Thought you would be interested in the latest news on our current market conditions. While, we noticed more buyer activity with phone calls, email inquiries and increased showings on our listings during the month of January - the actual report of sales stayed the same as the previous month of December. We believe this is a positive sign of some stability in our Hot Springs market and we'll start to see the sales begin to rise again in the spring. We are also experiencing the normal trend with an increase in sellers placing their homes back on the market and increasing the inventory levels.
Click here for the detailed report.
The Clock is Ticking...
Extended and Expanded Tax Credit Expires 4/30/10
For prospective buyers who are on the fence about making a home purchase, the next few months represent a countdown of sorts as huge tax credits are about to expire. Here are important details for you to know:
Tax Credit for First-Time Home buyers
First-time home buyers may be eligible for the tax credit. The credit is 10% of the purchase price of the home, with a maximum available credit of $8,000. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Tax Credit for Current Homeowners
The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
What Are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010. Those in the military do have some special extensions on the time lines available.
What's So Great About a "Tax Credit"?
The benefit of a tax credit is that it's a dollar-for-dollar benefit, rather than a "tax deduction", or reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time home buyer who qualified for the entire benefit were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.
Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little or no income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!
Higher Income Caps
The amount of income someone can earn and qualify for the full amount of the credit has been increased. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible. Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.
It's also important to note another upcoming deadline as the Federal Reserve winds down a program that has been keeping home loan rates artificially low. The fact is that the lowest rates of 2009 were driven down to their attractive levels because of the Fed's Mortgage Backed Securities (MBS) purchase program, which the Fed once again emphasized in its January 27, 2010 Rate and Policy Statement will end on March 31, 2010. As the Fed's program winds down and ends, rates could rise over time since MBS will have less support from the Fed.
If you have any questions regarding the tax credit, please pick up the phone and call us. We're here to help you take advantage of one of the greatest opportunities home buyers may ever have.
Hot Springs Market is Heating Up
A Winter Chill ... not just in temperatures, but also in home sales in Garland County has taken over for a while. Click here for the full details on the latest market statistics for December, and take a look at the overall picture of home sales for our area over the last few months:
However, the good news is - The winter chill may be gone for now. Buyer Activity has picked up significantly as of January 1, 2010. As of the first of the year, we have been extremely busy, showing properties to qualified buyers in town, and many of our listings are getting increased showings from other Realtors. The showings are ranging from $25,000 to $5,000,000, which is a wonderful sign (not just the low-end price for first-time home owners - which has been the norm for a while). Buyer email inquiries are HOT, with many of the buyers that we've been working with for many months are now starting to say that "I may have my home sold, and I'm getting ready to move to Hot Springs now".
While this sign is very encouraging, let's make sure that we don't take it for granted and sit back and relax. Now's the time for sellers to get busy. Think like a buyer -- spruce up your home and make sure you're prepared for a showing appointment at all times. Best wishes for a wonderful 2010 from the Kennedy Team!
This time of year, homeowners often wonder if it is wise to have their home on the market during the holiday season. There are several advantages for selling a home during this time of year. 1) Statistics show that there are fewer homes listed during this time; therefore, there is less competition for home sales, and a home has the potential to receive more exposure. 2) Buyers may have more time off from work to shop for a home during this time and are likely to buy quickly in order to move in before the holiday – or – they may have accounting/tax reasons for closing on a new home before the year-end ... and we have noticed a new flurry of buyers over the last week 3) Interest rates are still very low, the $8,000 first-time home-buyer’s tax credit has been extended, and an additional $6,500 tax credit is now available for other home buyers.... which is an awesome combination for qualified buyers!
