Wade McGuinn and Fred Reichardt from Russell and Jeffcoat Real Estate have some tips for the agents in Columbia S.C.
Wade McGuinn and Fred Reichardt from Russell and Jeffcoat Real Estate have some tips for the agents in Columbia S.C.
The second week of Wades video blog is out and Wade is covering great advice for other sales professionals out there. Keep a great attitude, the market is what you make it, where do you stand with the market share homes are selling how many of them will you sell this month?
McGuinn Homes is pleased to announce a new addition to our weekly blog Wade McGuinn will be doing a series of video chats about Columbia S.C. real estate market trends and ideas to help your business. Along with Wade we will be going on remote to speak with local area real estate experts and interviewing them on what is going on in the wonderful world of real estate in Columbia S.C. So be on the lookout for more video blogs coming to you weekly.
In Time for Buying Season, Rates Reach Yearly Lows
The 30-year fixed-rate mortgage, a popular choice among buyers, sank even lower this week, matching its yearly low of 4.71 percent from January, reports Freddie Mac in its weekly mortgage market survey. Last year at this time, the 30-year fixed-rate mortgage averaged 5 percent.
Meanwhile, the 15-year fixed-rate hit a new yearly low of 3.89 percent this week. Last week, the 15-year fixed-rate mortgage averaged 3.97 percent. The 15-year rate averaged 4.36 percent last year at this time. It reached its lowest level on record in November when it averaged 3.57 percent.
The one-year adjustable-rate mortgage averaged 3.14 percent, down from last week’s 3.15 percent. Last year at this time, it averaged 4.07 percent.
“Weaker economic data reports reduced Treasury bond yields and allowed mortgage rates to drift lower for the third consecutive week,” says Frank Nothaft, Freddie Mac’s chief economist.
Source: “30-Year Fixed-Rate Mortgage Matches Yearly Low of 4.71 Percent,” Freddie Mac (May 5, 2011)
One of the biggest misconceptions in today’s housing market is that homes are
not selling. That is simply not true. Last month’s Existing Sales Report from the
National Association of Realtors (NAR) showed that homes were selling at
an “annual rate of 5.10 million”. That’s an average of 13,973 every day – 365
days a year!
And the monthly Pending Sales Report, which measures the number of houses
going into contract each month, has showed increases in six of the last nine
months prompting Lawrence Yun, NAR’s chief economist to say:
“Since reaching a cyclical bottom last June, pending home sales have posted an
overall gain of 24 percent and demonstrate the market is recovering on its own.
The index means modest near-term gains in existing-home sales are likely.”
We realize that 40% of the sales are distressed properties and that 22% of
buyers are investors. Yet, that still doesn’t negate the fact that homes are in fact
selling… and 60% of them are NOT foreclosures or short sales.
And Yun believes this up-tick will continue:
“Based on the current uptrend with very favorable affordability conditions, rising
apartment rents and ongoing job creation, existing-home sales should rise
around 5 to 10 percent this year.”
Homes are selling. You probably will need to offer a compelling price if you put
your house on the market. But if you do, it will sell.
Re-printed with permission from Keeping Current Matters, 3 May 2011
Buying a home is one of the smartest purchases you can ever make. One reason is that homeownership has many positive tax implications. The three most important sources of tax savings for home owners are the:
The deductions for mortgage interest and real estate taxes reduce the annual cost of homeownership by reducing the home owner’s tax liability each year. For example, a home owner with $10,000 in annual mortgage interest payments and real estate taxes and who falls in the 25 percent tax bracket could realize up to $2,500 in tax savings each year. Home owners who itemize their taxes can deduct from taxable income interest allocable to a first or second home for up to $1 million of mortgage debt and $100,000 of home equity loans. And most state and local taxes paid on homes are also deductible.
When the home is sold, the capital gain exclusion can again provide home owners a tax benefit. Under present law, sellers of a principal residence can exclude from taxation profits from the sale of a home, up to $500,000 for married taxpayers and $250,000 for single taxpayers. With capital gain tax rates expected to increase from 15 to 20 percent in coming years, these tax savings can be substantial.
Research by NAHB economists has estimated the tax savings for home owners for certain income and mortgage amounts. For a married couple with an income of $80,000 per year and an initial mortgage amount of $250,000, the tax savings from the mortgage interest and real estate tax deductions are estimated to save the couple more than $11,000 in the first five years of homeownership. Assuming the couple owns the home for twelve years, these savings grow to more than $25,000 over the time period. Combined with the capital gains exclusion, the total tax savings for the entire period of ownership exceeds $52,000.
For a couple with an income of $60,000 and an initial mortgage of $180,000, the five years tax savings total more than $6,000 and the total savings over a twelve year period are estimated to be more than $33,000
Staying on the cutting edge is crucial to a business by making sure from top to bottom that you and your employees are updated constantly is vital when handling so many people like McGuinn Homes does on a day to day bases. McGuinn Homes has implemented one of those systems with Google Apps the latest in communication solutions for large and small business’s, Google’s web-based messaging and collaboration apps require no hardware or software and need minimal administration, creating tremendous time and cost savings for businesses savings which McGuinn Homes can pass on to the customer.
“We’re in the beginning stages of our transition and learning about all of the great cloud based Apps that will help us better serve our homeonwers and customers”, Said Wade McGuinn, President & CEO of McGuinn Homes.”
So as McGuinn Homes moves forward in 2011 we look forward to assisting our homeowners and future homeowners in a more efficient and timely manner with the help of the Google Cloud.
Prospective home buyers have the choice of two types of houses on the market: resale or new.
