6500 ways to cash in for the not so first time buyers

Sellers who couldn’t sell their home in 2009 should be feeling a little  lucky.  The housing stimulus bill that Congress just passed will undoubtedly put a silver lining on some of your clouds.  The newly expanded housing stimulus offers tax incentives to all buyers provided they meet eligibility. 

A $6500 tax credit will be available to buyers who have lived in their home for five consecutive years within the past eight years.  You must have a signed valid contract by April 30, 2010 and settlement (closing) must take place before July1.  The income restriction has been expanded to singles earning up to $125,000/year and couples with a combined income not exceeding $225,000.  The cap on the purchase price is $800,000; homes sold at even a dollar above will not be eligible. 

I am not sure this will have a huge impact on the $800,000 housing market.  Most buyers in this price range will not be swayed by less than one percent incentive.  The luxury home market faired a bit better in 2009 as people with cash stores took advantage of discounted properties.  I expect the mid range $300,000 to $600,000 sellers will benefit from this program through spring.  This offer will surely be beneficial to buyers as well as sellers who have had to sit on the sidelines waiting for a better market.  More importantly, we can remian optimistic that this may provide relief for sellers who are trying to avoid foreclosure.

$8000 home buyer tax credit extended and expanded

Not just for the first time home buyer anymore!  The oh so popular $8000 first time buyer tax credit will be extended and expanded officially at any moment.  Congress has passed a bill to extend the original Dec 1, 2009 deadline to include buyers who are under contract by April 30th and closed no later than end of June 2010.  This is great news for first time buyers who just couldn’t get it together or find the right home by now.

The bill will also allow all buyers to cash in, provided they have been in their home for at least five years and they are purchasing a primary residence.  Even more exciting is that the income limit has been increased from $75,000 annual salary for singles and $150,000 for couples.  The new income limit is $125,000 for singles and $225,000 for couples. 

The new policy will be official as soon as Obama signs the bill and shortly after the official website should be updated with the details.  www.federalhousingtaxcredit.com  Lawmakers are hoping that the extension will get the real estate industry through the difficult winter months and jumpstart the spring market while being short enough to be fiscally responsible.

Briar Chapel; artsy and green development

Briar Chapel has dominated sales in the Chatham County market this season.  The new construction homes are green, affordable and beautiful.  It is always interesting to me to see the public’s perception.  I was recently at a small party and a woman was describing the community as “artsy”.  I didn’t know what neighborhood she was talking about until she explained more about the community and the location.  I hadn’t thought about the artsy part.

The community entrance has a stone wall and metal sculpture and artfully placed huge pottery vases here and there in the landscaping.  She told me that she rides her bike there and there is art sculpture and stylized gardens throughout the common areas.  She also said that it is a great place to ride due to the low traffic.  I am usually very observant, especially with regard to art and gardens but on this instance, I missed it.

I am not surprised that the community has done so well…buyers love new construction.  The homes offer stylish details, lots of upgrades, use of sustainable materials and building practices and great floor plans.  What you won’t get is a yard.  You will trade off having your own space and privacy for the use of the beautiful community amenities and common areas.  The homes may seem like a great value and they are if you are not planning to move in the next 5 or more years.  Buyers should know that this is an enormous development, construction will be ongoing.  When it is time to sell, you will have to beat the builders and have your home show in new condition in order to compete.  Remember that the buyers who will be looking at your home in 5 years will be thinking the same way you did when you purchased your home.

Last note, I advise anyone who is planning to purchase new construction to bring their own buyer’s agent to represent their interest in the transaction.  On site agents work for the builder and represent the builder’s interest.  In NC, you have the right to have a buyer’s agent represent your interest in the purchase of a home.  I think buyers often make the mistake thinking they will get a better deal if the builder doesn’t have to pay their agent.  The reality is that the builder will pay the same commission and usually the seller’s agent will net commission from both sides when buyers are unrepresented.  Be sure to read the NC Working with Real Estate Agents Brochure,  which should be provided by your agent, and ask questions if you don’t understand it.

$8000 tax credit making a comeback in 2010?

It is looking more likely that congress will extend the first time buyer tax credit into next year.  However, nothing official has been announced yet.  There is a huge push to get the bill passed for another year and also to expand the bill to offer incentives to other buyers.  A bill being considered will give a $6500 credit to second time home buyers.  I have read in several articles that the Obama camp is in favor of extending the program that has helped to spur on a still sputtering housing market.

It is great news, but it is not too late to take the sure thing.  You still have time to close if you are approved and your seller is willing.  If you are trying to close before the current credit expires, you better git goin!

Capitalism, a love story offers hope for struggling homeowners

Foreclosure, short sales and pre-foreclosure: a sad story that has become a real life tragedy for so many.  In the triangle, our statistics show relatively low numbers, primarily because our housing prices remain stable with a small number of “upside down” sellers.  I saw the new Michael Moore movie, “Capitalism, a love story” last night and I am recommending it for every American but especially for homeowners who are struggling to make their mortgage payments.

The movie has the typical Michael Moore flavor, pitting big business against the struggling working class.  But, it contains some shocking revelations about the wealth in our country.  Moore brings some enlightening journalism to the screen with conversations with congresswomen who advise homeowners to  ”stay in your home if you are being foreclosed” and a statement that 1% of the US population now owns 95% of the wealth.

Moore’s message is a call for democracy in US government.  Much of the film points the finger at predatory lending practices, big banks and Wall Street’s connection to top level government driven by the greed that he says is the cause for the condition of the economy.  Moore manages to blend in quite a bit of humor and make a very serious message quite entertaining.

