Cache Valley Real Estate

GREAT HOME UNDER $155,000.

2009-04-29T11:08:00.002-06:00

We just listed a great new townhome for $154,900. Great location, close to everything, with views of the mountains to the west and its in immaculate condition.

See pictures at www.CacheRealtors.com or call us at 435.757.1107 for more information and directions.

Home Sales Up In February!

2009-03-30T11:56:00.003-06:00

Sales of existing homes rose unexpectedly in February by 5.1%, making up ground from a dismal January report, according to the National Association of Realtors. Sales rose to 4.72 Million units, from 4.49 Million Units, much better than the expected drop to 4.45 Million Units.

According to the report, first-time homebuyers made up half of all purchases, and distressed properties accounted for over 40% of all sales.

Sales were especially strong in the Western U.S., such as Utah, with sales increasing more than 30% over last years numbers.

The national home inventory is at 9.7 months, with Logan, Utah at around 8.3 months.

New Homes for Under $180,000!!!

2009-03-25T13:17:00.001-06:00

Brand New Homes for under $180,000. Pebblestone Subdivision in Logan, Utah has only two homes left. Located just two blocks west of Utah State University, these 3 bedroom, 2 bathroom homes are a steal. They all include a 2 car garage, A/C, and vaulted ceilings. They also qualify for up to $14,000 in federal and state tax credits and grants. Plus the $1000 Buyers Rewards Cash that we offer, see the details and homes at www.CacheRealtors.com.

New Growth Numbers Out

2009-03-24T09:56:00.003-06:00

According to data recently released by the U.S. Census Bureau, the Logan, Utah Metropolitan Area was the 9th fasting growing area in the United States between July 2007 and July 2008 with a growth rate of 3.2% during that period. 4 out of the 10 fasting growing areas were in Utah and Southern Idaho. Most of the growth is attributed to the high birth-rate, low unemployment, and good housing increases drawing outsiders into these areas.

In other good news, Money Magazine recently reported an expected home-appreciation in Logan, Utah for the next two years to be around 14%. Logan also has been named as one of the best places to retire, safest communities, and has been featured on CNBC as a community that is weathering the economic recession exceptionally well.

$6000 Housing Grant Approved

2009-03-23T16:45:00.002-06:00

Utah Gov. John Huntsman signed into law the $6000.00 New Construction Grant for the first 1,600 participants. This is for existing new construction only. Give us a call to find out all the details.

New Construction Grant

2009-03-18T11:02:00.003-06:00

New Home Buyers in Utah can get a $6000.00 grant just for buying a new home. Utah Senate Bill 260, sponsered by Sen. Scott Jenkins, R-Plain City, offers grants of $6000.00 to all those who buy a new home in Utah. The money is set aside from $10 Million from the federal stimulus package and is meant to help the struggling Utah construction industry.

Combined with the federal tax credit of $8000.00, a homebuyer could get $14,000.00 just for buying a new home in Utah.

Call Grey & Andrea Wilson with @Home Realty at 435.757.1107 or visit www.CacheRealtors.com to get more information on Logan and Utah Real Estate. Plus you could qualify for an additional $1000.00, from their Buyers Rewards Program, for a total of $15,000. The state grant is only available to the first 1,600 participants, so the time is now.

Home-Value Insurance Idea Tossed Around

2009-03-13T10:03:00.003-06:00

A new plan to allow homeowners the ability to purchase an insurance policy that guarantees the value of their home has been investigated as a possible solution the the current economic crisis. "If you want to restart home sales, you have to deal with the biggest factor impacting sales today, which is the erosion of home values," said Joe Hanauer, who's chairman of Move Inc., operator of the Realtor.com listings site for the National Association of Realtors.

Stay tuned for more information about this interesting idea.

- Some information taken from www.news-press.com

Logan, Utah Houses Continue to Appreciate

2009-03-10T16:07:00.003-06:00

A highlty respected website, www.HousingPredicter.com, forecasts Logan, Utah homes to appreciate 1.4% in 2009. That makes Logan, Utah one of only 11 communities with annual appreciation in 2009. Don't miss out on a great time to buy a house in Cache Valley.

Buyer's Rewards Program

2009-03-09T12:13:00.005-06:00

Just a quick reminder on our Buyer's Rewards Program. We give $1000 CASH to all buyers at closing. You can use that towards the purchase of your home, to buy a new couch or 42" HDTV, go on a vacation, or just take the cash.

Please see http://www.cacherealtors.com/ for all the details.

Distressed Homeowner: What Are Your Options?

2009-03-06T11:05:00.006-07:00

Most distressed homeowners will have many options to choose from and must consider all the information before making a potentially very important decision on what actions to take involving their home. This information is only a small insight into a much larger process. Please consult the necessary Realtors, attorneys, and accountants before you make a decision.

Most homeowners fit into at least four of these categories, so please get professional help in deciding which one works best for you.

