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Home Prices Continue Rebound
October 27, 2009 by Becky Smith · Leave a Comment
Home prices continue rebound
Case-Shiller index shows fourth straight month-over-month increase. Year-over-year decline moderates more than expected.
Home prices continue rebound Case-Shiller index shows fourth straight month-over-month increase. Year-over-year decline moderates more than expected. feed://rss.cnn.com/rss/money_realestate.rss Paste this link into your favorite RSS desktop reader See all CNNMoney.com RSS FEEDS (close) By Ben Rooney, CNNMoney.com staff reporter Last Updated: October 27, 2009: 10:06 AM ET Home prices on the mend Nineteen of the 20 metro areas showed improvement in the annual rate of decline during August. Atlanta 2.3% -10.6% Boston 1.2% -4.2% Charlotte 0.6% -8.6% Chicago 2.7% -12.7% Cleveland 1.5% -2.8% Dallas 1.2% -1.2% Denver 1.5% -1.9% Detroit 1.1% -22.6% Las Vegas -1.1% -29.9% Los Angeles 1.8% -12.0% Miami 1.3% -18.8% Minneapolis 4.8% -13.7% New York 0.9% -9.6% Phoenix 1.8% -25.1% Portland 1.1% -12.5% San Diego 2.5% -8.9% San Francisco 3.3% -12.5% Seattle -0.1% -14.7% Tampa 1.4% -17.7% Washington 1.9% -7.9% Source:S&P/Case-Shiller Home Price index Latest home prices The national median home price fell a record 15.6% during the second quarter of 2009. Check how prices fared in your hometown. More Mortgage Rates 30 yr fixed mtg 5.25% 15 yr fixed mtg 4.72% 30 yr fixed jumbo mtg 6.08% 5/1 ARM 4.30% 5/1 jumbo ARM 4.70% Find personalized rates: Rates provided by Bankrate.com. NEW YORK (CNNMoney.com) — Home prices rose for the fourth month in a row during August and suffered a smaller-than-expected annual drop, according to a report issued Tuesday. Prices in the S&P Case-Shiller Home Price index of 20 cities rose a non-seasonally adjusted 1.2% in August. It was the fourth consecutive monthly increase and followed a 1.6% gain in July. Prices were down 11.3% versus August 2008, but that drop was less severe than expected. Analysts surveyed by Briefing.com had forecast an 11.9% year-over-year drop. “Broadly speaking, the rate of annual decline in home price values continues to improve” said David Blitzer, chairman of at Standard & Poor’s index committee. While many U.S. markets remain down versus this time last year, the relative rate of decline “has shown some real improvement,” Blitzer added. Home prices improved on an annual basis in 19 of the 20 major metropolitan markets in the survey. State by state. In California, home prices have recovered notably from depressed levels in recent months, according to the report. Home prices rose 2.8% in San Francisco during August, while San Diego and Los Angeles also recorded price increases of more than 1%. But prices continued to slide in areas that have been hit hard by foreclosures. Prices dropped 0.5% in Cleveland and 0.3% in Las Vegas during August. Overall, the housing market has been stabilizing recently, as low home prices and low mortgage rates, as well as government tax credits, have revived anemic home sales. However, the market remains hampered by unemployment, which rose to a 26-year high last month. And real estate analysts warn that the expiration of a popular new homebuyer tax credit next month could stifle the rebound in home sales. The rebound in home prices could also be hindered by a “wall of supply” coming to market this spring from private sellers and foreclosures, warned Ian Shepherdson, chief U.S. economist at High Frequency Economics. “Still, for now, these are welcome numbers.” Given the challenges facing the housing market, the long-term outlook for home prices remains grim. Home values are predicted to drop in 342 out of 381 markets during the next year, according to a recent study by financial information and analysis firm Fiserv. Fiserv expects the national median home price to drop 11.3% by June 30, 2010. First Published: October 27, 2009: 9:01 AM ET
For prices in your neighborhood, Call Becky Smith of RE/MAX Metro/Carolina Realty Team at 803-804-3375 or e-mail Becky@CarolinaRealtyTeam.com.
Push on to expand $8,000 tax credit
October 17, 2009 by Becky Smith · Leave a Comment
Some want to expand the tax credit for homebuyers. Supporters say it could stem price declines. Critics say it would just be a costly, temporary fix.
