New Tax Credit Info!

The Senate voted last night (11/4) to extend and expand the tax credit for homebuyers that was scheduled to expire Nov. 30. The House is expected to schedule a quick vote on the bill as early as today 11/5 as part of a package that also extends unemployment benefits for people out of work more than a year. The White House indicated that the President will sign the legislation.

How the homebuyer tax credit would work:

· Tax credit: Ten percent of the purchase price of a primary residence, up to a maximum of $8,000 for first-time homebuyers and $6,500 for repeat buyers who purchase between December 1, 2009 and May 1, 2010. First-time homebuyers are defined as people who have not owned a home in the previous three years. Repeat buyers must have owned their current home at least five years. The credit cannot be used for houses costing more than $800,000.

· Deadline for qualifying: Purchase agreements must be signed by April 30, 2010, and closings must be final by June 30.

· Military deadline: The deadline is extended by a year for members of the military who have served outside the U.S. for at least 90 days from Jan. 1, 2009, to May 1, 2010.

· Income limits: Individuals with annual incomes up to $125,000 and joint filers with incomes up to $225,000 qualify for the full credit. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.

· How to apply: Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a payment. Taxpayers who want immediate refunds can amend their tax returns for 2008 to claim the credit.

· New anti-fraud limitations imposed.

· Cost: $10.8 billion.

Source: Bloomberg Press and Associated Press and confirmed information with the content of the Senate bill

Has the Market Hit Bottom Yet?

Has the Market Hit Bottom Yet?

LAS VEGAS – The sluggish housing market will likely hit bottom in 2009 before picking up slightly by year's end, economists said Tuesday in a Housing Economic Outlook press conference at the International Builder Show. Chief Economists David Crowe of the National Association of Home Builders, David Berson of the PMI Group, and Frank Nothaft of Freddie Mac offered up their forecasts for the housing market for 2009. (Read the latest commentary from Lawrence Yun, NAR’s chief economist.)Berson had a more sobering forecast, saying that it would likely take 2 to 3 years for housing prices to stabilize and the market recovery to begin. The housing market currently lacks a much-needed spark: more than 1.5 million empty homes are for sale in the United States (new homes make up about a third of that inventory), housing starts are at record lows (200,000 for single family homes this year; off the 1-1.3 million pace for starts), consumer confidence is dwindling amid rising unemployment and loan delinquency rates, and skyrocketing foreclosures are driving housing prices down leading to excess inventory, the economists say. "It's making it very difficult for builders to sell homes when they have fixed costs to recover," Crowe said. To counter, builders have reduced prices, added amenities to homes at no extra cost to buyers, and more than 80 percent are using incentives to try to move the high inventory. "We do expect 2009 to be the bottom," Crowe said. Housing starts will likely fall another 20 percent and new home sales will drop 14 percent, he predicted. Signs for a TurnaroundBut there's some good news within all the dim reports, the economists say.
Mortgage rates are at historic lows. Long-term mortgage rates last Thursday were reported at the lowest in the 50 years they’ve been recorded - 4.96 percent.

Households are growing. The Echo boomers – children of the baby boomers -- are getting ready to buy homes, ready to make up a big demographic of buyers, which will lead to a higher number of households.

Housing prices have fallen and affordability is at its best levels since the 1970s, Berson said. Despite a tightening on credit in recent months, Nothaft said mortgages are ample for those who have a down payment, decent credit score, qualified underwriting, and a conforming loan balance. Credit standards are moving back to what they were 10-20 years ago – it just means once you graduate from college you might not be able to buy a house right away. --

By Melissa Dittmann Tracey for REALTOR Magazine



Nick Arntz Hutchinson and Arntz Re/Max Results
15451 Founders Lane Apple Valley MN 55124
C: 612.991.0079 D: 952.223.1023 1-800-288-0863
arntz@arntz.com www.hutchinsonandarntz.com

Mortgage Applications Back on the Rise

Mortgage Applications Back on the Rise

Mortgage applications climbed last week in response to falling interest rates, according to the Mortgage Bankers Association weekly mortgage applications survey.

The index increased 2.9 percent to 841.4 from 817.7 the previous week on an adjusted basis. On an unadjusted basis, it also increased 2.9 percent and was up 37.3 percent compared with the same week a year ago.Most of the activity was in refinances, which increased to 76.9 percent of the total. "It doesn't solve the problem for people who owe more than their home is worth, but for the significant majority who are able to refinance, it is quite a boon," said Bob Walters, chief economist at Quicken Loans in Livonia, Mich.Interest rates were down last week compared with the previous week, and are expected to decline still further in response to the Federal Reserve cutting its benchmark rate to a record low this week.Last week’s already low rates continued to decline:

30-year fixed-rate mortgages decreased to 5.18 percent from 5.44 percent;
15-year fixed-rate mortgages decreased to 4.93 percent from 5.08 percent
1-year ARMs decreased to 6.63 percent from 6.76 percent.Source: Mortgage Bankers Association and Reuters News, Lynn Adler (12/17/2008

Fed Expected to Cut Key Interest Rate Tuesday

Fed Expected to Cut Key Interest Rate Tuesday

The Federal Reserve begins a two-day meeting today where it is expected to cut it's key interest rate, perhaps to an all-time low. The Fed will likely announce Tuesday that it is cutting its key rate in half to just 0.50 percent. However, a few economists predict the Fed will go even further and cut the rate to one-quarter of a percentage point.

