Time Magazine Profiles Boise Market as Real Estate Regains Its’ Footing
8/27/2009
Headlines in recent weeks have been full of good news about the national real estate market, and Boise’s trends are mirroring those national results. Time Magazine has profiled three Boise residents in its August 10 edition; telling their diverse experiences in the local property market.( http://www.time.com/time/magazine/article/0,9171,1913763-1,00.html) And this same week, the Commerce Department reports that July new home sales rose 9.6 percent nationally, while July existing home sales rose 7.2%—the largest increase in at least 10 years, according to the National Association of Realtors.
Industry watchers are seeing the emergence of a “new normal” in the current real estate market. Characterized by home prices now more closely aligned to average income, and lenders using more conservative debt ratios and higher credit scores in issuing new loans, the market landscape is very different from just two years ago, but is not so different from historical trends. The market seems to be returning to traditional drivers for real estate transactions—growing families, career relocations, and retirement, for instance—and less on property speculation.
The Wall Street Journal reported on July 29 that home prices in major US cities rose for the first time in nearly three years, signaling a turnaround from falling prices seen in so many areas. The newspaper notes that this .5% increase for the three-month period ending in May comes after other indicators of recovery in the past few months. This report follows an Associated Press report that sales of previously occupied homes rose for the third consecutive month in June, while foreclosures and the number of homes on the market fell in the same period.
The combination of historically low interest rates, the $8,000 First Time Buyer’s incentive, and property prices that have become more affordable present a unique opportunity to buyers to find the property they have been looking for. Sellers will find that the market for mainstream residential properties has stabilized, and homes priced in comparison to the market are selling in an average of 100 days. Additionally, FHA-backed loans can be secured for as little as 3.5% down, which has also been credited as an important driver in the market recovery.
And what is the net of all these statistics and trend reports? Real Estate remains an important investment, and lower prices and affordable interest rates make this a great time to buy your next property.
Questions? Call Phil Mount
(208) 841-0134
First-time homebuyer tax credit now $8,000
3/31/2009
Here is some exciting news for first-time home buyers. The American Recovery and Reinvestment Act of 2009 provides a tax credit of up to $8,000 for first-time buyers. A first-time buyer is anyone that has not owned a home in the past 3 years. The credit is $8,000 or 10% of the home's value, whichever is less. The credit can be claimed on 2008 or 2009 taxes.
A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of withholding they paid during the year plus anything extra they had to pay when they filed their returns - was less than that amount.
To clarify here are three scenarios:
Scenario 1: Your final tax liability is normally $6,000. You've had taxes withheld from every paycheck and at the end of the year you've paid Uncle Sam $6,000. Since you've already paid him all you owe, you get the entire $8,000 tax credit as a refund check.
Scenario 2: Your final tax liability is $6,000, but you've overpaid by $1,000 through your payroll withholding. Normally you would get a $1,000 refund check. In this scenario you get $9,000. The $8,000 credit plus the $1,000 you overpaid.
Scenario 3: Your final tax liability is $6,000, but you've underpaid through your payroll withholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time the first $1,000 of the tax credit pays your bill and you get the remaining $7,000 as a refund.
To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Dec. 1, 2009. Buyers may not have owned a home for the past three years to qualify as "first time" buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit. Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)
It’s easy to apply for the credit - or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.
To further help first time home buyers the Idaho Housing and Finance Association (IHFA), through its IdaMortgage lending program, is offering a special short-term Tax Credit 2nd Loan to qualified buyers. This will enable home buyers to use the tax credit as their down payment. A Tax Credit 2nd Loan (think of it as an advance loan) will be offered to qualified first-time homebuyers in the amount not to exceed 5% of the sales price or $7,000. A small fee will be charged and the loan will accrue interest at 3% with a due date of July 1, 2010. The Tax Credit 2nd Loan is expected to be paid off from the borrower’s tax refund obtained through the application of the federal tax credit. The borrower must be a first-time homebuyer and qualify for an IdaMortgage loan.
Every person's tax situation is different so you should ask your tax advisor exactly how the mortgage interest deduction will apply to you.
The first-time home buyer tax credit expires on December 1st, 2009. That’s less than 8 months from now. If you are interested in exploring your options feel free to give me a call at 208-890-2200. My name is Trish Trader and I am a real estate agent with Atova and IdahoRealEstate.com. Additional details on this program are also available here: http://www.federalhousingtaxcredit.com
Trish Trader
208-890-2200
$7,500 Tax Credit for First Time Home Buyers
1/13/2009
If you are trying to decide if now is a good time to buy your first home the $7,500 first-time home buyer tax credit just might make the decision easier for you. The "Housing and Economic Recovery Act of 2008" authorized this tax credit to help stimulate the real estate market and to help first time home buyers with the purchase of their first home.
The qualifications for the credit are very straightforward. You must not have owned a home at any time during the past three years. You must make less than $75,000 per year if single or less than $150,000 per year if married. You must complete the purchase of your home prior to July 1st, 2009.
