Benefiting 1st Time Home Buyers:

HR3221, The Housing and Economic Recovery Act of 2008

The federal government is passing a new law which will enable 1st time home buyer's to benefit from a huge $7,500 tax credit when they purchase a home. This new program was created as a way to cause new home buyers to act and purchase a home now, instead of waiting.  The goal of the federal government is to infuse home sales within the economy with lots of new homebuyers benefiting from this tax credit.
 
Currently, the housing inventories around the country are at huge levels and the government wants to bring those levels down to normal levels to help stabilize our ecomony.  This is a smart solution to get people to act now, instead of waiting to purchase.  The fact is that interest rates are very attractive right now and the only thing that is causing people to wait to purchase is that they think they can get an even better deal.  The truth is  that in most places round the country are ripe for the picking and the market will start moving into an aggressive buyers market in the coming months.  Rates will go up soon, so it is best to take advantage of lower rates and a huge tax advantage from the government.

Many previous 1st time home buyer's can only dream of an opportunity like this.  Imagine: You find find the home you want; get the seller to pay your closing cost, only have to put 3-5% as a down payment and get $7,500 dollars back in your taxes.  We can show you how.  It a wonderful deal. 

If you have any questions or would like to see how you can get started to home ownership. call me 210-325-8560 email me Tamartinez@remax.net or log on to my web site www.iownthealamo.com
 

Behind the Numbers
To compile this list, we asked Moody's Economy.com to compile a list of the country's real estate markets that are nearest to recovery. Moody's looked at the country's Census-defined metro areas--including metropolitan and micropolitan statistical areas--with populations over 500,000, and prepared forecasts through 2011. They then compared them to prices in the second quarter of 2008, which are the latest figures available, to calculate how far prices will likely fall before reaching bottom. Not one metro area will see prices increase before the end of this year, according to Zandi's forecasts. The strongest metro areas will be flat at best.

Texas markets are most set to benefit. Housing values were rising in many Lone Star State towns until oil futures collapsed and agricultural commodity prices fell. But the bottom doesn't look very deep. Moody's forecasts no change for McAllen and a fall of less than 3% for Dallas, Fort Worth, El Paso, San Antonio and Houston. "Texas has the best large-state economy in the country right now," says Zandi. "Employment is slowing, but its still growing."

Based on this data. This is a great time to buy. Interest rates are at an all time low and affordable housing is available. So stop thinking it's all gloom and doom. Texas is not like the rest of the country. What are you waiting for? Don't wait until prices start to go up to buy, then you'll be to late.

Ground will be broken today on a $724 million expansion of Brooke Army Medical Center, the most expensive project ordered yet in this area by the 2005 Defense Base Closure and Realignment Commission.

More than just the San Antonio-area economy stands to benefit amid a deepening recession. BAMC’s transformation, among 78 BRAC-related projects in the city, also will revolutionize emergency medical care for troops and area residents.

“I think it’s going to be a better trauma care system,” Bexar County Judge Nelson Wolff said, noting that an expansion of University Hospital is coming as graded technology, more emergency rooms,well. “Between the two hospitals, up it’s just a great leap forward, I think.”

BAMC and Wilford Hall Medical Center will get new names — San Antonio Military Medical Center North and South, respectively. They’ll be dramatically different facilities, each with specific capabilities and run by the Air Force, Army and Navy. That hasn’t happened since San Antonio became home to the nation’s first joint medical command in 1987.

BAMC will add nearly 760,000 square feet, renovate about 288,000 square feet and serve as one of two Level 1 trauma centers in the city as Wilford Hall evolves into an outpatient surgical center. The half-century-old Air Force hospital will be revamped at a cost of $50 million and shutter its top five floors or be replaced by a $441 million center. That matter could be settled this fall.

With all this growth expected for the San Antonio area. The outlook for 2009 seems to be good for the housing market in 2009. I am your real estate professional here in San Antonio. Please call me at 210-325-8560 with any questions you may have about real estate in San Antonio. You can also email me at Tamartinez@remax.net or log on to my web site www.iownthealamo.com

Yesterday the Feds cut the interest rate to 0-.25 the following is an article from Yahoo Finance to let you know what this means to you, the consumer:

6 Things to Know About the Fed Rate Cut

• Luke Mullins
• Tuesday December 16, 2008
  
  

  The Federal Reserve on Tuesday cut its federal funds target rate by more than three-quarters of a percentage point to a range of between 0 and .25 percent. The decision signals that Fed Chief Ben Bernanke is more concerned with the rapidly deteriorating economy--which has been mired in a recession since December of last year--that the prospect of stoking inflation. "Since the Committee's last meeting, labor market conditions have deteriorated, and the available data indicate that consumer spending, business investment, and industrial production have declined," the rate-setting Federal Open Market Committee said in its statement. "Financial markets remain quite strained and credit conditions tight."

