$8,000 ~ Used as a Downpayment!

As the loan programs continue to change, many Buyers are excited about the $8000 tax rebate, but do not have sufficent funds for a downpayment.  The National Association of Realtors has been working towards a more immediate solution.

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said on Tuesday “FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.” This translates into a non-secured loan for 1 year from the lender to the Buyer (read your lender’s fine print regarding exclusions).

To check your eligibility, visit the WRA’s First Time Homebuyer’s Website. Call me today to discuss your home-buying opportunities in Dane County!

What Will Spring Bring?

With all the uncertainty swirling just weeks before the spring market, we do know of a certainty that will definitely come with this year’s spring market. The Federal Reserve will cut the rate by at least a half point. This rate cut is expected to take place on March 18th, just 2 days before spring. There is a chance that the cut will be as large as ¾ of a point, although this is unlikely according to most expert analysts. When I heard the news of this cut, I started to wonder what the impact would be on the market. Will we get the jump in Madison real estate activity that we are all hoping for? What do you think? I would love to know your opinions. In a couple of days I will post an expert review of what all this could mean for you in the Madison real estate market, but in the mean time I would love to hear from you.

Madison Market Update – January in Review

There has been a great deal of Real Estate talk throughout the country and here in Madison with interest rates falling to a 2 year low.  Currently the 30 year fixed rates are averaging between 5.4% and 5.7%.  With a high level of inventory currently available there are some great opportunities out there for Madison first time home buyers and individuals wishing to buy second homes or investment properties.  Below is a quick recap of January’s activity.  If you would like to discuss how your property may fit into the current Madison market, give me a call, I’d love to discuss it with you and provide a full market report and complimentary market analysis of your property.

Madison Property Type

Total     Listings

Total New Listings

Sold Listings

Average Days on Market For Sold Listings

Average Days on Market For Active Listings

Average List Price For Sold Properties

Average List Price For Active Properties

Average Sold Price

Residential5771423279121$239,284$224,207$228,636
Condo44253771222$163,357$171,643$155,971
Residential Income180334118178$245,700$373,318$237,575

Madison Foreclosures

One of the biggest real estate headlines in 2007 was the high rate of foreclosures. RealtyTrac’s most recent foreclosure data was posted in late November with a 94% increase in national foreclosure filings over a 1 year period. Although real estate experts believe that the foreclosure rate likely peaked in 2007, foreclosures will still have an enormous impact on the real estate market in 2008. Through October 2007, Wisconsin was 22nd in the U.S. for total number of foreclosures with 2506. The 22nd ranking only assesses the total number of foreclosures which does present some misleading statistics. When comparing the number of foreclosures per households, Wisconsin is well above the average. The US average is 1 foreclosure for every 555 households, but we are recording 1 foreclosure for every 997 households. We are therefore performing well above the average when looking at defaulted mortgages. The U.S. Department of Housing and Urban Development (HUD) has put together some suggestions for avoiding foreclosure. This article contains some great information, as well as helpful resources that may benefit many home owners in fear of foreclosure in the Madison area. Over the next couple of weeks, I’ll be detailing how foreclosures will impact our Madison area communities; so please stay tuned for more information or please feel free to contact me to inquire how this foreclosure rate may affect you and your real estate plans.