Tax Credit Extended!
Posted by Harold Penner on Friday, July 16th, 2010 at 4:17pm.Originally Published November 2009 --
The big real estate news this month is the extension of the federal tax credit for first-time home buyers from November 30, 2009 to April 30, 2010. A first time home buyer is defined as a buyer who has not owned a principal residence during the three-year period prior to the purchase.
Now even more interesting for many of my sellers/buyers is a new tax credit that was added for repeat buyers. Buyers who already own a home and have lived in the home for five consecutive years are eligible for up to a $6,500 tax credit on their next home purchase. Whether you are interested in moving up or downsizing from your current home, you qualify as long as the new home will be your future primary residence.
Click to Access More Information on Tax Credits
So, those are some incentives for buying, but the question I am often asked is whether now the right time to buy in Fresno and Clovis, California. Well, I prefer to let the numbers do the talking when it comes to answering that. There are certainly fewer choices of homes available today than a year ago. 5,010 homes were for sale in October 2008 in Fresno and Madera Counties. Today the number of active properties averages around 2,500. So, there are 50% fewer homes for sale today than a year ago. The primary reason for this is the reduction of foreclosures. The number of foreclosures for sale today have decreased by about by an astounding two-thirds since the beginning of the calendar year.
Many buyers may be waiting for those foreclosures to come back and flood the market with bargains thereby driving the overall price down. But, by looking at the statistics from this past year and by referencing the historical trends of the Fresno market, I don’t anticipate any significant price drops. During the height of active foreclosures, the average selling price was $156,256 (January 2009). With 50% fewer homes to choose from the average pricing this year has inched up to $174,867 (October 2009).
Now, it’s possible that if foreclosures returned with a vengeance, Fresno and Madera counties’ prices would decrease. But, in the past year the demand for homes has also increased. First time home buyers have now seen prices that are affordable and within reach. Out of town investors have again returned to buy rental properties. The overall number of sales has been steadily increasing instead of decreasing.
So, in short, I am advising clients that with historically low loan rates, low prices and this newest tax credit extension this is truly an excellent time to buy.
OCTOBER 2009 MARKET STATISTICS* - Fresno and Madera Counties
- Average Price of Sold Homes in August '08 vs. '09 - $190,044 vs. $175,036 (8% Decrease)
- Sold Homes in August '08 vs. '09 -907 vs. 891 (2% Decrease)
- # of Foreclosures and Pre-Foreclosures Sold in August '08 vs. '09 - 595 vs. 577 (3% Decrease)
- Avg. Loan Percentage Rate in September 2009 – 4.83% (30 Year Fixed)
*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.
FEATURED LISTING
2765 Rialto Avenue, Clovis, CA 93611
- $312,000
- 4 Bedrooms
- 2 1/2 Bathrooms
- 2,489 sq. ft.
Three Car Garage! Lovely Clovis home with fenced pool and 4 bedrooms plus a loft! This pristine Seller-owned home features hand scraped maple hardwood floors in downstairs entry, hallway, kitchen, nook & bathroom. The kitchen includes granite countertops, built-in gas range & breakfast bar.
PENNER TEAM NEWS!
Canadian Roots!
October was filled with family visits and fall colors!
Almost 30 years ago, Harold and Margie Penner moved from Canada to Fresno with their young family. Family vacations typically involved traveling back to our hometown of St. Catharines, Ontario (near Niagara Falls) and visiting our huge extended family there. This October, little Aubrey Rose continued the tradition by making her second cross-country trek to Canada to visit her great grandma! While traveling all day on a plane with a 1 ½ year old was definitely a challenge, the time with family made the trip worth it. Plenty of laughter, German food, and memories filled the time!
Christy and Aaron, on the other hand, explored the French-Canadian province of Quebec in October!
There were some entertaining moments of visiting the familiar Canadian restaurants and yet having no clue how to order in French! The beauty, history, culture, architecture and people made it one unforgettable experience, however.
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