First Time Tax Credit Not Just For First Time Buyers

* Extends the $8,000 first time Homebuyers Tax Credit and creates
> a new $6,500 tax credit for qualifying "move-up buyers" purchasing a
> home before April 30, 2010.
> * Qualifying "move-up" buyers include homebuyers who already own a
> home that they have used as a principal residence for 5 years or more.
>
> * Homebuyers with binding contracts as of April 30th will also
> qualify for the credit so long as they complete the transaction within
> 60 days.
> * Available to homebuyers with incomes of up to $125,000 for a
> single return or $225,000 for a joint return.
> * Available for homes which cost less than $800,000.
> * Provides authority to the IRS to do greater oversight while
> processing the return and requires that the taxpayer claiming the
> credit be 18 or older.
> * Members of the military, military intelligence, and foreign
> service who are on qualified extended official duty are not subject to
> the recapture fee and individuals who have been deployed overseas for
> 90 days or more in 2008 or 2009 can claim the credit through April 30,
> 2011

The State of the New Canaan Real Estate Market as of October 31, 2009

As dismal as the year started with very little activity in January and February, the New Canaan market slowly but steadily picked up momentum and has ended its tenth month with marked improvement.

During the last three months of this year, we have actually exceeded last year’s activity during the same three month period by 15% with the number of closings increasing from 46 in 2008 to 53 in 2009.

Year to date, while the average price of sold homes this year is $1,723,241, representing a decline of 20% from last years average price of $2,144,299, the average price of sold homes at the end of September 2009 as compared to the same period in 2008, where the average price was down 21%, it does slow some improvement.*

Regarding the number of closed transactions of residential homes in New Canaan, this year’s numbers are also down 20% as 126 homes sold as compared to the same period in 2008 where 156 homes sold.

There are currently 249 homes on the market now with the average time on the market of 201 days. The average list to sell ratio is 89.25%.

Of the 25homes with pending contracts, 5 are under 1 million, while 10 are pending in the 1 million to 1.5 million category, representing the bulk of the pending transactions.
There are 8 pending contracts in the 2-3million price range and only two pending contracts from 3.5 million to 4.25 million.

Of the contributing factors of sales starting to increase may be that brokers are advising sellers that they have to price their homes more appropriately to attract people who have been waiting in the wings to buy. Even though it is still a buyers market and taking into account an upward trend in sales volume, prices are attractively low and interest rates are also extremely low. Looking at the higher end of the housing market, some owners who had held to their pricing are ready to listen to offers now.

While traditionally the months of November and December in New Canaan are much slower in activity, the spring market is just around the corner. I believe there is much pent up buyer demand for housing as many would be buyers have opted to rent over the last year or two, but they can be expected to purchase in the next year or two. Some of the values of homes being offered in New Canaan are really outstanding, as some sellers are more motivated to sell than others. Buying in November or December may a very smart move as some sellers are really ready to move and don’t want to wait until spring. Understanding the values in the marketplace right now is key to buying intelligently which will pay off as a long term investment.

*Data supplied by Promatch MLS

Bank Owned Home at 184 Lukes Wood Rd in New Canaan just reduced again today by another $250,000.

This is too good to be true. Another price reduction today bring the new price to $2,350,000. This bank is determined to sell this property. I believe it is going to be New Canaan's best deal and everyone will be talking about the one that got away.

Tax Credit to First Time Homebuyers to be Extended???

Most of the information coming from Washington DC indicates that the First Time Home Buyer Credit will be extended, as noted from lobbyists in DC.

Tax Credit Extension & Expansion

There will be an important vote in the Senate this week on the housing tax credit provision. The “Dodd-Lieberman-Isakson” amendment would extend the tax credit to June 30, 2010. It would expand the credit to any homebuyer and raise the income limits to $150,000 ($300,000 for joint returns). The amount of the tax credit would remain at $8,000.

Prospects: I still believe the prospects are good for extension of the tax credit. There is real concern in the Administration about the strength of the economic recovery. Treasury Secretary Geithner was quoted in the November 2nd Business Week magazine stating: “we’re not going to make the mistake many countries made in the past of putting the brakes on too early and creating the risk of a weaker recovery with even higher levels of unemployment.” On the negative side, the stories about fraud in tax credit program (e.g. children and current homeowners receiving the tax credit) and concerns about the program cost obviously do not help.

