Tax Credit Clarifications

I just wanted to take a quick second to get something straight that is a common misconception. The tax credit for existing home owners is often referred to as the "move up" buyers tax credit. Sure you can get a bigger more expensive house if you want to, but the credit is available if you want to downsize as well. It may even be prudent depending on how the economy has affected you and your family. So remember, if you qualify for the tax credit based on the other requirements, you can get a bigger house (as long as it is under $800,000), a smaller house, or anything in the middle, it just doesn't matter

More and More People Still Buying Homes.

The housing market appears to be gaining more and more stability as we close out 2009. Pending home sales, as tracked by The Pending Home Sales Index, have risen for nine months in a row The index was created in 2001, and this is the first time it has had that many increases in a row. The Pending Home Sales Index is now at 114.1, which is up from 110.0 in September. You don't need to know how they come up with the number, it just means that more homes are going under contract each and every month. The highest the index has ever been was in March 2006, when it topped out at 115.2.

Movin' on Up!

No, it is not just the theme song from the old television show "Good Times." It is what Colorado is doing in the state rankings of Real Estate appreciation. According to the Federal Housing Finance Agency, at the end of the second quarter of 2009 we were ranked 11th in appreciation rate for the previous year. At the end of the third quarter of 2009, we are now positioned in the number 9 spot. This speaks well for how Colorado is positioned economically to continue our upward trend out of the housing and economic recession and into a period of more stability. If you are thinking of purchasing a new home there is literally no better time. As of this writing, 30 year fixed rate loans are around 4.75%, there is a government tax credit for new and repeat home buyers, and Real Estate is poised to start it's upward swing in 2010.

Real Estate Forecast for 2010.

Each month the President and CEO of Coldwell Banker Residential Brokerage in Colorado sends out a piece of information that is designed to give our clients a dose of reality. Apply named the "Reality Check", it's purpose is to give accurate and up to date information that is not sensationalized by media outlets. I hope you find this latest Reality Check interesting and informative. Here is the link:
http://www.discovercbtoday.com/DENVER/realitycheck/09December/DVDecemberArticle.html

Homes for the Holidays

Every year I have clients ask me if the holidays is a good time of year to have their home on the market or if they should wait until after New Years. I always say that during the holiday season is one of the best times of year to be on the market. Here are several reasons:

1. Your home is decorated to the hilt and generally looks very festive and inviting, not to mention that you may have just baked a fresh batch of yummy smelling cookies just before a showing!

2. Thanksgiving and Christmas are the two biggest holidays when people visit family. I cannot tell you how many times I take buyers to see homes around the holidays because their family is in town and they want to go looking together. Or perhaps the family is considering moving to town and they are only going to be visiting during the holidays, so that is when they need to look.

3. In the peak of summer alot of showings on homes are from people just thinking of entering the market or from tire kickers. During the holidays, only serious buyers are out looking for homes. A showing during this time of year is only coming from someone who means business and wants to move now.

4. This year there is the added bonus of the tax credit for purchasing a home that many people are trying to take advantage of. You have to be under contract by April 30th, so people want to make sure that they are not being rushed into buying, they are already out checking into the available options.

Extended and Expanded Tax Credit!

President Obama signed into law the Unemployment Compensation Extension Act (H.R. 3548) that included, as an amendment, the extension and expansion of the Homebuyer Tax Credit.
The new bill calls for an incentive for existing homeowners who have owned their current homes at least five years, making them eligible for tax credits of up to $6,500 when they purchase a new home. First time homebuyers – or anyone who hasn’t owned a home in the last three years – would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010 and close by June 30.

The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

The National Association of Realtors has put together some good documents to help you understand and explain the tax credit to your clients. They include an FAQ and an overview of the tax credit changes.

As always, call me to find out if you can take advantage of this great opportunity of the tax credit and extremely low interest rates.

All Real Estate is Local.

One of the hardest things about being a Real Estate Agent in Fort Collins is educating buyers and sellers about the facts of our local market. Obviously, Northern Colorado is not immune from what happens with the national economy, but I think that we have many unique characteristics that help us to weather the storm better than others. Remember, real estate is like the weather, you can't check the forecast in Texas when you are trying to decide what to wear today in Fort Collins, and you can't listen to the national media when trying to figure out what is happening in the Northern Colorado real estate market. I routinely compile information on how our local market is doing. For your free copy of the latest information, just give me a call or shoot me an email.