Archive for the 'Sellers' Category
As The Supply Of New Knoxville Homes Grows, So Does The Opportunity For A “Good Deal”
February 25th, 2010 categories: Existing Home Sales, Home Price Index, Housing Starts, Market Trends, Mortgage Rates, New Home Sales, Sellers, Statistics
Knoxville New Home Buyers Don’t Miss Your Best Buying Opportunity Ever
The housing recovery showed particular weakness in the Knoxville New Homes Sales category last month — good news for Knoxville TN homebuyers in in the Knoxville Real Estate Market and around the country.
A “new home” is a home for which there’s no previous owner.
New Home Sales fell 11 percent from the month prior and posted the fewest units sold in a month since 1963 — the year the government first started tracking New Home Sales data.
Right now, there are roughly 234,000 new homes for sale nationwide and, at the current sales pace, it would take 9.1 months to sell them all. This is nearly 2 months longer than at October 2009’s pace.
The reasons for the spike in supply are varied:
- The original home buyer tax credit expired in November
- Weather conditions were awful in most of the country in January
- Weak employment and consumer confidence continue to hinder big ticket sales
Now, these might be less-than-optimal developments for the economy as a whole, but for buyers of new homes, it’s a welcome turn of events. Home prices are based on supply and demand, after all.
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December 2009 Case-Shiller Data Shows Battered Markets In Bona Fide Recovery
February 24th, 2010 categories: Buyers, Case-Shiller Index, General, Market Trends, Sellers, Statistics
Using data compiled in December, Standard & Poors released its Case-Shiller Index Tuesday. The report shows home prices down just 2.5% on an annual basis, a figure much lower than the 8.7% annual drop reported after Q3.
According to Case-Shiller representatives, the housing market is “in better shape than it was this time last year”, but some of the summer’s momentum has been lost. 15 of 20 tracked markets declined in value between November and December 2009.
Meanwhile, it’s interesting to note the 5 markets that didn’t decline — Detroit, Los Angeles, Las Vegas, Phoenix and San Diego. Each of these metro regions were among the hardest hit nationwide when home prices first broke. Now, they’re leading the pack in price recovery.
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Northshore Town Center chosen as site of elementary school in West Knoxville
February 12th, 2010 categories: Buyers, General, Market Trends, Sellers
Knox County School Board has chosen the Northshore Town Center as the new location for it’s elementary school in West Knoxville. Knox County Schools had been considering 3 different locations that I wrote about in a previous post
The vote was 7-1 with Cindy Buttry being the only no vote. Frankly I think she voted the right way. The other locations where off Choto and Northshore. From a Realtor’s perspective I think the locations off Choto and Northshore where better choices. I think this location is too close to A.L Lotts Elementary School They will move kids from A. L Lotts and Farragut Elementary. The future growth is happening out West Knox in the Farragut Area.
I don’t think it was the right location for the new elementary school but the Knox County School Board thinks different. How about you what do you think?
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Knoxville One Of The Top 5 Cities Real Estate Market To Rebound First….
January 23rd, 2010 categories: Buyers, General, Market Trends, Sellers
The cities that are coming back the strongest are the ones that did not hit have the pricing bubble, which was followed by the foreclosure crisis. Forbes did a study of America’s 100 largest Metropolitan Statistical Areas (MSA) which are defined by US census. One of the key factors in the ranking is the low foreclosure rate. Forbes also looked at the delinquency rate of the city and foreclosures will be much lower and will clear up faster in cities with low delinquency rate. They looked at the trends for these cities to determine the ranking.
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FHA To Change Guidelines…How Will It Effect Knoxville Home Buyers??
January 20th, 2010 categories: Buyers, General, Market Trends, Sellers
Patti Francisco with Wells Fargo sent along information on this anticipated announcement from HUD today relaying changes to FHA lending terms in it’s continued effort to shore up the program against increasing financial losses and the threat of needing a government bailout.
The changes being announced are expected to be:
- Increase the Mortgage Insurance Premium which is collected at closing and most often financed with the loan from 1.75% to 2.25% of the loan amount.
