Ontario Home Prices To Trend Higher In 2010

The economists have predicted a better future. However, the last 12-18 months has definitely held some uncertainty in the housing market the prospect is looking much brighter for the Ontario home market. The sub prime market has been avoided by Canada and Ontario What we have seen over the past 18 months was panic versus demand and fair market values relative to the true economic situation in Ontario. The stability is giving them a large footage Here is my rational for Ontario home price appreciation for 2010. Ontario home prices are valued. Despite a healthy appreciation in home prices in Ontario between 2001-2009 we have avoided the huge run ups (and drops) in prices seen in Alberta and British Columbia. Ontario’s housing supply appears to be inline or undersupplied versus the demand. The 40 billion dollar economic stimulus package Canada has added to its current 507 billion dollar national debt represents approximately 8.5% in new debt. While this is appaling news for most taxpayers, borrowing to this degree will definitely cause price inflation. This will directly and positively affect the value of real estate. The world economy appears to be steady or growing. Despite a US collapse, China’s GDP growth rate for 2009 is estimated to be around 8.2% and is forecasted to be in the 8%-9% range for 2010 India grew at a rate of 7.9% over 2009 and expects 7% growth rate in 2010. The natural resources of Canada will take them a long way in financial stability. The unemployment rate in Ontario rose sharply as a result of the US economic collapse though has since started to slowly decline. The unemployment rate currently sits around 8.5%, it averaged around 6.2% during the 36 months of 2006-2008. Slowly improving consumer confidence and record low interest rates are bound to have a helpful impact on the spring 2010 housing market. The spring housing market may even be exaggerated by the fact that the Bank of Canada has signaled their intention to raise interest rates in June and the introduction of the HST on new home purchases in July. Where prices go afar the summer of 2010 will really depend on how much and how quickly the bank of Canada intends on raising rates.

Buy and Hold Homes – Don’t flip

The housing bubble has definitely burst, like an atomic weapon. Real estate speculators are still trying to dig their way out from the rubble. Even with government help there are problems forecast in certain markets. So what do we do while we are surrounded by the ruins of an out of control housing run? Buy homes.

That is right; buying homes now is a great opportunity. Prices have made historic dips in value. Overbuilding has placed even new homes at lower prices. Foreclosure rates are at an all time high. This provides the best buying opportunities people have seen in years. Do not get confused, this is not the time to try flipping houses. Holding your investments is the best strategy, for the best possible returns. Do not fall for these get quick rich schemes.

The current market does not favor the house flipper. Buying into a foreclosure, you are typically buying a home that will be in need of repair. Now that the credit markets have frozen up, it is not only harder to get qualified buyers, but you may have to settle on a lower price than you could get if you held out. This is not the economy for the flipper.

Instead, invest wisely. House depreciation is now an unpleasant fact of life. Declining home values is not something that people thought would happen. Do not look for your dream deal in the foreclosure market. It is saturated with homes whose tenants stopped keeping up the property; the money that you may have to invest to fix it up may not be realized for a while in this market. Look to new housing, there are many houses that have been left vacant from the homebuilders. These are purchasing contracts that did not go through and may have never been lived in.

Look for investment property that could be rented out. Then you could have some income to offset the cost of the home. These homes can be held onto, use any loss as a tax write off. That may help to offset your property tax liability as well. Smart investors are not out for the quick buck anymore. Buy and hold is the rule of the day for real estate. Do not fall for the get quick rich schemes. Flipping houses in a down economy is a foolish investment strategy. Just as history has shown, the housing market will recover. Hold on, and sell for larger profits.

First time homebuyer tax credit – Should it be extended?

In 2008, the United States underwent a huge economic meltdown and President Bush signed a major housing bill into law. As a part of this housing bill, a temporary tax credit was provided as an incentive for first time home buyers. The $7500 tax credit was available on the purchase of a principal residence. In 2009, The American Recovery and Reinvestment Act of 2009 expanded the first time homebuyer credit and increased it to $8000.

