Chance Gates' Blog

Summary
– “As anticipated, we saw an increase in the volume of closed sales during the month of June, many by buyers who were
attempting to get in under the June 30 deadline to close deals in order to qualify for the tax credit. It wasn’t until the midnight
hour that Congress extended the deadline to those buyers who, through no fault of their own, were unable to meet the
deadline. As a result of that extension, buyers who qualified for the tax credit and were under contract by April 30th, now have
until September 30, 2010 to close the transaction,” said Ken Amundson, 2010 president of Reno/Sparks Association of
REALTORS “Although we are remaining
cautiously optimistic about the number of transactions in the pipeline and some price stabilization, we need to continue to
closely watch the year-over-year numbers and see continuing trends in leveling median sales prices before we can truly say
we have reached the bottom.”

Median Sales Price
– June 2010 median price was down 3% to $170,000 compared to $175,308 in May 2010.
– The median sales price continues to “trade in a narrow range” to borrow a term from the stock market.
– Median price is defined as the mid-point, half of the sales for the time frame are below and half are above.

Number of Units Sold
– June ended the month with 581 sold transactions up 29.7% from the prior month.
– This is a new high since the market peaked in the summer of 2005.
– Sales were up 8.4% over the same period last year.
– This can be primarily attributed to the volume of buyers who came into the market to take advantage of the tax credit and met
the initial deadline of June 30 set by Congress. That deadline was subsequently extended to September 30, 2010.

Average Days on Market
– The average days on market increased by 6.3% from the prior month to 146 days.

Sold-to-asking-price Ratio
– June reported sales received an average of 98.1% of the seller’s asking price.

Conclusions
– June median is holding year over year. The median price has remained stable for the past thirteen months.
– Unit sales level remains strong with some softening in the numbers expected as buyers adjust to a non-incentivized home
buying world.
– The fact that Congress granted an extension for those transactions that were in contract by April 30, but that were unable to
close by June 30th , should help sustain the number of closed transactions through the new deadline of September 30.

Data obtain from the Reno/Sparks Association of Realtors for Area 100, Greater Reno/Sparks

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog.  You can email me @  chance at ballard-company.com or http://www.myspace.com/chancegates

After a close brush with a deadline that could have impacted tens of thousands of home buyers, the U.S. Congress last night passed an extension of the Home buyer Tax Credit closing deadline.

The extension is included in the Home Buyer Assistance and Improvement Act (H.R. 5623) and will prevent as many as 180,000 home buyers from losing their eligibility for the tax credit through no fault of their own. These households had home purchase contracts pending as of April 30 and had until June 30 to close on their purchases to claim the federal tax credit. Under the legislation that passed last night, these households now have until September 30 to close.

The NATIONAL ASSOCIATION OF REALTORS® supported extension of that closing deadline because buyers are experiencing delays in getting their financing closed. The delays are the result of the large number of transactions that are short sales, which can take a long time to close, and the rush of transactions lenders are processing from buyers submitting contracts before the April 30 contract deadline.

The legislation, which now goes to President Obama for signature, is designed to create a seamless extension of the closing deadline; there will be no gap between June 30 and the date the President signs the bill into law.

NAR worked closely with congressional leaders on both sides of the aisle in supporting lawmakers’ passage of the legislation, which the association says will help provide additional stability to real estate markets across the nation.

Separately, the U.S. Senate also last night passed the National Flood Insurance Program Extension Act of 2010 (H.R. 5569), which extends the National Flood Insurance Program until September 30. This will allow home purchases in the 100-year floodplain to move forward. The House passed the bill last week.

When signed into law by the President, the bill, which will apply retroactively, will cover the lapse period from June 1 to the date of enactment of the extension. Without flood insurance, households buying homes in the 100-year floodplain cannot obtain mortgage financing.

More information on both pieces of legislation is at REALTOR.org.

