About Knoxville's Hardin Valley

Here’s the latest report from the Knox County, Tennessee Register of Deeds real estate transactions.

There were 157 transactions during the past week; that’s about on par for the 150 average we’ve had for 2009.

And as usual the $100,000 to $150,000 price points dominate the number with almost twice as many as any other category.

Even though we have not seen the normal seasonal slowdown yet, I think it may be beginning in December.

Real estate in Knox County and most everywhere else in the United States is in a very highly volatile state right now because of the economy, unemployment, and a lack of consumer confidence. I believe that will be exacerbated this month by the Christmas season. People with holiday parties and shopping foremost in their minds are typically not in the house buying mode at the same time.

According to the Knoxville Realtors Multiple Listing Service there are 3,727 active residential listings and 976 condos in all price points. Here’s a graph showing the current, active listings broken down by price points.

By comparing the two graphs you can easily see there’s a huge disparity between the number of current, active listings and those that actually sell.

This also demonstrates that now is an excellent time to buy a house or condo. Excellent fiancing is still available and there is a huge selection of homes for sale. Visit www.KnoxvilleHomeCenter.com to see all the current active listings listed above plus all the other counties served by the Knoxville Area Association of Realtors

Congress has just passed, as part of their gigantic economic ’stimulus’ package, a tax credit of up to $8,000 for persons buying a home between January 1st of 2009 and December first of the same year.

A few changes from the $7,500 credit created last July. Here’s the new deal:

1. Maximum credit amount is increased to $8,000 or 10% of the purchase price; whichever is less.

2. This is a cool part. Homebuyers who don’t intend to buy a home until the end of 2009 can legally alter their withholding to save up money for a downpayment. But if they don’t buy they have to repay the tax underwithheld

3. An eligible property is any single family residence; including condos, co-ops, or townhouses that will be used as your principal residence. Investment or second home properties do not qualify.

4. The new law allows taxpayers/homebuyers to treat qualified 2009 home purchases as a 2008 purchase so you can claim the credit on the return you file in 2009.

5. It’s refundable unlike the former ‘credit’. That means you can reduce or eliminate your income tax liability up to the $8,000 limit for the year of purchase. Any unused amount can be refunded to you in cash in the year following your qualifying home purchase.

6. An individual with adjusted gross income of not more than $75,000 or $150,000 on a joint return are eligible.

7. Although it’s called the “First Time Homebuyer” tax credit, as long as you have not owned a home in the past 3 years that was your principal residence you probably qualify.

8. Homebuyers who use state revenue bond financing, in Tennessee that would be the Tennessee Housing Development Authority (THDA) qualify under the new, $8,000 credit; they did not under the $7,500 program.

9. The $8,000 is a true credit and does not have to be repaid.

10. If you sell the house you buy and claim credit for during the 3 years following the purchase all of the credit is subject to recapture (you have to pay it back).

11. This program begins January 1, 2009 and ends December 31, 2009.

12. Any revisions are effective as of January 1, 2009.

There you have it; a true $8,000 credit if you buy a new home during 2009. There’s a huge selection of homes out there and most buyers are willing to deal (a lot) so let’s get started finding you one.

KnoxvilleHomeCenter.com is a great place for Knoxville, Tennessee area homebuyers to start their search.