What's The North Texas Real Estate Market Doing Now?

What is 2012 offering North Texas homes sellers?

2012-01-08T09:07:00.000-06:00

Texas Poised to Outpace Nation (Again) By Nancy McQuistion, Managing Editor, Real Estate Center at Texas A&M University

Jan. 4, 2012/Release No. 11

COLLEGE STATION, Tex. (Real Estate Center) – Texas’ economic outlook for 2012 is positive. Job growth is occurring in several sectors, and a low cost of living is enticing businesses to move to the Lone Star State.

It will be tougher going for the nation, however, because of several factors. The housing market needs to clear a high number of foreclosures. Consumers need to pay off their debt. The banking system needs to write off bad debt. Small businesses need to start hiring again.

Writing for the January issue of Tierra Grande magazine, Real Estate Center Chief Economist Dr. Mark Dotzour says, “Fortunately, Texas is poised to outperform the U.S. averages. Home sales volume in Texas should show modest improvement over 2011, and prices should be stable throughout 2012.” Dotzour’s economic outlook is titled “Texas Sails On: Nation Battles Headwinds.”

Other articles detailing findings from the nation’s largest publicly funded real estate research organization are in the issue scheduled for mailing in late January.

• “Beyond a Reasonable Drought” by noted agricultural expert Dr. Joe Outlaw and Center Research Economist Dr. Charles Gilliland. Farmers, ranchers and service businesses that support them are suffering negative effects of the drought. To make matters worse, federal agricultural programs are on the chopping block to reduce the deficit.

• “The Great Recession: Why Intensity and Duration Varied” by Center Research
conomist Dr. Ali Anari. Why did some Texas metros fare better in the Great Recession? Results from the Center’s business cycle research program pinpoint several reasons. These included shares of employment in the government sector, education and
health services industry, mining and construction industry, and the metro’s level of
educational attainment.

• “Dialing Down Debt: Road to Recovery Begins at Home” by Center Research Analyst Gerald Klassen. It will hurt, but American households will have to liquidate their assets and reduce debt if they want the economy to recover. This means selling luxury items including vacation homes, boats and RVs, as well as selling investments, declaring bankruptcy or suffering through foreclosure.

• “For the Record: When to Toss Old Tax Records” by Center Research Fellow Dr. Jerrold Stern. At a minimum, tax records should be kept three years. However, a period of seven or more years is recommended. Tax and nontax factors play a role in the
decision.

• “Vested Rights: Project Protection for Developers” by Houston attorney Reid C. Wilson. Vested rights freeze land use regulations affecting property classification, building size, lot size-dimension-coverage and certain other matters once the owner or developer files a permit application for that project.

• “The Trouble with Troubled Assets” by Center Research Economist Dr. Harold Hunt. The volume of distressed property sales was expected to be much higher by this time. So far, everyone is still waiting. However, according to commercial real estate insiders, distressed sales are on the way up.

• “Terminated: Transfer Fees Outlawed” by Center legal expert Judon Fambrough.
Transfer fees, money paid for transferring interest in real property, were implemented in
2007 legislation. Four years later, that law was repealed, prohibiting any future transfer
fees and terminating existing fees that do not comply with the new legal requirements.

Tierra Grande is a quarterly magazine published by the Real Estate Center at Texas A&M University. Texas real estate licensees pay for it through their annual state fee. Subscriptions to nonlicensees are $20 for one year or $13 each for two or more years.

2011-09-21T08:00:00.001-05:00

Greetings,
Alas, the hotter days of summer have past! Fall is here and while we still have our share of warmer days here in Texas, it is great to get out and about more in the cool mornings and evenings. With the end of summer comes more economic activity in general, more home improvement projects and plans for moving. I've put a couple of good articles on such from our HouseLogic site for your enjoyment.

To give you an idea of what is actually going on, here are the numbers.
Sold or Pending so far this year by city; (Active For Sale )

Dallas; 6,676 (5,039)
Addison; 82 (59)
Garland; 1,442 (800)
Richardson; 692 (395)
Sachse; 229 (129)
Roweltt; 524 (318)
Wylie; 480 (280)
Carrollton; 884 (473)
McKinney; 1,868 (824)
Frisco; 1,890 (856)
Farmers Branch; 180 (98)

Steady news for those wanting to make a move this year. With interest rates at all time lows, there are still plenty of lenders providing loans. While most of the zero-down options are no longer available, the VA still has zero-down loans, FHA offers 3.5% down and of course conventional loans are still available with a variety of terms. The key is just not to bite off more than you can chew comfortably and remember you don't want to get so much house that you don't have maintenance costs, emergency funds,savings and quality of life costs available so you can enjoy your home vs. scrambling to stay in it.

I hope you all have a pleasant autumn and of course check out the Featured Homes and MLS searches of all available homes in North Texas at my website. I am currently offering a superbly layed-out condo in Lake Highlands and a terrific 3 bedroom home in Lockwood North, both updated and ready for occupancy.

