Pending home sales rose in February, potentially signaling a second surge of home sales in response to the home buyer tax credit, according to the National Association of REALTORS ®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in February, rose 8.2 percent to 97.6 from a downwardly revised 90.2 in January, and remains 17.3 percent above February 2009 when it was 83.2. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, says the improvement is another hopeful sign. œThe rise in buyer contact activity may signal the early stages of a second surge of home sales this spring. The healthy gain hints home prices are continuing to flatten, he says. œWe need a second surge to meaningfully draw down inventory and definitively stabilize home values.

Pending home sales by region:

• Northeast: the index rose 9.0 percent to 77.7 in February and is 18.9 percent higher than February 2009.

• Midwest: jumped 21.8 percent to 97.9 and is 18.7 percent above a year ago.

• South: increased 9.2 percent to an index of 107.0, and the index is 17.5 percent higher than February 2009.

• West: the index fell 4.8 percent to 98.0 but is 14.6 percent above a year ago.

Source: NAR

Home Sales and Prices Inch Up:  

Inventory Expands

Huntsville, AL ” (March 22, 2010) ” February home sales rose slightly in Huntsville Madison County according to new data prepared by the Huntsville Area Association of REALTORS ® (HAAR). February home sales increased by 2.53 percent from January 2010 and decreased by 14.44 percent from February 2009.

At $169,900, the February 2010 single-family home median price “ the figure at which half of the homes sold for more and half sold for less “ slipped slightly by 1.22 percent from February 2009 and increased by 1.13 percent from the January 2010.

œHome sales and home prices continue to hold their own in Huntsville Madison County, which is a marked contrast to most of the country. Holding steady in today™s market is an indicator that the home buying season should show improvements over the previous year, said Sid Pugh, 2010 HAAR President.

Available Properties

The number of available properties (active listings) in February decreased by 1.65 percent compared to January 2010. There were 49 fewer listings compared to January 2010.

The Huntsville Madison County area month™s inventory of single-family homes for February came in at 7.4 months compared to the national month™s inventory of single-family homes, which was approximately 7.8 months in January according to the National Association of REALTORS ® (NAR).

Days on Market

The February 2010 Average Days on Market (DOM) fell to 111 compared to January™s 122 days but up by 3 days from February 2009.

Month™s inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market.

Real Estate Milestones in February

February home sales rose by 2.53 percent from January 2010 and decreased by 14.44 percent from February 2009.

At $169,900, the February 2010 single-family home median price  decreased by 1.22 percent from February 2009 and increased by 1.13 percent from the previous month.

The number of available properties (active listings) in February decreased by 1.65 percent compared to January 2010. There were 49 fewer listings compared to January 2010.

The February 2010 Average Days on Market (DOM) fell to 111 compared to January™s 122 days but up by 3 days from February 2009.

Home Prices Hold Steady

Home Prices Hold Steady

Huntsville, AL ” (February 17, 2010) ” Home prices held steady in Huntsville Madison County with homes sales returning to seasonal norms after record breaking activity in November and December according to new data prepared by the Huntsville Area Association of REALTORS ® (HAAR). January home sales decreased by 11.57 percent from January 2009 and 40.75 percent from the prior month of December which posted one of the highest sales on record for a December.

At $168,000, the January 2010 single-family home median price “ the figure at which half of the homes sold for more and half sold for less “ remained unchanged from January 2009 and decreased by 1.12 percent from the previous month.

œRecord breaking homes sales in the previous months were the result of many buyers anticipating the expiration of the home buying tax credit at year end prior to Congress extending the program. Those sales entered the pipeline in September and October and closed at year end. What we saw in January was a return to seasonal normalcy. The median price holding steady is an indicator of a well positioned housing market, said Oscar Gonzales, HAAR CEO.

