The Economy’s Impact on Housing

31 07 2012

The KCM Blog – The Economy’s Impact on Housing

The Economy’s Impact on Housing

Posted: 30 Jul 2012 04:00 AM PDT


With the economic recovery sluggish at best, many ask what impact this has on housing. Over the last several years, most economists believed that housing would not recover until the overall economy recovered. However, it now seems that the housing sector may be a driving influence in the recovery.

Here are four reports released in the last 30 days affirming this point:

Morgan Stanley

“In terms of its contribution to real GDP, residential fixed investment has been a positive – albeit modest – force over the most recent four quarters, marking its longest span of back-to-back positive results since 2005.”

Deutsche Bank

“The [overall] resumption in residential activity cannot be understated as the long awaited housing recovery should help buoy consumer confidence and provide a mild lift to second half economic output after what was likely a disappointing first half of the year.”

Fannie Mae

“The data from the past month collectively point to decelerating economic growth, but growth nonetheless…However, despite signs of deteriorating momentum for economic activity, housing continues to be a bright spot as news from the housing market has been relatively upbeat, presenting a rare upside boost to the economy.”

Goldman Sachs

“As we look back at previous major housing recoveries, 1975 and 1991 began with negative jobs growth…In each case, the home sales recovery was fueled by home price improvement, driving new job growth and those jobs creating a fresh wave of demand that supported a multi-year recovery in housing.”

Is housing a victim to the current economic malaise? No. It may even be the cure

Austin, Texas through time….totally cool!

25 07 2012

Don’t you want to move to Austin?
Already here? Well, share this great city with your friends.

Is a Short Sale or Foreclosure Better for the Banks?

25 07 2012

Short Sales vs Foreclosures: the Banks

Posted: 25 Jul 2012 04:00 AM PDT

The banks are beginning to favor offering a short sale to distressed homeowners rather than foreclosing for several reasons:

  • The short sale sells on average for $27,000 more than a foreclosed property.
  • The bank does not have to take on the expenses and maintenance of a vacant home in a short sale.
  • The banks realize a vacant house impacts the values of other homes in the area thus devaluing assets that they may also hold a mortgage on.
  • Some courts have questioned whether the foreclosure process was correctly followed on some homes. This could place a cloud on the title of such homes. In a short sale, there are no title challenges as the original seller signs away title at the closing.

It is for the above reasons that bankers are beginning to favor short sales over foreclosures.

Is a Short Sale or Foreclosure better for the Seller?

23 07 2012

Short Sales vs Foreclosures: the Seller

Posted: 23 Jul 2012 04:00 AM PDT

 This week, we are looking at the advantages of a short sale over a foreclosure from five different perspectives: the Sellers’, the Neighborhoods’, the Banks’, Prices and the Children. – The KCM Crew

Real estate professionals are handling an increasing number of distressed properties. Which is a better alternative for the seller – short sale or foreclosure? Here are the advantages of doing a short sale:

It allows a more dignified exit from the home.

In a foreclosure, an official eventually comes to the home and tells the occupants to leave – immediately. In a short sale, the seller knows the closing date and can prepare in advance for the move. In many cases, their neighbors, friends and family needn’t even know of their financial difficulties.

The seller could possibly avoid a deficiency judgment.

In almost all distressed sales, the bank can legally go after the seller for the difference between the loan amount and the selling price (known as a deficiency judgment). Most banks will release the seller from this obligation in a short sale process.

A short sale has less of a negative impact on their credit report.

Once a short sale is completed, the sellers begin to clean-up their credit report. The timeline can be much longer as a foreclosure proceeds through the process.

(For more on this go to: Short Sale vs. Foreclosure: A Short Sale Always Wins)

The seller can return to homeownership more quickly.

If a family allows the house to go to foreclosure, it may take 5-7 years to again qualify for a mortgage. In the case of a short sale, the timetable can be 2-4 years.

There is a ticking clock on tax relief.

There is currently legislation, the Mortgage Forgiveness Relief Act of 2007, ensuring that homeowners who received principal reductions or other forms of debt forgiveness on their primary residences do not have to pay taxes on the amount forgiven. This legislation is set to expire at the end of the year.

(For more information: Mortgage Forgiveness Debt Relief Act: Will It Be Extended?)

The Austin Real Estate Market is Looking Good

20 07 2012

Healthy Inventory, Rising Prices Indicate Strong Sellers’ Market

According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS®, the competition for Austin properties continues to increase as June 2012 became the 13th straight month of sales volume increases and the fifth straight month of price increases for Austin-area homes compared to the same month of the prior year. Read more.

Home Buyer Tips to Make a Wise Purchase Austin Real Estate

19 07 2012 Nicole Cooper 512.698.2393
REALTOR® Austin Real Estate Agent with Resident Realty
Nicole’s Home Buyer Tips to Make a Wise Purchase.
Feel free to email us a question or call now 512.698.2393

Resident Realty REALTOR®, Austin Real Estate Specialist Nicole Cooper, 512.698.2393

1607 Kenwood Ave., Austin Texas

19 07 2012, Nicole Cooper 512.698.2393
REALTOR with Resident Realty
Sold: 1607 Kenwood Ave, Fabulous real estate in the Heart of Travis Heights in 78704; own this little oasis tucked away on a private street close to Soco, Stacey Park, Auditorium Shores, restaurants and shopping.
Updated bungalow with 2 bedrooms and 1 bathroom. Energy efficient windows, remodeled bath, screened in porch, workshop/office/studio and storage.

Call 512-698-2393 or visit to schedule a preview.

How to Borrow Money to Buy AND Fix Up your new home at the same time

19 07 2012

203(k) – How It Is Different

Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made.

When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan. Nicole Cooper 512.698.2393
REALTOR® Austin Real Estate Agent with Resident Realty
You’d like to buy a home but don’t have the money to fix it up. The 203k financing program may be your answer.
Feel free to email us a question or call now 512.698.2393

Resident Realty REALTOR®, Austin Real Estate Specialist Nicole Cooper, 512.698.2393

The Closing Process When Buying a Home, Austin Texas Real Estate

19 07 2012 Nicole Cooper 512.698.2393
REALTOR® Austin Real Estate Agent with Resident Realty
You’re past the option period, now what? The closing process presented by Nicole Cooper.
Feel free to email us a question or call now 512.698.2393

Resident Realty REALTOR®, Austin Real Estate Specialist Nicole Cooper, 512.698.2393

Hyde Park Neighborhood and Homes, Austin, Texas

19 07 2012

Search for Hyde Park properties here…
Nicole Cooper | | 512.698.2393
REALTOR with Resident Realty
Hyde Park REALTOR Nicole Cooper explains the Hyde Park neighborhood in central Austin. Hyde Park neighborhood has turn-of-the-century architecture, tree-shaded streets and unique Austin businesses. It is located just north of the University of Texas campus. Check out this video to know if this neighborhood is the right one for you. Call Nicole with Hot Properties ATX for more info. (512) 698-2393