market trends

Homeowners in Hampton Roads are working hard to sell before the homebuyer tax credits expire next month. Two credits are available: $8,000 for first-time buyers or buyers who haven't owned a home in three years, and $6,500 for those who've owned their current or latest home for five years.

To qualify for the credit, buyers have to sign a contract by April 30 -- a powerful incentive that property owners hope to take advantage of.

Read more in The Virginian-Pilot....

The federal homebuyer's tax credit deadline is just a month away, and Realtors say buyers know it. Properly priced homes are being snatched up.

February homes sales data for the Washington region show price increases over the same month in 2009, according to Metropolitan Regional Information Systems. Every county in the Virginia suburbs of Washington showed an increase in the average price of homes priced at $100,000 to $5 million. The outer suburbs that were hit the hardest by the mortgage crisis showed the biggest increases, with prices up 25% in Prince William County and up 13.5%in Loudoun County. Alexandria prices rose 17.5%, Fairfax County 7.3%, and Arlington County 3.4%.

Read more at the Washington Examiner...

Great news for Hampton Roads residents. The housing market continues to improve, according to The Virginian-Pilot, as October's numbers show to be greater than September's and October 2008.

Much of the rebound has come from first-time home buyers taking advantage of the $8,000 tax-credit, which will hopefully continue because of the recent extension of the tax-credit until April 2010.

Also, the extension of the tax-credit includes higher-incomes and an option for current homeowners to "move up". These qualities will hopefully help move more valuable houses on and off the market that first-time homebuyers could not purchase.

"First-time buyers rushing to take advantage of the now-extended federal tax credit continued to drive home sales in Hampton Roads in October, according to a report released Monday.

Last month, sales volume was up 2.3 percent over September and 28.1 percent over October 2008, according to Real Estate Information Network Inc. The Virginia Beach-based multiple listing service reported 1,107 homes in the region sold in October, compared with 864 a year ago.

October's was the biggest year-over-year gain for 2009, and it was the fifth month of such increases since home-sales volume turned positive in June. The rebound in home sales stands in stark contrast to the homes market a year ago, when sales were plummeting amid deteriorating economic conditions.

The federal tax credit for first-time homebuyers has buoyed sales across the country. Congress recently extended the $8,000 tax credit, originally scheduled to expire this month, through April and expanded the credit to include $6,500 for home-owners who have lived in their home for at least five years and want to buy a replacement primary residence.

'The tax credit, no question about it, has had a positive impact on the market,' said Ron Pearman, regional vice president for Long & Foster Real Estate. Of a sampling of homes that closed last month with Long & Foster, 70 percent were first-time buyers, Pearman said.

Other local brokers said Monday that the tax credit has accounted for as much as half of their recent sales."

Read the full story.

An area builder of modular homes and commercial buildings has seen a 50 percent increase in production since March, according to the Martinsville Bulletin.

Nationwide Custom Homes has recalled workers that were laid off in 2008 to help meet the increased demands. Nationwide attributes the increased production to the homebuyer tax-credit program and to their continued commitment to customer service.

This is great news for area homeowners because as the housing market continues to rebound, Nationwide will be able to hire back more employees. Also, this is a great sign for the housing market.

"Nationwide Custom Homes’ production is up 50 percent since March, company officials said.

If that trend continues, the company’s goal is to recall workers and/or fill about 75 positions next year at the company’s Martinsville division, according to Nationwide President Andy Miller and Vice President-Operations Tommy Rakes.

The company already has recalled more than 20 of the 100 workers who were laid off in 2008 and filled six positions since June of this year, Rakes said. The Martinsville division has 206 employees, he added.

Miller said a bill that extends and expands a homebuyer tax credit program would help the housing industry. President Barack Obama signed the bill Friday. According to The Associated Press, the tax credits center on extending the popular $8,000 maximum credit for first-time homebuyers that was included in the stimulus package.

The credit, which was to expire at the end of this month, will be available through next June as long as the buyer signs a binding contract by the end of April.

The program is being expanded to include a $6,500 maximum credit for homeowners who buy a new home after living in their current residence for at least five years, The Associated Press reported.

Rakes said he attributes Nationwide’s 50 percent increase in production since March to factors including the company’s Mainstreet product line, which was introduced in 2008.

Also, he cited the company’s expansion of distribution channels by signing on 32 new builders since March; its efficiency gains; hard work of employees; and emphasis on customer satisfaction."

Read the full story.

The Daily Press recently spoke with one couple who is taking advantage of the new tax credit and housing market to move out of their starter home.

This is a great time to move-up to a new home for a number of reasons:

1.  The new $6,500 tax credit. (See details.)

2.  The market is full of great bargains.

3.  Interest rates are still low.

Hopefully the move-up credit will be a big help to homeowners, and will help with the housing market recovery.

"George and Florence Sutton bought what they thought would be their starter home in 1990. Nearly 20 years later, they're finally moving up.

Turns out it's a good time to do so, with an $8,000 home buyer tax credit, low interest rates and a slew of inventory to pick from.

'Now is an excellent time to be looking for that move-up home because the bargains available on the more expensive properties are just unbelievable,' said Keith Canty, a real estate agent with Greg Garrett Realty. 'They lose some when they sell, but they gain much, much more when they buy. Anybody that can, this is an excellent time to do that.'

This summer, an up to $8,000 tax credit breathed enough life into a lackluster housing market locally and across the nation that Congress saw fit to extend and expand it. The Suttons saw it as a good opportunity to snag a move-up home they've been thinking about for three or four years, now that their kids are grown."

Read the full story.