First Time HomeBuyers Tax Credit Webinar

Click on the link and attend our First Time Home Buyers Tax Credit webinar on Thursday evening at 6:30 PM. We will tell you how to take advanatage of the First Time HomeBuyers $8,000 credit and tips for succcessful house hunting.

https://webmeeting.dimdim.com/portal/JoinForm.action?confKey=greatermontana

Existing Home Sales hit 8-Month High

Ya, that's the headlines this morning on MSN, but remember all real estate markets are local. So what is going on in Ravalli County. Well, in the month of June we did see our first month with an increase in the number of sales from 2008, but that is about the only increase that we say. For the first half of 2009 the number of residential sales in down 20%, our median sales price has dropped 14% and our inventories are declining with 18% less new listings than a year ago.

What does all this mean to you!
If you are a seller it means continued patience is required, sorry! There are still over 896 active residential listings in Ravalli County and our Days on Market is now up to 202, but yes we are seeing increased activity. We are continuing to see sales with the First Time HomeBuyers but we are also starting to see activity in the $300,000 to $400,000 range.

If you are a buyer it means it is a great time to buy!! Prices are coming down, interest rates are great and there are a lot of motivated sellers on the market. You take that and add if you are a First Time Home-Buyer the $8,000 tax credit, (Has to be used before November 30th) and you are all set to buy your new home.

Catching Up

Why is it when you go on vaction (even when only for 5 days) it takes you two weeks to get caught back up again. As I try to find the bottom after spending 5 days in Austin, TX (with my Mom) visiting my sister and attending my niece's high school graduation, I realized I hadn't posted to the blog.

The market in the Bitterroot Valley has picked up some. We are seeing more activity on our listings and the number of closings for May was only down 24% from a year ago. The overall market is off about 40% from a year ago.

If you are a First Time HomeBuyer it is a great time to buy, with prices down, interest rates low and the $8,000 tax credit that you can now use towards your closing costs.

Hope everyone is enjoying our beautiful Montana summer.

Greater Montana GMAC Real Estate continues to provide Exceptional Premier Service

You may have heard that earlier yesterday, General Motors announced that it has filed for bankruptcy protection.

First, I want to let you know that GM's current situation has nothing to do with us. Since last November we have been owned by a new parent company, Brookfield residential Property Services, a division of Brookfield Asset Management. We are now part of a daynamic global organization that is kown world-wide for its financial strength and stability. What this means is we are strong, stable, focused and well-positioned for long-term growth and success.

Second, I want to assure you, as our valued clients, that this will have no impact on you or on our ability to continue to provide you with the best Premier Service.

We would also like to take this opportunity to thank you again for your business. We look forward to continuing our relationship and being of service to you in the future.

HUD: Tax Credit Can Be Used on Closing Costs

FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.The loans can't be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning. Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent downpayment.There remain many sources of assistance for buyers needing help with the 3.5 percent downpayment, including many state and local government instrumentalities and nonprofit lenders.In addition, some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their downpayment. These programs are separate from what HUD announced today. The first-time homebuyer tax credit was enacted last year--and improved upon earlier this year--to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven't owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.

Source: Robert Freedman, REALTOR® Magazine Online

First Time HomeBuyers need help with your Down Payment!!

HUD Action Allows Home Buyers To Use $8,000 Tax Credit For Downpayments On FHA-Insured Loans.

Here is an article from the National Association of Home Builders about the HUD program. http://www.nahb.org/news_details.aspx?sectionID=0&newsID=9233

This is truely an opportunity of a lifetime. If you are thinking it is time you buy your first home, give us a call and we will be happy to help.

When it Comes to Buying a Home, Two Points Can Make a World of Difference

Whether now is the precise time to purchase your dream home or not, there are certainly more than just a few good reasons to purchase – especially for first time buyers.
In May, 30-year mortgage rates of 5 percent were widely available and down from January's already low 5.8 percent. And rates are down a full two percentage points from August of last year.
What many consumers are not hearing is that despite a turbulent real estate market, mortgages are at historic lows. Compared to just last summer, 30-year fixed rate mortgages are about a point and a half lower. So what does this mean – especially for a first time buyer? Buying power. A lot more buying power.For instance, with the lower rates, a home buyer could save $257 per month ($3,084 per year) on their payment toward a $200,000 mortgage versus if they had recently obtained a 30-year fixed interest rates compared with August of last year.

On a $200,000, 30-year fixed rate mortgage at 5 percent, the monthly payment would be $1,073 – compared with $1,330 for a 7 percent mortgage, the national average for a 30-year fixed rate last summer.

According to national mortgage statistics, here's a breakdown of how much further a home buyer’s dollar goes on a $200,000 mortgage as rates continue to hover at historically low levels:

7 percent mortgage: $1,330 monthly payment (rates in August 2008)
6 percent mortgage: $1,199 monthly payment (rates in December 2008)
5 percent mortgage: $1,073 monthly payment (rates in May 2009)

When you combine record low interest rates, low prices and the federal government's tax credit for first time home buyers, and the mortgage interest deduction, there are certainly a lot of positive reasons to make the case for buying versus renting right now.

Another home buyer myth is that lenders are not loaning money right now due to the credit crises. "Home buyers can qualify for FHA loans with as little as 3.5 percent down payment.

Home buyers can go online to find information on homes for sale and mortgage rates at http://www.GreaterMontanaRE.com. Renters can determine for themselves if now’s the time to buy using a rent versus own calculator: http://www.greatermontanare.com/calculators/rent_vs_own.htm

This article is curtesy of GrassRootsPR and GMAC Real Estate.