Real Estate News!

The latest information was sent to me from BOK Mortgage Banker, Karen Heston:

There are several changes occurring in the next few months that will impact interest rates and the cost of purchasing a home. So, do not procrastinate!
            

1) Upfront mortgage insurance premium on FHA will increase from 1.72% to 2.25% early April 2010                                        

2) Rates will go up! The Feds announced they will discontinue purchasing mortgage backed securities at the end of March 2010 - those purchases have kept rates down over the last year

3) Tax credit ending - contracts dated no later than April 30, 2010 and closing no later than June 30th, 2010

As reported from the Mortgage Bankers Association:

The House of Representatives passed legislation today to extend and expand the current first-time homebuyer tax credit. The House action follows the Senate's approval on Wednesday and we anticipate the President will sign the bill in very short order.

The bill extends the current $8,000 first time homebuyer tax credit (which was due to expire at the end of November) through April, 2010. It also includes a tax credit of up to $6,500 for qualified move up buyers and increases the borrower income limits for both credits to $125,000 for individuals and $225,000 for couples.

Homebuyers will qualify for the full credit as long as they have entered a binding contract by April 30, 2010 and they close the transaction by June 30, 2010. The tax credit is limited to homes with a purchase price of $800,000 and below. The bill also includes anti-fraud language that gives the IRS the authority to do greater oversight during the processing of the return.

In addition, the legislation waives the recapture provision for members of the armed forces who are called on extended duty. These members of our military and uniformed services, who are out of the country for at least 90 days, will also be eligible to use the tax credit upon their return through April 30, 2011.

A report released by the Greater Tulsa Association of Realtors last week should be great news for those concerned about the housing market in Tulsa.  Amid what most would consider as one of the worst financial crises in history, Tulsa home values remained stable.  In fact, the local 2008 YTD average price home sales outperformed the national market.  (These statistics are based on residential property sales in the Tulsa MSA [Metropolitan Statistical Area], which include the 7 counties of Tulsa, Creek, Osage, Rogers, Pawnee, Okmulgee and Wagoner)

Granted, October through December showed signs of the faltering economy, but sales around that time frame have kept the market afloat. 

What is your take on the Tulsa Housing Market?  I would love for you to share your perspective.  Do you have friends in another state, or locally for that matter, that have seen losses from their real estate investments?   

Having gone through a recent little home remodel myself, I was interested to read Realtor magazine's most recent article titled Top Ten Project Paybacks.  Homeowners from across the country shared information from their most recent remodeling project, and from these numbers we are able to get a snapshot of 2008's Cost vs. Value report. 

It states, "exterior remodeling projects lead the way for recovery on dollars spent" with siding, windows and decks giving you the greatest chance to recoup your money.  When it comes to the inside of your home, it's probably no surprise to see that only the kitchen remodel can compare.

Amazingly, Tulsa ranked 3rd highest of 78 other cities when it came to Job Cost vs. Value at Sale.  Across the board, Tulsa averaged 95% of the cost recouped on various project remodels.  The only two cities ahead of that percentage were Honolulu and San Francisco.  

To find out more from this report or to get answers for any real estate concern, call me at 361-6942.