States for number of households in foreclosure.

This is a true local blessing. Not only do foreclosures obviously affect the homeowner, they have an exponential negative effect on the neighborhood and broader city market.  I attribute our relative market health to the wise fiscal policy in Texas that prevented homeowners from borrowing 100%+ of their home’s equity using home equity loans. It has made all of the difference in this downturn.

The Dallas area’s 10,700 properties, or 0.45 percent of the whole, that posted foreclosure activity made it the highest in Texas.

College Station–Bryan had the lowest percentage of housing units in foreclosure during the third quarter, with 46 properties, or 0.05 percent.

Excerpts taken from the Houston Business Journal.

Posted in Home Foreclosures | Leave a Comment »

The Fed Acts Again

November 2, 2009 by chappellteam

Federal-Reserve

The Fed Strikes Back

Mortgage bond prices whipsawed down and back up following the Fed meeting

The Fed Fed leaves rates unchanged and said:
Will try to keep rates low for extended period
Economic activity continues to pick up
Markets roughly unchanged since last meeting
Inflation to remain subdued
Monitoring balance sheet to make adjustments to credit/liquidity programs as needed…>THIS statement has some concerned.
In addition, they indicated they will only spend $175 billion to buy AGENCY debt, down from the $200 billion originally announced. They attributed the reduced purchase amount to limited availability of Agency debt.

Additional debt supply concerns are weighing on the market as traders prepare for next week’s auctions of $40B 3Y Monday, $25B 10Y Tuesday, and $16B 30Y Thursday.

The ADP employment report showed 203k jobs lost, weaker than the expected 198k loss. On the surface it appeared to be bond friendly, but was an improvement from the prior month’s loss of 227k.

Posted in Mortgages | Leave a Comment »

Woodlands Home – $150,000 price cut

October 2, 2009 by chappellteam

I'll take one

I'll take one

I just showed a home this week that started at $460,000 and is now reduced down to $310,000!

We don’t see too many instances like this in The Woodlands home market so if you are in the market for this price range and want to take advantage of recent rate drops, drop me a line and I can tell you about it.   It is in really terrific shape and there is a good chance you could close in time to nab the $8,000 government home buyer tax credit before it expires, too.

“Contact us” and I’ll give you the details…

Posted in Uncategorized | Leave a Comment »

The Woodlands Mortgage Rates Dropped to 5-month lows

October 2, 2009 by chappellteam

Buy a Home... Get a few thousand dollars

Money is cheap today

If you are afraid you have missed the “bottom” of mortgage rates, you may have a window of opportunity.  Mortgage rates in The Woodlands have dropped to levels not seen since the first week of May.

Conforming loans are down to 4.875% with no points.

Combine this with the expiring first-time homebuyer tax credit of $8,000 and you have a couple reasons to make a move now if you are considering it.  Call or write if you would like some lender recommendations for a refinance or purchase pre-approval.  We can recommend some time-proven experts in luxury home loans, government loans, and first-time homebuyer loans.

—————————————————

Search the entire Realtor MLS for all homes for sold in The Woodlands and Montgomery County

Posted in Uncategorized | 1 Comment »

The Woodlands First-Time Home Buyer Tax Credits

September 28, 2009 by chappellteam

Don't worry... you have 13 days and 11 hours to find the home of your dreams

Don't worry... you have 13 days and 11 hours to find the home of your dreams

Kenneth Harney wrote an article for the Washington Post today answering the question that has been discussed with increased intensity recently: “Will Congress extend the 1st-time home buyer credit that is set to expire on November 30th?”

The intensity is due to the contract period timing in real estate. In order for a buyer to just make the deadline, they would have to go into contract on a home 30-45 days prior to November 30th in order to get their loan underwritten, appraisal completed, and undergo the requisite number of cheetah flips and hoops to jump through as required by lenders these days.  So in reality, this tax credit expires for most buyers  in 15-30 days.

