Time to Walk in the Front Door of Your New Home
From Margaret Galecki:
This is a great time for buyers in the New River Valley real estate market. Inventory is up, interest rates are at historic lows, and prices are realistic. The average sales price is down for the first two months of the year compared to the same period last year - down by an average of 9% for Blacksburg, Christiansburg, Radford, Giles, Floyd and Pulaski County, Virginia - and now the stimulus package offers a great opportunity for first-time home buyers.
You may qualify for up to an $8000 tax credit:
- If you OR you spouse have not owned a home in the last three years.
- If you make less than $75,000, or if you and your spouse make less than $150,000 together (tax credit phases out gradually for singles up to $95K and joint filers, up to $170K)
- If you close on the purchase a home between January 1, 2009 and November 30,2009.
- If the home you purchase is a principal residence.
This is truly a tax credit, not a loan; it does not require repayment. The amount of the tax credit is up to 10% of the cost of the home you purchase or $8000, whichever is less.
So... If you qualify for the tax credit and you buy an $80,000 or more home, you will receive a credit on your tax return of $8000. If you only owe $6000, for example, the remainder, $2000, will be refunded to you. Here are more details and FAQs for you on the First-Time Home Buyer Tax Credit and here's an IRS link, but do consult your personal tax advisor before making a purchase to make sure you qualify for the tax credit.
So if you don't own a home and you haven't owned a home for three years, this is a perfect time to look. New properties are coming on the market every day in every price range.
An agent at Coldwelll Banker Townside can set up a system to e-mail you new listings the moment they come on the market, so you can know what is new first. Maybe you'll see the perfect front door during this perfect time to buy.
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From Handshake 2.0: Margaret Galecki, general manager of Coldwell Banker Townside, REALTORS®, was featured in A New Outlook on Sales Prices by Sarah Cox (.pdf), The Roanoke Times, 10/26/08.
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Coldwell Banker Townside, REALTORS® is a full service real estate agency specializing in Blacksburg, Christiansburg, Roanoke, and Salem, Virginia real estate and homes. We strive to be the best online source for real estate listings in Blacksburg, Christiansburg, Roanoke, Salem and all of the Roanoke Valley and New River Valley. Experienced agents are available to provide expert real estate advice and quality customer service. You're invited to view this week's featured properties, search all area listings, and to read agent tips on the Coldwell Banker Townside, REALTORS® blog, Keepin' It Real Estate.
Thanks, Anne, for this post. It CAN be a good time to buy, but not for everyone. Credit scores are becoming more and more important, and I'm finding lenders requiring higher and higher scores in order to qualify for the best rates. But they're out there, and my activity has not dropped in 2009 over 2008. That's an important indicator for me in reading the market.
I looked at the numbers for residential properties in Blacksburg and Christiansburg - our two highest and best performing markets, historically - and find better numbers than the 9% decrease across the entire market. For January 1 - March 18 2008, the average sales price was $201757 and the median sales price was $185000. In 2009, during that same time period, the average and median sales prices were $196657 and 179900, respectively ... so I'm finding, in our best performing markets, a dip of less than 3%, which is a positive thing.
I'm actually excited about 2009. At the beginning of the year, I was admittedly a little worried because I didn't know how many buyers and sellers would be on the fence, but I can tell you from the street that it's not many. And I'm finding many people don't understand the tax credit very well, so thank you - and to Margaret - for breaking it out the way you have.
Posted by: Jeremy Hart | March 18, 2009 at 10:46 AM
Thanks for the clarification, Jeremy. We're all encouraged by current activity. Sellers are being more realistic about pricing and buyers are beginning to understand that they need to find a home that is valuable to them. Sales price in B'burg and C'burg are still close to 95% of original list price. Lenders send gentle warnings that rules are changing daily too, so your point about credit scores is timely.
Posted by: Margaret Galecki | March 18, 2009 at 01:03 PM