Hawaii Life Real Estate Brokers » Obama Tax Credit

Congress Extends Housing Credit Closing Date

Ron Margolis, RA, ABR — Fri, 09 Jul 2010 04:00:14 +0000

In support of the housing market and pending deals nationwide, the House and Senate have pushed through a three-month closing extension for the homebuyer tax credit.

On Friday July 2nd, President Barack Obama this morning signed HR 5623, the “Homebuyers Assistance and Improvement Act of 2010,” a three-month extension on the closing deadline for first-time home buyers to receive the tax credit.

Potential homeowners with offers currently under contract now have until September 30 to close the deal, instead of the original June 30 deadline.Â The tax credit remains at a maximum of $8,000.A copy of the HR 5623 can be downloaded here.

The bill is worded to retroactively include properties that closed in the first two days of July.

According to the Internal Revenue Service, besides providing a tax benefit to first-time homebuyers and purchasers who havenâ€™t owned homes in recent years, the law also allows a long-time resident of the same primary home to claim the credit if they purchase a new principal residence. To qualify, eligible taxpayers must show that they lived in their old homes for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home.

* Homebuyers with contracts signed by April 30 who failed to go to closing by the June 30 deadline will now have until September 30 to complete their purchases

* These tax credits include $8,000 for first time homebuyers and $6,500 credit for others purchasing a new primary residence

This is a strong measure to assist the housing market, as the disappearance of these incentives (or buyers running out of time) have contributed to a recent fall in home sales.

View Kauai Deals in my Kauai Foreclosure Gallery â†’

First-Time Homebuyer Credit Extended for Members of the Military and Certain Federal Employees

Cheryl Gillotti, RS — Tue, 18 May 2010 23:00:46 +0000

Military and certain other federal employees have until April 30, 2011 to buy a home that qualifies for the federal first-time home buyer credit.

Joint Base Pearl Harbor-Hickam

You may be aware that the Worker, Home ownership and Business Assistance Act of 2009 extended and expanded the first-time home buyer credit allowed by previous Acts so long as eligible taxpayers bought, or contracted to buy, a principal residence on or before April 30, 2010.

Yet there are additional benefits for members of the military and certain other federal employees serving outside the U.S. They have an extra year to buy a principal residence in the U.S. and qualify for the credit until April 30, 2011. Additional details are available in an article on IRS.gov. This is good news for our military families that are looking to purchase a home here in Hawaii!

Homebuyers Jump into Oahu Real Estate Market at Discounted Prices

David E. Buck, R, BIC — Wed, 12 May 2010 01:19:14 +0000

The Honolulu Board of Realtors’ April 2010 stats are out and once again sales volume is up. Continuing on strong momentum from March, single family home resales were up 52% and condos up 48.3% from last year!

Buyers took advantage of discounted prices as the median sales price for homes were down 6.2% and condos down 2.2% on Oahu. This has been a healthy market as buyers realize now is a good time to buy. Now that the government’s tax credit is a thing of the past, it will be interesting to see if this momentum carries into summer, which has traditionally been our strongest season of the year both locally and nationally.

Download April 2010 Oahu Sales Stats (PDF):

Oahu Sales Volume and Prices Higher in March

David E. Buck, R, BIC — Thu, 15 Apr 2010 00:50:01 +0000

The sales volume on Oahu continued to gain steam outpacing 2009 again. Single family home sales were up 32.1% and condo sales were up 36.4%. Prices were also slightly up with 4.2% appreciation onÂ homes and 3.3% appreciation for condos. While volume and prices were heading up, inventory was down 23.8% across the board compared to March of last year.

Download March 2010 Oahu Sales Stats (PDF):

Sellers are also fairing better than they did a year ago, realizing 95.7% of asking prices for homes and 94.5% for condos across the board. In my opinion, this was driven byÂ 3 factors:

Lower inventory
More buyers in the marketplace with the tax credits
Sellers have become more realistic in their asking prices

If you were a seller that was unsuccessful in selling your property last year, now may be the time! Today’s market trends coupled with Hawaii Life’s proven Smart Marketing and Solid Representation can helpÂ you get your place SOLD while the market is hot!