If that happens, it will be the lowest rate on record going back to 1954, when records tracking the monthly rates were first kept.However deeply the Fed decides to cut rates, the prime rate for many consumer and small-business loans would drop by a corresponding amount. The prime lending rate, currently at 4 percent, is used to determine rates on home equity loans, certain credit cards, and certain consumer loans, the Associated Press reports. "It is not so much going to give the economy a big push forward. It's more a case of trying to help the economy from being pushed further backward by all these negative events," said Stuart Hoffman, chief economist at PNC Financial Services Group.

Source: The Associated Press (12/14/12008)

Weekly Market Activity Report

Weekly Market Activity Report

As fall turns into winter—and winter turns dark and cold—activity in the Twin Cities housing market has entered its annual hibernation. On a weekly basis, new listings, total inventory and sales are all declining as consumers batten down the hatches and prepare for the holidays. Relative to this time last year, however, activity is stronger. For the week ending December 6, there were 597 signed purchase agreements (pending sales), which is up 27.6 percent over the same week last year. Roughly half of these sales—54.7 percent—were lender-mediated foreclosures or short sales.

On the supply side, new listings were relatively flat, up only 0.7 percent for the same time period comparison. The total supply of homes for sale currently sits at 27,035, down 8.2 percent compared to this time last year. Expect the decline in overall supply to continue into January. At the same time, expect the lender-mediated market share of that supply to increase.

Rates Drop!

Finally something positive to talk about!!!

Fed's announced that they will purchase $600 billion worth of Mortgage-Backed Securities backed by Fannie Mae, Freddie Mac and Ginnie Mae. This should help increase the availability of credit, while lowering fixed rate mortgage rates. In addition, the Fed will allocate $200 billion to create liquidity in the auto, student, and small business markets.

This is AWESOME news. This will help build consumer confidence and is the perfect time to call your buyers that have been sitting on the fence and take them out looking. This may not last long so don't waste time.

For Sale in Richfield Minnesota

6907 Logan Ave S - $499,900

Walk up a landscaped concrete walk to a gorgeous country style wrapped porch with cedar post and recessed lighting, spacious enough for entertaining! Cedar shake façade with white trim, hip roof, and maintenance free siding on sides and back!

Enter the full glass entry door to hardwood floors, closet and a designer entry light!

Spacious formal dining room with hardwood floors, oak trim, knockdown ceilings, custom lighting with recessed lights in a knock down ceiling. Picture window views of porch and front yard along with Marvin Integrity double hung windows. Easy open access to the kitchen living area!

Main floor living area is open to kitchen area and boasts, neutral carpeting with gas fireplace surrounded with black granite. Ample space above gas fireplace for flat screen Television and stereo components. Room is wired for surround sound. Recessed lighting in knockdown ceilings, double hung windows with views of backyard.

Large open kitchen with gorgeous Maple cabinets, roll out drawers, extra top storage cabinets, pantry cabinet, built-in wine rack and custom hardware. Custom laminate countertops with accent granite countertop on breakfast bar area. Newer black appliances and black sink with brushed nickel hardware. Beautiful hardwood floors and oak trim. Recessed and designer pendant lighting in knockdown ceilings. Connected kitchen deskette with custom laminate counter tops, maple cabinets and phone and cable jacks. Access to front porch, lower level and sliders to deck and backyard. Kitchen is very gracious with countertop and cabinet space!

Main floor full bath with laminate flooring, white wainscoting and designer paint. Pedestal sink, tub with ceramic tile surround, knockdown ceiling, designer lighting and mirror, 2-panel entry door and hall linen closet with custom hardware.

Main floor bedroom with 2-panel entry door, neutral carpeting, lighted ceiling fan, custom blinds, newer windows, separate smaller closet and 2 huge closets with sliding doors and storage above.

2nd Main floor bedroom with neutral carpeting, closet custom blinds and is currently being used as a main floor office.

Large upper level hallway with frieze carpeting open oak railing with white spindles, recessed lighting in a knock down ceilings.

Upper level laundry and utility room with washer and spill catch/drain, dryer, and separate furnace zoned for upper level. White top cabinets and ceramic tile flooring.

