Market Update & Tips - 6/9/2009
As promised, here is my quarterly update on the real estate market and some helpful tips for implementing environmentally friendly practices and home improvements. I hope that you find this information useful. As a Realtor® and EcoBroker® at Bunbury & Associates, I feel it is my duty to keep my clients and friends informed. Enjoy!
 

The Madison Area Market Update

Madison, once again, garners national kudos. Our city was ranks # 7 out of the Top 10 Best Cities of 2009 by Kiplinger’s Personal Finance. The financial publication and website graded the cities on their job growth potential, quality of positions and the ability to keep positions when the economy softens. For the article in The Capital Times on 5/26/2009, click here: http://www.madison.com/archives/read.php?ref=/tct/2009/05/26/0905260299.php
 

Madison Sales

The Madison area real estate market is faring better than many others across the country, even though sales are slightly down this year. According to the MLS, here’s an account of home sales in Dane County through April, 2009. (Please note that the MLS does not include all sales).

Number of sales January to April 2009: 1,091 (down 313 from 2008)

Average sales price: $226,786 (down $19,692 from 2008)

Total number of active residential listings at the end of April: 4,828 (down 333 from 2008)

 

Madison Assessments for Tax Purposes

Many of you have seen that Madison property assessments dropped this year, an average of 1%, for the first time in decades. In order to understand the value of your home, however, please consult with me. Tax assessments are not market value and do not determine the sales price of your house. Here are links to a recent Madison.com article and the table showing a breakdown of assessment changes by neighborhood.

April 18, 2009 Article http://www.madison.com/wsj/home/local/447515

Neighborhood Comparison Chart, Courtesy of Madison.com http://www.madison.com/live/wsj/projects/documents/2009assess.pdf

 

National News

According to a recent article posted on Bloomberg.com, April pending re-sales are up 6.7% with the Midwest showing a 9.8% increase. Additionally, the affordability index hit a record high of 176.9 in January and was at 174.8 as of April. Unemployment, however was up to 8.9% as of April and is expected to continue to rise through 2009. For the June 2 nd article, click here: http://www.bloomberg.com/apps/news?pid=20601103&sid=aUox8hHm9OqY&refer=news

 

Homebuyers $8,000 Federal Tax Credit

If you know any first time homebuyers looking to purchase this year, the clock is ticking on the $8,000 federal tax credit. They have to close by November, which means having an accepted offer by September or early October, typically. There has been some buzz that the $8,000 can be used as a down payment if the buyer is using an FHA loan, but my lending sources here in Wisconsin indicate that because we do not have a WHEDA type loan system available at this time, lenders in our state do not have a mechanism set up to make this happen in a timely fashion. For more details about this, please contact your lender. If you need referrals, I am happy to provide them!

Here are the details of how the tax credit works, according to local accounting firm Petkovsek & Moran, LLP:

“The American Recovery and Reinvestment Act of 2009 or Stimulus Act signed earlier this year extends the tax credits from the 2008 Housing Assistance Act for five more months. This means first-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return. For a qualified home purchase between 1/1/09 and 11/30/09, the maximum credit equals the lesser of either; 10% of the purchase price; or $8,000 ($4,000 if the buyer uses married filing separate status).

The $8,000 and $4,000 credit maximums are up from the $7,500 and $3,750 maximums that applied under the "old-law" rules for 2008 purchases between 4/9/08 and 12/31/08. Since the credit is refundable, it can offset an individual's entire federal income tax liability, including any AMT. Any leftover credit can be collected in cash or applied to the following year's estimated tax payment obligation. For more information and eligibility provisions so please call me for details or see the IRS web site at www.irs.gov/newsroom/article/0,,id=205416,00.html”

Kim’s EcoBroker® Tips

Green Built Home Certification

If you are doing some remodeling, or have done so, check out the Green Built Home Checklist and see if your remodeling qualifies for Green Built Home Certification. I recently listed a home where my clients installed new ENERGY STAR appliances, added insulation, reused some materials on their property and greatly improved the efficiency of their home. It just so happened that when they reviewed the Green Built Home checklist I provided to them, they found that they did, indeed, have enough points to qualify for this certification. What a great way to distinguish their home when marketing it! For the Green Built Home checklists (both new construction and remodels), click here:http://wi-ei.org/greenbuilt/

Water conservation

Help protect the aquifer that supplies Madison’s water and reduce water usage at the same time. The Madison Water Utility is offering a $100 rebate to replace your water guzzling toilet with a High Efficient Toilet (HET), which uses an average of only 1.6 gallons per flush. The program is available to residential customers living in a single family home, condo or four-unit apartment building. Save your receipt and fill out the application form on the City of Madison Water Utility’s web site, www.cityofmadison.com/water/inTheHome/toiletRebate.cfm
For a list of toilets eligible for the rebate go to epa.gov/watersense/pp/find_het.htm

Landscaping

A great way to reduce pollution runoff is by planting a rain garden. A rain garden is a shallow depression in your yard that is filled with native flowering plants and grasses. The garden not only looks great, but also soaks up rainwater and melted snow from your home’s downspouts, driveway or lawn. Water soaks into the soil and replenishes groundwater rather than becoming runoff. Dane county has a special program open to residents and neighborhood associations called Plant Dane! This is a cost-sharing program providing native plants at a reduced rate. For an application and more information on rain gardens, including a native plant list, go to www.myfairlakes.com/PlantDane.aspx. The City of Madison also has information for those interested in rain gardens and has set up a 1,000 Rain Gardens project to promote and inspire other residents to plant these water conserving gardens at www.cityofmadison.com/engineering/stormwater/raingardens/

Clean Sweep

Get rid of your hazardous household chemicals safely through the Dane county Clean Sweep program. This is a free opportunity to safely dispose of paints, pesticides and other hazards at a facility located at 2302 Fish Hatchery Road, on the north end of the Dane County Highway Garage property. It is open every Tuesday, Wednesday, Friday, and Saturday from 7:30 a.m. to 2:00 p.m. through October 31, 2009. For a list of acceptable chemicals go to www.danecountycleansweep.com

A Big Thanks!

I am lucky to have such a supportive community of clients, friends and colleagues. Thank you for your support and your continued referrals!

Have a great summer,

Kim