In addition, we just reviewed the market statistics for our area, and we would like to share it with you. At the end of November, the total number of active single family home and condo listings on the market in Garland County was 1,307 – a significant decrease from the two previous months (Oct – 1,355 | Sept – 1,423). We consider this positive news for sellers, as we watch more and more sellers continue to withdraw their listings from the market during this time of year. However, while the inventory is steadily decreasing, we also noticed that the home sales dropped slightly in November to 59 total units sold in Garland County during this month, as compared to 78 total units sold in October and 74 total units sold in September of this year. For more details, please click here to review our monthly market update or you may review this report anytime, by clicking on the “Get the Latest Market Update” button on the lower left-hand side of our website.
Just finished reviewing last month's statistics for home sales in Garland County, and thought you would be interested in an update. Home sales stayed exactly the same in October as compared to the previous month with 66 total sales. The condominium sales rose slightly in October with 12 total condo sales, as compared to only 8 total sales the previous month.
While the total number of home sales rose only slightly, the better news is that the inventory level dropped significantly - from 1,423 to 1,355 total homes actively on the market. This tells us that some of those sellers "that really don't have to sell" may have taken their home off the market for the fall - which in turn helps reduce the competition for our sellers, and also helps balance the market. Although the scale is still heavily tipped in favor of the buyers at this time, we consider this a positive sign of the market.
Please click here for the full details of our local market. We prepare this report monthly and post it on our site, so you may view the report anytime by visiting www.BestofHotSprings.com and then clicking on the "Get the Latest Market Update" button on the left-hand side of the menu.
There is some positive news brewing these days for the real estate industry, and we're keeping our fingers crossed that things continue to move forward in this direction very quickly. We are receiving news that the original credit in the stimulus bill for the first-time homebuyers may be extended, AND the extra good news is that the bill may offer additional assistance to "move-up" buyers.
The current first-time homebuyer credit is set to expire at the end of November and the Senate sources told CNN they have tentatively agreed to extend that $8,000 credit for first-time buyers until the end of April. In addition, they are adding a $6,500 credit for some current homeowners who buy a new residence by then. For the full article from CNN, Click here.
p.s. Remember to set your clocks back this Sunday, November 1st.
| With the second most decorated holiday right around the corner, we thought it would be a great time to discuss a home staging issue that comes up each year... Should a home seller put up holiday decorations?
Typically, sellers should use VERY little or NO decorations for ANY holiday. WHY? Well, for this simple reason... when selling a property the house is to be the "star" not the stuff.
It is a fact that a house holds the greatest appeal when it is neutral. This makes it easier for a buyer to map their lives into a house that is for sale. If a holiday is not a part of the buyer's life, then the decorations are no longer neutral and they then become a distraction.
But even if you suspect that most likely the buyers looking at your home do celebrate the holiday you want to decorate for... the decorations can be a distraction. Holiday decorations, by design, are made to stand out from the ordinariness of our lives and to be looked at. The time a buyer allots to look at a home is short and precious... having it used up looking at decorations is not the best use of it when in reality the house is what they have come to see and are considering buying.
So, if you insist on putting up decorations for upcoming holidays, we strongly recommend that those decorations then be taken down immediately. Ideally, the day after the holiday.
These home staging tips are compliments of Center Stage Design. Let's work together at setting the stage for selling your home. |
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Hamilton Pointe condominiums are still a hot commodity in Hot Springs. This unique community has all the amenities that attract investors ... prime location, flat ground with very few steps, panoramic lake and mountain views, covered parking, covered boat docks, strict covenants, gate guarded entrances, pool, large private outdoor decks, and great floor plans.
If you currently own one of these homes at Hamilton Pointe, and you are thinking about selling your home, we would love to talk! We have a buyer who is very interested in purchasing a home in this neighborhood, and hopes to make a purchase before the end of the year. Please call us today! 501.655.6247 Jeff or 501.276.4446 Debi.
5iz9gm7nyj Claiming Blog on Technorati.... please ignore the post.
