Barb’s 2 cents worth.....

Take away the Mortgage Interest Deduction? NO WAY!!

Barb Hunsinger — Fri, 10 Dec 2010 13:53:00 GMT

The National Deficit Commission's proposal to reduce or eliminate the Mortgage Interest Deduction (MID)

has me up in arms!

The MID has been a mainstay of U.S. tax policy for almost 100 years (1913) and is one of the primary fiscal benefits of home ownership. While only about 30% of all taxpayers in any given year itemize their deductions, more than 3/4 of homeowners utilize the deduction over the period they own their home.

Although it has been a rocky road over the last 2 years, 70% of all Americans still consider home ownership to be part of the American dream. When purchasing a home, buyers compute the tax benefits, and the deduction is a motivating factor in the decision to purchase rather than rent. At a time when the American dream seems to be eroding, any compromise of this benefit would have a detrimental impact on home ownership.

A strong housing sector is critical to the U.S. economic recovery. Our fragile housing market cannot absorb any negative repercussions to the value of owning a home. As both a homeowner and a Realtor, I am 100% opposed to the provision that would modify or eliminate the MID. As such I have contacted both Senators Murray and Cantwell to voice my opposition to this proposal.

If you value and want to defend the Mortgage Interest Deduction, I urge you to contact our Washington State senators.

Senator Patti Murray: Seattle Office: (866) 481-9186 Email: http://murray.senate.gov/contact/index.cfm

Senator Maria Cantwell: Seattle Office: (888) 648-7328 Email: http://cantwell.senate.gov/contact/index.cfm

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Buyers - Sitting on the Fence???

Barb Hunsinger — Fri, 21 May 2010 13:10:00 GMT

Mortgage rates just dropped to their lowest level in 2010 - 4.84%! Amazing!!!

I must admit that my forecast was wrong - in January I predicted that they would have started rising by now. But this time I'm happy to be proved wrong! Buyers, if you've been sitting on the fence, now is the time to strike!

LOW MORTGAGE RATES +

LOW HOME PRICES =

GREAT TIME

TO BUY!!

Real Estate Predictions for 2010

Barb Hunsinger — Tue, 19 Jan 2010 11:47:00 GMT

With 2009 behind us, it's time to look ahead. Here's what you can expect in 2010:

1) SEVERE NEW HOME SHORTAGE

The new construction shortage will peak in the fall of 2010. The construction of new homes dropped drastically in 2009 -- just under 400,000 units, well below the 1 million needed to accommodate population increases and household formations. We will see an increase in prices as well as resale home appreciation.

2) INTEREST RATES WILL RISE IN 2010

Interest rates are expected to increase in 2010. Why? The government has reduced their purchase of mortgage-backed securities and we have too much debt. With the continued economic improvement, it's anticipated that rates will rise to between 6 and 7 percent.

3) AFFORDABILITY INDEX WILL CONTINUE TO SOAR

In many markets across the United States, the NAR Affordability Index (which measures the ability of individuals to buy homes) soared to an all-time high of 167.7, the highest since its inception in 1970. Buyers are beginning to pour into those markets. The markets affected most were the foreclosure-rich markets (California, Las Vegas, Phoenix and Miami). Cities with relatively high-priced housing costs such as San Francisco and Seattle were also positively affected by the affordability index. This trend will continue in 2010 provided interest rates stay low.

4) PRICES WILL START TO APPRECIATE

2010 will most certainly be a year of not just recovery but appreciation. The Case-Shiller index predicts price appreciation as high as 30% in some areas of the country by the end of 2010. This price rebound will allow many homeowners who currently lack equity in their properties to sell their home.

5) BABY BOOMERS RETURN TO THE SECOND HOME MARKET

Baby Boomers (born between 1946 and 1964, now aged 46 to 64) love real estate and they comprise a large segment of second home owners. Boomers damaged by the stock market crash are now beginning to recover financially. They are eager to buy... and they will. Expect to see a "boom" in the second home market in 2010.

6) DAYS-ON-MARKET NUMBERS WILL DECLINE SHARPLY

A number of factors will lead to decreased market time in 2010: a lack of new construction inventory, low interest rates, the return of consumer confidence, and tax credits. Expect to see the return of multiple offers in 2010. By May, we should be under a 4-month average inventory supply.

7) A STABILIZED JOB MARKET IS ON THE HORIZON

Unemployment rates began to decrease in late 2009; that decline will continue in 2010. Small business owners will be an important part of the recovery as they begin to hire again.

So, there you have it! At the end of the year let's look back and see if my predictions were accurate!

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So long to 2009! The Real Estate Year in Review

Barb Hunsinger — Mon, 04 Jan 2010 09:15:00 GMT

Let's face it - who's going to miss 2009?? Real estate has been hammered for the last couple of years. Agents have struggled to stay in business, many homeowners have faced foreclosure, and sellers have had to sell their homes for much less than they ever imagined. Even buyers, the purported winners in a down market, have been dismayed by tight lending, lengthy closings, and frustrating short sales.

Despite the challenges, there were some bright spots in 2009:

Interest rates remained historically low
Housing inventory was at its lowest level in 2 years
Days on market considerably in most areas
The $8,000 tax credit worked, causing a surge in pending home sales
Seattle area home prices went up for 6 consecutive months

But the new year, and in this case a new decade, always carries the hope of better times.

Next blog post? My predictions for 2010. It will be a better year and I'll tell you why!

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$8000 Tax Credit for 1st Time Homebuyers

Barb Hunsinger — Fri, 11 Dec 2009 11:08:00 GMT

If historic low interest rates, bottom-of-the-market prices, and lots of inventory aren't enough to motivate buyers to buy now, the $8,000 tax credit available for first time home buyers should be a HUGE incentive!

The $8,000 tax credit is part of the recently passed Economic Stimulus package. It is a true tax credit, not just a deduction, which means that it is a dollar-for-dollar tax reduction off the amount that you owe for your 2008 taxes. But, you say, "I don't owe $8,000 or even anything close to that!" Then you can actually receive a refund check for the credit. For example, if you are liable for $4,000 in income tax, you can offset that $4,000 with half of the tax credit and still receive a check for the remaining $4,000!

There are other parameters involved in order to take advantage of the credit. The highlights of the credit are listed below. Call me for more details and then GO SHOPPING!

$8,000 Home Buyer Tax Credit at a Glance

·   The tax credit is for first-time home buyers only.

·   If you used to own a home but haven't owned in the past 3 years, YOU QUALIFY for this credit.

·   The tax credit does not have to be repaid.

·   The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.

Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

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A Timeless Thanksgiving Message from Teddy Roosevelt