NEW YORK (CNNMoney.com) — Congress is considering proposals to greatly expand a soon-to-expire $8,000 tax credit for first-time homebuyers — potentially applying it to all but the wealthiest homebuyers.
Supporters say doing so would further boost home sales, stabilize housing prices and generate jobs. Opponents say extending and expanding the credit would be a waste of money and only temporarily stave off further price declines.
The credit now can be claimed by anyone buying a home who has not owned one for three years and who closes the deal by Nov. 30.
Beyond extending that deadline, some lawmakers want to make the credit available to all homebuyers who meet income eligibility requirements. And some want to increase the amount of the credit from $8,000 to $15,000.
Currently the first-time home buyer credit is available in full to those buying their primary residence who make $75,000 or less ($150,000 for joint filers). A partial credit is available to those making between $75,000 and $95,000 ($150,000 to $170,000 for joint filers).
Through mid-September, 1.4 million tax returns had qualified for the credit, according to the IRS.
Some portion of those returns, which the IRS couldn’t specify, represents buyers who took advantage of an earlier version of the tax credit, which was only worth $7,500 and has to be repaid over time.
By the end of November, the credit will have been used by 1.8 million homebuyers, at least 355,000 of whom would not have bought a house without the tax break, according to estimates by the National Association of Realtors.
Mark Zandi, chief economist of MoodysEconomy.com, favors extending the current credit until June 1, 2010, and making it available to all home buyers regardless of income or at least to everyone except those at the highest end of the income scale. He estimates the cost of doing so wouldn’t exceed $30 billion over 10 years.
Zandi’s reasoning: Foreclosures are expected to rise next year because of rising unemployment, and that will drag home prices down further. Extending and expanding the credit will help mute that decline. And by June, there’s a chance the job market will have stabilized.
“The most fundamental argument for the credit is that nothing works in the economy if housing is falling — it hurts household wealth and credit becomes tight,” Zandi said. “[The credit] is a good insurance policy. It’s vital to stem the housing price declines.”
To kick start economic activity, Zandi believes lawmakers should set aside an amount of money for an extended credit and tell potential home buyers “first come first served.”
The National Association of Home Builders would like the credit extended for all of 2010.
“We estimate that this would increase home purchases by 383,000 in the next year and help mitigate the foreclosure crisis by whittling down inventory,” NAHB Chairman Joe Robson said in a statement. “This stimulus alone would create nearly 350,000 jobs over the coming year, which is exactly what the economy needs right now.”
A study funded by the industry-supported Fix Housing First Coalition found that the current credit helped stimulate demand for homes at the lower end of the price spectrum.
“An expansion of the tax credit would spur an increase similar to what occurred in the lower end of the market, by motivating buyers in the ‘trade-up market’ to purchase a higher priced primary home,” said Kenneth Rosen in testimony before Congress. Rosen runs the consulting group that conducted the study and is chairman of the Fisher Center for Real Estate and Urban Economics at the University of California in Berkeley.
Opponents of extending and expanding the credit worry that such moves offer poor bang for the buck and won’t stem housing declines.
“Everything spent on this program will ultimately have to be paid for later through higher, economically harmful taxes,” Ted Gayer, co-director of economic studies at the Brookings Institution, wrote in a Brookings blog.
Assuming there are 5.5 million home sales in 2010, Gayer said, expanding the credit to all homeowners “is poorly targeted because it would give a credit to 5.5 million homebuyers who would have bought a home anyway.”
The current credit was estimated to cost federal coffers $6.64 billion over 10 years. But Gayer notes that the cost is likely to be much higher since more people than expected took advantage of it but only about 15% of people wouldn’t have bought a house otherwise.
It would cost an estimated $16.7 billion if the credit is extended until the end of June 2010 and made available to single filers making up to $150,000 and joint filers making up to $300,000. Those are the parameters that Sen. Johnny Isakson, R-Ga., and Sen. Chris Dodd, D-Conn., are proposing in an amendment they introduced to a bill the Senate is expected to take up this week. (Please see correction.)
