Buyers – Page 3 – Parsons Realty

Redding Home Sales for January

Redding homes sales were up when compared to last January, however price per square foot and the median home price continue to decline.

The Shasta County MLS has 63 homes sold in Redding for January 2010 and 55 for January ’09. The average sold price per square foot for Jan ’10 was $127 compared to $137 this time last year.

The median home price also declined from $241,988 last January to $219,131 this month.

Newer homes in Redding continue to hold stronger values with the average sales price being $286,172 and an average price per square foot of $155.90.

Shasta County home sales also saw in increase from 98 homes sold this time last year to 108 this January.

Home Buyers $8,000 Tax Credit Extended

The U.S. House of Representatives decided Thursday to extend and expand the federal homebuyer tax credit. The legislation passed with a vote of 403 to 12.

It cleared the Senate Wednesday, with unanimous approval. President Obama is expected to pen his name to the bill on Friday.

The $8,000 tax incentive for first-time homebuyers, which had an expiration date of November 30, will be extended through April 30 of next year.

The tax break has been expanded to include a new category of buyers – those who have lived in their current home for at least five years, but want to purchase a new home as their primary residence. The credit amount for these buyers will begin on December 1 and is $6,500.

The April 30 deadline is the date by which buyers must have signed a purchase contract, eliminating the mad frenzy to eek closing out by the sunset date. Another 60-day window beyond the end of April is allowed to complete the closing of the deal.

The credit is available for the purchase of primary residence homes costing $800,000 or less – in other words, no tax break for vacation homes or investment properties.

The measure raises the income limits for those able to claim the credit to $125,000 for an individual and $225,000 for a couple.

Sen. Johnny Isakson, a former real estate agent himself, has pressed his fellow lawmakers for a meaningful tax credit for homebuyers since January of last year.

“Tax credits like this only work by creating the sense of urgency to take advantage of them,’ Isakson said. “This is the last extension of the homebuyer tax credit, and I urge all Americans whether they’re first-time buyers who’ve always dreamed of having a home of their own or someone who’s been gridlocked in the failure of our move-up market to take advantage of this opportunity.”

The legislation also includes anti-fraud language that gives the Internal Revenue Service greater oversight during the processing of the return rather than waiting for an audit situation. The amendment requires the taxpayer claiming the credit to be 18 or older, and requires a HUD-1 settlement statement to be attached when claiming the credit.

Robert E. Story, Jr., CMB, chairman of the Mortgage Bankers Association (MBA), called the passage of the tax credit extension a critical step in sustaining the momentum that’s beginning to emerge in the housing and mortgage markets.

“The existing credit for first-time homebuyers has helped move a segment of potential homebuyers off the sidelines and into their first homes,” Story said. “By expanding it to qualified existing homeowners, we can help stimulate even more home purchases for qualified buyers.”

Story also commended lawmakers for including provisions in the bill that will help eliminate fraudulent use of the tax credit.

Now Available- Search Tehama County MLS

We just finished adding the Tehama County Multiple Listing Service (MLS) to our website. This upgraded site allows you to search all available homes is Tehama County with the same MLS data that local REALTORs use. There’s no cost to you and no registration required. Happy house hunting!

Start your search here!

https://www.parsonsrealty.com/parsons_realty/188/tehama-county-mls-search-all-properties-for-sale/

The Tehama County MLS serves the following areas Red Bluff, Cottonwood, Lake California, Corning, Gerber, Rancho Tehama, Paskenta, Mineral, Manton, Paynes Creek, & Proberta.

Fannie Mae Removes 4 Property Limit For Investors

Last Friday Fannie Mae announced that they are lifting the rule that limits investors to only four financed properties starting March 1st. Fannie Mae’s policy change will increase the limit of four financed properties to ten. This should get investors active again which will help keep the inventory of foreclosures and short sales down.

Homeowners buying a 5th, 6th, 7th, 8th, 9th or 10th home will need to meet the following standards, as set forth by Fannie Mae

1. 720 credit score

2. 25% downpayment for a 1-unit (30% for a 2-4 unit)

3. No mortgage delinquencies in the last 12 months

4. 6 months of reserves for each investment property

30% of U.S. Homebuyers Expect At Least A 50% Discount When Purchasing Foreclosure Properties.

Trulia & RealtyTrac released the results of a new study conducted on their behalf by Harris Interactive ® showing notable decreases from their previous survey in the willingness to buy foreclosed properties with three-quarters of respondents expecting a discount of at least 25 percent on a foreclosure purchase. In the previous survey conducted seven months ago, 54 percent of all U.S. adults surveyed said they would consider purchasing a foreclosed home, whereas now 47 percent of U.S. adults would consider purchasing a foreclosure, a drop of seven percentage points in only seven months. These findings are part of a regular series of surveys conducted by Trulia to better understand consumer sentiment around housing issues.

During the last seven months, negative sentiment around buying a foreclosure rose. In April of 2008, 69 percent of U.S. adults originally felt that there were negative aspects to purchasing a foreclosed home (www.trulia.com). In this recent study, conducted during a three-day period in November, 80 percent of U.S. adults are now concerned with negative aspects, citing hidden costs, risky process, home losing value and personal connection with foreclosure as the core concerns. To compensate for perceived risks, consumers expect hefty discounts on foreclosed homes. More than 75 percent of consumers think they should pay at least 25 percent less for a foreclosed home, with three in ten consumers expecting a major discount of at least 50 percent less than a comparable home not in foreclosure.

“What’s significant about our findings is that just as the market is being flooded with more foreclosures, homebuyers are more hesitant to buy them. Misinformation around foreclosures abounds and that’s dangerous for the market and for homebuyers,” said Pete Flint, co-founder and CEO of Trulia. “Information is power and at Trulia we are giving homebuyers the information they need to make a fully informed decision about whether a foreclosed property is a good buy or investment for them.”

“The results of this study are eye-opening and highlight the need for consumer education about foreclosures. Being that the sale of foreclosed properties has been on the rise due to the increased inventory and discounts available on foreclosed homes, it is somewhat counterintuitive — although not totally unexpected — that consumers are more hesitant to purchase a foreclosed property,” said Rick Sharga, senior vice president of RealtyTrac. “We expect that foreclosures will continue to dominate the market in 2009, and well-educated consumers will be able to find great deals on these properties.”

Some Groups Now Less Inclined to Consider Purchase
The results of the most recent Harris Interactive ® survey provide nuanced insight into the shift in confidence for consumers looking to purchase a foreclosed home. In particular:

56 percent of single/never married adults were at least somewhat likely to consider purchasing a foreclosed home, down from 60 % in April.

43 percent of married adults were at least somewhat likely to consider purchasing a foreclosed home, down from 50% in April.

42 percent of divorced/separated/widowed adults were at least somewhat likely to consider purchasing a foreclosed home, down from 50% from April.

Update To Our Shasta County Public MLS

We just finished upgrading our Shasta County Multiple Listing Service (MLS) web site. The upgraded site allows you to search all available homes is Shasta County with the same MLS data that local REALTORs use. There’s no cost to you and we’ve added some really cool new features, check it out.

1. Create custom searches and you’ll see only see the properties you’re interested in.

2. Receive automatic email. On a 24/7 basis, all new listings that meet your custom search criteria are automatically emailed to you.

3. Modify your custom search at any time. You’ll be the first to know about the hottest new listings.

Start searching the Shasta County MLS here https://www.parsonsrealty.com/parsons_realty/188/shasta-county-mls/