Cockeysville Home Sale Statistics February 2010

Cockeysville houses that sold in February 2010 were up 40% over February 2009 from an average sales price of $203,000 last year up to $284,450.

Under contract prices are down 19% over last year at this time to $300,000 from $372, 450.

For sale is down 5% to $339,900 from $359,900 last year.

There were 97 homes for sale in 21030, 9 under contract, and 10 sold in the month of February.

These numbers are fairly good considering the mutiple blizzards and snowstorms we had in the month, slowing the market down tremendously!

View the Cockeysville Home Sale Statistics for February 2010.

Please note that these are statistics from the multiple list. The chart is an overview of the zip code and does not take into account the type (condo, townhouse, single family) or condition of the home. To have a true value understanding of your Cockeysville home or Hunt Valley neighborhood, these factors need to be taken into consideration. If you would like a Cockeysville or Hunt Valley home price evaluation, please contact me today.

Nine Weeks Left in Homebuyer Tax Credit Extension — Will It Be Extended Again?

A discussion I have been involved with here in the Baltimore area about the crippling snow and the effect on the Baltimore real estate market has people in the real estate world wondering if the homebuyer tax credit may be extended again.

On Monday, the Wall Street Journal wrote an article about the credit, and how lobbyists are gearing up to try to have it extended.

In the northeast, the sheer fact of houses not being able to be shown for the majority of a month due to the snow is a big part of the issue.

Other areas of the country make the point, as recounted in the Wall Street Journal article, that banks often are often taking a long time to approve short sales. I personally have found that this delay creates the issue of buyers who qualify for the credit not considering these homes as options.

It will be interesting to see if it will happen. Washington stated that it would not be extended further, and I can understand if that does not happen. Without the urgency of it ending, the credit cannot do its’ job, which is to help people get into homes.

The other looming deadline we have right now is the upfront Mortgage Insurance Premium for FHA loans, and the fact that that rate is going up from 1.75% to 2.25% for loans whose case numbers are assigned after April 5, 2010. This means that buyers desiring to use FHA financing should be pushing to have a home under contract by the third week in March, giving them about three weeks from now, to ensure their case number is assigned prior to April 5, 2010.

Two very important deadlines are looming, and I will be following how the Baltimore real estate market responds to them.

Baltimore Real Estate Market Third Week of February 2010

As we enter the fourth and final week of February, I am reminded as to where the market was last year at this time versus this year.

I have seen showings become more frequent in the past week and the excitement over spring’s arrival in the next few weeks definitely brings people out to look.

The snow storms we had this month really put a halt to the market, as some homes were inaccessible (all of them for a long period of time) until just recently.

February is not notoriously a great time to sell your house. Often times people wait “until spring” to make sure the snow is over and the buyers are out looking.

This year we have the First Time Homebuyer Tax Credit end looming, and sellers are taking notice and attempting to get their homes on the market. The other driving force we have right now is the April 5, 2010 deadline for FHA to avoid the higher up front mortgage insurance premium.

It appears that tomorrow we will have heavy rains which should melt a lot of snow, and may cause some flooding. These are issues that sellers most likely usually don’t have to handle, and buyers need to be aware that these are highly unusual circumstances.

Many gutters have fallen, and one of my clients, who is making a claim on his gutter system said that his insurance company told him they are declaring the Baltimore area a “disaster area”. This means that roofers are overwhelmed and not available, which means this rain tomorrow and possible snow Thursday could be big problems for many Baltimore homeowners who no longer have their usual defense against water coming into their basements and main levels on their homes.

Sellers have to be aware of what is happening, and be prepared. Buyers need to be understanding and patient, and realize that these homes most likely do not usually let the elements enter!

Hopefully March will bring us much needed warmer weather so Baltimore homebuyers can get out and take advantage of these credits and lower upfront PMI, and sellers can have their homes returned to their usual states.

Homebuyers Claiming Tax Credit Cannot E-File

Homebuyers who are claiming either the $6,500 move up credit or the $8,000 First Time Homebuyer Tax Credit cannot file electronically, according to the IRS.

One of my past clients let me know of this after she read an article on MSN. (Thank you for the information and link!)

The reason for this restriction is that unfortunately there were many suspicious claims last year, and the government is trying to curtail tax fraud. There is also an additional form and a decent amount of supporting paperwork that needs to be sent in to prove eligibility for the credit.

