Krystyna Baty, REALTOR®, M.S. Torrance Redondo Beach & Greater South Bay CA

Buying a Torrance home just got easier with a new Homebuyers Tax Credit bill, which was signed into law last week. The bill extends the tax credit for first-time homebuyers (FTHBs), as well as opens it up to current homeowners who are looking to buy. And even if you aren't looking to purchase - pass on this article to anyone you think might be in the market to do so. This is information that might benefit them greatly, and I'll be happy to be of service to them.

Here is a brief overview of the Homebuyers Tax Credit - and its benefits - based on the new bill.

Tax Credit for First-Time Homebuyers

FTHBs (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Tax Credit for Current Homeowners

The tax credit 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.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010. Those in the military do have some special extensions on the timelines available.

What's So Great About a "Tax Credit"?

The benefit of a tax credit is that it's a dollar-for-dollar benefit, rather than a "tax deduction", or reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer who qualified for the entire benefit were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little or no income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

Higher Income Caps

The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price

Qualifying buyers may purchase a property with a maximum sales price of $800,000.

Remember, the new tax credit program includes a number of details and qualifications. Call or email today if you have questions or would like to see if you can benefit from the tax credit...and email this article along to anyone else you feel it might benefit as well!

If you know anyone looking to buy their first Torrance or South Bay home at a time when prices and interest rates are at 3-5 year lows, or if you are thinking of buying another home and getting the new $6,500 credit please contact me today!!

Call (310)918-5027 now!

The Torrance average sales price decreased by 1.2 percent in October 2009 compared to October 2008, bringing the average price to $513,136The number of sales went down significantly. This drastic drop in sales last month, after continuous increase over last few months, might be a result of a decrease in the number of foreclosure sales in Torrance. Please note the number of sales is still larger on the month to month basis.

*All stats are compiled from the Multi Regional Multiple Listing Service. Information is deemed reliable but not guaranteed.

Increased sales, on the month to month basis, in Torrance reflect a stabilization of the South Bay real estate market as home buyers respond to increased affordability and more moderate prices. Average home price in Torrance continued to slide till January and rose in February, March and May and continued to rise as follows: December 2008 - $478,307, January 2009 - $451,563, February 2009 - $477,944, March 2009 - $519,707, April '09 - $458,037, May '09 - $514,395, June '09 - $506,104, July '09 - $508,543, August '09 - $505,433, September - $525,829.

If you're interested in seeing a similar market report for your specific area of Torrance, or any area in the South Bay, please call me at 310-918-5027 or email at info@ISellSouthBay.com and I'll be glad to provide this report via e-mail or in person

What price could you sell your home in the current market for? Please contact me anytime and I'll furnish a market report for your property at no cost to you!

The Redondo Beach average sales price in October 2009 decreased by 8.8 percent compared to the same period a year ago, bringing the average price to $736,797. The number of sales went up by 4 sales to the total of 63 sales.

All stats are compiled from the Multi Regional Multiple Listing Service. Information is deemed reliable but not guaranteed.

Sales in Redondo Beach over last few months reflect a stabilization of the South Bay real estate market as home buyers respond to increased affordability and more moderate prices. Home prices may have stabilized - November 08 avg Redondo Beach home sold at $790,493, in December 2008 avg home price was $714,310, and it went up to $749,974 in January 2009; it went down again in Feb to $653,411. Average price went up in March '09 to $712,135 and it increased again in April to $763,785. Average price in May was $734,942 and dropped 3% in June to $713,346 and it increased to $715,639. Average price went up again in August '09 to $744,190 and in September to $779,487.

For a no-cost market report in your area or neighborhood, please call Krystyna Baty - your local realtor - at 310-918-5027 today!

Or visit www.SouthBayHouseValues.com for confidential property value report which will be delivered to your e-mail.

Visit www.RedondoBeachRealEstateOnline.com for all of your Redondo Beach & South Bay needs, including Free MLS Search.

The Redondo Beach average sales price in September 2009 decreased by 3 percent compared to the same period a year ago, bringing the average price to $779,487. The number of sales went down dramatically to the total of 63 sales.

All stats are compiled from the Multi Regional Multiple Listing Service. Information is deemed reliable but not guaranteed.

Despite this recent drop, sales average property price in Redondo Beach over last few months have increased and reflect a stabilization of the South Bay real estate market as home buyers respond to increased affordability and more moderate prices. Home prices may have stabilized - November 08 avg Redondo Beach home sold at $790,493, in December 2008 avg home price was $714,310, and it went up to $749,974 in January 2009; it went down again in Feb to $653,411. Average price went up in March '09 to $712,135 and it increased again in April to $763,785. Average price in May was $734,942 and dropped 3% in June to $713,346 and it increased to $715,639. Average price went up again in August '09 to $744,190 and in September to $779,487.

If you want to learn more about South Bay real estate, please contact me at 310-918-5027.

For more Redonod Beach real estate information, free MLS search, market updates and more please visit my Redondo Beach Real Estate Blog.

The Torrance average sales price increased by 0.5 percent in September 2009 compared to September 2008, bringing the average price to $525,629. The number of sales increased by 10.3% Y-O-Y to 114 closed sales.

*All stats are compiled from the Multi Regional Multiple Listing Service. Information is deemed reliable but not guaranteed.

Increased sales in Torrance reflect a stabilization of the South Bay real estate market as home buyers respond to increased affordability and more moderate prices. Average home price in Torrance continued to slide till January and but it rose in February, March and May and continued to rise as follows:December 2008 - $478,307, January 2009 - $451,563, February 2009 - $477,944, March 2009 - $519,707, April '09 - $458,037, May '09 - $514,395, June '09 - $506,104, July '09 - $508,543, August '09 - $505,433, September - $525,829

For more information or to request a market report for your area please call Krystyna at (310)918-5027