Get off the fence

Get off the fence – you’ll be glad you did! Already own a home? REALTORS® are your best resource to explore your options if you’re thinking about selling or refinancing. Call your REALTOR® today!

$1,800 Georgia Homebuyer Tax Credit Available
A tax credit of up to $1,800 is now available to purchasers of an eligible single family residence in Georgia for homes purchased between June 1 and November 30, 2009! Click here for FAQs about the federal and state tax credits.

Up to $8,000 First-Time
Homebuyer Tax Credit
The American Recovery and Reinvestment Act of 2009 provides for an $8,000 tax credit that would be available to first-time homebuyers.

The credit does not require repayment, and it 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.

Unprecedented Incentives for New Homes
Builders are offering unprecedented incentives for new homes such as flooring upgrades, new appliances, and discounted financing.

Don’t just dream about purchasing a home; make your dreams a reality. Right now is the right time to “Get Off the Fence!”

It's a Buyer's Market
Buyers who are pre-approved have incredible negotiating power.

Financing options are available for those with a steady income and good credit.

Sellers are pricing their homes more competitively.

Lower prices also mean a wider range of options from which to choose in a variety of locations.

Historically Low Interest Rates
Interest rates are at historical lows – lower rates equal lower payments, or a larger home – you choose.

Contrary to perceptions, conventional mortgages are available at favorable interest rates for homebuyers.

Buyers with good credit, a steady income and a realistic view of what they can afford are excellent candidates for a mortgage, even in this market.

Building Wealth with Homeownership
Historically, homes are a solid long-term investment. For the past 40 years, real estate has delivered the most consistent positive return over any investment.

When you buy a home, you are building equity and adding to your assets. According to the Federal Reserve Board, the average renter’s net worth is $4,800, while the average homeowner’s net worth is $171,000.

Finally, you’ll see a sizable difference each year when you claim the mortgage interest deduction on your taxes.

Get Off the Fence in 2009
Prices are right, rates are low and there are plenty of homes on the market NOW.
As the economy improves and more people look for homes, prices will rise.

If you’re playing the waiting game, remember that the market will come back around – it always does – and you could miss your opportunity for a fantastic deal.

Take advantage of today’s market - you’ll be glad you did. Get off the fence and into a home!

Talk to Market Experts: REALTORS®
Not only can REALTORS® help you find your perfect home, they are an invaluable resource for selling your home as well.

Did you know there are over 180 steps in a typical real estate transaction? It’s not worth navigating such a complex process by yourself.

Get organized and informed and get ready to get off the fence –

New home sales blast past expectations

More people are buying: Sales of new homes hit their highest level since last September.

NEW YORK (CNNMoney.com) -- Sales of newly constructed homes leaped unexpectedly in July to hit their highest level since last September.

New homes sold at an annualized rate of 433,000 during the month, according to a joint report issued by the Census Bureau and Department of Housing and Urban Development.

That far exceeded analysts' forecasts and was up 9.6% from the revised 395,000 rate recorded in June. A consensus of industry experts surveyed by Briefing.com had predicted July sales of 390,000.

The news followed other positive housing market reports earlier this month, including a spike in existing home sales, home prices and affordability.

"There are many economic conditions that led to the surge," said Bob Walters, chief economist for Quicken Loans. "But certainly low mortgage rates, huge price reductions on the high inventory of new builds, and the first-time homebuyer tax credit have been instrumental in getting consumers to take the plunge into the real estate pool of opportunity."

Plus, the psychology of the market is changing, according to Peter Morici, an economics professor at the University of Maryland. "The notion that prices will drift down forever is gone," he said. "Now people are thinking the window of opportunity will not be open forever."

"Home shoppers visiting builders' model homes are more likely to purchase than earlier in the year," added Brad Hunter, chief economist for Metrostudy a real estate research and consulting firm.

They are also canceling fewer contracts. Of the 10 markets where Hunter examines cancellation rates, most are running at substantially lower levels. In Phoenix, for example, the cancellation rate lately has been about 4% compared with 7% late last year.

