We.ve seen a solid increase in St. Louis real estate sales this year.   Lawrence Yun, chief economist of the National Association of Realtors is predicting a 20% increase in home sales for the first half of 2010.  We can count on 2.6 million home purhcasers taking advantage of the credit.  Yun admits that his prediction is assuming that we will continue to see historically low interest rates of around 5.0 to 5.5% — for today’s rates contact my mortgage partner Matt Eversgerd of Stifel Bank at 314-620-7227.

Currently, the Fed plans to end its purchase of Mortgage Backed Securities.  We will see rates rise on this action.  But we shouldn’t see rates go through the roof — they will likely land in the high 5s.  The rate change from today’s 4.875 for 30 year fixed rate money to the likely 5.875% we will see in 2010, means that every $100,000 that you borrow will cost you an additional $60 per month.

For example, a $250,000 loan today has a principal and interest payment of $1324. If rates increase a full percentage point, as expected by mid-2010, that same loan amount will cost you $1480.

I’m optimistic about 2010.  Throughout this past year the St. Louis real estate market has had it’s ups and downs, but my sense is that our outlook is better than it was a year ago.

One of the reasons for my optimism…. During 2008 and 2009, while the overall St. Louis transaction volume sank by 30%, mine went up.  I’ve sold 80 homes during the 08/09 decline.  So, Nolting Real Estate is doing something right for St. Louis real estate buyers and sellers.  Check us out.

With a 98 to 0 vote, the senate voted to extend the first time homebuyer tax credit yesterday.  Moreover, the vote also calls for an expansion of the credit to current homeowners.

The details:

The current first time homebuyer tax credit is set to expire November 30, 2009.  This means that a closing must take place by this date.  In other words, the current credit is over.  Today’s the 5th of November.  With Thanksgiving just around the corner, it would be hard to put a home under contract today and confidently expect it to close before December.  It can be done, but it’s not a guarantee.

The extension calls for a credit to be given for all contracts written by April 30, 2010 and closed by June 30, 2010.  I’m not sure how that will be monitored if it goes in to effect.  In other words, I’m not sure how you could stop a buyer from back-dating a contract — we’ll just have to see.

Regarding expansion, the new credit — if passed — would allow existing home owners who have lived in their current home for 5 years or more to take a $6500 credit if they buy a new home.

Also, the Senate bill would raise the adjusted gross income cap to $125,000 for single filers and $225,000 for joint filers. The amount of the credit currently begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

Government spending is up.  Inflation will follow.  Where should you invest your money today?

CNBC.com reports that real estate is an excellent investment in this economic climate.  Values are down, inventory is high, deals are out there.

Inflation will make your investment appreciate faster!  That coupled with historically low interest rates points to a pretty safe investment.  Real Property, Real Returns – Winterizing Your Portfolio 2009 – Special Report – CNBC.com.

If you are considering an investment property in St. Louis, check out my St. Louis Home Buyer’s Search site.  There you will find everything on the market in the area.

If you’re interested in buying a St. Louis foreclosure property, give me a call and I’ll email you an updated list of available properties.

HUD Hints on Home Buyer Tax Credit – Realty Check with Diana Olick – CNBC.com.

“I am also aware of the strong support in Congress for doing more to support the housing market, including extending the First Time Home Buyer Tax Credit beyond 2009. At the same time, I am mindful that these proposals can be very expensive, especially at a time of significant budget deficits. I can assure you the Administration will work with Congress to fashion appropriate and effective home buyer incentives, mindful of both their benefits to stimulating new demand and their costs to the American taxpayer.”

Does concern over the deficit and expense of the First Time Home Buyer tax credit mean that we are going to lose this credit.  St. Louis home buyers need the credit.  But at what expense?

Attention first-time homebuyers:  Do you realize that the $8000 ObamaGift expires on December 1, 2009?

You must CLOSE on your first home on or before November 30, 2009.  So you need to have it under contract no later than November 1.  That’s less than 3 months away!

Sure, maybe the credit will be extended.  But maybe it won’t.  Do you want to miss this gift?  When was the last time someone plunked 8 grand down on your desk?

If you want to search for your next home, please visit my St Louis home listing resource.  Or, give me a call at 314 267 2636.

http://www.TopStLouisHomes.com

http://www.TopStLouisHomes.com is the perfect place to search for your next  St. Louis home.  This website has a direct link to the St. Louis MLS, which means searches performed on TopStLouisHomes.com are identical to those that Realtors use when they are looking for you.

You can visit our MLS search tool any time and will not be required to sign in or provide any personal information.  However, should you need additional help, call Russell Nolting at 314-267-2636, anytime.

Happy house hunting!!

Tower Grove South 4 bedroom/ 1.5 bath

4 Bedroom/1.5 bathroom, all brick, updated bungalow in Tower Grove South located at 4108 Wyoming, near Morganford shopping and restaurants. Many updates including new furnace and A/C, new siding (accent). Kitchen has refinished cabinets, new counters, new appliances (gas range). Baths have new vanities, new ceramic. Wood floors refinished in 2007. Living Room, Dining Room and Kitchen are open to one another and feature hardwood floors, arched openings and lots of windows/natural light. Freshly painted walls and moldings just completed. 2 nice bedrooms on main level with full bath. Upstairs are 2 enormous bedrooms. This home has tons of closet space including cedar closet! Lower level is dry and partially finished — great family room space. Large, fenced, level yard backs to beautiful church — very private. 10×14x10 new, metal storage shed stays with the house. Home Warranty incl. Typical Bills… Gas Summer — $60, Gas Winter — $125, Electric (Budget) — $63, Sewer — $35, Water $70/3 months.

Just listed for $149,900.  To schedule a showing, please contact me at 314 267 2636.

Contary to popular belief the first step in buying a home in St. Louis is not calling your favorite Realtor and asking to see a bunch of properties.  The first step is to get approved for a loan.  

Here’s Why…

Getting approved for a loan takes more time today than ever before.  A good offer in this economy has a quick closing date.  In many cases, I can save you $1000s of dollars if you are willing and able to close soon.  Lots of the properties I show are vacant.  The sellers are anxious to get a contract and close.  But if you haven’t applied for your loan with your lender, you cannot close quickly. 

The St. Louis Mortgage lender you choose can give us a good feel for your “credit-worthiness” with just a short phone call and a credit check.  But he cannot give us a final decision unless you have submitted support documents that back up your financial story.  

I’ve been working with a young couple for a few weeks that has a number of student loans.  In order to qualify, these student loans need to be placed in deferment.  Rather than potentially wasting my buyer’s time (and mine) looking for houses, we need to get the loan approved.  Supporting documents for the deferment must be put in place.  

The security of having a full credit approval allows the buyer to shop with confidence.  Further, it strengthens any offer put on a property.