Best Regards,
Greg Foster
469.358.8569
www.GregFosterHomes.com

2011-09-11T19:48:00.000-05:00

Friday Five: Mortgage Relief, Refi Proposal, and More
Home ownership policy highlights of the week: Read
How to Inspect Windows, Doors to Stop Air and Water Leaks
Inspect windows and doors regularly to stop air leaks and water seeps that create high energy and repair bills. We’ll show you how. Read
Saving Money with Salvaged Building Materials
Salvaged building materials allow you to improve your home inexpensively—but might require an extra investment of time and energy. Read

Visit houselogic.com for more articles like this.

The Market's Ups and Downs

2011-07-15T09:38:00.000-05:00

Greetings,

I don't think it can get much hotter before we all melt. Yesterday my A/C went on the blink so I had a nice sweltering evening under the ceiling fan chugging along at high speed. Thankfully my HVAC guy was out this morning by 10 a.m. and repaired it with just a replaced capacitor (whatever that is) and is finally back to normal.

Which brings up a very important point for home sellers. When you decide to sell it's wise to spend a little money before you put your house on the market to make sure all of your critical systems are in perfect working order. There is nothing more frightening for a buyer than to have their inspector find that the HVAC is not cooling properly during the option period after the contract to purchase is signed, as one of my clients found out recently. The inspector discovered that not only was the A/C condenser too small for his expanded square footage, but that the electrical box was of an outdated and recalled system from the '60s. Most buyers aren't interested in taking on those kind of additional expenses or risks. A lot of folks will take hints from their favorite HGTV home improvement show to spruce up the cosmetics but ignore the primary systems of the home that are the biggest drawback to getting a home sold, especially in today's marketplace. Be prepared with a pre-sale professional home inspection. They're well worth the few hundred dollars to show you what can be a deal killing surprise for a home buyer. And don't forget to keep your foundation watered this time of year. About a foot all around the footprint of the house once a week for 30 minutes will help prevent damaging and expensive foundation shifts.

In terms of the market, it's been a wild couple of years as we have seen ups and downs in the last 2 years unlike no other. While the spring of 2009 brought some relief with the $8,000 buyer credit from Uncle Sam, then the expected dip afterwards and a slight resurgence in late 2010, this year is certainly bringing the hammer down once again. As I research my 5 principle market areas, I see many neighborhoods that normally have about a 5-6% annual turnover rate drop to 1-2%. Excruciating for sure, so even more important to properly maintain your home year-round. Since even in normal market conditions,40-50% of homes that go on the market do not sell due to more competitively presented homes; now that number is rising considerably. I've always been able to boast at least a 90% sales rate on homes I market simply because I can be selective in the homes I choose to work with, and of course in this market, that means having to avoid a lot of homes that aren't in the best shape. So keep an eye on the details.

And as always, please contact me for all your real estate needs and visit my site for featured homes, all current MLS listings and more!.

Best Regards,
Greg Foster
469.358.8569
www.GregFosterHomes.com

2011-04-24T09:11:00.000-05:00

Home Improvement Apps for iPhone, Android, and BlackBerry: Your Digital Toolbox
Downloadable iPhone and Android apps offer ways to maintain, improve, and save money on your home. Read
Appliance Maintenance: Heating, Venting, and Air Conditioning (HVAC)
Keep your HVAC systems running efficiently and reliably with this simple maintenance routine. Read

Visit houselogic.com for more articles like this.

Market News

2011-03-16T19:00:00.000-05:00

As we begin to wind down in the 1st quarter we still see good signs for our local housing markets. One of the strongest areas in the state, the northeast Dallas metro area continues to see a slight uptick in overall sales and some significant sales price gains for the Plano area. I have been getting much more traffic at my open houses than in the past, with a lot of folks beginning their search with expectations of making their moves in early summer. Additionally, I have been seeing more out of state home shoppers, a further reminder of how many areas are still flocking to Texas for our favorable economy and of course our great climate and quality of life.

The state is helping with some significant economic development initiatives that look to be having some positive effects. Richardson this week hosted a visit from Gov. Perry and announced another business expansion in Richardson as a result of those intiaitives that will contribute to building new jobs and adding revenues. Plus, sales tax revenues in general are up, so all in all, there are a lot of good indications for all of our communities.

Brookdale Living: Chambrel at Club Hill

I'm giving a little landlord information presentation this month for Chambrel at Club Hill, in Garland, an independent living and assisted living community for seniors. I'll be discussing options available to help folks that want to simplify their lives but need to hang on to their homes, either waiting for stronger market price improvements in order to sell or looking to use their homestead as rental income to maintain the stability of their estates. I'll be covering the pros and cons of being a landlord and help you determine if this option is right for your particular circumstances.

Whether you're ready for downsizing yourself, or maybe your parents have thought of it but are a little apprehensive, you'll want to stop by and visit. Chambrel is unlike most independent living facilities around Dallas. With plenty of trees and open spaces, complete community facilities, recently remodeled homes with large clubhouse and award winning chefs & dining facility, I am very confident you'll find it a must to consider.

My presentation will be Wed., March 23rd from 6:30 p.m. - 7:30 p.m. Refreshments and tour of facility available so please be my guest and come visit if you're interested. Generous veteran assistance available. Chambrel at Club Hill, 1245 Colonel Dr., Garland, 75041 RSVP to Cheryl @ 972-278-8500.