It certainly is an attractive market. The median price of a new home declined again last month to $210,100, down only slightly from June but off more than 11% from July 2008.
Latest Home Prices in Your City

The Housing Market Index, a measure of builder confidence calculated by the National Association of Homebuilders and Wells Fargo, inched up again this month to 18, its highest level in more than a year.

That's still low by normal standards: Anything below 50 indicates that more builders think business conditions are poor. And new sales, though rising, are still well below what they were last August, when they sold at a 520,000 annualized rate.

But the sales spike did help reduce the inventory: Available new homes dropped to 271,000 -- the lowest total in 16 years -- from 281,000 a month earlier. That's down to a healthier 7.5 month supply at the current rate of sales from 8.8 months in June.

Still, when factoring in existing homes for sale, inventory levels remain high, according to Mike Larson, real estate analyst for Weiss Research. He also pointed out that the continued influx of foreclosed properties over the next year or so will replenish supplies.

"But this [report] is clear evidence the dramatic cut back in housing starts, plus increasing consumer confidence and the targeted tax cut for first-time buyers, is restoring stability to the new home market," he said. To top of page

Major Bank Fails in South

Colonial's Assets Sold to Rival in 6th-Largest Collapse on Record; Blow to FDIC

Regulators seized Colonial Bank on Friday after reaching a deal to sell its branches, deposits and most of its assets to rival BB&T Corp. in the sixth-largest bank failure in U.S. history.

The demise of Colonial, a regional bank based in Montgomery, Ala., with assets of $25 billion and 346 branches in five states, signals an ominous phase in the nation's banking crisis. Even as some large institutions show signs of stabilizing, a slew of regional lenders remain on the ropes. And regulators appear to be giving up hope that some of them can be saved.

The FDIC is going to need to tap their lifeline..."The FDIC agreed to share losses with BB&T on $15 billion of the $22 billion in assets included in the deal." and yet "Colonial's collapse will cost the FDIC's dwindling deposit-insurance fund an estimated $2.8 billion, the agency said. The fund stood at just $13 billion as of March." So they are going to share $15 Billion in losses, and only had $13 billion as of March...and many banks have shuttered since then. Doesn't take a mathematician to add this one up...time to sell some more T-bills...China will keep buying, right?

How Much Home Can You Afford?

Find Out How Much Home You Can Afford With a Simple Calculation

When the time is right to purchase a home, the first question you need to be able to answer is how of a home you can afford. Knowing the answer to this question will allow you to focus your search on homes within the correct price range even before applying for a mortgage.

Debt-to-Income Ratio

The most important factor that lenders use as a rule of thumb for how much you can borrow is the debt-to-income ratio. This ratio takes into account a mortgage payment plus your other personal debt you are carrying such as car loans, credit card debt and student loans. The ratio is expressed in a percentage of how much of your income is being used to make debt payments.

The typical guideline used by most lenders is a ratio of 36% as the upper limit. Ratios above this may carry a higher interest rate or be denied altogether. Lenders also like to see that generally no more than 28% be dedicated to all housing expenses.

Calculating Your Debt-to-Income Ratio

The first thing you need to do is determine your gross monthly income. This is the income before taxes and other expenses are taken out. If you are married and will be applying for the loan jointly you should add together both incomes. Then take this number and multiply it by 0.36. For example, if you and your spouse have a combined gross monthly income of $7,000:

$7,000 x 0.36 = $2,520

This means that your total monthly debt payments should be no more than $2,520, mortgage payment included.

The next step is to determine your total non-mortgage debt payments such as monthly credit card or car payments. For this example we will assume your monthly debt payments come to $950. Computing the maximum mortgage payment:

$2,520 - $950 = $1,570

From this example we have determined that the most home you can reasonably afford is one with a mortgage payment of $1,590 which would include property taxes, insurance and possibly private mortgage insurance.

Remember, This is Only a Rule of Thumb

It is important to remember that just because the bank will lend up to that amount doesn’t mean that is what you can truly afford. This is simply a guideline you can use when shopping for a home so you are concentrating on homes that are within your price range. In reality your specific situation will dictate what type of home and mortgage payment will be best for you.