Tick Tock, Tick Tock: Time Is Running Out, So Don't Miss The Boat!

Photo by dcecil805 on Flickr

With the clock running down on the $8,000 tax credit for first-time home buyers and less than four months to go, builders are urging qualified prospective buyers to start the sales process long before the Nov. 30 deadline.

Faulty appraisals that have been using foreclosed properties as comparables for new homes have been slowing down the sales process in many instances, builders warn, creating hiccups in the financing stage that can often push the closing date much later than originally expected.

First-time buyers should also anticipate tighter lending standards that generally don’t allow 100% financing, making buyers responsible for coming up with enough money prior to their purchase to meet required downpayment and closing costs.

For these two reasons alone, young families considering becoming home owners should be advised to start the process long before they put a bid on a new home. As part of that effort, builders can provide key educational information on the home buying process — including financing and closing — that their customers need to ensure that they occupy their new home in time to claim the tax credit.

+ Clock Running Down on First-Time Home Buyer Tax Credit [NAHB]

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Video Pick: NAHB $8,000 Home Buyer Tax Credit

Where would we be without Youtube and Social Networking sites. In today's market an online presence is an integral component to a business' success, as it is the most efficient way to disseminate information to the public. For instance the video below created by NAHB provides homebuyers with all the necessary information to properly take advantage of the $8,000 tax credit.

NAHB $8,000 Home Buyer Tax Credit Official Facebook Site

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Market Observation: Consumer Confidence Rises

Photo by bretac on Flickr.

It’s true, the market is on its way up, and if it hasn’t completely bottomed out, it cannot get much worse. Mortgage rates of 4.7%? At these rates, anybody eligible would jump on the opportunity. Based on numerous surveys, people are becoming more confident by adamantly applying for mortgages. In conjunction with the increase in consumer confidence, interest rates are nearing historic lows, and prices have dropped substantially. It would be unrealistic for anyone to think that the economy will continue to drop so drastically, especially since sales and pending sales of homes have increased, and a recent report by NAHB testified that shoppers’ visits to new houses for sale are “on the rise.” Nobody can ever predict the absolute bottom, or the exact top of the market. Now’s the time; things can only get better. In the past, our economy experienced similar signs during a recession before the market made a turn-around. If you have the means, you better hop on the train before it’s too late, because before you know it, the prices of homes will once again sky rocket….

Home Builder Confidence Posts Biggest Gain In Five Years [NAHB]

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$8,000 Tax Credit Goes Viral on Facebook and Youtube

Social Networking has become a term that is universal throughout the globe, and is one of the most cost effective and efficient ways to disseminate information to the public.

NAHB is utilizing two of the most popular social networking sites, Facebook and Youtube, to educate first-time home buyers about the new $8,000 tax credit. To coincide with what I've been blogging about, I recommend you check out NAHB's Facebook and Youtube pages, which has access to the latest information and resources on the tax credit, including a consumer-focused Q&A video and television public service announcement. There is a lot of valuable information to get consumers off of the fence and into their first home.

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Staten Island Leads the Way

I just came across an article from the National Association of Homebuilder's announcing that Toll Brother's now has a Mortgage Protection Plan. Essentially, the plan aims to reassure prospective buyers who are unsettled by the current economic downturn and rising unemployment by providing its home buyers with greater financial security by paying their mortgage in the event of a job loss. The program is provided at no cost to Toll Brothers’ home buyers provided that they finance their new home through Toll Brothers' mortgage company and covers up to $2,500 in monthly mortgage payments for six months if the new home owner suffers a job loss within the first two years after closing on their home.

However, what I found interesting was the fact that while we think of Staten Island as a borough that just follows national trends and ideas, this is an instance where Staten Island beat the big boys to the punch. The program that Toll Brothers is offering has already been in place here on Staten Island at The Estates at Opal Ridge at least a week if not more before Toll Brother's launched their program.

I called up the sales center, and the guy who picked up the phone told me to come in to learn more about the program. While I didn't have time to do that, I did manage to get out of him that they have had a great response to the program, that they have actually expanded the coverage to up to $5,000 and that unlike Toll they don't require you get a mortgage from their own company.

I think it is pretty awesome to see Staten Island leading the way in real estate, rather than just going with the flow. Admittedly, this was not a huge scoop, but still it is encouraging that this kind of innovative thinking is happening here. I think its the kind of thing that the market needs to convince people that its safe to buy a home.

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Top 5 Useful links to Monitor Housing Trends

SIREN'S Top 5 Useful links to Monitor Housing Trends from NAHB


1. NAHB's Housing Forecast Housing starts, sales and interest rate projections through 2009.



2. Latest Home Mortgage Interest Rates Contains current and historical data on fixed and adjustable mortgage rates. Updated weekly.
   
   
3. Housing Starts Updated monthly and based on a seasonally adjusted annual rate.



4. New and Existing Home Sales Updated monthly and based on a seasonally adjusted annual rate.
   
   
5. Metro Home Building Permits Local and state data on housing construction rates. Updated monthly.
   
   
   Useful Links to Monitor Economic and Housing Trends [NAHB]

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