Johns NewsLetter January 2010

January 2010

>Repeat Home Buyers Do Not Have to Sell Current Home  to Get the $6,500 Tax Credit
>FAQ's about Homebuyers Tax Credit

Sedona Real Estate
Sedona Real Estate 2009 Year End Market Statistics
This year will present a great opportunity to qualified home-seekers who have been waiting for the market to stabilize. With the Federal Homebuyer Tax Credit incentive, low home prices, and interest rates at the lowest they're going to be for the foreseeable future, the buying climate couldn't be better. Note the following statistics.

Homes Sales in Sedona Up 30%
Sedona saw big gains in existing home sales in 2009.  The number of homes sold rose 30% from 2008: 299 homes sold in 2008 while 426 sold in 2009. 

Average Price Per Square Foot May Have Hit Bottom
Average price per square foot dropped from $245 in 2008 to $193 in 2009; a decline of 21%. We believe the under $400k market will see a modest price tick up in 2010, as inventory in this price class decreased significantly. This seems to be the best price range for investors and second homebuyers in Sedona.

Inventory Continues to Shrink
The number of houses on the market in Sedona decreased significantly from 2008 to 2009. In December 2008 there were 579 homes on the market while at the end of December 2009 there were 452, a decrease of 22%.

Sedona Foreclosure Market
Of the 426 homes that sold in 2009 in Sedona, 116 were foreclosures, a rate of 27%. Though Sedona has seen its share of foreclosures, it has not been overwhelmed by them as in other markets around the country that are seeing 40% to 70% in foreclosures.

Whether foreclosure or regular homes, there are some fabulous deals to be had, call John 928-300-0849 to see what's available in your price range, or do a Sedona Property Search..

 

About the Extended Home Buyer Tax Credit

First-time and Repeat Home Buyers Need to Act Before the Extended Home Buyer Tax Credit Expires
Buyers interested in taking advantage of the federal home-buyer incentive need to do so before the April 30th, 2010 deadline which is only a few months away. The purchase contract has to be in effect before the deadline and close no later than June 30, 2010.

Repeat Homebuyers Do Not Have to Sell their Current Home to Get the $6,500 Tax Credit
Under the new regulations, repeat buyers are not required to sell their current home to qualify for the $6,500 tax credit, provided their new home becomes their primary residence and is declared as such to the Internal Revenue Service.. They can keep their  current home as investment property, second home or, of course, sell it at a later date. This is certainly a great option if they would like to move and can carry both homes

Frequently asked questions about the Extended Home Buyer Tax Credit

Who Qualifies for Extended and Expanded Home Buyer Federal Tax Credit?

  • First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010. To qualify as a "first-time home buyer" the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase; and
  • Repeat Home buyers that have used their current home as a primary residence for five consecutive years of the past eight years.


What Type of Property is Eligible?
The new home may be a residential single-family homes, condo, townhome, or co-op. The Sellers cannot be your parents, children or grandparents.

What is the Tax Credit Limit?
--First-time home buyer is allowed up $8,000.
--Repeat buyer-a current homeowner is allowed up to $6,500.

Is there a limit as to how much house I can buy?
--Your home cannot cost more than $800,000.

Is there an income limit? Yes
Single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

If I make more than the limits stated above, can I get partial tax credit? Yes?
Single buyers making between $125,000 and $145,000 and home buyers filing jointly making between $225,000 and $245,000 can get partial tax credit.  Those earning over $245,000 are not eligible for the tax credit.

Do I have to repay the tax credit?
No, you do not have to repay if you occupy the home for three years or more. If the property is sold before this period, the government will require that the full credit be repaid upon sale of the property.


If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service, or Search Google —key phrase "home buyer extended  tax credit"

To Do a Sedona and surrounding area Property Search, click here. 

E-mail Me or Call John 928-300-0849