The market did a stutter step on us with the home buyer tax credit deadline; first, a rush to close on contracts by November 30, then a pause in the market for the first 7 days of the month as the market waited for news on whether the tax credit deadline would be extended.

On November 6, 2009, the $8000 First Time Home Buyer Tax Credit deadline was extended until June, 2010 (along with a new tax credit offer of $6,500 to existing homeowners), and now the market has begun to move forward again. Please see the document below for details on how these tax credits may be applied.

The general thinking is that the returning strength in the market is at entry price levels and as this price level firms up the next higher price level will begin to strengthen in sequence too.

National real estate coach, Zan Monroe (www.zanmonroe.com), reported in this month’s monthly Ninja coaching session that, according to statistics furnished by the National Association of Realtors, when a seller sells their home they “buy up” by 50%. This means that a homeowner who sells their home for $300,000 will buy their next home for $450,000. Zan also noted that most sellers select a new home which is less than 4 miles form the home they previously sold.

On Friday, November 6, President Obama signed  a bill to extend the $8000 tax credit for first-time home buyers until June 2010.   First-time home buyers will receive the $8000 tax credit if they sign a contract by April 30, 2010 and close on the home by June 30, 2010.  The new bill also will provide a $6500 credit  for homeowners who purchase a new primary residence, and have lived in their current home for at least five of the previous 8 years.

The bill has a few provisions including:

* Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

* Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

The bill also introduced 20 weeks of unemployment benefits in states with jobless rates above 8.5%.  States with unemployment rates below 8.5% would provide 14 weeks of unemployment benefits.

The bill also provides refunds on profit taxes for businesses that had operating losses in 2008 and 2009.

Click below for the First Time Home Buyer Tax Credit Form:

CNBC, along with many other financial news services report that “First Time Home Buyers” are rescuing the housing market.  CNBC reports that given the success of the first time home buyer credit to date and the need for qualified buyers to absorb the inventory coming from additional foreclosures next year that the extension of the credit will help stabilize the market.

To read the full aritcle visit click here, CNBC.

My personal feeling is that BOA isn’t going anywhere!  Do we really care where the CEO lives?  BOA owns TOO much real estate here in Charlotte and to sell it and purchase FAR more expensive real estate in NY is ludicrous!  And, to whom are they going to sell it?!

Also, imagine the cost of relocating the administrative personnel to NY and the taxes that they’ll spend well above and beyond those here in Charlotte.  Those three items would deter any business from relocating from ‘reasonable’ Charlotte, NC to ‘exorbitant’ New York! 

I had a conversation with John Lassiter, and he feels the same way.  The city and the Chamber are both working towards a more appealing business climate here in Charlotte and I think we’ve always been ahead of the curve with small and large business relations here in Charlotte.  Over the last decade, Charlotte has been one of the most forward-thinking metropolitan areas in the country—that is expected to continue with new leadership.

 Just my humble opinion!

 Debe

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On October 14, 2009, Helen Adams Realty President, Jeff Adams, gave a 2010 Residential Real Estate Forecast for the Charlotte, NC market and its surrounding counties.

Click here to review the speech by Jeff Adams, which accompanies the PowerPoint below.

Good Morning Everyone:

Yesterday, Ken Lewis, one of the titans of Capitalism and the financial services industry, announced his retirement. I am in awe of all that he accomplished during his long career with Bank of America. He leaves his company and Charlotte in a much stronger position to face the future.

Acquisitions and growth under his leadership now place Bank of America as a nationwide market share leader in consumer retail banking, corporate and investment banking and brokerage, credit card lending and residential mortgage lending. Mr. Lewis is known as hands-on, detailed oriented executive. He helped his company grow into many different businesses, each with focused leadership needs of their own. Perhaps it is now time for a more decentralized approach. Now is the time to let these businesses and their people flourish in their respective environments, and now is the time to let them be held accountable for their performance.

In fact, decentralization is the direction Lewis is heading as witnessed by the recent appointments he has made to run his various businesses.  Many of these business heads are located in places other than Charlotte. As Charlotteans we should not worry too much about where the future leader of Bank of America resides. Charlotte is the sphere of influence of the Bank’s retail headquarters just as Wall Street is the sphere of influence for investment banking. Bank of America is home grown and its legacy benefits us all.

Click here to see a September 21 Wall Street Journal editorial calling Mr. Lewis the Banking Scapegoat of America. And, as Gary Shilling puts it, “When a lot of people lose a lot of money, there is a cosmic need for scapegoats and increased regulation.” The point of the editorial is that maybe we should thank Mr. Lewis for coming to the rescue back in December when he moved forward with the decision to purchase Merrill Lynch at time when all of the financial industry was on the precipice of collapse.

Last week I wrote to Mr. Lewis to thank him for all that he has accomplished (and to invite him to the Helen Adams’ 2010 Residential Real Estate Forecast Event!). For those of you who have a desire to write and thank Mr. Lewis for all of his accomplishments I have attached his address below:

Mr. Kenneth D. Lewis

CEO & President

Bank of America Corporate Center

101 N. Tryon Street

Charlotte, NC 28255

I hope to see all our agents, their guests and our staff on Wed. October, 14 for our 2010 Charlotte Residential Real Estate Forecast Event!

The September 2009 Charlotte Real Estate Market Activity Report is now available.  Feel free to contact me if you would like to receive these updates via email:  hhester@helenadamrealty.com .

Click on the image or link below to see my detailed summary: 

September 2009 Charlotte Real Estate Market Activity Report

The average closing price for the Charlotte area in August 2009 was $209,245, down approximately 9.3 % compared to 2008.  Average days from listing date to closing was 145.9 in August.
There were 2221 total closings in August 2009, down 10.1% compared to 2008.  Sales are holding steady compared to last month, which reported 2223 total closed sales in July 2009.
The bulk of home sales continues to be in the lower price ranges, with 87% of sales in the $350,000 and under category.  I expect this trend to continue based on current market conditions.