KW Realtor Training: This Month in Real Estate Newsletter for December 2009
Keller Williams Realty Realtor Career Training
This Month in Real Estate
December 2009
Small steps to economic recovery continued last month. Among the positive readings was the report of a third quarter GDP growth rate of 2.8 percent, which followed four consecutive quarterly declines. This advance comes in well ahead of that of our Canadian neighbors, whose economy was once anticipated to be the first country out of recession, and by significant margin. Canada posted marginal 0.4 percent growth. Unemployment fell in November for the first time since April 2008. A strong rebound in home sales activity from year ago levels also points to a firmer stabilization.
With the extension of the $8,000 federal housing tax credit into spring 2010, first-time buyers will now have an additional few months to purchase their dream homes. Expansion of the income restrictions now gives possibilities for higher earners to participate too. And the $6,500 tax credit now available to established homeowners with five consecutive years or more in their homes broadens the opportunity landscape. This in turn will allow the housing market more time to find a more solid footing on a sustainable recovery.
Although economists continue to debate the overall shape of the recovery, it is widely agreed that the U.S. economy will take a long time to rebound. Unemployment is expected to remain high for several quarters and the number of underemployed is expected by some economists to remain a drag on growth prospects. On the brighter side, according to some economists, a slow and steady growth will likely fair better for the long-term well-being of the economy. Slower, sustained growth can help prevent dangerous asset bubbles, like the recent housing and technology bubbles, from growing and bursting.
This Month in Real Estate Video Reports & PowerPoints:
This Month in Real Estate Video Report and Powerpoint For Canada Market – December 2009
This Month in Real Estate Video Report & PowerPoint For U.S. Market – December 2009
This Month in Real Estate Newsletter and Powerpoints for November 2009
This Month in Real Estate VIDEO Report For Canada Market: November 2009
This Month in Real Estate (U.S. Market) SPECIAL EDITION: The Updated 2009 Homebuyer Tax Credit
Topics For Buyers & Sellers
First Time & Distressed Property Home Buyers
What are other first time buyers doing?
The tax credit extension and expansion in November has fueled new discussion about home buyers and the housing market in 2010. Here’s a look at first-time buyers in 2009.
- The median age is 28, significantly down from where it was in 2005 at 32.
- Location or Neighborhood was the No. 1 “must-have” for 36% of buyers.
- 2 out of 3 sellers paid at least part of the buyer’s closing costs.
- 76% used their own savings for the down payment.
- 1 in 4 had help from their family for the down payment.
As elevated levels of distressed properties are expected to continue for the next few years, here is a glimpse of buying a distressed property:
- 27% of foreclosures* were purchased by investors.
- 47% of distressed* properties were purchased by first-time buyers.
- 89% of those first time buyers that purchased a distressed property were motivated by the $8,000 tax credit.
- 7 in 10 agents have seen an increase in multiple offers.
- Approximately 3 out of 5 agents discuss the differences between buying distressed and traditional properties at the buyer consultation.
* Distressed – Short Sale and REO, Foreclosure – REO Only
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