Source: NAR

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog.  You can email me @  chance at ballard-company.com or http://www.myspace.com/chancegates

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• Congress approves tax credit extension  lansner.ocregister.com)

New Listings
–
723 new listings were taken in May compared to 788 in April, an 8% decrease.
–
The percentage of “Distressed” new listings was up slightly from April. 60% of new April listings were distressed – 294 Short
Sales, 150 Bank Owned/Other.
–
Note: Beginning with the January 2010 report, properties reported as “Other” which includes “Freddie Mac’s and HUD’s” are
included with Bank Owned REO properties.
•
Sold-to-asking-price Ratio
–
May reported sales received an average of 97% of the seller’s asking price.
•
Status of Pending
–
Active Pending – short sale represents 66% of the total active pendings; Active Pending Loan equals 16%; Pending No-show
represents 13%; Active Pending call -4%; and Active Pending House -1%.
•
Absorption Months Supply of Inventory (Unsold Inventory ÷ Sales per Month)
–
As of May 31, there was 7.4 months of inventory based on the May sales rate.
–
The National Association of REALTORS® describes a balanced market as between 5 and 7 months supply.
–
Unsold inventory includes Active Pendings. This method of reporting months supply of inventory follows the industry standard
of including all pending sales in the active inventory. The calculation of month’s supply of inventory excluding Active Pendings
would bring the absorption down to 3.4 months supply of inventory.
•
Conclusion
–
May Median is holding at equal to May last year. This is the first time since 2005, the median price in a month has been equal
or higher year over year.
–
Active inventory and pending total remain level with April and previous months.
–
The number of new listings has declined month over month for the time since December 2009.
–
On June 10, Sens. Harry Reid (D-NV) joined two other Senators to introduce an amendment to extend the closing dates for
homebuyers taking advantage of the tax credit. The amendment to the current tax package being considered in the Senate
would extend the closing date deadline from June 30 to September 30, 2010. There is growing concern that many home
purchases that took advantage of the tax credit will not close by the current deadline through no fault of the homebuyer. Stay
tuned to Reno/Sparks Association of REALTORS® Government Affairs Facebook page to get up to the date information.
4
Data sourced from NNRMLS
Created by NLS under license for the RSAR
This report may be reproduced by RSAR Members.

The way I see things is as long as distressed properties continue to dominate the market the median sale price will be doing good to remain the same.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog.  You can email me @  chance at ballard-company.com or http://www.myspace.com/chancegates

RISMEDIA, April 19, 2010—(MCT)—Latasha Hall never envisioned herself a homeowner. But by the end of the month, she will be. Just in time.

With the soon-to-expire tax credit for first-time buyers as an assist, the single mother plans to close on a $166,650 three-bedroom house in Clifton Heights, Pa. “If it hadn’t been for the credit, I wouldn’t have done it,” Hall said.

To be eligible for the federal tax credits—up to $8,000 for qualified first-timers and up to $6,500 for certain repeat buyers—houses must be under contract by April 30, with settlement by June 30, 2010.

With those deadlines in sight, some real estate agents say they are relishing their first busy days in months.

For some buyers, a tax credit is an added perk in an already-friendly market with good inventory and low mortgage rates.

For those like Hall, who is working toward her bachelor’s degree in behavior and addictions counseling and who works two jobs, it’s the last piece that fits the puzzle. In January, Hall visited Weichert Realtors for help finding a rental home after her landlord’s lender foreclosed.

Steve Madonna, a loan officer with Weichert, looked at her income (about $54,000) and her credit score (which needed some work, but not much) and suggested she buy instead. Madonna connected Hall with a state loan program that would provide $5,000 of the $8,000 credit up front, for use on closing costs or maintenance on the house. Hall set to work paying off two past-due bills and bugging the credit bureaus—sending weekly faxes and calling often—to update her score quickly. “If I hadn’t heard about this credit, I wouldn’t have worked so hard to get it done,” she said. “This is my time to go out and do what I have to do. I kept thinking about my kids.”

The new Clifton Heights neighborhood is safer, she said, and it’s just two blocks from the school her 9-year-old son attends. The credit has been “a blessing,” Hall said.

