Today’s article in the WSJ, bodes well for those in the market selling and buying. the extension in the buyer credit is a plus for all! Price declines are slowing down, and inventory holds at a low. let’s see what happened this quarter and hopefully business will continue to grow until the good word has spread country wide! 
The Housing Market Isn’t as Bad as New Numbers Indicate

By KELLY EVANS

The housing market isn’t yet in the clear, but it’s also not as weak as Monday’s home-sales report might suggest.

The National Association of Realtors is expected to announce an 11.6% drop in December existing-home sales to a seasonally adjusted annual rate of 5.78 million, according to economists polled by Dow Jones.

The large drop is exaggerated by the initial Nov. 30 expiration of the government’s first-time home buyer tax credit, which previously boosted sales by some 28% from August through November to an annualized rate of 6.5 million units, the most since early 2007.

The tax credit has been extended through June, but most analysts don’t expect sales growth to resume until February or March. In the meantime, further declines in existing-home sales, which make up nearly 90% of the market, are sure to raise concerns about the recovery in housing and the broader economy.

But there are scattered signs of improvement. Home-price declines have slowed; the S&P/Case-Shiller index out Tuesday is expected to show prices in 20 major cities down about 5.4% in November from a year ago, compared with a trough of nearly 20%.

Inventories of new homes are down to their lowest level in nearly 40 years. New home sales, which the Commerce Department reports Wednesday, are expected to rise 4.2% to an annualized pace of 370,000 units after a sharp decline the prior month.

Residential construction added to gross domestic product in the third quarter for the first time since 2005, and is expected to provide additional support to GDP this year and next. Meanwhile, one of the sector’s most reliable leading indicators, building permits, have risen for two straight months, including a 10.9% surge in December, and are up about 15% from a year ago.

In California, a bellwether state for housing, inventories of existing homes hit a five-year low in December of 3.8 months’ supply, according to the California Association of Realtors, from a high of 16.6 months in 2008.

“We think recovery is underway, but there will be bumps in the road,” said Barclays Capital economist Michelle Meyer. In other word, bumps don’t portend a double downward dip.

Write to Kelly Evans at kelly.evans@wsj.com

Sunday Open Houses From Brian James

135 West 16th St- $699,000 One Bed Condo

159 Madison Avenue 9D- $579,000 One Bed Co-op

159 Madison Avenue 3E- $429,000 One Bed Co-op

288 Lexington Avenue-7D $379,000 Studio Coop

36 Bethune Street-4R $279,000 Studio Coop

This week, average interest on 30-year mortgages was 4.99 percent, compared to 5.06 percent last week and 5.16 percent a year ago.

Rates on 15-year fixed loans also followed bond yields lower, averaging 4.40 percent, compared to 4.45 percent last week; and adjustable-rate mortgages also fell this week.

Source: Los Angeles Times, E. Scott Reckard (01/22/10)

FHA To Toughen Down Payment Rules

Borrowers with credit-rating scores below 580 will be required to put down at least 10 percent. Those with a credit score above 580 will be able to continue to put down only 3.5 percent. The changes are intended to shore up the agency’s finances.

The FHA also will increase its upfront mortgage insurance premium from 1.75 percent to 2.25 percent. The agency is expected to seek congressional approval to raise annual mortgage insurance premiums, paid by borrowers over the life of the loan, above the current 0.55 percent maximum. The amount it will seek has yet been announced.

Source: Reuters News, Corbett B. Daly (01/19/2010)

This is a quick and easy reference to breakdown and highlight six factors you may or may not know. 

6 keys to first-time homebuyer tax credit- By Tracey C. Velt • Bankrate.com

Most people welcome any extra cash when buying a home. And, thanks to a government tax credit of up to $8,000 for first-time homebuyers and up to $6,500 for move-up buyers, they’re getting it.

But, you have to act quickly. The tax credit applies to a principal residence bought by April 30, 2010, and you must close by June 30, 2010.

2. You don’t get a check at closing. Many homebuyers assume that the $8,000 is given to them at closing. Not true, says Winter Park, Fla.-based accountant David Keeler.

“Taxpayers need to wait until they’ve actually filed their income tax return to receive the tax credit,” says Keeler. “The homebuyer credit reduces one’s tax liability on a dollar-for-dollar basis, and if the credit is more than the tax you owe, the difference is paid to you as a tax refund.”

The IRS says first-time homebuyers who purchased a home in 2009 can claim the tax credit on either a 2008 return, due April 15, 2009, or a 2009 return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting a filing extension or by filing an amended return.

3. You don’t always get the full credit. “This is one of the biggest misconceptions out there,” says Maynor Perez, a real estate sales associate with Positive Realty in Doral, Fla. “If you pay $50,000 for a home, you will not get the full $8,000 tax credit.”

5. You don’t have to be a first-time homebuyer. A first-time homebuyer is defined as someone who hasn’t owned a principal residence in the past three years. If you have owned a home before but haven’t owned one recently, you may still qualify for the full $8,000.

If you currently own a home, the tax credit was recently amended to include move-up buyers. As a move-up buyer, you may qualify for up to $6,500. Vacation homes and rental properties are not eligible.

6. There are income limits. “The homebuyer credit is available to higher income taxpayers,” says Keeler. “For purchases after Nov. 6, 2009, the homebuyer credit phases out over higher modified adjusted gross income levels, making the credit available to a much bigger pool of buyers.”

For homes purchased after Nov. 6, 2009, and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

The tax credit expansion can give you incentive to start looking. But, act quickly and carefully to ensure you receive the full benefit.

