I've had a few people/clients inquire about this grant in the past few days and thought I should post all the information I have about it here. Now...GO GET YOUR MONEY!
What is the $6,000 Home Run grant?
The Home Run Grant is a mortgage assistance program that grants $6,000 to home buyers who purchase a newly constructed, never-occupied primary residence in Utah. The Home Run Grant is funded by the Housing Relief Restricted Special Revenue Fund, established by Utah Gov. Jon Huntsman, the Utah State Legislature and Utah Housing Corporation.
When is the Home Run program being launched?
The governor has signed the bill into law and the program is now launched.
Who is eligible to receive a 6,000 Home Run grant?
The Home Run grant is available to any Utah home buyer who meets the following qualifications:o Single person, income not to exceed $75,000. o Married couple, income not to exceed $150,000.o If more than one unmarried person is taking title to the eligible home, each such single person is subject to the $75,000 income limit.
Home buyers must occupy the purchased home as a primary, permanent residence no later than 30 days after closing.
If home buyers need a mortgage loan to purchase the home, the loan must be a fixed interest rate, amortizing mortgage loan with a term of 30 years or less. Cash buyers can also qualify by contacting Utah Housing Corporation directly.
How does a home buyer get the Home Run funds?
To get a first-come, first-served written commitment for the grant, home buyers must:
o Enter into a written contract to purchase a newly constructed home. o Contact a lender to obtain final underwriting approval for any needed financing. o Have their mortgage lender furnish required documentation to Utah Housing Corporation for the grant. o Utah Housing will reserve the $6,000 grant for 30 days.
What homes can be purchased with the $6,000 Home Run grant?
Homes must be recently constructed, single-family residences that have a certificate of occupancy or a final inspection. They cannot be previously occupied. Eligible property types include single-family detached homes, condominiums, planned unit developments (PUD), twin homes, town homes and manufactured homes permanently affixed to a foundation.
Do I have to be a first-time buyer to get a Home Run grant?
No. Home Run Grants are available to all home buyers who meet the income restrictions of $75,000 for singles, $150,000 for couples and, if more than one single person takes title, the $75,000 limit applies to each such single person.
How does a buyer apply for a 6,000 Home Run grant?
Mortgage lenders are the key link between the home buyer and the Home Run grant. The mortgage lender assists the home buyer to provide necessary information to secure the grant from Utah Housing Corporation. The home buyer does not work directly with Utah Housing Corporation (unless it is a cash buyer).
What type of loan can home buyers use to purchase a home?
If home buyers need a mortgage loan, it must be a fixed interest rate loan with a term of 30 years or less. Loans may be obtained from any lender qualified to make mortgage loans under Utah law.. Examples of qualifying loans include:o Conventionalo FHA, VA or Rural Housingo Utah Housing Corporation's FirstHome and FirstHome Plus
What mortgage lenders can assist home buyers to secure a $6,000 Home Run grant?
Any mortgage lender qualified to make mortgage loans under Utah law can assist home buyers to secure the Home Run grant. Click here to see Utah Housing Corporation's list of currently approved lenders.
Can the $6,000 Home Run grant be combined with new the federal $8,000 tax credit?
Yes, if a home buyer is a first-time home buyer and meets the independent criteria of both the federal and Home Run programs, they may take advantage of both. The $6,000 Home Run Grant is available to both those who are first-time home buyers as well as those who previously owned a home. The $8,000 federal tax credit is available only to first-time home buyers.
How many Home Run grants are available to home buyers?
A total of approximately 1,600 grants are available. Each grant is $6,000. Only one grant can be used for the purchase of each home. Home Run Grants are distributed on a first-come, first-served basis to qualified home buyers. The approximate number of remaining grants will be posted on the UHC Web page at http://www.utahhousingcorp.org./
Is the Home Run grant taxable?
The Home Run Grant may be taxable as income under federal and state tax laws. UHC has requested a ruling from the Internal Revenue Service (IRS) about whether or not a Home Run Grant will be taxable. UHC does not give tax advice and home buyers should review the ruling and other pertinent tax information in connection with the preparation of their 2009 tax returns.
If I have additional questions who do I contact?
Contact an approved Home Run lender.
