Cheryl Kempenich

The full $8,000 Tax Credit is for first-time-home buyers (either spouse if filing jointly) who have NOT owned a principle residence during the three-year period prior to the purchase. Ownership of vacation property or rental property does not disqualify home buyers from this program.

• The maximum credit is $8,000 or 10% of the home purchase, whichever is less.
• The credit is available for homes purchased on or after November 6, 2009 and before June 30, 2010. However contracts must be fully ratified before May 1, 2010.
• To qualify for the full tax credit, married couples’ modified adjusted gross income (MAGI) should be under $225,000 (up from $150,000) and single filers’ MAGI should be less than $125,000 (up from $75,000). Partial tax credits may be available for married couples with MAGI incomes of over $225,000 but under $245,000 and single filers with incomes over $125,000 but under $145,000. If married couples who qualify for the first-time tax credit file separately, they would both claim 5% of the home purchase or $4,000 each (whichever is less) on their tax returns.
• There is no recapture or repayment clause IF the home is owned for at least 36 months.
• Current Homeowner: An individual (and, if married, an individual’s spouse) who has owned and used the same residence as a principal residence for any 5-consecutive-year period during the 8 year period ending on the date of the purchase of a new principal home will be eligible for a $6,500 tax credit ($3,250 married filing separate).
• The full amount of the eligible tax credit is refunded to the buyer, regardless of whether the buyer has paid an equivalent amount in taxes.
• Home purchase cap of $800,000 (no cap in previous version).
• Special exemptions and extensions for military, members of the Foreign Service of the United States, and employees of the intelligence community: If such individual serves on official extended duty outside of the United States for at least 90 days between December 31, 2008 and May 1, 2010 the deadline for entering into a binding contract to purchase a home will be extended to April 30, 2011. Closing must be before July 1, 2011.
• Credit is only available to purchasers who are at least 18 years old.
• This version now requires that the home purchaser attach a properly executed copy of the settlement statement used to complete the purchase to the tax return.

If you purchased a home between January 1, 2009 and November 6, 2009 you will fall under the original tax credit guidelines.

Writes RISMedia.com,

“President Barack Obama has approved the first-time homebuyer tax credit extension which will extend the tax credit until April 30, 2010.

The extension is part of a $24 billion economic stimulus bill that will extend the $8,000 tax credit for homebuyers who are purchasing their first home from the current November 30 deadline and expands the program to offer a credit of $6,500 to homeowners who have lived in their current home for at least five years and are seeking to relocate.”

For more information about who is eligible to receive the credit, view the original article.

To learn more about how you can apply for  the credit or to set up a showing, contact me at 612-735-0553.

The data compiled is from the Multiple Listing Service.

There are currently 76 active listings in the district. The average list price is $403,098, which has been reduced by 5% from the original list price. 12% of these listings are foreclosure properties. The average market time is currently 120 days.

There are 23 pending sales with an average list price of $302,769. 22% of these listings are foreclosure properties. The average market time was 92 days.

There have been 172 closed sales between January 1, 2009 & September 30, 2008. The average selling price was $280,954. The selling price averaged 96% of the original list price. 13% of the sales were foreclosure properties. The average market time was 92 days. The most expensive home sold was $935,000. The least expensive home was $85,500. 58% of these properties were purchased with conventional financing, 30% FHA, 11% with cash, & 1% VA,

There have also been 18 expired listings that have not relisted.

If we compare the sales for the same time period in 2008 we find that this year we have had 2 more sales, 5% more foreclosures, average selling prices are down by 7%, & the marketing time is virtually unchanged.

If we compare the sales for this decade we find the current average selling price is most closely related to the sales in 2003 which recorded 225 sales with an average selling price of $287,766.

The record year was 2006 with 193 sales and an average selling price of $338,645.

There are charts below. If you have any questions or know anyone looking to buy or sell.

Call me at 612-735-0553. You can also check out my website at www.CherylKempenich.com.

Information compiled from the Multiple Listing Service, which is deemed reliable but not guaranteed.

The data compiled is for lakefront property is Southern Chisago County, from January 1, 2009 thru September 30, 2009.

There are currently 80 active listings on 18 different lakes. The average list price is $374,676, which has been reduced by 4% from the original list price. 8% of these listings are foreclosure properties. The average market time is 271 days.

There are currently 8 pending sales with an average list price of $314,075. 38% of these listings are foreclosure properties. The average market time was 267 days.

There have been 33 closed sales between January & September. The average selling price was $239,600. The selling price averaged 89% of the list price. 59% of the sales were foreclosure properties. The average market time was 184 days. The most expensive home sold was $496,000. The least expensive home was $75,000. 55% of these properties were purchased with conventional financing, 24% with cash, 9% FHA, 6% VA, & 3% contract for deed.

There have also been 33 expired listings that have not relisted.

If we compare the sales for the same time period in 2008 we find that this year we have had more sales, more foreclosures, lower selling prices, & lower marketing time in 2009.

If we compare the sales for this decade we find the current average selling price is most closely related to the sales in 2001 which recorded 57 sales with an average selling price of $223,076. The record year was 2006 with 81 sales and an average selling price of $385,697.

Industry groups agree that not only has the federal housing tax credit worked, it should be extended to promote further economic growth. Over the last year, first-time home buyers have supported roughly 45 percent of real estate sales. Economists and industry leaders want to see the credit extended to stabilize home prices and build consumer confidence.

Karen Rivedal of the Wisconsin State Journal writes, “The National Association of Home Builders estimated that extending and broadening the tax credit would spur 383,000 additional home sales, including 80,000 new home starts as more sales of existing houses deplete the nation’s inventory of unsold homes.”

Home prices in the Minneapolis/St Paul area have seen their third straight month of appreciation. While this is an encouraging sign for the economy, prices are still much lower than they were last year, meaning this is the time to buy.

Mark Reilly of the Mpls/StPaul Business Journal writes, ”