With my commitment to keep you updated on the current market, I have included an overview of the tax credit from the current Stimulus Bill in this months Housing Tidbits. There has been some confusion with the different aspects so I have included a chart below which shows the differences between where the original tax credit started to where it is today. The tax credit in the Stimulus Bill has been scaled down to $8,000 from its previous level of $15,000, or 10% of the value of the home for any first time homebuyers who purchase homes from the start of the year until the end of November. It starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000, and buyers will have to repay the credit if they sell their homes within three years.
In addition, there's news that the Obama administration is trying to hammer out a new program to subsidize mortgages to fight the credit crisis. The plan would seek to help homeowners before they fall into arrears on their loans, whereas current programs only assist borrowers that are already delinquent. There are no details yet on this plan, but I will be monitoring this news closely in the weeks ahead.
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FEATURE
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CREDIT AS CREATED JULY 2008 APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008
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REVISED CREDIT - EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009
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Amount of Credit
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Lesser of 10 percent of cost of home or $7500
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Maximum credit amount increased to $8000
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Eligible Property
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Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.
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No change All principal residences eligible.
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Refundable
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Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.
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No change Purchasers will continue to receive refund for unused amount when tax return is filed.
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Income Limit
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Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000).
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No change
Same income limits continue to apply.
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First-time Homebuyer Only
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Yes. Purchaser (and purchaser's spouse) may not have owned a principal residence in 3 years previous to purchase.
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No change Still available for first-time purchasers only. Three-year rule continues to apply.
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Revenue Bond Financing
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No credit allowed if home financed with state/local bond funding.
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Purchasers who utilize revenue bond financing can use credit.
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Repayment
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Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing.
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No repayment for purchases on or after January 1, 2009 and before December 1, 2009
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Recapture
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If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale.
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If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
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Termination
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July 1, 2009 (But note program changes for 2009)
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December 1, 2009
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Effective Date
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Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year.
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All revisions are effective as of January 1, 2009
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In addition, here is the market at a glance for Johnson County and Jackson County. You will notice that January took a drop considering where 2008 end. With the current interest rates and inventory available there is a strong buyers market opportunity.
Three Month Market Glance
Johnson County:
| ALL | Sold | # Sold | Average | New | # New | Active | # Active | Average |
| Month | Volume | Sale $ | Volume | Volume | List $ |
| January '09 | 58,443,619 | 252 | 231,919 | 303,830,483 | 1,006 | 1,473,952,124 | 4,217 | 349,526 |
| December '08 | 115,458,835 | 487 | 237,082 | 183,136,446 | 663 | 1,401,934,296 | 3,969 | 353,221 |
| November '08 | 100,839,046 | 400 | 252,098 | 186,716,828 | 665 | 1,560,857,456 | 4,479 | 348,483 |
Jackson County:
| ALL | Sold | # Sold | Average | New | # New | Active | # Active | Average |
| Month | Volume | Sale $ | Volume | Volume | List $ |
| January '09 | 51,848,050 | 490 | 105,812 | 195,845,526 | 1,235 | 1,209,476,509 | 6,265 | 193,053 |
| December '08 | 72,644,374 | 667 | 108,912 | 124,076,589 | 876 | 1,160,966,328 | 6,005 | 193,333 |
| November '08 | 64,405,373 | 555 | 116,046 | 149,900,063 | 1,040 | 1,369,658,174 | 6,978 | 196,282 |
National Market Update: Straight from the Keller Williams Institute, here is the monthly forecast http://www.youtube.com/kellerwilliams.
When contemplating where to live, many people consider different things. Some buyers look for their location near work or schools while others consider the convenience of shopping & entertainment. The Kansas City area has many options to accommodate buyers and make this their home. In fact, in CNN Money's "Best Small Cities to Live In" category, they ranked Overland Park Kansas as 9th and Olathe Kansas as 11th. For details of these cities and the benefits CNN Money stated, go to http://money.cnn.com/magazines/moneymag/bplive/2008/snapshots/PL2053775.html .
JUST SOLD BY GINA!
MLS#1466392
5 Bedroom, 2.1 Bath
2 Car Garage
2727 Sq Ft
11935 Lot Size
$274,000
Helping you find exactly the home that suits your needs is what I'm here for. For more information on how I can help you find the home of your dreams or to learn more about selling your current home contact me at 913-449-1950 or Gina@GinaWalton.com.
You can always checkout any of my listings 24/7 at www.GinaWalton.com.
MLS# 1479737
4 Bedroom
3.1 Bath
3 Car Garage
2508 Sq Ft
10360 Lot Size
$225,000
Fantastic large 2 story in fresh & clean move-in condition. Huge Master bedroom & Bath with walk-in closet, Whirlpool tub & double vanity. Great Kitchen with hardwood floors, lots of cabinets & diagonal tile backsplash. Lots of windows thru-out for tons of natural light. all this plus a 3 car Garage on a cul-de-sac lot.
Selling, buying or interested in finding more about Kansas City...look no further. Overland Park, Olathe, Lenexa, Shawnee, Leawood, Gardner & Desoto home and community information.
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