Available Properties

The number of available properties (active listings) in January increased by 14.07 percent compared to December 2009. There were 367 more listings compared to December 2009, breaking the 6 month cycle of inventory contraction. “Maintaining a healthy inventory is important to avoid a shortage of housing that can lead to overinflated home prices. After two consecutive quarters of contraction, an increase in inventory is good and helps keep the market balanced,” said Gonzales.

The Huntsville Madison County area month™s inventory of single-family homes for December came in at 7.5 months compared to the national month™s inventory of single-family homes, which was approximately 7.2 months in December, according to the National Association of REALTORS ® (NAR).

Days on Market

The January 2010 Average Days on Market (DOM) rose to 122 compared to Decembers 88 days, marking another seasonal trend.

Month™s inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market.

Real Estate Milestones in January

Home prices held steady in Huntsville Madison County with homes sales returning to seasonal norms after record breaking activity in November and December.

At $168,000, the January 2010 single-family home median price “ the figure at which half of the homes sold for more and half sold for less “ remained unchanged from January 2009.

The number of available properties (active listings) in January increased by 14.07 percent compared to December 2009.

The January 2010 Average Days on Market (DOM) rose to 122 compared to Decembers 88 days, marking another seasonal trend.

# # #

The computerized Multiple Listing Service, the North Alabama Multiple Listing Service (NALMLS) a subsidiary of the Huntsville Area Association of REALTORS ® includes residential properties and new homes listed by 3,000 Realtors in North Alabama. Residential listing information for more than 2,900 properties may be found on the Internet at http://www.valleymls.com

The information published and disseminated to the North Alabama Multiple Listing Service (NALMLS) is communicated verbatim, without change as filed by MLS participants. The MLS does not verify the information provided and disclaims any responsibility for its accuracy. All data is preliminary and subject to change. Monthly sales figures reported include a statistical estimation to account for late entries. Twelve-month totals may vary from actual end-of-year figures.

Founded in 1948, the Huntsville Area Association of REALTORS ® (HAAR) is a 2,000 plus-member organization of real estate professionals engaged in every aspect of the industry, including residential and commercial sales and leasing, appraisal, property management and counseling.

Housing Finishes Year on Upward Trend

Home Sales and Prices Grow Steadily

Huntsville, AL ” (January 14, 2010) ”  Home sales in Huntsville Madison County finished the year on an upward trend in December with homes sales increasing by 34.68 percent compared to December 2008 according to new data prepared by the Huntsville Area Association of REALTORS ® (HAAR). Home sales decreased by 23.95 percent in December from the prior month of November which posted unprecedented sales for any November on record.

Sales for the 2009 totaled 4,789 units, down 1 percent compared to 2008 and down 16.5 percent from 2006, which had the highest number of sales on record.

At $169,900, the December 2009 single-family home median price “ the figure at which half of the homes sold for more and half sold for less “ rose by 1.13 percent from November 2009 and increased by 2.97 percent from the same period last year.

œThe Huntsville Madison county housing market grew steadily [taking into account the seasonal trends] throughout the year as the overall national housing industry struggled to recover. We are extremely pleased with the condition of our market which did not suffer many of the horrific dips that most of the country endured. We continue to see steady growth patterns in both sales and home pricing which is indicative of a market that is healthy and certainly passed the bottoming out point , said Oscar Gonzales, HAAR CEO.

Available Properties

The number of available properties (active listings) in December decreased by 5.88 percent compared to November 2009. There were 112 fewer listings compared to December 2008, reflecting a year over year contraction of inventory.

The Huntsville Madison County area month™s inventory of single-family homes for December came in at 6.53 months compared to the national month™s inventory of single-family homes, which is approximately 7.6 months, according to the National Association of REALTORS ® (NAR).

Days on Market

The December 2009 Average Days on Market (DOM) remained at 88 compared to November and decreased by 27 days compared to December 2008.

Real Estate Milestones in December

Home sales in Huntsville Madison County finished the year on an upward trend in December with homes sales increasing to by 34.68 percent compared to December 2008.

