Dec. ‘08 Newsletter: Houston Dwell Market Update/ Foreclosure List

In this issue:
-Mortgage rates plunge to 37 year lows.

-NY Times Article on why right now is the perfect time to Buy

-First Time Home Buyer Tax Credit: A reason to Buy now

-Top 10 Home Remodeling Paybacks (ranked according to resale price appreciation).

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INVESTOR’S CORNER

.The “List”…
Houston Innerloop Foreclosure List (Updated Daily).

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Mortgage Rates Plunge to 37 year lows

Record Low: Mortgage rates for 30-year loans haven’t fallen this low in 37 years! (5.17%). Read on…

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Get off the fence…now 

“Five or 10 years from now, when the financial crisis has ended and housing prices are up smartly once more, we will look in the rearview mirror and realize that we missed a golden age for home buying,“wrote Ron Lieber in a Dec. 6, 2008 New York Times article.

If you are still on the fence you must read this NY Times article before…well, its too late. 

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Investors Not Happy with 4-loan limit (new rule)
 
Some real estate investors are up in arms over a new Fannie Mae-Freddie Mac policy which states that a person cannot hold more than four real estate loans simultaneously.

The rule, which took effect Dec. 1, 2008 prohibits an investor from obtaining even a fifth mortgage no matter how much money he puts down or how much income documentation he provides. It offers no exceptions for assets or history of success as a real estate investor. More…

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HOME BUYER’S CORNER

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First-Time Home Buyer Tax Credit: A Reason to Buy Now
 
The $7500 homeownership tax credit that the federal government created earlier this year is a hard-won tool to encourage you to jump off the fence and get into the home buying market. (Credit slated to expire mid-2009). Get the details here…

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Home Equity Outlook for Texas MSA’s

A recent study predicts homeowners in many Texas Metropolitan Statistical Areas (MSAs) will see an increase in their home equity between now and 2012.

The study, conducted by the Center for Economic and Policy Research is based on purchases of homes priced at 75% of the median price and financed at between 6 and 8% interest.
 
According to RECON’s chief economist, Dr. Mark Dotzour, “This confirms that there never was a price bubble in any Texas city, and, consequently, the likelihood of equity increase is higher.”  (Center for Economic and Policy Research).

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HOME OWNER’S CORNER

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 Top 10 Home Remodeling Paybacks

 Results are in.  Exterior remodeling projects (specifically, replacement projects that boost curb appeal: siding, windows, and decks) are the best investments.

• Wood deck additions and all types of siding replacements: returned more than 80% of project costs upon resale.
• Window replacements: returned more than 76% of costs.
• Midrange kitchen remodel: returned 76% of project costs.

Least profitable remodeling projects in terms of resale value:

• Home office remodels, sunroom additions, and back-up power generators, returning only ~50% of project costs. 

See chart of the Top 10 Home-Improvement project paybacks here.

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 Great Time for Home Improvements

It may not be an easy time to sell your home, but if it needs repairs or upgrades, now is the opportune time to complete those projects. Consumer spending on home improvements has decreased and this has led to declining prices on building materials and lower contractors’ fees.
 
With contractors hungry for work and willing to negotiate, homeowners can hire better contractors at lower prices. Homeowners can expect to save at least 10 percent on the cost of a renovation and possibly much more, depending on where they live and the project they choose. (Money Magazine).

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Property Tax Payment Plan to Help Ike Victims

 Houston residents whose homes were damaged by Hurricane Ike may qualify for a property tax payment plan authorized under the Texas Property Tax Code.  Under the plan, 2008 property taxes can be paid in installments, without interest/ penalty in 2009.

To qualify, homeowners must submit a request to their tax office in writing by Jan. 31. They will also need to provide evidence of damage caused by Hurricane Ike (i.e, pictures, insurance claims, repair receipts). For more information, contact HCAD.

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QUICK LINKS:

From U.S. Dept. of Energy: 10 Ways to Cut Energy Bills this Winter
 
New HUD website for Newbies: (on Financial Literacy/ Healthy Home Ownership) 
My Money, My Home, My Future
 
Market Guru Corner: Great 2-page white paper on the Housing Crisis solutions
 

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TECH. CORNER

Green + Wired = One Smart Home

You hear a lot about “smart” homes these days, but what does it really mean?

Now’s your chance to find out. See this smart home and all the cool details in the video. This pre-fab home is a permanent exhibit at the Chicago Museum of Science & Industry.  See More…

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Happy Holidays!

 
Ruby Thomas Wadhwa, Founder. 
www.HoustonDwell.com