San Antonio Real Estate Market Report February 2009
March 30, 2009
San Antonio February 2009 MLS Report |
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| Sales | Sales Year Ago | % Change Year Ago |
| 1,097 | 1,487 | -26% |
| Average Price | Avg Price Year Ago | % Change Year Ago |
| $177,949 | $172,208 | 3% |
| Median Price | Med Price Year Ago | % Change Year Ago |
| $145,100 | $144,900 | 0% |
| Price Per Sq Ft | Price Per Sq Ft Year Ago | % Change Year Ago |
| $85 | $70 | 21% |
| Days On Market (DOM) | DOM Year Ago | % Change Year Ago |
| 108 | 88 | 23% |
| New Listings | Active Listings | Pending Sales |
| 2,520 | 12,049 | 1,168 |
| 8.2 Months of Inventory | ||
Source: SABOR
Get A Free Water-Efficient Toilet From SAWS
March 21, 2009
Free Water-Efficient Toilet
Through the Kick the Can program, SAWS will give you up to two new water-efficient toilets absolutely free. And it’s so simple – SAWS has already found high-quality water saving toilets for you. And did we mention they’re free?
Who’s eligible? |
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This program is offered to SAWS residential water customers to encourage replacing old toilets with a new water-efficient toilet. As a customer, you can receive up to two water-efficient toilets per household from SAWS—FREE!
How does this option work?
| Step 1) | Complete the attached Kick the Can Toilet application. SAWS residential accounts are eligible. If eligible, up to two toilets may be received. If you require a handicap toilet, please indicate this on the application and provide a letter from your doctor stating your request. |
| Step 2) | Submit a completed application to SAWS at: SAWS Kick the Can Program P. O. Box 2449 San Antonio, TX 78298-2449 |
| Step 3) | SAWS will mail qualified participants a Residential Toilet Distribution Voucher for free toilets. Qualified participants are those who have not received a rebate or toilet from SAWS in the past. All vouchers will have an expiration date indicating when the toilets must be picked up. All toilets must be picked up before the expiration date (30 days). Toilets are a white, round front and come with a standard toilet seat, wax ring, and a set of bolts to anchor the toilet. |
| Step 4) | Install the new toilet(s) and start saving water and money. |
Sitterle Homes Opens For Sales In Prospect Creek at Kinder Ranch
March 20, 2009
Sitterle Homes has opened for sales in Prospect Creek at Kinder Ranch, a new family community nestled in the peaceful, rolling Texas Hill Country.
This gated community offers the unparalleled beauty of the Hill Country, while remaining close to San Antonio. Located only eight miles north of 1604 at Borgfeld and Bulverde Roads, Prospect Creek features 10 new traditional single-family home designs ranging from 2380 to over 4000 square feet. Many one story and two story plans are available, and each plan has many options to personalize the home for one’s family’s needs. Different plans offer a variety of unique spaces, including a hobby center, large master walk-in closets, a sunroom, a game room, library with a separate study, or extra storage in garages or on second floors. Plans with standard 3-car garages and up to 4 and 5 bedrooms are available.
Children who live in this community will go to Comal ISD schools, including Smithson Valley High School, as of this writing. Prospect Creek residents will enjoy a community amenity center, complete with a swimming pool and clubhouse, due to begin construction this year.
“This community is truly an opportunity for Hill Country-style living without being far outside the city,” Jeff Buell, Partner, said. “These homes will allow families to enjoy fine living among numerous native trees, rolling hills and breathtaking beauty, while only being minutes away from Highway 281 shopping and Comal ISD schools.”
To visit Prospect Creek at Kinder Ranch, travel north on Highway 281 from Loop 1604. Turn left on Borgfeld Road. Turn right onto Bulverde Road, and make an immediate left into the Prospect Creek at Kinder Ranch Sales Center. Homes currently start from the $280’s.
For more information on building with Sitterle Homes in Prospect Creek at Kinder Ranch, visit www.sitterlehomes.com.
USDA Texas Rural Home Loan Program
March 19, 2009
The United States Department of Agriculture (USDA) has a rural development program to help make affordable housing available in rural areas (Ex. Boerne, Cibolo, New Braunfels). This program has some key advantages compared to other types of Texas rural home loans. Listed below are some of the key benefits:
USDA Texas Mortgage Program Benefits
- No Down Payment Required
- 100% Financing
- Seller May Pay Your Closing Costs Up To 6%
- No Reserve Requirements
- Very Low Finance Rate At A Fixed Rate
- No Mortgage Insurance Which Reduces Your Monthly Payment
- No Maximum Purchase Limit
- Reasonable Minimum Credit Score
- NOT Just For First-Time Home Buyers
Texas USDA Rural Development Loan Qualifications:
- The property must be in a designated rural area (Ex. Boerne, Cibolo, New Braunfels)
- The property must be for residential use and you must intend to occupy the home as your primary residence
- The value of the land should not be more than 30% of the total property value
- You must NOT already own adequate housing in the area you wish to purchase in
- You must be a US citizen or be a legal permanent resident to the US
- Reasonably good credit is required, especially the most recent year
- Sufficient dependable income is required for the home you wish to buy; generally the home total payment should be no more than 29% of your gross monthly income
- There is an income limit that depends on the county, it is about 115% of the US average
You must NOT have liquid assets of 20% or more of the homes selling price
If you’re NOT currently working with a REALTOR® and are ready to take advantage of this Great Program register below to get started today!
