September 2009

FORECASTS THAT FED WILL INCREASE RATES

 

“BE WILLING TO MAKE DECISIONS.” General George Patton. And that’s exactly what the Fed did last week at their regularly scheduled Federal Open Market Committee meeting. But just what did they decide…and what do their decisions mean for home loan rates?

 

The Fed said they are going to ration out the remaining commitment of Mortgage Backed Security purchases through the first quarter of 2010. There will be no additional buying, but instead, a longer weaning off of the program. There was some speculation about the Fed increasing the amount of buying above the $1.25T committed to, and last week’s statement is the Fed’s nice way of saying “no.” They will not be buying more in quantity, but what they will do is attempt to provide a smoother transition to normal market conditions.

 

It is a given that once the Fed ceases its purchases, that interest rates will climb significantly higher…most likely back above the 6% area. So instead of a hard transition with a large bump in rates, the Fed is attempting to allow rates to gradually rise. This means that waiting to purchase or refinance will very likely mean a higher interest rate.

 

(SOURCE: CRESCENT MORTGAGE NEWSLETTER)

Much Needed help for Struggling Homeowners

http://www.brokeragentsocial.com/article.php?article_id=503

 

This article discusses in understandable language (thankfully!) a program that was put into place in March to help homeowners find out if they qualify for restructuring of their mortgage. It has phone numbers where people can call to see if they qualify. Excellent news, and we need some!

 

651 Kalypso Circle

Take a look at this wonderful home in Kalypso subdivision in Auburn, AL! Home has been well maintained and features many upgrades. Great lot with a full fenced in backyard. Home also has a large rear deck perfect for entertaining. Home sits back on one of the larger lots in the neighborhood. Well designed functional floor plan make this home stand apart from the rest! Neighborhood association dues are $200 per year.

Schedule a showing today! Contact me at 334-444-2431 or ryanledwards@yahoo.com

802 West Longleaf Dr. Unit #37

Leased at $1200 per month until August 2010. Wonderful investment opportunity! 4 bedroom 4 bathroom unit features large open living area with high ceilings. It is located on the tiger transit route. Unit in excellent condition and very clean! Backs up to the woods with lots of privacy. All appliances sold with house. HOA includes water, garbage, and yard maintenance. Condo fee $110 and water $80 per month.

Time is Running Out!

If someone told you they would be willing to give you free money most people would just laugh and move on. Well in the case of the homebuyer tax credit, it really is free money. I am sure most of you have heard about it. Currently we are working with several first time home buyers who are eligible for the credit but are unsure about the details. I wanted to include the basic who, what, when and where questions to clear some of the confusion up.

Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.

To qualify as a “first-time home buyer” the purchaser may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer’s income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can they Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

Right now is a great time to purchase a home. Inventory is high, rates are low, and the $8000 tax credit is icing on the cake. BUT, time is running out. The credit runs out December 1^st, 2009. Closings usually take 30 days and the purchase must be closed by December 1^st, 2009. If we can answer any questions regarding the tax credit or anything else, please feel free to give us a call. Don’t let this wonderful opportunity pass you by!

August Housing Statistics Available for Auburn, Opelika, and Lee County

Under the “Resources” link on our homepage, there is a choice on the drop down menu for “monthly housing stats.” Each month, we post these. Here is the latest link:

http://www.realestateinauburn.com/resources/monthly-housing-stats/

The condo market is still chilly, but houses in Auburn and Opelika continue to sell. Sales were hopping at the beginning of the third quarter, then things cooled down a bit. Here in the last couple of weeks, every realtor I talk with says that sales have picked up again?? Interesting….

Dave Ramsey refers to real estate investments as a great inflation hedge. My husband and I just finished the Financial Peace University Class. It was incredible, and we recommend it to everyone. At our first session, we were introducing ourselves, and my husband flat out told the group he didn’t want to be there! Haha….He has had a change of heart, and he drinks the Debt Free Kool Aid with me now!

Hope everyone is getting their Thursday off to a good start, and War Eagle!

Auburn, AL voted one of the best places to live!

Auburn, AL was just named the second best place to live in the United States by U.S. News and World Report! Pretty cool!

Here’s the full story….

http://www.usnews.com/money/personal-finance/real-estate/articles/2009/06/08/best-places-to-live-2009.html

Fall in Auburn, Alabama

Fall is my favorite season. This is when my wedding anniversary is, and overall, it is just some of the prettiest time in the state. Gorgeous colors everywhere, and crisp bright light shining through golden leaves. This past weekend some friends from church invited my husband and me up to Blue Ridge, Georgia. The house was amazing! 5 bedrooms with 12 televisions and even more rocking chairs! We watched Sports Center all day and cheered on the Auburn Tigers to their victory against Mississippi State Saturday night. It was a great time with good friends.

Great week in Auburn Real Estate

Who says the real estate market is slow? Don’t tell that to my partner and I. What a great week it has been! Four new listings with 2 more on the way and 3 home sales make for a busy week!

New listing at 1210 Lizlin Drive

New listing at 535 Sherwood Drive

New listing at 12549 Highway 51

New listing at 447 Longleaf Drive

 

Throw in the fact that Auburn’s first football game was last weekend and you have yourself a dream week! I believe Annie and I are an amazing team. We both enjoy what we do and enjoy helping others. Our office is booming as well. Agents are hustling in and out of the office. Our office managers Charity (my wife) and Angela are staying crazy busy with plenty of new listing files and sale files on their desk. Times are good at Prudential Preferred Real Estate!

We still have a long way to go, but things seem to be rebounding nicely. Everything is not always as bad as the news makes it out to be. Just stop by our office and see for yourself!

447 Longleaf Drive Unit #310

Call your investors!! This is the lowest price 2 bedroom unit in the complex! This unit is in a great location in the complex near the pool and overlooking the lake. Bottom floor unit comes with all the appliances, including refrigerator, washer, and dryer, and has a huge storage closet! Condo is move in ready and has just been repainted! Some of the gated complex amenities include a beautiful pool, fitness room, clubhouse, playground and more! Condo fee is $144 per month.

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