The Hammond Real Estate Report

North Carolina real estate has seen an upswing in real estate activity thanks to the extension of first-time buyer tax credits by the U.S. federal government.  According to David Bracken’s November 6, 2009, article about credit and the housing market, “About 1.42 million U.S. taxpayers have qualified for the credit through August, including nearly 45,000 in North Carolina, according to the Internal Revenue Service.”  The income tax credit is valid for purchase agreements signed by April 30, and closings final by June 30 and can be applied to individuals with annual incomes up to $125,000 and joint filers with incomes up to $225,000 qualify for the full credit. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.

Another victory for real estate in North Carolina on October 26, 2009, when the RealEstateRama newspaper reported that “foreclosure prevention efforts that have helped more than 1,100 North Carolinians save their homes got a boost earlier this month when the North Carolina Housing Finance Agency was awarded an additional $895,350 of federal funds from the National Foreclosure Mitigation Counseling Program.”  The worthy program has ensured that hundreds of families are kept in their homes and given the resources to refinance their homes.  The news article claims that “funds from the earlier grants are expected to provide counseling for more than 14,000 homeowners by year’s end. Of those who have completed counseling, 1,158 are known to have avoided foreclosure and only 40 are known to have been foreclosed on. The third grant is expected to assist 2,800 homeowners by June 2010.”

North Carolina homes for sale dropped in median price in places like Raleigh and Cary but also rose in price and gained value in several places.  David Ranii of the News Observer reported on November 10, 2009, that “the average sale price of existing homes in Durham rose 3.6 percent in the third quarter compared to a year ago, defying the national trend of declining home prices, according to a survey released today by the National Association of Realtors.”