NYC Celebrity Newcast

What better thing to do on a Saturday than to watch a video cast from NBC New York about celebrity real estate news. Enjoy!

http://www.nbcnewyork.com/around_town/real_estate/39750147.html

Weekly Update for the week ending February 27th

Wow! Sales are up for the week with 35 sales, up from 13 last week. Here's the breakdown of the sales:

• 3 Condo/PUDs
• 31 Single Family Homes
• 1 Land listing

The three condos sales consisted of: An attached home at Cameron Row in Renwick which sold for $313,691 (interesting figure); a 3 bedroom/3 bath condo/townhouse at Oaklawn Park and Canada Park for $130,000; and a 2 bedroom/2 1/2 bath attached home at Creek's Edge which sold for $127,500.

On to the single family homes: The deal of the week went to a bi-level located in Ellettsville which sold for $50,500! With 1920 square feet, this home has 3 bedrooms and 1 1/2 baths. The high selling home of the week was 3500 square foot home in Bellvista which had a list price of $485,000 and sold for $450,000.

Here's the breakdown on selling prices for the week:

• 4 homes sold for under $100K
• 8 homes sold for between $100K and $140K
• 7 homes sold between $140K and $175K
• 3 homes sold between $175K and $225K
• 2 homes sold between $225K and $300K
• 4 homes sold between $300K and $400K
• 3 homes sold for over $400K

As for new listings, 69 new properties came on the market. Here are the numbers:

• 8 Condos/PUDs
• 49 Single family homes
• 1 Multi-family
• 8 land listings
• 3 commercial listings

The single family homes are relatively evenly divided between price ranges of : $100K to $150K; $150K to $200K; $200K to $300K.

Those are the numbers!

A Sample of Today's Interest Rates From Local Lenders

Interest rates are up slightly today. An article in the New York Times said that refinancing levels were down nationwide do to the increased rates. But at the same time, at the end of last week some banks were posting rates below 5%. As always on the b-town report rates are for 30 year fixed rate conventional mortgages and rates are subject to change.

Fifth Third Bank: 5.25%

Peoples State Bank: 5.375%

Regions: 5.25%

United Commerce Bank: 5.375%

The Best and Worst Housing Markets in the US

Forbes magazine analyzed monthly declines as well as year-over-year declines in home prices. It also looked at how many months of equity homeowners have lost. With these figures in mind, it determined the 10 best and the 10 worst U.S. housing markets. Here they are::

10 Best
New York City
Washington, DC
Charlotte, N.C.
Portland, Ore
San Diego
Denver
Boston
Dallas
Los Angeles
Seattle

10 Worst
Las Vegas
Phoenix
Detroit
Minneapolis
San Francisco
Chicago
Cleveland
Atlanta
Tampa
Miami

(Source: REALTOR.ORG/realtormag)

Foreclosures in Bloomington?

According to http://www.realtytrac.com/, a website dealing with properties in foreclosure, Bloomington currently has 53 bank owned properties on the market. That is less than the similar area of Champaign/Urbana Illinois that has 71 bank owned properties on the market. However, if we are looking at University towns, Charlottesville Virginia only has 2 bank owned properties on the market. At RealtyTrac, you are able to view basic information about auction properties, sheriff's sales, bank owned properties and more. To see detailed information you have to subscribe to the site.

Price is the biggest compromise home buyers make.

When weighing in on where home buyers end up compromising when purchasing a home, 20% of recent buyers said they make some compromises when it came to the price of the home they purchased. Here are some other stats:

17% said they compromised on the size of (the house

15% said they compromised on the condition of the house

14% said they compromised on the distance of the house from their work

36% of buyers said that they did not need to compromise at all!

(Statistics from the National Association of Realtors)

A Sample of Today's Interest Rates

The rates are looking good today. Here is a sample of rates from some of our local lenders. As always on the b-town Report rates are for a 30 year fixed rate conventional mortgage and rates are subject to change.