- Require that any borrower with a credit score less than 580 put down 10%. 3.5% down will continue to be required by HUD with credit scores equal to and greater than 580. ***Note that most lenders apply their own credit policy overlay on top of the HUD credit score requirements, i.e. Wells Fargo currently has a credit score minimum of 600 for our FHA transactions. Most other lenders have a 620 or 640 FHA credit score minimum.
- Seller concessions will be limited to 3% of the purchase price versus the currently 6% limit.
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Knoxville Home Buyers Take Advantage Of The Tax Credit
January 8th, 2010 categories: Buyers, General, Market Trends, Sellers
As we get started in 2010 many Knoxville Home Buyers are wondering who can take advantage of the extension of the tax credit. It isn’t just limited to first time Knoxville Home Buyers buying their first home.
Originally created in 2008, the home-buyer tax credit has evolved from a $7,500 credit, which had to be repaid by the home buyer over the course of 15 years, to an $8,000 tax credit with no repayment required in 2009. Now, for a limited time in 2010, the $8,000 home buyer tax credit will still be available to first-time home buyers and certain current homeowners will also be eligible for a $6,500 credit.
To help area Knoxville Home Buyers here are the highlights of the Tax Credit.
Which Knoxville Home Buyers can claim the credit?
“First-time home buyers” who purchase homes between November 7, 2009 and April 30, 2010 are eligible for the credit. To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
For current Knoxville homeowners purchasing a home during the same time frame, they are also eligible for a tax credit, so long as the home being sold or vacated was their principal residence for five consecutive years within the last eight. To elaborate, it must be the same home; it is not enough that they have been homeowners for five consecutive years, they must have been in the same home for five consecutive years.
Another key point is that the existing Knoxville home does not need to be sold. One must, however, occupy the new home as a principal residence and do so for three years or risk recapture of the credit. Also, the new home does not need to cost more than the old home despite the concept that it is directed at “move up” buyers.
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New School Proposed For West Knoxville
December 18th, 2009 categories: Buyers, General, Market Trends, Sellers
Knox County Schools are considering a new elementary school for West Knoxville. There are four different sites that the school board is considering…
Site 1 is the Northshore Town Center it is a 14 acre parcel just off Pellissippi Pkwy. Very convenient location.
Site 2 is Choto 1 which is a 15 acre parcel next to the new YMCA in Jefferson Park off Northshore
Site 3 is Choto 2 is on the south side of Northshore just west of Choto
Site 4 is Choto 3 is a 23 acre parcel on Choto near the intersection of Northshore
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A Simple Explanation Of The Federal Reserve Statement (December 16, 2009 Edition)
December 16th, 2009 categories: Buyers, General, Market Trends, Sellers
The Federal Open Market Committee voted to leave the Fed Funds Rate within its target range of 0.000-0.250 percent.
In its press release, the FOMC noted that the U.S. economy “has continued to pick up”, that the jobs markets is getting better, and that housing market has shown “some signs of improvement” lately.
It’s the fourth straight statement in which the Fed speaks optimistically about the U.S. economy – a signal that the worst of the recession is likely behind us.
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The Federal Reserve’s Relationship To Mortgage Rates
December 15th, 2009 categories: Buyers, General, Knoxville Short Sales, Market Trends, Sellers
The Federal Open Market Committee meets today for the last time in 2009. It’s a 2-day meeting and the Fed is expected to leave the Fed Funds Rate near 0.000 percent.
But that doesn’t mean mortgage rates won’t change.
See, a major misconception among the public is that the Federal Reserve sets mortgage rates. That’s false. Mortgage rates are based on the price of mortgage-backed bonds.
As an example, since 2000, the Fed Funds Rate and the 30-year fixed rate mortgage have been within 1 percent of each other at times, and as far apart as 5 percent at others.
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Foreclosure Activity Falls For The 4th Straight Month
December 10th, 2009 categories: Buyers, General, Knoxville Short Sales, Market Trends, Sellers
Since peaking in July 2009, national foreclosure activity has dropped through 4 consecutive months.
On a month-to-month basis, November’s foreclosure activity fell another 8 percent.
However, national foreclosure activity continues to be dominated by a minority of states.
As reported by RealtyTrac.com, more than half of November’s foreclosure-related activity sourced from just 4 states:
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