The stabilization of the housing market in 2008 due to the tax credit and the tremendous success of the cash for Clunkers program have shown that stimulus payments that directly go to the consumers are the ones that have the most impact. After more than a year since the worst period of the financial disaster, the government takeover of Fannie Mae and Freddie Mac, the fall of Lehman Brothers and the quick sale of Merrill Lynch the signs of optimism in the housing market  are visible everywhere. In the recent months the housing market has been bolstered by a number of factors, the first time homebuyer tax credit being one of them. With falling home prices and low rates of mortgages, the tax credit is the icing on the cake.

Though the credit has helped stabilize the housing market for now, there are contradicting views about its practicality and its costs. The National Association Of Realtors and The National Association of Home Builders have focused on the positive outcome of the tax credit, the additional 400,000 home sales that would not have happened otherwise, while some of the lawmakers are discussing the costs which, if it hits the estimated $15 billion, will be much more than what was projected in the economic stimulus bill.

While on one side the tax credit is increasing home sales, on the other side it is also increasing government spending and adding to the budget deficit. There have also been reports from governance groups and the IRS that there has been a widespread fraud around claims for this tax credit. According to the IRS 73,799 claims totaling approximately$ 504 million may not be from first time home buyers. Also people under 18, who are ineligible to buy a home, claimed almost $4 million in credits. Analysts also argue that the tax credit has not had much impact on the hardest- hit and most expensive housing markets and that the  benefits of this tax credit has been overstated and its impact going forward will be uneven. In markets with excessive bank-owned properties any demand that is stimulated by the tax credit will be offset.

In my opinion even though the tax credit may not have had much impact it certainly has had a psychological effect on people and has helped push some of the buyers from the sidelines. While the actual impact on the sales numbers may be relatively low, this tax credit has taken the worst case scenario off the table for the immediate future.

While on one hand this tax credit has drawn may people into the housing market, on the other hand it may be a subsidy for some who don’t need it.

I think without the tax credit the prices of homes may start falling again because job losses will continue to curb demand and reverse this year’s gains in housing market. The new version of the tax credit which includes  people with higher incomes and people who want to trade up into new homes, will  stimulate the housing market more than the old one due to the fact that under the expanded version more people qualify for the tax credit.

I think the tax credit is a short term fix for the housing market and if long term solutions are not found, the housing market will plummet soon after the tax credit expires. We need to find solutions to stabilize the economy and not make the country dependent on stimulus packages because it is the tax payers who will ultimately pay for the stimulus packages. If government debt keeps piling up at this rate it could easily lead to a second wave of financial disaster within a few years. Finally learning from our past mistakes; government policies encouraging people to become homeowners led to the credit and housing problems, and we should try to not go down that path again.

Veteran Administration Loans

Federal housing administration was founded after the Great depression in 1929, when millions of people lost their homes due to foreclosure, as a part of loan system reorganization. The main intent was to regulate interest rates and mortgage terms on the loans the administration insured.

The Federal Housing Administration is the largest government insurer of mortgages in the world. A part of the United States Department of Housing and Urban Development HUD, FHA provides mortgage insurance on single-family, multifamily, manufactured homes and hospital loans made by FHA-approved lenders throughout the United States and its territories. FHA’s main purpose consists in purchasing and insuring mortgages allowing banks to turn around and carry out another loan without putting out substantial capital of its own. While borrowers must meet certain requirements established by FHA to qualify for the insurance, lenders bear less risk because FHA will pay the lender if a homeowner defaults on his or her loan.

This new mortgage practice made home purchase available even for many different working people. Also FHA has become involved in areas such as financing the development of multi-family housing, the housing for the elderly, the handicapped, lower income people, inner city families and minorities. However, over the years the role of FHA diminished in today’s mortgage market mostly because people were attracted to more exotic mortgage packages. But due to the rising rate of foreclosures on this particular mortgage packages made people turn back to the safety of FHA loan. FHA is currently pushed by market demands to develop more flexible and suitable loan products.

