Real Estate Information

I just read some good news for once instead of all of the doom and gloom. Reuters released the results of a survey of 47 professional forecasters, predicting that the economy will still begin to recover the 2nd half of this year.

The new stimulus package for anyone who has not owned a home in the last 3 years read like this:

If you buy your home in 2009 you can take your first-time home buyer credit on either your 2008 or 2009 tax return.  If  you purchaase your principal residence on or after Jan. 1, 2009 and before Dec. 1, 2009 you can take the tax credit of up to $8,000 on either your 2008 return or next year on your 2009 tax return. The credit is equal to 10 percent of the home purchase price, up to the $8,000 limit.

If you buy your home before April 15, 2009, you can claim the $8,000 credit on your 2008 return, due by April 15. If you buy your home after April 15, 2009 but before Oct. 15, 2009, you can file an extension and just wait until the October tax deadline to file your 2008 tax return to claim the credit.

If you have already filed your taxes this year and want to claim the tax credit, you can file an amended return or just wait and claim the credit on your 2009 tax return.

Keep in mind that the 8,000 tax credit is income restricted.

With the economy up and down we sometimes tend to focus too much on what we are surrounded by and exposed to everyday.  Why wouldn't we when the media won't focus on anything else. I have told myself and my team that we are not going to listen to the media. We have changed how we advertise and do business and it was a long time coming. We are counting our blessings and focusing on what we have in our lives to be thankful for.  Most of us are focused on the daily grind and influenced significantly by the world around us.  Being thankful is one step towards having a more positive life.  Being thankful is a good habit to begin!

I am starting to see our market change a little. I am on a listing spree right now. I have listed 11 homes in the first 16 days of February and have been on more appointments than that. The market is still 500 homes less than it was last year at this time. Now is the time to get on the market before the spring rush...the buyers that are looking right now are real buyers and not shoppers.

I am waiting to see what Congress has decided to put in the Stimulus Package concerning the housing market. The two proposals the keep coming up are $15,000 to anyone buying a home and/or 3.9% interest rate. The are going to announce today what the proposal involves!

The Southside Housing Alliance- A group of local real estate professionals met again yesterday, Feb. 2nd, 2009 to discuss the positive trends in the local Southside housing market. The agenda had many items attached to it but primarily focused on the amount of homes sold in Central Indiana in 2008. The number of homes sold exceeded 25,000 according to the Broker Listing Cooperative data (formerly the Multiple Listing Service).

The median sales price of homes for Central Indiana beat the National Median sale price with a decrease of 4% compared to a 9.3% decrease nationally. The focus of the meeting concentrated on the number of homes sold in 2008 instead of how many did not sell in Central Indiana.

The Alliance is in the process of putting committee's together to help get the positive news out to the public and other real estate professionals. The need to talk to our Legislature regarding the new tax laws was the last topic discussed and each company who attended the meeting had the option to donate money towards a marketing campaign to get the ideas conveyed to the general public.

I have just heard, from the International Builders' Show, that smaller, more practical and user friendly space are in! I have been saying that this trend is coming for years. I have seen our buyers walk in the door and describe their dream home and it eliminates fireplaces, living rooms and dining rooms. I also think going green is the next big push in building a home as well. I think we are going to have to be very energy efficient for the future and build homes with storage and flexible spaces. We have a few builders that are ahead of the times that can help you get started!

The National Association of Home Builders is in the midst of fighting for assistance from the federal government during what has become the largest housing crisis in decades.  The new stimulus bill will get people motivated to take action to buy a home.  The two key points are:

1. The federal government would offer a tax credit of between $10,000 and $22,000 (depending on locale) to anyone closing on the purchase of a home, new or resale, by December 31, 2009. The credit would not have to be repaid, which is a major upgrade from the $7500 tax credit passed last summer.

2. The government would provide a federaaly-subsidized 30-year fixed rate mortgage of 2.99% for all home purchases, new and resale, closing by June 30, 2009. After that, the rate would be 3.99 for purchases closing by December 31,2009.