Fifth Third Bank: 5.25%

Monroe Bank: 5.00%

Premier Home Mtg: 5.99%

Regions: 5.00%

United Commerce Bank: 5.125%

Indianapolis Makes the Top of the List of the Most Affordable Cities to Buy a Home

10 Most Affordable Cities to Buy a Home

More people can afford a house today than in at least five years, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index.

A family earning the national median income of $61,500 a year would be able to buy more than 60 percent of all homes sold in the last three months of 2008 by committing less than 28 percent of their total income toward paying the mortgage, the report found.

That figure is up 56.1 percent from the third quarter of 2008 and up 46.6 percent from what it was at the end of 2007.

According to the Index, the most affordable cities and their median prices are:

Indianapolis, Ind., $103,000
Warren, Mich. $125,000
Youngstown, Ohio, $73,000
Detroit, Mich., $90,000
Grand Rapids, Mich. $102,000
Syracuse, N.Y., $88,000
Dayton, Ohio, $90,000
Akron, Ohio, $90,000
Cleveland, Ohio, $100,000
Scranton, Pa., $85,000

Source: CNN, Les Christie (02/19/2009) via Realtor Magazine

A Sample of Today's Interest Rates

Those fantastic rates that were being offered on Friday have risen slightly. Here is a sample of today's interest rates posted by local lenders. As always on the b-town report, rates are for a 30 year fixed rate conventional mortgage and rates are subject to change.

Bloomfield State Bank: 5.25%

Fifth Third Bank: 5.25%

Premier Home Mtg: 5.125%

Regions: 5.00%

United Commerce Bank: 5.125%

There are 42 Condos currenly on the market in Bloomington priced under $100,000

If you have ever thought of buying a condo, there are some great options for you in Bloomington right now. With 42 condos on the market that are priced under $100,000, all with at least 2 bedrooms and 2 full baths...great for a roommate situation.

Coming in just under the price mark at $92,500 and pictured to the right is this new construction condo at Woolery Mill. It has 3 bedrooms and 2 and a half baths and it's new construction!

On the lower end is the condo to the left which is at Eagle Point. It has 2 bedrooms, 2 baths and is priced at $65,900. It is about a 20 minute drive to I.U. and the downtown court house square, but I have spoken to residents of Eagle Point and they say the additional drive is worth it to live near Lake Monroe and have access to all of the amenities of Eagle Point.

With interest rates like the ones posted on Friday (less than 5%) buying could be cheaper than renting.

More on the Tax Credit for Home Buyers

Tax Credit for Home Buyers

First-time home buyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.
The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

Tax Credit Versus Tax Deduction
It’s important to remember that the $8,000 tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a home buyer were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, they would owe nothing. Better still, the tax credit is refundable, which means the home buyer can receive a check for the credit if he or she has little income tax liability. For example, if a home buyer is liable for $4,000 in income tax, he can offset that $4,000 with half of the tax credit… and still receive a check for the remaining $4,000!

Phase out Examples
According to the plan, the tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.To break down what this phase out means to home buyers who are over those amounts, the National Association of Home builders (NAHB) offers the following examples:
Example 1: Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phase out to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.
Example 2: Assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.Remember, these are general examples. You should always consult your tax advisor for information relating to your specific circumstances.

Homes that Qualify
The tax credit is applicable to any home that will be used as a principle residence. Based on that guideline, qualifying homes include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured or homes and houseboats used for principle residence also qualify.

Higher Loan Amounts
More good news – there is an extension on the additional tier of conforming loan amounts which had been first established in 2008. This tier of home loans are those greater than $417,000, and with a maximum that depends on the area, but is not greater than $729,750. These loans will again be eligible for rates that are slightly higher than conforming loan rates, but less expensive than the standard “jumbo” loan rates.

Additional Housing-Related Provisions
Tax Incentives to Spur Energy Savings and Green Jobs — This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.

Landmark Energy Savings — This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing—This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.

Expanding Housing Assistance—This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.

More Help for Homeowners in the Future
Another thing to keep an eye on in the coming weeks is President Obama’s plan to help struggling borrowers before they are faced with a default on their mortgage.
According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster.