Thought you would be interested in a market update. As we reviewed the market statistics for the month of July, here’s what we noticed – the total number of single family homes sales increased in July with a total of 77 sales during that month – which was a significant increase over June’s total number of sales at 53. While this seemed to be a sliver of good news, the current inventory level of single family homes actively on the market for sale is at 1,111. Yes, this means there’s huge competition out there for our sellers, still making it a strong Buyer’s market. In this kind of market, competitive pricing seems to be the biggest factor.
While single family home sales picked up in July, the condo market stayed about the same. There were a total of 13 condos that sold in July (which was about the same number as the previous month). The total number of active condos on the market is 384. While the summer months are normally the peak season for condo sales – we are seeing this market suffering the most with the lack of expected sales during this peak period, which is also having an affect on the sales prices. Unfortunately, we are seeing the values for waterfront condos continuously decreasing this year.
Our website tracking reports are also very good indicators of our current market, and we are pleased to report that we had a record breaking number of total hits for the month of July. This was the first month that we have received hits over 100,000 and the total figure was 122,647 total hits for that month. This figure tells us that the real estate market is very active – with buyers hovering, reviewing, researching, and continuously thinking about the real estate market. While this number peaked in July, the month of August has started to slide downward in hits. We’re hopeful that this is only part of the normal cycle that we see every year with summer coming to an end, vacations slowing down, and the kids preparing to start back to school. In a normal market in this area, we tend to see this three week slow down in August every year.
As we continue to watch the trends of our market, we’ll keep you posted. Click here for an overall view
The Kennedy Team of Trademark Real Estate, Inc. ranked No. 3 in the state of Arkansas in Residential Real Estate Sales Teams with $22.42 million in total sales in the Hot Springs area in 2008. Trademark Real Estate, Inc. ranked No. 10 in the state of Arkansas with $123.29 million in total sales in the Hot Springs area in 2008, as reported by the Arkansas Business Journal.
While the real estate market has shifted significantly to a buyer’s market and the lender guidelines have changed considerably, it's critical to provide a competitive edge for our clients. Advanced education, interactive web site, and good communication systems are the key elements for performing in a changing market. Every market goes thru cycles and the market shifts with the supply and demand concept. Being prepared means paying close attention to the indications of a shift, and being ahead of the shift instead of following the shift.
In a heavy buyer’s market, proper pricing to a must. The homes that sell are homes that are priced ahead of the shift. If the seller fails to price accordingly, they will end up chasing the shift downward, which could be much more costly with continuous maintenance fees, insurance, property taxes, etc. in a market that is volatile.
The Real Estate activity is starting to pick up slightly in Hot Springs. The web hits to our primary website at www.BestofHotSprings.com broke another record this week. This site received about 35,000 hits over the last 7 days. At this rate, we hope to hit 100,000 hits for the month of June which is another new record for activity. This means that we are receiving maximum online exposure to our listings at this time, and our marketing tactics are working.
While the market activity is increasing, it’s critical for sellers to take advantage of this peak in the real estate market, and capture the buyers while they are hovering around. Now this doesn’t mean your Realtor can do it alone …. If you’ve been putting off mowing the lawn, sprucing up the front entry, cleaning up the pool, or making those necessary repairs – please get moving now! There are tons of homes on the market now competing with your property, and it’s critical that your property stands out among the others.
While condition is critical, pricing is also another major factor! If you’re serious about selling – now is not the time to overprice your property. If your property is overpriced, the buyer may skip right on to the next one. The good news is that even though you may have to sell low at this time, you can also buy low on your next investment!
Let’s all work together and get things moving!
While the real estate market has seen many changes over the last couple of years, it appears that the luxury market is facing even greater challenges. While it has become more difficult to sell a luxury property, it is still possible and we are able to get it done!
Here’s the Bad News … The luxury market is facing increasing pressure, aggravated by credit market difficulties in the jumbo mortgage market. As a result, The National Association of Realtors reported that the share of home sales above $750,000 has fallen from 4.4% of total home sales in 2007 to a projected 2.3% of total sales in 2009 (NAR Projection based on partial year statistics).
