Tri-State Real Estate Blog

Worker, Homeownership and Business Assistance Act of 2009

2009-11-07T11:16:26-05:00

The Worker, Homeownership and Business Assistance Act of 2009, was signed into law on Nov. 6, 2009. It extends and expands tax credits for first time home buyers implemented with previous Acts.

A summary from the IRS:

"Extends deadlines for purchasing and closing on a home."
"Authorizes the credit for long-time homeowners buying a replacement principal residence."
"Raises the income limitations for homeowners claiming the credit."

With the new legislation, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit and people with higher incomes may now qualify.

This is excellent news for those first time home buyers who weren't able to settle in time to take advantage of either the Housing and Economic Recovery Act of 2008 or the American Recovery and Reinvestment Act of 2009.

It also welcome news for those long-time home owners who desire to move to replace primary residence (as opposed to those who invest for the short term to resell a property).

As always, we are here, working full time as team in the real estate market and have the experience and knowledge to meet your home buying and selling needs. If you are considering buying or selling, we are available for you to interview or to consult with us at 302-999-6966.

In addition, you can view ALL homes for sale in the area at our real estate super-site http://www.TriStateTeam.com

Respectfully,

John & Mary Luca

For detail information directly from the IRS web site, click this link: http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Quotes from Clients October 9, 2009:

"Sure John, if I see anyone wanting to buy or sell a house I will be linking you up. You are a great guy. Very relaxed and reassuring. My wife and I were very comfortable with you from the 1st day we met you. Keep up the good work!"

~ Odiraa

Statistics show how to sell homes in less time. How? Price it at market from the start.

2009-11-01T15:03:32-05:00

Sellers commonly ask why can’t we just start a little higher and see if someone makes an offer. The reason that idea doesn’t work is because when a home is priced above its true value, it doesn’t compare favorably with the homes that are priced at their true value.

This is especially true for homes that are in a market where the values are declining. For example, let’s take a home that has a real value of $300,000 and it is put on the market at $315,000. The home does not sell because compared to some other $315,000 homes (which are priced at their real value) this home doesn’t show as well. $15,000 may not seem like much for a home that is priced around $300,000 but $15,000 is about what a builder (in this price range) would charge to add a sunroom or partially finish a basement. So which house would you buy between 2 houses that are practically identical, and priced the same – the one with the sunroom or the one without it? See the difference?

Now factor in the fact that the market is dropping in value 1% every 60 days – which is what we’ve recently experienced in New Castle County in the past 12 months. So now the house has been sitting on the market for 4 months without a price reduction. And now its real value has dropped 2% or $6000. Now the house is $21,000 over-priced. Buyers and their agents quickly recognize that it’s overpriced and showings have decreased dramatically and continue to decline. Now the only way to sell this home is to have a price reduction of at least $21,000. However, now it’s been on the market for 4 months and that may not be enough of a price reduction to get it sold. Had the home been priced at its true value it would have had a much greater chance of selling within the first 2 months. See the chart below that shows homes priced correctly from the start (not requiring a price reduction) sell on average in less time and for a higher percentage of its listed price vs. the homes that required one or more price reductions.

Please feel free to contact us with any questions you have regarding buying or selling real estate.

Respectfully

John & Mary Luca 302-999-6966

Also feel free to contact us for additional Charts and Tables specific to your area.

New Castle Chester and Delaware Counties Average SP/OP Comparison Chart - No Price Change vs 1+ Price Change

New Castle Chester and Delaware Counties Average SP/OP - No Price Changes vs 1+ Price Changes

Inventory Slightly up from last month, yet homes priced correctly still selling well - average 76 days on market - New Castle, DE and Chester County, PA

2009-10-02T18:16:32-04:00

Market statistics continue to show that homes for sale that are priced correctly according to their condition and the market comparables (similar homes sold recently) sell well - going Under Contract on average in just 76 Days on Market (DOM) in Sept 2009. This is down slightly from a year ago (at 79 DOM in Sept 2008) and off the annual high of 103 DOM in Jan of 2009.

This is in contrast to the increase in the average Days on Market for both For Sale and Expired home for sale which we've seen in the past year. Expired Homes (those that did not sell) have gone from 155 average DOM last Sept up to 188 average DOM as of Sept 30 2009.

If you want to sell your home, John Luca has the experience to review your home's condition as well as the market comparables of recently sold homes and advise you on the correct price point as well as staging and other helpful sales tips - this can make the difference between you going Under Contract and being able to move or ending up on the Expired list.

Please call John at 302-999-6966 to answer any real estate related questions on the market in your area, or about buying and selling in this environment.

Have a great October!

Mary Luca

Charts used in the analysis - plus additional statistics are below for your viewing - click on the links to view all of the data that I've prepared for you.

Mary and John Luca

TriStateTeam.com at Prudential Fox & Roach

4764 Limestone Rd
Wilmington, Delaware 19808

Office: (302) 999-6966

Email Link

Download Average Days on Market for Under Contract Properties Chester and New Castle Counties Sept 30 2009 John and Mary Luca

Download Basic Absorption Residual Inventory Chester and New Castle County Sept 30 2009 John and Mary Luca

Download Months Supply of Inventory and Days on Market Chester and New Castle County Sept 30 2009 John and Mary Luca

Download Supply and Demand Chester and New Castle County Sept 30 2009 John and Mary Luca

Download Supply and Demand FS UC New Chester and New Castle County Sept 30 2009 John and Mary Luca

Increase in Sales, Rising Median Sold Prices for New Castle- Chester- Delaware Counties

2009-09-05T18:25:11-04:00

Both the anecdotal and market data show that volume of sales and sales prices have increased.