Maybe another savvy pair of New Yorker’s can transform this small space into an ideal and appointed living space!

The original story was in the New YorkPost by ANGELA MONTEFINISE .

A pair of New Yorkers living in a 175-square-foot studio might just be the wave of the future.

Zaarath and Christopher Prokop don’t cook in their own kitchen. They “store” most of their clothes at dry cleaners. A cappuccino machine is their only kitchen appliance, and a cat-gym and a queen-sized bed are almost the only furniture. But the Prokops (shown left) say that they’re happy with their home, which cost them $150,000 a few months ago. With two full-time jobs, they’ll have paid off the mortgage in just two years, according to the New York Post.

The Prokop’s lifestyle is not for everyone - it wouldn’t work without nearby dry cleaners and restaurants. But with a little design help, tiny homes like the Prokop’s — or the wee Japanese single-family home pictured below — could fill a big gap in the housing market, particularly for students and singles in expensive cities.

To get a sense of the problem, consider that the population of New York is projected to grow by another million or so people over the next couple of decades. Where will they fit? Will poor New Yorkers get priced out? Even after the real estate crash pummeled prices, the average person living in New York City still can’t afford an average home.

Architects from all over the world found answers at a September symposium held in Manhattan by the Citizen’s Housing Planning Council. They showed photos and floor plans of tiny homes - all full of light, fresh air, and clever build-ins. Because they are designed to be tiny — as opposed to improvised slice-ups of existing buildings — all the homes find room to hang a few suits and necessities. And they are much brighter than the Prokop’s redeveloped Manhattan maid’s room.

Check out the presentations:About four minutes into architect Azby Brown’s talk, you’ll see the 426-square-foot home of a 19th-century Japanese samurai, followed by modern Japanese single-family homes squeezed onto lots as small as a parking space (once the video loads up, you can fast forward). Other architects present San Diego apartments with shared kitchens, Italian apartments with shared gardens, and the Canadian Grow-Home, a compact townhouse. Finally, you’ll hear a New York City code official try to address the archaic and sometimes foolish rules that keep our tiny homes from looking this good. Still, as these architects have shown, less can sometimes be more.

Adorable West Village Studio!

Found on charming Bethune Street, this small and quaint apartment is brand new to the market. Large plank floors, fireplace and sunny this studio is worth the walk up. The coop consists of 4 buildings and is self managed. Co purchasing, pied e terre are welcome. Ideal for a writing studio or weekend escape in the Village.

34- 36 Bethune Street Coop

In the center of it all! Beautiful, one bedroom, pre-war condo in Chelsea .Found on a quiet tree-lined street, between Sixth and Seventh Avenues in Manhattan. Only steps from all major subway lines, taxis and other transportation. Shopping, restaurants, museums are all within walking distance. Penn station and Port Authority are only minutes away, for quick getaway destinations. The apartment is approx. 600 sq feet, with designer kitchen, breakfast bar, Chef’s stove and oven, All stainless steel appliances Recessed lighting and black, granite counter tops in kitchen Modern, High ceilings and pre-war detailing Elevator building. Laundry in basement

For rent or sale!

135 west 16th Street

Loft. Studio. One Bedroom. Wonderfully renovated apartment has it all.

Studio divided with a true separate windowed sleeping area that comfortable fits a queen bed, desk and dresser. Found on the 5th floor facing south this studio is perfect for many situations. Hardwood floors, 10′ ceilings, renovated kitchen, bathroom, recessed lighting, are just a few of the details.

Full service doorman building. Renovated lobby, halls & elevators. Laundry & storage on each floor and an intimate roof deck that features Empire State Building views.

Sublet Policy: Must live in Building 2 years then can sublet for 3 years. Cycle repeats itself.

Co-Purchasing-Allowed. Pet Friendly. Pied e Terre-OK. Total maintenance is $834.00

159 Madison Avenue 5E

Up we go! A new year and a new attitude may make gains for all in 2010. That is, the people involved with selling and purchasing Manhattan real estate. Buyer’s who have been holding out may finally find that special place to call home and the seller’s who were waiting for the flood of new inventory may wish to list their residences. As seen below in the article, its all about supply and demand. This year the inventory is still less than usual. However, I personally am bringing on several new listings this week. Check them out!

Manhattan Residential Market Slowly Clambering Out of Hole  By Charlotte Cuthbertson

NEW YORK—The Manhattan housing market is climbing out of its deep hole and stabilizing, according to a Q4 2009 report prepared by Miller Samuel.

The fourth quarter saw increased sales activity, declining inventory, fewer price cuts, and price stabilization in the residential market, the report said.

“Improvement in the national economy, rising stock market, and mortgage rates at historic lows have all played a role in the improvement of the Manhattan housing market second half of 2009,” said Jonathan Miller, president/CEO of Miller Samuel.

Dottie Herman, president/CEO of Prudential Douglas Elliman, said the firm is very pleased with the improvement in the New York City market.

“This quarter we saw 10.9 percent more sales than the prior quarter and the real estate market was very active for a time of year where sales generally decline due to the holiday season,” Herman said. “Unlike the rest of the country where there is an abundance of inventory, New York City’s listing inventory fell 25 percent from the same time last year. We believe that improved economic conditions and a strong belief in New York City all played a role in improving our housing market.”

Unemployment will remain a big factor in the future market conditions, the report says. Easier credit for buyers and resolution of the shadow inventory situation will also play a role in 2010.