Monday, March 30, 2009
Saturday, March 28, 2009
Getting Your $6,000 Utah Home Run Housing Grant
Home Run offers a $6,000 Grant to buyers of a newly-built, never-occupied home.2. Buyers Income may not exceed the applicable Income Limits ($75,000 for a single person or; $150,000 for a married couple or, if more than one single person takes title, each such single person is subject to the $75,000 limit.)3. Only one Home Run Grant may be used for each Eligible Home.4. Buyers must occupy the purchased home as a primary, permanent residence no later than 30 days after closing.5. If home financing is needed, the Home Run Grant must be used in connection with a fixed-rate, amortizing loan with a term of 30 years or less originated under programs such as:· Conventional· FHA / VA / RHS· Utah Housing Corporation (UHC) FirstHome or FirstHome Plus programs6. Buyers may also use any Federal tax credit or local city or county assistance program for which they are eligible.7. After a Home Run Grant Commitment is issued, the purchase of the Eligible Home must close within 30 days or the Home Run Grant Commitment will expire.
Please contact me if you are interested in taking advantage of this Grant and I'll be happy to point you in the right direction.
Please contact me if you are interested in taking advantage of this Grant and I'll be happy to point you in the right direction.
Mortgage rates at 52-year low
NEW YORK (CNNMoney.com) -- Home mortgage rates dropped to a 52-year low this week, according to a report released Thursday, in the wake of the government's announcement that it will buy more than $1 trillion in debt.
The average 30-year fixed mortgage rate fell to 5.19% this week, down from 5.29% in the week prior, according to Bankrate.com's weekly national survey.
The previous low was 5.28%, hit this January and in June 2003; the last time rates dipped lower than 5.19% was in 1956, according to Bankrate.com.
To put the plunge in mortgage rates into perspective, 30-year fixed home mortgage rates averaged 6.77% in late October. At that time, a $200,000 home loan would have meant a monthly payment of $1,299.86. Now, with the mortgage rates down at 5.19%, the monthly payment for the same loan would be $1,096.99. That works out to a savings of more than $200 per month.
Meanwhile, the average 15-year fixed mortgage rate fell to 4.80% from 4.86% in the the prior week. The 15-year fixed mortgage rate carried an average of 0.49 points.
The government announced last week that it would be buying more than $1 trillion in debt in order to increase liquidity and improve credit conditions. With the key lending rate already at a range of 0% to 0.25%, the Federal Open Market Committee - the policymaking committee of the Fed that sets interest rates - turned to less traditional means to encourage lending.
The Federal Reserve said that it would buy an additional $750 billion in mortgage-backed securities and $300 billion of long-term Treasurys. The so called "quantitative easing" policy essentially increases the money supply and is designed to push interest rates down, making borrowing cheaper.
Not much further to drop: Analysts say that while mortgage rates could edge a smidgen lower, they won't make any more dramatic plunges.
"At this point, what we are going to see is mortgage rates fluctuate at these levels," said Brian Bethune, chief financial analyst at IHS Global Insight. "I don't see them dropping significantly from where they are now."
Mortgage rates move in relation to the yield on the 10-year government bond. While there is not a direct correlation, they do move in the same direction. Bethune said that there are two factors that will prevent Treasury yields, and by extension mortgage rates, from dropping much further.
"One is the huge Treasury borrowing requirements," he said. As the government looks to fund its massive stimulus spending programs, it has had to issue a record amount of debt. The increased supply keeps a lid on the price of bonds and stabilizes yields.
"In addition, as we get closer to perceptions of a trough in the economy, the yields will tend to see upward pressure," said Bethune. Uncle Sam's debt is considered one of the safest places for investors to keep their cash. During times of market uncertainty, demand surges, the prices increase, and yields fall. But as market sentiment begins to believe the economy could be headed for recovery, demand for Treasurys will lessen, lifting yields.
Surge in refinance: The dramatic drop in mortgage rates has motivated home owners to refinance in great numbers, but the drop in mortgage rates has not spurred as large an increase in new home purchases, said Mike Larson, real estate analyst at Weiss Research.
"We are still not seeing a huge impact on home buying," he said. "All else being equal, it will help the market," said Larson. "But it is not the huge impact you are seeing on the refinance side."
