November 16th, 2009

A quote from CNBC Realty Check:

"Home prices are improving, but there is a lot of government stimulus behind that improvement. The extension and expansion of the home buyer tax credit, as well as artificially low mortgage rates backed by the Federal Reserves purchase of GSE loans and securities, will all expire by the middle of 2010, so it remains to be seen whether the very tenuous recovery we are now seeing in housing can endure on its own.

As foreclosures and unemployment continue to rise, the potential for a double dip in home prices is very real, and borrowers underwater now will only sink deeper."

She tends to be a bit dramnastic (fantastically dramatic) but they are valid points, by the time these programs fade out, the year over year declines in prices will be flat or show appreciation, and the unemployment rate will be going down, and foreclosures will be flat. So, it's fine to let these programs go by the wayside in a healthy recovering market. However Steamboats real estate market is in worse shape than the US. Which will make it easier to see the bottom in Steamboat when nationally the bottom will be evidently just past us. The report I just reviewed on the Whistler real estate market makes it look like they had a spike due to the Olympics being announced and are crashing as hard as we are, just like most ski towns. Note below the fed has been scaling back there keeping interest rates low program, it's suppose to end in seven months, rates will only go up from there historic lows of 5% right now.

November 11th, 2009

Howard Glaser:

What I am most worried about is March and April of next year. What happens to a housing market that seems like it is finding its footing at that point? Because several things will happen simultaneously: You've got the option ARM resets beginning to kick in, you have the home buyer tax credit expiring, maybe for real that time, and you have the Federal Reserve maybe running out of money to buy mortgage-backed securities. If we add on top of that, banks beginning to release some of this inventory ,which they have been holding on to for a long time, those three items are potentially very destabilizing to the marketplace. So I'm concerned. I think buckle your seatbelts for Spring of next year.

November 10th, 2009

Hi, If you know anyone interested in rented a great pad: Some friends have a nice one bedroom downtown on butcher knife creek. And some other friends have this great spot, just like me know and I'll forward there numbers to you. Oh, they may consider rent to own leases!

Sunny, bright 2bd/2ba condo. 15 min walk or 5 min bike ride to downtown. Washer/dryer, large kitchen, deck, plenty of storage, plenty of parking. Pets allowed. Furnished or unfurnished. FOR RENT. $1,300 per month including all utilities.

Please contact me via email or cell – 819.7392 OR contact Jon Casson at 846.1599 orboardcoach@comcast.net

November 10th, 2009

Excellent news below, these programs are huge for Steamboat's market recovery.

FHA Loan Limits Increased for another year

On October 30^th, President Obama signed into law a continuing resolution that will extend the present loan limits for FHA, Fannie and Freddie through the 2010 calendar year at 125 percent of local median home sales prices, up to a maximum of $729,750 in high-cost areas. The floor for FHA is $271,050; the floor for Fannie Mae and Freddie Mac conforming loan limits is $417,000.

“Home sales have shown significant movement upwards in the past six months and reduced inventory in some segments of the housing market, but not in all. Home purchases in the middle-income and higher brackets have not moved much, and those markets must improve before we can experience a fully sustained housing recovery. These higher loan limits will help motivate qualified home buyers to purchase in those markets,” McMillan said.

YOU DID IT! $8,000 Tax Credit Extended and Expanded By Congress

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.