Study Shows 25 Percent of Americans Would Delay Home Purchase until after Election

 

Study Shows 25 Percent of Americans Would Delay Home Purchase until after Election   RISMEDIA, Tuesday, September 25, 2012— When it comes to buying a home, 25 percent of Americans would like to know who the next president will be before they would feel totally comfortable putting their money down, according to a recent poll conducted by Harris Interactive on behalf of MortgageMarvel.com. Another 53 percent said the election would have no effect on the timing of their decision.

The online survey was conducted in early September among 2,570 U.S. adults age 18 and over and 13 percent said that if they were considering purchasing a home, they would delay their purchase until after the election because of the uncertainty it creates. Another 12 percent said they would take the election into consideration, and it might cause them to delay buying a home.

“It’s understandable that a considerable number of people say the upcoming election would give them pause for thought,” says Rick Allen, chief operating officer of Mortgage Marvel. “There has been speculation that tax policies could change depending upon who wins. Some have even indicated that the longstanding deduction for mortgage interest could be eliminated. It appears that mortgage interest rates will remain low for the foreseeable future, so there’s no pressure on people to act before rates rise. In such an environment, I can see that cautious people would take a wait-and-see attitude before making a home purchase.”

In the survey, U.S. adults were asked this question: “Assuming you were considering purchasing a home, would the upcoming presidential election cause you to delay your purchase?”

Their answers were as follows:
• 53 percent – “No, it would not affect my decision at all.”
• 4 percent – “No, it would prompt me to purchase a home before the election.”
• 13 percent – “I would delay buying a home because there is too much uncertainty due to the upcoming election.”
• 12 percent – “I would take the presidential election into consideration, and it might cause me to delay buying a home.”
• 17 percent – “Not sure.”

Overall, men’s and women’s answers tracked closely across all age groups. Interestingly, as men’s ages increased, they became less concerned about the possible effects of the election. In the male 18-34 age group, 42 percent said the upcoming election would have no effect on the timing of their purchase. At age 55+, 57 percent gave the same response. Fifty-two percent of women age 18-34 said the election would have no effect on their decision, and that increased only to 59 percent at age 55+.

Regional Differences throughout the Country
Regionally, the South had the highest percentage of people — 17 percent — who said they would delay buying a home because of uncertainty attributable to the election. Another 12 percent in the South said the upcoming election might cause them to delay buying a home. The West had the greatest number of people — 61 percent — who said the upcoming election would have no effect for them on the timing of a home purchase.

Methodology
This survey was conducted online within the United States by Harris Interactive on behalf of PR Unlimited from September 5-7, 2012 among 2,570 adults ages 18 and older. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables, please contact Ana Tackett at 480.318.1238.

For more information, please visit www.harrisinteractive.com and www.MortgageMarvel.com.

Common Issues For 1st Time Buyers

20120224021117There are several common issues for 1st time buyers that we can help address. For example, what happens if they lost their job? How would they make their mortgage payment? We have a program called Job Loss Protection that provides the equivalent of a rainy day fund with up to $10,800 to help cover their payments. What about major expenses like a failing HVAC system? We have home warranties that can help avoid major expenses and simplify dealing with vendors. And finally, what if I need to move to another market for a job and need to sell my home? The solution for that challenge may be to buy a property that can be converted to an income property. You have already purchased with very low prices and set a very low mortgage rate. Of you buy the right property, you can use our property management team to help get tenants and take care of the property. Over time, you can get positive cash flow and build equity as values improve. Yes, you are on your way to building wealth while others are still throwing away their rent money.

If you know 1st time buyers who need our expertise, please contact Dan Petersen at 678-439-6699 www.petersenpartners.com. Our team would be happy to help them.

We Want To Wish You And Your Family A Wonderful Early Spring Season! If You Know Someone Who Can Benefit From This Information Or Our Real Estate Expertise, We Would Love To Help Them. Have A Great Day!

Are Interest Rates and Mortgage Rates The Same?

On January 25th, Fed Chairman Bernanke announced that interest rates were going to be held at the current rate through the end of 2014. He was specifically speaking about the federal funds rate which is the rate the Fed lends money to banks. Most consumers assume that interest rates and mortgage rates are the same. Of course, interest rates do have an influence on mortgage rates but there are many other factors that impact mortgage rates. Mortgage loan officers will quickly tell you that mortgage rates change frequently. In fact, they change multiple times per day. Currently, we have some of the lowest rates ever recorded. But that will not last forever.

There are a number of factors that are likely to move rates higher over time. Mortgage rates are influenced by long-term bonds. The 30-year bond has a big impact on the 30-year fixed mortgage rate. Right now, the Fed is purchasing those bonds through a program called Operation Twist. This is intended to keep the 30-year mortgage rate low. But the Fed cannot keep doing this indefinitely due to our debt and deficit problems. When that program ends, the rates will rise and normal investors must come back to the table to purchase those bonds. There is also pending legislation for Qualified Residential Mortgages (QRM). This legislation proposes a standard 20% down payment plus a requirement for the banks to maintain a holdback of 5% on every loan. Analysts expect to see these higher bank costs recovered by increasing rates and more fees. Freddie and Fannie have already implemented additional fees. FHA is expected to also add new fees. The future forecasts from the Mortgage Bankers Association and Freddie MAC predict that rates will rise in 2012 and 2013 back to the 5% range. In 3-5 years, rates are expected to jump significantly. The average mortgage rate for the past 50 years has been 8% and we are likely to see rates in that range again.