At $169,900, the December 2009 single-family home median price

The number of available properties (active listings) in December decreased by 5.88 percent compared to November 2009. rose by 1.13 percent from November 2009 and increased by 2.97 percent from the same period last year.

The December 2009 Average Days on Market (DOM) remained at 88 compared to November and decreased by 27 days compared to December 2008.

#   #   #

The computerized Multiple Listing Service, the North Alabama Multiple Listing Service (NALMLS) a subsidiary of the Huntsville Area Association of REALTORS ® includes residential properties and new homes listed by 3,000 Realtors in North Alabama. Residential listing information for more than 2,600 properties may be found on the Internet at http://www.valleymls.com

The information published and disseminated to the North Alabama Multiple Listing Service (NALMLS) is communicated verbatim, without change as filed by MLS participants.

The MLS does not verify the information provided and disclaims any responsibility for its accuracy. All data is preliminary and subject to change. Monthly sales figures reported include a statistical estimation to account for late entries. Twelve-month totals may vary from actual end-of-year figures.

Founded in 1948, the Huntsville Area Association of REALTORS ® (HAAR) is a 2,000 plus-member organization of real estate professionals engaged in every aspect of the industry, including residential and commercial sales and leasing, appraisal, property management and counseling.

By Kate Berry/American BankerDecember 31, 2009

A new mortgage disclosure rule may initially do the opposite of what the Department of Housing and Urban Development (HUD) intended.

Starting Jan. 1, lenders, for the first time, will be held to the good-faith estimate of closing costs they provide loan applicants. Lenders will be forbidden from increasing some charges at the closing table and limited to a 10% increase on other fees.

If the costs of services such as title insurance or credit reports turn out to be much higher than estimated, the lender will have to eat the difference.

HUD has estimated that borrowers will save an average of $700 in origination costs because the strengthened good-faith estimate will help them to compare offers and shop for the best price. But some experts say that, at least to start, lenders may raise their own fees to cover the additional risk, and overestimate third-party costs in the good-faith estimates to avoid running afoul of the regulation.

“The rule was adopted on the principle of lowering cost, but that may or may not be the case,” said Richard Andreano, a partner at the law firm Patton Boggs. “If there are so many restrictions and the lenders also have to pay third-party expenses, then lenders would have to increase their own fees on the loan to make up for where they are losing money.”

Though HUD finalized the Real Estate Settlement Procedures Act rule a year ago, it gave lenders a year to prepare for compliance. In addition, HUD has offered a reprieve from enforcement actions for violations in the first four months of 2010.

Still, lenders are concerned because once the good-faith estimate has been given to a borrower, it cannot be revised except under a very narrow set of circumstances, which the agency has defined as “acts of God, war, disaster or other emergency.”

The good-faith estimate “is no longer an estimate but a firm document,” said Melissa Richards, a compliance attorney at Buchalter Nemer in San Francisco.

As a result, “the cost of doing business as a mortgage lender will go up exponentially in the coming years,” she said.

Gary Lacefield, the president of Risk Mitigation Group, a mortgage consulting firm in Arlington, Texas, said he has been flying around the country training mortgage bankers to understand how they will be affected by the new good-faith estimate.

“There’s going to be lots of confusion, particularly for those issues where there is no tolerance on the good-faith estimate and the amount listed on the form has to be exact,” Lacefield said. “There are going to be additional costs involved because lenders have to make sure they have the exact amounts listed.”

Fred Gooch, the vice president of compliance at DocuTech Corp., an Idaho Falls provider of compliance services and documentation technology, said that because lenders are bound by the tolerance levels on the good-faith estimate, they are searching for ways to control third-party settlement charges.

“The real issue is how do lenders control costs that they really can’t control but are on the hook for if they are out of tolerance,” Gooch said.

One way, he said, would be to negotiate contracts with third-party vendors putting them on the hook if any of the charges exceed estimates.