First time home buyers are snapping up inventory with the November 30^th deadline quickly approaching. Interest rates have improved as well, which has increased buying power.

John is out showing homes to a couple different buyers today, and when he called the appointment center to show inquire about an “active” listing he was told it was now under contract – that happened twice just today.

Looking at the Median Price Chart below (click the link to see the full size chart), you can see that the Median Sold Price has increased 9.1% (comparing the last 12 weeks over the previous 12 weeks), while the Homes for Sale are only up .7% - meaning that it's not that higher priced listings have come on the market and driven up the purchase price. Instead, the listing prices are rather stable, and the buyer is moving up in price point. This is typically what happens in a cycle such as the one we're in. The first time home buyers will come back in the market first, which allows the sellers to then buy up in price.

Also if you look at the Units Sold Chart below, you can see that there was an increase in the number of units sold while that price point moved up - so it wasn't just a weak market with a few outlier purchases. The Units Sold increased a strong 38.1% (last 12 week average versus previous 12 week).

Please call John at 302-999-6966 to answer any real estate related questions on the market in your area, or about buying and selling in this environment.

Mary

Download Median Price past 6 months NCC, Chester and DE counties John Luca

Download Units Sold Supply and Demand past 6 months NCC, Chester and DE counties John Luca

New Castle County Home Sales Graphs: Days on Market, Median Sold Prices, More

2009-08-22T20:24:46-04:00

Here are statistics to show how the real estate market has been performing over the past two years through June 2009. Click on any graph to see a larger version, complete with a table of the statistics.

As you can see, after a drop from November 2008 to February 2009, the median sold price has risen again to levels seen early last fall.

Other good news is that the Months Supply of Inventory (MSI) has dropped significantly from it's peak in January 2009 of 13.6 months, to a low of 6.3 months in June 2009. Good news for sellers also is found in the Days on Market (DOM) - which has dropped from a peak of 98 days to 79 days in the same time period.

Finally, an interesting bit of information can be gleaned from the Supply and Demand chart and table. Look at the table and you'll see that Homes for Sale have an average DOM of 132 days (which has dropped since January at 141 days), and Homes Under Contract have a lower average DOM of just 79 days (down from 98 days in January). Expired homes for sale, actually have the highest DOM at 188 days (which is UP from January at 169)

As you can see, those homes that get contracts are averaging just 60% of the DOM vs all homes for sale. These homes that get contracts tend to be priced correctly from the start (the sellers are realistic) and are in better condition. The homes that are not in top condition, or priced above the comparable sales, will languish on the market, suffering the fate of higher days on market. This makes the house look stale to new buyers in the market as they wonder why no one else has purchased the home yet, which ultimately can decrease the sales price of the home.

For a detailed price analysis of a home you'd like to sell or purchase, please contact John Luca (John@TriStateTeam.com or 302-999-6966).

Mary Luca

Market Update August 2009 - things are looking up

2009-08-06T22:39:13-04:00

The summer is flying by so fast, I cannot believe it's August already!

I thought I'd update you on how I see the market performing lately, while sending the link to my monthly market update newsletter which is: www.TriStateTeam.net .

The real estate market in New Castle County and surrounding areas is definitely seeing signs of positive activity. Days on the market have been trending down in addition to an increase in pending sales over 2008.

The first time home buyer tax credit is certainly driving the market, which is also helping the "move-up" buyer into their next home. Please keep in mind the deadline for the tax credit is November 30, 2009, which means that any first time home buyer who qualifies for the credit will want to have a home under contract by no later than October 15th, 2009, in order to allow at least 45 days for the closing process.

If you know of anyone who is considering a home purchase now is an excellent time to be looking with the tax incentives and low interest rates - and of course, I'd be excited to assist them in finding just the right home at the right price.

Please feel free to contact me with any questions, or any referrals you may have (302-999-6966).

I hope you enjoy the rest of your summer.

Respectfully,
John

Video Explanation of First Time Home Buyer $8000 Tax Credit: http://www.teamluca.com/First_Time_Home_Buyer_Tax_Credit/page_2263242.html

First Time Home Buyer Tax Credit - Deadline Approaching

2009-08-01T15:18:48-04:00

August 1, 2009:

60 days and counting - to when all first time home buyers should get their first home under contract for the November 30th, 2009 deadline.

1) Record low interest rates,
2) a super-affordable buyer's market and
3) this $8000 tax credit

are three of the best reasons you need to call John Luca now at 302-740-5872.

What if you already own a home and wanted to move up?

Now's a great time if the home you're in is priced in a typical first time home buyer range. That means there are more buyers for your home during these last 60 days - and it will be easier for you to sell and therefore move up to your new home! We have a great track record on selling homes with our multimedia marketing strategies.

Contact John @

John@TriStateTeam.com
302-740-5872
302-999-6966

Summary of First Time Home Buyer Tax Credit
http://www.tristaterealestateblog.com/2009/02/first-time-homebuyer-tax-credit-8000-.html

More Details on First Time Home Buyer Tax Credit
http://www.tristaterealestateblog.com/2009/02/further-explanation-on-8000-refundable-tax-credit.html

Main Site First Time Home Buyer Tax Credit
http://www.federalhousingtaxcredit.com/2009/index.html

As always, if you have specific questions on buying, selling or investing - please call me (John Luca) at 302-999-6966.

