It was an interesting week in DC meeting with Congressmen and trying to get answers on real estate oriented bills. It is scary that they are not willing to extend the National Flood policy for one year because they can’t figure out how to fund it. So what happens now that they have passed a national health bill. Will they do the same thing? This is very scary!!
According to a press release by the Charleston Trident Association of Realtors, the Charleston area real estate market is showing very promising signs of improvement during the third quarter of 2009! I’m not one to count my chickens before they hatch, but the figures don’t lie. Inventory sits at it’s lowest level all year and December is the third consecutive month of increasing sales, 80% already over November, and a higher median price! Granted, some of this may be attributed to the tax credit posed to end November 30 that has now been extended to the end of April, but I have never been one to look a gift horse in the mouth either!
The extension on the Tax Credit for home buyers has been approved! The credit was extended to cover all buyers. The credit now covers current home owners who are looking to buy as long as they have occupied their house for 5 consecutive years out of the last 8. It still applies to first time home buyers for an $8,000 tax credit. A website has been set up to explain the tax credit and hopefully it can answer any questions you have. Please click here to visit the website. The extension is only for 7 months so if you looking to buy, now is the time! The credit is only valid through April 30,2010 so act now!
If things go as planned, President Obama will sign off on a 7 month extension of the first time homebuyer tax credit, extending it until April 30, 2010. While the credit amount remains the same for first time homebuyers, there are a few amendments made to the package that open it up to more consumers. The tax credit will now apply to first time homebuyers, or homebuyers who want to “move up.” Anyone who has been living in their current residence for at least five of the past 8 years and wants to buy a larger or better home qualifies for a $6500 tax credit. It is not necessary to sell your current home before receiving the tax credit, but it must eventually become your primary residence as the credit is not to be used for second homes. The credit has also expanded the income requirements to $225,000 for couples, a $55,000 increase from the previous limit. Stay tuned for updates on the final events of this extension as they unfold.
Click here to view the activity in Downtown Charleston below the crosstown for the month of August. Call us at 843-577-2900 for any other months you would like to see.
July had the biggest gain on a month to month basis since 1999. The gain was based on existing home sales, not new construction. Even though the median price of home sales fell economists believe that the market is trying to turn around.
Click here to read the full article.
According to The National Association of Home Builders and Wells Fargo, families making the nations median income of around $64,000 a year could afford 72.3% of homes sold in the second quarter of 2009!!!! Those of you who are waiting around, it’s time! There are programs in place in South Carolina that will give you up to $5,000 toward your down payment or closing costs and require only 3-3.5% down. Lets work out of this recession, shall we?
The $8,000 first time homebuyer tax credit is a fabulous incentive if you are ready to buy a house! If you have all your ducks in a row but your search has been fruitless thus far, it is time to step it up! In order to get this credit, you must have CLOSED on your new home by December 1, 2009. It is advisable to have a contract in place in October to assure that there is at least 45-60 days allotted for setbacks or necessary repairs scheduled to be made before closing. Please don’t be fooled by the word credit. You will actually receive a lump sum of money equalling the difference between $8,000 and what you owe once your 2009 return has been filed. If you do not owe money at the end of the fiscal year, you get the lump sum of $8,000 when you receive your 2009 return. Win/Win!
If there is a silver lining to all this foreclosure business, this is it! First time homebuyers are picking up these properties in distress and getting a fair shake at home ownership that many would say their seller counterparts weren’t privy to through predatory lending practices and abrupt economic shifts. Half of all transactions in the first quarter are attributed to first time buyers, and nearly half of those sales were distressed properties, helping to clean up the current state of the housing market one sale at a time. Lending standards are now much safer protecting not only the lender themselves, but the consumer as well, and distressed properties are ripe for the picking. One by one these homes are being sold and not only healing the economy and the housing market, but perpetuating the cycle of responsible homeownership at an affordable price for qualified buyers only!
There is a bill making it’s way through the legislative process that would eliminate the point of sale tax assessment that replaced the previous 5 year assessment cycle. The point of sale tax assessment has been held responsible for escalating tax bills as well as the dissolution of countless real esate transactions in both the commercial and residential sectors. The plan is to revert back to the 5 year assessment cycle, righting what many have felt to be a major wrong since 2007. Stay tuned for news and updates on this important issue as it progresses.