Visit Chambrel at Club Hill

Best Regards,
Greg Foster
469.358.8569

Market News

2011-01-20T15:45:00.002-06:00

The new year looks to be starting off fairly strong. Despite a wintry brew of weather, a lot of activity is beginning in the new and existing home markets around here. As interest rates begin going up again, a lot of buyers are getting off the fence.

One area I have been looking at recently is the expansion the Wylie area and eastern Lake Lavon are experiencing. With new commercial developments in the area, residential communities are continuing to grow around the lake. One area of particular interest I visited this week is D.R. Horton's Grand Heritage master planned community in Lavon.

I was very impressed with their country club type community building, professional style exercise wing and their terrific pools with Olympic swimming laps. For folks looking to live away from the suburban hubs, these master planned communities offer many of the amenities you would not otherwise be able to find in smaller communities. D.R. Horton has always been one of my favorites for an excellent reputaton with my clients for their warranty and after sale service.

And they are still available for the USDA 100% loans in Lavon, but time is quickly running out for that program as this area grows out. If you'd be interested in exploring this community give me a call and I'll be happy to arrange a first class tour for you.

Of course for those wanting something closer to the metro area the eastern corridor of the new George Bush Turnpike continues to bring new jobs and development to Rowlett and Garland. If you hear of anyone wanting to make a move soon I have a couple of terrific homes I 'm marketing now in Plano and a great rental in N. Garland.

Best Regards,
Greg Foster
.

Market News

2010-12-16T08:50:00.000-06:00

It looks like the year is winding down on some good notes for the state and DFW metro area.

Employment figures are on the upswing with Texas posting 174,900 new jobs, or a 1.7%growth rate from Oct. '09 to Oct. '10. Compare that with growth rate for U.S. jobs for the same period of 636,000, or .5%. And private sector job growth was up 2.1% in Texas, so there is light at the end of this tunnel. Plus unemployment has at least remained steady at 8.1%.

Virtualy all sectors saw some growth, manufacturing in general benefited the most in the private sector while the techinical and scientific industry lost about 2,600 jobs, and the state's govt. sector lost 4,600 jobs. (stats courtesy of Texas Real Estate Center, Texas A&M)

I'm not only seeing more activity in the housing market, but the commercial side is beginning to pick up as well. While financing has been especially tough for commercial real estate, there is beginning to be some loosening. There is reportedly a lot of capital build-up that iseems to be fueling enterprise more. And of course Texas is still one of the few states that continues attracting new businesses consistently.

The prospects for all of North Texas seeing more growth in 2011 will certainly bode well for all of our businesses and services. And should keep us all busy thoughout 2011.

Featured Home

1905 Somerville

Richardson, 75080

$145,000
($1,500 closing asst.)

See this listing & more Featured Homes at www.GregFosterHomes.com or give me a call anytime. Have a terrific holiday!

Best Regards,
Greg Foster

469.358.8569

Laundry Room Storage: 5 Naked Truths

2010-12-01T16:13:00.000-06:00

Laundry Room Storage: 5 Naked Truths

By: Jan Soults Walker

Unless you do your laundry in the buff, it’s one chore that’s never really done. Follow these laundry room storage ideas, however, and you can breeze through your dirty duds in no time.

1. Make space for your washer and dryer

Put your laundry room or area near bedrooms where you generate the most laundry so you can minimize steps and clothes clutter. To carve out space for a laundry station inside a bathroom or hall closet, you’ll need:

Electric outlets. Electric dryers require a 220-volt dedicated outlet. Cost: $300 to $1,000, professionally installed.

Plumbing. The washer needs hot and cold water connections as well as a drain or a hose fed into a standpipe. All dryers require a vent to the outside to exhaust heat from the drum. Gas dryers require a gas line. Cost: $300 to $550.

Space requirements. For a stackable washer and dryer, provide a minimum space of 40 inches deep and 32 inches wide. A side-by-side washer and dryer need space measuring at least 40 inches deep and 56 inches wide.

2. Add cabinets for better laundry room storage

De-clutter by keeping laundry room necessities out of sight.

Drawer units. Front load washers and dryers are easy on your back when elevated with base pedestals, which offer drawer storage. Pedestals usually are made by individual manufacturers to fit their brand. Cost: $110 to $265.

Stock cabinetry. Home centers offer stock kitchen cabinetry that you can install above and/or beside the washer and dryer. For a laundry near the kitchen, select cabinetry that complements existing units. Cost: $130 to $350 per cabinet.

Freestanding laundry room storage. To keep clutter out of sight behind doors, position a freestanding cabinet between or beside the washer and dryer. Some armoires feature hanging space inside.

Extras. Equip a stock or freestanding cabinet with a fold-down ironing board and a holder for the iron and related supplies.

3. Provide laundry room storage bins, baskets, and more

Bins. Canvas or solid metal bins keep small items corralled and out of sight inside a cabinet or on open shelves. Wire baskets make it easy to inventory supplies while keeping similar items together.