Another part of the new rule that is vexing lenders: they will have to give the borrower the good-faith estimate within three days of receiving a credit application. What constitutes an “application”?

According to HUD, once a lender receives six pieces of information from the borrower ” name, Social Security number, monthly income, property address, estimate of the property’s value and the proposed loan amount ” the clock starts.

Andreano said that in writing that provision, HUD did not take into account how consumers typically shop for homes, particularly if they have not yet identified a specific property they want to buy.

“Very little information now triggers the need to provide the good-faith estimate when many borrowers are really just looking for a ballpark figure of what they qualify for,” Andreano said. “Because of the binding nature of the good-faith estimate, the Respa rules create the need for a lender to make a decision on a borrower very early on in the process.”

To get around this problem, many lenders are intentionally not asking borrowers to provide specific property addresses, a move that can enable them to avoid having to provide the binding good-faith estimate, according to Andreano and several other mortgage experts.

“Some lenders are saying if they have a borrower who doesn’t appear to want to apply for a loan, they won’t take the property address, because the borrower just wants preliminary information,” Andreano said. “There are occasions where lenders are appropriately not requesting information because the borrower is in the preliminary stage.”

Richards at Buchalter Nemer said another unintended consequence of lenders trying to avoid being bound by the good-faith estimate is that they may start denying more credit applications, especially if they must make decisions “on the spot,” thus avoiding having to offer an estimate altogether.

That, however, risks inviting scrutiny from federal regulators if the rate of denials in certain geographic areas exceeds that of their peers.

One way to avoid an outright denial is by overestimating the charges in the good-faith estimate. “If the fees end up coming in lower, then they charge the lower amount at closing,” Andreano said.

In theory, if just one lender gives a conservatively high estimate of fees, it could potentially begin to lose business to rivals.

However, “if a lot of lenders estimate high, then it doesn’t make any one lender look uncompetitive, because that’s what the entire industry is doing,” he said.

Last week, after the Senate gave its final and fully supportive approval on the homebuyer tax credit extension, the House of Representatives voted overwhelmingly to pass the legislation, sending the tax credit to President Obama who’s final sign-off on Friday made it official.  

The $8,000 first-time homebuyer tax credit, which was slated to expire Nov. 30, 2009, will be extended for contracts signed before May 1, 2010 that close before July 1, 2010. First-time buyers, who are in the process of closing now, no longer have to worry about qualifying for the $8,000 tax credit if they do end up closing after the Nov. 30 deadline. The new legislation also increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the current level.

Buyers who already own a home are also now eligible for a tax credit and the purchase of a home. The $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years. The legislation does set forth several provision including, limiting eligibility for existing homeowners to homes worth $800,000 or less, as well as making both credits available only for primary residences, not second homes or investment properties. The legislation will take effect November 7, 2009 and is not retroactive.

The original first-time homebuyer tax credit jump-started the housing market, driving home sales to the highest level in more than two yeas. The National Association REALTORS ® reported sales jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million units in September and are 9.2 percent higher than the 5.10 million-unit pace in September 2008.

Huntsville, AL ” (November 12, 2009) ” Home sales in Huntsville Madison County continued on a upward trend in October defying the seasonal decrease expected for this time of year according to new data prepared by the Huntsville Area Association of REALTORS ® (HAAR). Home sales rose by 4.49 percent in October from the previous month and by 18.82 percent from October 2008.

Home Sales Break Frta – om Trend – Prices Show Seasonal Decrease

Huntsville, AL – (October 15, 2009)- Home sales in Huntsville Madison County broke from seasonal trends and rose in September according to new data prepared by the Huntsville Area Association of REALTORS ® (HAAR). Home sales rose by 1.12 percent in September from the previous month and by 3.68 percent from September 2008.

At $165,275, the September 2009 single-family home median price – the figure at which half of the homes sold for more and half sold for less – decreased by 3.9 percent from August 2009 and by 3.06 percent from the same period last year.

