This report pertains to residential homes on less than 10 acres sold from Sept 12 to Sept 25th as reported by the Lebanon Board of Realtors MLS.

Over the last 2 weeks there were 12 homes sold for a total of 2.1 million. The average price of these homes was almost 176 thousand with the median price at 105K; these homes had an average time on the market of 122 days. There are currently 10 homes listed as under contract in the Lebanon MLS and those homes have an average price of 100,000.

Year to date there have been 199 homes sold, that’s down from last years 247 during the same time frame, the average price is 114 thousand dollars, which is barely down from 07’s 115.5K; the YTD volume of 22.8 million is under last years 28.5 million. Our average time on the market this year has been 140 days, that’s almost the same as last years 141 day average.

As of this morning there were 391 homes with less than 10 acres, listed with the Lebanon MLS compared to 350 last year in the same week. The average asking price is 149k with median asking price of just about 124; these homes have an average time on the market of 138 days.
Once again the US economy has been the hot topic in the news, and over shadowing everything has been, what is referred to as the “700 billion dollar government bailout”. One of the largest mortgage holder in the country, Washington mutual, was scooped up today by giant JP Morgan Chase and it wasn’t even headline news. I have heard lots of comments about the bail out over the last few days, from community members, from colleges, and even this morning from the National Association of Realtors, and it seems to me that there is very little understanding about what this bailout is and what it would mean. There seems to be a perception that the government is going to hand out 700 billion dollars of taxpayer money and get nothing of monetary value in return. I am not an economic expert but I do know this, the bail out is not a charity, regardless of all the details congress is still working out, the bail out is meant to actually purchase assets. These assets are projected to be purchased at around 29 cents on the dollar and over the long run should be liquidated at a profit. To put this into perspective lets just say that John Doe loaned Jane Smith 100,000 to buy a house and after a while Jane wasn’t paying john, so then john couldn’t pay his bills or loan anyone else money. So along comes Uncle Sam and says hey john, I’ll give you 29,000, and when Jane pays up or sells her house that money is mine, actually sounds like a decent deal for Uncle Sam even if the house is only worth 60,000. In the end the money should come back with interest. The intent is to free up struggling lenders capitol so that they can again loan money to business owners, and home buyers in turn re-stimulating the economy. I don’t necessarily think all this is a good idea, but I do understand how it’s supposed to work; in the end I believe we live in country where capitalism will always rule and economic balance is a matter of going through the cycles.

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Usually my report pertains to residential homes on less than 10 acres sold for the as reported by the Lebanon Board of Realtors MLS but over the last week there were no homes sold, and with that I thought it was a good time to share some land sale statistics.
These statistics pertain to raw land over 3 acres sold from the first of the year to yesterday as reported by the Lebanon MLS. There have been 18 land sales over 3 acres reported this year for a total of almost 1.1 million, that’s down from last years 38 sales for 1.6 million during the same period on 07. The average price this year is over 61K, last year in the same time period it was around 44K. The average parcel size this year has been 30 acres, compared to last years 20 acre average. This year’s average of over 2037 per acre is lower than last year’s 2167 average, which is not surprising considering the smaller average parcel size.
One of the most common questions I receive from people is what land is worth in Laclede County and I always explain that there are many variables that determine lands value. Those variables include the properties condition, if it is wooded or pasture, the size of the parcel and its amount of road frontage, it can also be affected it’s proximity to a town or the school district it is in. In looking at a 4 year average for land sales the best way to break it down is by parcel size so here are the averages. Lots sold with less than 3 acres over the last 4 years averaged less than an acre in size and sold for an average of $12,800. On Land sale 3 to 10 acres the average size lot was 5 acres and sold for almost $4400 per acre. The 4 year average for land sold between 10 and 40 acres was just over $1900 per acre with the average size being 30 acres. Farms from 40 to 100 acres sold for an average of under $1400 per acre and had an average parcel size of 71 acres and the 4 year average for large parcels of 100 acres or more is $830 per acres with the average size being 220 acres. Land sales can be a challenge so be sure and consult and expert when it’s time to sell. You should be able to look at comparable sales from you area with similar qualities that will give you a good idea about what your land is worth.

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This report pertains to residential homes on less than 10 acres sold from Aug 15th to Sept 11th as reported by the Lebanon Board of Realtors MLS.