Home buyers planning to buy a brand-new house or condominium often cite energy-efficiency, open layout, a warranty, and being able to select appliances, flooring, paint colors and other design elements as factors driving their choice.
But builders say that buyers can be drawn to a new house for reasons that aren’t so obvious. Below are a few more benefits of a brand-new home that you may not see in the sales brochure.
Building a Community Together
A brand-new community is one of the built-in benefits of many new homes. When families move in to a subdivision at the same time, often lasting bonds of friendship and neighborliness are formed right away. Nobody is the “new kid on the block,” and many home builders host community block parties in new developments to help owners meet and connect. Popular amenities like pools, walking trails and courts for tennis and basketball offer additional opportunities for interaction among neighbors of all ages. Often new communities are comprised of home owners in the same stage of life, such as young families or active retirees, so neighbors can get to know each other through carpools, PTA meetings, tennis matches or golf games.
Throwing a party in an older home can be a challenge because smaller, distinct rooms make it difficult to entertain guests in one large space. Builders are responding to today’s home buyer preferences with layouts featuring more open spaces and rooms that flow into each other more easily, like the popular great room. While you are in the kitchen preparing dinner, you can still interact with guests enjoying conversation in the family room without feeling closed off. The feeling of spaciousness in today’s new-home layouts often is enhanced the higher ceilings and additional windows that bringing in more light than you would find in an older home.
A Clean Slate
For some buyers, parking the car in a sparkling-clean garage or being the first to cook a dinner in a brand-new kitchen is part of the appeal of new construction. In addition, you won’t have to spend time stripping dated wallpaper or repainting to suit your own sense of style. You can create your own home décor from the get-go!
The advantages of being the first owner of a home extend to the outdoors. Instead of inheriting inconveniently or precariously placed trees, or having to tear up overgrown shrubs, you can design and plant the lawn and garden you want.
Outlets, Outlets Everywhere!
Homes built in the 1960’s and earlier were wired much differently than houses today. Builders had no way of anticipating the invention of high-definition televisions, DVRs and computers that we enjoy today — and the very different electrical requirements they would introduce. New homes can accommodate advanced technologies like structured wiring, security systems and sophisticated lighting plans, and can be tailored to meet the individual home owner’s needs.
Anyone who has ever lived in an older home can also attest to the fact that there are never enough outlets, inside or out! New-home builders plan for the increased number and type of electronics and appliances used by today’s families, so you can safely operate a wine cooler, Christmas lights or your computer.
To find new homes for sale in your area, contact the Home Builders Association of Greater Columbia.
While the housing industry celebrates New Homes Month in April, home builders want Americans to know just how much of a positive, direct impact residential construction has on the U.S. economy throughout the entire year.
“Home building is a key driver of the American economy,” said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. “By generating economic activity including new income and jobs, purchases of goods and services, and revenue for local governments, housing—which has historically accounted for around 17 percent of the GDP—can put America back to work.”
Economists at the National Association of Home Builders estimate that the one-year local impacts of building 100 single-family homes in a typical metro area include $21.1 million in local income, $2.2 million in taxes and other local government revenue, and 324 local jobs.
The employment effects extend beyond the home building industry. About half of the jobs are in construction, with the other 50 percent creating employment opportunities in industries ranging from production and sales of home furnishings to service providers such as real estate attorneys and landscapers.
Those 100 new homes also provide the community with additional, annually-recurring impacts of $3.1 million in local income, $743,000 in taxes and other revenue for local governments, and 53 local jobs.
The income earned from construction activity is spent and recycled in the local economy, and the new homes that are built become occupied by residents who pay taxes and buy locally produced goods and services. Those tax revenues help pay for a wide range of government services, including local school teachers, police departments and road repairs.
In order to accommodate population growth and necessary replacement of older homes, however, a long-run trend of approximately 1.7 million new homes a year is needed. Yet as of February 2011, the annual projection for housing starts stood at less than 500,000.
“The gap between actual home starts and what is required to fulfill America’s future housing needs represents more than 3 million jobs,” said Nielsen. “Restoring the health of the housing industry is a crucial first step in stabilizing our country’s path to economic recovery.”
During New Homes Month, home builders also bring attention to the advantages of newly-built homes, including safety, amenities, energy efficiency and floor plans to fit a wide variety of modern lifestyles. Combined with today’s near record-low interest rates and competitive prices, the current market offers new home buyers unprecedented opportunities.
Home buyers can access resources to help guide them through the home-buying process on NAHB’s website at www.nahb.org/forconsumers.
10- Each of the Lake Murray towers is 223 feet tall.
9- The 4th of July fireworks on Lake Murray can be seen from 4 counties (Richland, Lexington, Newberry and Saluda Counties).
8- Lake Murray was named after William S. Murray, who was an engineer involved in the design and creation of the dam.
7- The biggest fish ever captured on Lake Murray was a 298 pound sturgeon by four young men on April 28, 1936. It was nine feet tall.
6- In October 2011, the American Fishing Tour/Angler of the Year (AOY) Tournament will be held on Lake Murray and will generate 7,000 + room nights for the region.
5- In 2009, The Forrest Wood Cup event produced 113,670,570 (billion) media impressions and a $46,556,207 economic impact on the region.
4- The 4th of July Celebration on Lake Murray is now in its 23rd year of existence and over 125,000 people view the fireworks each summer.
3- Lake Murray is the #1 home to the Purple Martin Phenomenon. It is on Lunch (Bomb) Island on Lake Murray and is the largest, natural, roosting sanctuary in North America.
2- There are over 390 rooms on Lake Murray available for vacation rental.
1-150+ million people visit Lake Murray each year.