Let's Chat Indianapolis!

Where are Mortgage Rates Going in 2010?

It's one of the most frequently asked questions and also one of the most difficult to answer.  Many experts are saying they anticipate rates to go up because the Governement is expected to stop pumping money into Mortgage Backed Securities -- But it's a complicated subject and even the "experts" don't see eye to eye.

We found a great video that explains what Mortgage Backed Securities are and how they effect the rates.  It's the easiest to understand explanation we've found.    Draw your own conclusions!

New Expanded Tax Credit Helps Indiana Move Up Buyers

On November 6, 2009 President Obama signed a bill to both Extend and Expand the Home Buyer Tax Credit.  Not only will it be available until Spring of 2010 for First Time Buyers, but it now also includes credits for current homeowners who sell their existing residence and purchase a new one prior to April 30, 2010.    So who qualifies and what are the details?

Here are some of the highlights:

How do you apply for the tax credit?  You can claim the tax credit on your federal income tax return.  Understand, this is a dollar-for-dollar credit, not a tax deduction.  If the credit exceeds your tax liability, you will receive a refund.  If you've already filed your taxes, you won't need to wait until the following year -- simply file an amendment.   We've seen buyers receive the tax credit as soon as 30 days after filing the amendment.  This will help offset some of the closing fees or equity shortages for existing homeowners in today's market.  In addition, you will be purchasing a new home at a great price for an interest rate still hovering around 5%.

To help clarify some of the details, we've included answers to a few commonly asked questions.  For additional questions/answers and examples please visit our website.  

1. For the Existing homeonwer credit, must the new house cost more than the old house?    No.  For example individuals who move from a high cost area to a lower cost area, who meet all eligibility requirements will qualify for the $6500 credit.
2. I am an existing homeowner.  On October 25, 2009 I signed a contract to purchase a new home.  I have lived in my current home for more than 5 consecutive years and am within the new income limits.  We are closing on November 20.  Will I qualify for the new $6500 tax credit?    Yes.  The existing homeowner credit goes into effect for purchses as of November 6, 2009.
   
3. I am a first time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009.  If the new rules were signed into effect prior to my closing, will I  be eligible for a credit?  Yes.  The new income limitations are in effect as of the date the bill was signed, November 6.  The income limit and other eligibility rules will look to your status as of the date of purchase, which is the closing date.  So if you close after November 6, you should be eligible for the credit (or a portion of the credit if you're within the phase-out range).

- What if you sold your house months ago, but haven't yet bought a new one? Do you qualify?

- What if you've been renting your home and now sell it?   Do you qualify?

- What if you meet the requirements, but your new spouse doesn't?  Do you qualify? 

Visit our website for answers to these questions and more information!

Originally posted by Steve and Tonda Hoagland on Active Rain Blog
All information deemed reliable but not guaranteed. Please contact a tax account for your specific situation.

Wakefield  - Home Sales and Real Estate Market Report -
Greenwood IN, November 2009

 Wakefield – Current Real Estate Activity

13 Homes FOR SALE in Wakefield

• The typical 2 story home with a basement has an average list price of $199,657 ($68.64 per square foot).

• The typical 2 story home without a basement has an average list price of $176,567 (76.87 per square foot)

• Only 1 home is in a financial distress position (short sale, HUD owned, bank owned, foreclosure)

 22 homes SOLD in Wakefield  - January to November 2009

Highest net sale price:                      $233,000

Lowest net sale price:                       $118,400

Average net sale price:                     $175,558

Median net sale price:                      $176,800

1 home currently PENDING in Wakefield

Average list price:     $164,900 (Sales Price will be available after closing)

Wakefield – 2009 Real Estate Activity

22 homes SOLD in Wakefield  - January to November 2009

Highest net sale price:                      $233,000

Lowest net sale price:                       $118,400

Average net sale price:                     $175,558

Median net sale price:                      $176,800

Sold Activity in Wakefield in the last 5 years

Wakefield continues to be a popular area in Center Grove.  Even in a challenging market, so far 22 homes have closed in 2009 compared with 17 for the same period of time in 2008.  That is an increase of 23%!

How Did Buyers Pay For Their New Homes in 2009?

More than ½ of all buyers utilized FHA financing.   FHA requires only a 3.5% down payment and rates are very similar to conventional financing.

See All Wakefield Homes or

Search for ALL CENTRAL INDIANA HOMES FOR SALE

The National Association of Realtors just released the NAR State of the Market Data for August and the news is encouraging. The First Time Buyer Tax Credit is bringing buyers into the market, yet the economy continues to be shaky.

Watch as the details are discussed on Real Estate TV:

By now we've all heard about the First Time Homebuyer Tax Credit -- I mean, who hasn't?   In fact, if you're already a homeowner, you're probably a little frustrated and maybe even a tad resentful.  After all, you could have used $8000 when you bought your first house!

But many experts say it's the  housing market which will lead us out of the recession,  so the important question is -- is the stimulus working?  In Indianapolis and surrounding areas like Greenwood and Carmel, the answer is a definite "Yes".   Early in the year, first time buyers were trickling into the market, but in the last 4 weeks the flood gates have opened.   Recently Steve and I have experienced several instances where we've had multiple offers on properties -- we'd heard stories about this happening in "the good old days" but had never experienced it ourselves!  Now this is how Real Estate was meant to be!

Just last week I was setting up several showings in the Geist area and was told that 4 of the 6 homes were no longer available because the sellers had accepted offers the day before.  Yesterday I emailed a client with some potential Greenwood properties, but when she responded back the very next day, 2 of the 6 had already pended.   And it's not just in the lower price ranges.  Typically the first time buyer in Indiana is looking for a home under $200,000.  Now that those homes are selling, we're seeing a trickle up effect.   The heightened activity seems to be reaching up into the mid $300,000 range, and with fewer of those homes on the market, if a buyer sees something they like, they need to be prepared to move quickly.

So is the market truly recovering?  It's too soon to tell, but it's looking good and we're hopeful.  In fact, if you know of someone considering selling, let them know that there are plenty of qualified buyers out there looking for the "Perfect Place" and we would welcome the opportunity to share with them how to successfully sell in this market.    And if you know someone considering buying - have them contact an experience real estate professional!  Interest rates are still low, (under 6% today) the tax incentive is in effect until December 1, 2009 (properties must close by this date to qualify, so it's essential to be under contract by mid October), and there are still plenty of great homes on the market - but be prepared - the good ones disappearing quickly!

Posted: Friday, July 17, 2009 10:18 AM by Tonda & Steve Hoagland on their real estate blog at PerfectPlaceForYou.com