Does Housing Help the Economy or Does the Economy Help Housing?

David E. Buck, R, BIC — Sun, 11 Apr 2010 16:53:47 +0000

If “the economy helps housing,” Honolulu’s housing market may be in for a rebound.

Honolulu Now Ranks 6th in the Nation for Economic Growth

According to an article in today’s paper, Honolulu is ranked 6th in the nation for metro areas. The report was composed by the Brookings Institution. Coupled with low inventory, it will be interesting to see what happens. Will this drive our housing market or not? When the government money for first-time homebuyer credits is shut off at the end of this month, will housing slow and take the economy with it? Only time will tell…

North Kohala Real Estate Makes a Comeback

Beth Thoma Robinson, R(B) — Fri, 09 Apr 2010 17:43:35 +0000

At least 33 homes have already sold in Kohala since July 2009, compared with only 7 in the previous 12 months.

The Kohala Coast—the area surrounding the rural towns of Hawi and Kapaau on the Big Island—will always be a desirable place to live. After a slow year, more and more buyers are finally able to buy land or a home here.

This time one year ago, the market for homes and land was frozen. In the first quarter of 2009, only ONE parcel of land sold–and that one had owner-financing. In the same quarter, only FOUR homes were sold. These included a little bit of everything: a bank-owned foreclosure at $155,900 on Kynnersley Road, a limited service listing (essentially for sale by owner) for $430,000, and two homes in upscale Maliu Ridge for $750,000 and $990,000. Even more telling of the deadened real estate market, there was little or nothing in escrow at the end of the quarter, as four parcels of land closed in April and no sales at all were recorded in May and June!

Affordable home sales take off.

In the second half of last year, however, residential sales took off. The two biggest factors were sellers becoming realistic about prices in a “buyer’s market” and first-time buyers looking to take advantage of the Federal Housing Tax Credit. Thirteen homes sold in the second half of 2009, ten of them priced at under $350,000, including four under $200,000.

To put this in perspective, during the North Kohala Community Development Plan process in 2007, the Affordable Housing Focus Group found that the last time there were houses available under $250,000 in Kohala was 2003! The trend continued into the first quarter of this year with 7 homes sold, 3 of them under $350,000 and 13 more houses in escrow in Kohala as the quarter ended.

Sale of luxury homes also increases.

This Puakea Bay Ranch luxury home (MLS# 230535) located in a gated oceanfront community with equestrian trails offers 6,900 sq. ft. of living space as well as a 3,000 sq. ft. lanai.

The other good news was that 2009 ended with the sale of a beautiful home on 4.5 acres near Hawi for $1,150,000—the first sale above the $1 million mark in over a year. Today, interest in high-end properties continues, with a great ocean view property sold at Maliu Ridge in the first quarter and two homes at the gated community of Puakea Bay Ranch having current offers on them.

Currently, there are only two homes available for sale at Puakea Bay Ranch: a gracious home of over 6,900 sq. ft. home priced at $2.2 million (MLS# 230535) and an oceanfront estate with 9 bedrooms, over 11,000 sq. ft., and of course pool and tennis court priced at $13.5 million (MLS# 232548).

Land, too, is finally selling.

Land sales also picked up again in the second half of 2009, with five properties sold ranging from 3 acres to a 23.5 acre oceanfront parcel. Three of these were local buyers and the others Mainland residents purchasing for “future retirement.” The MLS shows three parcels of raw land closed so far this year (although one lot was part of the sale of the adjacent home at Maliu Ridge), and another three are under contract. These land figures exclude the parcels sold along the coast for under the State’s Legacy Land Conservation Programâ€”another piece of good news for Kohala.

Overall, the market is really picking up.

Real estate agents look at the amount of “inventory” versus the pace of sales to determine the direction of prices. Although new homes are always coming on the market, and although there are a few properties in the foreclosure process that will continue to dampen prices, this healthy rate of sales would normally mean prices will begin to stabilize and creep upward.

