We all know this is the BEST time in history to buy a home. Rates are low and the prices of homes are affordable.  However, we are seeing the birth pains of rates going up.  Add to that FHA will increase their fees starting April 1. In the last 30 days, rates have gone up .25%  Add to that the fee increase on FHA, this means a increase of their payment by $57 per month. Or to say it another way, their purchasing power has dropped by $10,000.  Click here to see the video.  http://mcedge.tv/16fd5v

For those of you who want the details, here it is.  For those of you who don’t know what MIP or bps is, call me and I’ll translate to English.

Effective for case numbers assigned on or after April 1, 2013, the following increases to monthly MI premiums/Annual MIP will take effect:

The above table does NOT apply to Streamline transactions endorsed on or before May 31, 2009.

Effective for case numbers assigned on or after June 3, 2013:

·         HUD will also be removing the exemption from Monthly MI premiums/Annual MIP for loans with terms ≤ 15 years and LTVs ≤ 78%.

Also, effective for case numbers assigned on or after June 3, 2013:

·         Customers will pay monthly MI for a longer time period. The table below shows the old and new duration of Monthly MI premiums/Annual MIP by loan term and LTV.

Billy Brown

Churchill Mortgage

761 Old Hickory Blvd

Suite 400

Brentwood, TN 37027

888-562-8634 x153

Fax 615-467-0209

NMLS # 164331

Apply Online at

www.churchillmortgage.com/billybrown

Exclusively Endorsed by:

This is a good article from the  December Home Sales Newsletter – GNAR News Special Issue

DECEMBER HOME SALES INCREASE MORE THAN 20 PERCENT; YEAR-END HOME SALES MOST SINCE 2007
NASHVILLE, Tenn. (Jan. 9, 2013) – There were 2,147 closings during the month of December, according to figures provided by the Greater Nashville Association of REALTORS®. This is a 21.1 percent increase from the 1,773 closings reported for the same period in 2011.
Fourth quarter closings are 6,657 for Greater Nashville. That total is up 30.7 percent from the 5,093 closings during the fourth quarter of 2011.
Final numbers for 2012 show there were 26,097 homes sold in the region, according to figures provided by the Greater Nashville Association of REALTORS®. Compared to the prior year, the final figures are up 26.5 percent. There were 20,624 closings in 2011.
“December home sales were up more than 20 percent over December 2011, and for the ninth consecutive month, over 2,000,” said GNAR President Price Lechleiter. “Single-family residential closings alone this month exceeded the total closings for all categories combined in December 2011. And, for the first time since 2007, year-end home sales numbers surpassed 26,000.
“The Greater Nashville and Middle Tennessee real estate market is showing healthy signs of recovery, something our region shouldn’t take for granted. The same
growth is not necessarily being experienced in other parts of the state and nation,” continued Lechleiter. “Our diverse economy, progressive local and regional leadership and even the TV show, “Nashville” highlight our city and create a positive spirit and outlook. That results in both businesses and families being attracted here.”
“All nine counties in our primary service area experienced significant increases in home sales, with many of them exceeding 20 percent for the year. And, modest increases in residential median prices were a clear trend throughout the region.”

A comparison of sales by category for December is:
December 2011 December 2012
CLOSINGS
1,773 2,147
Residential
1,502 1,774
Condominium
171 223
Multi-Family
21 31
Farms/Lands/Lots
79 119

A comparison of sales by category for the fourth quarter is:
4th Quarter 2011 4th Quarter 2012
CLOSINGS
5,093 6,657
Residential
4,268 5,506
Condominium
541 725
Multi-Family
53 69
Farms/Lands/Lots
231 357

A comparison of sales by category year-to-date is:
Y-T-D 2011 Y-T-D 2012
CLOSINGS
20,624 26,097
Residential
17,192 21,610
Condominium
2,194 2,871
Multi-Family
228 270
Farms/Lands/Lots
1,010 1,346

There were 1,857 sales pending at the end of December, compared with 1,652 pending sales at this time last year. The average number of days on the market for a single-family home was 82 days.
The median residential price for a single-family home during December was $187,900, and for a condominium it was $149,178. This compares with last year’s median residential and condominium prices of $168,500 and $140,062, respectively.
Inventory at the end of December was 15,054, down from 17,216 in December 2011. The current inventory of properties by category, compared to last year, is:

December 2011 December 2012
INVENTORY
17,216 15,054
Residential
10,574 9,115
Condominium
1,447 1,127
Multi-Family
308 202
Farms/Land/Lots
4,887 4,610

“In December, the median price for single-family homes was up more than 10 percent and up 6 percent for condominiums. Though prices are rising, homebuyers still have a very favorable environment as affordability remains high and interest
rates continue to be at historic lows,” added Lechleiter. “There is a total inventory supply of only seven months remaining, with just a five-month supply for residential and condominiums. But, with farm/land/lot sales up significantly, home building and development activity may be increasing in the near future.
“Trends going into 2013 are positive and encouraging for buyers, sellers and Realtors in the Greater Nashville and Middle Tennessee area. But there are many unknown factors, including federal government fiscal choices. Confidence is currently much
better than it has been in recent years, but fragile. Solving some of the nation’s fiscal issues will be a great help to sustaining the recovery of the housing and real estate market.”
The Greater Nashville Association of REALTORS® is one of Middle Tennessee’s largest professional trade associations and serves as the primary voice for Nashville-area property owners. REALTOR® is a registered trademark that may be used only by real estate professionals who are members of the National Association of Realtors and subscribe to its strict code of ethics.

This is a good article from www.ALTA.org.