Loan modification: Also called a mortgage modification, this enables the homeowner to negotiate a workout solution with the lender to catch up on late or missed payments and lower the monthly mortgage payment by adjusting the terms of the loan. This is currently one of the best, most available, and most popular options.

Forbearance: Forbearance provides the borrower with a payment plan for catching up on missed payments. The homeowner is typically allowed to pay a few hundred dollars extra each month over the course of 18-24 months to catch up.

Reinstatement: Homeowners may be able to borrow money from relatives who are in a position to do so, to pay any balance that is currently overdue and then pick up on monthly payments as though nothing ever happened. (This is a practical option only for those who have recovered from a temporary financial setback and can now afford the house payment along with any payments required to pay back their relatives.)

Refinancing: Given the fact that credit is still pretty tight right now, this option may not be available. If the homeowner can qualify for a fixed-rate, low-interest loan to pay off a higher interest loan and perhaps even consolidate their debts, refinancing could be one of the best options.

Short re-fi: With a short re-fi, the lender agrees to accept as payment in full less than is required to pay off the balance due on the mortgage, and the homeowner takes out a refinance loan to make that payment in full. The end result is that the homeowner has a new mortgage with a lower balance and lower monthly payments.

Government loan programs: The federal government, through FHA, offers down-payment assistance programs and is developing other programs to enable homeowners to keep their homes. Encourage homeowners to contact their local HUD office to find out what’s currently available.

Bankruptcy: For homeowners who are buried in unsecured debt, including credit card debt, bankruptcy may be the best option. If you know some good bankruptcy attorneys in your area consider teaming up with them to offer your clients this option.

Selling the home: For homeowners who cannot or do not want to keep their homes, selling the home to “get out from under it” may be the best option. This is where you can really help – by listing the home and helping the homeowners find more affordable accommodations.

Short sale: For homeowners who face the prospect of selling the home at a loss, you may be able to negotiate a short sale with the lender on their behalf. With a short sale, the lender agrees to accept as full payment a partial payment of the loan. In most cases, a lender is more likely to go along with the idea if you already have an offer from an interested and qualified buyer.

Selling to an investor: If you know investors in your area who have the cash to purchase properties, you may be able to put the homeowner and investor in touch with one another to work out a win-win deal. Investors are often in a better position to move quickly on a deal, and when you are in a foreclosure situation, time is often of the essence. (Be careful not to get yourself into a conflict-of-interest scenario here.)

Deed in lieu of foreclosure: For homeowners who are unable to make payments (even significantly lower payments) and cannot sell the property and at least break even on the sale, the lender may accept the deed in lieu of foreclosure. The homeowner should hire an attorney, however, to make sure that the deal allows them to walk away totally debt free and prohibits the lender from seeking a deficiency judgment. In some cases, the lender may be willing to pay the homeowner a small amount in exchange for keys and leaving the property “broom clean,” which the homeowner can use to move to more affordable housing.

Redemption: If you do business in a state that allows redemption, the homeowner has the right to buy back the property after the auction by paying the buyer the purchase price along with any qualifying expenses the buyer paid for. Check with a foreclosure attorney in your area or your county’s register of deeds to determine the redemption rights in your state.

Abandoning the home: Walking away is an option, but it is not always the best option, because it can leave some legal strings untied. In some jurisdictions, for example, the lender can sell the house at auction and then pursue a deficiency judgment against the homeowner for the difference between what the house sold for and the balance of the mortgage.

Do nothing: One of the worst options (second only to being victimized by a foreclosure rescue scam) is to do nothing, in which case the homeowners lose their home along with any equity they may have had in it and have to go through the humiliation of being evicted.

Excerpts from article by Ralph Roberts. See the original article in its entirety at: http://realtytimes.com/rtpages/20090223_options.htm

Logan - Best Place to Retire

2009-03-04T14:21:00.004-07:00

Money Magazine selects Logan, Utah as one of the best places to retire... Along with Bert Sperling of BestPlaces.net

Population: 44,599
15-year population growth: 28.6%
Median home price: $205,400
Home price 2-year forecast: 14.3%

This popular stop-off on the way to Yellowstone is for those who enjoy the simple life. Home to Utah State University, Logan boasts a buffet of recreational offerings including water sports at Bear Lake and places to soak in what life was like in the Old West. The historic downtown and Logan Canyon Scenic Byway offer simplicity in all its splendor. Of course, the skiing isn't half-bad either.

See story at:
http://money.cnn.com/galleries/2007/moneymag/0703/gallery.bp_retireyoung_new.moneymag/3.html

$8000 Tax Credit

2009-02-26T15:20:00.005-07:00

Frequently Asked Questions about Home Buyer Tax Credit - www.FederalHousingTaxCredit.com

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

Who is eligible to claim the tax credit?
First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.

