It’s official. Will buyers come out to play?
What’s it mean to you and me? It all depends on where you live and what your situation is. One sure thing, although we are silly-putty pounded by media reports referring to the “National Housing Market”, there is no such thing. The national average for Month’s Supply of For Sale Listing Inventory is 11 months. In The Woodlands, it’s less than 5 months. Real estate markets are local, hyper-local in fact. For example, the Phoenix, Arizona housing market in not like the Austin, Texas market. Real estate sales and listing inventory in Stockton, California is not similar to San Francisco, California. Miami Beach, Florida is not comparable to Houston, Texas. Hyper-Local means that in township like The Woodlands, real estate market activity will be different that the entire city of Houston. Inside The Woodlands, the real estate market statistics are different from Village to Village, sales velocity, listing inventory, Days On Market and months supply of inventory also varies from individual neighborhood to neighborhood, street to street and even house to house.
What’s the take away. If you want to know where you stand, what your property is worth, how long would it take to sell, are prices going up or down, you will want to consult with your favorite, trusted Realtor. They can research and create an up to the minute hyper-local statistical report (called a CMA or Comprehensive Market Analysis) and share their real-time perspective, what the data means and what their interactive experiences are with the real clients and customers in today’s market place.
Back to the Housing Bill. It’s signed and it’s official. In my opinion it’s a big deal for citizens buying and selling real estate. Why? Because it bolsters Fannie and Freedie Mac, which provides consumer and institutional confidence and the assurance of mortgage money availability. It also raises the conforming loan limits from $417,500 to $625,500, providing lower interest rate loans to more people. It provides a Tax Credit for first time home buyers.
Bottom line, it provides confidence, security and cheaper mortgage money to more people, ergo consumers can buy homes at less expensive rates. All good and positive.
Want to read the whole CNNmoney.com article - Click Here
Here’s the summary
A stronger regulator for the GSEs. The new regulator will have a greater say over how well funded the two government sponsored enterprises (GSEs) are - a major concern in the markets that has sent stocks in both companies plunging in the past two months.
A permanent increase in “conforming loan” limits. The law will permanently increase the cap on the size of mortgages guaranteed by Fannie and Freddie to a maximum of $625,500 from $417,000. The FHA maximum loan limits for high-cost areas would also increase to a maximum of $625,500. Higher loan limits will make it easier for borrowers to get mortgages, because those mortgages are more likely to be traded if they are considered conforming.
A new home-buyer credit. The new law includes a tax refund for first-time home buyers worth up to 10% of a home’s purchase price but no more than $7,500. The refund, however, serves more as an interest-free loan, since it would have to be paid back over 15 years in equal installments.
A ban on down-payment assistance from sellers. The new law eliminates a program that has allowed sellers to provide down payment assistance for FHA loans. The law would also increase to 3.5% from 3% the down payment requirement for borrowers getting FHA loans.
A new affordable housing trust fund. The law establishes a permanent fund to promote affordable housing. The fund will be paid for by fees from Fannie and Freddie.
Bolster Fannie and FreddieA late and controversial addition to the new housing law provides temporary authority for the Treasury to lend a financial hand to Fannie Mae and Freddie Mac if the Treasury deems it necessary to help stabilize markets
If we can help you with anything or you have questions, give me a call, Ken Brand 832-797-1779. If I don’t know the answer, I know lot’s of specialists and I will find out for you. Thanks