To Realtors like Daren Sautter, it’s a relief. “It’s nice to be busy,” he said.

Sautter, of Prudential Fox & Roach in Cherry Hill, N.J., watched showings and Internet leads triple in the first three weeks of March.

He expects to be slammed through the April 30 deadline, then figures he’ll see a lull before the spring market picks up some. “If you don’t sell a house in April,” Sautter said, “you’re not selling it.”

Sellers likely will be thinking the same thing, Realtors said, and listing prices could drop this month.

Sautter recently helped Pat Poole price her four-bedroom Cherry Hill house to sell. At $290,000, it went after just one day on the market. Recently divorced, Poole was looking to downsize. She sold the house to a young couple who used the repeat-buyer credit. Her next task: finding a new house for herself and her 17-year-old son in time to secure her own tax credit. “I’m going to get in under the wire,” Poole said.

A flurry of activity is noticeable in areas with a strong inventory of homes affordable to young families, Realtors said.

But some brokers are seeing a “trickle-up” effect. Would-be buyers are able to sell their homes, aided by the rush for the tax credit, and upgrade to communities with better school systems or more historic charm.

In Haddonfield, N.J., the proximity to Philadelphia and access to the PATCO High-Speed Line were big draws for Jeff Minors and Amy Henry. Minors will commute to his job as a financial-news editor in New York City. The couple, longtime renters, were looking to move to southern New Jersey from Norwalk, Conn., with their 2-year-old son. They recently moved into a four-bedroom home in Haddonfield that cost about $575,000. The first-time-buyer credit was an added bonus, Minors said. “We were more concerned about finding the right house at the right price,” he said. “But it’s definitely a nice benefit.”

As a Reno/Sparks real estate professional I encourage all questions and comments on the Reno/Sparks real estate market, or any of the articles posted.  I can be reached by email at  chance at ballard-company.com or http://www.myspace.com/chancegates

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RISMEDIA, March 24, 2010—Buying a home is one of the biggest decisions an individual can make. So it’s understandable that one considering a home purchase may take their time to avoid rushing into such a large financial commitment. However, several factors might leave prospective home buyers who don’t purchase a property now wishing they had taken action sooner.

“Current market conditions have created a perfect storm of sorts that has made it an ideal time to purchase for first-time and trade-up buyers alike,” said James M. Weichert, president and founder of Weichert, Realtors. “Those who have the means and the desire to buy now but don’t, aren’t likely to see such a great opportunity again anytime soon.”

Specifically, Weichert offered three reasons why those who aren’t under contract to purchase a new home by April 30, 2010 might regret it.

1. They won’t receive a sizeable amount of money from Uncle Sam.

For the past two years, the federal government has offered a home buyer tax credit to help stimulate the economy. But that financial incentive is set to expire soon. First-time buyers who aren’t under contract to purchase a home by April 30, 2010 will leave the $8,000 that is available to them through the tax credit on the table. Meanwhile, repeat buyers will miss out on the opportunity to collect up to $6,500 from the government.

2. They might not lock-in on the historically-low interest rates.

Thanks to measures taken by the Federal Reserve including the purchasing of mortgage-backed securities, interest rates have remained historically-low for several years. With the economy beginning to show signs of recovery, it is widely believed that the government will soon put an end to these stimulus efforts.

If that happens, many economists believe we will begin to see a sharp increase in interest rates which could result in a much higher monthly payment for those who wait. For example, an interest rate increase of 1% on a 30-year fixed mortgage of $300,000 could cost a buyer $188 more a month or $67,000 more over the span of the entire loan.

3. They might miss out on record home price affordability.

Home price affordability is at its most optimal level in decades. As a result, those who wait to buy will likely pay more for the home they purchase than what that same home would cost right now. In fact, home prices have already begun to rise slightly in some markets. Instead of getting a better bargain, waiting to buy a home might net buyers a higher purchase price, less appreciation and less house for their buck.