While this is good news for individual homeowners, it will likely be good for the housing industry as a whole. That’s because, assisting struggling borrowers before they default should help stop the wave of foreclosures, which are estimated to top two million this year. That, in turn, will help stabilize home prices.
(Courtesy of Nathan Finny of Premier Home Mortgage)

Weekly Market Update for the week ending February 20th

Wow! 98 new listings went on the market this week, up from 27 new listings last week. Here's the break down of the listings:

• 4 Condos/PUDs (aka Townhouses in other markets)
• 66 single family homes
• 23 land listings
• 5 commercial listings

The condos/PUDs range in price from $77,900 for an Eagle Point condo to a new construction free standing patio home in Baywood priced at $242,500

The 66 single family homes range in price from mobile home on 2+ acres in Morgan County to a 19 room, six bedroom home with 6870 square feet located in Sterling Woods priced at $1,095,000. Most of the new listings are priced from the $130K's to the low $200k's.

The land listings are priced from $15,000 for a .8 acre lot in Owen County to a 68 acre tract of land in Ellettsville priced at $1,025,000.

Right now there are 1127 residential listings on the market and 13 of those sold this week. Here are the numbers:

• 1 condo/PUD
• 12 single family homes

The condo was a 3 bedroom, 3 bath home in Oaklawn Park at Canada Park and sold for $130,000. The single family homes ranged from $99,900 for a bi-level in Kelli Heights to a 10 room home with 3860 square feet in Morgan County that sold for $398,500.

The median sales price for single family homes this week was $190,800 which is down from last weeks number of $209,556. But the number of sales was up by 85%.

Interest Rates Are Down and Some Are Below 5%!

Here is a sampling of interest rates for today from some of our local lenders. The rates being posted are really great, so if you have considered refinancing or purchasing, it might be a good time to make the leap!

Fifth Third Bank: 5.125%

German American Bancorp: 4.875%

Monroe Bank: 4.875%

Peoples State Bank: 5.25%

Premier Home Mortgage: 4.750%

United Commerce Bank: 5.00%

And as always on the b-town report, rates are for a 30 year fixed rate conventional mortgage and rates are subject to change.

What's the most expensive house to sell in Bloomington during 2008?

The home with the highest selling price in Bloomington during 2008 was a 8500+ square foot home on 28 acres with year round views of Lake Monroe. The sales price...$2,300,000.

Three other homes in Bloomington sold for over 1 million dollars with sales prices ranging from $1,400,000 to $1,550,000.

How many hopeful sellers do we have today? 16 home owners currently have their houses on the market for over 1 million dollars with list prices ranging from $1,095,000 to $2,550,000. Not bad for a small city in southern Indiana.

(Source: Bloomington Board 0f Realtors MLS system)

How to determine your homeowner's insurance coverage

Your home may be the biggest investment you'll ever make. So if you're serious about protecting that investment, here is some important information to consider when determining the coverage amount for your home.

1. Make sure that your home is insured for at least 100% of its estimated replacement cost.

2. Understand the difference between market value and replacement cost for insurance purposes.

3. When buying a new home, be sure to obtain a replacement cost estimate.
(courtesy of State Farm Insurance via Trulia.com)

A Sample of Today's Interest Rates

Here is a sampling of interest rates posted for today from some of our local lenders. As always on the b-town report, the rates are for a 30 year fixed rate convention mortgage and rates are subject to change.

Fifth Third Bank: 5.25%

Monroe Bank: 5.125%

Peoples State Bank: 5.25%

Regions: 5.375%

United Commerce Bank: 5.125%

If you are a first time home buyer, this is a great time to start shopping with low rates and tax credit incentives (see posting earlier today from the b-town report).

More and In Depth on the new First Time Home Buyer's Tax Credit

This is a long posting, but full of detailed information plus questions and answers about the new tax credits that are a part of the new stimulus bill:

A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid.The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.

Who is eligible to claim the tax credit? First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.

What is the definition of a first-time home buyer?

