Raleigh, NC

New Home Trends

Top Trends in New Homes

Today's Homes are Smaller, Cozier, and More Energy Efficient

Here's what homebuyers and builders are focusing on in today's new home market!

- Focus on Smaller Homes

Many builders are shifting from a focus on homes in the 2500 to 3500 sq ft range to homes mainly in the 1600 to 2500 sq ft range. The average and median square footage in new homes has dropped for the first time in many years. Smaller homes cost less too!

- "Great Room" Instead of Formals

More homebuyers are looking for a "Great Room" concept - one large room adjoining the kitchen for entertaining and everyday living, instead of a smaller Family Room and Living Room.

- Fewer Volume Ceilings

9 foot ceilings are still fairly standard on the first floor, but there is a decreased demand for vaulted or two story ceilings. A floor plan that offers a two story room can be "expanded" for very little cost, with a bonus room or game room added over the family room.

- More Focus on Floor Plan, Less Focus on Features

Homebuyers and home builders are opting out of many of the expensive options they were more likely to choose a couple of years ago, in order to keep overall costs in line.

- More Elaborate Kitchens, But Smaller Dining Rooms

The kitchen has become a focal point of the home. We cook, entertain, and even eat here, at large islands and seating areas. In some homes, the formal dining room disappears altogether, replaced perhaps with a home office.

- Three Car Garages

There has been more demand for larger garages, but space can get creative to save on cost. Tandem garages, where one car parks behind another, can save on the cost of an additional door, and might be more cost effective to build. Or garages may have a "workshop" or "storage" area or extension.

- Energy Efficiency

According to several recent surveys, many homebuyers are willing to spend anywhere from $5,000 to $11,000 or more to make sure that their monthly energy costs are much lower. ENERGY STAR and the Energy Wise program both offer lower energy costs. Energy Wise guarantees 50-70% savings on heating and cooling.

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Looking for a new home? You may want to check out some of these other ideas!

Staircases - Ideas For Your New Staircase

Geothermal Becoming More Affordable - How the Tax Credits Work

How Much Does a Septic System Cost? Tips to Keeping Your Lot Affordable

Butlers Pantries - Why You've Gotta Have One (and what is a butler's pantry, anyway?)

Fireplace Surrounds - Types and Trends

Meet the Builder Special Event

5 Easy Steps to Buying a Lot or Land

Top 10 Master Bath Trends

Browse floorplans online, or request more information today!

Call 919-278-8070 or visit www.StantonHomes.com.

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Copyright Stanton Homes 2009. Provided for informational purposes only.

Stanton Homes Offers Up to the Minute Updates - Right at Home

We're so excited!

Thanks to Feedburner, Stanton Homes now offers a blog feed right on our website. It's clean, neat, and full of all of our favorite topics and top requested articles.

We've worked very hard to put together topics that are interesting, useful, and ORIGINAL.

Topics include:

• New Home Ideas and Design Trends
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• New Home Communities, Lots and Land in the Triangle
• Floor Plan Ideas and Trends
• Raleigh Area Market Reports

and much more!

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Copyright Stanton Homes 2009 - New Home Builders Raleigh NC

Expanded Version of Tax Credit Will Allow More Homebuyers to Qualify

RISMEDIA, November 9, 2009-President Obama recently signed an expanded version of the $8,000 first-time homebuyer tax credit that was set to expire on November 30. "The new version of the tax credit has the potential to stimulate the housing market even more than the old version due to the fact that more people will qualify under the new rules," said Gibran Nicholas, Chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers. "Although the tax credit remains at $8,000 for homebuyers that have not owned a primary residence in the last three years, it has been expanded to include a $6,500 tax credit for homebuyers that have lived in their current primary residence for at least five consecutive years out of the past eight years. Under the old rules, move-up homebuyers did not qualify." Consider these three examples:

Example 1:
Jane purchased a home in 2002, lived there for 5 years as her primary home, moved out in 2007, and turned that home into a rental property. If Jane decides to buy a new primary residence today, she would qualify for the $6,500 tax credit based on the fact that she lived in the same residence as her primary home for at least five consecutive years out of the past eight.

