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Around this time of year, we often think about the future and what we’d like to accomplish in the New Year. Clearly defined goals are vital to creating the life that we imagine. Set SMART Goals. Smart goals are Specific and Written, Measurable in Progress and Completion, have an Achievable Outcome, are Realistic in Time and Skill and have a Time frame for their completion. We all should have three sets of goals, short term, midterm and long term goals. Short term goals are goals that are achievable within a brief amount of time, such as the next two weeks. Midterm goals are attainable within a few months while long term goals might take years to achieve. Visualize your Success. Visualization creates a picture in your mind of what your life will look like when you have achieved your goals. Ask yourself the following questions: Why do I want to fulfill this goal? What are the steps you need to take each day to make your goal a reality? What will happen if you don’t achieve your goal? Visualizing your goals and answering these questions will help to build a blueprint for your focus and aspirations. Once you have your big vision of your future, work backwards and create smaller achievable goals to act as milestones along your journey. Write down your goals and post them where you can see them daily. I will be setting my goals for 2012 during the last week of the year. I hope that you will be as well. Call or e-mail me if I can be of any assistance to you setting your goals.

This month’s real estate market update is a year end recap of 2009. In the video, I discuss: new listings, pending sales, closed sales, active listings, median sale price, and average days on market.

Click the play button on the picture below to watch the video.

In next month’s Real Estate Market Update, I will discuss the market absorption report for the towns of Enfield, Suffield, Somers, East Windsor, and Windsor Locks.

If you have questions about any of the information in the market update, please call.

Sincerely,

Brian Banak

In case you didn't hear the news, the Senate and House voted in favor of extending the first-time homebuyer tax credit. The legislation extends, through April 30, an $8,000 first-time homebuyer tax credit and creates a new $6,500 credit for homebuyers who have been in their current residence for the last five years or more.

The Senate unanimously voted Wednesday night (98-0) and the House just passed the bill on Thursday afternoon (403-12).

President Obama is expected to sign the legislation on Friday, November 6.

For more information about legislation, click on the link below: http://www.realtor.org/fedistrk.nsf/files/government_affairs_tax_credit_ext_chart_110409.pdf/$FILE/government_affairs_tax_credit_ext_chart_110409.pdf

It is my personal opinion that the $8,000 should have been extended. It was a mistake to have the orginal credit expire on 11/30, just as the real estate market enters a traditional slow period. However, I don't think that the second credit of $6,500 was necessary. The $8,000 credit seemed to be working quite nicely. Eventually, all of this money will have to be paid back.

The $8,000 first-time home buyer tax credit is bringing the dream of homeownership within reach for many.

As part of its plan to stimulate the U.S. housing market, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers. Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Who Qualifies?

First-time buyers who purchase homes between January 1, 2009 and December 1, 2009. To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos and townhouses.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

The price of the home – the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer’s income – single buyers with incomes up to $75,000 and married couples with incomes up to $150,000 – may receive the maximum tax credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

Has the tax credit been working to stimulate the housing market?

Yes. In many markets the number of sales is up substantially over 2008. Each sale to a first-time buyer often leads to many more sales. The seller who sells a home for $200,000 to a first-time buyer will often “move up” and purchase a home for $300,000. The seller of the $300,000 home is now free to purchase a $400,000 home etc. I was recently at a closing that was number 3 in a chain of 5 sales that started with the first-time home buyer who was taking advantage of the tax credit.

Many professionals get paid with each sale including realtors, attorneys, appraisers, home inspectors, plumbers, painters, electricians etc. In addition, both the State and Town receive conveyance tax revenue with each transaction. Hopefully, Congress will elect to extend the tax credit until sometime in 2010.

You hear bad news about the real estate market everywhere you turn. It's on television, on the internet, on the radio and in print. What you rarely hear is the good news about the real estate market.

Bad news sells newspapers and gets high ratings for television. Therefore, the media has on incentive to report any good news about the market.

Did you know that approximately 30% of all homeowners own their homes free and clear with no mortgage?

The current market affords some great opportunities for first time buyers. There is a large selection of available homes and interest rates are very attractive. In addition, many first time homebuyers may qualify for an $8,000 tax credit.

Many first time buyers are using FHA loans for the financing. An FHA loan requires only a 3.5% down payment. On a $200,000 home, that would be $7,000. With an FHA loan the seller can pay up to 6% of the purchase price in closing costs on behalf of the buyer.

Give me a call if you want to hear more good news about today's real estate market.