The tax credit has had a very strong impact in The Woodlands and Montgomery county according to many agents and builder sales reps.  Many entry-level and mid-range local builders, they attribute a significant upturn in their sales over the past few months to this $8,000 carriage that is about to turn into a pumpkin.

Talk of this extension is a double-edged sword.  By discussing the possibility of an extension, the main element that makes this credit successful – the sense of urgency – is diluted.  On the other hand, we know that if the credit is not extended before it expires, it will probably not be resumed and extended afterwards.

The tax-payer in me has mixed feelings about the tax credit.  Most people will not have to pay it back – they only have use the purchased home as a primary residence for 3 years and they have no repayment obligations.  Essentially a program like this is like the “cash for clunkers” program – it borrows buyers from the future.  Buyers who were very early in the buying cycle have accelerated their buying decision because of this artificial sense of urgency. I doubt that it has “created” buyers who would otherwise not have bought in the next 2-3 years.

Then again, we are spoiled here in the Woodlands  real estate market. I was at a national real estate conference just a couple months ago and two Las Vegas agents claimed that 80% of the homes for sale in their market were advertised as short sales and 13% were bank-owned for sale… that only left 7% for sale by normal people under normal circumstances.  The impact on all homewoners in Vegas is hard to even fathom and I imagine they’ll take any help they can get.

Posted in Uncategorized | 1 Comment »

East Shore, The Woodlands: Then and Now

August 8, 2009 by chappellteam

East Shore The Woodlands TexasThere was a huge amount of excitement when The Woodlands opened the East Shore neighborhood between Lake Woodlands and Grogan’s Mill Road.  Speculative lot sales drove much of the activity as higher-end buyers in the booming ‘05 & ‘06 market feared that waiting would mean escelated lot pricing and scarcity.

Today, The Woodlands East Shore is definitely a beautiful community from 3-story brownstones to the 10,000 SF+ palaces along the water.  However, sales in this micro-market have declined to a slow, painful drip for those homeowners who need to move on from the well-done neighborhood.

The signs of owner motivation and distress are evident by the “For Sale or For Lease” signs prominent in the neighborhood. These signs are a unique tell that the owners are now at the point that they want to move on by any and all means.  Homes for sale in East Shore are lingering on the market and selling in many cases below what they cost to buy new.  Homes for lease are leasing at such a steal that it the discounts are drastically unique in The Woodlands rental market.

In most homes, a good rule of thumb for monthly rental value is 1% of the home value.  In most cases, a $300,000 home will rent for $3,000 a month and so on. In The Woodlands East Shore today, I saw several $600,000+ townhomes and homes asking for +/- $3,000 per month.  That makes East Shore an amazing rental opportunity.  For what many people are paying for a standard home in The Woodlands, they could have the premier location and amenities of a like new East Shore home instead.

What will reverse this trend?  I think The Woodlands East Shore is in this situation because it finds itself in what I call the “discretionary price range.”  In The Woodlands, this is that $600,000 – $700,000 price range where some homes can sell for that value based on their features, upgrades, location, etc.  However, buyers have the choice to buy other homes of equivalent size at 20% lower cost.  In times like these, people are less likely to pay the 20% premium and will settle for the home that still meets their needs and does not have the bells and whistles.  When people start feeling more confident about their economic security, then I think The Woodlands East Shore will recover its former glory, complete its development and the current owners will benefit from their investment and tactical patience.

Posted in East Shore | Leave a Comment »

Benders Landing’s High-end is Having a Hard Summer ‘09

August 5, 2009 by chappellteam

The Bender's Landing Marquis

The Bender's Landing Entrance

It has been a difficult summer for Bender’s Landing Sellers $900,000 and above… for that matter, it has been a difficult 2009 for them.  According to the local Realtor MLS that reports all Realtor home activity, 0 homes have sold in Bender’s Landing in 2009.