Bankrate.com compiles national averages every Wednesday by surveying the top 10 banks and thrifts in the top 10 housing markets. For historical data, Bankrate.com cites the National Bureau of Economic Research.
Source CNN Money
The average 30-year fixed mortgage rate fell to 5.19% this week, down from 5.29% in the week prior, according to Bankrate.com's weekly national survey.
The previous low was 5.28%, hit this January and in June 2003; the last time rates dipped lower than 5.19% was in 1956, according to Bankrate.com.
To put the plunge in mortgage rates into perspective, 30-year fixed home mortgage rates averaged 6.77% in late October. At that time, a $200,000 home loan would have meant a monthly payment of $1,299.86. Now, with the mortgage rates down at 5.19%, the monthly payment for the same loan would be $1,096.99. That works out to a savings of more than $200 per month.
Meanwhile, the average 15-year fixed mortgage rate fell to 4.80% from 4.86% in the the prior week. The 15-year fixed mortgage rate carried an average of 0.49 points.
The government announced last week that it would be buying more than $1 trillion in debt in order to increase liquidity and improve credit conditions. With the key lending rate already at a range of 0% to 0.25%, the Federal Open Market Committee - the policymaking committee of the Fed that sets interest rates - turned to less traditional means to encourage lending.
The Federal Reserve said that it would buy an additional $750 billion in mortgage-backed securities and $300 billion of long-term Treasurys. The so called "quantitative easing" policy essentially increases the money supply and is designed to push interest rates down, making borrowing cheaper.
Not much further to drop: Analysts say that while mortgage rates could edge a smidgen lower, they won't make any more dramatic plunges.
"At this point, what we are going to see is mortgage rates fluctuate at these levels," said Brian Bethune, chief financial analyst at IHS Global Insight. "I don't see them dropping significantly from where they are now."
Mortgage rates move in relation to the yield on the 10-year government bond. While there is not a direct correlation, they do move in the same direction. Bethune said that there are two factors that will prevent Treasury yields, and by extension mortgage rates, from dropping much further.
"One is the huge Treasury borrowing requirements," he said. As the government looks to fund its massive stimulus spending programs, it has had to issue a record amount of debt. The increased supply keeps a lid on the price of bonds and stabilizes yields.
"In addition, as we get closer to perceptions of a trough in the economy, the yields will tend to see upward pressure," said Bethune. Uncle Sam's debt is considered one of the safest places for investors to keep their cash. During times of market uncertainty, demand surges, the prices increase, and yields fall. But as market sentiment begins to believe the economy could be headed for recovery, demand for Treasurys will lessen, lifting yields.
Surge in refinance: The dramatic drop in mortgage rates has motivated home owners to refinance in great numbers, but the drop in mortgage rates has not spurred as large an increase in new home purchases, said Mike Larson, real estate analyst at Weiss Research.
"We are still not seeing a huge impact on home buying," he said. "All else being equal, it will help the market," said Larson. "But it is not the huge impact you are seeing on the refinance side."
Bankrate.com compiles national averages every Wednesday by surveying the top 10 banks and thrifts in the top 10 housing markets. For historical data, Bankrate.com cites the National Bureau of Economic Research.
Source CNN Money
Mortgage applications surge 30%
NEW YORK (Reuters) -- U.S. mortgage applications jumped last week as record low interest rates spurred a surge in demand for home refinancing loans, data from an industry group showed on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, increased 32.2% to 1,159.4 for the week ended March 20. Refinancing accounted for 78.5% of all applications.
Interest rates on mortgages fell after the Federal Reserve last week said it would buy Treasury securities for the first time in more than four decades as well as more than double its planned purchases of mortgage-related securities, according to Orawin Velz, associate vice president of economic forecasting at the MBA in Washington.
"The drop offered a sizable refinance incentive for most homeowners, sparking a pick-up in refinance activity," she said in a statement.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 4.63%, down 0.26 percentage point from the previous week, reaching a record low, the MBA said. It has been conducting the weekly survey since 1990.
Interest rates were well below year-ago levels of 5.74%.
Leif Thomsen, chief executive of Mortgage Master in Walpole, Massachusetts, said his company is doing more business now than every before, with just over $1 billion in total mortgage lending since the beginning of the year, 85% of which has been in refinancing.
