GREATER ROCHESTER ASSOCIATION OF REALTORS® RELEASES YEAR-END STATISTICS
ROCHESTER, NY – January 25, 2010 –The Greater Rochester Association of REALTORS® (GRAR) released its year-end statistics for 2009.
When compared to 2008, overall year-end activity remained relatively stable, with total sales slightly down 1.3 percent. Pending sales were up at 2.3 percent. Median home prices decreased a mere 0.9 percent, from $117,000 in 2008 to $116,000 in 2009.
“Although sales in 2009 reflected a slight decrease over 2008, we still considered it as a somewhat sturdy market,” remarked Ryan Tucholski, GRAR’s chief executive officer.
“We feel that we weathered the worst of the storm,” stated Carolyn Stiffler, GRAR board president. “We are looking forward to a strong second quarter, with April being the month that I expect to carry the quarter, in part because of the extension and expansion of the tax credit.”
Federal legislation not only extended the $8,000 tax credit for first-time homebuyers, but also included an expansion to included current homeowners who are selling their home and who may be eligible to receive a $6,500 tax credit for the purchase of another principal residence. In order to qualify, homeowners must have used the home sold as a principal residence, consecutively for 5 of the previous 8 years. There are additional eligibility requirements that apply for first-time homebuyers and current homeowners. Both must have a written binding contract to purchase by April 30, 2010, which is when the tax credit expires. The purchaser will have until July 1, 2010 to close.
Significant increases in sales were realized specifically in Chili, which showed a 21.2 percent increase and Wheatland, with a gain of 89.7 percent. Sales in the city of Rochester decreased 7 percent, but showed a 14 percent increase in the median sales price.
The results cover the city of Rochester, all Monroe County towns and villages, and Genesee, Livingston, Ontario, Orleans, and Wayne Counties.
GRAR will continue to support the local residential real estate industry through its Time2Buy marketing campaign, which focuses on the benefits of owning a home and using the services of a REALTOR® when buying and selling a home.
FHA Makes Changes
On January 20, 2010, FHA announced major changes to ensure its long-term financial soundness. FHA is trying to balance three fundamental objectives: 1) financial soundness of the FHA insurance fund - ensuring that its capital ratio returns above 2 percent, 2) fulfilling its mission of serving borrowers not adequately served by the private sector and 3) facilitating the recovery of the housing industry and the over-all economy.
By all accounts the new changes are a victory for home buyers. FHA has carefully balanced the need to make financial reforms with the need to keep FHA available to a large segment of consumers. This is evident by retaining the 3.5 percent minimum down payment requirement and allowing the up-front mortgage insurance premium to be financed.
FHA announced changes in the following areas:
· The upfront mortgage insurance premium (UFMIP) will increase to 2.25 percent up from 1.75 percent. Contrary to reports, FHA will continue to allow the financing of the UFMIP.
· Borrowers with a credit score below 580 will be required to have at least a 10 percent down payment. The minimum down payment will remain at 3.5 percent for all other borrowers.
· FHA will seek legislative authority to increase the annual premium (currently capped at .55 percent). Over time, increasing the annual premium may allow FHA to reduce the up-front premium.
· Seller concessions will be reduced to 3 percent from 6 percent.
FHA will make the following lender enforcement changes:
· FHA will implement credit watch terminations at lender underwriting.
· Public reporting of lender performance through scorecard system will be implemented.
· FHA will implement, through notice and comment, indemnification against lenders. Indemnification will be expanded beyond fraud and misrepresentation.
· FHA will seek legislative authority to enforce indemnifications against direct endorsed (DE) lenders.
· FHA will seek legislative authority to sanction lenders nationwide based on performance of local branch.
FHA is an integral part to the continued recovery of the real estate industry and the overall economy. NAR will continue to work with FHA, the Administration, and the Congress to ensure FHA can fulfill its mission while providing for the safety and soundness of the insurance fund. NAR is committed to assisting FHA as they balance risk management with creating homeownership opportunities across the country.
For NAR’s one-page summary brief on this issue, click here.
A factor in getting our economy back up an running is to get many of the componets of the real estate industry back to work. One aspect of this is the buying of distressed or foreclosed properties, rehabing them and putting them back on the market! I talked in an earlier blog about the benefits to the market by having this process in place.
Up until today, there was a 90-day Seasoning Rule which meant it could not sell until after 90-days from the day the investor had purchased it. There were some legitimate reasons for this but it also hampered the ability for investors to make a profit.
Apparently HUD saw the advantages and realized that removing this restriction would help speed up the recovery process. this would be especially helpful in communities where the foreclosure activity is high.
HUD Secretary, Shaun Donovan, announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed or distressed properties. This is part of President Obama’s commitment to addressing these types of properties. Secretary Donovan announced there would be $2 billion in Neighborhood Stabilization Program grants to local communities and non-profit housing developers to combat the effects of vacant and abandoned homes.
This is all good news at a time when it will be well positioned to have a huge impact on the real estate industry as it surges forward! My hat goes off to HUD Secretary Shaun Donovan for his efforts on our behalf!