The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the home ownership history of both the home buyer and his/her spouse.For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
Are there any income limits for claiming the tax credit?The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

What is "modified adjusted gross income"?
Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.

If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phaseout limits.

Can you give me an example of how the partial tax credit is determined?Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.

How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008? The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.

How do I claim the tax credit? Do I need to complete a form or application?Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.

What types of homes will qualify for the tax credit? Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

I read that the tax credit is "refundable." What does that mean? The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).

I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.
Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit? Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program? Yes. The tax credit can be combined with the MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.
I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit? No. You can claim only one.

I am not a U.S. citizen. Can I claim the tax credit? Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519.

Is a tax credit the same as a tax deduction? No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.

Is there any way for a home buyer to access the money allocatable to the credit sooner than waiting to file their 2009 tax return? Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the down payment.Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.Further, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a down payment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.

If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.
(Courtesy of Century 21 Realty Group)

A Great New Tool for Finding Open Houses in Your Area

Trulia is now offering a great tool for open houses. You can simply register to recieve weekly updates for open houses in your choice of city/town or zip code. Simply follow this link to check out more information:

http://www.trulia.com/alerts/search/

Tax Credits for New Home Buyers

First-time home buyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.

The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

(Source: Nathan Finney/Premier Home Mortgage)

What's the best return for your money in home renovations?

According to an article from the National Association of Realtors, vinyl window replacement is your best bet for a financial return on home improvements. We all hear about kitchen and bath remodeling and how important it can be to selling your house, but depending on the age of your home and the windows that it currently has you might want to consider this green upgrade.

New insulated windows can save a great deal of money in heating and cooling. In addition, if your windows are older, new white vinyl windows can give your house a new and fresh appearance on the outside. And curb appeal is the first thing to make a buyer want to come inside your home.

Follow the link below for more details on cost and increase of value for home improvements.
View the PDF version of the full report published in REALTOR® Magazine

A sampling of today's intersest rates.

Here is a sampling of interest rates from some of our local lenders for today. As always on the b-town report, rates are for a 30 year fixed-rate conventional mortgage with great credit scores. Regions is definitely working for the money today !


Fifth Third Bank: 5.25%

Monroe Bank: 5.25%

Peoples State Bank: 5.25%

Regions: 5:00%

United Commerce: 5.125%

Price Reductions in our Real Estate Market

An article is this last Sunday's New York Times about a blog that started keeping track of price reductions in the falling real estate market in that section of Westchester County just north of Manhattan inspired me to look into some of our market's price reductions. Here are some figures on the 30 price reductions in our MLS system this past week.

With in the past week, the largest price reduction came from a commercial listing. The Winslow Plaza on Winslow Road had a $250,000 price reduction bringing the new list price to $2,750,000.

For land listings, a parcel on HWY 48 consisting of 29 acres for residential or commercial possible use took a $195,000 price cut to come in at $575,000.

As for single family homes, a home in Platue Place took a $28,000 price reduction, bringing the sales price to a more friendly sum of $399,000. Homes priced closer to $300,000 saw reductions of $10,000 to $14,000 while homes priced under $200,000 saw the more traditional reductions of $5,000.

Keeping all this in mind, when you are considering putting an offer in on a property, ask your Realtor to look into any recent price reductions. The median home sales price in Bloomington is holding firm, so if a seller has already made a major price cut, they may not be interested in too much of a further reduction. But if the listing has not seen a price cut, you may have grounds for negotiating room.

Keep checking back for more price reduction information.

Cherly Ladd's European-style home is on the market.

Cheryl Ladd, of Charlie's Angels fame, along with her husband Brian Russell have listed their European style home in Santa Ynez California for $5,795,000. This 4 br 5 ½ ba 7,000 sqft Single-Family Home is Newly Offered! Potentially Turn Key, Exquisite Yet Comfortable European Inspired Country Estate On 22 Acres With Panoramic Views Of The Entire Santa Ynez Valley. This Thoughtfully Designed And Appointed Manor Features Soaring Ceilings, Grand Spaciousness, And An Open Floor Plan Ideal For Formal Or Casual Living. Truly Exceptional!