Over the last month there were 12 homes sold for a total of 1.4 million. The average price of these homes was almost 123 thousand with the median price at 114K, these homes had an average time on the market of 153 days. There are currently 11 homes listed as under contract in the Lebanon MLS and those homes have an average price of 105,000.

Year to date there have been 186 homes sold, that’s down from last years 236 during the same time frame, the average price is 110 thousand dollars, which is down from 07’s 114.5K; the YTD volume of 20.5 million is under last years 27 million. Our average time on the market this year has been 142 days, that’s up some from last years 139 day average.

As of this morning there were 392 homes with less than 10 acres, listed with the Lebanon MLS compared to 353 last year in the same week. The average asking price is 150k with median asking price of just about 120; these homes have an average time on the market of 138 days.
What a crazy week for the mortgage industry it has been, with the federal government taking over Fannie Mae and Freddie Mac interest rates on fixed mortgages have plummeted. I have seen fixed rate quotes this week for as low as 5.75. There are lots of opportunities for potential home buyers right now including low rates, bond money on some loans and a $7500 tax credit for first time home buyers. Speaking of the tax credit, many people have heard of the Housing and Economic Recovery Act of 2008 which was passed by the Congress on July 26 and signed by President Bush on July 30, but hardly anyone knows what it means. Here are the highlights of the tax credit, visit my blog for the details. If you purchase a home between Apr 9 2008 and July 1 2009 you may qualify for the credit. A first time home buyer is defined as an individual or couple who has not owned a home in the previous 3 years. Income qualifications are, 75k for single people and 150k for married couples. This tax credit is not a deduction, it is a credit which means that if you owe $1000 on April 15 and qualify for this credit you would not pay the $1000 and would instead receive the difference back, $6500. This tax credit is basically like a 0% loan over a 15 year period and would need to be repaid when the home sells or at 500 per year for 15 years, and if you happen to sell the home in 2 years and only break even, you are not obligated to pay back the credit. Be sure and ask your accountant about all the details regarding this and any tax credit. Don’t miss out on one of the greatest times there has ever been to be a home owner, if you have been thinking about buying, get off the fence and do it.

Prospective first-time home buyers who have been sitting on the fence now have a significant financial incentive to explore the opportunities available in today's housing market.

H.R. 3221, the Housing and Economic Recovery Act of 2008 — which was passed by the Congress on July 26 and signed by President Bush on July 30 — allows first-time home buyers to take a $7,500 tax credit from the purchase of a single-family home, townhome or condominium apartment.

To get the word out to the home-buying public, NAHB has assembled materials that will help association members maximize the impact of this temporary sales incentive.

Among those resources:




NAHB has published a Web site for consumers — www.federalhousingtaxcredit.com. The site includes details and questions and answers on how home buyers can use the credit.

On www.nahb.org/mythbuster, NAHB has posted talking points, print ads, a consumer handout on the "top reasons you shouldn't wait to buy a new home" and a banner ad for Web sites — all geared to alerting home buyers to the availability of the credit.


Any home buyer who has not owned a home during the past three years and is a U.S. citizen who files taxes is eligible to participate in this program. (Some home buyers who are not citizens may also qualify; see #14 in the questions and answers below.)

To qualify, buyers must actually close on the sale of the home on or after April 9, 2008 and before July 1, 2009. The original eligibility period expired in April 2009, but following a major grassroots campaign from NAHB members, the period was extended to enable home builders to include the credit in their sales and marketing next spring and into the early summer — the peak home buying season.

The program does have income limits. Single or head-of-household filers can claim the full $7,500 credit if their adjusted gross income (AGI) is less than $75,000. For married couples filing a joint return, the income limit doubles to $150,000.

Single or head-of-household taxpayers who earn between $75,000 and $95,000 are eligible to receive a partial first-time home buyer tax credit. The same applies to married couples who earn between $150,000 and $170,000.

The credit is not available for single taxpayers whose AGI is greater than $95,000 and married couples with an AGI exceeding $170,000.

A refundable credit means that if a taxpayer pays less than $7,500 in federal income taxes, the government will write them a check for the difference. For example, if $5,000 in federal taxes is owed, the taxpayer would pay nothing and a $2,500 payment would be received from the IRS. If a qualifying home buyer were owed a $1,000 tax refund, they would receive $8,500.

