Economy

Rising Sales in Most States, and Rising Prices in Many Metros (at Last!)

An Article published by NAR Research Staff stated that the latest quarterly figures on existing-home sales by state and metropolitan area home prices showed some hopeful signs.

To read the full article, please visit: http://www.realtor.org/research/reinsights/marketintelligence

If you or someone you know would like to know more about the available tax credits, please contact me at 704-968-1965 and I will be happy to assist them.

Economy

The Basics: Extended Home Buyer Tax Credit 2009/2010

Bringing the Dream of Homeownership Within Reach

From NAR Website: http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.
Latest news:
Tax Credit Extension a Positive Step Toward Real Estate Recovery (Nov.5)
President’s Podcast: Tax Credit Extended (Nov. 5) 

Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer’s Credit Amount Determined?

Each home buyer’s tax credit is determined by tow additional factors:

1. The price of the home.
2. The buyer’s income.

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,  single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

 

 

We can help you find your home of choice. Contact  Carolina Realty Team at RE/MAX Metro. Call 803-804-3375 or e-mail Becky@CarolinaRealtyTeam.com

Economy

Real Estate 2009 Part I

The State of the Market: There is a Silver Lining

Affordability Is High

The Housing Affordability Index measures the ability of a typical American family to qualify for a mortgage based on the median-price for an existing single-family home.  A score of 100 indicated that a typical family would have the exact amount required based on a 20 percent  down payment and monthly payments of no more than 25 percent of their household income.

Currently, the index is at 135.2, which means the average American family not only can afford to purchase a home, but also will have excess money for living expenses. Another upside, highly desirable real estate markets such as California, Arizona and Florida are becoming more affordable.

Selection Is Vast

With more homes on the market, home buyers can be more selective than in previous years. During the recent market boom, limited availability and high prices resulted in many people making offers on homes due  to fear of being left out of the market.  However, in this buyers market, house hunters can afford to take their time and make a choice they are fully comfortable with.

The Upswing Continues

Continuing the trend of increased existing home sales, 2009 is expected to  produce an additional 6.6 percent increase of home sales. 2009 will be among one of the strongest transaction years in history with an estimated 5.74 million transactions. This year is also projected to boost new home sales to more than 600,000 transactions.

International buyers infuse the U.S. Market.

Some real estate agents are reporting that 25 percent of their transactions are coming from foreign buyers, up from previous estimates of 10 percent. Many of these wealthy international buyers are looking in coastal markets like New York City, San Diego, and Miami. Foreign buyers not only infuse money into our economy, they strengthen and stabilize home prices. “With these prices, you can’t say no!”

Please give me a call at 704-968-1965  for a free market analysis on your home. Now is the time to buy!

Economy

7 Easy Tips For Growing Your Savings

SAVING For Peace Of Mind

For your own peace of mind in today’s uncertain economic times, it is important to do what we can to prepare for life’s unforseen circumstances. Did you realize the Personal Saving Rate in 2009 is at it’s  highest point this decade? Americans are putting more money into their savings for retirement and unexpected events like unemployment and other emergencies.

7 Easy Tips For Growing Your Savings.

During difficult economic times, it’s easy to neglect your savings. Regardless of the state of the economy, paying yourself is always a must. Here are seven tips for growing your savings.

1. Establish an emergency savings account.

In the event of an emergency, having money set aside will prevent   you from dipping into your retirement or long-term savings. A general rule of thumb is to set aside money equal to two or more months’ worth of living expenses. 

2. Save money for your long-term goals.

Saving becomes easier when you have a goal to work toward. If your employer matches a portion of your retirement contribution, you are passing up free money if you don’t take advantage.

3. Make savings automatic.

A portion of every paycheck should go directly into your savings account. Your bank can set up an automatic transfer for you.

4. Start small if necessary.

Even if you can’t afford to put a lot toward your savings right away, starting small will still establish a savings routine.

5. Comparison shop for the best rates.

Search for the best savings rates avavilable. A high yield savings account can double your interest.

6. Turn a payment into savings.

If you’ve recently paid off a credit card or loan, add that payment amount to your monthly savings amount.

7. Save your windfall.

If you just received an inheritance, a tax refund or a bonus at work, you don’t have to spend it just because you have it. Money set aside now will reward you later – and with interest!

 I hope that you have found this information to be helpful. Please give me a call at 704-968-1965 if you are thinking of buying or selling a home. Now is a great time to buy!

Economy

2009 Home Prices in Charlotte, NC

Data for home prices for the second quarter of this year are published.  Charlotte area has fared reasonably well!  CNN Money has the report:  http://money.cnn.com/2009/08/12/real_estate/second_quarter_home_prices/index.html