Tri-State Real Estate Blog

February 2010 Real Estate Market Analysis, Prices, Days on Market, Months Supply of Inventory

2010-03-03T11:09:32-05:00

The March real estate market will look to rebound from dreadful February numbers. New Castle County suffered its worst month in real estate sales in over 10 years with home sales of only 208 units - down 21% from Feb 2009. (See chart below)

One would have to think the record amount of snow had to have hurt the real estate market. Many people could not even leave their homes much less try and go looking to buy a new one. However, high showing traffic over the past week is a strong indication of the pent-up demand that is starting to break loose. With less than 2 months to go in the first time buyer and repeat buyer tax credits, many buyers will be scrambling to beat the April 30 deadline. We currently have 10 clients in one of those 2 categories. I recently had submitted one offer for a buyer only to find out the property already had 2 other "higher" offers on the table ahead of us. It's going to be an interesting 2 months.

For a detail analysis on your home buying or selling prospects, contact John & Mary Luca at 302-999-6966.

View NCC Median Price Chart

View NCC Median Price Table

View NCC Months Supply of Inventory and Days on Market Chart

View NCC Months Supply of Inventory and Days on Market Table

You set the sale price "dead on"...Consequently, the house was under contract 2 weeks

2010-02-27T17:09:55-05:00

"We wanted to let you know how much we appreciated all that you accomplished for us. You went far beyond all expectations as our realtor. There were so many problem issues that came up with the house that we felt totally overwhelmed. On each issue you calmly had a solution. When we needed the heat pump repaired, you had a HVAC person there the next day. A plumber, an electrician, a carpenter, a mold specialist seemed to magically appear providing excellent workmanship and reasonable quotes. You have an amazing arsenal of professional workmen that you respect and you can rely on to help in all situations and quickly. Your advice and solutions to prepare the house to show at it's best were always accurate and flawless.

You set the sale price "dead on" and gave us the "realistic" expectations for which the house would and could sell for in that neighborhood and in today's economic times. Consequently, the house was under contract 2 weeks after the sign was put out and settlement a few weeks after that. What was even more amazing was that the house was under contract by December 22nd.

With your expert guidance this whole process was smooth and easier than we had ever hoped.

If there is ever an occasion that you would need us as a referral, we would be delighted to highly recommend you as "the best in the business"!

We cannot begin to thank you enough for all that you did. May God bless you in all ways.

With our best regards,

Roy and Donna Lickliter" 2-26-10

Share Cell Phone Homes Search Tool on Facebook - Share the Free Search for Delaware, Pennsylvania, Maryland

2010-02-22T22:08:27-05:00

facebook

Share the free Cell Phone Home Search App via facebook

Just follow the directions here and use the Code "Luca" when promted to add a badge and/or tab to your profile to share with friends.

Smart Phone App to search for homes for sale using GPS in Delaware, Pennsylvania & Maryland

2010-02-22T21:28:41-05:00

Find
Locate listings by GPS, address, city or zip code.

Refine
Select your price range and property type to find just what you're looking for.

View
See price, square footage, estimated mortgage, descriptions, pictures, interactive maps and more.

Connect
Interact with us agent using the "Call to See" feature.

Text: LUCA to: 87778

Text: LUCA to: 87778 to get the application on any phone

Think Spring - Homes for Sale with Tennis Courts, Swimming Pools, on Golf Courses

2010-02-20T13:13:12-05:00

Sure there is snow on the ground - but Think Spring and view these single family homes and estates that have Tennis Courts or Swimming Pools . Or start to think about your game, viewing these Golf Course Homes for Sale!

Enjoy your online tour of homes, and of course if you are interested in touring one of these estates in person, contact John & Mary at 302-740-5872.

John Luca's Hot Pick of the Week - Single Family Property 19805

2010-02-14T11:19:06-05:00

John Luca's "Hot Pick of the Week" -

Priced thousands below market value in Willow Run. This one will not last the week!!! ***Only $90,000 for a single family home anywhere in New Castle County is a rare occurrence, let alone in 19805. Owner occupants only for the first 15 days – then investors can move in. Call John Luca ASAP to schedule a showing 302-740-5872.

