As of April 1, 2010, the Federal Trade Commission changed the rules governing free credit reports.  Anyone advertising free credit reports must disclose to consumers that they have the right to a free credit report from AnnualCreditReport.com or they can call 877-322-8228.  This is the only authorized sources recognized by the federal law.

This new rule was enacted to eliminate consumer confusion and stop deceptive marketing of those who offer credit reports as free but with the consumer having to spend money on monitoring of credit or other products and services.  Also, Equifax, Experian and TransUnion are not allowed to advertise for products and services on AnnualCreditReport.com until after the consumer has received their free credit report.

Inventory Correction:
The housing market is under going what’s referred to as a “market correction”. This doesn’t mean the market has crashed, simply that it is correcting itself to where it would have been had we not experienced the intense upswing of the “seller’s market” that started in 2002. With many sellers being more cautious before putting their home on the market, this has lead to fewer properties entering the marketplace.

Mortgages:
Interest rates are still at a 45 year low. This allows buyers the ability to purchase more home for their money.

Tax Credit:
First time buyers can still receive an $8,000 tax credit and current home owners, who have owned for at least 5 years, can get up to $6,500 when they sign a contract by April 30, 2010 and go to settlement by June 30, 2010. This credit is extended for one year for qualified deployed active duty military.

Property Values:
Property prices have dropped to what we were seeing in 2005 and are starting to stabilize. Property values over the long term have always risen. Real estate is still one of the most long term solid investments in the U.S.

Less Competition:
There are fewer buyers looking to purchase now then there were in 2006, therefore, there is less competition and a better chance to get a good buy.

Make buyers and Realtors feel welcome and don’t assume they can see what you see. When they walk in your house they should see lots of light. Light makes you feel happy, warm and welcome. If your home lacks nature sunlight, turn on lots of artificial lights. Hire a professional Stager. They may recommend furniture placement. Which, can make better use of a room and make it feel larger. They may also select paint colors and other options to lighten up a home. If you can’t afford a Stager go to model homes and get ideas. Each room should have a define use and should be neat and organized. Take a close look at the outside of your home. If it’s not attractive outside buyers wont want to look inside. Pull weeds, add fresh mulch, trim bushes, plant or place flowers around the house. Power wash the outside of the house. Even if you don’t think it needs it. It could give it that extra spark. Depersonalize the house. Think like a buyer. Walk through your house as if a stranger were seeing it for the first time. Like selling a car. You would have it washed, wax and completely empty of personal items.

There are five states with no state sales tax.  They are Alaska, Montana, New Hampshire, Oregon and Delaware.  The other benefits of Life in Delaware:

• No personal property tax on boats, cars and etc.
• no estate tax
• no tax on Social Security  and Railroad Benefits benefits
• Taxpayers 60+ years old can exclude $12,500 of investment and qualified pension income, as well as out-of-state government pension income.  If 65+ you can deduct an additional $2500 (if you do not itemize)
• Ranked 8th as one of the most business friendly state  and ranked 7th as one of the most property tax friendly states (visit  http://www.taxfoundation.org/files/bp59.pdf )

• Delaware was one of four states that scored the best for having consistently low property tax rates. Also, their capital stock rate is either zero or with a low rate and maximum payment.

   

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  Delaware was one of five States that are more likely to promote economic growth  due to low rates for both the property tax collection per capita amount and effective percent of income. 

• Ranked 6th states that charge in proportion to base-period wages  

   

   

• State tax rates 2.2% > $2,000, 3.9% > $5,000, 4.8% > $10,000, 5.2% > $20,000, 5.55% > $25,000, 6.95% > $60,000

   

   

   

   

   

Hand-knitted and crocheted hats donated to patients at A.I. Dupont Childrens Hospital

Doreen Lucas and Denise Setchko of Keller Williams Realty Central Delaware donated 25 hats that Doreen and Denise’s Mother hand-knitted and crocheted.  The hats were for patients at the hospital and they were delivered before Thanksgiving.

