A December 28 WSJ article reports that, “Today the government, directly or indirectly, underwrites nine of every 10 new residential mortgages, nearly twice the percentage before the crisis.”  Regarding  Charlotte homes, if 9 of 10 loans are conforming to the limit of $416,000 then home markets which sell in this price range and below should continue to solidify, however the secondary market above this loan limit remains less certain.

Some of the basics are:

If you’re married, you and your spouse also must pass the consecutive-year test.

Homes valued at $800,000 or more do not qualify.

A first-time buyer does not mean a person who has never purchased a home. The IRS defines a first-time buyer as anyone who has not owned a principal residence during the three-year period prior to the purchase.

For married taxpayers, the law tests the homeownership history of both the homebuyer and his/her spouse.

For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse would qualify for the first-time homebuyer tax credit. However, spouses could be eligible for the repeat buyers’ $6,500 credit.

Unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter.

Key Dates:

Nov. 7, 2009: For current homeowners, the home must be purchased on or after Nov. 7, 2009, to qualify for the credit.

April 30, 2010: Purchase and sales agreements must be dated by all parties with a date on or before Friday, April 30.

June 30, 2010: Purchases must close on or before Wednesday, June 30.

For more information contact Helen Adams Realty at 1800-851-5253 or visit our website.

The following is an excerpt from the July edition of Moody’s economy.com, and if you would like to read the entire report it is posted on our website, click here.

“Although house prices are not expected to stop falling before mid-2010, the pace of decline will be slower than the national average. Unlike the worst hit housing markets in the nation, Charlotte’s housing market is not oversupplied. Rather, rapidly rising unemployment and income losses are the main culprits behind the area’s weak housing market. Despite the persistence of these negative fundamentals, foreclosures have edged down recently, according to data from Realty Trac.

Median house prices also fell less than at the national level. Although these developments provide some hope that Charlotte’s housing market is headed toward stabilization, the above-average unemployment rate will come in the way of faster progress. The lack of improvement in home sales despite lower interest rates earlier this year illustrates this point.

Although job losses have abated somewhat, the recovery of the Charlotte economy will be weaker than had been expected earlier this year. Restructuring in the banking industry will result in a below-average short-term performance. The fallout from housing and global credit issues is adding stress to financial firms and the business service companies that support them. Nevertheless, Charlotte still has advantages in its highly educated workforce, mix of industries, and comparatively low living and business costs. In the long term, Charlotte is expected to outperform the U.S. Economy.”

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.

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