303.818.4055 Neil@KearneyRealty.com
Claiming Tax Credit and Other Homebuyer Tax Credit Details

Claiming Tax Credit and Other Homebuyer Tax Credit Details

by | Mar 11, 2010 | For Buyers

The Homebuyer Tax Credit is a big part of our market.  The deadline to place a property under contract is April 30th and as of today buyers who want to take advantage of this unprecedented opportunity have just 50 days to get it done.  There are many sources of information out there on this opportunity but I have found that the best source of information comes directly from the source, the IRS.

The first logical question anyone can ask about the tax credit is “Am I eligible?”.  To find out go to http://www.irs.gov/newsroom/article/0,,id=206291,00.html

I get many questions that are a bit out-of-the-box.  What if one spouse qualifies and the other doesn’t?  Am I still eligible if I get a co-signer who does not qualify?  What if I got a divorce and lost the house in the settlement?  Answers to these types of questions can be found at http://www.irs.gov/newsroom/article/0,,id=206294,00.html

Now the fun part.  If you do in fact qualify and you have closed on a home within the specified time frame your tax credit is just a step away.  If you purchased a home in 2009 you can claim the tax credit on your 2009 tax return.  But did you know that you can claim a property purchased in 2010 on your 2009 taxes?  Claiming the tax credit seems pretty straight forward.  You attach form 5405 to a long form 1040 and include documentation regarding the sale.  To see a full explanation on the process go to http://www.irs.gov/newsroom/article/0,,id=218698,00.html

Winter 2010 Newsletter

by | Mar 10, 2010 | Boulder County Housing Trends

Here is an excerpt from my latest newsletter which just went out today.  To view it fullscreen with all formatting, graphs and photos click here.

Locally, we began to see improvement in the local real estate market in September 2009.  A direct result of the Homebuyer Tax Credit which was initially scheduled to expire at the end of November but has since been extended and expanded.

What was designed to be a stimulus for first time homebuyers now includes homebuyers who have lived in their current home for at least five of the past eight years.   First time buyers who place a contract on a home on or before April 30th and close on that home on or before July 1st are eligible for federal tax credits in the amount of $8,000.  Move up buyers have the same deadlines but the tax credit amount is $6,500.

Sales during the fourth quarter of 2009 were up 17% in Boulder County  compared to 2008.  During the entire year sales were down just under 15%.

So far in 2010 the early year activity has been strong.  Buyers and sellers, who traditionally wait for spring have been spurred on to a winter start by the tax credit and low interest rates.  Showings in our office are up considerably and contracts on homes have picked up dramatically in February.

We all know that interest rates are a very important piece of the home buying process.  A one percent rise in interest rates can make a huge difference in the affordability of a house.  During this difficult economic crisis we have been lucky to have had interest rates in the 5% range.  This will not last forever.  In fact, the Federal Government has kept down interest rates by buying mortgage backed securities.  The money for this program is nearly out.  By the end of March, many experts expect rates to begin to rise.  If you have been considering a purchase or a refinance, now is the time!  The attached chart shows mortgage interest rates since 1972.  Right now is the bottom.

While our market has not been stellar over the past few years, it is good to keep the relative strength in our market in perspective.  The national media focus have been on the markets that have been the hardest hit.  Our local market has been much more stable.  It would be a much different scenario locally if home values would have dropped significantly.  As it stands, we are down just a few percentage points over the past few years and relatively few homeowners who put down a 10-20% down payment are “upside down” in their mortgage.  See the chart below to see the strength in our local market over the past three years.  Boulder County continues to be a good place to invest and own real estate.

 

Boulder Extraordinary People Lecture Series

by | Mar 1, 2010 | Colorado Lifestyle

There is much to do in and around Boulder, you just have to look for it.  The University is the backbone of our cultural and educational opportunities buy business leaders and athletes also provide an interesting layer of texture to our community.

In conjunction with Boulder’s 150th year celebration, the Boulder History Museum is hosting a series of lectures by some of Boulder’s most influential citizens.  There are only a few dates left and the lineup sounds very interesting. 

Tues., March 9 · Tom Cech
Nobel Laureate in Chemistry, Distinguished Professor and Director of the Colorado Initiative in Molecular Biotechnology.

Wed., April 7 · Nick and Helen Forster
Musicians, songwriters, actors and hosts of etown, a nationally acclaimed live radio program based in Boulder.

Tues., May 4 · Frank Shorter
Olympic champion, sports commentator and a driving force in the distance running boom that started in the U.S.

All programs are held at the historic Chautauqua Auditorium.  Click here for ticket information.

Boulder Home Appreciation Ranks 82nd Nationally

by | Feb 25, 2010 | Boulder County Housing Trends, Statistics

The Federal Housing Finance Agency released released their 4th quarter home price index today.  Boulder County is one of the 299 Metropolitan Statistical Districts (MSA’s) that are tracked and ranked in terms of home price appreciation (or depreciation).  Boulder ranked 82nd out of the 299 tracked areas in terms of 1 year appreciation ending December 31, 2009.  The one year return was -1.45%.  For the 4th quarter the appreciation was .18%.

Nationally the overall appreciation during 2009 was -1.21%.  Colorado ranked 2nd in the U.S with a 3.07% increase.  The top MSA over the past year was Terre Haute, Indiana whose one year return was 3.11%.  The largest depreciation was seen in Bend, Oregon at -20.55%, closely followed by Las Vegas, NV at -19.30%.

The chart below shows the home appreciation in Boulder compared to that of the United States as a whole.

For more graphs including four year accumulated appreciation of selected markets and how Boulder has ranked nationally since 2006, click here.  For a list of the top and bottom 20 areas for home appreciation and a full list of all 50 states ranked by 1 year home appreciation, click here.