Below is a comment or more of a question to a blog I wrote on the extension of the first time home buyers program and the new credit to entice existing homeowners.
I was asked to remove his comment from my post as he realized it was public and was worried his contact information would be made public, which it wasn't. Gaylord asked an excellent question and in short I fell we all should know this answer to his question. In short he owns 2 homes and which one is his primary residence.
My response was a residence where he lives for greater than 6 months and he should check with his accountaint. What are your thoughts?
Below is Gaylord's question:
You write, "Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years." We hope to clarify an ambiguity.
We have owned A home as primary residence continuously for more than five years and more than eight years, but our present primary residence comprises only the last 3 to 4 years of the period. Thus, our question: When you say "occupied a primary residence" does than require it to be one specific primary residence that qualifies, or can we link two primary residences to satisfy the time standard?
We wish to liquidate present home equity and reinvest a large part of the equity liquidated in a new home, taking out some of the equity to replace our loss incurred in the last 3 or 4 years in investment savings. We are 75 and 70 years of age, without current earnings income.
Thank you
Gaylord
2009 Calendar November "Come Home for the Holidays"
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Our History
During the 125th anniversary celebration of Transylvania County, NC in 1986, hundreds of people signed a petition encouraging the formation of a county museum. The Jim Bob Tinsley Museum, a non-profit organization, was opened in May 1994 in Brevard, NC. The museum provided free public access to the lifelong collections of Jim Bob and Dottie Tinsley. Artifacts, paintings, drawings, sculptures, engravings, and research materials associated with the ten books Jim Bob Tinsley had published were on display. Bill Tinsley, Jim Bob's nephew, expanded the concept of the museum to include a Family Research Center.
In 2003, Tony Morrow, Director of the JBT Museum, convened a group of interested individuals and representatives from organizations in Transylvania County, and the Transylvania Heritage Coalition (THC) was formed. The THC, now the ruling body of the Transylvania Heritage Museum, was incorporated by the State of NC and a 501(c)(3) tax-exempt status was received from the IRS. This means donations and other gifts are tax deductible.
On December 23, 2007, the Jim Bob Tinsley Museum closed, making the space and many assets available for the Transylvania Heritage Museum (THM). Thanks to volunteers as well as Exhibit Planner Anna Fariello of Curatorial Insight, the THM opened in May 2008. It now houses temporary and permanent displays of heirlooms, artifacts, genealogical exhibits, vintage photographs, and other exhibits reflective of the history and heritage of the county.
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Home Sales Rise For Record Eight Straight Months
Washington, November 02, 2009
Pending home sales rose again, marking eight consecutive monthly gains - the longest streak since measurement began in 2001, according to the National Association of Realtors®.
The Pending Home Sales is a forward-looking indicator based on contracts signed in September, rose 6.1 percent to 110.1 from a reading of 103.8 in August, and is 21.2 percent higher than September 2008 when it stood at 90.9. The gain from a year ago is the largest annual increase on record, and the index is at the highest level since December 2006 when it was 112.8.
Yun the NAR chief economist said the momentum is understandable. "What we're witnessing is a rush of first-time buyers trying to beat the expiration of the tax credit at the end of this month," he said. "Home values will stabilize sooner rather than over-correcting. That, in turn, will mean wealth stabilization for the vast number of middle-class families and lay the foundation for a durable economic recovery." NAR estimates approximately 3 million renters are now financially well-qualified to buy a median-priced home. "As long as buyers do not overstretch and stay well within their budget, a sizable pent-up demand can be tapped among financially qualified potential buyers," Yun said. "Although the tax credit is greatly reviving the existing home market, new-home sales may continue to struggle as home builders hold back production to drive down inventory. In addition, there remains an ongoing credit crunch for construction loans."
The Pending Home Sales Index in the Northeast slipped 2.0 percent to 83.6 in September but remains 16.9 percent above September 2008. In the Midwest the index rose 8.1 percent to 98.2 in September and is 17.8 percent higher than a year ago. In the South, pending home sales increased 4.9 percent to an index of 109.7 and is 22.8 percent above September 2008. In the West the index jumped 10.2 percent to 143.8 and is 23.7 percent above a year ago.
Yun added that strong near-term reports should not be overstated. "We're clearly not out of the woods because an excess of homes remains on the market despite recent improvements," he said. "Although current inventory is getting closer to price equilibrium, foreclosures will continue to enter the pipeline. An extended and expanded tax credit would help absorb this incoming inventory."
The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.
A forecast for housing and the economy will be released November 13 at 11 a.m. PST at the 2009 REALTORS® Conference & Expo in San Diego. Existing-home sales for October will be reported November 23 and the next Pending Home Sales Index will be on December 1; release times are 10 a.m. EST.
http://www.homeinbrevard.com/newspost509-home-sales-rise-for-record-eight-straight-months.aspx
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My wife & I better known as the Kaiser Team in Brevard NC. Dedicated to Providing a superior level of informed, professional real estate services to buyers & sellers. SRS-ABR certified.
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