This house which was just purchased by investors will be back on the market in two weeks because of this new action by FHA.
SIMI VALLEY, Calif., January 6, 2010 – Inman News (Inman), one of the leading sources of independent real estate news and information in the United States, recently named Andy Rapattoni, Chairman and CEO of Rapattoni Corporation (Rapattoni), to its list of the 100 Most Influential Real Estate Leaders for 2009.
According to Inman, its list reflects the real estate industry’s “best and brightest” and it presents those visionaries who “embody leadership, innovation, ingenuity, power and persistence.” Included with Andy on the list are leaders and visionaries such as Craig Newmark (founder of Craigslist.org), Ben Bernanke (Chairman of the Federal Reserve Board), and Bob Hale (President and CEO of the Houston Association of Realtors®).
Andy, who co-founded the company with his wife Niki Rapattoni in 1970, was an early pioneer of computerized business applications, and he has led Rapattoni to become one of the leaders in real estate association management software and multiple listing service software. Serving as one of the most prominent visionaries in the real estate industry, Andy is a frequent speaker at industry events and has received numerous accolades and awards throughout the years.
Upon learning of Inman’s recognition, Andy said, “It is an honor to be named to Inman’s Most Influential Real Estate Leaders list. I have participated in the growth and evolution of this industry for 40 years, and I am proud to have founded and led a company that continues to succeed in each and every decade.”
A most deserving acknowlegement of his contribution to the real estate industry and we applaud him for it!
Happy New Year!
2010 is here!
A new decade has started! A fresh year to improve upon last year! A new beginning from some old habits. A chance for putting in place our New Year’s Resolutions!
If one of these applys to you, how are you going to keep on track?
There are many systems and methods for assisting us in our efforts to be true to our goals for the new year!
Thanksgiving tends to make me stop for a day and reflect back over the past year. As I do, I think about all the people I have met over the past year that are now part of my life experience. I think about the experiences I have had, both good and bad, that have now shaped me for the future. And I think about my family and I am thankful for them and their support.
I hope you have had a good year and that you are taking time to appreciate all that you have to be thankful for.
For those of you that are currently involved in a major crisis, I offer a prayer for you, for you to have the strength to overcome it and grow stronger. So often we are consumed by our own thoughts, problems and concerns and we loose perspective of all that we are blessed with.
Today on this Thankgiving, I wish you a Happy Holiday with those you choose to be with and remind you to Be Thankful and enjoy your familiy and friends.
Great News!
We just heard yesterday that Congress has voted to continue the tax rebate stimulus for the real estate market! It still awaits the President’s signature for final approval.
Here is how it will go:
The legislation extends the availability of the tax credit to purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction. The credit will remain $8,000 for first-time buyers, while repeat buyers who purchase between December 1, 2009 and May 1, 2010 will be eligible for a credit of $6,500. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years. Income limits are expanded to $125,000 on a single return and $225,000 on a joint return.
This stimulus has been a big factor in the activity of real estate this year and we are glad that Congress is helping in the manner.
The effect “Turning back the clock” has on the Rochester real estate market
Most people would not even think that turning back the clocks in the fall and switching out of Daylight Savings Time, would have an effect on the Rochester real estate market, but it does most definitely!
Remembering the old saying, “Spring ahead, Fall back.” It means that we turn the clocks back an hour this coming weekend. Most people readily think, “Great and extra hour to sleep, party, or do something.” I’m not saying these aren’t good things, but it also means to me that it is going to get dark at 4pm which means a reduction in the evening showings during the week.
When you cut back on the available hours you can show houses, it’s going to mean fewer sales! Tell me what your experience has been with this “turning back the clock.”
Home Staging
Home Staging is a word that today is synonymous with getting your house ready to sell. It’s a buzz word we hear all the time. So I decided to ask my friend Naomi Harel of Invision Design Partners to share with me some of her thoughts on the topic.
Home Staging is the art of preparing a home for sale by maximizing its appeal to the broadest range of potential buyers and creating immediate interest for purchase.
Wow, that’s saying it pretty concisely!
As most people naturally strive to personalize their homes with meaningful decorations, artifacts and specific aesthetic tastes or styles, Home Staging on the other hand, aims at creating an impersonalized space that would make it possible for others to imagine themselves living there and making it their own.
Some of the actions necessary for achieving this goal include painting with neutral colors and de-cluttering living spaces or simply put, removing junk!. Usually, the owner’s own furniture and accessories are rearranged for greater advantage and impact. On occasion, however, these types of items are brought in on a temporary basis to maximize the marketability of the home.
A home seller would greatly benefit from accepting that they must “let go” of their own personal taste in interior decoration in return for the creation of a neutral, warm and welcoming interior style that appeals to others. A practice that could bring a higher sales price and a speedy sale of the property.
The best strategy for achieving this goal may be to hire the services of an interior decorator who has an unbiased “eye” to see the living spaces as they will appear to potential buyers. For additional information on Home Staging go to Home Staging Tips.
What do you think about Home Staging and how do you handle it as an agent?