With Congress passing and President Obama signing into law H.R. 8 (American Taxpayer Relief Act of 2012) to avert the so-called “fiscal cliff,” there are several provisions of the legislation that impacts housing ALTA members should know about.

The centerpiece of the measure permanent extends current income and capital gains tax rates for taxpayers with taxable income of up to $400,000 for individuals and up to $450,000 for couples. For individuals earning less than $400,000 and married filing jointly less than $450,000, marginal tax rates will stay the same as they have been over the last few years. Here’s a look at key real estate-related tax provisions included in the legislation:

• Mortgage Cancellation Relief: One year extension of the Mortgage Debt Forgiveness Act until Jan. 1, 2014. This should help keep short sale, foreclosure and deed-in-lieu transactions moving. ALTA sent a letter a letter to members of Congress on Dec. 12 urging for this extension.
• Mortgage Insurance Premiums: Itemized deduction for premiums paid for FHA or private mortgage insurance for filers making below $110,000.
• Leasehold Improvements: 15-year straight-line cost recovery for qualified leasehold improvements on commercial properties.
• Energy Efficiency Tax Credit: The 10% tax credit (up to $500) for homeowners for energy improvements to existing homes.
• Limits on Itemized Deductions: Rules limiting the value of itemized deductions (Pease Limitations) were permanently repealed for most taxpayers but will be reinstituted for individuals earning above $250,000 adjusted gross income and couples earning more than $300,000.
• Capital Gains: The capital gains rate increased to 20 percent for high-income earners.
• Estate Tax: The estate tax is now subject to a $5 million exemption in individual estates ($10 million for family estates) with a tax rate of 40 percent (up from 35 percent).

I have the privilege of knowing some very successful interesting people.

One of my friends, Jess, passed away about a year ago. He was 81. One night at dinner, I asked him what he thought his life would be like when he was 75 (his age that night). He told me he always expected great things to happen. Jess grew up in the Depression. He told me many days his family only had rice to eat. He worked during high school, college and law school (he went into real estate law when he graduated). He was working his way up the food chain.

In 1974, he and his wife bought an orchard in Napa and planted grapes to sell to local wine makers. Everything was going fine until 1981. In 1981, there were too many grapes, and he couldn’t sell his. He and his wife, Jane, decided to make their own wine. They decided to name the wine after both of their last names, Kendall Jackson.

Yes, when Jess passed away, Forbes magazine said his net worth exceeded $2 billion. Jess also told me he didn’t believe in circumstances. He said he found his circumstances or made them, always with the expectation of something great.

Another friend of mine grew up in the same part of rural Kansas as me. She told me she worked at the Dairy Queen in my hometown (Hutchinson) to pay her way through junior college. I asked her, “When you were 18 working in the DQ in Hutchinson, what did you expect your life to be like when you were 35?” (That’s how old she was when I met her.) She said something similar to Jess, that she had great belief and expectations in her success. That woman was Martina McBride.

I have always thought that if either of these people would have told their co-workers about their expectations, they would have gotten a discouraging word. I can just see Martina’s co-workers at the Dairy Queen saying, “That’s nice, but we’ve got to make more dip cones.”

There is one thing no employer, friend or your family can control — that’s your ability to “think big.” You can think as big as you’d like and you can make your expectations come true. It starts with your own belief system.

During my entire career, I’ve heard this over and over again, “What the mind can conceive and believe, it can achieve.” I believe it!

There is a law of the universe that says, “What you ardently believe and act upon, you can achieve.” The operative word in both of these bits of wisdom are belief and action. Start today believing in the home run. Where you are today has nothing to do with where you can be. As I’ve said before, “Don’t look in the rearview mirror; you aren’t going that way.”

Sales consultant Tom Black hopes to provide a touch of humor, inspiration and motivation for those along for the ride in the roller-coaster career of sales. Learn more at www.tomblack.com.

Since 1984 I have had the honor and pleasure of being part of the Davidson and Williamson County Real Estate market. As a full time, licensed Realtor I have sold thousands of homes, condos and tracts of land. In the last few years I have often contemplated “blogging” but always decided that all I really want to do is work with buyers and sellers on their real estate needs. But many of you have encouraged me to write again. It’s been almost 25 years since I wrote anything other than a real estate ad, a home brochure for a new listing and a lot of checks to keep my practice going!

As many of you know I have a major in Journalism and a minor in business. When I graduated from Ole Miss in 1982 the only job I could find was a waitress position at Benigans on White Bridge Road (now O’Charleys). This did not bother me one bit as I had been working and making my own money since I was 11. My jobs consisted of a lot of babysitting and then when I was 13 or 14 I got a hostess position at the Lunch spot Katherine’s on Bandywood Drive. Oh, my gosh! I loved that job with all the wonderful smells of fresh baked breads and fresh vegetables! Then when I was 15 and 16 I worked at Fletcher Harvey photography studio on Hillsboro Road across from Hillsboro High school from 2:30-5:30 and then walked out the back door to be a hostess at Bonanza until 9:00 pm. I loved that job too! There were lots of cute boys that worked in the kitchen that went to Hillsboro High School and since I was at an all girls school St. Bernard Academy I considered myself BOY deprived!

I have often compared my career in real estate to my waitressing jobs that I had in the 1980’s. I have always strived to make the customer happy or help them to feel good. I could never understand the concept of “turning tables” even though that was what the restaurants wanted so they could make their numbers. If someone wanted another cup of coffee then I filled their cup and waited on “bringing their check”.

At McCracken Real Estate services we want to do whatever it takes as long as we are being totally honest with you, to make your real estate experience rewarding. If you need to look at a few more homes to find the right one or if we need to engage another professional regarding the condition of your home when we list it, then we are happy to do so! In other words we will be happy to pour you another cup of coffee.