In July the state's housing agency announced that it has a way – two ways, actually – for Texans to monetize the $8,000 federal tax credit for first-time buyers.

The Texas Department of Housing and Community Affairs (TDHCA) released $7.5 million through two separate second-lien mortgage programs to help qualifying first-time homebuyers take advantage of the federal homebuyer tax incentive. The state programs offer short-term loans until homebuyers file and receive their federal tax credit. The loans offered through TDHCA can be used for downpayment and/or closing costs, and the federal tax credit payment can be used to repay them.

However, buyers must close on the home purchase no later than Dec. 1, 2009. For more information, visit MyFirstTexasHome.com. With the current pace of the market, prospective buyers should get pre-qualified and begin looking at property immediately in order to close in time to receive the $8,000 credit. Call me to talk about how this credit can help you or loved ones begin enjoying the lifestyle and tax benefits of homeownership this year.

Source: Texas Association of Realtors

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Build a better kitchen, bath or bedroom and live by the "bigger is better" mantra if you want the most return for your money on remodeling jobs.
Homeowners who updated their most frequented rooms and those who added on more living space enjoyed the biggest bang for their buck on home improvements, according to Remodeling Online's latest "Cost vs. Value Report."

The annual report is the result of responses from 300 real estate professionals in 60 markets nationwide. Remodeling Online asked the pros what level of return a given remodeling job would provide if the house were sold within one year of the work.

On the average nationwide, kitchen and bath remodels along with second-story, bath, family room and master suite additions were rated tops.
Experts say newness and spaciousness are key.

"You get the value because it's all new. People spend a lot of time in certain parts of the home the kitchen, the bedroom. Even though they are unconscious for most of the time in the bedroom, they want to know it's nice when they wake up. It's all just psychological," said Ken Willis, president of the non-profit League of California Homeowners, an Ontario, California-based home remodeling, real estate transaction and financing information portal with 12,000 members.

"Large is in vogue. You get value simply by having more space," Willis added.

From a minor kitchen remodeling job's return of 88 percent to a 71 percent return on both a major kitchen remodeling job and a master suite addition, here's a look at what gives you the top five best returns for your money. Maintenance-related jobs are excluded. For periods longer than a year between the remodeling work and the home sale, expect smaller returns.
Although the data is updated annually, the figures below should give you a general idea of what return you'll get on your improvements.

Best Returns

Job: Minor Kitchen Remodel
Cost: $17,928 Resale Value: $15,278 Cost Recouped: 85.2%

Job: Window Replacement (Wood)
Cost: $11,040 Resale Value: $9,416 Cost Recouped: 85.3%

Job: Bathroom Remodel
Cost: $12,918 Resale Value: $10,970 Cost Recouped: 84.9%

Job: Window Replacement (Vinyl)
Cost: $10,160 Resale Value: $8,500 Cost Recouped: 83.7%

Job: Two-story Addition
Cost: $105,297 Resale Value: $87,654 Cost Recouped: 83.2%

Job: Major Kitchen Remodel
Cost: $54,241 Resale Value: $43,603 Cost Recouped: 80.4%

Job: Attic Bedroom Remodel
Cost: $44,073 Resale Value: $35,228 Cost Recouped: 79.9%

Source: National Association of Realtors

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Houston and Bryan-College Station are among the 10 most undervalued places to live in the United States, according to U. S. News & World Report.
Bryan-College Station, the only other Texas metro area to make the list, ranked ninth, while the magazine stated that Houston ranked second thanks to its relatively stable housing market, pro-business climate and sound local economy.

The magazine said Bryan-College Station was 21 percent undervalued, while Houston was at 37 percent.

"The medium- and long-term prospects for Houston are extremely good," Dr. Jim Gaines, research economist with the Real Estate Center at Texas A&M University, said in the article. "[Houston has] good demographic growth, job growth and a reasonably balanced housing market."

The report did not comment about Bryan-College Station.

The magazine's rankings came from IHS Global Insight's first-quarter 2009 House Prices in America report, which uses household income, population density and other data to compare a market's actual value with where it should be on a statistical basis. The magazine then used employment, quality-of-life and other research to determine America's best undervalued places to live.

Also on the list were Las Vegas in first place; Naples, Fla., third; Oklahoma City, fourth; Sarasota, Fla., fifth; San Francisco, sixth; Atlanta, seventh; Omaha, Neb., eighth; and San Diego, 10th.

Source: The Eagle

Sales of single-family homes for the greater Houston area continued to improve in June, with the highest volume recorded since August 2008 and the highest median price in history. This comes despite a year-over-year decline in overall property sales of 15.0 percent and 13.5 percent for single-family homes, according to new monthly data compiled by the Houston Association of Realtors (HAR).

At $164,500, the June single-family home median price – the figure at which half of the homes sold for more and half sold for less – rose 2.8 percent from one year earlier to reach an all-time high. The average price of a single-family home in Houston dipped 2.4 percent last month to $221,783 compared to June 2008. That represents the highest average price since August 2008.

Foreclosure property sales showed further decline, as they have each month this year, making up 16.8 percent of all single-family home sales in the Houston area in June. That compares to 34.0 percent in January, 28.0 percent in February, 24.5 percent in March, 23.6 percent in April and 19.9 percent in May. The median price of June foreclosure sales reported in the Multiple Listing Service (MLS) fell 3.0 percent from $90,000 to $87,000 on a year-over-year basis.

Sales of all property types in Houston for June totaled 6,306, off 15.0 percent compared to June 2008. Total dollar volume for properties sold during the month was $1.3 billion versus $1.6 billion one year earlier, an 18.3 percent decline.

Demand for rental properties eased slightly in June, possibly reflecting a growing readiness among renters to purchase a home. Leases of single-family homes edged up 3.2 percent and leases of townhouses and condominiums rose 8.7 percent on a year-over-year basis.

"The Houston real estate market has shown incremental improvement each month this year, both in terms of sales volume and the pricing stability that others around the country envy," said Vicki Fullerton, HAR chair. "Seasonal spring home buying, particularly among first-time buyers who are taking advantage of the government's $8,000 tax credit and historically low interest rates, accounts for much of the June sales activity and, naturally, we hope that continues through the summer months and beyond."

Source: Houston Association of Realtors

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