If you purchase a newly built home from March 1, 2009 to March 1, 2010 as a primary residence, you may be entitled to a new state tax credit for $10,000 or 5 percent of the purchase price, whichever is less.
For example, if you purchase a $1.2 million dollar new home from Three Oaks in Walnut or Pine Valley Estates in Chino Hills, you may receive $10,000 state tax credit if you live in the house as primary residence for 2 years.
The credit will be provided in equal amounts (up to $3,333) per year, over three successive tax years, beginning with the year the purchase is made.
The taxpayer must live in the home as their principal residence for at least two years. If he/she does not, he/she will have to repay the credit.
For more info or to file a claim, visit state's website.
If you are first time homeowners, you may also be qualified for the additional federal tax credit of $8000.
If you interested in buying a newly built home, please feel free to call me and let me know what you are looking for so I can forward some new home info to you.
President Obama signed the stimulus package on 02/17/09. H.R. 1, is a $787 billion package containing over $280 billion in tax relief and over 300 changes to the IRC.
For first-time homebuyer, if you make a purchase in 2009 (01/01/09-12/31/09), the maximum tax credit is increased to $8000 and the repayment provisions are eliminated for taxpayers who own and live in the home for at least 36 months. (IRC 36).
The tax credit amount is 10% of cost of home not to exceed $8,000. If you purchase a house for $300,000, 10% of the purchase price is $30,000. Since $30,000 is greater than $8,000, you will be entitle to $8,000 tax credit.
For example, if you owe IRS $10,000 on your income tax and your qualified tax credit is $8000, your net tax liability is only $2000. Making this year an outstanding year for first time homebuyer to purchase a home and take advantage of the huge tax break.
Below is a chart showing the number of houses sold in Phillips Ranch from 2006 to 2009.
With low interest rate and large bank owned homes selling at bargain prices, we are seeing twice more houses sold in January 2009 comparing to January 2008.
The number of houses sold in January 2009 is back to the same level as January 2006. We will continue monitor the market for few more months to determine if the housing market is in the process of rebounding.
Below is a list of the 6 properties sold in Phillips Ranch in January 2009.
| Type | Address |
Bank
REO?
|
Br/Ba |
Sq
Ft
|
Built
|
Pool
|
View
|
Listing Price | Sold Price |
| Cndo | 82 Country Mile |
Yes
|
3/3
|
1204
|
1986
|
No
|
No
|
$199,900
|
$200,000
|
| Hs | 7 Hidden Hills |
Yes
|
4/3
|
2097
|
1979
|
No
|
No
|
$309,100
|
$360,000
|
| Hs | 17 Cottontail |
Yes
|
4/2
|
1806
|
1981
|
No
|
No
|
$351,500
|
$365,000
|
| Hs | 16 Monte Diablo |
No
|
3/2
|
1733
|
1989
|
No
|
No
|
$429,000
|
$410,000
|
| Hs | 31 Navajo Trail |
No
|
4/3
|
1984
|
1981
|
No
|
No
|
$419,900
|
$415,000
|
| Hs | 15 Pala Mesa |
Yes
|
3/3
|
2940
|
1990
|
No
|
Yes
|
$659,900
|
$659,900
|
There were 50 properties for sale and 6 sold last month making the January sold rate 12%.
4 out of 6 properties sold last month were bank owned properties. Chance of privately owned homes sold is only 4%.
In order to get the house sold, private owners need to either price their house aggressively like the bank owned ones or upgrade and modernized the house completely to make it a 100% turnkey condition to entice buyers to purchase the house.
According to Freddie Mac, 30 year moorage rates drop below 5% setting new record for the lowest mark since 1971.
This week on 01/17/09, the rate dropped to 4.96% down from previous record of 5.01%.
It is the 11th straight weekly drop that is way below 5.69% at the same time last year.
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