Harrisonblog

Our team has been working diligently to provide you, our faithful readers, and our buyer clients with helpful information regarding the first time home buyer tax credit. Remember, it was extended from a few months ago and now expires at the end of April! (Note: Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010.)

To give you an idea of a personal perspective and experience with this tax credit, we decided to interview one couple that used the first time home buyer tax credit in 2009 (thank you Scott and Melody for answering these important questions!):

Did you buy a home because of the tax credit?
SCOTT: We were already looking for a house when we learned about it.  I think it helped seal our decision to go ahead a buy a home.
MELODY: Actually, I didn’t even know of the tax credit until after my husband and I decided to purchase our first home. It was a nice surprise! I took it as a sign that we were validated in our prayerful decision to buy our first home.

MELODY: Our realtor and loan advisor were extremely informative about providing information regarding the tax credit. I found the tax credit to be an amazing blessing because we practically depleted our savings in trying to provide a down payment. The tax credit allows us to have an emergency fund in this unstable, unpredictable economy.

No.

Chris Rooker probably.

SCOTT: I don’t think the tax credit should be used as a way to get people to buy a house.  Even though it is a lot of money, it is not enough to justify purchasing a house.  However, for those already looking for a home, it is a nice incentive.

SCOTT: If you know you want a home now or very soon, go ahead and buy now to take advantage of it.  If you don’t see buying a house in the near future, then pass on the tax credit.

Yes.

Many more of our buyer clients used the tax credit as well. None of them used the money towards a down payment, but they did inform us that it was a breeze to apply the credit to their taxes this year!

If you have any questions about the first time home buyer tax credit, or are considering purchasing a home, contact us! We’re here and happy to help.

March is here already, which means it is time for the monthly market update! In January, we showed you statistics for the beginning of 2010 compared to how the start of 2009 fared, and at that point, things were looking positive. Even though February is a shorter month than the rest, it also showed some positive trends. Take a look below.

The number of homes sold from last February to this February didn’t change a bit, and more homes sold than in January, even though it is a shorter month. We hope (and expect) to see these statistics continue to rise as the spring months progress.

Last month, we obviously didn’t show you year-to-date statistics because we were just one month into the year, so now that February has finished, we can update you on these numbers.

The good news: More homes have sold in 2010 than in 2009 at this point! It doesn’t seem like much of an increase, but as the year progresses, it all adds up. Folks are buying slightly smaller homes this year than last (smaller energy bills?), and the price per square foot has gone down as well. Homes are sitting on the market for less time between list date and sale date than last year at this time! (Good news for sellers.)

The bad news: So far, the average selling price has decreased by over 14% compared to last year at this time. However, at this point we are comparing a fairly small “population sample” (first two months of 2009 vs. first two months of this year).  It will be a few more months until we can know for sure if prices are declining in 2010, but this is definitely something we are going to keep an eye on.

As we break down the number of sales into price categories, we find that yet again, more homes are selling in the $100,000 - $200,000 range. This is no surprise right now, especially considering the average sales price this year is just over $196,000. No sales closed during February in the $400,000 and up price ranges.

Overall, February proved positive for number of sales and negative for home values, but spring is just around the corner, and this time of year usually produces a bundle of new listings and lots of buyers. We look forward to seeing how March fares. Happy Spring!

Downtown Harrisonburg will soon be home to yet another new restaurant! It is called Brooklyn Cafe and Lounge, and is located in the former Franklin’s Cafe at 20 S. Mason Street. They’re having a grand re-opening on March 5th.

Brooklyn Cafe and Lounge will be serving up Middle Eastern, Turkish, Mexican, Italian, and Southern American cuisine. The second floor will be transformed into a hookah bar offering 43 different flavors of tobacco. Oh, and they’ll have wi-fi!

Read a review of this new restaurant on the Downtown Harrisonburg blog.

We’ve gotten into the habit of updating you with showing statistics from our brokerage, Kline May Realty. Well, we are happy to announce that for the 7th straight month, showings are up from last year! Buyers are out and actively searching for homes. This is good for sellers, and for the economy. The more buyers are out looking at homes, the more chances sellers have to get their homes sold.

Perhaps next month we’ll have more good news… stay tuned!

Our team developed a resourceful and comprehensive relocation guide for clients who are thinking about moving to the Harrisonburg area. It has come in very handy for many folks who have moved to the area, and we want to keep relocators informed of what can benefit them by moving to the area. So, we updated our guide.

A small sampling of things we added to the guide are:

• Restaurants - like A Bowl of Good, Local Chop & Grill House, Pennybackers, Cuchi Guidos, etc.
• Area school information - the new East Rockingham High School and River Bend Elementary School, not to mention enrollment numbers for the past three years
• Museums & Attractions - like Cross Keys Vineyards and White Oak Lavender Farm
• Local Media Outlets - blogs we enjoy

There are a wide variety of other new things we’ve added to our guide as well. To view the entire guide, visit our relocation page!

The EPA wrote a new rule that will take effect on April 22, 2010 that requires contractors doing remodeling work on buildings — homes, child care centers, and schools — built prior to 1978 have an EPA certification. The reason? Lead-based paint. It can be very harmful to children and adults when disturbed.

