The Federal Housing Administration (FHA) announced new guidelines to strengthen its assets and reduce risk.  These are some of the major changes that will affect borrowers:  

 1) There will be new loan-to-value and credit score requirements.  A  FICO score of less than 580 will require a minimum of 10% downpayment.  

 2)  A 3.5% downpayment continues to be acceptable for those with a FICO score of 580 or above.   The upfront insurance premium will be increased to 2.25% (currently 1.75%). 

 3)  Allowable Seller Concessions will be reduced from 6% to 3%.   

4)  Stronger enforcement of FHA standards & guidelines for lenders.  Lenders will be ranked by performance.

 The timing for these new guidelines to kick-in is the spring and early summer.  Long Island  homebuyers will be required to pay more money to obtain an FHA mortgage.  The best time to buy is Before these new guidelines go into effect.   To read the full statement click on FHA Report.

DON’T FORGET! You MUST be in contract by April 30 and Close by June 30 to take advantage of the  The First Time HomeBuyer and Repeat Buyer Tax Credit.  See Video with details on my Blog Post.

Contact Cheryl Grossman at cheryl@liagent.com for more information or to discuss your housing needs.

 The NYS Department of Environmental Conservation has some great ideas for homeowners on Long Island!  Going green can save money for you and your family.  These small actions can make a big difference for the environment as well.   Check out their Website for tips & resources for greener living.   The are some short videos with Green Tips for Windows and Doors, the Kitchen, the Bathroom, the Water Heater , and the Washing Machine.

One great tip is to wait until February to buy new appliances.  The Great Appliance Swap Out Program is scheduled to begin President’s week, 2010.  Rebates from $50 to $550 will be available – plus bonuses for recycling your old appliances.  There’s a Refrigerator Retirement Savings Calculator as well as some other tools and more information to help you save money-  and help the environment at the same time!  Go Green!

Today at the LI Board of Directors Meeting, the President for the LI MLS, Frank Dell’Accio discussed the latest MLS stats.  I’m relaying some of the more interesting ones for buyers and sellers. 

Houses Entering Under Contract:  An increase of 21% in December, 2009 from December, 2008.

The Number of Houses Closed (Sold):  2708 in December, 2009   –    1964 in December, 2008.

Inventory (the number of homes on the market) is down 7% from last year.  The length of time to sell all the inventory on the market is down from 17.8% to 13.7%.

HUD is issuing new regulations for FHA mortgages this spring.  They will be more restrictive and the upfront fee will increase.  I’ll write more about this in a future blog post.

An October update of the Long Island MLS Stats was reported today at the LIBOR/MLS Directors Meeting.   Sales numbers continue to reflect an improving housing market for our area.  In October the number of Closed (Sold) homes was 26,010 compared to 22,053 in October, 2008 – an increase of 14% from last year.  The number of homes Under Contract in October, 2009 was 3061 - compared to 2089 in October, 2008.  Inventory numbers are down for October also.  In October, 2009 there were 31,240 Available homes compared to 35,220 in October, 2008.    We currently have 10.2 months of inventory compared to 16.9 months last year.   The median selling price of homes on Long Island has declined 7 % from a year ago. 

Nationally, the numbers are better also.  The National Association of Realtors (NAR)  reports that home prices have increased 3-5% over last year.  The $8000 First-Time Home Buyer Tax Credits accounted for 350,000 – 400,000 more sales this year.  They project that the extended and expanded Tax Credit (See Article for Details) will boost the 2010 sales numbers by 15%.

The National Housing Market Report  published by Altos Research is a composite of housing data from 10 cities.  The November 10 Report details 2009 market trends.

 President Obama signed into law today an extension and expansion of the homebuyer tax credit.  The $8,000 First-Time Homebuyer Tax Credit is extended until April 30, 2010.  Buyers must be in contract by that date – but have until June 30 to close.  Current homeowners who have lived in their home for 5 years can receive a $6,500 tax credit when they purchase another home.  Income levels have been raised to $125,000 for single buyers and $225,000 for couples.  The purchase price of the home cannot exceed $800,000.  There are requirements and limitations.  The National Association of Realtors (NAR) published a chart which list the stipulations -  NAR Tax Credit Brief.

These new guidelines will help many buyers on Long Island.  All combined - the tax credits, reduced home prices, and historically low interest rates make the total cost of buying a home now the lowest it’s been in years - creating an incredible opportunity for you and your family.