Upper level bath with ceramic tile flooring, double Maple vanity with doors, drawers, and custom hardware, double sinks with chrome fixtures. Separate maple linen cabinet, huge mirror with designer lighting, recess lights in knockdown ceiling, tub with fiberglass surround and 2-panel entry door.

Upper level bedroom 1 with neutral frieze carpeting, Marvin Integrity windows, knockdown ceilings with designer lighting, oak trim, large walk-in closet with shelves and rods, and a 2 panel entry door.

Upper level bedroom 2 with neutral frieze carpeting, Marvin Integrity windows, knockdown ceilings with designer lighting, oak trim, large step-in closet with shelves and rods, and a 2 panel entry door.


Mater bedroom with neutral frieze carpeting, Marvin Integrity windows, custom blinds, transom window over bed, vaulted tray knockdown ceilings with recessed lighting and lighted ceiling fan, oak trim, large walk-in closet with shelves and rods, 2 separate hall closets with bi-fold doors, and a 2 panel entry door. Master bathroom with ceramic tile flooring, separate toilet room with privacy pocket door, whirlpool tub with ceramic tile surround and glass block accents, lighted separate walk-in shower with ceramic tile and glass block accents, oversized maple vanity cabinet with drawers and doors, single sink top with chrome hardware and designer lighting above.

Lower level family room with ceramic tile run to neutral Berber carpeting, pine base trim, recessed lighting, extra deep space for exercise equipment or desk.

Lower level non conforming bedroom/storage area with neutral carpeting, recessed lighting in knock down ceilings, supplemental baseboard heating with separate thermostat, double closets with bi-fold doors, huge separate closet / storage area with door. This room just needs an egress window to become a legal bedroom.

Lower level ½ bath with custom designer tile floor and base, white stool and pedestal sink, knock down ceilings and custom vanity lighting.

Lower level utility / storage area with newer high efficiency furnace zoned for basement and main levels, oversized hot water heater, plenty of storage area for boxes etc.

Oversized 2-car garage with matching cedar shake front and maintenance free sides and back, hip roof line. Separate front entry door on garage, extra parking pad to side of garage - great for boat or trailer, backyard shed, rock and mulch landscaping with plants.

A fantastic re-model with a great location, close to parks, blocks from Southdale shopping, easy access to main roads and highways!
Parade of Homes Remodelers Showcase model in '06

Minnegasco $74 / mo
Excel $117 /mo

K-2 Sheridan Hills
3-5 Richfield Intermediate
6-8 Richfield Middle
9-12 Richfield High
HUTCHINSON AND ARNTZ Re/Max Results
NICK ARNTZ - 952-223-1023 or 612-991-0079 - Cell

Weekly Market Activity Report

Weekly Market Activity Report

There is further evidence that home sellers (both traditional and lender-mediated) in the Twin Cities housing market are becoming more successful in attracting buyer interest by pricing their properties attractively from the get-go. This is having the bonus effect of limiting further extension of market time and reducing the number of price concessions. For instance, the Average Days on Market Until Sale in October was 141, down from last year by 0.8 percent. This is the first year-over-year decline in market time since we began tracking the figures in 2006.

Similarly, the Percent of Original List Price Received at Sale in October sat at 91.3 percent. While still down from last year, it is only down 1.9 percent, compared to the more robust drops of 4 percent or higher seen during most of 2008. In other words, the market is still tilted in the buyer's favor, but sellers and banks are responding with more realistic prices at the time of first listing.

For the week ending November 1, there were 21 percent fewer new listings than there were at this time last year, and 1.4 percent fewer pending sales. This is the first downward year-over-year movement in pending sales since June.

The Housing Affordability Index has increased slightly in November to 161, while November's Months Supply of Inventory shows a drop to 9 months.

Click her for Market Report Details - PDF

Weekly Market Activity Report

Weekly Market Activity Report

After spending weeks hypothesizing what role the sunsetting FHA seller-funded downpayment assistance was having in stimulating the recent jump in home sales, we may have our first indication this week. For the week ending October 4—the first week we've measured in which the program was unavailable to prospective Twin Cities home buyers—pending sales were ahead of the same week last year by only 3.5 percent. While this is still an upward annual trend, it is about a 15 percent decline in buyer activity as compared to the activity of each of the previous four weeks.
Now that the FHA program is gone, time will tell if home sales will continue to surpass 2006 levels, as seen over the past several weeks. While one week of a relative downturn is too small a sample size to be predictive of the future, our changing financial climate bears close scrutiny in the weeks ahead.
Listing supply continues to draw down, as new listings declined by 12.0 percent for the same time period comparison and the total number of homes for sale is 9.1 percent lower than it was one year ago.

Market Activity Report - PDF