What difference a year makes!

Beth Thoma Robinson, R(S)
Direct: 808.443.4588
Email: beth@hawaiilife.com

Kohala Coast Homes at Waikoloa Village Quickly Rising in Value

Pat Strausse, RB — Tue, 06 Apr 2010 02:04:54 +0000

In just one month, Waikoloa Village homes saw their value go up by 20%.

March sales numbers are in for homes in this Kohala Coast community. While the overall number of salesâ€”five for the monthâ€”was on track with January and February, the average price increased from $333,722 for the 1st two months of 2010 up to $400,000 in March.

This Waikoloa Village home (MLS# 219391) features hardwood floors throughout as well as stunning mountain and coastal views

The most notable change in March sales was the absence of any homes selling in the $200,000 range. Rather, sale prices ranged from $334,000 all the way up to $510,000. As the the average sales price of $400,000 was only $10,000 less than the average asking price, buyers apparently found little negotiating room.

April, too, should be a busy sales month at Waikoloa Village, given the 19 homes currently in escrow, many of which should be closing this month. The village is also likely to attract many last-minute home buyers eager to take advantage of the $8,000 federal tax credit before it expires at the end of April.Â For these reasons, the value of homes at Waikoloa Village will likely continue to increase next month, reflecting increasing demand for these properties.

Contact me for more information about the numerous homes for sale in Waikoloa Village.

Kauai Homebuyers Seminars Set for January 26th and 28th

Ron Margolis, RA, ABR — Fri, 22 Jan 2010 19:38:37 +0000

I’ll be facilitating a seminar for 1st time home buyers and homeowners entitled Home Ownership 101, for those who wish to learn about purchasing a home. We’ll also cover the state of the Kauai real estate market and the types loans available including FHA and VA loans. The seminar will feature presenters from four dynamic companies including:

101 Financial

Title Guaranty Title and Escrow

Wells Fargo Home Mortgage

Hawaii Life Real Estate Services, LLC

This is a fantastic time for 1st time home buyers and all types of buyers. Interest rates are still low (but may be trending up later in 2010). There is a 1st time home buyer’s tax credit which can save you up to $8000. The Kauai real estate market is hovering near or around its bottom. There are many distressed sellers and bank-owned properties which are bringing prices down.

There’s a lot to know about purchasing a home and a Kauai buyer’s agent can make it an easier process for you. Key points we will be covering at the seminar include:

Reducing your debt, improving your credit score, and getting your financial house in order
Taking advantage of the 1st Home buyers tax credit which expires April 30th
Getting prepared to purchase a short sale or bank owned property – risks and rewards
Current financing options for 1st time buyers including FHA loans.
Understanding the process of escrow which is what you go through when you purchase property in the state of Hawaii.

Attendees will receive binders with lots of FREE Valuable information.

We’ll be having two sessions: Registration begins at 6:30 PM

Tuesday January 26th 7p.m.
Hilton Kauai Beach Resort
Lihue, HI

Thursday January 28th 7p.m.
Waimea Neighborhood Center
Waimea, HI

Register Online or for further information contact me, Ron Margolis, at 808.346.7095

Trading Up in Kohala Coast Big Island Real Estate

Beth Thoma Robinson, R(B) — Fri, 25 Dec 2009 03:45:11 +0000

Wednesday morning our local newspaper’s front page reported that for the month of November 2009 real estate sales on the West side of the Big Island were stronger in most areas and categories than in the same month a year ago. I know the Hawaii Life Big Island team contributed to those statistics!

Some of the real estate market trends we have blogged about recently are the predominance of foreclosures and short sales, the renewed activity in luxury properties at Hualalai and Kukio, and the effects of the first time home buyer tax credit. Reading the news article on the real estate market reminded me that a year ago, in November 2008, was the first time I noticed a different trend: buyers who are trading up!

