First Time home buyer Tax Credit

Over the last several years real estate prices have been in a sharp decline. Part of the reason for this is the high valuations that were seen in 2005, as prices were climbing at some of the fastest rates ever. Now, with housing markets around the country facing large inventories of unsold homes means that there are very reasonably priced homes for the first time home buyer. To help improve demand the federal government is offering a program that will give first time home buyers assistance with purchasing their home, the first time home buyer tax credit. However, like all government programs there are various qualifications that must be met by all first time home buyers to be eligible.

First Time Home Buy Eligibility

To qualify for the first time home buyer tax credit, everyone must be purchasing the property as their primary residence. This is the residence that someone will be living in most of the time. It can include: condominiums, homes, co ops, houseboats and mobile homes. However, there is an exception to this rule, an individual can qualify for the tax credit if they own rental or vacation homes, provided that they can show that they these were not their primary residences over the last three years.

Limited Time

The first time home buyer tax credit will not always remain in place, instead the government is going to be phasing it out over the next two years. Currently, all first time home buyers are eligible for the $8,000.00 tax credit for purchasing a home until April 2010. At this point, the credit will be closed to the general public and will only be available to members of the military, intelligence community along with Foreign Service until April 2011.

Purchase

The maximum value of the property that can be purchased with the first time home buyer tax credit is $800,000.00.

Income

There are income restrictions to qualify for the tax credit. What happens is the credit can be phased out based on annual income; with the maximum limits being placed on those who make more than $125,000.00 per year individually or couples that make $225,000.00.

Clearly, the first time home buyer tax credit has many different benefits. Yet, there are various qualifications that must be met to be eligible for this program. It is through understanding the different qualifications that will help all first time home buyers determine if this is something they should be using to purchase their first home.

Tucson Real Estate 2009 Snapshot

2009 was a turbulent year for Tucson Real Estate, but we’re heading in the right direction. The Tucson residential housing market is showing general signs of improvement across major statistical indicators. Home sales have shown a 54.59% year over year increase from November 2008 to November 2009. Although the average sales price is down year over year from 2008 to 2009 by 12.45%, sales prices tend to follow sales volume. As volume increases, so does the average price. It’s the law of supply and demand. Especially since there aren’t many developers starting new projects these days, all of those condos and homes we heard about being new and vacant will be absorbed. People love the fun and sun of Tucson after all, they will still move here and the population will increase faster than most other regions. The Tucson Real Estate market will benefit from these demographic shifts. The Tucson Commercial Real Estate Market will likely take a little longer to recover. The commercial cycle generally lags behind the residential cycle by about twelve months. Decreased consumer spending in times of economic difficulty lead to retailers having difficulty as sales decline. Decreased retail volume leads to less demand for warehouse, storage and industrial space. These factors lead to decreased revenue for commercial property owners. As consumer spending increases again, the cycle reverses. Income to commercial landlords increases, and property values go up accordingly. Taking a look at the multifamily apartment market, average rental rates for one bedroom apartments were down 3.63%, to $547. The average rental rate for a two bedroom apartment remained flat, fluctuating less than one percent and hovering at about $750. Expect prices to climb in double digits next year and continue growing solidly for years to come as Baby Boomer couples retire and look to move away from their currently frigid locales to sunny Tucson. Two bedroom configurations are in high demand with retirees, as it gives them the flexibility of a second bedroom that is easily convertible to a den or home office. Developers will doubtless seize this opportunity to add some specialized communities, creating jobs and spurring consumer spending and helping to drive new economic growth for Tucson and Tucson Real Estate. All said, 2009 was an encouraging year with some positive signs of recovery and 2010 promises to be an exciting year for Tucson Real Estate!

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Why Choose the Saavedra Group as Your Representation?

I am Peter Saavedra, and I am a born and raised Tucson native. My Tucson roots are deep and my expertise within the Tucson real estate market is unparalleled. I know firsthand what an amazing place Tucson is. To live and work in Tucson is to share daily life in an extraordinary community where family matters.

Whether you’re buying or selling in Tucson, the dedicated associates at The Saavedra Group have your best interests at heart. Just like family, we are always here to help. We look forward to working for you when the time is right!