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.

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.

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.

The Stewarts -- First Time Homebuyers, no credit

Here’s a problem that you don’t think about very often…  Boy meets girl.  Boy and girl fall in love.  Boy and girl find a nice apartment together and pay all of their bills on time.  Happy couple opens no credit cards and pays cash for cars because girl’s Dad told them the horrors of consumer debt.  Happy couple decides it’s time to buy a house.  Sad couple is declined for loan because they have no credit.

No credit is just as bad as bad credit!

So what do you do if you find yourself in this unfortunate predicament?

First step is to open a credit card and buy your gas and groceries on it.  Pay it in full every month.  Maybe get a card with an airlines frequent flier reward program — that way you can rack up a few miles while you use the card.  By doing this, you will begin to build credit — good credit!

Second, you make sure that your Realtor has provided you with a great referral to a competent lender who can help you deal with this strange situation.  I use Matt Eversgerd at First Integrity Mortgage Services.   Matt and I are working a transaction right now with the Stewarts — they want to buy a home in Webster Groves.  We found them a cute house in Tuxedo Park– $199,000.  Upon pulling credit, this young couple has no scores.  Matt is in the process of building a credit score for them.  Because First Integrity Mortgage Services has in-house underwriters, they are able to put together a decision quickly.  If your lender’s underwriting team is located off-site (which is how 95% of mortgage brokers operate), files have to be mailed back and forth for approvals.  Matt will be able to get the Stewarts approved for this house.  He has never failed me.  

Third, you need to have a Realtor who has dealt with these types of problems before.  Not all Realtors are good — in fact, the typical Realtor only sells 2 or 3 houses a year.  They cannot possibly have the experience necessary to deal with problems that pop up — and problems often pop up!

My team of Realtors has decades of experience, we sell a ton of houses, we’re ranked in the top 1% of Realtors in St. Louis.  Call me.  314 267 2636

2657 S. 59th Street, St Louis, MO 63139 is a charming all-brick 2 bedroom on the hill. New kitchen updated with countertops, maple cabinets, backsplash. Stainless appliances including built in microwave. Unique inlaid hardwood floors (see pictures!). The updated bath is light and bright with a vintage herringbone tiled floor. The attic is finished and features a walk-in closet, exposed brick walls and new frieze carpeting. Enclosed sunroom overlooks large, fenced yard. Newer roof with architectural shingles. One car detached rear entry garage.

Home is conveniently located off Hampton and is a short drive to Forest Park, the St. Louis Zoo, Steinberg Skating Rink, the St. Louis Science Center and more.  

For more information and pictures, please visit you St. Louis real estate Listings site.

Thanks for visiting my blog.  This post shows our latest listings.  Of note are the “less than 200k” properties that are perfect for your first-time homebuyer referral.  You can also sign up for an auto-email of the latest St. Louis county real estate listings.  

First time home buyers are eligible for up to $8000 in tax credits for homes purchased before 12/1/2009.  This tax credit can be made on the 2008 return by filing an amendment.  In other words, you can get the credit mailed to you now!  See this website for information about the St. Louis first time homebuyer federal tax credit.

Also of note are a number of properties in the Mason Ridge School District:

1.  21 Broadview Farm Road, 63141
2.  23 Broadview Farm Road, 63141
3.  1608 Foxleigh, 63131
4.  1 Hawthorne Estates Drive, 63131

Call Russell Nolting at 314-267-2636 for more information.