Halii Kai direct oceanfront condo

At the time I had a listing on a direct oceanfront condominium at Hali’i Kai…and the buyers already owned the same floor plan farther back without the view. They loved the community and had the money, hence they made an all cash, quick close offer…which convinced the seller to take a substantial loss, even though, compared with recent foreclosure and short sales at the same property, with 20-20 hindsight this seller did quite well. A buyer who has inside knowledge of a location or property sometimes sees value that someone who is strictly thinking “deal,” rather than lifestyle and long-term appreciation, might miss.

The first buyer client I assisted this year after joining Hawaii Life was a local physician and his family, who already owned a beautiful ocean view lot in a location makai of the highway where the possibility of someone ever developing or building between his lot and the ocean is very very slim. However, he’d been watching the real estate market and realized that if there were ever a time to trade up–and the only thing “up” from the property he already had was in fact “down” to direct oceanfront–now was the time.

So Katie and I walked pretty much every large oceanfront acreage on the north side of the island with them until they were satisfied that the first property they inquired about via the Hawaii Life website was, indeed, the perfect choice. By the way, the Hamakua coast 5-acre parcel they traded up from is a wonderful buy for someone whose price point is under $500,000 rather than almost $2 million!

I had a phone call recently from a customer who for several years has owned a condo in Waikoloa Village as a second home. She was calling about a single family home I have listed near Kapaau in North Kohala…an area she’d always loved but at the height of the market felt she couldn’t afford. She was excited to see a quality residence in a quiet neighborhood for under $500,000. She’s another example of someone who is looking at the market as an opportunity to trade up.

I’m working with another prospective buyer who owns a luxury condo within one of the Kohala Coast resorts, but ultimately wants to spend more time in Hawai’i, and therefore was intrigued by some of the price reductions on resort lots where one day he could build a home. I just sent him news of a reduction on a lot of almost an acre in size at Kauna’oa at Mauna Kea. Other buyers would rather not have the high association dues that come with a resort property even if nothing is built on it, and they are driving the land sales in my home market near Hawi.

I predict that some of the smaller, less well known gated communities are ripe for discovery this winter, and I’ve just taken listings in two of them, Puuepa Ranch and the Ranch at Puakea. If you like the paniolo ranching heritage of Waimea (Kamuela), but also would like to be near enough the ocean to put in a swimming pool and watch whales in season, these might be the right options for you (and your family and equine friends!)

If you are considering trading up and want to know what your present Big Island property is worth, remember, we are always happy to give you a comparable market analysis with no strings or sales pitch attached.

Mele kalikimaka and a hui hou!

Beth Thoma Robinson, R(S)
Direct: 808-443-4588
Email: beth@hawaiilife.com

Talking Tax Credit with Cindy Stone, Home Loan Consultant

Katie Minkus, R(BIC) — Tue, 22 Dec 2009 19:49:56 +0000

A Hawaii Life Core Value

Every now and again at Hawaii Life, we express our “unified” core value by collaborating with other professionals in the Real Estate Industry outside of our corporate domain. Today it is our pleasure to invite Cindy Stone, a Home Loan Consultant with Central Pacific Home Loans, to explain the latest in Tax Credits for Homebuyers.

First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

New Deadlines: In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Tax Credit VS Tax Deduction: Itâ€™s important to remember that the tax credit is just thatâ€¦ a tax credit. The benefit of a tax credit is that itâ€™s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

Higher Income Caps: The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

Joint filers who earn up toÂ $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price: Qualifying buyers may purchase a property with a maximum sale price of $800,000.

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Remember, the new tax credit program includes a number of details and qualifications. For more information or answers to specific questions, please call or email me today.

Cindy Stone

HomeLoan Consultant

65-1230 Mamalahoa Highway, Bldg. F, Suite 102

Kamuela, HI 96743

Mobile: 808.557.7269

Phone: 877.466.3429 ext. 437

Fax: 808.885-9340

Email: cstone@cp-homeloans.com

Cindy Stone, Home Loan Consultant