(Source: www.Trulia.com)

Pending Home Sales Show Healthy Gain

Pending home sales increased as more buyers took advantage of improved affordability conditions, according to the National Association of Realtors®. Big gains in the South and Midwest offset modest declines in other regions. The Pending Home Sales Index rose 6.3 percent to 87.7 from an upwardly revised reading of 82.5 in November, and is 2.1 percent higher than December 2007 when it was 85.9. Lawrence Yun, NAR chief economist, said the index shows a modest rebound. "The monthly gain in pending home sales, spurred by buyers responding to lower home prices and mortgage interest rates, more than offset an index decline in the previous month," he said. "The biggest gains were in areas with the biggest improvements in affordability."

(courtesy of the National Association of Realtors)

Economic Stimulus Update

(A memo sent to the National Association of Home Builders)

House and Senate conferees completed work on final elements of the stimulus legislation early this morning. I would like to provide you with a brief overview of what is in the final legislative package, particularly as it relates to the housing community.

House and Senate conferees have agreed upon a compromise stimulus package at a total cost of $789 billion. The House is scheduled to vote on the package today and the Senate will follow suit shortly thereafter, with the expectation that the legislation will reach President Barack Obama's desk by Monday, Feb. 16.

There are several provisions in the overall stimulus package that will be beneficial for many of our members – and help stimulate demand for housing.

Chief among these is an $8,000 home buyer tax credit for new home buyers. While we are disappointed and would have preferred a more enhanced tax credit like the Senate version, the conferees did retain some key elements from the Senate and made other modifications that are beneficial to home buyers and home builders. For qualified home purchases in 2009, the legislation:

· Stipulates that the $8,000 tax credit does not have to be repaid, unlike the tax credit passed last summer;
· Keeps the tax credit refundable, or claimable regardless of tax liability;
· Extends the sunset date from July 1, 2009 until Dec. 1, 2009 so that consumers can utilize it during the critical summer and fall buying months;
· Allows tax credit home buyers to participate in the mortgage revenue bond program; and
· Permits state housing finance agencies to help buyers at closing by advancing the credit amount as a loan using tax-exempt bond proceeds.

While much of the industry's focus was on the home buyer tax credit, there are several other important components in the legislation that will help small businesses and bolster the housing market. H.R. 1, the American Recovery and Reinvestment Act of 2009, will:

· Help home borrowers in high-cost markets by extending the 2008 FHA, Fannie Mae and Freddie Mac loan limits of $729,750 through the end of this year;
· Temporarily allow exchange of Low-Income Housing Tax Credit allocating authority for tax-exempt grants and appropriates $2 billion in HOME funding for affordable housing projects;
· Provide up to a 10-year deferral of tax due to business debt restructuring;
· Expand the net operating loss carry back period from two years to five years for small businesses (businesses with average gross receipts of no more than $15 million over the prior 3 years) for losses arising in tax year 2008;
· Extend the 25C existing home remodeler credit through the end of 2010, increase the credit rate from 10 percent to 30 percent, raise the lifetime cap from $500 to $1,500, and expand the set of qualifying property;
· Provide an Alternative Minimum Tax patch for tax year 2009;
· Increase bonus depreciation and Section 179 small business expensing for business investment in 2009;
· Increase New Markets Tax Credit allocating authority for 2008 and 2009; and
· Delay for one year the start of the 3 percent government contractor withholding requirement (from 2011 to 2012).

Key Provisions in Stimulus Bill

Weekly update for the week ending Friday the 13th...mmm

As the market is coming alive with this warm weather, we had 27 new listings hit the market this week: 11 land listings; 14 single family homes; and 2 condos.

As for the single family homes, they range from a cute little house in Bedford for $71,900 to a 4540 square foot home in Bristol Manor for $725,000. The median list price is $223,335.

Land listings are priced from $44,900 to $64,900. Most are small residential building lots of .3+ acres with one listing being a 5 acre parcel.

