As has been the case for several months, there is a bit of good news – the sales volume (number of houses, condos, etc., which have sold) has increased for the seventh month in a row, year-over-year. Unfortunately, sales were not up month-over-month; in December of 2008, there had been 112 sales of single-family residences in Santa Cruz county; in January ’09, that number had sunk back down to 79. … The important thing to look at, I feel, is the year-over-year gain or loss, and this year, sales were up a whopping 21.5% from January 2008. … If you watch TV or listen to the radio, you may have heard a commercial or two from the National or California Association of Realtors telling you this is a great time to buy , that there are a lot of homes for sale. … There are not many homes for sale at all – the amount of inventory is down 21.6% from January a year ago, and inventory has been declining for nine straight months.
national association of realtors
The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008). FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program . … The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008). … Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members.
For example, we were doing an exercise on calculating the rate of return on an investment in a home purchase – you buy it for this, you sell it for that, and assuming a modest 3% yearly increase in value, at the end of 7 years, you have made yourself a mint. Except, of course, they left a lot of figures out – like the cost of sale, repair and maintenance costs, the money you spent paying your mortgage above what it would have cost to rent it that whole time, etc. Putting that aside, though, they came up with their “profit” figure, and said, “but wait, that’s an after-tax number, if you had figured that as pre-tax income, really you would be looking at $X!” To figure out $X, they took the gain and added 28% to it, because that’s the tax that you would have paid on it were it income.