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5 Reasons To Buy Now
March 18, 2009
1. Affordability Is Better Than Ever
According to the National Association of Realtors housing affordability index, homes were more affordable in December than at any other point since the group started the index in 1970. The affordability index is a measure of the relationship between home prices, mortgage interest rates and family income.
Home prices in the San Antonio market have remained pretty much flat at $145,100 compared to February 2008 when the median price was $144,900, according to the San Antonio Board of Realtors.
Good news when many other housing markets home prices have fallen as much as 30% (Las Vegas, Miami) just within the last year.
2. Buyer’s Market – You Have A Large Inventory To Choose From
In many places it is taking months to sell a home, creating loads of inventory — from new homes to existing homes to foreclosures. There was a 7.8-month supply of unsold existing homes in January given that month’s sales pace, according to Texas A&M Real Estate Center.
A large selection gives buyers more choices and drives down prices. And home sellers have gotten the picture. It’s fair to say that some home sellers have become desperate. Sellers that have had for-sale signs in the yard for the past six months are now motivated to accept a lower offer.
Buyers can now take advantage. Another option is having the seller pay a portion if not all of your closing costs. Which could equal an average of 4 percent of the homes purchase price. That’s $6,000 dollars on a $150,000 dollar home.
3. Builders Are Offering Big Discounts
Home builders are getting even more aggressive with their pricing. In fact, you should start looking at completed new homes first because builders are offering such steep discounts. Plus, you’d have a warranty not only on the home itself, but also on the home’s appliances.
Example: D.R. Horton Home located in Alamo Ranch subdivision which is off Culebra Road and Loop 1604. This 2-story home is a 3 Bedroom, 2.5 Bath, 2 Garage and has a total of 1,889 square feet. Originally listed for $181,000, is under contract right now for $159,000. That’s a $22,000 dollar discount!
The Key Is: Walk in with a pre-approval for a mortgage, make an offer, then walk away without making a deal if you have to. Chances are, a builder will call back and reconsider that offer rather than let a potential buyer get away.
4. Mortgage Rates Are Historically Low
It’s not just the price of the home that will affect affordability; mortgage terms will also affect your monthly payments. These days, rates are very attractive for conforming loans, those that can be purchased by mortgage agencies Fannie Mae and Freddie Mac.
Earlier this year, rates on the popular 30-year fixed-rate mortgage hit a level not seen in decades, and rates have stayed relatively near that low for weeks. This week, the 30-year fixed-rate mortgage averaged 5.07%, according to Freddie Mac’s weekly mortgage survey.
But low rates don’t mean lenders are handing out mortgages easily. You’ll need good credit, at least a 3.5% down payment and a willingness to document your income in order to qualify for those great rates.
5. You Can Get A Federal Tax Credit
There’s now a federal credit of up to $8,000 for home buyers who haven’t owned a home in at least three years. The credit is available for a limited time (ends December 1, 2009) and does NOT have to be repaid.
That extra cash will come in handy as the average first-time home buyer spends about $6,000 in the first six months of owning a home. We all want new furniture to go with our brand new home.
Waiting for further federal developments, however, might zap a buyer’s negotiating power, as San Antonio home buyers have now shifted into house-hunting mode for the traditional springtime and summer buying season.
If you have reasonably good credit, money for a down payment and can provide documentation of your income for the past 12 months, call me TODAY to take advantage of this great opportunity.
Daniel Gaitan, REALTOR®
Trend Setter Realty
1100 NW Loop 410 Suite # 700
San Antonio, TX 78213
Direct # (210)846-5282
Frequently Asked Questions About The $8,000 Home Buyer Tax Credit
March 3, 2009
The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.
The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.
- Who is eligible to claim the tax credit?
- What is the definition of a first-time home buyer?
- How is the amount of the tax credit determined?
- Are there any income limits for claiming the tax credit?
- What is “modified adjusted gross income”?
- If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
- Can you give me an example of how the partial tax credit is determined?
- How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
- How do I claim the tax credit? Do I need to complete a form or application?
- What types of homes will qualify for the tax credit?
- I read that the tax credit is “refundable.” What does that mean?
- I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
- Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
- Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
- I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
- I am not a U.S. citizen. Can I claim the tax credit?
- Is a tax credit the same as a tax deduction?
- I bought a home in 2008. Do I qualify for this credit?
- Who is eligible to claim the tax credit?
First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.
- What is the definition of a first-time home buyer?
The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.
- How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
- Are there any income limits for claiming the tax credit?
The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
- What is “modified adjusted gross income”?
Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine “adjusted gross income” or AGI. AGI is total income for a year minus certain deductions (known as “adjustments” or “above-the-line deductions”), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.
- If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phaseout limits.
- Can you give me an example of how the partial tax credit is determined?
Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.
Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.
Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.
- How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous “credit” was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.
- How do I claim the tax credit? Do I need to complete a form or application?
Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.
- What types of homes will qualify for the tax credit?
Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.
- I read that the tax credit is “refundable.” What does that mean?
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).
- I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.
- Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.
In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.
- Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
Yes. The tax credit can be combined with the MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.
- I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
No. You can claim only one.
- I am not a U.S. citizen. Can I claim the tax credit?
Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of “nonresident alien” in IRS Publication 519.
- Is a tax credit the same as a tax deduction?
No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.
A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.
- I bought a home in 2008. Do I qualify for this credit?
No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit.
