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$8000 First Time Buyer Extension and New $6500 Tax Credit

It's officially passed the House and Senate, and is now awaiting the President's signature. Along with the extension of the $8000 First Time Buyer credit (now applies to any buyer under contract by April 30, 2010 and settling by June 30, 2010), there is now a new credit category: long-time residents of the same principal residence which has been given the shorthand name of "move up buyers"--though in reality it could just as easily apply to "move down buyers."

If a homeowner has owned and used the same residence as their principal residence for any five consecutive years in the last eight (as of the date of purchase of a subsequent residence), then they are treated as a "first time home buyer" eligible for a $6500 tax credit when they file their next return.

Click here to continue reading more about the $8000 and $6500 home buyer credits.

Up and Coming in Petworth: Mayor Fenty Visits

I happened to stop by a client’s new house today–a fantastic renovation of a rowhome in Petworth–and whom should I see walking down the street but Mayor Fenty himself! He was checking out the neighborhood, shaking hands, etc.–no doubt checking up on all the recent development in the area! He was very interested in the recent sales in the neighborhood, which obviously has been undergoing a lot of changes lately, so we chatted for a few minutes.

Read the rest of the post here.

Simultaneously Buying & Selling a Home

Now that the first time buyer rush is nearing its end (unless it’s extended…stay tuned…), and there’s a lack of inventory for entry-level price points (below $450k-ish) in much of our area, this might be the ideal time for owners to start thinking about putting their homes on the market in our area. Yes, despite the holidays coming up…especially if the credit gets extended.

But many sellers worry:

• What happens if I can’t sell my home and I’m already under contract on another?
  
• What if I have a contract on my home but it falls through?
  
• What if I can’t even find a home that I want to buy and someone has already bought mine?
  
• How do I coordinate the closings so that I’m not homeless?

Click here to continue reading the post.

Northern Virginia & Washington, DC, Real Estate Market Update - September 2009

This is the monthly market update I provide to my clients. To be added to the mailing list so that you receive these updates as soon as they are available, please sign up using the box on the right hand side of the blog page.

The market doesn't seem to have slowed down very much this Fall.

There are plenty of buyers playing beat-the-clock, but the big news continues to be the lack of inventory in the greater NoVA area. The lack of homes for sale, primarily spurred by lower prices that are driving sales, is compounded by increasing new construction sales. KB Home has announced it intends to resume building in the DC area after curtailing operations in late 2007, as described in this article. The article notes that Toll Brothers has also started snapping up properties, now that listings for sale have reached their lowest level since January 2006.

Rumors abound about a potential extension of the $8000 tax credit currently scheduled to expire November 30, but no official word yet. Stay tuned. Given our lack of inventory, if the credit gets extended then we better hope that entry-level owners decide to sell or we will have even more frustrated buyers in our area.

On the lending front, FHA may be heading for problems. The agency, which is responsible for many purchase money loans given the current environment, recently announced its cash reserves will drop below its Congressionally mandated level. This sparked a number of program changes, including special appraisal rules, similar to the HVCC that was instituted for conventional loans a few months ago--so buyers and sellers should be prepared for even more appraisal headaches to come!

In other news, here are some good articles I came across this month: 7 New Rules for the First Time Buyer and Credit Scores: What You Need to Know.

As always, please let me know if I can do anything to help you or your friends with your real estate needs.