"The housing market is coming back, but not roaring back," he said. "We have gone from a crawl to a brisk walk and we will still have to navigate some pitfalls before we are able to get running again."
The Fed's purchases are part of its ongoing efforts to reduce mortgage rates to stimulate borrowing and boost the U.S. housing market, currently in the throes of the worst downturn since the Great Depression.
However, so far, the low rates have had only a moderate impact on demand for loans to buy homes.
The MBA's seasonally adjusted purchase index rose 4.2% to 267.8. The index, however, was 33.7% below its year-ago level of 403.7.
Overall mortgage applications last week were 20% above their year-ago level. The four-week moving average of mortgage applications, which smoothes the volatile weekly figures, was up 13.9%.
Weekly refinancing activity surges
Mortgage Master, to keep up with sales, has hired over 100 people in the past 90 days alone, Thomsen said.
"There are some fantastic deals out there and as more people begin to realize that, competition will come back and drive a significant amount of activity," he said.
The Mortgage Bankers seasonally adjusted index of refinancing applications surged 41.5% to 6,363.2. The index was up 49.5% from its year-ago level of 4,255.2.
The refinance share of applications increased to 78.5% from 72.9% the previous week. The adjustable-rate mortgage share of activity decreased to 1.4% in the latest week, down from 2% the previous week.
Fixed 15-year mortgage rates averaged 4.48%, down from 4.52% the previous week. Rates on one-year ARMs increased to 6.22%from 6.2%.
Source: Reuters
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, increased 32.2% to 1,159.4 for the week ended March 20. Refinancing accounted for 78.5% of all applications.
Interest rates on mortgages fell after the Federal Reserve last week said it would buy Treasury securities for the first time in more than four decades as well as more than double its planned purchases of mortgage-related securities, according to Orawin Velz, associate vice president of economic forecasting at the MBA in Washington.
"The drop offered a sizable refinance incentive for most homeowners, sparking a pick-up in refinance activity," she said in a statement.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 4.63%, down 0.26 percentage point from the previous week, reaching a record low, the MBA said. It has been conducting the weekly survey since 1990.
Interest rates were well below year-ago levels of 5.74%.
Leif Thomsen, chief executive of Mortgage Master in Walpole, Massachusetts, said his company is doing more business now than every before, with just over $1 billion in total mortgage lending since the beginning of the year, 85% of which has been in refinancing.
"The housing market is coming back, but not roaring back," he said. "We have gone from a crawl to a brisk walk and we will still have to navigate some pitfalls before we are able to get running again."
The Fed's purchases are part of its ongoing efforts to reduce mortgage rates to stimulate borrowing and boost the U.S. housing market, currently in the throes of the worst downturn since the Great Depression.
However, so far, the low rates have had only a moderate impact on demand for loans to buy homes.
The MBA's seasonally adjusted purchase index rose 4.2% to 267.8. The index, however, was 33.7% below its year-ago level of 403.7.
Overall mortgage applications last week were 20% above their year-ago level. The four-week moving average of mortgage applications, which smoothes the volatile weekly figures, was up 13.9%.
Weekly refinancing activity surges
Mortgage Master, to keep up with sales, has hired over 100 people in the past 90 days alone, Thomsen said.
"There are some fantastic deals out there and as more people begin to realize that, competition will come back and drive a significant amount of activity," he said.
The Mortgage Bankers seasonally adjusted index of refinancing applications surged 41.5% to 6,363.2. The index was up 49.5% from its year-ago level of 4,255.2.
The refinance share of applications increased to 78.5% from 72.9% the previous week. The adjustable-rate mortgage share of activity decreased to 1.4% in the latest week, down from 2% the previous week.
Fixed 15-year mortgage rates averaged 4.48%, down from 4.52% the previous week. Rates on one-year ARMs increased to 6.22%from 6.2%.
Source: Reuters
Another Record Low Set for Long-Term Mortgage Rates This Week
McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.85 percent with an average 0.7 point for the week ending March 26, 2009, down from last week when it averaged 4.98 percent. Last year at this time, the 30-year FRM averaged 5.85 percent. The 30-year FRM has not been lower in the life of Freddie Mac’s weekly survey, which dates back to 1971 for the 30-year FRM.