NEW - Search for Homes from Your Cell Phone using GPS

2009-05-13T21:34:29-04:00

Search all homes for sale in the Tri-State Area from your personal cell phone.

One of the top real estate agents in the Tri-State Area announced today that cell phones can be turned into the ultimate house-hunting tool. John & Mary Luca with The Luca's Tri-State Team at Prudential Fox & Roach is providing consumers with a mobile application called Homes for Sale that makes it possible to search all local property listings from their phone, regardless of whether it is listed by John Luca or another broker/agent. Homes for Sale can be downloaded to cell phones, iPhones and BlackBerry devices by visiting www.TriStateTeam.com.

With Homes for Sale, consumers can be in any neighborhood and view detailed home information at the touch of a button. The GPS technology in the mobile phone, where available, locates users and pulls up addresses and information on property listings in their immediate area. Sales price, square footage, tax information, beds/baths, interior and exterior features and pictures become available instantly in the palm of their hand.

Consumers can also search by city, zip code, address, or community name when GPS is not available, or if they want to search for real estate in a particular area other than their current location.

The “Call to See” feature within the Homes for Sale application will connect users to John Luca if they have further questions or want to schedule a tour of the property.

"We're all about providing excellent service to our clients by combining the technology they need with our personal market expertise,” said Mary Luca, who is e-Pro Certified.

When downloading the application from John and Mary’s website, www.TriStateTeam.com, consumers will find a "Search for Homes from Your Cell Phone" tool which provides instructions on how to send the application to their personal cell phone. Users simply select their cell phone carrier, the make/model of their device and enter their cell phone number into the downloader tool. Instantly, the application is sent via text message and downloaded to their cell phone just like a game or ringtone.

Homes for Sale is available across every carrier and mobile device via a fully downloadable application or mobile web (WAP) version. The fully downloadable version is live on hundreds of cell phone models on AT&T, Sprint and T-Mobile. If your carrier or cell phone model is not listed on the downloader tool, simply select ‘Other’ and download the mobile web (WAP) version. Smarter Agent is also available on BlackBerry devices as well as the iPhone. The fully downloadable version for Windows Mobile devices, as well as other devices and major carriers, will be added over the coming months.

Homes for Sale is free to download on BlackBerry devices across all carriers and the iPhone, in addition to the free WAP version. For other devices, a nominal monthly carrier charge may apply, dependent on device and carrier, billed directly to your carrier statement.

Market Update

2009-05-11T21:25:24-04:00

Pending sales for April 2009 in the $150,000 & Under price range are up for April by almost 12% compared to April 2008. This is great news for the housing market and also means that the $8000 tax credit for First Time Buyers, along with the historic low interest rates, are definitely stimulating the housing market in this price range. Over time this will have a positive effect on the higher price ranges, as sellers will now be in a better position to “move-up” buying more expensive homes, which for now are still selling at rates below sales numbers for 2008.

Other positive data includes signs of price stabilization in the $150,000-$400,000 price range where the average sold price for the first 4 months of 2009 is 99.6% of the average sold price compared with the first 4 months of 2008.

If you have a question about your particular home or market sector, feel free to give me a call at 302-999-6966. John

Another plus for First time Home Buyers

2009-04-15T13:39:01-04:00

This is a great time to purchase a home if you are a first time home buyer. Besides all of the new tax credits and mortgage programs, you may also qualify for an exemption on County Transfer Tax.

Whenever you buy or sell real property in Delaware you must pay transfer tax to the County and State. The State offers no exemptions, however the County carves out a special exemption for first time home buyers.

In order to qualify for the County exemption you must certify that you have not owned any real property. If you meet this criteria and you are not buying in an incorporated city or town, you will be exempt from your portion of the County transfer tax when you purchase.

This information does not constitute an attorney client relationship nor is it intended as legal advice.

Pricing Your Next Home - Bidding Based on One Comparable Property

2009-03-25T21:15:12-04:00

The question below gives a high level idea of the financial risk you take when bidding on real estate if the property is not valued properly.

Q: Someone in our online forum asked if it was okay to pay $620k for a completely updated dated 3br 2.5ba house in Greenville, Delaware, stating that a house next door sold for that much in 2006.

A: Without seeing the property and comparing it to other sold homes in the area, it would not be possible to give you an accurate answer and would do you an injustice to try to give a yes or no at this point. Meeting with a professional realtor who has experience in studying and pricing homes accurately, and negotiating is recommended to inform you and protect your interests.

However in general, the market is down since 2006. For all of 2006 in the Greenville, Hockessin, Centreville area, the average sold price for homes (that settled in the $50k to $2mm range) was $556,906. Whereas the average sold price for the same range of homes from July 2008 through Feb 2009 was down to $490,602.

To peg the bid for your next home strictly on one home's sales price next door that sold in 2006, would be risky. If you would like an analysis prepared for you, please contact a professional realtor. Typically real estate agents do not charge to work with buyers (we do not), and therefore your representation is free - from finding a home with you, through negotiations (and re-negotiations after a home inspection if needed) - all the way through settlement.

Please let us know if you have further questions or would like a detailed analysis prepared for you.

Sincerely,
John Luca - Licensed in PA, DE & MD
Full Time Expertise - Working Full Time for You!

Walk Score - Compare Walkability of Homes for Sale

2009-03-24T22:26:18-04:00

When researching where you want to live, a handy reference tool is WalkScore. Walkable neighborhoods offer surprising benefits to our health, the environment, and our communities. Use the WalkScore tool below to type in your current address or the address of a home you are considering.