As a Buyer's Agent (representing only YOU as the buyer) John is excellent at finding and negotiating deals for his clients. To put John's expertise to work in finding your next investment property or luxury estate - contact him today at 302-740-5872.

Here's a link to ALL homes for Sale in Willow Run - John can set up a tour of all these homes as well as other comparables in the area for you to compare:

http://www.lucateam.com/willow-run-wilmington-delaware-real-estate-homes-for-sale-19805.aspx

Market Update January 2009-January 2010 New Castle County Delaware

2010-02-07T12:01:00-05:00

The current real estate market in New Castle County appears to be headed in the right direction – “for now”. Buoyed by the First Time Buyer tax credit, January 2010 numbers show higher sales volume (+15% units sold), less inventory (2804 units down from 3032 units) less days on market (80 days down from 87 days), and higher average sales price (236K vs. 233K – see graph/chart: Download NCC Price Analysis Jan 09 - Jan 10) compared with sales numbers for January 2009.

Near record low interest rates, plus an additional tax credit of $6500 for existing homeowners who purchase another primary residence (must have owned previous home for at least 5 years) along with home prices which are at the lowest level in over 5 years, make this a perfect time to buy or sell a home.

To discuss your options in the real estate market, contact John Luca at 302-740-5872.

Click on the charts below to see full size charts of Price Analysis for New Castle County, Delaware for the past year.

Larry Flick on NBC 10 Market Analysis

2010-02-06T21:04:04-05:00

Chairman and CEO Larry Flick sat down last week with NBC10’s Tracy Davidson as part of the network’s weekly “Survive and Thrive” segment. Flick shared his insights on the local housing market, how to take advantage of the existing home buyer’s tax credit and shared his predictions for 2010 in the Greater Philadelphia area. The segment also featured Prudential Fox & Roach clients and first time home buyers, Mike and Ryan Brown, who recently purchased a home in Wilmington DE and qualified for the government sponsored first-time home buyer’s tax credit. The full segment can be found here.

Interview highlights include:

Now is the time to buy: as the market improves, home prices and mortgage rates will increase in the year ahead.
Buyers who have strong credit can qualify for an FHA loan and put down as little as 3.5% down or as little 5% for a conventional loan.
The best opportunities will be available early in 2010, when home buyers are still able to take advantage of federal tax credits, selection of inventory and affordable mortgage rates.
The tax credit will continue to drive home sales in 2010, as more first time and ‘move up’ homebuyers enter to market to take advantage of the April 30 tax credit deadline.

For detailed information on the Expanded Home Buyer Tax Credit, click here.

Contact John Luca to answer all your real estate questions: 302-999-6966

Market Update December 2009 - First Time and Expanded Home Buyer Tax Credit, Inventory, DOM, Sales Prices

2009-12-03T15:15:43-05:00

First time home-buyer market continues to roll. Record low interest rates and affordable pricing and the extension of the $8000 First Time Buyer Tax Credit are keeping the market hot in the lower price ranges. It’s a great time to buy and it’s a great time to sell in this price range. In the past 4 months, the inventory levels in the under $275,000 price range have been reduced to 7 months of inventory. The average days on the market is as at a mere 67 days. And the average settled price compared to its original list price is 94%. These are all improved numbers from where the market was 1 year ago for this price range. In the higher price ranges it is definitely a great time to buy. Especially now that congress has added an Expanded Home Buyer Tax Credit which now includes a $6500 credit for anyone buying another principal residence, as long as they have lived in their current residence for 5 out of the past 8 years. We expect these numbers to start improving in the higher price ranges as buyers begin to take advantage of this new incentive. The deadline for both credits is June 30, 2010, but you must be under contract by April 30, 2010.

John Luca (licensed in DE, PA & MD)

302-999-6966

Home Buyer Tax Credit - Extended and Expanded

2009-12-03T14:28:30-05:00

Here are informative links directly to the IRS site. If you have specific questions it is always recommended to consult with your accountant.

First Time Home Buyer Credit Updated November 24, 2009

First Time Home Buyer Credit - Extension and Expansion

Current Form 5045

First Time Home Buyers Questions and Answers - Homes Purchased in 2009

Below is a summary of the tax credits provided by our broker (not the IRS):

Download Taxcreditchanges[1]

Download Taxcreditfaq_updated[1]

NPF IRS Presentation 11102009

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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