We have the unusual circumstance of very low home prices and very low mortgage rates! If you would like to discuss the best strategy for your situation, please contact Dan Petersen at 678-439-6699 to learn the facts in your local market.

An Early Spring Real Estate Market!

The famous groundhog General Beauregard Lee did not see his shadow and predicted an early spring for Metro Atlanta. And Prudential Georgia Realty is seeing an early spring market for real estate. Buyers are out and pending sales are increasing. But many markets in our area are seeing very low levels of inventory for sale. The latest numbers in many of our markets show inventory levels down 25% – 30% from this time last year. The mix of properties in some areas is also changing. For the 20-county metro area, short sales & foreclosures were 60% of total transactions last year. But a significant portion of those were in the low end of the market. So looking at national numbers or even Metro Atlanta numbers can be misleading. Remember that real estate is local and many markets are different. We are now seeing lots of markets and price points where short sales & foreclosures are a small portion of the available inventory. That means that market conditions are improving for sellers and resales are going to be more popular in 2012!

If you want to attain the highest market value for your property, you must have exceptional marketing. Our Advanced Property Marketing System was designed for the current market conditions and is the most effective approach available. The results prove the case. Since introducing this advanced system, our company is #1 for listings sold in 2009, 2010, 2011 and 2012.

If you are interested in selling your property, contact Dan Petersen today to get started. 678-439-6699.

The Market Is Turning!!

 

Smyrna/Mableton – If you have been sitting on the sidelines to sell your home waiting for the market to turn, now is the time you need to at least revisit putting your home on the market.  Inventory levels for the last quarter vs last quarter prior year are down over 29.8% while pending sales are up almost 5.6%.  Supply is down, while demand is up!!  Great news for home sellers.  Its also a signal for buyers to make a decision while interest rates are still low and before demand increases even more taking away the limited supply of homes. Check out the live chart below to see the supply and demand in the Smyrna/Mableton area.

Contact Dan Petersen at Petersen Partners/Prudential Georgia Realty to discuss a sales and marketing strategy to sell your home and get you into your next home! 

www.PetersenPartners.com
678-439-6699
info@petersenpartners.com

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New Charter School Coming to Smyrna?

The Smyrna Academy of Excellence (SAE) is a new charter school currently under development in our community. Its mission is to be the most exceptionally safe, innovative and rigorous school in Georgia. The school is scheduled to open in July 2013 for K-6th grade. Over the following 6 years, the school will expand to K-12 until it reaches capacity at 2,000 students.

What makes this school different?

· It will be created, managed, governed and led by Smyrna educators, parents and residents.

· It will be a tuition-free charter school that works independently of the Cobb County Board of Education, but with its approval and cooperation.

· It will be a STEM school, meaning it will be driven by a Science, Technology, Engineering and Math curriculum with social studies and language art integrated in to provide a fully rounded educational experience.

· It has established partnerships with Georgia State University, Southern Polytechnic, Georgia Tech, Chattahoochee Tech

On May 1, SAE will be submitting their petition to the Cobb County Board of Education. If you would like to voice your support for the new school, please visit www.saesupport.org. Here you can sign the SAE online petition and pre-register your children (no obligation).

Additionally, SAE has offered to make an informational presentation to Williams Park residents. If you are interested, contact Candace McCreight at cmccreig@hotmail.com.

Will the Health Insurance Reform Law Impose a 3.8% Tax on Home Sales?

 

Chances are, you may have received emails warning that the health insurance reform law contains a provision for a sales tax on homes. Per the National Association of Realtors, this information is false.

Below are the facts from the Atlanta Board of Realtors Government Affairs:

Beginning in 2013, the health insurance reform law will impose a 3.8 percent tax on unearned net investment income, which includes some (but not all) income from interest, dividends, rents (less expenses), and capital gains (less capital losses). The tax falls on only those individuals with an adjusted gross income above $200,000 for single filers or $250,000 for couples filing jointly.

The tax will not be imposed on all real estate transactions. Those claiming otherwise do not understand the interplay between the health insurance reform law and existing real estate tax law. The exemption for the first $500,000 of capital gain from the sale of a principal residence remains intact and is not impacted by the new law.

The National Association of REALTORS® has prepared an informational brochure that could be relevant to you .

Georgia Foreclosure Filings down in 2011

The AJC reported this week that foreclosure filings for 2011 has dropped with about a 16% decline from the perious year.  There may be an increase this year due to the slowdown of the foreclosure process so the banks could sort out the mess they had with all of the robo signings.

See the full article here at the AJC.

http://www.ajc.com/business/georgia-sees-dip-in-1300251.html

Smyrna Townhome Sales Update

For sales from 9/10 through 11/11, sales of townhomes in the Smyrna area have gradually increased over the last 13 months with inventory levels dropping significantly.  The chart below updates when new information is posted.  If you would like to have a customized market report specific to your area, home type and price range, contact Dan Petersen at info@petersenpartners.com or visit us at our website at www.petersenpartners.com.

All Townhomes in Zip Code 30080 and 30082.

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FHA will keep funding flips

FHA will keep funding flips | Inman News

The FHA will extend its temporary waiver on its anti-flipping rule.  This will basically allow investors who are flipping homes to sell to buyers using a FHA insurned financing product within the 90 period that the home was originally purchased.

Check out the full article at Inman news!

http://www.inman.com/news/2011/12/28/fha-will-keep-funding-flips?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+inmannews+%28Inman+News+-+Headlines%29