Example 2:
Harry purchased a home in 2004, and lived there for the past 5 years as his primary home. If Harry decides to buy a new primary residence today, he would qualify for the $6,500 tax credit based on the fact that he lived in the same residence as his primary home for at least five consecutive years out of the past eight.

Example 3:
Nicole purchased a home in 2006, and lived there for the past 3 years as her primary home. If Nicole decides to buy a new primary residence today, she would not qualify for the $6,500 tax credit based on the fact that she did not live in the same residence as her primary home for at least five consecutive years out of the past eight.

The tax credit applies to homes purchased for less than $800,000 before May 1, 2010. "If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010," Nicholas said. "It works kind of like a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit."

The income limitation for single tax payers went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000. "This means that more people will qualify for the credit - especially in parts of the country with higher costs of living," Nicholas said. "This should help stimulate parts of the housing market that may not have been impacted by the old version of the credit."

There are many creative ways of structuring your home purchase transaction in ways that maximize the benefits of the credit. Here are a few examples:

-The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence - you could live in one unit and rent out the others

-If two unmarried individuals buy a home, and only one of the individuals qualifies for the credit based on their income or past home ownership status, the individual who qualifies for the credit can claim the full credit. (Note: In the case of married couples, both spouses must qualify for the credit).

-The credit applies even if you have co-signers on your mortgage loan

For more information, visit www.CMPSInstitute.org.

Read more: http://rismedia.com/2009-11-08/expanded-version-of-tax-credit-will-allow-more-homebuyers-to-qualify/#ixzz0WMeYEhKw

First Time Homebuyer Tax Credit Approved

Homebuyer Tax Credit Expanded to Additional Homebuyers

The Worker, Homeownership and Business Assistance Act of 2009 was signed into law on Nov. 6, 2009. This legislation has extended and expanded the first-time homebuyer credit.

Changes in the new law:

• Extends deadlines for both purchasing and closing on a home.
• Adds a credit for long-time homeowners buying a replacement principal residence.
• Homebuyers with higher incomes may now be eligible.

Extended Deadlines for the First Time Homebuyer Tax Credit

An eligible taxpayer must sign a binding contract to buy a principal residence no later than April 30, 2010. The home purchase must close by June 30, 2010. (In most cases, it takes 30-60 days from date of contract to actual close of purchase).

Homebuyers that qualify than then claim the first time homebuyer tax credit on either their 2009 or their 2010 tax return.

Tax Credit Expanded to Additional Homebuyers

New to this tax credit - if you've owned a home within the last eight years for a significant amount of time, you may qualify for a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately).

Homebuyers must have lived in the same principal residence for any consecutive five year span out of the past eight years. The new home purchased must also be the homebuyer's principal residence.

Homebuyers with Higher Incomes Can Now Qualify

The new law raises the income limits for homebuyers purchasing after November 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009.

Just the Facts - $8,000 First-time Home Buyer Tax Credit.

• The $8,000 tax credit is for first-time home buyers only. In this case, 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.
• 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 or before April 30, 2010. A binding sales contract must absolutely be signed by April 30, 2010. However, some additional time is allowed to complete the sale and "close" - the close must occur by June 30, 2010.
• Income Levels that Qualify: for homebuyers who 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.
• Expanded income levels: for homebuyers who purchase 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.

Just the Facts - $6,500 Move-Up / Repeat Home Buyer Tax Credit.