The additional paperwork First Time Homebuyers claiming the credit need:

For purchasers of conventional homes, a copy of Form HUD-1, Settlement Statement, or other settlement statement, showing all parties’ names and signatures, property address, sales price and date of purchase.

For purchasers of mobile homes who are unable to get a settlement statement, a copy of the executed retail sales contract showing all parties’ names and signatures, property address, purchase price and date of purchase.

For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.

For those long time homeowners who moved and qualify for the $6,500 credit, this is the additional paperwork they will need to submit:

Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements,

Property tax records or

Homeowner’s insurance records.

Here is Form 5405 from the IRS.gov site. For instructions on how to fill it out, click here. For long term owners looking to claim the $6,500, here is Form 1098.

The good news is that homebuyers who are going to claim the credit can still use the electronic tax preparation programs they would to e-file, but instead of clicking a button to submit, they will need to print it, attach the supporting documents, and mail!

(All in all, the few extra steps and the longer time it will take are worth the up to $6,500 or $8,000 credit that the filer will receive!)

Cockeysville and Hunt Valley Home Sales Statistics Year 2009

Cockeysville and Hunt Valley home sales in 2009 statistically were very stable.

There were consistently over 100 houses on the market for sale in Hunt Valley. December 2009 was a slow month with only 4 houses going under contract, but other months on average 10-16 did. That same average applies for properties that settled.

From December ’08 to December ’09, there was a 16.1% increase in sales price for homes under contract & 8% in properties that settled.

The median list price remained the same, around $359,000. The median price of those under contract is much lower, though, at about $317,000. The ones that settled averaged around $320,000. This shows that the higher priced ones are staying on the market longer, with about a $40,000 difference from average list to average sold price. It appears once reduced to a certain level, the houses do go under contract and settle.

Not even just price went up, but number of units as well. Things have definitely improved in 21030 home sales in the last 12 months. With the First Time Homebuyer tax credit extension, I foresee more homes going under contract through April 30, 2010 in Cockeysville, since the price range is very popular for those who are eligible and taking advantage of this credit.

Home sellers in Hunt Valley and Cockeysville need to take advantage of this credit, and sell to those who are out there now, and won’t be after April 30.

Update on Questions on Homebuyer Tax Credit for Married Couples

When the Homebuyer Tax Credit was extended to include long-time homeowners buying new houses and getting a $6,500 credit, a whole new group of questions came into play.

Unfortunately for a few clients of mine (and I am sure many others out there), the answers were not what they were hoping.

• One person owns a house that s/he has lived in for 5 out of the last 8 years. S/he got married in 2009, and the partner has never owned a home. Do they qualify for either credit? Unfortunately, according to the IRS, NO. From the IRS site below, the answer:

A. No. Both you and your spouse must be first-time homebuyers in order to qualify for the first-time homebuyer tax credit. Since you had an ownership interest in a principal residence during the three-year period ending on the date of purchase, neither you nor your spouse qualifies for the credit. Similarly, both you and your spouse must be long-time homeowners of the same previous principal residence in order to qualify for the long-time resident homebuyer credit. Since your spouse is not a long-time homeowner of your current principal residence, neither of you qualify for the credit.

 

• A newly married couple each has owned their own personal residences for 5 out of the last 8 years. Do they qualify for the $6,500 credit? Also, unfortunately, NO. They must have owned the SAME residence together for that time period. From the IRS site below:

A. No. Both spouses must have owned and used the same previous principal residence for five consecutive years out of the eight-year period ending on the date of purchase of the new principal residence to be eligible for the credit. Since you and your spouse owned and used different principal residences, neither of you qualify.

If these couples were unmarried, and co-buying a new house, they would qualify.

For people who are planning to buy something in 2010 and were counting on that tax credit, this is not very helpful. That being said, if you have a house to SELL, you need to keep in mind that the buyers of the house you are SELLING may still qualify, so you should try to sell while people will still be buying.

Many times sellers forget how these credits may impact the sale of their home, because they are only indirectly affected. My thoughts are that if you are considering selling your Baltimore or Towson home in 2010, get the sale in BEFORE the credit runs out. With the number of days on the market averaging 60-180 in some areas of Baltimore and Towson, then that means getting your home ready to sell NOW!

President Obama Signs Bill Extending Tax Credit — What are the Details?

**Update: According to the National Association of REALTORS (R) , the answer to the main question below is YES, buyers settling houses after November 6, 2009, even if under contract before the bill was signed, would qualify for the credit. I still recommend speaking with your tax accounting professional to determine your eligibility and to be certain on the dates. I am not a tax accountant or an attorney, and am reporting on information given to the public by NAR, not providing legal advice.**

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This afternoon, President Obama signed the tax credit extension bill, making way for more homebuyers to take advantage of an unusual opportunity — to get money back on their taxes AND buy a home!

