With headlines like ‘Home sales fall and prices drop in housing market’ it is easy to believe that this is true throughout the Continental USA.  It is easy to forget that ‘housing markets’ are local.  The National Association of Realtors state that sales fell nationally by 9.6% in February from January of this year. 

Here on the Mississippi Gulf Coast the market is looking considerably better than the National picture regarding sales with, in fact, a marginal increase in February from January this year. 

House prices, however, are following the National Trend and have dropped from the average sales price of $132,808 for the same period last year to $113,929 this year.  I feel that this is in part due to the number of foreclosure properties that have sold since 1 Jan 2011, which makes up 27% of total sales this year, but on the flip side has also improved the number of units sold.

In 2006, prices became artificially inflated following the aftermath of Hurricane Katrina.  Inventory was in short supply and demand was incredibly high.  Even without the economic downturn, prices would have adjusted back to within normal ranges as more inventory became available. 

All of our economic indicators are good here on the Gulf Coast.  Unemployment rates are lower than the rest of the State, new businesses are coming to the area, retail sales are trending higher all positive signs of recovery. 

MS GULF COAST MILITARY MEMBERS AND FEDERAL EMPLOYEES

Members of the military and other federal employees currently stationed on, or have orders bringing them to the Mississippi Gulf Coast, at Keesler AFB, Columbus AFB, NCBC Gulfport, NS Pascagoula, or NASA Stennis could still be eligible for the $8,000 First Time Homebuyer Tax Credit or $6500 credit for sellers and repeat homebuyers . 

On the battlefield and at home, military families make profound sacrifices to keep our nation safe.  In recognition of your service the IRS has extended the deadline for the tax credit to those who have served on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after December 31, 2008, and ending before May 1, 2010.

Those who do qualify need to act soon, in order to qualify you must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011.  If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase

To Claim First Time Homebuyer’s Tax Credit

In order to claim the tax credit, a copy of the properly executed HUD1 settlement statement (which you will receive at closing) is required to be attached to the income tax return and Form 5405 First Time Homebuyer Credit and Repayment of the Credit needs to be completed.

For more information about the extension of the Homebuyer Tax Credit, visit the IRS Website where you can also download the appropriate tax form