Limited loan availability, higher than usual interest rates for jumbo loans (from 150 to 200 basis points higher than conforming loan rates), and stringent loan qualifying requirements have slowed sales of luxury properties. This has caused the national inventory level of homes priced above $750,000 to rise from 18 months worth in 2007 to more than 40 months worth as of the second quarter of 2009.
The lack of refinancing opportunities, fewer qualified buyers for luxury homes, a growing inventory of unsold luxury homes, and an economy in recession are all creating the “perfect storm” for luxury homeowners who need to sell and can’t. NAR also reported that as of October 2008, the foreclosure rate on jumbo loans was more than double the rate on conforming loans.
Here’s the Good News … While the above facts are creating greater challenges for us, as Realtors who consider the luxury home market our forte, we are steadily looking for options for our luxury home owners in selling their property.
In fact, we made a trip to the closing table today, representing the seller of a luxury waterfront home today, with a selling price of $1,100,000 here in Hot Springs.
One of the most critical bits of criteria for this home sale was the fact that this luxury home had all the basic necessities – meticulously maintained, in perfect condition, appraised for the selling price or better, and had a great location. Knowing that we had a great home that we believed would pass the inspection and appraisal process, along with the fact that we had an extremely savvy businessman as the seller, we began to look at options for him and his wife.
We knew that our seller’s first interest was to sell the home outright and move on. However, in this difficult market, we realized the chances of that were getting slimmer based on the facts mentioned above. We began to discuss the “trade” option to our seller, as we believed that this would be an option for our savvy seller to reach his final goal more quickly, while he sold his large luxury home, and then scaled down to a smaller, more sellable property.
We then reviewed all the previous potential buyers who had expressed any interest in the home, and believed that we had one that would love to buy the home at a fair price, but he also needed to sell his waterfront condominium (valued around $400,000) at the same time. We approached this buyer’s agent and began discussing a trade option, and to make a long story short … it was a perfect match.
The trading of real estate property does take some creative matchmaking skills and extra work, and it can be done as long as we have the two major ingredients … 1) Great property and 2) Savvy seller willing to consider options.
While it’s no secret that we’re facing a more difficult real estate market this year, we thought it was very important that we keep sellers up to date on some valuable statistics.
The “2008 Profile of Home Buyers & Sellers” provided by the National Association of Realtors again reports that 87 percent of buyers reported that they used the internet as one of several information sources during the buying process. The second most frequently cited information source was a real estate agent, used by 85% of buyers, and the third most popular source was yard signs at 62%.
The report then gives further statistics on “Where the Buyer Found the Home they Purchased”, and we would like to share the results with you for last year:
Real Estate Agent 34%
Internet 32
Yard Sign 15
Friend, Relative or Neighbor 7
Home Builder 7
Print Newspaper 3
Knew the Sellers 2
Home Magazine 1
Notice the above report shows the top three sources are Real Estate Agent, Internet and Signs. Then print advertising, such as newspaper ads & home magazines are at the bottom of the list, while Open Houses did not even rank on the list.
As we constantly review & evaluate our marketing strategies on a daily basis, we use the above statistics as the most important source for developing our marketing plan.
With today’s consumers spending more and more time, keeping up with the fast-paced world of technology, along with their growing interest in a “Green” world, we believe it’s critical to relate to the consumers of today.
Since the numbers tell the tale, INTERNET MARKETING is our top priority! While print marketing continues to lose with consumers, we are also making adjustments as we move forward. Our style of print marketing has shifted to a focus on being different and standing out! You won’t find us following the same style of the others, displaying little box pictures of a home in the homes magazine, just because that’s what everyone else does. We use a graphic artist to design an eye-catching full page ad, with the intent of the ad to bring the buyer to us and/or our website. This provides us with the best opportunity to capture the buyer and bring them directly to your home or our site for a tour of your property.
We all have the same goal, so let’s work together to beat the competition and get your property sold first!