  Here's how the Fed's actions affect you:

  1. Fixed mortgage rates: Today's rate cut will have little if any impact on 30-year fixed mortgage rates, which are determined by factors that operate largely outside of the Federal Open Market Committee's reach, says Keith Gumbinger of HSH Associates. "Any change in the rate has little to do with long-term mortgage rates," he says. But in its statement the Fed said it could expand a recently announced program to buy up debt and mortgage-backed securities from Fannie Mae and Freddie Mac that has already driven mortgage rates down to a very attractive 5.28 percent, according to HSH Associates. It also reiterated that it was looking at the possibility of buying long-term Treasury bonds. Both of these announcements could work to bring rates even lower.

  2. Prime rate loans: The real impact of today's cut will be felt by consumers with loans that are tied to the prime rate, a benchmark rate that typically moves in lock step with the federal funds rate. "The only place where you would see a concrete impact at the consumer level would be things that are directly tied to prime," says Mike Larson, a real estate analyst at Weiss Research. Many home-equity lines of credit and certain credit cards with variable interest rates are tied to prime rate. As such, borrowers with these loans could see their interest rates decline.

  3. Home-equity savings: Home-equity loans averaged 5.5 percent in October but dropped to 5.26 percent in November following the Fed's half-point cut. Gumbinger says he expects average rates on home-equity lines of credit to experience similar declines this time around--but not everyone will be able to take advantage of them. That's because many of the interest rates on these loans are already at their minimums, and are contractually prohibited to go any lower. So check the terms of your home-equity loan to see if you are eligible to cash in on the decline.

  4. Target vs. effective: When credit markets are functioning normally, Fed rate cuts reduce banks' cost of funding, which allows them to widen profit margins and pass along savings to consumers in the form of lower interest rates. But today's credit conditions have changed all that. Although the Fed's target rate stood at 1 percent before today's cut, such funds were actually being traded in the market at much less than that--just 0.18 percent as of yesterday before the Fed's action. Although the Fed can usually control the effective rate by buying and selling government securities, the credit crisis has eroded its ability to do so. "Any juice that you would get from a funds rate cut in a normally functioning market, you're not really going to get that here," Larson says. "It's not going to lower the banking industry's cost of funds, because the banking industry's cost of funds is already below the target rate anyway." That means that interest rates tied to the federal funds rate won't decline as much as they otherwise would have.

  5. Now what? Nariman Behravesh, chief economist at IHS Global Insight, expects rates to go all the way to zero in a matter of weeks. "The Fed has already cut the federal funds rate to 1 percent and is likely to take it all the way to zero by the end of January," Behravesh said in a recent report, issued before today's announcement. "Once the overnight rate is at zero, the Fed may have to engage in 'quantitative easing' [direct purchases of long-term Treasuries]." Even if it doesn't bring rates all the way to zero, the Fed signaled Tuesday that it's not about to push rates higher anytime soon. "The Committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time," the Fed said in the statement.

  6. Expect more unexpectedness. With only less than a quarter of a percentage point left to cut, look for the Fed to get even more creative in its efforts to revive the financial markets. New programs to support different corners of the credit market could certainly be introduced in 2009. "The Federal Reserve will continue to consider ways of using its balance sheet to further support credit markets and economic activity," the Fed said in the statement.
  
  I am a real estate professional here to help you through the process of purchasing property. If you ever have any questions please call me 210-325-8560 email me Tamartinez@remax.net or log on to my web site www.IownTheAlamo.com
  
  Every day, you'll have opportunities to take chances and to work outside your safety net. Sure, it's a lot easier to stay in your comfort zone.. in my case, business suits and real estate.. but sometimes you have to take risks. When the risks pay off, that's when you reap the biggest rewards.
  Donald Trump

I've noticed that interest rates are starting to take affect. More and more buyers and sellers are taking advantage of these rates. For a seller this works well if you are looking to lower your payments. I was approached this week by a lender and was given this scenario. If you own a home and have a FHA loan. You can streamline that loan with no money at closing, meaning you do not pull money out, and get a 4.75 rate. I have a 6.5 interest rate on my home that would save me quite a bit on interest alone. Why wouldn't I take advantage of this. If your a home owner and would like more information on this please call or email me and I will direct you to a lender that can provide you more information.

