Realty Revolution LLC Blog

The Tax Credit Is Really A Loan

The recently announced tax credit for first-time home buyers - part of the Housing and Economic Recovery Act - is definitely a good deal for qualified buyers. However, the credit is not a cash gift from the government.

The credit is 10 percent of the home's purchase price, up to $7,500. The maximum credit is $3,750 for married couples filing separately, or $7,500 for unmarried couples who jointly purchased the home. Rather than a simple tax credit, the amount must be paid back to the government in equal installments over a period of 15 years. It could be more accurately described as an interest-free loan administered through the tax code - still a very good deal for many buyers. The pay-back amount for a maximum "credit" would be $500 per year or about $42 per month.

The credit offer is in effect for any home purchased by a first-time buyer on or after April 9th of this year and before July 1. 2009. You'll be required to start repaying the amount in the second tax year after the home purchase. The definition of a first-time buyer is one who has not owned a primary residence for at least the past three years.

The credit will allow many buyers to purchase a home now, instead of waiting while they save more money and improve their chances of qualifying for a mortgage. It will also help to reduce the inventory of unsold homes.

Poll: Homeowners Optimistic About Their Property Values

Homeowners aren't going to let the worst national housing downturn in a generation interfere with their property value expectations.

A survey earlier this week found that asking prices for Dallas-area homes had risen more than 2 percent in the last three months.

Now, a national survey finds that 40 percent of U.S. homeowners think their house is worth more than it was a year ago. And 22 percent more believe their home price is unchanged, according to the poll by online real estate site Zillow.

Poll: Homeowners optimistic about their property values

Source: Dallas Morning News - Steve Brown

I've Never Been Convicted (in Texas)

You can't get a real estate license these days until you provide your fingerprints for a DPS criminal background check.....

I've never been convicted (in Texas)

Source: Teaxas Association of REALTORs(R)

Texas’ Real Estate Markets Healthier Than Most

Texas’ real estate markets never caught the housing bust bug that spread like the flu across most of the United States. But now the doctors tell me that the Lone Star State is showing some of the symptoms that flattened residential sales nationwide.

Texas’ real estate markets healthier than most 

Source: Texas Association of REALTORs(R)

Texas Real Estate Positively Defiant

Texas is known for being stubbornly different. Rightfully so. As it turns out, this reputation holds true for real estate, too.

For some time now, headlines have spelled doom and gloom for real estate and the economy. The housing bubble. The subprime mess. We’ve all had a steady dose of extreme examples from the left and right coasts. Meanwhile, though, Texas has been quietly chugging along, in many cases running counter to national trends and even defying conventional logic...

Texas real estate positively defiant

Source: Texas Association of REALTORs(R) - Amy Lemen

Report: U.S. Pending Home Sales Move Higher

NEW YORK – An industry group says pending homes sales unexpectedly increased in April to the highest reading since October, but are still off more than 13 percent from a year ago.

The National Association of Realtors said Monday its seasonally adjusted index of pending sales for existing homes rose to 88.2 from a March reading of 83.0, the index's low. The index stood at 101.5 in April 2007.

Wall Street economists polled by Thomson/IFR had predicted the index would remain steady at 83.

A reading of 100 is equal to the average level of sales activity in 2001, when the index started.

Report: U.S. Pending Home Sales Move Higher

Source: AP via The Dallas Morning News

Report: Dallas-Fort Worth is a Good Place to Build Home Equity

Potential Dallas-Fort Worth homebuyers who are nervous about whether it's a good time to purchase a house might find some comfort in a new report. But analysts caution not to get carried away with the data.

The study by the Center for Economic and Policy Research and National Low Income Housing Coalition projects that D-FW homebuyers could see one of the best increases in equity in the country during the next few years.

Report: Dallas-Fort Worth is a good place to build home equity

Source: Dallas Morning News - Steve Brown

Final Walk-Through

Closing is just days away! You’re about to make a huge investment and you’ve been running around town taking care of business. There are only a couple of things left to do—one of them is the final walk-through inspection of the property. You want to make sure the property is in the condition you expect it to be in when you take ownership, so don’t neglect this important process.

Final walk-through

Source: Texas Association of REALTOR(R)s

Rounded Corners Adding To New Homes' Appeal

When it comes to new houses, builders now think in terms of "curve" appeal.

Homes throughout the Dallas area, especially upscale ones, are incorporating rounded touches inside and out. The features may be as simple as drywall curved at the corners or as involved as barrel-vaulted ceilings and turrets.