“Our housing market continues to show signs of improvement. While it is not as robust as many would like to see, we are one of the few markets in the country where we continue to see growth and are on a much faster track to normalcy,” said Oscar Gonzales, HAAR CEO.

Available Properties

The number of available properties (active listings) in September decreased by 3.83 percent or 112 active listings compared to August 2009. There were 187 fewer listings compared to September 2008, reflecting a seasonal contraction of inventory as we move into the winter months.

The Huntsville Madison County area month’s inventory of single-family homes for September came in at 7.76 months compared to the national month’s inventory of single-family homes, which is approximately 10.2 months, according to the National Association of REALTORS ® (NAR).

Days on Market

The September 2009 Average Days on Market (DOM) decreased by 10 days to 82 compared to August 2009 and decreased by 11 days from September 2008.

Month™s inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market.

Real Estate Milestones in September

Home sales rose by 1.12 percent in September from the previous month and by 3.68 percent from September 2008.

At $165,275, the September 2009 single-family home median price decreased by 3.9 percent from August 2009 and by 3.06 percent from the same period last year.

The number of available properties (active listings) in September decreased by 3.83 percent or 112 active listings compared to August 2009.

The September 2009 Average Days on Market (DOM) decreased by 10 days to 82 compared to August 2009 and decreased by 11 days from September 2008.

# # #

The computerized Multiple Listing Service, the North Alabama Multiple Listing Service (NALMLS) a subsidiary of the Huntsville Area Association of REALTORS ® includes residential properties and new homes listed by 3,000 Realtors in North Alabama. Residential listing information for more than 2,800 properties may be found on the Internet at http://www.valleymls.com

The information published and disseminated to the North Alabama Multiple Listing Service (NALMLS) is communicated verbatim, without change as filed by MLS participants.

The MLS does not verify the information provided and disclaims any responsibility for its accuracy. All data is preliminary and subject to change. Monthly sales figures reported include a statistical estimation to account for late entries. Twelve-month totals may vary from actual end-of-year figures.

Founded in 1948, the Huntsville Area Association of REALTORS ® (HAAR) is a 2,000 plus-member organization of real estate professionals engaged in every aspect of the industry, including residential and commercial sales and leasing, appraisal, property management and counseling.

If you’re thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won’t cover your total mortgage obligation and closing costs, and you don’t have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.

1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as:  Refinancing your loan at a lower interest rate; providing a different payment plan to help you get caught up; or providing a forbearance period if your situation is temporary. When a loan modification still isn™t enough to relieve your financial problems, a short sale could be your best option if:

• Your property is worth less than the total mortgage you owe on it.

• You have a financial hardship, such as a job loss or major medical bills.

• You have contacted your lender and it is willing to entertain a short sale.

2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won’t try to take advantage of your situation or pressure you to do something that isn’t in your best interest. A qualified real estate professional can:

• Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).

• Help you set an appropriate listing price for your home, market the home, and get it sold.

• Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).

• Ease the process of working with your lender or lenders.

• Negotiate the contract with the buyers.

• Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can™t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.

3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale œpackage that accompanies any offer typically must include:  

• A hardship letter detailing your financial situation and why you need the short sale

• A copy of the purchase contract and listing agreement

• Proof of your income and assets

• Copies of your federal income tax returns for the past two years

4. Prepare buyers for a lengthy waiting period. Even if you’re well organized and have all the documents in place, be prepared for a long process. Waiting for your lender™s review of the short-sale package can take several weeks to months. Some experts say:

• If you have only one mortgage, the review can take about two months.

• With a first and second mortgage with the same lender, the review can take about three months.

• With two or more mortgages with different lenders, it can take four months or longer.

When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender™s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)

5. Don’t expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:

• You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can™t pay back the balance, talk with your real estate attorney about your options.

• Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.

• Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.