The American Recovery and Reinvestment Act of 2009 contains a provision to assist/encourage first-time home buyers with a home buyer tax credit of $8,000. Below is a brief synopsis of the program:

Amount of the Credit
Lesser of 10% of the cost of the home or $8,000

Eligible Property
Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence

Refundable
Reduces income tax liability for the year of purchase. Any unused amount of the tax credit is refunded to the purchaser.

Income Restriction
Individuals with an adjusted gross income of less than $75,000 ($150,000 for a joint return) can receive the full tax credit amount. The program phases out completely abouve $95,000 per individual and $170,000 for a joint return.

Who is a first-time buyer?
Any purchaser who has not owned a principal residence in the past three years.

Repayment
This credit contains a recapture clause that will require that the entire credit is repaid if the home is sold within three years after purchase.

Effective Dates
For purchases between January 1, 2009 and September 1, 2009

So, if you are a first time home buyer, hurry!

Chuck Avera
Keller Williams Realty
Office: (843)452-5300
http://www.ChuckAvera.com

Belle Hall Homes and Real Estate for Sale
Brickyard Homes and Real Estate for Sale
I’On Homes and Real Estate For Sale
Mt. Pleasant, SC Homes, Condos and Real Estate

Since my last update on February 2nd, there has been one more home go under contract in I’On:

90 North Shelmore
4BR, 3 1/2 Baths
2,773 Square Feet
Asking Price – $729,000 ($263/square foot)

Competitive Pricing is Key
So far in 2009, there have been 4 homes go under contract in I’On. Interestingly enough, these 4 homes were very competitively priced ($275 per square foot) relative to the average home for sale in the neighborhood. The average asking price per square foot for the 85 homes currently for sale in I’On is $323. This is further evidence that buyers are seeking value in this real estate market. A note on “price per square foot”……While I do believe that price per square foot as a valid data point, I generally qualify it by saying that it is not a “tell all” statistic. The reason for this is that many factors play into this number such as lot characteristics, view, interior quality, upgrades, location, etc. However, buyers and their agents use it regularly because it is one of the few tangible statistics that helps them balance the comps in various neighborhoods.

In an effort to be more competitive, several I’On sellers continue to lower their asking prices. In the last 10 days, there have been 4 more price reductions in I’On. The average reduction was 3.27%. So far in 2009, 26 sellers have reduced the asking price of their home

Showing Activity Increasing
There has been a modest increase in showing activity in the last couple of weeks. Showing activity really dropped off beginning in September and the relentless negative economic news has kept showings rather low until the beginning of this year. This higher level of activity should continue as we move into the traditional spring selling season. As you may know, the period of March through June is typically the busiest season of the year for home buyers and sellers. Even though we are in a slower real estate market, this year should be no different.

As always, please go to www.IonHomeInfo.com to view detail of all the homes currently on the market in I’On and come back to this site for regular updates on I’On market activity. In addition, you can subscribe to my updates via email by clicking here.

Jacob’s Kitchen Opening!
One final note……all of us who live in I’On have been eagerly awaiting the opening of Jacob’s Kitchen and the new inn on the square. On February 17th, the wait is finally over. We all wish Mike the best of luck on this new venture!

Have a great week!

Chuck Avera
Keller Williams Realty
Office: (843)452-5300

http://www.ChuckAvera.com
I’On Homes and Real Estate For Sale
Mt. Pleasant, SC Homes, Condos and Real Estate

Interest rates change constantly, but it is important to know that rates are cyclical. If rates are currently at historical lows then we know there is a strong probablility rates will go up again, and vice versa. Certain economic indicators such as unemployment data, consumer price index, retail sales data, and consumer confidence all have an effect on mortgage interest rates. But the key factor to watch is the relationship between STOCKS and BONDS.

When the economy is slow and the stock market is “bearish,” many investors move money out of stocks and into bonds and mortgage-backed securities. This causes mortgage interest rates to go down. When the economy is doing well, the stock market rallies and is considered “bullish.” Investors then have a tendency to move their money out of that safe haven of bonds and mortgage-backed securities and back into stocks. As a result, mortgage interest rates go up.

The moral of the story? When the Fed cuts their rate, mortgage interest rates do not necessarily go down in concert with the Fed rate.

Thank you to Lorcan Lucey with Lucey Mortgage for this insight into mortgage rates!

Three homes went under contract in I’On last week:

143 Ionsborough – $759,000
4BR, 3 1/2Baths
2,981 square feet

142 Ionsborough – $999,000
5BR, 4 1/2 Baths
3,820 square feet

15 Eastlake Road – $1,250,000
5 BR, 4 Full and 2 Half Baths
3,906 square feet

In my opinion, each of these three homes represented a value compared to other competing properties for sale in I’On. This is clearly what buyers are seeking in this real estate market. Most of the buyers that are willing to make offers right now are looking for value. If they feel a home’s price point is not reflective of today’s market, they will move on to those that are and make offers on them. In fact, many buyers are basing their purchase decisions on where they think the price point will be when the market “bottoms out”, not where it is today. Of course, successfully predicting the bottom of the market is virtually impossible, but many are trying!

In addition to the 3 homes that went under contract last week, there was one new listing that hit the market:

197 North Shelmore Blvd – $1,497,500
4BR, 4 1/2 Baths
3,680 square feet

Finally, in response to the sluggish market, 7 more I’On homes sellers reduced the asking price of their home last week, bringing the total number of reductions this year to 22. As we enter the spring selling season, we may see more of this trend as sellers work hard to be competitive in this market.

For detailed information on all homes for sale in I’On, please go to www.IonHomeInfo.com and stay tuned to this site for more updates in the coming weeks.

Have a great week!

Chuck Avera
Keller Williams Realty
Office: (843)452-5300

http://www.ChuckAvera.com

I’On Homes and Real Estate For Sale
Mt. Pleasant, SC Homes, Condos and Real Estate