Bamboo growing in the US

Bamboo could be the panacea we are waiting for.  Many gardeners know bamboo to be a nasty invasive that runs all over and chokes out the native plants.  But thanks to the development of new “clumping” varieties, bamboo could be the green answer to a renewable product.  Bamboo may be the next agroforest product to save our planet and our economy.

Most people don’t realize and I don’t quite understand how bamboo turns into a soft wooly fabric blanket or a pair of socks.  This means that bamboo could replace cotton as a much more environmentally friendly agricultural crop.  Cotton depletes soil and requires a large amount of pesticides.  Bamboo is a grass, requiring little more than water and is virtually pest free.  

Bamboo is also a popular substitute for hardwood flooring.  It grows to maturity in just ten years; a fraction of the time for hardwood forest to renew.  It also is a much more effective carbon dioxide eliminator than trees. 

I love the look of bamboo floors and my only issue with bamboo is that it is 100% imported.  With the newly developed varities of bamboo, it looks like bamboo may quickly become the newest “green” product made in the USA.  To learn more about clumping bamboo, check out the bamboo that behaves at : http://www.booshootgardens.com/Homepage.cfm

Chapel Hill third quarter stats hard to read

Chapel Hill real estate stats are now available and I recently blogged about the triangle numbers.  I know I said I would be talking about this all week but it has taken me a week to find the impetus.  I have a quirk in my personality.  If I am excited about something, I will have contageous enthusiasm, move mountains and get others to help me.  However, the report is so ho hum that I had the opposite problem.

The August numbers are quite interesting.  When compared with Aug 2008,  there was negligible change in median and average sales price, total dollars sold and the percent of list price paid vs asking price.   August 09 sellers saw a significant increase in their days on the market, up 29% from 70 with an 09 average days on market over 90 days.  August 09 would be sellers are “just saying no”.  New listings were significantly down, a whopping 43% less sellers took the plunge in Aug 09 vs Aug 08… wow!

You might think this is a bad thing for buyers.  On the contrary, eventhough fewer sellers entered the market, lingering inventory pushed the volume of homes for sale up from 889 properties in 2008 to the 2009 inventory of 990 choices for buyers, (11% more).

As always, I am offering the detailed report to anyone who wants to see the actual numbers, graphs and comparisons.  It is just a click away, at www.mariescheuring.com

Triangle third quarter market data good for buyers

The third quarter triangle area market statistics are now available and there is so much to say that I will likely blog on this all week.  The overall market data paints a somber picture for sellers.  Buyers, however, have cause for celebration and hopefully motivation to get out there and cash in.

The number of new listings is down about 20 percent for the past two years.  This might make you think that this equates to a low inventory but that is not the case.  Although less homes are being listed, the average days on market has increased 14% from 2008 to 2009 and a total of 30% increase over the past two years.  This means that there is now over 9 months  inventory.  Homes are taking longer to sell, with 102 average days on market, up from 78 average days on market in 2007.  Two years ago, buyers did not have the luxury of taking their time.  Mulitple offers and the chance of missing out has been replaced by choices for buyers.

Median sales price is down slightly over the past two years which is good news for sellers and buyers.  It indicates a stablility in the triangle market when compared with other cities that experienced the real estate bubble.  Prices are down almost 5% over 2008, negating the increases we saw for average home prices in 2007.  Sellers who have been in their home over the two years saw a very modest loss while 2009 season buyers are seeing a more favorable price structure.

We can still be thankful that we live in an area where the average home price is very affordable at $226,000.   This price is very workable for the average person with an average salary and very affordable for a two income family.  We can also be grateful that our market exemplifies, “what you see is what you get”.  Despite the slow market, sellers are still getting close to their asking price with 96+% of asking price payouts.  This makes shopping for a home a little easier.  Buyers can be comfortable knowing that there probably was not a $500,000 home that sold for $300,000 and they didn’t miss out on the deal of a lifetime.

What this all says about our market is that this is a desirable place to live on many levels.   For any of my readers who want to have the actual data and graphs that comprise this report, please send me a quick email request or give me a call.  If you want to know more, with speicifics for market areas, stay tuned and read on through this week.

First time home buyer tax credit: it is not too late to cash in

There is so much buzz about the expiring tax credit in the news this week.  Every group related to the housing industry is pushing to extend and expand the housing bill.  I am telling my buyers they should not bank on the plan being extended.  Look what happened with the cash for clunkers deal.  Over, right?

One article I read stated that it was too late for most because the normal escrow time is 90 days.  That is nothing but an exaggeration.  Thirty day closings happen all the time and I see 45 to 60 days as my usual from contract to close time.  I have even done less than 30 days.  There are so many eager sellers, vacant properties and rented homes on the market that finding a home that can provide a quick closing will likely not be the problem.  Waiting to see if the tax credit gets renewed is risky.  Getting $8,000 back at tax time is too good to pass up.  Don’t wait hoping you will get more later, take the the sure thing now.

No additional bail out for Wall Street, no more cash for clunkers,…..

Durham Centerfest celebrates 36 years

Durham will have its 36th annual Centerfest this weekend, September 19th & 20th.  The event will give 117 artists from 9 states an opportunity to compete for prize money but more importantly, a chance to have a huge public audience see their works.  Artists will display paintings, photography, pottery, hand crafted jewelry and sculpture.  Stages will be filled with non stop entertainment including live music and dance. 

The triangle is a community that supports the arts in a big way.  This is a great opportunity to enjoy some family friendly entertainment and experience downtown Durham.  Centerfest has a helpful website with information and schedules at http://centerfest.durhamarts.org/index.html.