DSHA has once again lowered its rates

2009-03-05T22:15:09-05:00

Things keep getting better for first time home buyers. DSHA has once again lowered its rates for the assisted and non-assisted loans.

Non-assisted loan: 5.5%

Assisted loan: 6.25%

www.destatehousing.com

Call me if you have any questions.

Jason Infanti
Mortgage Consultant
Trident Mortgage Company (302) 999-6940 (302) 999-0578
Jason@JohnLuca.com

Opportunistic Market for Buyers and Sellers - Here's Why:

2009-03-03T10:07:44-05:00

How’s the real estate market? Well compared to the stock market – I’d say pretty good!

This is actually the most opportunistic market I’ve seen in years.

And I’m very excited about the opportunities for both Buyers and Sellers.

The first-time buyer tax credit of $8000 recently passed by Congress is already jump- starting the activity in the first time buyer price range 0- $200,000.

The great news for sellers is home values have only declined modestly in our area compared to other parts of the country. So now would be an excellent time to make a move up, downsize or head to warmer markets where the deals are fantastic.

New Castle County Real Estate Market for February 2009, had an increase in homes under contract along with an increase in homes sold vs January 2009. In addition we saw a decrease in the number of homes “On the Market” dropping from 3977 to 3866 (3% decrease). This continued a 3 month trend of a lower Month’s Supply of Inventory (MSI). The MSI tells how many months it would take to sell all the homes in the county at the current monthly sales average. The MSI is a calculated by taking the current number of homes on the market divided by the average monthly sales number, with the assumption that no more homes would come on the market over that period. We know that homes will continually be coming on the market, but for the purpose of this calculation we use only the number of homes on the market as of right now. For Example, currently there are 3056 homes on the market with an average monthly sales volume of 360 homes sold. Dividing 3056 by 360 equals the number of months it would take to absorb this inventory or 8.5 months. In a strong seller’s market the MSI could be as low as 2-3 months like what had in 2004-2006. In a strong buyer’s market the MSI, would be anything above 10 months of inventory. I consider the market to be a “Neutral Market” whenever the MSI ranges between 5-7 months.

The median sold price and the average sold price continue to decline. The average sold price for the county in Feb 09 was 235,000 and the median was $200,000 - down from $269,000 and $230,000 respectively, from Feb 2008 numbers.

Download March 2009 Newsletter NCCO report

If you have specific questions on buying, selling or investing - please call me (John Luca) at 302-999-6966. Have a great day - I'm off to shovel a driveway at a vacant home for my seller - we've got a buyer touring it today :)

Further explanation on $8000 Refundable Tax Credit

2009-02-23T18:55:17-05:00

The 2009 First-Time Homebuyer Tax Credit

Ken Trepeta

Director, Real Estate Services

National Association of Realtors®

February 19, 2009

Overview

· In 2008 Congress created a $7,500 First-Time Homebuyer Tax Credit.

· It went into effect April 8, 2008 and was set to expire July 1, 2009.

· The big problem: It had to be repaid over 15 years. People viewed it as a debt and not a benefit.

NAR Proposes Changes

In 2008 NAR began advocating to:

· Remove the repayment feature of the credit

· Extend the credit to the end of 2009

· Make the credit available to every home buyer

The 2009 Tax Credit

Working with Realtors® across the country:

· We succeeded in removing the repayment requirement for 2009.

· The credit has been extended to on or before November 30, 2009 and can be claimed by those who closed on homes on or after January 1, 2009. It is still repayable for 2008 purchases.

· The credit has been expanded to $8,000.

· But, it is still only for first time homebuyers

Credit Details

•The new Credit is an $8,000 REFUNDABLE Tax Credit (or up to 10% of the purchase price).

–So if the property is $75,000, the credit is only $7,500. (Assume a property over $80,000 for the rest of the discussion).

•Refundable means that if your total tax liability in the given year is less than $8,000, the IRS will send a refund for the balance.

Refundability –Why it’s Important

· Many taxpayers do not have tax liability that exceeds $8,000.

o For example, according to the 2008 IRS Tax Tables:

· A single filer would need $46,600 in taxable income to have $8,000 in tax liability.

· A couple would need $58,600 in taxable income to have $8,000 in tax liability.

· Those with less tax liability will in most cases get a refund meaning they get the full value of the credit.

Who cannot take the credit?

If any of the following:

–Your income exceeds the phase-out range. This means joint filers with Modified Adjusted Gross Income (MAGI) of $170,000 and above and other taxpayers with MAGI of $95,000 and above.

–You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.

–You stop using your home as your main home.

–You sell your home before the end of three years.

–You are a nonresident alien.

First-Time Homebuyer Definition

•Defined as someone who owned another main home at any time during the three years prior to the date of purchase.

–For example, if you bought a home on January 15, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another home at any time from January 15, 2006 through January 15, 2009.

–So if the last time you owned a home was 2005, you are eligible for the credit even though it is really not your “first” home.

–For married joint filers, both must meet the 1sttime homebuyer test to take the credit on a joint return.

More on Income Limits

Type Income Limit Phase Out Start

Single Filer $ 95,000 $ 75,000

Married Filers $170,000 $150,000

This means that for singles making over $75,000 and couples making over $150,000, the credit is proportionately reduced as incomes approach $95,000 and $170,000 respectively.

So if a couple makes $165,000, the excess amount is used to create a fraction 15,000/20,000 (.75) times the credit amount. 75% or $6,000 of the credit would be disallowed. They would still get a $2,000 credit.

