Johnny "Culdesac" Yankoviak

Congress just passed, and President Obama is expected to sign, an extention and expansion of the popular First Time Home Buyer's Tax Credit.

The extention would be on homes "ratified" by April 30, and settled by June 30, 2010. Anyone who hasn't owned a home as a primary residence in the last 3 years, and first time home buyer's would be eligible for up to an $8,000 tax credit. There are income maximums to qualify.

The expansion of the bill would go to home buyer's who have lived in their current homes for at least 5 years, and are looking to purchase another primary residence. These buyer's would be eligible for up to a $6,500 tax credit.

This is a big boon to "short seller's", those who owe more on their mortgage then their home's are worth. Many of these "short sales" are languishing in big bank's loss mitigation department's, as frantic home buyer's and seller's rushed to beat the November 30 deadline.

Now, a temporary sigh of relief can be heard through out Northern Virginia and the nation, as the pressure to perform will at least be lifted for the time being.

However, an "average" short sale can easily take up to 4 months and beyond, after"ratification" or signing and delivery of contract, and it is not uncommon for short seller's who have 2 mortgages with 2 different banks to expect an even longer settlement.

Numerous complaints about big bank foot dragging, was a major reason for the extention and now the feds have stated there will be more of a crack-down on banks deemed to be "out-of-compliance" with current and future reglatory reform.

This bodes well for short seller's, who have a legitimate hardship, such as losing a job, or a reduction in hours, and are struggling with their monthly mortgage payments. Ideally, a "loan modification" is the best bet if your bank will allow it.

If not a "short sale" could be a solution, albeit not a great one, however it is still better then a "foreclosure" which will remain on your credit for many more years.

Congress just voted on extending and expanding the popular "First Time Home Buyer's Tax Credit".

By a vote of 403-12 in The House, and 98-0 in The Senate, the bill would extend the tax credit until June 30, 2010. Contracts must be "ratified" by April 30, and settled by June 30.

The bill would also extend to home buyer's who have owned their current homes for at least 5 years and buy a new primary residence. That group could be eligible for a tax credit of up to $6,500. Anyone who hasn't owned a primary residence in the last 3 years, and first time home buyer's would continue to qualify for up to an $8,000 tax credit.

Perhaps one of the most popular tax credit's used today, 1.4 million first time home buyer's have qualified through August. The National Association of Realtors estimates that 350,000 first time home buyer's have bought specifically because of the tax credit.

And with numerous complaints about big bank foot dragging on "short sales", countless first timer's were caught unsure if their "short sales" were or were not approved, and if they were or were not going to make it to settlement in time.

The expansion and extention of the credit is estimated to cost $10.8 billion. Current members of the military would have until June 30, 2011 to qualify. President Obama is expected to sign the bill into law before the weekend.

The average sold price in Prince William County, Virginia was up again for July 2009.

This figure rose from $233,350 in June to $242,524 in July.

Since February of this year, the average home sold price in Prince William County has risen from a low of $204,378 to $242,524. Prices have risen in 4 of 5 of the last months, with current average sold price being within 95% of last year's levels.

Average days on the market continued to shrink from 112 in July 2008, to 62 in July 2009, a 44% reduction. 423 out of the 693 units, were sold in under 30 days.

Out of 2,761 "active listings", 981 were marked "under contract". Of the 693 total units sold, 166 used conventional loans, 251 used FHA, 126 were marked VA, 111 were cash deals, with owner financing, assumptions, and "other" taking up the rest.

The only down side, is that as prices rose, total sold houses leveled off from 866 in July 2008, to 693 this year. A lack of listings and "short sales" were also mentioned as a culprit as well.

Home sale prices in Prince William County, Virginia are expected to rise throughout the rest of the year, as eager first time home buyer's continue to buy, in a race to beat back the November 30, 2009 deadline to take advantage of the First Time Home Buyer's Tax Credit.

Johnny "Culdesac" Yankoviak

Average sold home prices rose again here in Prince William County, Virginia, a suburb of Washington, D.C. This was the 4th month in a row of rising prices, in a county long considered key in the national housing recovery.

In March, the average sold price in the county was $210,000. In April that figure rose to $213,045, and in May it rocketed to $238,231.

Pent up demand, and an $8,000 tax credit pushed prices to within 84% of 2008 levels, while average days on market shrunk from 128 in 2008, to 78 in 2009. Homes currently "under contract" rivaled this time in 2004.

There were 753 total home units sold in June, with 441 being financed FHA and VA. 161 were conventional loans, and 114 were cash deals. 33 were "assumption loans", while 4 were marked "other".

Total "active" listings were down from 3,079 in March to 2,792 in May. Out of those 2,792, 1,107 were "under contract".

www.johnnyculdesac.com

The city of Manassas Park, Virginia stunned by a rash of foreclosure's 12 and 18 month's ago, saw average home sale prices surge 9% in one month. Average sold home prices rose to $147,355 in March, from $131,924 in February.

Total units sold jumped 100% over this time last year, rising from 25 units in March 2008, to 50 units in March 2009. Average days on market decreased 32% from 110 this time last year to 75 this year.

Prince William County saw similar gains with the average home sold price increasing to $210,060 in March, from $204,378 in February. Total units sold were up 49% from 502 this time last year, to 750 in March 2009.

In the City of Manassas, Virginia, total units sold rose 64%, year over year, and "active" listings were disappearing rapidly, as 1 out of every 1.9 were currently under contract.

Lower prices and interest rates, combined with the first time home buyer's tax credit contributed to the sales increases in all 3 jurisdictions.