Another argument against an extension: It would only temporarily boost home prices and potentially set up those using it for a fall. That’s because home prices are likely to decline once the credit expires and interest rates ultimately trek north, according to Dean Baker, codirector of the Center for Economic and Policy Research.
“Temporarily propping up house prices, so that a new set of homebuyers can incur losses, is a policy of questionable merit,” Baker said in a CEPR column.
The sooner the market adjusts the better, Baker said. He did offer one caveat: “We may want to step in to prevent prices from overshooting on the downside in a select group of markets where this is a real possibility.”
Zandi said that’s already happened in a number of markets, and that an extended credit might help turn around the deflationary psychology in those markets where buyers are worried about catching a falling knife.
- CNNMoney.com’s Les Christie contributed to this report.
Correction:This article originally misstated Sen. Isakson’s home state. 
Real Estate Prices
October 7, 2009 by Becky Smith · Leave a Comment
Economists’ Commentary: Moving in the Right Direction – Price Stability October 5, 2009
Ken Fears, Manager of Regional Economics
Falling prices have been one of the biggest problems for the housing market over the last three years. Without price stability, it can be difficult to get a loan or mortgage insurance to buy a home, regardless of the strength of a buyer’s credit or the quality of the property. The newly-finished second quarter Metro Price Reports have been released. These reports include data on metro area prices, which suggest that price stability and even modest growth is emerging. Prices on a quarter to quarter basis have increased in 109 of the 151 markets (72.2%), a trend that could help more buyers attain financing.
Although prices may be down relative to a year ago in most of these 109 markets, the year-over-year decline in the second quarter is smaller than the same measure taken in the first quarter. This pattern of improved year-over-year performance suggests that prices, corrected for seasonal fluctuations, are on the rise. For example, the median price for the Providence, Rhode Island metro area was down 19.9% from a year earlier as of the second quarter. However, this decline is an improvement over the 4-quarter drop of 23.0% measured in the first quarter. Graphically, one can see the year-over-year price change trend improving as the red line moves up on the far right of the graph pictured below
NAR Housing Data (Data provided by NAR at www.realtor.org) August
Existing Home Sales (Seasonally Adjusted)
US NE MidWest South West
vs. last month: -2.7% -2.2% -6.6% -3.1% 2.7%
vs. last year: 3.4% 5.8% 0.0% 1.6% 7.4%
Sales Price of Existing Homes August
US NE MidWest South West
Median $177,700 $241,100 $149,400 $157,400 $220,500
vs. last year: -12.5% -10.5% -10.4% -11.0% -12.2%
Average $222,800 $279,700 $175,300 $199,100 $266,200
vs. last year: -9.3% -6.5% -10.3% -9.9% -9.5%
Thinking of buying or selling? Contact Becky Smith of RE/MAX Metro/Carolina Realty Team at 803-804-3375 or e-mail becky@CarolianRealtyTeam.com.
Boating on Lake Wylie, Part 4
October 4, 2009 by Becky Smith · Leave a Comment
Lew Quinn of HQ Marine on Lake Wylie
HQ Marine is located at Pier 49 on Lake Wylie. HQ Marine sells boats and is a major player is volume sold in the US. They have a variety of boats for sale including price points for a small budget and going up to higher end boats. Lew Quinn is an owner of HQ Marine and runs the sales department. He has been a boater on Lake Wylie for many, many years and loves the lake! Stop by and meet Lew! It is a pleasure to speak with him!
For more information on Lake Wylie or a list of waterfront properties, call Becky Smith of RE/MAX Metro/Carolina Realty Team at 803-804-3375 or e-mail becky@CarolinaRealtyTeam.com.
Boating on Lake Wylie, Part 3
October 4, 2009 by Becky Smith · Leave a Comment
Pier 49
Pier 49 on Lake Wylie offers an array of services to boaters. The Carolina Boat Club is one of the things Pier 49 has to offer. There are seven boats in the club including a 38′ cabin cruser, a 28′ cabin cruiser, two speedboats, one wakeboarding boat, one fishing boat and a pontoon boat. Members of the club pay a monthluy fee plus gas. It is a way to experience boating without having the headache of maintenance. Paul Skinner runs the boat club. He is a hard worker and a pleasure to meet. If you are headed to Lake Wylie, stop by and talk with him. He would be happy to show the fleet!
