Median U.S. home price rise from 1st quarter to 2nd

A real estate group says U.S. home prices posted a gain in the second quarter, another sign that the ailing housing market is finally coming to life.

The National Association of Realtors says the median sales price in the quarter was $174,100, up 4 percent from the first quarter, but still almost 16 percent below a year ago. Prices, however, were still down from a year ago in 129 out of 155 metropolitan areas the group tracks.

Total sales rose to a seasonally adjusted annual rate of 4.76 million, from 4.58 million in the first quarter, but were still about 3 percent below a year ago.

By ALAN ZIBELAP Real Estate Writer

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Pending Home Sales Surge; Fifth Straight Monthly Rise

By: CNBC.com with wires

Pending home sales rose for the fifth consecutive month in June, easily topping expectations, according to the National Association of Realtors.

The Pending Home Sales Index rose 3.6 percent to 94.6 from an upwardly revised reading of 91.3 in May, and is 6.7 percent higher than in June 2008. Reuters had expected an 0.6 percent increase.

The last time there were five consecutive monthly gains was July 2003.

The housing market's collapse is at the heart of the longest U.S. recession since the Great Depression and reviving the sector is critical to healing the economy. The data served as further evidence that the housing market was starting to claw out of a three-year slump.

"Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who've been on the sidelines. Activity has been consistently much stronger for lower priced homes," said Lawrence Yun, NAR chief economist.

Pending home sales were higher in all four regions than last month, and only the west experienced a decrease from a year ago. The index in the Northeast rose 0.4 percent to 81.2 in June and was 5.8 percent above the same period last year. In the Midwest, the index climbed 0.8 percent to 89.9. It was 11.6 percent higher than June 2008.

The index in the South jumped 7.1 percent to 100.7 in June and was 8.9 percent higher versus a year ago. In the West, the index rose 2.9 percent to 100.4, but was 0.2 percent below June 2008.

"Hopefully, in the months ahead, we'll see an even closer relationship between contract activity and closed transactions," said NAR president Charles McMillan.

The organization's Housing Affordability Index fell from record peaks reached in recent months but remains 36.6 percentage points above one year ago.

The Clock is Ticking! Decision Time Draws Near for First Time Buyer's Credit

While the economy continues to show signs of improvement and many housing markets are beginning to heat up, scores of would-be buyers are still waiting on the sidelines for further positive housing trends. But for first-time buyers, time is running short on the federal government's $8,000 tax credit.

Though the official expiration date of the credit is December 1, in reality on-the-fence buyers will need to make a decision one way or the other fairly soon. The reason: in order to qualify for the credit, the home purchase must close by December 1st. Merely having loan approval, an accepted offer or a signed contract won't be enough to qualify for the Housing and Economic Recovery Act.

Decision-Making Timeline - While each transaction is unique, closing a real estate deal is no speedy matter. On average, closing takes place 45 to 60 days after the date that the contract is signed. In order to meet the December 1st deadline, this would mean having a signing date in late September or early October. Those who consider the tax credit an important incentive but are still unsure about entering the market will need to make a decision one way or another before many more summer days pass.

To have any chance at finding a home and having an offer accepted by early October, buyers will want to wade into the home buying process right away. The immediate steps include making a final list of desired home attributes, scouting favorite neighborhoods and areas, starting the mortgage pre-approval process and beginning the home search process online.

Potential for Delays - Buying a home is a complicated process, and it is not unusual for purchases involving first-time buyers to take slightly longer than those involving experienced buyers. Some of the delays that first-time buyers may face over the coming months:

Competition with Other Buyers
While home may be selling at a lower rate than in years past, in many areas changes in inventory have created extremely competitive buying environments. Foreclosures or other homes with greatly lowered asking prices are particularly sought after, and in many cases investors are very active in the marketplace.

Disclosures & Contingencies
The seller is obligated to disclose any material facts about the property, including any property defects or any lawsuits regarding claim to ownership on the property. Disclosures can stall negotiations and delay the contract signing depending on their nature and severity. Contingencies (written clauses in the sales contract that give protection to both the buyer and the seller of a home) can also result in some delay in negotiation, particularly if the contingency requires the seller to make specific repairs.

Appraisal
The lender will arrange for appraisal of the property, which will include a thorough inspection of the home's interior and exterior. The appraiser's report will describe the physical characteristics of the property and comparable property values will be used to determine the value of the property. If the appraisal of the home's value is lower than the agreed upon sales price, the buyer's chance of loan approval can be in jeopardy. In addition, recently added rules for appraisers have been causing some delays based upon anecdotal evidence.

Loan Approval
While interest rates remain advantageous for buyers, lenders are being much more fastidious during the approval process. Obtaining pre-approval can help prevent many delays.

The Holiday Season
Buyers who submit an offer in mid-fall may likely run into another roadblock to a pre-December 1st closing date: the approaching holiday season. Closing a real estate sale requires the work and attention of a number of professionals; from real estate agents to attorneys to bankers. Like many Americans, it is not uncommon for individuals in these fields to use up vacation time in the last few weeks of November. Securing a closing date during Thanksgiving week may be something approaching miraculous.

Additional Delays for Short Sales and Foreclosures
Buyers who make an offer on a short sale property or bank-owned foreclosure may find that it takes a significantly longer time to receive a reply than expected. Overall, buying these types of properties is a longer process than buying homes listed on the market by individual owners.