The Home

•Must be the “main home” i.e. principal residence. Which is generally considered to be the home where you spend 50% or more of your time. It can be a condo, Single Family detached, co-op, townhouse or something similar.

•The home must be located in the United States.

•Vacation homes and rental properties are not eligible.

•For new construction, the “purchase date” is the date you occupy the home. So the move in date must be before December 1, 2009.

Recapture-3 Year Residency

•If the home is sold prior to three years of ownership, the tax credit must be repaid.

–This is an improvement from the prior credit. That credit needed to be repaid in total over 15 years or the balance had to be repaid on sale.

•This provision is designed to prevent flipping homes in order to get the credit.

Other Provisions

•The new credit is available to residents of the District of Columbia

•Purchasers who utilize state/local revenue bond financing can now use the credit.

•Purchasers who bought before January 1, 2009 are still subject to the terms of the repayable credit.

When Can You Claim the Credit?

•It can be claimed on your 2008 Tax Return (to be filed by April 15, 2009), an amended 2008 Tax Return, or your 2009 Tax Return.

•NAR and industry partners tried to get the credit made available at closing but policymakers balked. In addition, it was explained that even if a system could be devised, it would delay closings by several weeks.

Conclusion

•The new credit is greatly improved compared to the old credit.

•It is a true credit and does not need to be repaid as long as you occupy the home for 3 years.

•NAR estimates that hundreds of thousands of potential buyers will take advantage of the credit.

•For more info on the credit and the 2009 Stimulus legislation visit http://www.realtor.org/government_affairs/gapublic/american_recovery_reinvestment_act_home?lid=ronav0019or consult your tax adviser.

CAVEAT

This is information is accurate based on information available as of February 19, 2009. As with any tax law change, check with a tax advisor if there are any questions regarding using this provision.

Download Recovery and Reinvestment QA

Download Government_affairs_homeb_tax_credit

First Time Homebuyer Tax Credit - $8000

2009-02-20T13:33:32-05:00

FIRST-TIME HOMEBUYER TAX CREDIT

As Modified in the American Recovery and Reinvestment Act

Major Modifications Shaded

February 2009

FEATURE	CREDIT AS CREATED JULY 2008 APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008	REVISED CREDIT – EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009
Amount of Credit	Lesser of 10 percent of cost of home or $7500	Maximum credit amount increased to $8000
Eligible Property	Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.	No change All principal residences eligible.
Refundable	Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.	No change Purchasers will continue to receive refund for unused amount when tax return is filed.
Income Limit	Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000).	No change Same income limits continue to apply.
First-time Homebuyer Only	Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.	No change Still available for first-time purchasers only. Three-year rule continues to apply.
Revenue Bond Financing	No credit allowed if home financed with state/local bond funding.	Purchasers who utilize revenue bond financing can use credit.
Repayment	Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing.	No repayment for purchases on or after January 1, 2009 and before December 1, 2009
Recapture	If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale.	If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
Termination	July 1, 2009 (But note program changes for 2009)	December 1, 2009
Effective Date	Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year.	All revisions are effective as of January 1, 2009

For more information contact Jason Infanti at 302-999-6940 and Jason@JohnLuca.com

Or John Luca at 302-999-6966 and John@TriStateTeam.com

What is Title Insurance and Why do you need Owner's Coverage?

2009-02-03T15:21:59-05:00

Title insurance is protection against loss arising from problems connected with the title of your property. Some common title problems are unsatisfied liens, forgeries, fraudulent conveyances, incapacitation and trust and estate open interests.

Many people ask why they need title insurance if a search has been preformed on the property. Title insurance is issued after a careful examination of copies of the public records. But even the most thorough search cannot absolutely assure that no title hazards are present, despite the experience of attorneys and title examiners. Moreover, searches cannot reveal issues such as forgeries and fraud.

If you plan to mortgage a property, your lender will require that you purchase them a lenders policy of title insurance. However, a lenders policy alone will not protect you. Title insurance policies protect against loss, and a lender policy would only cover the lender's loss. You must purchase an owners policy to cover owner losses. Owner losses can be quite substantial; therefore no homeowner should be without title insurance.

This is not intended to be legal advice and does not constitute an attorney client relationship.

January Brought Good News on the Home Front

2009-02-03T12:24:52-05:00

I would like to announce a little good news occurring in the New Castle County Real Estate Market for January 2009. We have had a $15,000 increase in the median home price average compared to December 2008 and a $9000 increase in the average sold price compared to December 2008. Comparing these levels with averages from one year ago, I am also encouraged by the fact that the decline in the median home price average is only 2.2% and the average sold price is only 4.2%. As a whole our county along with the Philadelphia Metro region, is fairing much better than most of areas across the country. Additionally our 9.7 Months Supply of Inventory (MSI) is at its lowest level since September 2008 when it was 9.2, which again compares favorably with national levels.

Before we get too excited, there has been a fairly significant reduction in the number of homes selling. Home Sales for January 2009 are off 33% at 207 sales compared to 309 sales for Jan 2008. Heading into to Spring, I would say as long interest rates remain low we will have decent activity and sales in the market. The key for sellers is to be aggressively competitive to stand out. Buyers are still looking for deals and will find them because they are out there.

