Now the market has shifted. The strong sellers’ market is a thing of the past and it is the sellers who are jumping through hoops. Buyers are calling the shots with offers that include home inspections; requests that closing costs, homeowner association fees and inspection fees be paid by the seller; decorating allowances; home improvement; and prices far below the asking price. 

So why are buyers hesitating? Fear of a tanking economy, falling home prices and job instability are concerns for many potential home buyers. But if you are financially stable and plan to stay in a home for at least five years, there are 5 top reasons to buy a Virginia Beach home in 2009: 

1. Homes are affordable.

According to the National Association of Realtors‘ housing affordability index, homes were more affordable in December than at any other point since the group started the index in 1970. The affordability index is a measure of the relationship between home prices, mortgage interest rates and family income.

A recent report from Moody’s Economy.com predicted that house prices will stabilize by the end of this year. The Office of Federal Housing Enterprise Oversight’s Web site has a house price calculator that can help. Visit the calculator. 

2. There are lots of homes to choose from.

The slow down in the housing market has caused homes to stay on the market longer, creating a huge inventory. There was a 9.6-month supply of unsold existing homes in January given that month’s sales pace, according to NAR. 

A large inventory gives buyers more selection, driving down prices. As buyers start to jump back into the market, the inventory will shrink and cause prices to start going back up. The time to get the best deal is before most buyers buy. 

3. Builders are offering perks.

New home builders are offering price reductions, free upgrades and other perks such as free appliances, homeowners’ fees being paid, lower interest rates decorating allowances. Once their inventory shrinks, these perks will go away. 

4. Interest rates are at historical lows.
Lenders are not lending as freely, but if you have good credit and the needed down payment, mortgage interest rates are historically low and hovering around 5 percent. 

5. There is an $8000 tax credit

If you are a first-time Virginia Beach home buyer, you will qualify for an $8000 federal tax credit if you buy before December 1, 2009. Unlike the previous tax credit offered in 2008, this does not have to be repaid. Extra money comes in handy when buying a home. 

Trying to decide if buying a Virginia Beach home in 2009 is right for you. Give me a call. I’m glad to review your situation with you.

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It looks as if our legislators in Washington are finally making positive steps toward fixing the house mess by including housing legislation in the Economic Stimulus Bill.

Yesterday, the Lieberman/Isakson Amendment was included in the senate version of the Economic Stimulus Bill by a unanimous voice vote. This amendment would provide a Tax Credit to all home buyers at the rate of 10% of the sales price up to a limit of $15,000. The credit would be available for a one year period to all purchasers of primary residences.

Now, the senate expects to debate Amendment 353, a proposal by Senator John Ensign (R-NV) that would provide 30 year fixed financing at a rate of about 4%, for anyone purchasing a primary residence.

If these two provisions are included in the final passage of a stimulus bill they could have a positive impact on Virginia Beach real estate.

Dave Liniger, co-founder of RE/MAX International has this to say about the proposed legislation: 

“I feel that these provisions represent real economic stimulus. They will put money in the hands of millions of homeowners, increase sales, stabilize home values and add more revenues to local communities in the form of property taxes.

I urge each of you to contact your senators and representatives to let them know that you believe these provisions are essential components of any stimulus bill. You can go to the official Senate http://www.senate.gov and House http://www.house.gov web sites to locate the email and phone number of your legislators.”

This has passed the Senate, but the entire bill does need to go back to the House, and be signed by the President. There could be many changes before this happens, or not pass at all.

But is it light at the end of the tunnel for Virginia Beach home buyers and would help the housing crisis immensely as you can imagine.

Visit ButlerTeamHomes.com to learn more about Virginia Beach real estate.

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Not so long ago helping the environment meant recycling plastic and newspapers, but today it has evolved into “green” thinking and extends to our homes and our living environments.

According to a recent NAR survey, nine out of 10 Realtors® said home buyers are interested in energy efficient features of green homes and the potential cost savings of such features. An overwhelming 90 percent agreed there will be even more interest in green building practices a year from now.

Results of a Harris Interactive poll by Move, Inc. show potential home buyers consider “green” building features more important than luxury amenities. Almost half of the adults surveyed (49 percent) said features such as solar panels or energy-saving appliances were “important,” compared to just 31 percent who rated luxury amenities important.

Ninety-three percent of all home buyers are not willing to pay more for green or energy efficient features when building a home, according to a recent independent study commissioned by The New York Times Customer Insight Group.

However, a recent survey from Green Builder Media reports U.S. and Virginia Beach home buyers are willing to pay a premium for more environmentally friendly, green-built homes.

More than half of home builders surveyed (250 residential builders across the U.S.) said that buyers are willing to pay a premium of between 11-25 percent for green-built homes. The same builders report that the average green home buyer is between the ages of 35-50 with a college degree and fair understanding of green products.

Despite the conflicting statistics, the U.S. Green Building Council believes thinking “green” is an industry trend, rather than a passing fad; not only does it save on energy costs, it is better for our overall health and the environment as a whole.

Interested is buying a Virginia Beach home with environmentally-frienldy “green” features? Visit our website, ButlerTeamHomes.com or give us a call at 866-222-0158 #550.

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As of July 14, 2008 they already made upfront MIP premiums risk based on credit scores but also increased the annual premium across the board.. Instead of the original plan of making FHA loans more affordable for potential Virginia Beach home buyers; the new legislation makes it more expensive.

High-level Details of the Housing and Economic Recovery Act:

Here are some key provisions of the Housing and Economic Recovery Act that most affect Virginia Beach home buyers:

1) Higher permanent loan limits for conventional conforming and FHA will become effective Jan. 1, 2009; the Act calls for limits to increase to a maximum amount of $625,500, depending on the metropolitan area. Note: The temporary limits established in March will expire on Dec. 31, 2008.

2) FHA floor limits will remain the same at $271,050.

3) The VA guaranty will increase.

4) Minimum cash investment for FHA loans will increase to 3.5%.

5) A moratorium on risk-based pricing for FHA loans will go into effect Oct. 1, 2008.

6) Seller-funded Down Payment Assistance Programs with FHA loans will be terminated Oct. 1, 2008. (Nehemiah, AmeriDream, etc.)

7) Condo processing for FHA loans will be streamlined.

Concerned how these sweeping changes will affect your ability to buy Virginia Beach real estate? give us a call, 866-222-0158 #550. We are glad to talk with you about your situation.

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