What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

Are there any income limits for claiming the tax credit?
The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

What is "modified adjusted gross income"?
Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.

If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phaseout limits.

Can you give me an example of how the partial tax credit is determined?
Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.

How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.

How do I claim the tax credit? Do I need to complete a form or application?
Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.

What types of homes will qualify for the tax credit?
Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

I read that the tax credit is "refundable." What does that mean?
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).

I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.

Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
Yes. The tax credit can be combined with the MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.

Is a tax credit the same as a tax deduction?
No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.

I bought a home in 2008. Do I qualify for this credit?
No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit.

Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.Further, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a downpayment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.

If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.

For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

Logan, Utah Leads the Nation

2009-01-14T16:36:00.003-07:00

Farmers Insurance’s “Most Secure” Communities:
1. Corvallis, Oregon
2. Bismark, North Dakota
3. Logan, Utah

Bureau of Labor Statistics Lowest Unemployment Rates:
1. Bismark, North Dakota
2. Logan, Utah

CQ Press Publisher Lowest “Crime in Metropolitan America”:
1. Logan, Utah

WAC’s Lowest Average Home Price in 2008:
1. Logan, Utah

Federal Housing Finance Agency Statistics:
• Logan: 4.55% home price appreciation in 2008
• Logan: 1.11% home price appreciation in third quarter 2008

Information provided courtesy of:
The Herald Journal
December 14, 2008

Utah Market Facts

2008-11-07T13:24:00.005-07:00

UTAH'S POPULATION IS GROWING

In 2007, Utah had population growth of nearly 84,500 people, the highest single year increase in the state's history.
Utah's population increased 3.2 percent from 2006 to 2007, the highest growth rate Utah has experienced since the early 1990s.
25,000 to 30,000 new households were formed in 2007.
Utah is expected to add another 84,000 people in 2008.
In 2007, the state added more persons due to natural increase than in any previous year in its history, the result of nearly 54,000 births.

UTAH'S GROWTH OUTPACES THE NATION

Utah population growth from 2006-07 was 3.2 percent while U.S. population growth was only 0.9 percent during the same time period.
Utah population growth from 2007-08 is expected to be 3.1 percent. U.S. population growth is only expected to be 0.9 percent for the same period.
According to the U.S. Census Bureau, Utah ranked third among states with a population growth rate of 2.6 percent from 2006 to 2007. The U.S. rate of growth was 1 percent.

NET MIGRATION IS AT RECORD LEVELS

Utah had about 44,000 people move to the state in 2007.
The state is expected to have about 41,000 new residents in 2008.

NEW JOBS ARE ATTRACTING NEW RESIDENTS

From December 2006 to December 2007, about 44,800 new jobs were created in Utah.
Utah job growth in December was up 3.6 percent compared to U.S. job growth of 0.9 percent.
Utah's job growth rate in 2007 was estimated at 4.5 percent, compared to 1.3 percent nationally, and no other state in the nation experienced a growth rate that was higher than 4 percent.
Employment is expected to grow 3.2 percent in 2008.

UTAHNS' INCOMES ARE RISING

Utah wages and incomes have been increasing between 5 and 10 percent over the past few years.
Utah wages are expected to increase nearly 5 percent in 2008.
Utahns' personal incomes are expected to rise almost 8 percent in 2008.
In 2007, Utah's average annual pay growth increased 5.5 percent from 2006, exceeding inflation for the fourth year in a row.
Personal income growth was 9 percent in 2007.

UNEMPLOYMENT IS LOW

The Utah unemployment rate has averaged about 2.7 percent over the past year, down from 2.9 percent in 2006.
The U.S. unemployment rate has averaged about 4.6 percent over the past year.
Utah unemployment in 2008 is expected to remain low at 2.9 percent.

Sources: Utah Population Estimates Committee, Economic data chart from the state of Utah, 2008 Economic Report to the Governor , Utah Population Estimates Committee, Utah Department of Workforce Services

YTD Housing Statistics

2008-11-02T18:03:00.019-07:00

The purpose of this blog is to keep people informed about Cache Valley's real estate market. As most of the locals know, Cache Valley does not always follow the national trend in anything. Because of our different economy here, it can leave people with a distorted view of what really is happening in our valley. Real estate is currently one of the hot topics on the big news stations, but is it as bad as everyone says?

2008 Statistics

	Q1	Q2	Q3
Average sales price:	$195,439	$202,130	$199,470
Avg price per sq/ft:	$84	$85	$83
List vs. sold price:	99%	98%	98%
# of homes sold:	194	277	297
Avg days on market:	63	66	83
# of new listings:	554	661	614

2007 Statistics

	Q1	Q2	Q3
Average sales price:	$198,542	$190,140	$208,274
Avg price per sq/ft:	$80	$82	$84
List vs. sold price:	99%	99%	99%
# of homes sold:	228	360	336
Avg days on market:	71	62	53
# of new listings:	504	634	604