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Up to $500 for Doing Home “Work”

The energy-efficient home upgrades tax credit is scheduled to expire on December 31st this year.  If you need to make improvements to your home, this could be an incentive to do it before the end of the year.  If you have already made qualifying improvements without realizing the tax credit is available, it may seem like a holiday gift you weren’t expecting.

The equipment must be installed to qualify for the credit which can put you under a time crunch.  Heating and cooling systems, insulation, windows, doors, skylights, water heaters and home weatherization may qualify.

The Residential Energy Efficiency Tax Credit has been available for purchases since January 1, 2011.  The tax credit is 10% of up to $5,000 of qualifying improvements which would make a maximum of $500 tax credit.

The cumulative maximum amount of tax credit that can be claimed by a taxpayer in the different years this law has been in effect is $500.  If it has been claimed in previous years, the taxpayer is not eligible for this credit for additional new purchases.

For more information, see energy.gov or talk to your tax professional.

When Rates Go Up

Rising interest rates are great if you are renewing a certificate of deposit but not so much when you’re borrowing money. With interest rates on the rise as well as home prices, housing affordability is a concern for would-be homeowners.

A rough rule of thumb is that a person’s or family’s housing should not exceed 28% of their monthly gross income. While rental rates and home prices have been consistently increasing, mortgage rates have been soaring in the past month. In one week, according to the Freddie Mac Primary Mortgage Market Survey, they jumped by .5%.

This means that people have to pay a larger percentage of their income for housing unless their incomes have been increasing at an equal pace.  A $200,000 mortgage would be over $100 more per month if closed in July compared to closing at the interest rates available in January of 2013.

If rates increase by .5% by the time you close on the same size mortgage, payments would increase by almost $60 per month. In order to keep the payments the same, a borrower would have to put an additional $11,000 down to lower the mortgage amount.

Check out how your payment would be affected if interest rates continue to rise.

The National Association of REALTORS® suggests that housing is more affordable now than one year ago. However, with all of the variables in play including inflation that was not addressed in this piece, it is unclear how long conditions will remain “affordable”.

Greater Charlottesville Real Estate Market Second Quarter 2012

Lets look at some highlights of the Charlottesville Association of Realtors mid year market report:

Sales in the greater Charlottesville real estate market were up 8.6% for the second quarter of 2012 as compared with Q2 2011.

The city of Charlottesville experienced the greatest second quarter sales increase, with sales up 29.7% over last year.

Albemarle County has experienced a Q2 median sales price increase of 5% over Q2 2011 and the city of Charlottesville experienced an increase of 3.3%.

Fluvanna, Louisa and Nelson all experienced year over year declines in the median sale price for the second quarter.

Only 9.4% of the total sales in Q2 2012 were foreclosures as compared with 13.3% in Q2 of 2011.

 

For a more detailed analysis read the complete CAAR Mid-Year Market Report

 

Charlottesville Real Estate Update – Its Time To Change Our Perception

For the last few years we have had a lot of inventory and homes have been taking a long time to sell.  Buyers have had the mindset that homes stay on the market for a long time.  They are used to thinking that there is no need to make a decision, because that home is not going anywhere.  There has been the feeling that if they wait long enough the price will be reduced again or a better home at a better price may come on the market.  There has been no sense of urgency to buy.

Well, its time for a new way of thinking.  The “times they are a changing”.  Starting in January the Charlottesville real estate market has seen a major increase in activity.  We have seen a big increase both in people out looking at homes and in contracts being written.  The last five contracts that I have written have all either had multiple offers, or another offer that came in within hours of the first being accepted.  This is especially true for Albemarle County.  No longer can a purchaser drag their feet and expect that well priced home in good condition to stick around. 

Its a great time to look at Charlottesville homes for sale, there is still a lot of inventory to choose from, prices are down and interest rates are still low.  But more homes are selling and there is competition for the best ones.  When you find the one you like, it is important to move quickly or you may lose it.

Copyright 2011 by Pam Dent all rights reserved “Charlottesville Real Estate Update – Its Time To Change Our Perception“.

1939 Browns Gap TPKE Charlottesville VA – Investor Opportunity – SOLD

1939 Browns Gap Turnpike, Charlottesville VA home for sale.  $120,000.00

1 bedroom, 1 bath, 1080 sq ft, living room, kitchen, greatroom, den, home office, screened porch.

This home on a landscaped lot is located in Albemarle County close to Crozet and Charlottesville.  At this affrodable price the darling bungalow is perfect for investors or first time homeowners.

Cpoyright all rights reserved by Pam Dent “1939 Browns Gap TPKE Charlottesville VA – Investor Opportunity“.