There are three very important things to understand.
First, this is not a tax deduction. This is a tax credit. A tax deduction reduces your taxable income. For example, with a $10,000 tax deduction your savings would be $2,500 if you were in the 25% tax bracket. However, with a tax credit you are actually credited the full amount. In this case, the $7,500 tax credit means you are going to get the full $7,500 in value.
Second, this is a refundable tax credit. That means that this credit doesn't just reduce your taxes, it is actually money that will be refunded to you. For example, if you when complete your taxes you are entitled to a $1,000 refund, claiming the first-time home buyer tax credit means that your total tax refund will be $8,500. It is a "refundable" tax credit, not just a reduction in taxes you might otherwise owe.
Third, the tax credit is essentially an interest free loan. The $7,500 credit is repayable over fifteen years at $500 per year. The repayment is made each year as part of your income tax filing. For example, if you were entitled to a $1,000 refund you would only receive $500 back as the other $500 would be applied towards repayment of the loan. However, it is important to note that as a homeowner, the interest you pay towards your loan each year is deductible. By owning a home this deduction may very well offset the $500 repayment. Every person's tax situation is different so you should ask your tax advisor exactly how the mortgage interest deduction will apply to you.
The first-time home buyer tax credit expires on July 1st, 2009. That is less than six months from now. If you are interested in exploring your options feel free to give one of our agents a call at 208-939-5151. Just ask for the agent on duty and they will be happy to answer all your questions. Additional details on this program are also available here: http://www.federalhousingtaxcredit.com
Buying, Selling or Investing. Timing is Everything.
11/21/2008
At the shopping market. Around the dinner table. At the office. The big question of late is “What happening with the economy?”
The bad news: Depressing economic and housing data is everywhere. National and local media continue to provide evidence that the economy is down and that the housing market is in turmoil.
The good news: Things may not be as bad as you think. Especially here in the Treasure Valley.
Homes are still selling. Over 1,600 homes have sold in Ada County in just the last 90 days. That is an average of more than 17 homes selling every single day. The problem isn’t that homes aren’t selling. The problem is that there are so many homes on the market. However, with over 500 homes selling each month and with the rate of new-construction near zero, you can rest assured that the balance between supply and demand will ultimately return to more typical levels.
However, until balance is restored there will still be challenges in the market. So, what does this mean to you, today?
Buyers: It's an incredible time to buy! Prices are down, there is a great selection to choose from, concessions from sellers are readily offered and interest rates are low. Word of advice: look for the right home for you at an attractive price. Yes, there are some great opportunities in short-sales and bank-owned homes but don’t allow a great deal to push you into a home you otherwise wouldn’t be interested in. Be educated, be informed and be represented!
Investors: This is a great time to invest. Instant equity opportunities abound. High-level savvy investors are beginning to re-enter the market and purchase properties at discounted levels. Investment activity is often an advanced indicator of a market-bottom. If you are considering investing don’t wait to long. This winter might be the time to act.
Sellers: If you can wait to sell your home you probably should. If you must sell now you need to be realistic. There is a large inventory of homes on the market and competition is fierce. Be aware of today’s market conditions and price your home correctly. Generally speaking, if you’re not in the lowest 20th percentile of the market then your home will go unsold. An unrealistic price today will add more months of payments, lost time and more stress. Price it right the first time!
Sellers try to keep everything in perspective. It is a great time to buy, but it’s a double edge sword, it works both ways. If you are upgrading in homes you will be rewarded as well. If you are selling a $200k home, most are selling for 4-5% less of the final asking price. The more you go up in value the larger that % is. You upgrade to a $350k home and save 10% you are giving up $10,000 to save $35,000.
Welcome to the new IdahoRealEstate.com!
11/13/2008
Welcome to the new IdahoRealEstate.com! Our new, completely reworked website offers many great new features and tons of detailed new content on the Boise Idaho area. Please take a few minutes to explore the site. When you’re finished please stop by the contact us page to let us know what you think!
Definitely be sure to take our new search technology for a spin. Browsing the full Boise MLS has never been easier or more fun. Enter your crteria and all matching listings will appear on the map. Place your mouse cursor over any result to see a preview or click on the property to view its full details. Of course, you can also print the listing, schedule a showing, save the property to your favorites and much more.
We’ve also added video to IdahoRealEstate.com. While shopping for Boise homes is fun, its also nice to be able to learn more about our great town. Take a look at a few of our videos to get quick feel for the Boise area. And yes, that is the B-52’s with Your Own Private Idaho. I think we’ll have to make that our theme song.
Have a question about the website or about a particular home? Getting an answer to your question is as easy as the click of a button. Now you can chat in real time with an Idaho real estate agent. And the best part is that you don't have to share any personal contact information to intitiate the chat. If you wish to remain anonymous, no problem!
We will be adding more content every week. If you have any special requests certainly feel free to let us know. If you want photos, video or information on any subject, just say the word.
Thank you for the opportunity to earn your business. Our friendly Idaho real estate agents are ready to serve you.