Buyers can take the tax credit on their 2008 or 2009 tax return. Those who close in 2008 take the credit on their 2008 return. Buyers in 2009 have the option of taking the credit on their 2008 or 2009 returns.

The tax-credit program also has payback provisions.

The credit essentially serves as an interest-free loan to be repaid over 15 years. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. If the home owner sold the home, then the remaining credit would be due from the profit of the home sale.

If there is insufficient profit, then the remaining credit payback would be forgiven.

For more information on NAHB tax credit resources, e-mail NAHB Public Affairs or call 800-368-5242 x8061.

Questions and Answers for Consumers

Following are the "Frequently Asked Questions About the First-Time Home Buyer Tax Credit" that appear on NAHB's consumer Web site — www.federalhousingtaxcredit.com.

1. Who is eligible to claim the $7,500 tax credit?

First time-home buyers purchasing any kind of home — new or resale — are eligible for the tax credit.

2. 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 or her spouse. For example, if you have not owned a home in the past three years but your spouse has owned one, neither you nor your spouse qualifies for the first-time home buyer tax credit.

3. What types of homes will qualify for the tax credit?

Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses, and condominiums.

4. Are there income limits to determine who is eligible to take the tax credit?

Yes. Home buyers who file their taxes as single or head-of-household taxpayers can claim the credit if their modified adjusted gross income (MAGI) is less than $75,000. For married taxpayers filing a joint tax return, the MAGI limit is $150,000. The limit is based on the buyer's modified adjusted gross income for the year that the house is purchased, except for certain purchases in 2009.

5. 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, which 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.

6. 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 $7,500 are available for some taxpayers whose MAGI exceeds the phaseout limits. The credit becomes totally unavailable for individual taxpayers with a modified adjusted gross income of more than $95,000 and for married taxpayers filing joint returns with an AGI of more than $170,000.

7. 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 $7,500 by 0.5. The result is $3,750.

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 $7,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,625.

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.

8. Does the credit amount differ based on tax filing status?

No. The credit is in general equal to $7,500 for a qualified home purchase, whether the home buyer files taxes as a single or married taxpayer. However, if a household files its taxes as "married filing separately" (in effect, filing two returns), then the credit of $7,500 is claimed as a $3,750 credit on each of the two returns.

9. Are there any circumstances under which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit?

In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first-time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $75,000, the credit will equal 10% of the purchase price.

10. I heard 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 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 15. Suppose now that taxpayer qualified for the $7,500 home buyer tax credit. As a result, the taxpayer would receive a check for $6,500 ($7,500 minus the $1,000 owed).

11. What is the difference between a tax credit and a tax deduction?

A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 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% tax bracket and owes $7,500 in income taxes. If the taxpayer receives a $7,500 deduction, the taxpayer's tax liability would be reduced by $1,125 (15% of $7,500), or lowered from $7,500 to $6,375.

12. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?

No. The tax credit cannot be combined with the MRB home buyer program.

13. I live in the District of Columbia. Can I claim both the D.C. first-time home buyer credit and this new credit?

No. You can claim only one.

14. I am not a U.S. citizen. Can I claim the tax credit?

Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519 (www.irs.gov/pub/irs-pdf/p519.pdf).

15. Does the credit have to be paid back to the government? If so, what are the payback provisions?

Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.

16. Why must the money be repaid?

The intent of Congress was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first-time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices and will increase home sales. The repayment requirement reduces the impact on the U.S. Treasury and assumes that home buyers will benefit from stabilized and, eventually, rising future housing prices.

17. Because the money must be repaid, isn't the first-time home buyer program really a zero-interest loan rather than a traditional tax credit?

Yes. Because the tax credit must be repaid, it operates like a zero-interest loan. Assuming an interest rate of 7%, that means the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers more than $8,100 in interest payments. The program is called a tax credit because it operates through the tax code and is administered by the IRS. Also like a tax credit, it provides a reduction in tax liability in the year it is claimed.

18. 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 Dec. 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.

19. 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.

"this information was provided by the national home bui

$ 45,000 Lebanon Central Location - 3 bedroom 3 bath 1040 sqft 0.3 acres

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