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2009 Home Buyer Survey
December 18, 2009
The National Association of Realtors has recently released the 2009 Profile of Home Buyers and Sellers. The report compiles the results of 9,138 surveys returned by buyers and sellers who sold or purchased a home between July 2008 and June 2009. The surveys were sent to buyers and sellers based on deed transfers and other public records. The complete report is available for purchase at www.realtor.org . Here are some highlights I found interesting:
•· 47% of all buyers were first time buyers.
•· 62% of first time buyers reported that the primary reason for buying a home was the desire to be a homeowner, 35% of all buyers reported that as the number 1 reason.
•· The median age of all buyers was 39, same as last year.
•· 83% of all first time buyers are under the age 44.
•· 62% of all buyers are under age 44.
•· 90% of all buyers used the internet to search.
•· 84% of buyers reported the photos to be the most useful information.
•· The number one action taken after viewing a home online was to drive by or visit the home.
•· 66% of buyers reported that they used a print ad to search, but between 84% to 90% (depending on the print medium) reported that those sources were “not useful“.
•· 36% of buyers found the home they purchased through an agent, 36% found the home they purchased online, less than 3%found the home they purchased in a print ad.
•· 77% of buyers purchased their home with an agent.
•· 85% of sellers sold their home with an agent.
•· 39% of the mortgages were FHA loans.
•· 87% of buyers viewed real estate as a good investment.
Launch of Interactive Map Search
December 16, 2009
The ConeTeam is pleased to annouce the launch of our new Interactive Map Search tool. You can now select an area, refine the search criteria and even show points of interest, like schools, grocery stores, bank locations and more!
Interactive Map Search
Just Click Here to start your home search!
Tax Credit Extended
December 16, 2009
BREAKING NEWS! The Home Buyer Tax Credit has been extended and expanded! Now, eligible existing home owners may also qualify for a tax credit of up to $6,500! It’s the right time, right now, to sell your current home and to buy a new home.
NEW $6,500 Tax Credit for Current Home Owners* • Eligible home buyers must have lived in their current home for 5 consecutive years of the past 8 years.
• The new home does not have to cost more than the old home.
• Eligible for homes with purchase agreements written by April 30, 2010, and that close before June 30, 2010.
• Annual income caps to qualify for the full tax credit apply: $125K for single filers and $225K for joint filers. Partial tax credit can be granted for incomes up to $145K for single filers and $245K for joint filers.
The $8,000 First-Time Homebuyer Tax Credit is Extended!*
• Now, qualified first-time home buyers will qualify to receive their $8,000 tax credit if they sign a purchase contract by April 30, 2010, and close by June 30, 2010.
• The home purchased must be their primary residence.
• Qualified buyers cannot have owned a home during the past three years.
• Tax credit is up to 10% of the home value (not to exceed $8,000).
• Annual income caps to qualify for the tax credit have increased: $125K for single filers and $225K for joint filers. Partial tax credit can be granted for incomes up to $145K for single filers and $245K for joint filers.
For more information on these tax credit opportunities view our exclusive Tax Credit informational video on our Reece and Nichols website.
We are committed to providing a remarkable home buying and selling experience to each of our clients. If you or someone you know is in a situation to change their space because of the tax credit incentives, We would be interested in talking to them.
October Market Update
November 17, 2009
Market Update
Existing Home Sales are at their highest levels in over 2 years, according to an October report published by the National Association of REALTORS (NAR). Fueled by increased activity among first time home buyers, the existing housing market has shown gains in five of the last six months. Based on the recent 9.4 percent increase from August to September, NAR is predicting annual sales volume of 5.57 million units for 2009, up from the earlier prediction of 5.10 million units.
Buyers are taking advantage of low interest rates and a first time buyers tax credit available through the end of November. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” said Lawrence Yun, NAR chief economist. “We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.”
Total housing inventory is trending down across the country, reaching its lowest level in two and a half years. Inventory fell to 3.6 million homes available for sale at the end of September. This represents a 7.8 month supply at our current sales pace. “If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year,” Yun said.
Interest Rates Hold Steady
Freddie Mac is reporting that the average commitment rate for a 30-year, conventional fixed rate loan has dropped to a September low of just 5.06 percent. These mortgage rates are down considerably from one year ago when the 30-year fixed rate loan was offered at 6.04 percent.
With the US economy still in recovery, the Federal Reserve has maintained low lending rates for member banks. The existing Fed Funds Rate of 0-0.25 percent has lead to the lowest prime rate in decades, hovering around 3.25 percent. Although the economy started growing again last quarter, many experts believe the Fed will continue to keep rates low, at least until the recovery gains traction. Many home buyers are finding excellent financing opportunities as a result.
Tax Credit for Home Buyers
November 17, 2009
| Extended & Expanded Home Buyer Tax Credit | |||
| As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that extends the $8,000 credit for first-time home buyers, and expands the program to offer a $6,500 credit for repeat buyers who have been in their current residence for five consecutive years out of the last eight.
The qualifying income limits have also been raised to $125,000 for singles and $225,000 for joint tax payers. Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for less than $800,000. In order to be eligible for the credit, buyers must have a written sales agreements in hand by April 30, 2010. Buyers then have an additional 60 days to close on the property (June 30, 2010). |
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| Click here to view the National Association of REALTORS® Tax Credit Comparison Chart | |||
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| Who Qualifies for the Tax Credit? | |||
| First-time home buyers who have not owned a principle residence at any time during the three-year period leading up to the purchase of the home who purchase homes between January 1, 2009 and April 30, 2010.
Current home owners purchasing a home between November 6, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight. All types of homes qualify for the credit, including single-family, townhomes, and condominiums, as long as the property purchased will be used as a primary residence. The amount of the tax credit is up to 10% of the purchase price of the home with a maximum of $8,000 for first-time buyers and $6,500 for repeat home buyers. Single taxpayers with incomes of up to $125,000 and married taxpayers with incomes of up to $225,000 can qualify for the full tax credit. You may qualify for a partial tax credit if your income is greater than $125,000 to $145,000 for a single taxpayer and $225,000 to $245,000 for married taxpayers filing a joint return. For more information on the First-Time Home Buyer Tax Credit, please see our Frequently Asked Questions. |
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