Start your search now at www.LIagent.com or use the Quick MLS Search on the upper right sidebar.  Call us at 631-493-0542 or CGTeam@CherylGrossman.com.

Thanks to Alissa Taff for providing this important information about the proposed changes at Republic Airport on Long Island to existing commerical airspace. 

The Federal Aviation Administration (FAA) and the New York Terminal Radar Approach Control (NY TRACON) have proposed changes to existing commercial airspace for the New York metropolitan area due to violations that have been occurring in spacing requirements of the high volume of inbound traffic at LaGuardia, JFK and Newark airports.  One of the proposed changes is to lower the current ceiling height of class B (commercial) airspace from 3000 feet to 2500 feet, with some areas being allowed to go as low as 2000 feet.   This would then result in the lowering of ceiling heights at Republic airport to below 2500 feet, since they currently operate in the 3000 foot ceiling range.  This will also impact helicopters and the flight schools at Republic Airport that fly or train in the lower range of airspace that Republic’s planes will now be using.  

Lowering the ceiling heights of aircraft will result in greater noise, air po llution and increasing safety concerns over our homes and schools. We must register our complaints if we want this situation improved.  We are already impacted by noise, air quality and safety issues without the addition of lowering the ceiling height of aircraft over our neighborhoods.  Without documentation, little can be done.  WE URGE YOU TO CALL REPUBLIC AIRPORT TO LOG IN FLIGHTS OF EXCESSIVE NOISE AND LATE NIGHT HOURS – 631-752-7707 – PRESS 4.  

Just returned from a Directors Meeting for the Long Island Board of Realtors.  The September stats for 2009 were compared to the same period last year.

Inventory Numbers:       Sept. 2009 – 32,168 Total Inventory Down 10.8% from last year.

Sept. 2008 – 36,049

Queens – Down 13.9%

Nassau – Down 27%

Suffolk – Down 10.8%

Number Under Contact:   Sept. 2009 Up 23% across the board from last year, Sept. 2008

Queens – Up 25%

Nassau – Up 21.9%

Suffolk – Up 22%

Number Closed Sales:     Sept. 2009 compared to Sept. 2008

Queens – Up 7%

Nassau -  Up 9%

Suffolk -  Up 8%

Closed Selling Prices:      Sept. 2009 Down 9.2% across the board from last year, Sept. 2008

Median Selling Price, Sept. 2009:  $402,000 compared to Median Selling Price, Sept. 2008:  $365,000

All of us were pleased with the improving numbers in all counties.  It’s great to spread some more positive news about the housing market on Long Island!

Any questions please contact me at 631-223-8549 or cheryl@liagent.com.  For an instant report on the housing market in your area – Fill out the market request form on the left sidebar.  Visit my website:  www.LIagent.com

Make arrangements now to attend “Miracle on 34th Street” at the John W. Engeman Theater in Northport on December 2, 2009! This special performance is sponsored by the Huntington Township Chapter, Long Island Board of Realtors with proceeds benefiting Long Island Cares – The Harry Chapin Food Bank. 

To purchase tickets – Contact Antoinette Steo – 631-549-2600 or antoinettesteo@optonline.net

Gibbs Pond on a lovely summer day!  The park is located in Nesconset, at the corner of Gibbs Pond Road and Old Nichols Road.  My friend, Priscilla Smith, took this great photo.

The first Farmer’s Market in Huntington Station opens July 25th (from 7 AM until Noon) and will be held every Saturday until Labor Day.  Located across from the Yankee Peddler – in the parking field on the corner of Church Street and New York Avenue this is your chance to enjoy the freshly grown produce from Terry Farms in Orient Point – without the hour trip out east.

In addition to the fresh fruits and vegetables you can purchase home-baked artisan breads and fresh cheescake.   Artists in the Attic and the antique dealers from the Yankee Peddler will participate also.  You can browse through art and antiques while picking out the freshest produce on Long Island!

Terry’s farms is one of the oldest farms in NY State.  The family has been farming for over 400 years!  The Town hopes that everyone patronizes the market so that they will come back next year.  Supervisor Petrone plans to be at the Farmer’s Market around 10 AM on Saturday 25th to help kick it off.  To find out what produce will be seasonally available check the website for the Long Island Growers.