NAR is making a major push for the expansion of the tax credit to all homebuyers. While it appears unlikely that it will be expanded beyond first-time homebuyers, NAR efforts could have a positive impact on the outcome.

BRAND NEW OFFERING. OENOKE RIDGE NEW CANAAN COMPOUND ON 4+ ACRES JUST LISTED AT $1,595,000

Remarkable but true, this incredible private oasis is just listed at $1,595,000. Set on 4.65 acres of privacy and tranquility behind a gated entrance, this fabulous 5 bedroom Center Hall Colonial has been restored and upgraded to the minute. New kitchen, baths, roof, furnace,a/c, windows, siding etc. There is nothing left to do but enjoy the beautiful free form swimming pool and spa. This property is priced to sell and wont last long.

New Canaan Opportunity. Major Price Reduction

74 Thayer Drive has just been reduced to $849,000. This spacious country home with an open floor plan is set on 2 acres in an area of luxury homes and has tremendous potential for the saavy buyer. It has expansive hilltop views and a full finished lower level. There is a town approved code compliant 6 bedroom septic system designed for future expansion or renovation.

GRAND OPENING. NEW CANAAN'S NEWEST GREEN HOUSE. LEADING THE WAY IN NEW CONSTRUCTION

274 Mariomi Road, New Canaan, Ct
GRAND OPENING THIS SUNDAY, OCTOBER 25,2009
2-4PM

Amy Gabriele and I have just listed this incredible new home.
Just finished and ready for showing, this home is ahead of its time.
With over 8,000 sq ft of living space and 6 bedrooms and 8 1/2 baths, it is heated and cooled geothermally.
Numerous energy efficient features include Hardiplank siding, Azek trim, Pella energy star windows, 100 yr slate style architectural roof.
The kitchen and all bathrooms are designed by Kitchens by Deane and the house sits magestically on 2.8 acres of high land with hilltop views.
Priced at $3,795,000.
Amy and the builders, 2G Construction, will be on hand to answer any questions.
Click on the title to view the website www.274mariominewcanaan.com

Retirees and Empty Nesters Flock to Manhattan

MARK YOUR CALENDARS. THIS REALLY IS VERY HELPFUL. HAZARDUS WASTE DAY IN NEW CANAAN IS OCTOBER 17

Great time to clean out the basement and garage. Bring your old and unwanted paints, chemicals and toxic material to the Wastewater Treatment Plant between 8:30am and 2pm on Saturday October 17.

New Canaan Real Estate Market Activity Third Quarter Summary

NEW LISTING. NEW CANAAN'S CUTTING EDGE "GREEN HOUSE" NOW FINISHED AND LISTED FOR $3,795,000. GRAND OPENING TO BE SCHEDULED SOON.

The real estate market has picked up substantially after the dismal first quarter, however, statistics show that the decline from 2008 numbers are still significantly down.

The average price of sold homes this year as of September 30 was $1,745,705, representing a 20% decline from the average sold price in 2008 of $2,180,838.

The number of sold homes is also down from 149 last year to 114 this year, representing a decline of 24%.

The average days on the market to date this year is 193 with a list to sell average of 88.9%

There are currently 257 homes on the market right now and there are 24 that are pending.

The following homes went pending in the last week

49 Parting Brook $849,000
6 Parish Rd South $1,388,000
161 Skyview Lane $1,395,000
87 South Bald Hill $2,295,000
1484 Oenoke Ridge $2,495,000
226 Buttery Rd $3,595,000
119 Clearview Lane $4,250,000

SHORT SALE OPPORTUNITY IN NEW CANAAN

Listed at $550,000, this Forest Ridge townhouse is offered far less that the last purchase price. Take advantage of this opportunity for this 3 bedroom townhouse with first floor master suite and attached 2 car garage.

ARE DISTRESSED HOMES WORTH IT?

Click on the title to read The Wall St Journals article about distressed homes. It is very well explained.