For more details download the charts below, or contact me at 302-740-5872

Regards,John Luca

Download Jan 2009 Median-Sold Avg

Download Jan 2009 Mo. Supp Inv

Download Jan 2009 Sales NCCo

DSHA - New Bond and Grant Money

2009-01-29T10:59:36-05:00

DSHA just issued new Bond and Grant money this morning

Grant money

Old rate: 6.75%

New rate: 6.50%

Bond money

Old rate: 6.25%

New Rate 6.00%

These rates are for new reservations only. Please call me if you have any questions 302-999-6940 or John at 302-999-6966.

-Jason

Save time and money on your rental properties

2009-01-28T18:37:13-05:00

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Out & About: Orchid Extravaganza at Longwood Gardens

2009-01-25T17:50:21-05:00

Yes, it's cold outside, but spring abounds at Longwood Gardens.

The Orchid Extravaganza began this weekend, and it's extraordinary. It tantalizes the senses with sights, smells and sounds (yes, the sounds of various waterfalls and gardens). And it lifts the spirits as we await the coming of spring.

The Longwood Gardens Orchid Extravaganza runs from January 24 to March 31, 2009. To learn more click here.

Below are just a few photos our daughter took to bring Longwood to you :)

Enjoy! Mary & John Luca

NEW - Access SOLD Data on our site

2009-01-23T19:51:06-05:00

Did you ever wonder what the house down the street sold for?
Did you ever wish you could set up up a search so that you can be updated when homes sell in a certain area, or a certain size?

We've worked extremely hard to get you that data, and are pleased to announce it is available NOW on our site at www.TriStateTeam.com

Why?

We want to offer our clients the tools you need to make you home search easier.
We are always striving to provide you with exceptional Value - whether it be in our technology or negotiating the best deal for you with our full time market expertise.
We believe the more Value we provide you, the happier you will be as our clients (and we like happy clients!)

We hope you enjoy using this new Active & Sold Listing Search Tool, and will call on us when you are ready to Buy or Sell real estate, and remember to refer your friends to us. (302-740-5872)

Click here to give it a test drive:

Have a great evening,

Mary & John Luca

Waterfront Anyone?

2009-01-19T21:39:27-05:00

I thought you'd enjoy this shot of my brother, Mike, on Red Mill Pond from this weekend. As my brother says, only three months until we can put the boat in :) .

While we're waiting for the thaw, let's take a look at market price activity for single family homes in Sussex County over the past five years.

I looked up some stats in the Sussex MLS, and although the market is down you’ll see it’s not drastic - we are much better off than other sectors of the nation (John could go into more specific detail, as he’s the real market man - feel free to call him on 302-740-5872).

Here’s just a few Sussex numbers:

5 year Residential Single Family Median and Average Sold Price History:

Year	Average Sold Price	Median Sold Price
2004	$343,188	$240,000
2005	$413,605	$285,000
2006	$404,951	$284,250
2007	$404,414	$286,950
2008	$378,989	$265,000

By simple calculation you can see that we are only about 7% off the high Median Sold Price for Single Family Homes in Sussex (dropping from $285k to $265k). Yet we are still in gain territory versus prices in 2004. I know those are high level numbers, but I start in generalities until someone wants a detailed drill down of a specific area. In addition, it sometimes helps to step back and look at the bigger picture.

Have a nice evening – and let’s think spring so we can enjoy more outdoor activities soon (and get that boat in!)

Mary

Pickup in Buyer Activity

2009-01-12T17:31:06-05:00

After witnessing (by radio) the uplifting the Eagles’ win yesterday, I thought you might enjoy some positive news on market activity.

Market activity can be measured in many ways (as you’ve seen from the statistics on this blog), however there are a couple anecdotal signs of positive market activity that I tend to take notice of when they occur. First, when a home goes under contract within the first 7-10 days that it’s on the market, and second, when I see another realtor showing the same house at the same time that I’m showing it to a client. Well I witnessed them both firsthand yesterday.

First, imagine my surprise when I pull up to the home where I’m about to meet my clients for a showing, and the “For Sale” sign in the yard has another little sign rider, attached to the top of it which says “Sale Pending” (when setting up the home for the tour less than 24 hours prior, it was not pending and had only been on the market 9 days). This home was priced in the mid- $400’s and was located in PA (Delaware County). This represents a perfect example of when a home is priced properly from the start, it can sell quickly, even in a “slow” market.

My second wonder of the day occurred at the third home of yesterday’s tour. On a day when a high percentage of the Delaware Valley population was watching the Philadelphia Eagles win their big playoff game with the Giants, there happened to be another realtor showing the same house I was about to show. This used to be quite common just a few years ago, when the market was going strong, but rarely does it happen these days.

Does this mean that the real estate market has turned around overnight? No, but this is truly a great time to be in the market either buying or selling.

With the interest rates once again at historic lows, and home prices at affordable levels, buyers can take advantage of a great opportunity. Sellers also stand ready to benefit.

The sellers who have chosen to price their home in the market can also take advantage of this opportunistic time when winter inventories are a little lower and the current buyers are ready, willing and able.

If you have any questions on buying or selling in this market, don't hesitate to call me at 302-740-5872.

Regards,

John

Comparing 1990 with 2008

2009-01-06T22:15:42-05:00

In a conversation with a broker the other night, it came to mind that the market today, actually has shorter Days on Market (DOM) than back in 1990-1991 when interests rates were significantly higher than they are today.

To prove whether memory served correctly, I've dug up old MLS books from New Castle County for the 1990-1991 era for DOM statistics to compare to today. You'll notice that with the change in technology and measurement capabilities, I have data for 6 month time periods for '90-'91 versus monthly data for 2008, however, the point is proven.

I've also included data from our mortgage consultant (Jason) showing the significant difference in interest rates between the two time periods.

