From the Austin Real Estate Blog: in December, for the fourth month in a row, Austin real estate sales were up over the previous year. The average and median sales price were up 6 percent, and the number of active listings is down 5% from this time last year. With 1373 sales, December was still weaker than October (1783 sales) and November (1542 sales). The market’s strength is probably attributable to the Federal housing tax credit, which will expire. According to the Real Estate Blog, “For buyers the trade off is that later there might be less buyers to
compete with in the market later but interest rates might be higher.
For sellers there is no real trade off. Waiting a few months for higher
interest rates and less buyers is probably far from ideal.”

Parents who want to give their kids a great gift should consider making a down payment on a house.

According to the Internal Revenue Service, a married couple can give gifts of $13,000 each, money or property, without requiring taxes of the giver or receiver. A married couple can give another married couple a total of $52,000 a year, if each member of the giving couple gives $13,000 to each of the receiving couple. This could be a healthy down payment!

Source: The Wall Street Journal, June Fletcher (11/27/2009)

Mark Hall of Vancouver, Washington tells the story of a client who didn’t return her calls when it was critical to stay in touch. This happens more often than you would think. When you’re in the market for a home, it’s important to stay in communication and return calls promptly, especially when you’re in the process of making an offer. You never know who else may be presenting a contract at the same time.

Want to know more about how to be a successful buyer? Check out these tips.

A Move.com survey suggests that “17.7 percent of Americans want to take the plunge and finally become first-time home buyers.” That’s actually a big percentage, more than half the adults who don’t own a home, according to Baltimore Sun’s Real Estate Wonk. 15.7 percent consider buying an investment property a priority.

One driver for homebuyer optimism is the extension of the Home Buyer Tax Credit.

Wondering about the inventory of homes in Austin? At the moment it’s down 9% – you can see statistics about local inventory and prices here.

The Baltimore Sun has a good overview of the homebuyer tax credit, including five tips you’ll want to read, starting with “Don’t procrastinate.”

Getting your search started now will give you a better chance of finding the right house before the credit deadline. When first-time buyers thought the credit would expire Nov. 30, people scrambled to find properties in September and October, said Pat Lashinsky, chief executive of real estate brokerage ZipRealty. In some cases, “there wasn’t inventory that fit people’s needs,” he said.

Another great tip is near the end: “Don’t take shortcuts.”

Don’t forgo any steps take just to make the tax-credit deadline. Make sure the house is a good fit for your needs and get a home inspection, Lashinsky said. Skipping steps could cost you in the long run.

If you’re thinking about pursuing the new $6,500 tax credit that is available to some current homeowners who buy another home, I recommend that you also read USA Today’s overview of “frequently asked questions.”

Three extensions of the tax credit for first-time home buyers have been proposed in the Senate. The hope is that a liberal extension of the amount as well as the length of time in effect will permanently raise the housing market to a sustainable level of activity before it is phased out or time runs out. Hopefully we’ll have something soon, as the current credit ends Nov. 30, the Monday after Thanksgiving. [Link]