Remodeling projects may not give you the return that you expect.

If you are thinking of taking on a costly renovation project you may want to reconsider. In this market buyers are thinking about a home's utility rather than expensive structural improvements. Keep in mind that in today's market you may get more value in a new roof than a new master suite addition. Before you get out your checkbook read this article to see what your best options may be to increase your return on investment.

October New Home Sales Higher than Expected

New Home sales up 6.2% for the month of October. 27,000 units higher than expected. Check out this breaking news from the Associated Press posted on CNBC this morning. Other exciting news is that continuing jobless claims in the US are down 127,000 from the previous month. What a great way to head into the holiday season.

Case-Shiller Up Today

For two consecutive days positive market date released. Check out this article from thestreet.com today.

The Tax Credit is Working for the Existing Market!

For the last 7 consecutive months existing home sales in the U.S. have lifted off the bottom floor and show no signs of falling back. This October sales of existing homes are up 10.1% which is the highest level since February 2007. Every day more and more people take advantage of the variety of buyer incentives that are driving this demand, as a result we are seeing prices increase. It may be years until we see pricing the way it was before the recession but forward progress is definitely being made. As long as we do not see an increase in interest rates we can expect this upward sales trend to continue through at least June 2010 when the tax credit expires.

Today's home buyers are making strong investment decisions that they will appreciate for years to come. Qualified skeptics however, will forever regret holding out if they let this unique buyers market pass them by. With up to $8,000.00 in tax credits and interest rates under 5% for conventional borrowers, both current and 1st time shoppers "The time to buy is now."
by: Michael Wiener

Everyone should play the game but few are qualified.

What an interesting economic time to be living in! With the highest unemployment and forclosure rates in decades, lenders are holding on to every last cent. The demand for real estate has been reduced to a fraction of what it was just 36 months ago. Add in that interest rates are sub 5% for qualified borrowers, the basic "buy low, sell high" philosophy encourages us to find a realtor and acquire one of the milions of undervalued properties that exist in every neighborhood. The only problem is that not everyone is able to make a transaction.

"Would be" homebuyers fall into one of many categories that disqualify them from participating in the prime-time of buying real estate. One of which, is simply the inability to get a loan. More than 1 in 10 people are without work, and in the last two years, the numbers have not shown signs of improvement. Without adequate and stable taxable income people in this position instantly raise a red flag to any lender. Another problem people face is that homeowners have homes that they have over leveraged or the properties are simply worth less than the purchase price. Property owners just can not afford to get out of the home that they currently have. Either they do not have enough equity or cash reserves to get out. No matter what the reason the supply far exceeds the demand.

Those who do not fall into any of these categories should be taking advantage of the discounted home pricing, cheap cost of money and enticing tax incentives. It is a decision that qualified buyers will only regret if they hesitate to act. History has shown that it is just a matter of time for home prices and interest rates to increase and for inflation to occur.

By: Michael Wiener, M.S/Realtor