Real estate is still a good investment

Although the housing market has been in a real state of flux lately, with people struggling to sell their homes and prices on a downward spiral, in the greater scheme of things it doesn’t seem to have lasted that long. Admittedly if you bought your house at a premium just before the credit crunch, you will have been stung quite badly. However, house prices are already beginning to stabilise and if you want a quick house sale in Scotland for example because you need to realise cash or move, all is not lost. You don’t have to be a victim of the housing market crash. House prices in Scotland have shown healthy signs of recovery in recent months. Between July and September 2009, prices have risen by as much as 6%, although compared with last year, there was a 3.6% loss overall. However if you live in Perth or Kinross, house prices there have risen by as much as 15%. So the housing situation in Scotland is not as depressing as it might seem, and if you need a quick house sale in Scotland, you should be confident that you will not be ripped off by profiteering companies ready to take advantage of a bad situation. Having to sell a property quickly can make you vulnerable. However, at Home Solutions Scotland we are ready, willing and able to buy your property at a competitive rate, giving you the cash you need for your home. With firms like us there are no estate agents fees to pay, so you can afford to take a slight reduction in price for your home, one that will give you a competitive edge in a depressed property market and the quick house sale in Scotland that you want will become a reality. You are even able to remain in your home and rent it back, so you still have somewhere to live and cash in your pocket.

Fierce Competition for Short Sale and REO Listings!

WHB is always trying to share the news and trends that are happening in the Housing Market that directly impact Short Sales and here we are again, giving you a pulse of what’s going on in our local market.

The past couple of weeks we have noticed a trend from our local market and from articles reporting home buying activities around the nation and that trend is the increase of buyers in the market. In our previous article we talked about how the stability of low mortgage rates and tax incentives have been a supporting factor to the continued and increasing number of buyers in today’s housing market. Well, after additional news reporting that housing tax credits, which were set to expire on November 2009, will continue into 2010, along with mortgage rates remaining fairly stable for the past 4 months, buyers have been coming out in droves to check out what the hurting housing market has to offer.

Homes that are requiring Bank Approval (Short Sale) have been getting multiple offers, over the listing price. Real Estate Owned (REO) properties are also seeing the same type of activity. Not only are there multiple offers being made on these types of distressed properties, but there have been many more investors coming in with an ALL CASH offers, which cripple any offer that requires traditional bank financing. It seems as if everyone out there is not ready to go out and look for that golden deal.

Maybe it is the impression that we are near or at the bottom of this housing crisis. As much as the government and media is trying to be positive about the economy, the number of foreclosures will sure increase in the next two years. With unemployment over 10% nationwide and the drop in consumer spending, there is sure to be a lot more people with a mortgage under water.

What this means to the Real Estate Agent looking to find short sale opportunities? – Not only is it very easy to find a short sale opportunity but finding a buyer is getting much easier! Something to keep in mind is that although you may have a lot more buyers lined up, you should pre-qualify each on and select the best buyer profile for your short sale transaction. Even if you have a buyer with the highest offer they may not be the best candidate for your short sale transaction because they may not want to wait 3 or 4 months to get the purchase transaction closed.

This is a good time to buy your property now?

Many would believe that now is the best time to buy a cancun real estate property. With the downward trend of the housing industry and the toughening of credit criteria by lenders, it is a great opportunity to find bargains in the housing industry. Today, many properties which a few years ago may have been out of your price range are now within your level. So, how can you take advantage of the present housing market and own your dream house without losing your shirt?

Anything that goes up must eventually fall down. And this is true in the current housing market as years of high housing prices have dramatically fall down to more affordable prices. This is largely because of the housing supply in excess and the sheer number of foreclosed units on the market. Today’s soft housing market may be the time you are waiting for to consider making the jump and getting a house. This is in fact a great cancun real estate deal for bargain hunters and the aging population of baby boomers. There is a big number of Americans who are preparing retirement and they are considering selling their house in markets where property prices are still kicking and moving to communities that are more affordable. These two groups are ready to take advantage of the current housing market condition and you can use it to your advantage as well.