According to The Department of Housing and Urban Development (HUD):

On April 22, 2008, EPA issued a rule requiring the use of lead-safe practices and other actions aimed at preventing lead poisoning. Under the rule, beginning in April 2010, contractors performing renovation, repair and painting projects that disturb lead-based paint in homes, child care facilities, and schools built before 1978 must be certified and must follow specific work practices to prevent lead contamination. Until that time, HUD and EPA recommend that anyone performing renovation, repair, and painting projects that disturb lead-based paint in pre-1978 homes, child care facilities and schools follow lead-safe work practices.

To read more about this regulation, visit HUD’s page dedicated to the new EPA rule.

How does this affect you? If your home was built before 1978 and you are planning on renovating your home using a contractor, make sure that contractor has the EPA certification. (Same goes for schools and child care centers!)

Subscribing to, or following, a blog can be very handy. It allows you as a reader to have all of a blog’s posts in one spot, along with any other blogs you follow, so that you aren’t having to navigate through the web to each blog you love every day. In other words, bring all your favorite blogs to one place! Here’s how:

1. First, we suggest creating a free Google account (if you don’t already have one).

2. Once you have your account set up, look in the upper left hand corner, and you’ll see a series of links that take you to different parts of your account –Web, Images, Videos, Maps, Shopping, Gmail, and a drop-down menu for “more.”  Click on that drop-down menu, and select “Reader.”  Or you can click here.

3. Click the “Add a Subscription” button.

4. Type in the web address of the blog you want to follow, and click the “Add” button.

5. At the top of the screen, you will get a message that reads, “You have subscribed to [name of blog].”

6. Now all of the recent posts from that blog have fed into your Google Reader account! To read this blog from now on, simply go to Google Reader, and new posts will be there waiting for you.

7. Once you start subscribing to a lot of blogs, Google Reader allows you to organize your blogs by topic or category. It really is a handy tool that will save you lots of time!

OTHER WAYS TO SUBSCRIBE TO BLOGS

Say you came across a blog that you find interesting to read, and you’d like to subscribe to it, but don’t want to go to your Google Reader account to set it up.

If the blog has a button or link for subscribing via an RSS (Really Simple Syndication) feed — below is the button we use here at Harrisonblog — simply click that link or button. It will bring you to a page full of content from the blog, and at the top of the screen, you can choose which application to use for the feed. You would choose Google, because you already have a Google account (step #1 above). Then click the “Subscribe Now” button, and you’re done! Next time you visit Google Reader, the most recent blog posts from that blog will be waiting for you to read.

Some blogs also provide the capability to follow that blog by becoming part of a community of followers. For example, this blog has a section for followers. To become a follower of the blog, click the “Follow” button (see photo below). You will be given the option to choose which account to use for following the blog. We suggest using your Google Account. You can then choose to follow either publicly or privately. (This choice just determines whether your photo is displayed in that blog’s followers section.)

The main difference between this sort of following and subscribing to a blog, is that following via a community as described above doesn’t automatically feed new posts into Google Reader. With this type of following, you would see all recent posts on a Blogger Dashboard, also done by Google. (The reason for this is that some blogs are run on Blogger, and some aren’t. Those that blog using Blogger have the option of adding a section on their blog for “followers.”) If you use Blogger often, this is a good option. If you don’t, we suggest subscribing to the blog using Google Reader, as described above.

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So, while you’re here, why not subscribe to Harrisonblog?

Many first time home buyers — and even some folks who have owned in the past and are currently renting — are just unsure about whether or not they should purchase a home. It is important to weigh your options before purchasing because it is likely the largest purchase you will make in your life.

So, how do you know if you should buy now? Speaking to a mortgage broker would help, because they would be able to go over your financial situation with you and assist you in determining the right choice for you. But before you pick up the phone and make that appointment, use this cool calculator to put renting vs. buying into perspective. (It takes just a few minutes!) It is amazing how much you can save over time by purchasing now.

There are many pros to buying a home (like appreciation in value, pride of ownership, financial asset, etc.), but if things don’t add up for you, just save some more money and think about it later.

For more information about buying a home, contact us!

So far, 2010 has been an eventful year in terms of snowfall. In late 2009, the snow fell in huge amounts around Christmas time, and again fell in bundles starting a few weeks ago, and continuing yet again today. According to WHSV, Harrisonburg will experience record snowfall for this winter if we get 1/10 of an inch today. Over 53″ for the season. Wow!

The new year has begun, and things are already looking promising for 2010 in our local real estate market! Last month, we looked over the market stats for the entire year 2009, which showed us that it was a tough year with home sales and prices down a pretty significant amount. Well, this year is full of opportunity, and we look forward to a year of promise and moving forward through recovery!

Note: We normally post year-to-date numbers in our market reports, but since it is January, we won’t bore you with those numbers this month. Check back next month to see those stats in February’s market report.

Already, things are looking up. As you can see in the chart above, sales have increased by nearly 18.5% from last year at this time! List prices have increased as well, but the main stat to look at as far as prices are concerned is the sales prices. The average sales price over last January have only decreased by 0.45%. A minuscule drop like that shows that home values are steady. The average days on market for homes sold decreased as well, which means homes are selling faster now than they were a year ago. More good news!

Home sales remain popular in the $100,000 - $300,000 price ranges, both for the month of January and for the previous 12 months. You’ll also notice that the average days on market increases as homes get more expensive. This makes perfect sense because as prices get higher, the number of buyers gets smaller due to having finances available for higher-priced homes.

Overall, January 2010 proved to be positive, and we look forward to seeing more good news in February!