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.
On October 14, 2009, Helen Adams Realty President, Jeff Adams, gave a 2010 Residential Real Estate Forecast for the Charlotte, NCmarket and its surrounding counties.
This informative presentation:
Reviews of the history of government involvement in the real estate industry, provides a review of Charlotte’s history of residential sales, a forecast for residential sales in 2010, an overview of Charlotte’s future growth, and a call to action to support Charlotte’s Public Schools.
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:
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:
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.
There were 2223 total closings for July 2009, down 18.4% compared to 2008. The bulk of home sales continues to be in the lower price ranges, with 87% of sales in the $350,000 and under category.
just wanted to send a quick testimonial to let you know that my first transactions at Helen Adams went as smooth as possible due to the excellent customer service that Chris Tilley provided my client.
I had a client who was as nervous as they come and went to a big bank to try and get a loan. They would not give him the attention and customer service that he was wanting and I almost lost the deal. I recommended Chris to him and FINALLY he agreed to meet with Chris. Chris went out of his way to meet with him in person during a lunch hour and assured him that he could help him move in to a new home. Chris was always available to me when I called or emailed. He truly eased my client as well as my mind during the entire process. I will recommend Chris to any of my clients in the future. His customer service and professionalism are a true asset that I can share to all of my future clients. I feel fortunate to be part of a company that has such a team environment. I look forward to a bright 2012!
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