Lined baskets. A canvas lining provides visual appeal and prevents wicker from snagging folded linens or other items you store inside.

Pull-outs. Rather than bending and rooting around in the back of a base cabinet, equip it with a pullout hamper, wastebasket, or shelves.

Sorters and hampers. You’ll find a variety of bins for storing and sorting soiled laundry, including canvas versions with an overhead rod for hanging clothes.

4. Include easy-access surfaces

Open shelves. Melamine or wire shelves above or beside the washer and dryer provide a good spot for quickly accessing often-used supplies.

Countertops. A countertop on base cabinets or installed above a front-load washer and dryer (that aren’t elevated on pedestals) provide a place for folding clothes.

5. Create space for hanging clothes

Include a spot to hang clothing fresh from the dryer or to drip dry. For example, stretch a pole between tall cabinets flanking the washer and dryer. For compact laundry room storage spaces, look for collapsible hanging units or retractable clotheslines.

Jan Soults Walker, a nationally published home improvement writer for more than 25 years, would rather hunt for flea market finds than the laundry soap.

Great Investment Deals

2010-09-07T17:56:00.001-05:00

Texas has many good signs in its economic outlook this year according to Texas A & M's Real Estate Center. Reporting the 3rd month of positive annual employment growth in Texas and a 1.3 percent growth rate from July 2009 to July 2010 . These are good signs of a beginning recovery and with interest rates now as low as 4%, buyers and investors are becoming much more active.

Garland and Richardson are offering some of the most attractive deals for picking up rental properties. With the economic shifts of the last couple of years the rental markets are bringing good returns for investors looking for long range vehicles with the security and strengths of Treasury instruments and bond funds, with strong growth possibilities. Call me to help with finding you a good growth property in a solid, attractive area that will continue to grow for years.

And for the current home owner, whether enlarging your family needs or simplifying for retirement, there are some terrific deals available that will begin disappearing shortly and a market ready to buy yours now.

Call me for a realistic conversation and I'll get busy helping you with all your real estate needs.

Regards,
Greg Foster

Home Ownersite - Sizzling Summer Home Maintenance Tips

2010-09-07T17:53:00.000-05:00

Home Ownersite - Sizzling Summer Home Maintenance Tips

Market News

2010-05-21T10:05:00.002-05:00

The big news in the housing market is that DFW foreclosures have been down for the last 2 months, but still higher for the year than last year.

Constructoin of new homes was up in April but new permits fell as a result of predictions that nationally the reall estate market will slacken a bit more once the federal tax credits expired. Of course, we're blessed to be Texans and there are still some first-time homebuyer credits available through some municapilities and private rebate programs.

And there is some concern that the recent stock market slumps are a carryover from European troubles and will adversely effect recovery, but we're still chuggin' along relatively well. Prices are beginning to rebound as local investors begin building their portfolios with more stable rental properties to avoid the volatility of the stock markets. With prices at their lowest in years and interst rates very low, it looks like we'll continue the steady rise upwards, albeit slower than we would like at times.

I've got several very good homes featured in North Garland, Lake Highlands and Richardson as well as a couple of foreclosures this month at http://www.gregfosterhomes.com/ so check them out or let your friends know.

As always, give me a call for any questions.

Best Regards,

Greg Foster
469.358.8569

Investments With Security

2010-03-13T13:19:00.003-06:00

With the Bernie Madoff scandal and the collapse of so many large financial institutions, more people are nervous about trusting their retirement portfolios entirely to third party managers. As a result, more and more are turning to residential rental properties for their security and long term growth. And the great thing with rental properties is that you are able to leverage your investments with the tenants paying the mortgage for you and bring in a positive cash flow plus the long term growth.

Not many other investment vehicles afford those benefits. Not for everyone, rental properties are best done with a 30-40% down resulting in a positive cash flow and a little cushion for
intermitten vacancies. Many landlords maintain the same tenants for as many as 20 years. Of course tenant qualification is the key.

The market is always strong for rentals. On average, 30% of single-family homes in large cities and suburbs are tenant occupied. This is pretty standard even in thriving economies. And with prices on their lowest end of this cycle, now is the time to get in the game. Many residential investors set a goal of acquiring one new property each year, rotating inventory every 10-15 years and at retirement they have a steady cash flow with stacks of equity.

That can bring anyone peace of mind. Call me to learn more.

Greg

Public Improvement Districts

2010-02-17T09:46:00.004-06:00

Public Improvement Districts (PID) have long been a possible tool for neighborhoods to fund improvement projects, but are not widely accepted by most communities because it coerces those without an interest in proposed projects to be obligated for additional taxes. These extra tax obligations can make an entire city become much less desireable for people moving into the area, thus most will prefer another city, all other things being equal. This can mean that when you get ready to sell your existing home, the market will be much softer and your selling price will likely be 2-3% lower or more. For most homeowners that difference in future sales value makes alternatives to a PID program much more reasonable.

