As we enter 2010, I realize how quickly the past year has gone! In the Bloomington area the real estate market was far better than one might think from listening to the national coverage. Always a local business, real estate in 2009 was more local than ever, with big differences from one neighborhood to another.
With fixed rate mortgages hovering around 5% those who bought in 2009 got excellent long-term financing. Although it is interesting to note that many buyers paid cash, perhaps thinking that a home is still a safe place to put money and a good investment too.
Besides the $8,000 refundable tax credit for first-time buyers (defined as those who have not owned a house in the past three years), there is now also a $6,500 tax credit for those homeowners who buy another house! You can keep the first house or sell it, as long as you move into the new purchase. I expect to see more long-term homeowners downsizing in 2010 as well as people who need more space buying up.
Finally, I know that we will continue to have homeowners unable to pay mortgages. What began as foolish lending has now extended to employment problems: long layoffs and job losses. In October, 2008, I spent three days in Orlando with the Certified Distressed Property Institute, gaining the CDPE designation. If you know of anyone having a problem making payments, please ask them to call me. There really are better alternatives than letting a house be foreclosed. Nationally the statistic is that 80% of homes that go to foreclosure go with no visible intervention at all. What a pity! It really is a community problem and together we can make a real difference!
Sincerely,
Jeanne Walters