“There is no time to waste for anyone who wants to take advantage of this great buying opportunity. Particularly for those who have a home to sell first,” added Weichert. “If you are prone to saying ‘what if’ and wondering what could have been, you will thank yourself down the road for buying now.”

For more information, visit www.weichert.com.

As a Reno-Sparks real estate consultant I welcome any questions or comments on the Reno-Sparks real estate market or any articles I post.  I can be reached at chance@ballad-company.com

RISMEDIA, March 12, 2010—As spring approaches, many homeowners grow eager to start remodeling projects to update and refresh their surroundings. Before getting started, it’s a good idea to hire a professional remodeler for a workable plan and better results, according to the National Association of Home Builders (NAHB).

“A professional remodeler knows how to translate a homeowner’s dreams and budget into a beautiful reality,” said Donna Shirey, CGR, CAPS, CGP, president of Shirey Contracting in Issaquah, Wash. and 2010 chairman of NAHB Remodelers. “They have the expertise and skills to satisfy a customer while keeping the budget in check.”

Here are five tips for planning a successful home remodel that you can enjoy for many years to come.

1. Compile a list of home remodeling ideas and draft a budget for the work.
You likely have some projects in mind, such as modernizing the bathroom, renovating the kitchen, replacing windows or repairing the roof. Prioritize your wish list: Maybe you don’t have the budget for your dream remodel, but professional remodelers can maximize your dollars by doing the work in phases, suggesting budget-friendly products and materials and implementing creative design solutions.

2. Look for a professional remodeler to help plan the project.
Start by searching NAHB’s Directory of Professional Remodelers at www.nahb.org You’ll get a list of nearby remodelers to contact. Asking friends and neighbors for names of qualified remodelers will also help you find a match for your project.

3. Check the references and background of the remodeler.
After you start speaking with remodelers and find one or two who match your project’s needs, be sure to conduct some background research by checking with the Better Business Bureau, talking to their references and asking if they are a trade association member (such as NAHB Remodelers). Remodelers with these qualities tend to be more reliable, better educated and more likely to stay on top of construction and design trends.

4. Agree on a contract.
Talk over the details of the home remodeling project and begin reviewing the contract. You’ll want to check the remodelers’ insurance coverage, ask about any warranties on their work, know who is responsible for obtaining any building permits and understand the process for making any change orders after the contract is signed. Make sure that you and your remodeler see eye to eye before you sign on the dotted line.

5. Take advantage of the energy efficiency tax credits.
If your remodel includes replacing windows or doors, adding insulation, installing new roofing, upgrading heating or air-conditioning units, updating the water heater or installing energy generating products (such as solar panels, heat pumps or wind turbines) then you can take advantage of federal energy efficiency tax credits through 2010 that will help defray costs and maximize your remodeling budget while reducing home energy bills.

For more information, visit www.nahb.org.

You ever have on of those day when you don’t feel like working, that was me yesterday even thought I love working in the Reno/Sparks real estate.  For those of you who are use to a new article every weekday I apologize for not having one.

As a Reno/Sparks real estate consultant I always welcome any comments or questions on the Reno/Sparks real estate or any of the articles I posted.  You can email me directly at  chance at ballard-company.com

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RISMEDIA, January 28, 2010—The Home Buyer Tax Credit is a great program providing a tremendous stimulus for the real estate industry, but the impact of the tax credit is going to be undermined by the restrictive way that the IRS is interpreting the credit for married couples, according to Joseph Rand, one of the founders of Homebuyertaxcredit.com.

In the guidelines of the Home Buyer Tax Credit, the IRS has inadvertently created a “marriage penalty” by requiring that both spouses must have the same exact ownership history in order to claim the credit, which treats married couples differently from unmarried couples. Joseph Rand and the co-founders of Homebuyertaxcredit.com, Greg Rand and Matt Rand, have launched a campaign urging members of Congress to amend the legislation and eliminate this penalty.