Other alternatives include private neighborhood fund raising drives, coop programs available through most municipalites and others. All with the benefit of making the neighborhood more presentable without the encroachment of more taxation. It's a good idea to be aware of proposals to your council by parties wanting these. They're often tied to developers wanting to use tax revenues to help fund their projects risk free. Garland homeowners recently blocked the use of PIDs, but it is a never ending concern so keep an eye out in your community.

Best Regards,

Greg

Ask Greg...

2010-01-18T16:49:00.006-06:00

How can I be sure I’m pricing my home to sell?

It's building into a strong selling season so make sure you don't spend it on the sidelines trying to sell an over-priced home. Pricing is the single most important aspect of selling real estate. If over-priced, the house will sit unsold; too low, lost profits.

Obtain current comparable estimates. If you live in a neighborhood with similar-sized homes, try to find 3 or 4 recent sales examples and then average the price per square foot to derive a rule of thumb. Increase or decrease the estimate based upon condition, age, upgrades and competition.

Include income potential. If the property is capable of generating an income via rental, then use the profit potential of the property to estimate the return on investment or ROI. Most investors expect an ROI at or above the safe, headache-free option of investing in Treasury bonds.

Get a second opinion. Work with a real estate agent who specializes in that location to provide valuable feedback and a second opinion. Remember, if you expect a fast sale then search for all available properties and then plan to price your home near the bottom range of the properties currently listed and sold in the area.

Homebuyer Tax Credit Extended & Upgraded

2009-11-07T10:22:00.005-06:00

Congress has extended the $8,000 first-time Homebuyer Tax Credit to April 30th 2010, as well as adding provisions to allow existing homeowners a $6,500 tax credit if they have lived in the home they are selling for 5 of the last 8 years.

Click title above to see chart.

What You Need to Know About Short Sales

2009-09-21T16:09:00.004-05:00

What You Need to Know About Short Sales

If it seems like short sales have suddenly exploded in the real estate arena, it’s not your imagination. Once considered relatively rare, short sales have become a common phenomenon in the past 18 months, thanks in large part to the banking and mortgage crisis. To find out if you can benefit from a short sale, here’s some helpful information about the practice.

What Is a Short Sale? Short sales occur when the bank and seller agree to a purchase price for real estate that is less than the original mortgage amount and does not cover the entire cost of the existing debt obligation.

Who Benefits? Depending upon how the deal is structured, everyone can benefit from a short sale. The seller benefits from the ability to save his or her credit rating and avoid bankruptcy or face a mountain of debt, the buyer benefits from acquiring a property at below market price, and the lender benefits from a sure sale that reduces the risk of a property going to auction or of having to foot the bill for foreclosure and additional expenses.

Considerations and Consequences Short sales are not without consequences, so take time to carefully weigh all options before making a decision. Sellers need to carefully review the terms prior to signing a final contract. Some lenders expect the seller to make up the difference between the selling price and the full amount of the original mortgage.

Buyers should also proceed with caution, as many properties have additional liens, deferred maintenance, back taxes or other expensive fees that become the obligation of the buyer. Additionally, short sales may require substantial time before obtaining final approval, which can make it difficult to lock in favorable rates or result in the loss of other prospective properties.

$8,000 Tax Credit Spurs Homebuyer Attention

2009-07-18T07:43:00.004-05:00

Now with the market working its way to a more active status, the new $8,000 tax credit is helping to pull homebuyers into the market again. The great thing about this program is that it is available to anyone who has not owned a house in the last three(3) years.

Simply put, homebuyers that pay federal income taxes can reduce that amount by 10% of the purchase price of a home up to a maximumn of $8,000. And now provisions have been made in the law to allow that amount be used in downpayment costs as well.

Homes must be closed by Dec. 1st of 2009! Call me for details so you don't miss this opportunity.

Greg

Federal Housing Rescue Plan Launches

2009-04-17T13:02:00.002-05:00

Federal Housing Rescue Plan Launches

The Obama Administration’s program to rescue distressed home owners got off the ground this week. The program was announced on Feb. 18, but it took several weeks to put the bureaucracy in place.

Six of the nation’s largest banks signed up to participate, the Treasury Department announced Wednesday. They are JPMorgan Chase, Wells Fargo, Citigroup, GMAC Mortgage, Saxon Mortgage Services, and Select Portfolio Servicing.

Treasury says it is allocating $50 billion to the program. The Department of Housing and Urban Development will provide the rest.

The plan calls for loan servicers to reduce interest rates so a family’s monthly mortgage obligation is no more than 38 percent of its pre-tax income. Loan servicers also can reduce loan balances. After the loans are modified, the government then provides enough money to reduce payments to 31 percent of income.

Participating servicers get $1,000 a year for each modification and another $1,000 a year for three years if the borrower remains current. Servicers get an extra $500 if they do the modifications before the borrower falls behind in his payments—and the borrower gets $1,500. Also, homeowners get $1,000 a year for five years if they remain current on their payments. The money must be used to reduce their principal balances.

Source: CNN, Tami Luhby (04/16/2009)

2009 Homebuyer Tax Credit

2009-03-18T12:45:00.001-05:00

The homebuyer tax credit is one of 10 key provisions of the American Recovery and Reinvestment Act signed by President Obama into law on Feb. 17, 2009.