A 84 - unit senior citizen housing complex was approved by the City of Dover Planning Commission on November12, 2009. There will be 30 townhomes and a 18-unit condominium buildings built. Maple Dale Club owners felt this was a necessary project to save the struggling establishment.
The housing project, will be known as The Villages of Maple Dale. It will be located on the southwest corner of the property, the condos will be built near to the club house on Maple Dale Road. The townhomes will be built along Kenton Road and part of the ninth fairway will have to be re-directed.

Dee and Doreen’s Team along with Keller Williams Realty At The Beach participated in the Milford Halloween Parade.

Those pictured (from left to right) Alex Rivera, Dee Hake DeMolen, May Shanaphy, Stephanie Johnson, Kimberly Rivera, Tabatha Moore and daughter Gabrielle, Dianne Richardson, John Purnell and John Shanaphy.  In the back (from left to right) Doreen Lucas, Carol Giampietro, Rich Flaim and Matthew Harvath.

Homes on the Market
Between, January 2000 to December 2005 the lowest number of homes on the market was in March 2004 for a total of 622 and it’s highest of 851 in November 2005. That’s an average of 675 homes on the market monthly, over a 5 year span.

In January of 2006 homes begin to climb from 916 to its all time high in August 2009 to 1883. That’s an average of 1567 homes on the market monthly, in a 46 month span. That’s a 232% average increase of homes on the market.

Homes Pending
January 2000 to December 2005 the lowest number of homes pending was in Dec 2000 for a total of 81, to a high of 262 in April 2005. That’s an average of 163 homes pending monthly and a 24% average of listings pending monthly over a 5 year span.

January 2006 to present, lowest number of homes pending was in Dec 2008 for a total of 51, to a high of 230 in March 2006. That’s an average of 139 homes pending monthly and a 13% average of listings pending monthly over a 46 month span.

Homes Sold
January 2000 to December 2005 the lowest number of homes sold was in Jan 2000 for a total of 56, to a high of 268 in August 2008. That’s an average of 158 homes sold monthly and a 23% average of listings sold monthly over a 5 year span.

January 2006 to present, lowest number of homes sold was in Jan 2009 for a total of 58, to a high of 234 in June 2006. That’s an average of 135 homes sold monthly and a 9% average of listings sold monthly over a 46 month span.

IRS Home Buyer Tax Form

Congress extends the $8000  Home Buyer Tax Stimuls plan to April 30,2010. There are some changes. For first time home buyers it is still the same. To qualify as a first time home buyer, the buyer may not have had an interest in a principal residences in the past three years prior to purchase and they can receive the $8000 tax credit. First time buyers have till April 30, 2010 on the date of enactment for terimnation of credit.

A move up buyer can now receive a $6500 tax credit. If they have used the home sold or being sold as a principal residence for 5 of the previous 8 years. Their contract to purchase the home must be effective on/or before April 30, 2010 and will have till July 1, 2010 to close.

This becomes effective at the Presdients signing.

One way to determine if prices are headed up or down is to watch the supply of inventory.  A balance market has five to six months of supply.  Monthly supply is determined by the number of homes sold in a given month divided by the number of homes on the market.  For example, if there are 1000 homes on the market in your area and 200 sold in a month there would be 5 months of inventory.  Based on this finding, prices would be holding steady. 

If there was less then 5-6 months of inventory you would be in a seller’s market and prices would climb.  With a low supply of available homes, buyers would have to outbid each other to get the home.  This is what drives inflation.

It there was more then 6 months of inventory you would be in a buyer’s market and prices would drop.  With an abundance of homes available, seller’s would have to compete with each other causing prices to fall.

Economical factors can also play into which direction home prices go.  According to Realtor.org, ”Traditionally, the national average sales price of a home is two-and-a-half times the average household income.”  During the boom in the real estate market this reached four times the average income.  With unemployment rising, prices may drop more to get us closer to the traditional average.  But the good news is we are getting closer to the two-and-a-half time average.