There are still some questions out there that I have been getting conflicting answers on.

The $8,000 tax credit for first time homebuyers is much the same as it has been all of 2009, except for the income limitations.

According to the National Association of REALTORS(R) in a great explanation of the bill , 

“Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,  single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.”

The new bill includes a provision and $6,500 credit for current homeowners who are buying a new residence, provided they have lived in their current home for the last five consecutive years out of the last eight.

NAR reports the rules as:

“Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.”

The main question I keep receiving and I have also been asking is, if a homeowner qualifies for the credit in all ways, but is ALREADY UNDER CONTRACT on their new home, are they eligible? The bill says PURCHASING a home. Is that from date of SETTLEMENT or CONTRACT?

The law is very clear for the first time homebuyer side, but is muddy here.

CNN explains it as well as possible too. Again, no mention of this situation.

My best advice to anyone would be to contact your tax accountant to find out their best answer to this question. Hopefully it will be cleared up quickly.

Questions and Concerns on the New Tax Credit Bill Due to be in Effect December 1, 2009

Please see more updated posts on the” tax credit extension” where some of these questions & answers & dates are addressed.

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There are many confusing points and valid questions at the forefront of the “tax credit extension” and new credit for second time buyers, and in delving further, I am not finding the answers needed. I am hoping that once the bill is signed by the President, we will be able to see the bill and be able to clarify a few more points.

Here is a good comparison chart provided by the National Association of REALTORS. It does not appear to address whether if a buyer is under contract NOW for the $6,500 and settling after December 1, if they would or would not be eligible. The effective date of the bill is December 1, 2009.

Again, I am hoping for more clarification once it is signed by the President. I wonder if we will see a large amount of settlements extended into December if it is the case!

Senate Passes Homebuyer Tax Credit Extension November 4, 2009

According to CNN, by a vote of 98 to 0, the Senate voted to extend unemployment benefits and extend the First Time Homebuyer Tax Credit!

The next step is to move onto the House of Representatives, who is expected to pass it as well as early as tomorrow, and get the bill into President Obama’s hands by the end of the week.

The bill extends the credit to buyers having a binding contract on a house by April 30, 2010, and settle by June 30, 2010. It would also allow for buyers who have currently lived in their home that they own for five years or more to receive $6,500 credit on their next home in that same period. Both of these buyers will have qualifying factors.

CNN reports that: 

The Senate bill would raise the adjusted gross income cap to $125,000 for single filers and $225,000 for joint filers. The amount of the credit currently begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

This is exciting news, and I will keep you updated as it moves through the House and hopefully onto the President.

Towson Condominium Real Estate : New FHA Condo Guidelines Effective November 2, 2009 May Harm Towson Condo Owners

Towson Condo Owners have a new issue to grapple with.

First there was the change in the laws for condo insurance converage. Now we have the new FHA condo guidelines that may affect many people who want to buy or sell a Towson condo!

HUD announced this change in July, and the new guidelines were to take place October 1, but on September 15 they extended it per this note on their website: “This new approval process was effective for all case numbers assigned on or after October 1, 2009. However, the new effective date is for case numbers assigned on or after November 2, 2009“. This allows more time for buildings and mortgagees to be prepared for these changes. Here is the mortgagee letter from HUD, under “Notice on FHA Condomimium Processing” explaining the changes.

The biggest issue is that EVERY condo development in the United States will have to go through this process to be re-qualified to have FHA loans allowed in their building. Imagine the hold up/back up this is likely to create.

A major change in the guidelines that could ALSO create a delay is the elimination of the “Spot Loan Approval” process.  HUD states the reason for this is that “DELRAP and HRAP processes have been streamlined to allow for uncomplicated condominium project approvals eliminating the need to approve units on a “spot loan” basis.”

Unfortunately, this new process could add a decent amount of time to approving a condo project because much more paperwork has to be submitted to the bank, reviewed, and then submitted onto HUD.

Add onto that the many people wanting to take advantage of the $8,000 First Time Homebuyer Tax Credit that is set to expire at the end of November, and you have a recipe for a huge disaster looming in the near future!

SO, if you have been considering buying a condo in Towson or selling one, the time to do so is NOW. Luckily with this extension, we have a little more time to GET IT SOLD!

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