“The Home Buyer Tax Credit is designed to incentivize home purchases this year, and it should have a significant impact,” said Joseph Rand. “But the impact is going to be undermined because thousands of married couples will not be eligible due to a very restrictive reading of the legislation by the IRS. The IRS will only allow married couples to claim the credit if both spouses qualify for the same type of credit in their own right, even if the couple would get a tax credit if they were unmarried. Married couples are tested together, and must both be eligible. This is not the case for unmarried couples, who are tested individually such that if one does not qualify, the other can still get a credit.”

Essentially, the only types of married couples who would be eligible to claim the credit would be married couples in which both spouses are qualifying first-time home buyers, or married couples in which both spouses have owned and lived in the same home for at least five consecutive years out of the last eight.

Greg Rand said that this issue was likely an oversight, and the IRS probably did not intend to exact a marriage penalty that undermines such an important economic recovery program. “Clearly, Congress did not intend to render millions of American married couples ineligible for any type of tax credit, even in cases where both spouses would qualify on their own and in cases where unmarried couples are eligible to claim tax credits,” said Greg Rand. “Marriage is the cornerstone of our society.”

Matt Rand suggested that Congress needs to take immediate action steps to correct this unintentional penalty. “To fix this, either Congress needs to revise the legislation or the IRS has to revise its treatment of married couples to allow for eligibility for a tax credit where both spouses would qualify for a tax credit in their own right if they were single or unmarried partners buying together,” said Matt Rand. “If the IRS is not able to revise its interpretation of the law, Congress should explicitly amend the law to fix the marriage penalty by allowing for equitable treatment of married and unmarried couples.”

The Rands are hoping to draw enough attention to the cause so that Congress will be prompted to act quickly. In addition to the campaign on Homebuyertaxcredit.com, a Facebook cause has also been created to bring awareness to the public and urge them to take action. The Rands encourage any married couples who are being affected by the Home Buyer Tax Credit’s restrictive marriage guidelines to go to www.homebuyertaxcredit.com and submit their story.

As a Reno/Sparks real estate professional, I encourage all questions or comments on the Reno/Sparks real estate market or any of the articles posted on this blog.  I can be reached by email at:   chance at ballard-company.com or http://www.myspace.com/chancegates

Upgrading to a qualifying energy-efficient metal or asphalt roof can cut your cooling bill as well as knock off up to $1,500 from your tax bill.

The roof of your house protects against more than rain. The sun’s rays beat down relentlessly, especially during summer. The intense heat can raise the temperature inside your home. Proper venting and insulation help keep the cool air in and the warm air out. So, too, do energy-efficient roofing materials, which take the brunt of the solar onslaught. Uncle Sam is encouraging homeowners to improve the roofs of their primary residences with a tax credit worth up to $1,500.

During 2009 and 2010, you can claim a credit for 30% of the cost of qualifying asphalt or metal roofing materials. The credit, which should be taken on IRS Form 5695 for the tax year in which the work is completed, can be split between 2009 and 2010 but can’t exceed $1,500 total for both years. You can’t claim more in credits than you owe in taxes.

Metal vs. asphalt roofs

To qualify for the tax credit, you must use either metal or asphalt roofing materials that are designed to reduce heat gain—the amount of heat transferred into a home—and meet the requirements of Energy Star, a federal program that promotes energy-efficient products and practices. Metal roofs must have appropriate pigmented coatings and asphalt roofs must have appropriate cooling granules. Asphalt materials can be either traditional shingles or modified bitumen (rolled asphalt sheets). Energy Star has a list of all of its approved roofing products, but only the metal and asphalt materials may qualify for the tax credit.

It’s a good idea to hang on to manufacturers’ certification statements that attest to the tax credit-worthiness of the roofing materials you purchase. These can usually be found on product packaging or company websites. You don’t need to file these with your tax return, but the IRS could ask for them later. Consult a tax adviser.

