Local Real Estate News          


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   DECEMBER
 

 
 

News Flash TAX CREDIT

We Have News To Tell…. the Home Buyer Tax Credit Has Been Extended and Expanded…

From now until April 30, 2010, first-time home buyers and move-up buyers have another great reason to get on the path to purchasing a new home!   The benefit to first-time homebuyers is a tax credit up to $8,000 and for move-up buyers a tax credit up to $6,500.  

 

Listen to CENTURY 21 Real Estate CEO’s reaction to the tax credit details:

Tom Kunz, President and CEO of Century 21 Real Estate LLC, comments on the legislation.  To view, see the related links below.

 

At a Glance:

FIRST TIME BUYERS
Credit: Equal to 10 percent of the home's purchase price, up to $8,000
 
Who Qualifies?

  • Those who haven't owned property in the last three years
  • Those with income up to $225,000 for couples or $125,000 for individuals (credit phases out for people who make more than these amounts)
  • Must be at least 18 years of age to claim credit
  • Purchase price must be $800,000 or less

Deadlines:

  • Have until April 30, 2010, to enter into a contract for a home purchase
  • Have until June 30, 2010, to close on the purchase

CURRENT HOMEOWNERS
Credit: Equal to 10 percent of the home's purchase price, up to $6,500
 
Who Qualifies?

  • Those who have owned and lived in their principal residence for at least five consecutive years during the past eight years
  • Those with income up to $225,000 for couples or $125,000 for individuals (credit phases out for people who make more than these amounts)
  • Must be at least 18 years of age to claim credit
  • Purchase price must be $800,000 or less

Deadlines:

  • Have until April 30, 2010, to enter into contract for a home purchase
  • Have until June 30, 2010, to close on the purchase

In addition, buyers have another year to take advantage of the higher loan limit for mortgages backed by the Federal Housing Administration, Fannie Mae or Freddie Mac set at 125 percent of local median home sales prices, up to a maximum of $729,750 in high-cost housing markets. The limit in normal markets will remain $271,050 for FHA and $417,000 for Fannie Mae and Freddie Mac.
 
PLEASE NOTE: The tax credit does not have to be repaid provided you live in the new home for a minimum of three years.  Military families are exempt from this stipulation. Purchaser must attach documentation of purchase to tax return. 

Please remember to advise consumers to consult with a tax professional for individual eligibility and implications of the Homebuyer Tax Credit.  

HomeBuyer Tax Credit
   
 

 

 Six signs your home will increase in value
Recent reports on the health of the economy and the housing market have shown improved conditions.  The federal tax credit for first-time buyers, affordable home prices, and low interest rates also are driving many buyers into the market.  However, housing markets are local, and can vary greatly from one to the next.  Still, there are indicators on which homeowners can rely to determine whether their home’s value will rise.

 

MAKING SENSE OF THE STORY FOR CONSUMERS

  •  The unemployment rate in an area can help homeowners determine if their homes’ values is likely to rise.  As the unemployment rate rises, fewer individuals are capable of purchasing homes, decreasing the demand for homes, and driving down prices.  To find a city’s unemployment rate and whether it’s rising or falling, consumers can visit the Bureau of Labor Statistics’ Web site at http://takeaction.realtoractioncenter.com/ct/A7sSVa11MU_s/. 
  •  On average, foreclosed homes sell for 30 percent less than similar homes in the same area.  However, that figure varies by housing market, according to an executive at RealtyTrac.com, which tracks foreclosures.  As foreclosures increase, the average prices of homes in the neighborhood decrease. 
  •  Tracking a neighborhood’s inventory supply also is a good indicator.  A supply of five to six months is considered “normal.”  For the most extensive inventory level comparisons, homeowners should contact a local REALTOR®.  Following the list-to-sale-price ratios of a neighborhood can help determine the direction of home prices in an area.  If the price difference is shrinking for an area, that suggests the real estate market is improving.  Some real estate Web sites offer this information, or homeowners can contact their REALTOR® who can provide the average list-to-sales price ratio and a historical comparison.

To read the full story, please click here.

 
    DECEMBER
 
   
   ANITA'S REAL ESTATE NEWS LINK  for September 2009
   
   Lowe"s Monthly News from Anita  Read your copy when you get it in your email every month near the first of the month. They hand out coupons like this every once in a while.