• Homebuyers must have owned and lived in their previous home for five consecutive years out of the last eight years in order to be eligible to claim the tax credit. (for example, if you lived in your home from 2002 to 2007, sold in 2007, and have rented since, you would qualify)
• The tax credit does not have to be repaid.
• 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, some additional time is allowed to complete the sale and "close" - the close must occur by June 30, 2010 - but that contract must have been signed by April 30th, by both seller and buyer.
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

* Please consultant a tax professional for accurate up-to-date advice and/or guidence on qualifying for this credit. Stanton Homes does not offer tax advice, and offers this guide for general informational purposes only.

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Locations for your new home available in Angier, Apex, Benson, Bunn, Carrboro, Cedar Grove, Chapel Hill, Clayton, Coats, Creedmoor, Dunn, Durham, Fort Bragg area, Fuquay Varina, Garner, Graham, Haw River, Hillsborough, Holly Springs, Knightdale, Lillington, Mebane, Moncure, Morrisville, Raleigh, Rougemont, Siler City, Wake Forest, Willow Spring, Willow Springs, Youngsville, Zebulon, Alamance County, Harnett County, Johnston County, Lee County, north of Fort Bragg, and more!

Did you know that on-line home valuation monster Zillow.com has a chief economist? I like that they do because I feel opinions like his are market driven and not reports written for stock analysts.

Read New Homebuyer Tax Credit Proposal: Impact on the Housing Market by Stan Humphries. In his post he writes "Until now, we've been predicting that home values will likely bottom in the second quarter of 2010. But the tax credit could change that substantially, for several reasons." Following the guidelines of supply and demand and points out that the tax credit will increase demand but the addition of move-up buyers now included in the incentive will have an impact on supply and ultimately home prices. For a move-up buyer to take advantage of the incentive, they must first sell their existing home. With the incentives in play, what will happen to home prices?

The extension of the tax credit to existing homeowners brings not just demand into the market, but also an equal amount of supply (i.e., they have to sell their home in order to buy another). The existing tax credit to first-time home buyers was pure demand. Every buyer that was spurred to enter the market helped push inventory levels down by increasing demand relative to supply. With the existing homeowner tax credit, current homeowners are trading homes between themselves. What will be interesting to see is whether this game of musical chairs unfolds in an orderly fashion (i.e., some homeowners buying a new home before selling theirs; others doing the opposite) or whether skittishness about the market will lead more homeowners to try to sell their home first before buying a new one. The latter scenario could lead to more near-term supply than demand, which will push inventory up and prices down.*

My response:

You make some good points but I think your insight about inventory levels increasing and prices decreasing could be a book in itself. I would compare it to using software to predict storm paths like hurricanes, there are so many variables that it would take years of theory development to draw any viable conclusions. Now that we are adding a human element to the equation, get ready to be stymied.

Our growth in the Raleigh, NC real estate market has taught me an important fact: New construction will win 90-95% of the time when in direct competition with re-sale properties. People here who put their homes on the market for no other reason than they want to take advantage of the tax credit will not have a major impact on prices. They lack the motivations that many current sellers have and I don't expect they will add much downward pressure on home prices in Raleigh.

Even when our market was moving at a faster pace, our volume of new construction homes kept re-sale prices in check. Builders are adjusting their pricing through the margins they charge and the type of inventory they build. New homes are cheaper now than in 2006 and will continue that way for the next few years.

Only pocket areas of high desirability really saw bloated appreciation.

My prediction for Raleigh:

Prices will stay flat through winter with small, incremental increases through 2010. An outstanding year to buy in our market for individuals that will live in their home at least 3-5 years.

(Part of my thinking stems from forecasts of 3.5% growth/year through 2025).

This post was originally written for my regular blog. Raleigh Real Estate News. You maye read more available stories at http://www.gravesrealtyassociates.com/raleigh-real-estate-news-blog/

*Stan Humphries.New Home Buyer Tax Credit Proposal: Impact on the housing market. Zillow Blog. 11/06/09. http://www.zillow.com/blog/new-homebuyer-tax-credit-proposal-impact-on-the-housing-market/2009/11/05/#comment-192965