Paul Skinner of the Carolina Boat Club
Pictured above is Paul showing a 48′ boat. He is getting ready to add an executive /corporate membership option to the club that would include a boat this size. More information to come on Pier 49.
For more information on Lake Wylie or for a list of waterfront properties on Lake Wylie, contact Becky Smith of RE/MAX Metro/Carolina Realty Team at 803-804-3375 or becky@CarolinaRealtyTeam.com.
History of Fort Mll, SC
September 15, 2009 by Becky Smith · Leave a Comment
The Town of Fort Mill (established 1873) is located just south of the state line shared with North Carolina. Our closest neighbors are Rock Hill, SC, to the south and Charlotte, NC, to the north. Approximately 9400 people live inside the Town’s corporate limits with a total of nearly 35,000 people residing within the entire Township.
Fort Mill takes its name form a colonial-era fort built by the British and a grist mill on nearby Steele Creek. The area has a rich history. The Catawba Indians made their home here for many years. Scotch-Irish settlers began arriving in the 1750’s and 1760’s and a small settlement soon developed. Fort Mill grew rapidly in the late 1800’s as textile mills were established. Highlights in Fort Mill’s history include:
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Jefferson Davis and the Confederate Cabinet passed through the area in their flight for Richmond in 1865. The last meeting of the full Confederate Cabinet was held at the White Homestead in Fort Mill.
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Fort Mill was the home of Elliott White Springs, WW1 flying ace, author, industrialist and a member of the South Carolina Hall of Fame.
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In the mid-1700’s Thomas Spratt and his wife Elizabeth were traveling through upper South Carolina in their wagon. They spent a night among the friendly Catawba Indians and were invited to stay and live in the area on a large tract of land given to them. They became the first white settlers in the Fort Mill area and their descendants still live here. The same spirit of friendliness and hospitality still exists today. Fort Mill is a friendly and convenient place to visit and browse. (Article from http://www.fortmillsc.org/OurTown.aspx)
To make Fort Mill, SC your hometown, call Becky Smith of RE/MAX Metro/Carolina Realty Team at 803-804-3375 or e-mail becky@CarolinaRealtyTeam.com.
$$$ Cashing in on the Homebuyer Credit
September 6, 2009 by Becky Smith · Leave a Comment
Homebuyers qualifying for the $8,000 tax credit are cashing in across the US. It is a great opportunity for many Buyers! CNN has released a map with numbers for each state:
http://money.cnn.com/news/storysupplement/economy/homebuyer_tax_credit/index.htm
Thinking of cashing in too? Call Becky Smith at 803-804-3375 to help you find the perfect home!
Boating on Lake Wylie, Part 2
August 26, 2009 by Becky Smith · Leave a Comment
38' Rinker with Joe Palmer's Banner
Lake Wylie is a wonderful place to go to relax after work BUT there is also another dimension. Just as many business transactions are made on the golf course, the lake is also a wonderful place to mix business and pleasure! Joe Palmer with Nationwide Insurance does just that. Joe belongs to a boat club and loves Lake Wylie and going boating every chance he gets!
Joe is licensed in North and South Carolina. Call Joe at 704-841-8670 x 110 for a free quote.
- 38′ Rinker with Joe Palmer’s Banner
Buying a house in the area? For a list of available homes or waterfront properties, call Becky Smith of RE/MAX Metro/Carolina Realty Team at 803-804-3375 or e-mail Becky@CarolinaRealtyTeam.com.
Boating on Lake Wylie, Part 1
August 21, 2009 by Becky Smith · Leave a Comment
Lake Wylie photo by Becky Smith 08/20/2009
Lake Wylie is one of the exciting attractions Fort Mill has to offer! There are many boaters who thrive on going to the lake for some rest and relaxation after a day of work. The scenic lake offers a variety of fun including fishing, wake boarding, jet skiing and swimming. More to come….
Fort Mill SC Real Estate – Newcomers’ Guide
August 12, 2009 by admin · Leave a Comment
The new issue of the Focus has just been released and we have copies! Please contact our office if you would like a complimentary copy. This magazine includes school, community and entertainment information for the areas of Fort Mill, Tega Cay and Indian Land.
