A few weeks ago I attended the Keller Williams 2010 Family Reunion.
With over 8000 agents and real estate market center staff in attendance, Gary Keller spent the first morning giving his Vision Speech.
One of the reasons I have been so happy with my decision to join Keller Williams is the fabulous education that is available for agents whether they are new to the industry or seasoned professionals. As much as I would like to tell you that I spend my days reading every news story about the real estate market and what is happening in the economy, there just aren’t enough hours for me to do that and to take care of my clients.
So, I focus my research energy on studying the St. Louis housing market, and rely on my brokerage to keep me up to date on economic forces affecting the national housing market.
Click on the picture below to see the portion of the Gary Keller’s Vision Speech presentation which outlined the changes in economic trends and their impact on the housing market.
Highlights:
Housing Market:
- The number of home sales started declining in 2005. The increase in home sales in 2009 is a first step in the housing recovery.
- While home sales increased in 2009, the median sale price declined by 12%.
- Annual appreciation rates of homes from 1990-2000 was between 3-5% per year. From 2001-2005, annual appreciation skyrocketed to 7-12% annually. None of us should be surprised that prices have dropped in the last few years to counterbalance the excessive grow of the early 2000s.
- Inventory is finally starting to head back towards a balanced market (a 6 month supply is considered a balanced housing market).
- Mortgage rates are dramatically lower today than they have been over the last 20 years. They are even lower than during the housing boom years of 2003-2005 when low mortgage rates helped fuel home sales.
- Homes today are more affordable than they have been in 40 years. Over the last 40 years, a family at the median income used 21.9% of their income to buy a median sale priced home. In 2009, the median family income only needed 15% of their income to pay a mortgage on the median home price.
- Missouri had a low level of foreclosures over the last two years – between 1-5% of the sales were foreclosures.
U.S. Economy:
- There was negative inflation in 2009 for the 1st time since 1998. However, the return of normal inflation levels in November and December 2009 is a positive sign for the economy.
- High unemployment rates continue to be a problem and need to be stabilized in order for the economy to recover.
Check back for Part 2 of the Vision Speech presentation – National Association of Realtors Buyer & Seller survey results.
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by Karen Goodman on March 3, 2010
in Buyers
Missouri home buyers who purchase a home in 2010 can get $1,750 from the state of Missouri after closing in addition to the federal tax credit offered for eligible 1st time buyers and current homeowners.
MHDC’s HOPE Program:
The Missouri Housing Development Corporation (MHDC) is offering an incentive to help Missouri home buyers purchase a home this year.
How much money can buyers get?
Eligible home buyers can receive a check after closing equal to the amount of the 2009 property tax bill of the purchased property, up to a maximum of $1250.
In addition, an additional $500 is available for buyers who purchase a qualified new construction energy-efficient home or buy an existing home and then remodel or purchase items to make the home more energy-efficient.
If a buyer purchases a home with 2009 taxes which were less than $1250, then the buyer can receive a larger energy efficiency HOPE incentive so that the total of both incentives equals $1750.
Who is eligible for the HOPE program?
In order to qualify for the tax credit, buyers must:
- purchase a single family residence or a 2-4 family building (new construction, resale or mobile homes on a foundation)
- occupy the purchased property as a primary residence
- be at least 18 years old
- purchase the home from a non-relative
- the purchase contract must be dated on or after January 1, 2010
- meet income eligibility requirements (see chart below, targeted areas include areas in which 70% or more of the area’s families have an income that is 80% below the median state income)
*Gross Household Income is defined as the gross amount of a household’s income at the time they purchased the property before all deductions, except that which is specifically excluded by the Internal Revenue Code.
How do you get the energy efficiency HOPE incentive?
Buyers who are meet the eligibility above can also get reimbursed for energy efficient purchases they make, up to a maximum combined credit of $1750, if they:
- purchase either an energy efficient new home or purchase an existing home, and then remodel or purchase energy efficiency upgrades within 60 days following closing
- apply for the energy efficiency incentive no later than 90 days after closing
- submit required documentation including proof of date of purchase & receipts for the eligible items including receipts for any professional installation that was needed
Items which are eligible for the additional incentive money:
- energy efficient windows
- energy efficient doors
- house wraps
- programmable thermostat controls
- water efficient toilets and faucets
- energy efficient water heaters
- energy efficient lighting and appliances
- sealing heating and air conditioning ductwork
- professional caulking
- insulating water heater pipes
- increasing the R-value of insulation in crawl spaces and attics
- conducting on-site energy inspections and tests, including a blower door test, which tests the overall energy-efficiency of the house, and a duct blaster test, which tests how much the air ductwork leaks
- Energy Star Qualified appliances
What else do you need to know?
$15 million has been allocated to the MHDC Hope program. All eligible participants will receive funding until the money runs out. Applicants are paid in order of when the application is received by the HOPE program, so buyers should submit their application as soon as possible following closing.
The HOPE funds are provided to buyers in the form of an interest free loan which is forgiven if the buyer occupies the residence for at least one year following closing as a primary residence. If the buyer fails to occupy the home for a year, or does not continue to own the property for at least one year, the money will have to be paid back.
For additional information about the program and to see what documentation you need to submit with your application, see MHDC’s FAQ page.
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