Revised legislation of the American Recovery and Reinvestment Act regarding Purchases on or after January 1, 2009

Amount of credit: Lesser of 10 percent of cost of home or maximum of $8,000

Eligible Property: Any single-family residence (including condos, townhouses) that will be used as a principal residence.

Refundable: Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.

Income Limit: Yes. Full amount of credit available for individuals with adjusted gross income of no more that $75,000 ($150,000 on a joint return.) Phases out above those caps ($95,000 and $170,000).

First-time Homebuyers Only: Yes. Purchaser (and purchaser's spouse) may not have owned a principal residence in 3 years previous to purchase.

Revenue Bond Financing: Purchasers who utilize revenue bond financing can use credit. Recapture: If home sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.

Termination: December 1, 2009

Effective Date: All revisions are effective as of January 1, 2009.

Richard's Ramblings

Home prices in NOVA nearing bottom, DC has farther to fall.
By Thomas A. Lawler, edited from WSJ 2-13-09

The author, founder of a consulting firm, says, “…The stats suggest that home prices in NOVA, which have fallen considerably after peaking in late 2005/early 2006, may be nearing a bottom.” He noted that “residential home sales in January were up by almost 56% from last January, while active listings were down by over 25%....” He went on to say that, “The sales gain (mainly from “distressed sales) was led by the battered Prince William County area, where sales were up by almost 111%, while the median sales price was off by 41% from last January.

Tax valuations hit this week in the City of Alexandria, and the Beverley Hills list serve was dominated by this news. Some, no doubt will challenage the assessment as still being too high. Maybe. Base on my own research, prices for single family homes in the 22305 zip code for parts of North Ridge showed only a 5% decline in 2008. This once again shows that our neighborhood is a great value and sought after for its closeness to DC and other amenities that it offers.