There were 7 sales this week. Two condo sales priced at $59,900 for an Eagle Point condo and $89,000 for a condo at the Commons at Curry on the west side. As for the single family homes, they ranged in sales price from $69,900 for a small ranch on an acre of land on the far west side to a $550,000 custom built home in Point Cove at Eagle Point Resort. The median sales price for single family homes this week was $209,556. It is interesting to compare this to the new listings with a median list price of $223,335.

Many Realtors said that showings were down for their listings this week. The general consensus was that many home buyers were waiting to see what would happen with the stimulus package in Washington.

(Information compiled from the Bloomington Board of Realtors MLS system)

Today's Interest Rate Quotes

And the quotes are in...several local lenders are posting the following interest rates today for 30 year fixed rate mortgages. As always, rates are subject to change. The rates are slightly higher than yesterday but still quite good.



Fifth Third Bank: 5.25%

Peoples State Bank: 5.25%

Regions: 5.125%

United Commerce Bank: 5.125%

Check out the rates today!

Here are posted interest rates from some of our local lenders. As always on the b-town report, rates are for a 30 year fixed rate conventional mortgage and often they require a credit score of 740 or higher. And of course, rates are subject to change.

Fifth Third Bank: 5.125%

German American Bancorp: 5.00%

Monroe Bank: 4.875%

Regions: 5.00%

United Commerse Bank: 5.00%

The Top Ten Fastest Growing Town in the US

BusinessWeek worked with Gadberry Group, a business location company, to identify communities in every state that have experienced the largest growth. The results were published in a report called "America's Biggest Boomtowns."

Here is the Top Ten list:

Summerlin South, Nev., 618 %
Katy, Texas, 168 %
Wentzville, Mo., 160 %
Spring Hill, Tenn., 157 %
South Carolina, 156 %
Brighton, Colo., 153 %
Wesley Chapel, Fla., 151 %
Lehi, Utah, 110 %
Canton, Ga., 99 %
Oswego, Ill., 98 %

(Source: Business Week, Prashant Gopal (02/06/2009 via http://www.realtor.org/)

Home Inspections are a must for any home buyer

Home inspection has become invaluable, especially in light of stricter legislation on both a state and national level. Our newly updated Field Guide to Home Inspection will assist you in understanding home inspections, the home inspection process, and working with home inspectors. You will also find helpful links to a variety of professional home inspection organizations and useful information available to you from the National Association.

(Source: http://narblog1.realtors.org/mvtype/infocentral/)

A Sampling of Today's Interest Rates

Here are rate quotes from three of our local lender for today. As always on the b-town report rates are for a 30 year fixed rate conventional mortgage. Rates are staying near or at 5% so far this week.



Fifth Third Bank: 5.25%

Premier Home Mtg: 5.125%

United Commerce Bank: 5.00%

Today's Interst Rate Offerings

Some of the local lenders have posted interest rates for today and the rates are down from the past few days. As always on the b-town report, the rates are for a 30 year fixed rate conventional mortgage. And of course, rates are subject to change.


German American Bancorp: 5.00%

Monroe Bank: 5.125%

Regions: 5.125%

United Commerce Bank: 5.125%

The Jolie-Pitt Residence: Chateau Miraval, Provence, France

We interrupt our regularly scheduled post for some breaking news. We’re seeing rumors fly all over the web that Brad Pitt and Angelina Jolie have just bought a $60 million compound on the French Riviera. It’s not just an estate, it’s a small village.

Chateau Miraval has over 1,000 acres and its own vineyard, Miraval. Reports from the Daily Mail and E! say that the couple have been flying all over in a helicopter looking for a property, and have finally settled on something. And they’re not just “settling” for any property.

(Courtesy of : blog.luxuryproperty.com)

Green Building: NAHB Creates Residential Standards

The National Association of Home Builders (NAHB) has won a stamp of approval from the American National Standards Institute for its new construction standard backed by principles of energy efficiency and environmental sustainability.

The "National Green Building Standard" includes benchmarks that apply to new or renovated home projects, ranging from sprawling McMansions to compact modular homes.