As an effort to help them get their message through to Indiana'a Congressional delegation, some of our members  are turning to a tactic that worked during the housing slump of the early 1980's. During that recession, interest rates skyrocketed to over 18%, and BAGI members found a unique way to get their point across: lumber

Congress receives thousands of pieces of mail every day, and only a unique mailer will get noticed. So, some BAGI members have begun to send a 6 inch 1" x 4" in place of a standard letter. Each has a Congressman's address with the simple message "Fix Housing First" written on the back. This mailer will cost a little extra, but it is worth it to get the added attention. If you would like to get involved with helping this bill get passed mail your Congressmen and Senators.

Each will cost less than $2.00 and can be sent out just like a regular letter.

The Central Indiana Congressmen and their addresses are:

Richard Lugar- 306 Hart Senate Office Building, Washington, D.C. 20510-1401

Evan Bayh- 7463 Russell Building, Washington, D.C. 20510

Steve Buyer- 2230 Rayburn House Office Building, Washington, D.C. 20515

Dan Burton- 2308 Rayburn House Office Building, Washington, D.C. 20515

Mike Pence- 426 Cannon House Office Building, Washington, D.C. 20515-1402

Andre Carson- 2455 Rayburn House Office Building, Washington, D.C. 20515-1407

I was at the Southside Mibor luncheon last week and found an interesting statistic I felt I needed to share. According to the National Association of Realtors, the average price of homes in the Indianapolis market has only dropped 1.3% including all of the foreclosures. We are one of the least affected areas in the country that hit by the recent foreclosure and mortgage crisis. We never had the appreciation like most areas in the country, so we are not as affected by homes losing so much value.

According to the National Realty News, the foreclosures have slowed and we should see a significant decline in 2009. Buyers will come back to the market due to low gas prices and record low interest rates helping to push home prices up a little. They are predicting buyers to come back to the market in droves because we will never see this opportunity again to buy a home and as you can see it really isn't a bad time to be a seller. Our homes locally didn't lose money like the National Media would like you to believe and now is the time to buy.

2009 is here and I am overly excited about the year. I see several opportunities for myself, my team and my customers and clients . We sold 5 houses in 9 days over the holidays! What a great start in a "so called" down market. We have the attitude that we are kicking butt and taking names in 2009. We have over-hauled our marketing to get our listed homes the most exposure possible to buyers looking in the market. If you are thinking about selling your home...call us immediately! You won't believe our 2009 marketing plan.

I want to briefly talk about an article I saw in the Daily Journal newspaper Saturday January 3, 2009. The article talked about how the home building or new construction of homes was down in 2008 and that no one is really building homes or wanting to build homes. We currently have 4 customers building homes and 2 just recently closed on their new homes. I have found that it is a perfect time to build! The rates are at an all time low, lots have been discounted, all building materials are less expensive than 2 years ago, builders are willing to work with you and gas is down. We have been able to really negotiate some great prices for our clients that are building. If a new home is something you have been thinking about...call us so we can help you get started and save a lot of money.

In closing, there is always opportunity!

The Housing and Economic Recovery Act of 2008 was just signed by President Bush with some amazing benefits for first time homebuyers. Call everyone you know who wants to buy their first home (or who hasn't owned one in three years), this is too good to miss - it's a $7,500 tax CREDIT (not deduction but a credit).

If you have not owned a home in three years, you qualify as a first time home buyer. If you buy a home after April 9, 2008 and before July 1, 2009, you qualify for this credit. Call your friends who just bought a home since April 9th and tell them they may take $7,500 off their tax bill if they qualify. It has to be your principal residence, so rentals do not count.

The tax credit is 10% of the cost of the home, up to a maximum of $7,500. This is not an additional deduction that lowers the amount of income to be taxed, it is a tax credit. In other words, you take $7,500 off your tax bill. But there is a catch; the credit you receive now is actually an interest-free loan that must be repaid.

The loan has no interest, and will be paid back over 15 years. You get the credit on your 2008 taxes, but you start paying it back on your 2010 taxes that are due in 2011, so you get at least two years without a payment. You pay back 6.67% of the credit each year, so for a $7,500 credit the payment is $502.50 per year. If you stay put for 15 years, you pay it off with no interest.

What happens if you sell the house? You pay the balance back at the closing. So, you get $7,500 now, and pay the rest of it back if you make money on the sale of your house. What happens if you do not make enough money when you sell your house? They forgive the rest of the debt.

Other restrictions stipulate that you have to buy your first house in three years before July 1, 2009, not have super high income, not use bond financing and buy anywhere in the US.

If you'd like to learn more about this program, please call me!