JANUARY 28, 2010 ISSUE
Realtors’ 2009 Numbers Reveal Local Real Estate Market Continues to Bounce Back After Tough 2008
Comparisons of residential real estate sales in the High Country indicate the market is definitely stabilizing, according to the High Country Association of Realtors. While there was an overall decline in residential sales from 2008 to 2009, it was a decrease of about 9 percent.
“When you compare the year-end number for 2008 and 2007, you see that was when the big drop occurred,” said Hope Harvey, president of the association. “Sales were robust in 2007, but stalled in 2008 with the financial collapse and the uncertainty of elections. That’s when we saw local residential sales decline by about 28 percent,” she explained. “Seeing sales numbers begin to climb indicates we are starting to see some recovery and better days are ahead.”
According to Harvey, the average number of days residential properties are on the market has increased over the three-year period as it became more difficult for people to buy homes for economic reasons and as more properties were put on the market.
“In this area, we saw a lot of people with second, third or even fourth homes, put one or more properties up for sale,” said Harvey. “People would see which home sold and then live or rent the one that didn’t sell,” she explained “As a result, there are still a lot of residential properties listed, and it will take time for that inventory to be sold.”
That leaves a large number of houses for homebuyers to choose from, and the association points out that the Homebuyer’s Tax Credit now goes beyond just first-time buyers. On November 6, 2009, President Barack Obama signed The Worker, Homeownership and Business Assistance Act of 2009, which includes an $8,000 tax credit for qualified first-time buyers and a $6,500 tax credit for qualified existing homeowners.
The tax credits now apply to sales occurring on or after January 1, 2009, and on or before April 30, 2010. In cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010, will qualify.
For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns. For both tax credit programs, the purchase price of the home must be less than $800,000.
The $6,500 tax credit is available to existing homeowners who have lived in their current residences for at least five years, and is also available until April 30. More information can be found by clicking to www.federalhousingtaxcredit.com.
For more information about the High County Association of Realtors, click to www.highcountryrealtors.org. The association is composed of members in Watauga and Avery counties and the surrounding area who maintain a marketplace where buyers and sellers can safely transfer property under the guidance of a professional held to standards of excellence.
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