The NAHB label offers an alternative to the U.S. Green Building Council's widely accepted "LEED for Homes" standard, but USGBC's Nate Kredich says it would be a mistake to think the certifications are about competition.

"Less than 1 percent of [U.S.] housing stock is certified under any standard," he notes, "so we're focused on market transformation."

Source: E&ENews PM, Michael Burnham (02/05/09)

A sampling of today's interst rates

Here are the interest rates that some of our local lenders are offering for today. As always on the b-town report, these rates are for a 30 year fixed rate conventional mortgage and rates are subject to change.

Bloomfield State Bank: 5.375%

Monroe Bank: 5.375%

Premier Home Mtg: 5.125%

Regions: 5.500%

United Commerce: 5.375%

What is the most expensive and least expensive single family home currently on the market today in Bloomington?

Top of the market...bottom of the market. Above is a picture of the highest priced listing in Bloomington's MLS. It sits on the edge of Lake Monroe and has six bedrooms and five full/two half baths that total over 10,000 square feet. Add to that a thirteen acre lot with amazing views of the lake...all for $2,550,000.

The house pictured at the top of this posting is the least expensive coming in at $36,000 which is a two bedroom, one bath home on the far south side with a total of 800 square feet. In addition, you get a detached two car garage and a third of an acre.

One is priced at $250 per square foot, the other at $45 per square foot. This is a wonderfully diverse market here in Bloomington!

The days of a listing agent simply posting a property on MLS and waiting for it to sell are over. Today's Realtors need to know how to effectively market properties on the internet to connect with buyers around the US. One of the most effective and creative ways to do this is with a personal website for a listing. Follow these two links to see an example:

http://www.424laurelwooddrive.com/

http://www.227riverparkdrive.com/

These websites can be linked to almost every major real estate website including: realtor.com; zillow.com; trulia.com; homefinder.org, craigslist.com, etc.

As chic as it is eco-friendly, the EcoSmart Fire system gives you the pleasure of a fireplace without the pollutants. This is a self contained unit that is fueled by clean-burning denatured ethanol, a renewable resource. These portable fire boxes can be placed anywhere inside or outside a home since they require neither a utility connection nor a chimney. And to make this product ever greener, the company will plant two trees on the buyer's behalf for every unit purchased. Models range from $2100 to $11,500. For more information, go to: http://www.ecosmartfire.com/

How Did the January '09 Real Estate Market Compare to January '08?

The number of residential sales in Monroe County for January '09 was down 32% from January '08. This past month, 47 sales ranged in price from 59,900 for a condo to $610,000 for a single family home in Linden Hill.

In January '08, there were 70 sales within a price range of $56,000 for a condo to $975,000 for a home in Sterling Woods.

The good news is that the number of showings on current listings are up from what they have been over the past couple of months according to area Realtors. And spring is just around the corner...

(Figures are for residential sales from the Bloomington Board of Realtors MLS system)

The Weekly Report for the week ending February 6th

Sixteen new listings went on the market this week. Six of these listings are for unimproved land ranging from a 5.9 acres parcel in Spencer for $29,900 to a 7.4 acres parcel in Bloomington's south side for $79,900. The ten new residential homes on the market range from a condo at Eagle Point for $79,900 up to a 4 bedroom home in Park Ridge East listed for $185,500 (the highest priced new listing of the week).

Seven properties closed this week: one commercial land listing for $50,000; one condo sale of $99,900 in Stoneview; and five residential single family homes. These five homes range in sales price from a 3 bedroom/1 bath 'fixer-upper' estate sale for $74,900 located near downtown up to a unique log home on 2 acres with 2 bedrooms/3 baths selling for $239,900 and located on the east side. The sales of the 5 single family have an average sales price of $173,907 which is just slightly above the average sales price of a home in Bloomington durring 2008 and 2007.

Don't forget to check the posting from last month with figures comparing 2008 to the previous three years.