The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

Below is a pdf link showing a chart of the differences in the 2008 homebuyer credit;

http://www.realtor.org/wps/wcm/connect/b6911d004d24c833931bf726a9949436/government_affairs_tax_credit_chart_022309.pdf?MOD=AJPERES&CACHEID=b6911d004d24c833931bf726a9949436

Articles You Can Use

2009-03-01T17:27:00.001-06:00

Articles supplied by real estate newsletter provider Ready to Go Newsletters.

Steady Income Planning

2008-09-14T11:14:00.006-05:00

Here we go, into the election season, the height of hurricane season and tremendous economic movement. We're hearing many good reports attributed to the manufacturing sectors that, according to Alan Geenspan on Meet the Press this morning, offsets the failures in the financial industry. I think he calls it globally balancing, or globally juggling, depending on one's perspective I guess. Be that as it may, our little universe we call North Texas is bouncing along pretty well. Job growth here continues to be stronger than the rest of the country.

While Augusts housing sales were down from last year about 22% in the northeast Dallas and Collin counties, sale prices were down less than 3%, and that's for the very broad area. Some neighborhoods have actually seen increases.

One of the biggest changes to the residential landscape will be the number of home renters for the next few years. If you have ever considered getting into rental properties, now is the time! It's not for everyone. You must really understand it as a business and understand the margins you'll be working with to assure you have sufficient operating capital. Then you can enjoy the security of building equity in an investment that is paid for by your tenants.

Don't jump in blindly with limited info. There are no easy, get-rich-quick strategies. Just solid, time-tested planning. I work with several clients who have portfolios of as many as 22 homes that they have aqcuired over there lives as they could afford and are now retired and enjoying the benefits of an income stream that they control.

If you'd like to look at rental house investing as a more secure vehicle for your portfolio don't hesitate to email or call with any questions. I'll be happy to help.

Greg Foster
469.358.8569
Greg@GregFosterHomes.com

Housing Stimulus Bill

2008-07-30T12:46:00.005-05:00

Here is a good summary of the House Stimulus Package that was signed by the President today. There are many strong aspects to it that will help immediately and help stabilize the GSEs (Govt. Sponsored Enterprises) such as Freddie Mac & Fannie Mae.

National Association of REALTORS®
Summary of Key Provisions of H.R. 3221 - The (as of 7/30/08)
--------------------------------------------------------------------------------

H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:

GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).

FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.

Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.

VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.

Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.

GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.

Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.

National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.

CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.

LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.

Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.

Stronger Dallas-Plano Real Estate Market A Plus

2008-07-04T05:07:00.008-05:00

One of the major indexes for mortgage insurance lists the Dallas-Plano market as one of the strongest in terms of price stability and affordability. PMI Insurance Co. released it's Summer 2008 Market Risk Index this week and reports the Dallas-Plano area is listed as having less than a 1% chance of further price weakening vs. over 90% for areas such as Riverside, CA and Fort Lauderdale, FL.

Bear in mind these are the actuarial numbers, the risk assessments that the insurance companies use to assess how much the mortgage insurance risks will be, not marketing projections, so are probably highly reliable. See the complete report at http://www.pmi-us.com/eret.

And this week CNBC ranks Texas as tops in business strength with many advantages that continually draw more people to Texas. Yippee!

Growth Is On The Horizon

2008-06-08T12:48:00.013-05:00

With summer settling in early many in this home seller's market are getting a late start. Much of the reverberations of the fuel problems have many in holding patterns, both sellers and buyers. But with recent news of planned commercial real estate developments in Richardson and Garland, these are expected to fill quickly as some of the more competitive places for large businesses to consolidate in these tighter economic times. Of course, the benefits to the housing industry offer stronger market conditions, making now an ideal time to begin your moving plans.

As home prices in the Northeast Dallas metro area continue to stay strong, inventory of new homes has been reduced and will force prices continuously upward, despite some of the industry's foreclosure woes.

The mortgage industry is responding with competitive low-interest mortgages. The key to remember there is to not over-extend yourself so if a worse case scenario should arise down the road you won't feel the pinch as bad. Know your own budget carefully. One of the down-sides to the last few years' increase in foreclosures invariably arises from the fact that the qualifying percentages required for mortgages doesn't take into account today's consumer budget demands. For instance, 20 years ago it may have been appropriate to spend 30% on your home payment costs (mortgage,insurance,taxes)and the remaining 70% could cover all your other expenses. But now with added consumer "necessities" like Internet, cell phones, cable t.v., etc.; now about $200 - $250 additional dollars per month that wasn't the case 20 yrs. ago, it's increasingly difficult to follow simple percentages.

Carefully consider all of your monthly expenses, including savings and entertainment, then adjust where necessary to make sure you can meet your mortgage expenses as well as repairs and other maintenance in order to maintain the value in your home. This will provide you a stress-free outlook when you buy, never having to worry about what the economy might be doing when it's time to sell. Ideally 20% or more. At 20% you'll avoid costly mortgage insurance and see your investment grow quicker. If you don't have a lot of down payment funds, FHA has now made it easier than ever to use their low-down program.