The reason is not apparent.  Bender’s Landing is very popular because of a few important unique characteristics.  The two most prominently known are its low tax rate and its large, spacious lots.  The tax rate in Benders Landing is approximately 2.1% as opposed to comparable neighborhoods in The Woodlands and elsewhere in Montgomery County that are more typically 3.1%+

The lots vary throughout the development but average 1 acre which is a rarity in The Woodlands.  Bender’s Landing also has the advantage of its close proximity to the Hardy Toll Road which is the fastest way from the northern Houston suburbs into Houston propper.

I am personally familiar with one custom home for sale at $895,000 that sits on 2 private, well-manicured acres, boasts 6,100 SF, and in-home technology that would impress your most picky gadget-guy or gal. Why this home has not launched a heated bidding war at its asking price of $147 per square foot is beyond me.

It is most baffling when comparing the $900,000+ homes in Bender’s Landing to those in The Woodlands.  In 2009, 45 homes sold in The Woodlands at the $900,000+ price point at an average of $201 price per square foot.  This is an average of 37% higher than the before-mentioned Bender’s Landing gem listed at $147 per square foot that has not sold!  Comparing lot sizes, the average sold Woodlands home is 35,000 square feet versus the 90,000 offered in Benders Landing. Can somebody explain this to me?

I know that some buyers only want to consider The Woodlands but I don’t think that can explain this fully.  To be fair, The Woodlands currently has 148 homes listed in the $900,000+ price range with an average days on market of 196 (yikes) which is no picnic for those home sellers either… but at least they have had the 45 sales this year whereas Bender’s Landing has been shut out.

The world will not seem like a safe or fair place to me until the 2-acre resort at 3415 W. Bender’s Landing sells at its $895,000 “steal me now” price.  Will somebody do something about that?

———————————————————————————————————

Posted in Bender's Landing | Leave a Comment »

Upside Down Does not have to Mean Foreclosure

August 4, 2009 by chappellteam

Mortgage imageWhat does being “upside down” in your house really mean?  The number of upside down homeowners – those who owe more on their mortgages than their home is now worth - has been growing dramaticaly since 2006 as real-estate prices started to tumble in some areas.  By some estimates, between one in six and one in eight homeowners is in that position nationwide, most of them people who bought homes in the past few years or who put down small or no down payments.

This is a worry since owing more than your home is worth is the first step toward foreclosure.  And it’s a concern because foreclosures are roiling the financial markets and, closer to home, they drag down our neighborhoods.  (Most people who still have equity, by contrast, would rather sell their houses at a loss than lose what’s left of their investment.)

In response to concerns about rising foreclosure and delinquency rates, federal regulators are studying possible new programs aimed at needy homeowners.  There are concerns that such programs could attract a flood of applications from those who don’t truly need assistance or encourage lenders to push homeowners into foreclosure.  At the same time, lenders such as J.P. Morgan Chase and Bank of America have committed to working on new loan terms for the most-distressed homeowners.

But experts who have studied previous sharp housing downturns in Texas, California, New York and Massachusetts say that being upside down, while unpleasant, doesn’t lead huge numbers of homeowners to default on their mortgages and end up in foreclosure.

A study was done of more than 100,000 homeowners who were upside down in Massachusetts in 1991 and the study found that just 6.4% of them lost their homes to foreclosure over the next three years, according to a paper published in the September Journal of Urban Economics.  The vast majority of homeowners simply continued paying as usual because they focused on the affordability of their payments, not on what they owed, and they believed home values would eventually recover.

It was found that homeowners typically lost their homes only after at least two things happened: Their home values dropped, and they either couldn’t afford the payments or stopped making payments after losing hope that prices would eventually recover.

Typically, homeowners fall behind after a life change such as a job loss, divorce or serious illness.  In the current downturn, foreclosures are higher than in previous cycles because more homeowners reached beyond their means to buy their homes and simply can’t keep up the payments.

Posted in Home Foreclosures | Leave a Comment »

« Newer Posts - Older Posts »