Friday's Interest Rates

Here are a sampling of today's interest rates offered by local lenders. As always on the b-town report the rates are for a 30 year fixed rate conventional mortgage and rates are subject to change:

Fifth Third Bank: 5.25%

Premier Home Mtg.: 5.25%

Regions: 5.375%

United Commerce Bank: 5.375%

Today's Interest Rates

Rates posted by some of the local lenders are listed below. As always on the b-town report, these rates are for a 30 year fixed rate conventional mortgage:

Fifth Third Bank: 5.25%

Monroe Bank: 5.625%

Peoples State Bank: 5.5%

Premier Home Mtg.: 5.125%

As always, rates are subject to change.

Think Green in the Kitchen

New and stylish kitchens are all the rage and I one friend in particular that has the most trendy kitchen that is used only to collect pizza boxes and chill wine an beer. Well hopefully these few ideas from Bon Appetit will inspire us all to use our kitchens in a greener manner.

1. Swap the bottle for the box...boxed wine, as opposed to bottled wine, generates half the carbon-dioxide emissions in transport. New technology has improved packaging making boxed wine an acceptable option


2. Eat more tofu...because of the water consumed to produce animal feed and the water consumed by the livestock, if you replace one pound of beef each month with tofu, you will save 20,000 gallons of water a year.


3. Become a 'Locavore'...eating food that is produced within a 100 mile radius of your home is a great way of supporting your local economy and reducing your carbon footprint. Go to: http://www.100milediet.org/get-started/map to calculate your own eat-local 100 mile radius.

A Sampling of Interest Rates for February 3rd

Here are a few of the local lender's interest rates that they have posted for today. As always on the b-town report the rates for for a 30 year fixed rate conventional mortgage.

Fifth Third Bank: 5.25%
Monroe Bank: 5.50%
Regions: 5.125

(rates are subject to change)

Thinking of adding color to your house?

In a recent article in Realtor Magazine, Melissa Tracey stated, "Many salespeople and home stagers say neutral beige or off-white wall are what sells listings--but a touch of color may be just what you need to revive buyers' interest in a languishing listing".



So what color and where? Paintquality.com and Architects Design Group, Inc. have the following advice:

Red = excitement and stimulated appetite...best for the dining room

Orange = comfort and warmth...best for living rooms and family rooms

Yellow = welcoming and joyful...best for poorly lit foyers and hallways

Green = restful and calming...light green is best for living rooms

Blue = promotes calmness...best for bedrooms or any peaceful area in the home

Purple = boosts creativity but can have unpleasant subconscious responses...best for play rooms.



"Color is always a very personal choice. So color choices can be subtle. A color doesn't have to be McDonald's yellow or Red Roof Inn red to be noticed. It can be a derivative or a subtle tint or tone of those particular colors to create the warming effect buyers want in a home" says Debbie Zimmer, spokeswoman for The Rohm and Hass Paint Quality Institute, a research and education group on decorating and color techniques.

(courtesy of Realtor Magazine)

Bloomington makes the "100 least risky real estate markets" list for the US

The Least Risky Metro Areas for Real Estate

"It’s time for some better news on the real estate front. Values have dropped most everywhere, but there are some areas of the country that are reasonably stable and where risk factors are minimal. Risk components include foreclosure activity, property flipping, sales volatility, property history and site influencing factors can positively or negatively affect values in an area."

Bloomington made the list of the top 100 least risky metro areas in the nation. Ranked from 0 to 100 with 0 being no risk and 100 being extremely risky, bloomington came in at 1.79. The riskiest market in the US was Detroit coming in at 46.26.

Find out the safety factor of your own real estate market for your zip code at http://www.homesmartreports.com/ReportOrder.aspx

(information courtesy of www.homesmartreports.com)

Today's Interest Rates

Interest rates for 30 year fixed rate conventional loans posted by area banks and lenders for today are as follows:

Fifth Third Bank: 5.125%
Regions: 5.125%
Monroe Banke: 5.375%
United Commerce: 5.250%
Peoples: 5.375%
Premier Home Mtg: 5.125%

Note that rates are subject to change and additional requirements may apply.