Visit my website for mortgage calculators and other resources at www.GregFosterHomes.com.

May '08 North Texas Housing Numbers Show Optimism...

2008-05-06T06:22:00.007-05:00

May 2008 housing numbers are not as bad as it would seem if you're paying too much attention to the national press lately.

That's not to say things are rosy either, but by and large North Texas continues to remain strong. Builders have reduced inventory and existing home sales are clipping along. I ran the previous 12 month numbers this a.m. for my principal market which includes N. Dallas, Richardson, Garland, Sachse, Rowlett, Plano & Wylie areas. Total sales numbers are down about 12% but the average sale prices have continued upward 1.9% for the one year period from May '07 to May '08 as compared to May '06 to May '07.

About the same rates as I calculated 6 months ago. Total existing home sales during the past year in these areas was 11,065 homes...and that doesn't include pending sales which pushes it up a good bit. So, all things considered, we're doing well, just on the slower side of the market cycles. The number of sales reduction is mostly indicative of the tightening mortgages in the higher risk segments that have been curbed, which will be a plus to somewhat limit the inventories. As invenories of new homes shrink or slow, then the values of existing homes will progressively get stronger as supply and demand become more balanced. Add to that, a slow down of first time and move-up buyers has been the result of fears by the nat'l numbers and media attention.

All things considered the northeast metro area continues to grow well, albeit slower than in previous years, and that generally indicates a brighter future to come!

1st Qtr '08 Market Data

2008-04-12T09:45:00.006-05:00

Now that the 1st quarter of the year is behind us we can better assess what the spring and summer will bring to our local real estate markets. Though overall numbers are down a bit we're still chugging along fairly well as we break into the spring selling season. My open house promotions are getting a lot of shoppers, and of course N. Texas continues to attract relos from all corners.

Here is the 1st Qtr 2008 Market Data as reported by North Texas Real Estate Information Services;

Garland sold 443 homes with 207 pending sales. Min $24K Ave $113K Max $488K
Richardson sold 202, with 111 pending. $53K $161K $453K
Plano sold 748 with 367 pending. $59K $260K $1.1M
Murphy sold 74 with 30 pending. $154K $295K $605K
Sachse sold 35 with 14 pending. $58K $154K $217K
Rowlett sold 196 with 77 pending. $50K $150K $385K

With almost 2,000 sold and another 800 in pending status, it's clear our little corner of the metroplex is still going strong, as is much of North Texas. Full steam ahead!

Don't Fear Falling Prices

2008-02-22T11:39:00.005-06:00

Here's an interesting point of view worth posting. GF

Yale Professor Robert Shiller, whose Case-Shiller 20-city home price index has become an industry standard, says people shouldn’t fear gradually falling home prices."There's nothing troubling about a gradual correction of home prices. If we keep our incomes at the current level and home prices go down we are richer, we can buy more housing," Shiller says.But if home prices fall suddenly, Shiller says that could undermine housing as well as consumer confidence and the economy.

There has been a misperception that houses will constantly appreciate, Shiller says. "Sometimes people will try to imagine that we can have both high home prices and affordable housing. But I can tell you that doesn't add up," he says."You either have high home prices or lower home prices. And lower home prices are what we want, and people shouldn't be afraid of that," Shiller says. "Most of us care about our children and grandchildren, and these people have to buy houses so why would we want high home prices? We want economic growth, we don't want high home prices." Source: Reuters News, Lynn Adler (02/21/08)

Fabulous New Listing In Preston Highlands...

2008-02-04T13:01:00.000-06:00

Designed with comfort & luxury in mind, this incredible 4.3.2 has all the current designer trends in a superb layout. Corian & granite counters, ceramic tiles, jetted tub, separate shower, frieze carpet, security system, sprinklers, board-on-board privacy fence, pool w spa. Home designed for easy entertaining with service bar opening from house to pool area. All in coveted Preston Highlands subdivision just south of G. Bush Turnpike. 2,320 sq. ft. $264,500.

Another Interest Rate Drop!

2008-01-30T19:02:00.000-06:00

How soon will it affect mortgage rates?

Some consumers loans are pegged at the prime rate, which is generally three percentage points higher than the federal funds rate, which is what the Federal Reserve moved around on Wednesday. But the prime rate tends to track the federal funds rate. Longer-term, fixed-rate loans such as mortgages or student loans track treasury bonds, so they're not immediately affected by the Fed's decision, but they follow broadly.

This means people with some types of variable rate mortgages are likely to see some more much-needed relief. That's good news. If your rate is resetting higher, it is time to start thinking about refinancing. You may be able to lock in a much lower rate. This could help you keep your home if you're afraid of losing it because interest rates have moved higher on you. Those with home equity lines of credit, you'll get a little help because when rates go down, your debt is cheaper.

Interest Rates Drop

2008-01-23T11:23:00.000-06:00

Now is a great time for refinances as the rates are close to 5.375% w/ no points for a 30 Year Fixed Conventional program!! Rates are close to this on many other programs as well as FHA, VHDA, etc.

