The Kestner Team

Nine Consecutive Gains for Pending Home Sales

December 14th, 2009 12:00 PM

Nine Consecutive Gains for Pending Home Sales

Washington, December 01, 2009

Pending home sales have risen for nine months in a row, a first for the series of the index since its inception in 2001, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in October, increased 3.7 percent to 114.1 from 110.0 in September, and is 31.8 percent above October 2008 when it was 86.6. The rise from a year ago is the biggest annual increase ever recorded for the index, which is at the highest level since March 2006 when it was 115.2.

Lawrence Yun, NAR chief economist, said home sales are experiencing a pendulum swing. “Keep in mind that housing had been underperforming over most of the past year. Based on the demographics of our growing population, existing-home sales should be in the range of 5.5 million to 6.0 million annually, but we were well below the 5-million mark before the home buyer tax credit stimulus,” he said. “This means the tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future.

The PHSI in the Northeast surged 19.9 percent to 100.2 in October and is 44.2 percent above a year ago. In the Midwest the index rose 11.6 percent to 109.6 and is 36.6 percent higher than October 2008. Pending home sales in the South increased 5.4 percent to an index of 115.4, which is 31.6 percent above a year ago. In the West the index fell 11.2 percent to 127.7 but is 21.9 percent above October 2008.

Yun cautioned that home sales could dip in the months ahead. “The expanded tax credit has only been available for the past three weeks, but the time between when buyers start looking at homes until they close on a sale can take anywhere from three to five months. Given the lag time, we could see a temporary decline in closed existing-home sales from December until early spring when we get another surge, but the weak job market remains a major concern and could slow the recovery process.

“Still, as inventories continue to decline and balance is gradually restored between buyers and sellers, we should reach self-sustaining housing conditions and firming home prices in most areas around the middle of 2010. That would mean broad wealth stabilization for the vast number of middle-class families,” Yun said.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

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*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

Existing-home sales for November will be reported December 22 and the next Pending Home Sales Index will be on January 5; release times are 10 a.m. EST.

Posted by Nina Kestner and Kevin Lennon The Kestner Team on December 14th, 2009 12:00 PMPost a Comment (0)

5 Home Remodeling Trends for the New Year

December 28th, 2009 5:06 PM

5 Home Remodeling Trends for the New Year

Remodeling and decorating trends in 2010 are likely to reflect the fact that many home owners are settling in for the long haul.

Here are some ideas for updating homes and gardens from decorators and leading real estate practitioners:

Environmentally sensitive furniture. Natural fibers, sustainable woods, and recycled products are key to attracting environmentally concerned buyers.
Classic neutral colors. Deep gray browns and gray blues, muted beige, and chalky white will be particularly popular shades, Pittsburgh Paints predicts.
Backyard gardens. First Lady Michelle Obama led the way in 2009 when she installed one at the White House.
Backyard living. Wood-deck additions offer an 80.6 percent payback, according to the annual Cost vs. Value Report from Remodeling magazine and REALTOR® magazine. Simple fire pits and outdoor fireplaces also will be popular, trend-watchers say.
Made in America. As more people feel compelled to support local employment, U.S. manufactured products and antiques will become more popular, says Patricia Shackelford, author of design blog, Mrs. Blandings.

Source: Orlando Sentinel, Jean Patteson (12/26/2009) and Kansas City Star, Stacy Downs (12/27/2009)

Posted by Nina Kestner and Kevin Lennon The Kestner Team on December 28th, 2009 5:06 PMPost a Comment (0)

Great News about Nashville Home Sales!!

December 10th, 2009 1:33 PM

GREATER NASHVILLE HOME SALES INCREASE MORE THAN 50 PERCENT IN NOVEMBER

There were 1,973 home closings in Greater Nashville during November, representing a 58.7 percent increase from the 1,243 closings reported during November of 2008. And, there have been 19,571 closings so far in 2009, which is 14.3 percent lower than the 22,824 closings for the same period in 2008.

The median residential price in November of this year was $158,500 and for a condominium the median price was $144,400. That compares with median prices of $165,500 and $150,000 respectively in November of last year.

Inventory is down to 22,528, compared with 23,467 in November of 2008. You can click here for a copy of the news release with more detail on home sales for November. And, you can click here for access to historical home sales data available on the GNAR website.

Posted by Nina Kestner and Kevin Lennon The Kestner Team on December 10th, 2009 1:33 PMPost a Comment (0)

The Home Buyer Tax Credit Applies to Existing Homeowners as well.

December 7th, 2009 2:20 PM

By now, you’ve probably seen much news concerning the Homebuyer Tax Credit. Are you aware that the tax credit applies to existing homeowners as well?

To qualify as a current homeowner:

You must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.
The amount of credit is up to $6,500 ($3,250, married filing separately).
The purchase must occur between November 7, 2009 and April 30, 2010 (you’ll then have until July 1, 2010 to close).
You can purchase a home up to $800,000.
Income limits are $125,000 (Single) and $225,000 (Married).

With interest rates at historically low levels and existing inventory already in place, the Homebuyer Tax Credit allows both you and the potential buyer of your home to take advantage of one of the greatest opportunities in history to purchase a home.

We would be honored to market your home to one of the many buyers currently entering the market to take advantage of this six month window of opportunity. In marketing your home, it would be our goal to ensure that you receive top dollar for your property. Likewise, in identifying and purchasing your new home, it would be our goal to ensure that your negotiated deal is most favorable to you.

For more information on Homebuyer Tax Credit and to receive a free, comprehensive market analysis on what your home might bring in the current market, call us at 615-289-1340 or email us at Nkestner@comcast.net.

Thanks.

The Kestner Team

Nina Kestner McIver &

Kevin Lennon

Posted by Nina Kestner and Kevin Lennon The Kestner Team on December 7th, 2009 2:20 PMPost a Comment (0)

The Basics on the Home Buyer Tax Credit

December 3rd, 2009 4:18 PM

The Basics: Extended Home Buyer Tax Credit 2009/2010

Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

Who Qualifies for the Extended Credit?

First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

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.

If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer's Credit Amount Determined?

Each home buyer’s tax credit is determined by tow additional factors:

The price of the home.
The buyer's income.

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

Posted by Nina Kestner and Kevin Lennon The Kestner Team on December 3rd, 2009 4:18 PMPost a Comment (0)