Going Green and The New Tax Credit

Saint Patrick’s Day has just passed, Spring is just around the corner and April is on its way.  These things put me in mind of the color green, which led to thinking green living, which then reminded me of the new tax credit available to homeowners in Lake Havasu.
 
Lake Havasu homeowners can tax advantage of a new tax credit which is a part of the stimulus program.  The American Recovery and Reinvestment Act of 2009 changed and extended the tax credits for energy home improvements.

    *      The tax credit was increased from a $500 maximum to a $1,500 cap.
    *      The tax credit was extended to include the year 2010.
    *      The tax credit was increased from 10% to 30%.
    *      The tax credit of 30% now applies to items which previously had a specific dollar amount.
 
A tax credit is also available for improvements made in 2008, but what qualifies is more restrictive.  Only certain types of energy home improvements qualify for the tax credit.  In some cases, the tax credit will cover installation costs.  Windows, doors, roofs and water heaters are some of the energy improvements which qualify for the tax credit.
 
The Energy Star website features a Summary Of Tax Credits For Homeowners and other valuable information that you may find helpful.  Going green in real estate is the new trend.  Homes with energy efficient features get more showings, sell faster and get a higher asking price, according to recent surveys.
 
A simple improvement of your Lake Havasu home may not seem like much of a stimulus to our economy.  However, when you think about it, someone will need to do the improvement, which means somebody has a job.  Even if you decide to do-it-yourself, you will buy your green improvement from a local business which creates demand.  Demand creates jobs in manufacturing.  Every little bit helps.
 
You can improve your Lake Havasu home for your own enjoyment while increasing its marketability and value.  In addition, you are able to take advantage of the tax credit and be a part of the stimulus plan restoring economic stability to Lake Havasu and other parts of the nation.
 
Donna Ball, Lake Havasu Real Estate
 
Energy Star website: http://www.energystar.gov/index.cfm?c=products.pr_tax_credits
Tax Credit Home Improvement – FAQ

Getting Off the Fence – Home Sales Up in Lake Havasu

Buyers seem to be getting off the fence and taking advantage of affordable home prices and low interest rates here in Lake Havasu City.  The Lake Havasu Association of Realtors reported 105 sales in February, with another 153 sales pending escrow.  It was also reported that the number of active listings in Lake Havasu has decreased.  Foreclosures are still driving the market here in Lake Havasu as well as other parts of the nation.  More foreclosure properties will be hitting the market and that trend will most likely continue for another year.
 
Many lenders placed a moratorium on foreclosure proceedings until the Obama administration announced its plan to help distressed homeowners.  The Homeowner Affordability and Stability Plan (HASP) was announced last week.  The plan gave banks guidelines for loan modification and incentives to help at risk homeowners.  Properties which were on hold and do not qualify under the HASP program will be hitting the markets nationwide in the next few months.
 
The delinquent rate nationwide is up, but the foreclosure rate for sub-prime loans has held steady for several months.  The increase in delinquency rate seemed to be more economy driven rather than attributed to sub-prime loans.  The sub-prime foreclosures have peaked and will continue to decrease.  Until all of the sub-prime loans are sifted through, foreclosures will continue to drive the market.  That trend is expected to continue for about another year.  This would indicate that the end of the depressed housing market may be in site.

RealtyTimes.com reports there are several indicators showing the housing market improving on a national level, especially in the hard hit Riverside-San Bernardino, California area.  While foreclosures will continue to impact home values, it is hoped that the slow down in the pace of foreclosures coming on the market will help stabilize property values.  If this is the case, the Lake Havasu market may be bottoming out.  Our current market is at its best in years for home buyers.  The median price in Lake Havasu for a single-family residence is $149,900.  Interest rates are hovering at the 5% level and the government is offering a tax credit* for first-time home buyers.
 
Getting off the fence and buying a home in 2009 looks to be a very smart idea.
 
Donna Ball, Lake Havasu City real estate

Tax Credit Note:
First-time homebuyers is defined as anyone who has not owned a home in the last three years.
The tax credit is 10% of the sales prices of a home up to $8,000.
The tax credit does not carry a repayment requirement.