The 15-year FRM this week averaged 4.58 percent with an average 0.7 point, down from last week when it averaged 4.61 percent. A year ago at this time, the 15-year FRM averaged 5.34 percent. The 15-year FRM has never been lower in the life of Freddie Mac’s weekly survey, which dates back to 1991 for the 15-year FRM.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.96 percent this week, with an average 0.7 point, down from last week when it averaged 4.98 percent. A year ago, the 5-year ARM averaged 5.67 percent. The 5-year ARM has never been lower in the life of Freddie Mac’s weekly survey, which dates back to 2005 for the 5-year ARM.
One-year Treasury-indexed ARMs averaged 4.85 percent this week with an average 0.6 point, down from last week when it averaged 4.91 percent. At this time last year, the 1-year ARM averaged 5.24 percent.
"The Federal Reserve’s announcement that it intends to purchase Treasury securities over the next six months caused bond yields to drop and mortgage rates followed," said Frank Nothaft, Freddie Mac vice president and chief economist. "Rates for 30-Yr FRMs peaked last year at 6.63 percent on July 24th. With this week's 30-Yr FRM, the interest rate difference is almost 2 percentage points, which amounts to a savings of about $225 in monthly mortgage payments for a $200,000 loan."
"And potential homebuyers are taking notice of these historically low mortgage rates. Both new and existing home sales rose 5 percent in February. First-time homebuyers accounted for half of all existing home sales, according to the National Association of Realtors®. In addition, mortgage applications for home purchases consecutively rose over the first three weeks in March, based on figures published by the Mortgage Bankers Association."
Source: Realty Times
The 15-year FRM this week averaged 4.58 percent with an average 0.7 point, down from last week when it averaged 4.61 percent. A year ago at this time, the 15-year FRM averaged 5.34 percent. The 15-year FRM has never been lower in the life of Freddie Mac’s weekly survey, which dates back to 1991 for the 15-year FRM.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.96 percent this week, with an average 0.7 point, down from last week when it averaged 4.98 percent. A year ago, the 5-year ARM averaged 5.67 percent. The 5-year ARM has never been lower in the life of Freddie Mac’s weekly survey, which dates back to 2005 for the 5-year ARM.
One-year Treasury-indexed ARMs averaged 4.85 percent this week with an average 0.6 point, down from last week when it averaged 4.91 percent. At this time last year, the 1-year ARM averaged 5.24 percent.
"The Federal Reserve’s announcement that it intends to purchase Treasury securities over the next six months caused bond yields to drop and mortgage rates followed," said Frank Nothaft, Freddie Mac vice president and chief economist. "Rates for 30-Yr FRMs peaked last year at 6.63 percent on July 24th. With this week's 30-Yr FRM, the interest rate difference is almost 2 percentage points, which amounts to a savings of about $225 in monthly mortgage payments for a $200,000 loan."
"And potential homebuyers are taking notice of these historically low mortgage rates. Both new and existing home sales rose 5 percent in February. First-time homebuyers accounted for half of all existing home sales, according to the National Association of Realtors®. In addition, mortgage applications for home purchases consecutively rose over the first three weeks in March, based on figures published by the Mortgage Bankers Association."
Source: Realty Times
Wednesday, March 25, 2009
2009 Homebuyer Tax Credit
The homebuyer tax credit is one of 10 key provisions of the American Recovery and Reinvestment Act signed by President Obama into law on Feb. 17, 2009.
The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.Chart Highlighting the Major Modifications to the First-Time Homebuyer Tax Credit> (PDF: 309K)Frequently Asked Questions> (PDF: 483K)Download the IRS First-Time Homebuyer Tax Credit Form 5405> (PDF: 257K)NAR's Presentation: The 2009 First-Time Homebuyer Tax Credit> (PDF: 319K)NAR's Presentation: The 2009 First-Time Homebuyer Tax Credit> (PPT: 218K)
Source: Realtor.org
The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.Chart Highlighting the Major Modifications to the First-Time Homebuyer Tax Credit> (PDF: 309K)Frequently Asked Questions> (PDF: 483K)Download the IRS First-Time Homebuyer Tax Credit Form 5405> (PDF: 257K)NAR's Presentation: The 2009 First-Time Homebuyer Tax Credit> (PDF: 319K)NAR's Presentation: The 2009 First-Time Homebuyer Tax Credit> (PPT: 218K)
Source: Realtor.org
Real Estate Outlook: Rates and Applications Improve
We've all learned not to get too far out ahead of occasional spurts of good economic news, and not to assume too early that the long-awaited real estate turnaround has arrived.