Contact Tracie Morgan at Tracie.morgan@suntrust.com and take a look at what’s available for you. There are all sorts of possibilities out there and you may be able to lower your payment considerably!!!

If you’re ready for the purchase of a home it’s a great time to do so with inventory full and many good deals to take advantage of this spring. First-time homebuyer programs available.

DFW Home Sale Times 2nd Best of 19 Major Markets

2008-01-12T11:21:00.000-06:00

Recent stats for "days on market " in major markets show Dallas at the top of the pack. Averaging 80 days is not how we normally like to see them, preferring the average of 45-60 days, but considering the adjusting market we are doing quite well in this area as well. See the attached article by Steve Brown at the DMN by clicking on the title.

2008 Starts Strong Despite Slowdown

2008-01-11T23:23:00.000-06:00

What’s The Market Doing Now?

While it is certainly disappointing and frustrating trying to sell a home, the news locally is much, much better than the national press would imply by their limited reporting. During the last 6 months of 2007 in the area north of I-635 to Hwy. 121, covering Richardson, Plano, Garland, Sachse, Rowlett & Wylie, we have experienced about 7,000 home sales. And these are existing homes. Builders have slowed considerably, removing much of the competition existing homes normally face during more vibrant markets.

What prevents homes from selling are conditional problems, ineffective marketing & pricing issues. Correcting and improving conditional items is the first area to focus on and will easily solve many pricing concerns. There are currently about 4 times as many homes on the market as what sell during their listing period, and this is not unusual even in really strong market conditions. So if you’re selling now, try putting yourself in a buyers’ shoes and look over the house carefully to eliminate even the smallest and seemingly insignificant challenge to buyers choosing yours from all the others they’re viewing. Remember, if you think it’s too much trouble to paint or repair, the buyer certainly will as well. Most folks don’t want to buy a home needing to do much before they can really enjoy their new home. Make it impossible for them not to buy.

Try starting from scratch and get a fresh start. Go through your home carefully, listing everything, then use that as a to-do list to be sure your home is as stellar as possible before launching your home on the market again.

Christmas Punch

2007-12-22T06:23:00.000-06:00

Over the years I have noticed something interesting about the real estate market at Christmas time. It usually gets rather quiet the week or two leading up to Christmas, then bingo! It's like the sleepy shoppers come to life intent on fulfilling a very important New Year resolution, despite the steady season of mall shopping, gift wrapping & parties. The clue to this lies with the season itself of course. After spreading joy & gifts with those around us, we often make the decision to do something for ourselves that we've had in the brewing stages. The New Year is a great "starting point" to begin new adventures like home buying. And of course, many company transfers occur during the new year transition period to help with school schedules. I have a new lsiting going on today over in Preston Highlands, Dallas. 2,300 sq. ft., pool & spa, granites, corians, ceramics. This one is a real treat. I should have it launched by Christmas. Check back & I'll have the posting on this blog. Now...to just find one of those newly motivated buyers!

Welcome

2007-12-18T16:51:00.000-06:00

Welcome to the The Real Deal! Blogging has become an all too important means of word of mouth communication and education. Of course it's a great medium for many topics, but we're particulary interested in real estate related items in this blog. As an experienced real estate consultant I will gladly share industry informationn on issues effecting homeowners, prospective homeowners & investors as well as field all your inquiries in a timely and professional manner. I will provide information from my own experiences, research specific items and details as needed to assure the information provided is accurate. References will be sited as available.

Selling & Buying
Investments
Mortgage

I hope this is useful to you. I'll be providing some area stats at the first of the the year and an introductory theme to kick things off. Along that line, if you want to put up some suggestions for topics effecting you right now, I'd love to hear from you!
Greg

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Friday Five: Mortgage Relief, Refi Proposal, and More

How to Inspect Windows, Doors to Stop Air and Water Leaks

Saving Money with Salvaged Building Materials

The Market's Ups and Downs

Home Improvement Apps for iPhone, Android, and BlackBerry: Your Digital Toolbox

Appliance Maintenance: Heating, Venting, and Air Conditioning (HVAC)

Market News

Market News

Market News

Laundry Room Storage: 5 Naked Truths

Great Investment Deals

Home Ownersite - Sizzling Summer Home Maintenance Tips

Market News

Investments With Security

Public Improvement Districts

Ask Greg...

Homebuyer Tax Credit Extended & Upgraded

What You Need to Know About Short Sales

$8,000 Tax Credit Spurs Homebuyer Attention

Federal Housing Rescue Plan Launches

2009 Homebuyer Tax Credit

Articles You Can Use

Steady Income Planning

Housing Stimulus Bill

Stronger Dallas-Plano Real Estate Market A Plus

Growth Is On The Horizon

May '08 North Texas Housing Numbers Show Optimism...

1st Qtr '08 Market Data

Don't Fear Falling Prices

Fabulous New Listing In Preston Highlands...

Another Interest Rate Drop!

Interest Rates Drop

DFW Home Sale Times 2nd Best of 19 Major Markets

2008 Starts Strong Despite Slowdown

Christmas Punch

Welcome