Category: Buying

Buying

5th Annual Christmas Parade of Homes

Sanderson Home- 2010 Tour

Come celebrate the 5th Annual Christmas Parade of Homes, benefiting South Mississippi Children’s Shelter. South Mississippi Children’s shelter serves children ages 9-17  that are battered, abandoned, abused, neglected, homeless or have run away.

As as Parade of Homes guest, you will be able to visit five homes festively decorated for the holidays. In addition to viewing these homes, there will also be live music, refreshments, and door prizes. Homes are located in Canebrake and Bent Creek West subdivisions, with the event taking place on December 3, 2011 (1-5 p.m.). Tickets are $25 and can be purchased at the Crye-Leike office, through any of their agents, Gourmet and More, Lovie’s, Salon 38, Brown’s Home Furnishings, Plums, McKenzie’s on Main, The Pastry Garden, or by visiting http://www.mchscares.org. 

Please feel free to contact Crye-Leike Signature One Realty agent at 601.336.6941 for details.

All proceeds from the Parade of Homes will benefit the South Mississippi Children’s Shelter.

 

Buying

Renters Spending 5% More Than Home Owners

Rising rents are forcing renters to outspend home owners on housing costs, according to a new study. 

Since 2005, home owners’ housing expenses have climbed from 31.9 percent of their household budget to 33.2 percent. On the other hand, in that same time period, renters’ expenses have jumped from 35.6 percent to 38.4 percent, according to the October CoreLogic U.S. Housing and Mortgage Trends.

In the last 26 years, home owners have increased the amount they spend on household expenses by 12 percent while renters have increased it by 22 percent, according to the study.

Earlier this month, Capital Economics economists noted that for the first time in 30 years the median monthly mortgage payment is about the same — or less — than the median rental payment. 

Source: Realtor Magazine Daily Real Estate News | Wednesday, October 26, 2011 “Renters Outspend Owners on Housing,” RISMedia (Oct. 25, 2011) and Capital Economics

Buying

Friends for Financial Freedom

United Way of Southeast Mississippi’s financial stability program, Friends for Financial Freedom, was formed in March of 2009 to serve people in Forrest, Lamar, and Perry counties. Friends for Financial Freedom has recently formed the Individual Development Account Program. I recently sat down with Janice K. Swiggum, Friends for Financial Freedom Program Coordinator, and Stacy M. Thompson, Assistant Vice President with Bancorp South. They explained the IDA program in detail. IDA is a special matched savings account for people with low to moderate incomes. These accounts are designed to help families and individuals of modest means establish a pattern of regular savings and, ultimately, purchase a “productive asset”. A “productive asset” is something of value that is likely to return substantial long-term benefits to its owner. While your paycheck helps you to buy food and clothing and pay your bills each month, an asset provides financial security for the future.

Typically, IDA savings and match money can be used to buy a house, pay for education, or start a small business. The FFF IDA program will offer a four-to-one savings match, meaning that for every dollar a participant saves as part of the program, he or she will be eligible to receive another four dollars. The maximum match that a participant will be eligible to receive is $4,000.

Savings matches are not “giveaways”. Participants earn savings matches by saving their own hard earned money and taking other steps to prepare for their future like attending personal finance classes. These classes help to give people the tools they need to change negative spending habits. Janice Swiggum put it like this, “The value behind the whole program really is the ability to support people, it’s not just getting people into the classroom and saying here is the magic potion… It’s more about establishing a relationship. To allow them to understand that they can control it and that they can make some changes in their life.” IDA Programs benefit more than just those enrolled because participants conclude the program with a financial education and a productive asset to provide for themselves and their families which benefits the entire community.

The grant money comes from The Office of Community Services in The U.S. Department of Health and Human Services. It is called the AFI grant, which stands for Assets forIndependence. Funds are matched through community partners including Bancorp South Bank, The First Bank, and The United Way ofSoutheast Mississippi. The operational money needed to continue to teach the money management classes is provided by a City ofHattiesburggrant called the Community Development Block Grant. Classes in Jones andJasperCountyare taught at Magnolia State Bank.

This grant opportunity ends in August of 2015. There are income limitations to be eligible. Participants are required to commit to make monthly savings deposits of at least $10, save in the program for at least 6 months, complete the RealCents Money Management class, and complete all asset specific training and counseling. If you or someone you know might benefit from this program contact Janice K. Swiggum, Program Coordinator, at 601-450-4622.

Buying

Looking Ahead

REFLECT AND LOOK AHEAD

While many buyers have taken advantage of the current home buying opportunities, the national market and our local market have faced challenges. In the first half of the year the first time home buyer tax credit and repeat buyer tax credit encouraged sales both nationally and here in Hattiesburg. The National Association of Realtors Chief Economist Lawrence Yun recently pointed out that home sales picked up right before the home buyer tax credit expired, only to drop 27 percent in July. However, in August they picked back up without the aid of incentives like the tax credit.

Buyers also benefited this year from a greater buying power. Better affordability and low interest rates have put buyers in a better position to buy than we have seen in years. “Low interest rates mean real money for today’s home buyers,” said The National Association of Realtors President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “Buyers who purchased a median-priced home five years ago with an FHA mortgage requiring a 3 percent down payment would have a monthly payment of $1,650. With today’s interest rates and median home prices, that same buyer would pay $1,150 per month – a $500 savings. That’s a savings of $6,000 per year.”

Even with all the buyer incentives available rising foreclosure rates led some Americans to wonder if owning a home was a wise decision. There are many reasons for the rise in foreclosures, like irresponsible lending practices. However, home ownership is not the enemy. There are many factors that benefit home ownership, as Phipps pointed out, “…owning a home is one of the best ways to build long term wealth, in addition to providing numerous social benefits that include reduced crime rates, improved childhood education, and increased stability. After all, a fixed rate mortgage might last 15 to 30 years; renting is forever.”

Bankrate.com conducted a survey early in the year and found that 90 percent of respondents had no regrets about buying their current home. Fannie May conducted a survey this month that found that the majority of Americans, both renters and current home owners, strongly aspired to own a home and maintain home ownership.

With all the ups and downs we have experienced in 2010, what should we be expecting from the 2011 market?

“There will be two steps forward, one step back, with sizable local market differences,” says NAR Chief Economist Lawrence Yun,” but the trend nevertheless will be a rise in home sale activity in the upcoming years.” Yun sat down with Robert Freedman, Realtor Magazine, this month. Yun has predicted a slow, but steady recovery for the housing market beginning in 2011. It may take a few years, but will eventually lead us back to normalcy. Yun is predicting 5.2 million existing-home sales, up from 4.8 million last year. He is also forecasting a small improvement in prices—a rise of about 1 percent this year on a national basis.

Tiffany Gragg