The point is - the market is slower, and it slowed down faster this time, however, in some ways it's still not as bad as it has been in the past, and we recovered then.

Just food for positive thought.

Have a great day,

Mary

Download DOM Chart

Download Mortgage Chart

Out and About: BellaVista Trattoria & Pizzeria

2009-01-06T22:12:27-05:00

We just had to take a moment to congratulate BellaVista Trattoria on their 1st Anniversary!

A year ago, a savory new Italian Restaurant opened in the Shops at Limestone Hills. It was love at first bite when we tasted their salads - unlike any we'd experienced before. Soon we found that my (Mary's) siblings were going there, as well as my mother. It seems the whole of Hockessin, Pike Creek and nearby Newark were on to this gem. When my sister-in-law Peggy and I found out that the restaurant was closed on Sundays, we thought we'd have to stockpile on Saturday nights so that we could get our "fix" of BellaVista's treats on Sundays (not to worry - they are open Sundays now).

John took an instant liking to one of the owners - Nunzio - who is an honestly friendly Italian, not unlike John. They became like family.

The restaurant has grown in the past year, and only improved with age. In the fair weather they have an outdoor dining area which is delightful. In the winter, the indoor seating is perfect for cozy dates or family gatherings at table. The take-out service is excellent, and in the past year they received their liquor license and now I can enjoy a fine glass of wine with my meal.

The food....well, there's too much to cover here, and frankly I don't have words for it all. I'll tell you our two favorite salads, and you'll just have to visit BellaVista to test everything else:

The first salad we fell in love with was Capricciosa which is mix greens, fresh buffalo mozzarella, bruschetta & olives with Balsamic Dressing. The flavor is perfectly balanced as is the crunchiness of the brushcetta against the softness of the buffalo mozzarella. And after eating that salad I would find that I just didn't want to eat anything else - it was THAT satisfying.
The second salad, which is my favorite the past two weeks and running, is the Pollo BellaVista. My taste buds come alive just typing about it - a culinary masterpiece of marinated chicken breast grilled, served over mix greens with penne pasta, olive oil, parmigiano cheese, bruschetta tomatoes & toasted walnuts. You simply must try this salad!

On a final food note, the desserts are the perfect complement to any meal. The cannoli we had last night was (as John put it) "as good as it gets" - and that's saying a lot coming from an Italian who has sampled many a cannoli in his day.

The BellaVista restaurant also has a heart. Visit their web site to find out about their involvement with the Basket Brigade of Delaware and their Bella Bucks Program (a dining-in program is designed to help non-profits, schools and churches reach their fundraising goals). They also have a frequent diner card which benefits you directly as you make BellaVista part of your family.

Here's a link to BellaVista's web site where you can learn more about how they partner with local purveyors to get the freshest ingredients, download their menu, and sign up for their newsletter.

And when you visit - please tell Nunzio that John and Mary sent you - he'll treat you like family!

Mary

PS - Disclaimer - I'm not Italian, I'm Irish - so anyone can love this food :)

Greenville, Middletown, Newark and Wilmington Updates

2009-01-03T16:54:30-05:00

Here's a Market Snapshot for the Greenville, Hockessin, Centerville area:

Comparing the Median Sales Price of Dec 2008 vs.Dec 2007 we see a 7.6% decrease - $425,000 down from $460,000. Average Days on Market increased from 83 DOM in Dec 2007 to 102 DOM in Dec 2008.
Keep in mind this is a one month comparison, to view the 12 month chart with a polynomial trend line click on the "Download" links below.

For the Middletown, Townsend, Odessa, Clayton, Smyrna area:

Comparing the Median Sales Price of Dec 2008 vs.Dec 2007 we see a "Rare"10.3% increase - $320,000 up from $289,999. Average Days on Market increased from 98 DOM in Dec 2007 to 122 DOM in Dec 2008. Keep in mind this is a one month comparison, to view the 12 month chart with a polynomial trend line click on the "Download" links below.

For the Newark, Bear, Glasgow area:

Comparing the Median Sales Price of Dec 2008 vs.Dec 2007 we see a 5.9% decrease - $215,000 down from $228,500,000. Average Days on Market increased from 62 DOM in Dec 2007 to 70 DOM in Dec 2008. Keep in mind this is a one month comparison, to view the 12 month chart with a polynomial trend line click on the "Download" links below.

For the Wilmington, Trolley Square, Talleyville, Claymont area:

Comparing the Median Sales Price of Dec 2008 vs.Dec 2007 we see a 13.7% decrease - $195,000 down from $226,000. Average Days on Market increased from 87 DOM in Dec 2007 to 98 DOM in Dec 2008. Keep in mind this is a one month comparison, to view the 12 month chart with a polynomial trend line click on the "Download" links below.

As always for questions on your particular real estate situation contact me directly at 302-740-5872 or John@JohnLuca.com .

John

Click on Links below to see Charts and Tables:

Download RT Wilmington + Brandywine John Luca Dec 2008

Download RT Hock-Greenville John Luca Dec 2008

Download RT Pike Creek Elsmere John Luca Dec 2008

Download RT Newark-Bear John Luca Dec 2008

December 2008 Market Analytics + 2 year summary

2009-01-01T16:52:10-05:00

It's no surprise that market activity has slowed down in the last couple years, however, being a statistical person, I enjoy studying charts (I was a technical trader on the "street" for JP Morgan trading federal funds, eurodollars, derivatives, treasuries, etc. using chart analytics, and I consider it fun). Meanwhile, John not only studies the statistics, he lives in the market daily with the clients and has a feel for the market that goes beyond stats.