KEY Elements for First-Time Home Buyer Tax Credit

1.) The tax credit only applies to first-time home buyers. The law defines a "first-time" buyer as any buyer who has not owned a home within the previous three tax years. For married couples, the homeownership history of both individuals must meet this qualification.

2.) The tax credit is only available for homes purchased between Jan. 1, 2009, and Dec. 1, 2009. For the purposes of this credit, the purchase date is the date when closing occurs and the title to the property transfers to the new home owner.

3.) As long as the property is purchased by a qualified buyer for use as a principal residence, any type of home, including single-family detached homes, townhouses, condominiums and manufactured homes can qualify for the credit.

4.) The tax credit does not have to be repaid provided that the buyers use the home as their principal residence for at least three years.

5.) The full tax credit is only available for individuals with an adjusted gross income of up to $75,000 and for married couples with a combined adjusted gross income of up to $150,000. The tax credit phases out for anyone above those income thresholds.

6.) The tax credit applies for up to 10 percent of the home's purchase price, with a maximum of $8,000. For example, a first-time buyer of a $50,000 home would be eligible for a tax credit of $5,000 while a buyer of a $150,000 home could receive a tax credit of a maximum of $8,000.

Click Here for a More Information About $8000 Tax Credit

New-home sales up 11% in June

Puget Sound Business Journal (Seattle)

New-home sales in the United States increased dramatically in June from May, offering some evidence that the housing market is recovering.

Sales of single-family homes increased 11 percent to a seasonally adjusted annual rate of 384,000, compared to a revised May rate of 346,000, according to the U.S. Department of Commerce. The jump marks the third consecutive increase in as many months and eclipses predictions by economists recently surveyed by Dow Jones Newswires, who expected June sales to climb 2.3 percent to 350,000.

The last time sales rose so dramatically was in December 2000.

Last week, the National Association of Realtors reported that home resales posted a monthly increase of 3.6 percent in June.

Tips for a Sustainable Lifestyle - Windermere Green Living

Host a Green Barbeque Summer is here and that means the start of what-should-we-barbeque-tonight season. Whether you cook with gas, wood, charcoal or an outdoor solar cooker, you can host a green barbeque this summer with these quick ideas.

Try a natural charcoal

If you are using a charcoal grill, there are natural charcoal options available to lessen your carbon footprint while keeping the flavor. All-natural charcoal burns cleaner than traditional briquettes and doesn’t contain any chemicals. Try Cowboy Charcoal or Wicked Good Charcoal the latter made of carbonized lump wood made from timber certified by the Forest Stewardship Council.

Use reusable plates, cups and utensils

If you’re worried about breaking your last complete set of dishes, more stores are selling inexpensive, sturdy outdoor serveware with bright summer patterns to match the season. Here are a few ideas to check out from Crate and Barrel and Target or buy used dishes from your neighbor’s garage sale or the local Goodwill. If you have just too many guests, try using compostable items that biodegrade much faster and are made from renewable resources such as corn or potato starch.

Become a locavore

Looking for the freshest fruits, veggies, cheese and meat for your next barbeque? Buy local, sustainably grown foods. Eating locally reduces the harmful impact of transporting foods across oceans and continents while supporting local economies. The food itself is fresher, tastier and has better nutritional value. Local Harvest is a great resource to find local sustainable farms and farmers’ markets in your area.

Have a Green story to share?We’d love to hear about your ideas for green living. Share a note or picture with one of your green endeavors and you could be featured in the next Green Living newsletter. Email greenliving@windermere.com.

Home sales climb in June in King County; median price drops from year ago to $395,000

By Eric Pryne, Seattle Times business reporter

Single-family home sales in King County in June surged to their highest level in nearly two years, according to statistics released today by the Northwest Multiple Listing Service.

A total of 1,655 houses closed last month, up 4 percent from the same month in 2008. It was the first year-over-year increase in closed sales since the local housing market peaked in July 2007, and the largest number of closings in the county since October 2007.

"The positive movement in our real estate market year-over-year is really very encouraging," Ron Sparks, managing vice president of brokerage Coldwell Banker Bain, said in a prepared statement.

He and other real-estate agents attributed the increase in part to the new $8,000 tax credit for first-time homebuyers. One broker said they account for about 40 percent of the market now.
Condo sales in King County continued to lag, with closings last month 18 percent below the June 2008 number.

The median price of a single-family house sold in the county in June was $395,000, down 12 percent year-over-year. Real-estate professionals noted the median price is up slightly since January — but it increased between January and June of last year as well.

The median condo price was $249,000, down 16 percent from last June.

Pending sales of King County single-family homes — offers that have been accepted by sellers, but haven't yet closed — were up nearly 25 percent year-over-year, the third consecutive monthly increase.

But, until June, closed sales had continued to trail last year's numbers, prompting some to wonder if the pending-sales increase was illusory. Agents attributed much of the disparity between and closed sales to "short sales" — offers sellers accept for less than they owe on the property — that are notoriously slow to close, and often don't close at all.

In Snohomish County, pending sales of single-family homes in June were up 37 percent year-over-year, and closed sales were nearly even. The median selling price was $307,000, down nearly 12 percent from June 2008.