But for the past few weeks the positives have been significant and sustained. You really can't ignore them.
Take mortgage rates and new loan applications. Rates hit their low point in decades last week, and it looks like they're going lower in the wake of the Federal Reserve's announcement that it plans to pump hundreds of billions more into mortgage securities.
Average thirty year fixed rates dropped to 4.89 percent, according to the Mortgage Bankers Association's latest national survey. Fifteen year rates hit four and a half percent with one point.
Not surprisingly, loan applications are rocketing. Last week they were up by 21 percent over the previous week and are now 31 percent higher than applications were at the same time in 2008. A lot of the volume is for refinancing, but applications for home purchases are up as well.
Meanwhile, housing starts took a surprise jump of 22 percent in February over January's depressed levels. Most of the increase was attributable to apartments and condominiums, but single family starts were up by one percentage point, and new home permits were up by 11 percent, after months of sharp declines.
Even sales may be starting to stir in the depressed new home sector. A survey of sales at sixteen hundred new home communities in 80 metropolitan markets by John Burns Real Estate consultants found small but noteworthy "improvements in sales that can't be explained by just "seasonal " changes in buying habits, according to the study.
On the west coast of Florida, builder John Cannon of John Cannon Homes told the Sarasota Herald Tribune that "there's a different buzz in the air (now) than we had sixty to ninety days ago. People are (suddenly) out there looking. Astute buyers know that they (can) take advantage of low pricing" and today's bargain financing rates.
Too much optimism here? After all, unemployment keeps rising and the national economy is still in recession. But Fed chairman Ben Bernanke sees reason for cautious optimism about the months ahead. He told a national TV audience last week that the recession will likely be over later this year.
"I do think we will get it stabilized" and then "pick up steam" as the recovery gets rolling into next year.
But here's what we believe at Realty Times: Real estate as a sector will see its own recovery sooner than most sectors. The signs are pointing that way already.
by Kenneth R. Harney
But for the past few weeks the positives have been significant and sustained. You really can't ignore them.
Take mortgage rates and new loan applications. Rates hit their low point in decades last week, and it looks like they're going lower in the wake of the Federal Reserve's announcement that it plans to pump hundreds of billions more into mortgage securities.
Average thirty year fixed rates dropped to 4.89 percent, according to the Mortgage Bankers Association's latest national survey. Fifteen year rates hit four and a half percent with one point.
Not surprisingly, loan applications are rocketing. Last week they were up by 21 percent over the previous week and are now 31 percent higher than applications were at the same time in 2008. A lot of the volume is for refinancing, but applications for home purchases are up as well.
Meanwhile, housing starts took a surprise jump of 22 percent in February over January's depressed levels. Most of the increase was attributable to apartments and condominiums, but single family starts were up by one percentage point, and new home permits were up by 11 percent, after months of sharp declines.
Even sales may be starting to stir in the depressed new home sector. A survey of sales at sixteen hundred new home communities in 80 metropolitan markets by John Burns Real Estate consultants found small but noteworthy "improvements in sales that can't be explained by just "seasonal " changes in buying habits, according to the study.
On the west coast of Florida, builder John Cannon of John Cannon Homes told the Sarasota Herald Tribune that "there's a different buzz in the air (now) than we had sixty to ninety days ago. People are (suddenly) out there looking. Astute buyers know that they (can) take advantage of low pricing" and today's bargain financing rates.
Too much optimism here? After all, unemployment keeps rising and the national economy is still in recession. But Fed chairman Ben Bernanke sees reason for cautious optimism about the months ahead. He told a national TV audience last week that the recession will likely be over later this year.
"I do think we will get it stabilized" and then "pick up steam" as the recovery gets rolling into next year.
But here's what we believe at Realty Times: Real estate as a sector will see its own recovery sooner than most sectors. The signs are pointing that way already.
by Kenneth R. Harney
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