Have you set your eyes on the house you want that has been on the market for sometime now but realized it was out of your price range? Perhaps you should start  working on your hagggling skills as the chance for you to afford that piece of cancun real estate you want is now within your reach. Owners become more desperate as the properties they sell sit on the market for a long time, so they are open to any reasonable offers. You may also get tens of thousands of price deduction for the asking price by simply coordinating with your Realtor and giving your best offer.

If you have a healthy credit, you should take advantage of it. Mortgage lenders are tightening the credit standards, but if you have a good credit standing they can give great deals on home mortgages. Many mortgage companies are looking for home customers with good credit and stable finances to help make up for some of their customers with weaker credit.

Get a fixed rate. In all cases, remember that fixed rate loans are the best deal for you regardless of what you hear from them. Avoid the adjustable rate as this may become a problem to you when you find out there are payments you can not afford later on. If the mortgage company doest offer you fixed rate loan demand for it or look for another bankrolling lender.

The current soft market for housing is just the best time to purchase a cancun real estate property. Take advantage of low housing price and competitive mortgage market place now because this open opportunity for your to afford a house has an end.

How To Purchase A Home With Absolutely No Money Down!

We are excited to be able to share with you some great information.  For those who have struggled to set aside money for a down payment and make ends meet at the same time.  There is good news and we want to be the first to share it with you.  Keep reading to find out how you, yes you can buy a home with absolutely no money down…

There are new home ownership programs that allow a qualified buyer to buy a home with absolutely no down payment.

You may be are a first-time home buyer or a previous or current homeowner, and need a way to break into the housing market.  You have put things on hold because you thought you needed a $10,000, $20,000 or even more for a down payment. Well regardless of your present situation, if you want to get into, or re-enter the housing market without having to make a cash down payment, then these new programs may be just what you’re looking for.

This is the question you should begin to ask yourself.  Why should I pay my landlord’s mortgage when I can be building my own equity? 

Industry insiders have prepared a new special report entitled, “How to Buy a Home with Zero Down”, and reveal how these new and innovative programs can get you into the housing market immediately and with absolutely no down payment. Order this report NOW and you can get into the housing market NOW and with ABSOLUTELY NO DOWNPAYMENT.  Do no hesitate, get yours now while supplies last!

Gauging the Bottom of the Housing Slump Before You Buy

While home values seem to be wavering around what might be the bottom of the decline, home owners might want to be a little more patient before jumping into home ownership at this time. Many sources were speculating that the bottom of the housing crash was happening this past spring, when the number of homes on the market in many major areas fell by over 3.5%. However, we all now know that this was in fact a “false bottom” to the housing crash and that it did, in fact, continue to fall even further.

It can be difficult to discern what is going on in the housing market if you read media reports on the topic; some articles will be regarding home sales, some will be about the number of homes on the market, and still other articles are about home values. Each of these aspects contributes to the housing market rebound, but the information should be taken together to get a good picture of the possible recovery at hand.

It’s hard to say when the bottom has been hit until it starts to recover; most recessions have some little dips, jumps, and false starts in them where it looks like the market is having a recovery and then takes another plunge again. This has already happened a number of times over the last few years already and may take another plunge before we climb out of this slump.

Another factor to consider before you buy a home is that the bottom of the market slump may well last quite a while and so there’s really no rush to buy right now in most areas because the market is not suddenly just going to shoot back up to pre-crash prices. The market doesn’t usually spring back after a crash, it lingers at a low level for a while first. If you’re looking to take advantage of the first time buyer’s incentive will last until the end of April, which gives you time yet to watch the market as well.

The housing market is low right now, that much we are all aware of. However, it’s really hard for anyone to truthfully say that it’s at the bottom of the slump or not; if you wait to see how the market reacts over the next few months, it’s likely that you will be able to find a similar deal to what’s available now or even possibly a better deal.