Dean Kucharski, a 22-year veteran of the roofing business in Pontiac, Mich., estimates that for a typical 2,200-square-foot home, a mid-range asphalt roof will run about $7,000 to $12,000, including labor. The good news is that it will likely last 20 years or more. For a metal roof, expect to pay twice as much, though it can last for 50 years, he says. If you hire a contractor, get an itemized bill that breaks out the cost of materials since labor doesn’t count toward the tax credit. Materials should account for about half the bill on standard roofing jobs.

How much roof do I have?

You can get a rough estimate of how much roofing material you’ll need by figuring the square footage of the footprint of your home and adding about one-third more to account for roof pitch, overhangs, dormers, gables, and so on. Roofing contractors often quote in terms of “squares.” One square equals 100 square feet. So if a roofer says your house is 20 squares, it means it’s roughly 2,000 square feet—20 times 100.

Once you’re ready to pick a roof type, Kucharski suggests talking to an area building wholesaler or a company that specializes in roofing materials. It’s important to consult with someone who knows what types of materials are appropriate for a given region’s climate. Big-box retailers may not have as wide a selection or knowledgeable staff.

Finding a good roofer entails the same steps as finding any qualified contractor: ask neighbors for recommendations, collect at least three bids, check references, and get everything in writing. Craig Silvertooth, executive director of the Center for Environmental Innovation in Roofing, recommends finding a contractor through the National Roofing Contractors Association, which has about 4,000 members.

Save on cooling bills

You’ll get the most bang for your roof-renovation buck if you live in a hot climate, namely the South and Southwest. Expect to save between 7% and 15% on your cooling costs with energy-efficient roofing materials, says Michelle Van Tijen of the Cool Roofs Rating Council. If you pay $300 a month to cool your home, figure you’ll cut your monthly bill by up to $45.

Ironically, with roofs there is such a thing as being too energy efficient. In winter months, roofing materials with very high heat-deflecting qualities can increase heating bills. However, you’re more than likely to make up the difference on your air-conditioning costs. That’s especially true if you live in an area where you run your air conditioner much of the year.

Think hard before replacing a roof that’s in perfectly good shape. Consider instead a roof coating, a material painted over your existing roof that offers insulation and sun reflection, says Silvertooth. Roof coating costs about 75% less than replacing a roof, though it doesn’t qualify for the tax credit. Another affordable way to save on cooling costs that doesn’t even involve the roof is to add more insulation to your attic. This home-improvement project can even be tackled by weekend warriors, and it qualifies for a federal tax credit.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.

Gil Rudawsky has been covering business and consumer issues as a reporter and an editor for 18 years, most recently as a business editor at the Rocky Mountain News. He lives in a house built in the 1930s, and always keeps the homeís character in mind when making upgrade.
 http://www.houselogic.com/articles/tax-c…

Trulia, Inc., a real estate search site, has announced that 22% of homes currently on the market in the United States as of December 1, 2009 have experienced at least one price cut.
Read more: http://rismedia.com/2009-12-10/home-pric…

When we already know for the first time in years nondistressed properties had more sale than the short sales or foreclosed properties.
 http://chancegates.com/2009/12/02/octobe…

As presented in the article http://chancegates.com/2009/11/23/180/
interest rates have hit an all time low. With the tax credit extensions for first time buyer which now includes move up buyers also. http://chancegates.com/2009/12/03/first-…
Should make March and April very active months in the Reno/Sparks real estate market, as everyone tries to beat the April 30 deadline.

If your selling a house here is a helpful real estate blog post so you will not be one of the 22%.  http://chancegates.com/2009/04/27/sellin…

If your buying a house in the Reno/Sparks real estate you can visit these helpful blogs post:
 http://chancegates.com/2009/12/06/home-o…

 http://chancegates.com/2009/11/02/home-l…

 http://chancegates.com/2009/09/16/hud-ho…

 http://chancegates.com/2009/10/19/how-to…

 http://chancegates.com/2009/08/12/city-o…

If looking to purchase real estate in Lyon County here is another helpful real estate blog post:
 http://chancegates.com/2009/08/03/new-ns…

National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001
Congress has extended and expanded the homebuyer tax credit.