Rounded corners adding to new homes' appeal

Source: Dallas Morning News - Lisa Martin

Ask George and Chuck

Dear George: Can my neighbor block my driveway?.......

Ask George and Chuck

Source: Texas Association of REALTOR(R)s

Fair Housing's Important To Us All

April is Fair Housing Month across the country, but what does this mean to us?.....

Fair housing's important to us all

Source: Texas Association of REALTOR(R)s

Consumer Protections Help Curtail Texas Foreclosures

Nationwide, the number of home foreclosures rose nearly 60% from February 2007 to February 2008, while foreclosures in Texas actually decreased 1% during the same period.

Consumer protections help curtail Texas foreclosures

Source: Texas Association of REALTORs

Report: Housing Slump Hitting Second Homes

A nationwide housing recession is putting a big dent in second home sales. Vacation home sales dropped by more than 30 percent last year from 2006, the National Association of Realtors said in a report released Friday. And sales of homes to investors fell by more than 18 percent from a year earlier totals, the real estate trade association found in its annual survey.

Report: Housing slump hitting second homes

Source: Steve Brown - Dallas Morning News

Strong Texas Economy Bucks National Trends

The Texas economy is marching to the beat of its own drummer, despite a national economy that’s singing a different tune. Experts believe a big reason for Texas’ strong position is oil. “Right now, things are looking very well,” the state’s chief revenue estimator, John Heleman, told the Associated Press in March 2008.

Strong Texas economy bucks national trends

Source: Texas Assocation of REALTORs

The Market May Be Shifting

We've all been watching the seller's market of the early 2000s decline sharply into the buyer's market of 2007. In 2000, the demand for homes far exceeded the supply. These were great times for sellers as homes sold fast and with few concessions. Fast forward to 2007 when supply exceeded demand. Homes sat on the market and sellers had to make more concessions since buyers had so many choices when looking for a new home to purchase.

According to statistics from the North Texas Real Estate Information System, new listings have declined significantly over the past six months. Why is this important? New listings add to the supply of available homes on the market. Combine this decrease in supply with an increase in buyer activity and we are edging closer to a seller's market again.

We've both been out showing homes over the past few months and can confirm that there are fewer choices in certain prices ranges. Clean, well-kept, and well marketed homes are selling quickly. Homes that are in poor condition or don't show well continue to sit on the market.

While the market has not totally shifted back in favor of sellers, it is becoming more balanced. If your home is on the market, it needs to show well. Don't forget that the lawn and curb appeal are very important first impression makers. Get your spring flowers planted now and make sure you've done your spring cleaning inside. These will make your house more attractive to home buyers.

Authors: Tom and Gina Branch

Government To Free Up Mortgage Money (AP)

WASHINGTON – The government announced Wednesday that it is freeing up billions of dollars at Fannie Mae and Freddie Mac, money that would be used to help homeowners refinance mortgages on the brink of default.

Government to free up mortgage money 9:00 AM CT

Source: Associated Press via The Dallas Morning News

Ask George and Chuck - Landlord Disputes, Landlord Problems

Dear George: Can I be charged rent for living in a place I co-own?.......

Ask George and Chuck

Source: Answers to real estate questions as appearing in the Houston Chronicle

U.S. Homebuilder Sentiment Remains Low (AP)

The National Association of Home Builders said Monday its housing market index for March was the third lowest reading on record. The index, which gauges builders' perceptions of current conditions, interest from potential buyers and expectations for home sales over the next six months, came in at 20 in March for the second consecutive month.

U.S. homebuilder sentiment remains low

Source: Associated Press Via The Dallas Morning News

White House Offers Plan to Ward Off Credit Crises

WASHINGTON — After months of watching a growing credit crisis made worse by steadily eroding home prices, the Bush administration responded on Thursday with the outlines of a plan that officials emphasized is meant more to prevent future crises than to address the current one.

White House Offers Plan to Ward Off Credit Crises

Source: NY Times - Stephen Labaton

Real Estate and Mortgage Newsletter - March 2008

Our March 2008 Newsletter is now available for viewing.

March's lead story is titled, "Getting Married? Reduce Your Mortgage Now." Marriage is a true union. It's a union of body, mind and soul. Oh yeah, and don't forget about the union of finances. This is one aspect of marriage that few couples seem to remember. All of the debt on one side of the union is automatically adopted by the other. If you're getting married soon, and one of you own a home that the two of you will be living in, then now is the perfect time to consider reducing your mortgage. Not sure how to do it? Read on for a few tips.

Be sure to check out the charts on Page 2. Note these charts reflect trends across the nation rather than in the local DFW market.

Click here for our March Newsletter