Now, The Rest of The Story

There is no doubt that during the past few years we have all been inundated with news about the Real Estate industry, not only in our area but across the country. Stories of how the economy has impacted home sells and home values. Now, more than ever it has become common place to discuss the current housing market with community members, people are curious to know what is going on locally. Unfortunately, due to the constant bombardment of negative information about the national housing market, it is an expected assumption that it must be the same in the Tri-State area. There is no question that home values and home sells have been decimated in parts of the United States. There are regions where home values have decreased by more than 35% and home sells by more than 45%. I am happing to report that the data simply does not tell the same story for the housing market in the Tri-State. Allow me to provide you with what may be encouraging and somewhat surprising information from the 2009 data base of the Huntington Board of Realtors.

Huntington Board of Realtors 2009 data compared to 2008

•Home Values increased by one percent (1 %) on average

•Home Sells Volume (dollar amount) increased by one percent (1 %)

•In 2009 there were a total of 1,284 homes sold as compared to 1,284 in 2008, no change.

•The average Sell Price of a single family home in 2009 was $130,761 as compared to $130,545. in 2008, a slight increase in 2009.

January of 2010 compared to January 2009

•29% increase in Residential units sold

•32% increase in dollar volume on Residential units sold

•3.4% increase in Average Residential Sell Price

As you can see over the past thirteen months the local real estate market has remained steady. In addition, the start of 2010 is showing an encouraging trend.

There are many reasons that the Realtors in your community are optimistic about the future of home sells on the local level.

•Interest Rates remain near all time lows. Which of course allows you to buy more home for the same money.

•First Time Home Buyers Tax Credit incentive has been extended into 2010.

•Repeat Home Buyers Tax Credit offered in 2010.

It is a Great Time to Buy or Sell

As a portion of the United States 2009 Economic Stimulus Package, the incentives below explain a couple of reasons why there are an abundance of qualified Buyers in the market to purchase a home now!

First-time Home Buyer Tax Credit

•The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not

owned a principal residence during the three-year period prior to the purchase.

•The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.

•The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

•The tax credit applies only to homes priced at $800,000 or less.

•The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding

sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

•For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and

$150,000 for married couples filing jointly.

•For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up

to $225,000 qualify for the full tax credit.

Move-Up / Repeat Home Buyer Tax Credit

•To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.

•The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.

•The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.

•The tax credit applies only to homes priced at $800,000 or less.

•The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010.

However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.

•Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

Jeff Maddox, President
Huntington Board of REALTORS