Being the techy, I wanted to get the charts out right away now that 2008 has wrapped up, in case any of you like to study the numbers in the market. While I've created all the analytics below for both December and the past two years for your own review, I think it's always helpful to know a couple high level statistics to see the overall flow.

As you can see from the 2 years charts for New Castle County:

Monthly Supply of Inventory has risen from Dec. 2006 at 6.1 months to Dec. 2008 at 11.9 months, meaning at the current sales rate, it would take almost twice as long to sell all the homes currently on the market as it would have taken two years ago.
This is supported by the fact that while Properties for Sale only increased 10.8% between Dec. 2006 and Dec. 2008, the purchase of those home slowed as Sold Homes dropped by 54.1% at year end 2006 vs. 2008.
Another important statistic is that Sold Homes Average Days on Market (DOM) increased from 45 days to 88 days from Dec. 2006 to Dec. 2008- almost doubling.

From all this we take, what we mostly knew - there are not significantly more homes for sale on the market, just longer days on market due to less buyer contracts. A bright spot I see here is, it could be worse - there could more significantly more homes on the market in addition to less demand. So when buyer confidence returns, the MSI should be able to drop back down faster than in an environment where the homes for sale increased significantly.

Now for fun I'd love to study these trends using technical analytics like Bollinger Bands or Fibonacci retracements, however, I don't have that software right now to apply to these statistics and need to get back to work on more meaningful systems for our clients such as updating our MLS Home Search Software (look for Sold Home data to appear there soon!).

John is at work on another computer right now, but hopefully will get to post some market "color" for you from his experience in the market in December (the market is still moving - we were able to help 5 buyers and 1 seller settle in December alone). Until then, feel free to give him a call if you'd like to get that color over the phone or have specific questions answered (302-740-5872; 302-999-6966)

Happy New Year - Mary Luca

Download NCC Supply and Demand Analysis John Luca Dec 2008

Download NCC Home Price Analysis John Luca Dec 2008

Download NCC Month Supply Inventory Analysis John Luca Dec 2008

Download NCC Month Supply Inventory Analysis John Luca 2007- 2008

Download NCC Home Price Analysis John Luca 2007- 2008

Download NCC Supply and Demand Analysis John Luca 2007- 2008

Know the Market - on Both Sides of the Line and Interest Rate Impact

2008-12-31T15:00:55-05:00

If you're a local, you know that you can cross the line into PA or MD within just 5-10 minutes from the Newark, Hockessin or Pike Creek area - it's all so close. What you may not know is that some builders actively built neighborhoods in more than 1 state. For example, the Hillstream neighborhood spans both Newark, DE and Landenberg PA. In addition, Thistleberry Farms in Newark, DE has the exact same floor plans.

What does this mean to the real estate consumer? When looking for a home, make sure you and your real estate agent look at the value across state lines - even if you prefer one state. Looking at the comparables of these homes can help you understand whether or not the home you are considering bidding on is a good value or not.

For example, a buyer client of mine recently bid on a home in PA and the buyer and seller could not come to an agreement on price, so no deal was struck. As interest rates came down, the PA home became more affordable in monthly payment terms, however by then the buyer and I were looking both in PA and DE at other homes. We found a home in DE with the exact same floor plan, with many more upgrades, for a slightly higher asking price. However, with the lower DE property taxes, the all-in cost to my buyer was less that the original home in PA. Our buyer chose the DE home, and happily settled two days ago (see video).

What insights can we share from this scenario?

Whether selling or buying, when negotiating on your home, you benefit by working with a full-time agent who is active and experienced in the local market (which in our area includes real estate across the line by being active and licensed in DE, PA & MD).
In a volatile interest rate market, realize that market moves on any given day can affect consumers' purchasing power. As a buyer or a seller, work with a team that has a top-notch mortgage consultant so that you know how the interest rate markets are affecting purchasing power daily. It can make the difference between a contract or a "no sale".

Does this mean DE is a better value than PA or MD?

Absolutely Not! There are many factors that come into play when purchasing a home - commute, school choices, asking price, taxes - both real estate and income depending on where you work, deed restrictions, laws (such as homeschooling), and plain old preference. The key is to know your requirements and your preferences if you are a buyer, then use a team of experts in the area to help you find your next home and negotiate the best financial deal. And if you are a seller, work with a team that can market your home's benefits and value - there is a buyer for your home if it's priced in the market, staged to show well, and marketed properly.

John (302-740-5872)

Seller's Market? Yes, one does exist!

2008-12-11T10:25:00-05:00

Currently in the areas of Elsmere, Newport and Pike Creek (referred to as NCC Zone 3), in a perfect first-time buyer price range of $0-$160,000 we have a bona-fide seller's market.

What is "seller's market"? The National Association of Realtors defines a seller's market as any area that has 6 months of inventory or less. The current inventory level of Zone 3 for $0-$160k is 47 units with an average of 11 sales per month, which equates to just 4.3 months of inventory.

New Castle County as a whole has an 8.6 months supply of inventory. Looking at the remainder of NCC from $0-$160k it's even longer - a 10.7 month supply. Both of these numbers point to a buyer's market in NCC on the whole, as opposed to a seller's market in Zone 3 in this price range.

Are you looking to buy or sell? Let me help you find value in today's market.

John Luca (302) 740-5872 John@TriStateTeam.com

(in which we happen to have a hot new listing)