This Month in Real Estate, January 2010

Each month, This Month in Real Estate provides expert opinion and analysis on real estate trends across the nation. The aim of the consumer-oriented segments is to provide real information on real estate.

http://www.youtube.com/watch?v=86KKIRA4gXg

Mortgage Interest Rates Expected to Rise in Spring

An expected rise in mortgage interest rates beginning in April may make it more difficult for some to qualify for a mortgage, or to qualify for the amount you need. Existing homeowners who want to take advantage of, and qualify for, the home buyer tax credit do not need to sell their current home right away, or at all. If you are financially ready, this is a great time to buy a home. Click the link or copy and paste it into your browser to read the article about interest rates.

http://www.realtor.org/RMODaily.nsf/pages/News2010011102?OpenDocument

Pre-Auction Open House in Parker

Pre-Auction Open House Sunday, January 10 11 AM - 4 PM at 11202 Glenmoor Circle in Parker. This is a potentially awesome opportunity to own a home near Canterbury Golf in Parker for pennies on the dollar. 2640 square feet, 3 or 4 bedroom, loft, 3 bath, full unfinished basement, backs to open space with horses grazing... in the pasture behind the property. Starting bid is $149,000. Non-distress comps range from $310k - $379k. For property details, click the link. Could use some updating, but this property is clean and move in ready.

http://tinyurl.com/y9g7wne

TAX CREDIT GUIDLINES

The IRS has spelled out guidelines for eligibility for the home buyer credit when co-borrowers purchase a property.

If you are single and buy a first-time home as a part owner, you can claim the full credit as long as you qualify for the credit.

For example: If you are a single person who qualifies for the credit and you have a co-signer or co-owner, such as a parent who does not qualify, you can still claim 100% of the credit says the IRS.

The IRS says the parent doesn’t qualify for any portion of the credit, but if the child hasn’t owned a home during the three years preceding the current purchase and can qualify based on income, he or she can be allocated the entire $8,000 credit.

When unmarried individuals co-purchase a home and only one of them is eligible for the credit, then the full $8,000 can be allocated to the eligible buyer.

Source: Internal Revenue Service www.irs.gov

"As the Denver-area housing market moves toward the end of its prime selling season, August sales were down year over year, but selling prices were relatively stable."

To read the entire article, please click on the link.

http://triangle.bizjournals.com/triangle/othercities/denver/stories/2009/09/07/daily32.html

The Denver Business Journal reports that the First Time Homebuyer tax credit is helping the housing market. Currently slated to end on December 1, 2009, there is a push by the National Association of Realtors and the National Home Builders Association to extend it into next year and expand it to all buyers. The housing market is still lagging the rest of the economy. Click the link to read the entire story.

http://www.bizjournals.com/denver/stories/2009/08/31/story15.html?t=email_story

10 Housing Markets Likely to Rebound Soon

Real estate forecasting service Local Market Monitor, which predicts housing market trends for investors and banks, forecasts that housing prices will decline an average of 5 percent through 2010. This prediction includes double-digit decreases in Phoenix, Miami, and Las Vegas.

But then the worst could be over, says CEO Ingo Winzer. As the recession eases, “We’ll see good price increases in many markets,” he reports.

In the following markets, home values are expected to remain level this year but increase in value next year:

Baton Rouge, La.
Buffalo-Niagara Falls, N.Y.
Dallas-Plano-Irving, Texas
Fort Worth-Arlington, Texas
Houston-Sugar Land-Baytown, Texas
Little Rock-North Little Rock-Conway, Ark.
Omaha-Council Bluffs, Neb.-Iowa
Pittsburgh, Pa.
San Antonio, Texas
Syracuse, N.Y.

Here are the 10 largest markets where prices are expected to continue to decline through 2010:

Fresno, Calif.
Las Vegas-Paradise, Nev.
Miami-Miami Beach-Kendall, Fla.
Orlando-Kissimmee, Fla.
Phoenix-Mesa-Scottsdale, Ariz.
Portland-Vancouver-Beaverton, Ore.-Wash.
San Jose-Sunnyvale-Santa Clara, Calif.
Stockton, Calif.
Tacoma, Wash.
Tucson, Ariz.

Sources: Local Market Monitor (09/09/2009) and Realtor.org (09/11/09)