New Albany Ohio Real Estate

With the $8,000 tax credit for 1st time home buyers about to expire on November 30th, I was expecting to see a lot more  New Albany homes for sale and Columbus homes for sale going into contract.  When the tax credit was announced, the experts thought it would jump start the housing market.  From my vantage point, there has been little “trickle up” effect seen in New Albany Ohio real estate.

Usually when one home sells, the seller buys another home, and the seller of that home buys another home and it goes on up the line with buyers trading up or down to different homes.  What has actually happened is that a large number of the buyers who have taken advantage of the tax credit have purchased NEW homes which means there is no ripple effect following the sale of that home.  The builders have moved a lot of spec inventory but the resale market remains unchanged.

New Tax Credit Being Considered

A bill was introduced in the Senate to extend and EXPAND the home buyer incentives.  It’s targeted at the “move up market” which was what was missing from the current incentive.  The passage of this bill is what I think will finally launch a recovery of the entire housing market.
The proposal being would extend a $15,000 tax credit to anyone who purchases a home through the end of next year.  A recent Moody’s Economy.com analysis suggests that the $15,000 credit would result in the sale of an additional 675,000 nationally – New Albany, Ohio and the Greater Columbus area would surely see the number of homes sold as well and, hopefully, a gradual return of some of the home equity that was lost during the past several years.  Stay tuned or contact Kate & Tony for any updates on the bill.

Until next time,

Kate

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An article in the August 13th issue of the Columbus Dispatch referred to a growing foreclosure problem in the suburbs of Columbus.  I began to wonder if this applied to New Albany as well.  I searched the  Multiple Listing Service to see how many of the homes that have sold in NA so far this year were either Foreclosed properties or Short Sale properties.

22 Foreclosed or Short Sale Homes Sold in New Albany Year to Date

Year to date (through 8/26/09), 144 homes have sold in the New Albany School District.  22 of the homes sold were either Foreclosed properties or Bank Short Sales or 13% of the homes sold.  This is not an insignificant number but it does mean that 85% of the homes sold in New Albany this year were traditional resale or new build homes.  A breakdown by price range shows that only 5% of the homes sold above $400.0 were foreclosed or short sale properties while 22% of the homes sold under $400.0 were foreclosures or short sales.  A breakdown by price range is shown below.

Questions? Ask a  New Albany Ohio Realtor

Tony has earned the Certified Distressed Property Expert (CDPE) designation and can answer your questions about both foreclosures and short sales. Visit our website www.NewAlbanyOhio.com for information on Foreclosure and Short Sale Assistance.

Until next time,
Kate

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Today’s shifting economy has created some hardships and heartache within the real estate market, even in New Albany, Ohio.  You may have heard the term “short sale” being used lately with regards to real estate.   Many are unfamiliar with what a short sale is.  The “short” in short sale refers to a situation where the debt owed on a property is more than the current market value of the property.  In order for a property to transfer to a new owner, the seller’s lender needs to agree to accept less than is owed on the home. 

Short Sale vs Foreclosure

A short sale can be a way to prevent a foreclosure which is advantageous to both the seller and the lender.  The advantages to a short sale include a negotiated settlement with the bank and without attorneys or a court appearance.  The seller’s credit is “bruised” but not ruined and you can buy a home again in two years.  A short sale inevitably saves the lender money over the cost of the foreclosure process often making it the best solution for all parties. 

How Can Kate & Tony Help?

It’s important to have an advocate working for you – someone you can trust who will assist you through the bureaucracy of the mortgage industry.  We have counseled and assisted numerous clients through this process.  It’s a time consuming process but resolving this in the pre-foreclosure period is far more desirable than dealing with foreclosure.  It allows a seller to get on with their lives.  Tony and I welcome your questions.  Please contact Kate or Tony Thomas for a private consultation if you or someone you know finds themself needing to consider a short sale strategy.  You aren’t alone – we can help.

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The procedure for obtaining a loan continues to tighten as the banks, investors, and HUD figure out how best to insure that jumbo mortgages are secure investments.  The US Department of Housing and Urban Development (HUD) announced on April 1, 2008 that jumbo mortgages (loans exceeding the conforming loan limit of $417,000) may require 2 appraisals in order for a buyer to obtain a loan commitment.   According to the HUD Mortgagee Letter, a 2nd appraisal may be required when 3 requirements are met:

• The loan amount, excluding the upfront mortgage insurance premium, will exceed $417,000, and
• The Loan-to-Value equals or exceeds 95%, and
• The property is determined as being in a declining market.  A declining market is determined by either the appraiser or the lender.

Every time I speak with one of our lenders, it seems there are more and more changes that need to be understood and incorporated into the mortgage approval process.  However, this is probably a good change… though it could slow down or add additional cost to the process.  I find myself counseling our buyers that there is a little bit of a learning curve as everyone becomes more familiar with the sweeping changes that have taken place in the mortgage industry.

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It’s no secret that real estate and banking have been in the news for all the wrong reasons during the past 12 months. Yesterday, we received great news from our preferred lender, Scott Miller, at National City Mortgage.  Interest rates are at long time lows right now.   Yesterday, the rates for a 30 year fixed rate dropped to 5.49% and the rate for a 15 year fixed mortgage dropped to 4.99%. According to The New York Times, most economists don’t believe rates will decline much more in the near future.

We’re not sure if we will see another time in the next 10 years where extremely low interest rates are coupled with lowered home prices.   This unusual alignment of low interest rates and low sale prices makes for a very opportunistic time to BUY a home, particularly if you would like to trade up to a larger home.   If you are planning on SELLING, the lower rates allows more people to qualify to purchase your property…producing a larger potential pool of buyers.

Tony and I would love to talk to you about any questions you may have about your current home or the market in a neighborhood that interests you.  Just call us or email us to arrange a confidential consultation.  We look forward to hearing from you.

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