If your a buyer, now is a great time to buy! We are starting to make the turn upward. Which means if your riding the fence wondering if homes will come down, it's time to start thinking about buying a home before it's to late! Interest rates, based on history will not remain low for ever. If you can get an FHA loan with let's say about 5.50 or 5.75 take it. Once the rate goes up it means folks are buying and you'll be on the outside looking in wondering what happen! Don't wait until everyone else is buying! buy now! With the changing of the guard, new President, and companies getting help sooner or later that will take affect.

I read an article on Yahoo the other day that we are at the same level of unemployment as we were 2001. Look at our history to see how we have managed to come through these times of tough economy. Every time history will show that housing is the key to getting out of those tough times.

I am here to answer and help you through these tough times. Call me 210-325-8560, email me Tamartinez@remax.net or log on to www.Iownthealamo.com

Picasso was not only a great artist, he was a good businessman. He knew the value of his work, and he didn’t make excuses for it. Donald Trump

Today's buyer is a more specific buyer. They are looking to see how much home they can get for their money. Forget about interest rates, they are at an all time low. No today's buyer is a more in tune with the market. With so many homes on the market their is a huge selections on homes for buyer to see. All this works well for the buyers side of the purchase except for one factor in this equation, The seller. The most important thing in any transaction is that both sides walk away with the feeling that each side was treated fairly. Though there are more than 12000 home on the market in the San Antonio area. I have noticed more and more buyers are wondering where to start at an offering price. The truth of the matter is if you start to low you may risk the chance of offending the seller. You start to high you run the risk of asking yourself "did I pay to much?". As a RE/MAX Professional my job is to provide you with the facts to help with your decision. The first item of business should be what have homes sold for in the last 6 months in the subjects neighborhood? Real estate will always be local. What do you mean by "local"? Most buyers only know real estate from what they hear in the media. If home sales are falling in California, they naturally assume that home sales are falling in San Antonio. The media may report that a seller in Miami Florida has had his or her home on the market for over a year and can't sell because lenders have tighten the guide lines to purchase a home. This is not true. Markets like California and Florida which saw an unexpected rise in price much like the east&west coast. Home sales in those areas rose as much as 37 percent in a year period in some areas. This was at the time unheard of. But like the price a crude oil, which rose after investors could no longer find a safe haven to make money. All of us are now paying for others greed. The question is "where do I start with my offer"

Well I have your answer. It is where the fair market value is in the area. If home sales in a neighborhood are such that buyers are buying homes then the fair offer is what home sales have been in the last 6 months. Example: If the subject home is 2100 sq ft and the asking price is $100,000.00 have your real estate professional look to see if homes with similar sq footage, rooms, like lot size, similar upgrades or down grades have sold for in the last 6 months. If they find 3 homes lets say one home 2000 sq ft that sold for 98000. one home sold for 2124 sold for 102,000 and one home for 2076 sold for 100,000 if you take the avg of all three you should come up with a fair market value of $100,000.00. Back to how the media has influenced home buyers. Because the media has made it sound as if sellers are desperate in lets say in California. A buyer may think that a seller is desperate here in San Antonio. Not necessarily true. Each seller is selling for a different reason. Not all sellers are desperate. Here is an article by one economist.

"Despite these challenging economic times, existing home sales will be rising. Why? The answer, in a word: affordability. Currently, the most important factor driving home sales is affordability. With home prices falling in many parts of the country and mortgage rates still near historic lows, affordability conditions have markedly improved. Even with rising unemployment, nearly 93 percent of households will have jobs. These 93 percent of the working households (rather than 95 percent during good economic times) respond to home buying incentives. Measures such as the recently enacted first-time homebuyer tax credit and a larger number of mortgage loans that qualify for purchase by Fannie Mae and Freddie Mac and through the FHA program will further bring homebuyers to the marketplace"

"I say this because we have history as a lesson. Back in the prior recession (2001-2003) the economy shed nearly 2 million net jobs. Even during those years, existing-home sales rose from 5.2 million to 6.2 million just as jobs were being cut. New home sales, likewise rose from 900,000 to 1.1 million. Mortgage rates were falling. Housing affordability increased. While those 2 million job cuts were painful, the economy still had 130 million job holders. And given the right incentives, they purchased homes." By Lawrence Yun, NAR Chief Economist

Yun noted that there will continue to be wide variations in regional housing market conditions. “Some parts of the country that can expect improvement include the Northeastern region and the oil-patch states of Texas, Oklahoma, Louisiana and Arkansas,” he said. With lower interest rates and flat home prices in many areas, NAR’s housing affordability index is forecast to rise 14 percentage points to 127.0 in 2008.

I am here to help you through the home sales process. Please email me at Tamartinez@remax.net Please be looking for my future blogs on www.iownthealamo.com

Picasso was not only a great artist, he was a good businessman. He knew the value of his work, and he didn’t make excuses for it. Donald Trump