Ron Mowery, 's Blog

Kansas City Metropolitan Housing Statistics for October 2009

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Wed, 25 Nov 2009 18:39:20 -0600

OCTOBER HOUSING MARKET STATISTICS

The average new home price this month is 17% lower than one year ago, and the average existing home price is up 8% from one year ago. The average price for combined (new and existing) homes in the region is down 1% over October 2008.

Over the past month, new home sales increased 8%, existing home sales increased 7%, and combined total sales were up 7%. This represents a 15% decrease in new home sales, 31% increase in existing home sales and a combined total sales increase of 25% from one year ago.

New home inventory continues its steady decrease again this month and is again 39% lower than last year. Resale inventory is 3% lower than a month ago and is 9% lower than it was last year. New and existing inventory combined is 3% lower than last month and is 15% lower than last year.

Supply for combined new and existing homes dropped again to a 7.4 month's supply for October. The existing homes supply dropped to 7 months, and new homes supply rose to to 10.9 months. A slight buyer's edge is still present in the existing homes markets, and a considerable buyer's edge is present in the new homes market.

Generally speaking, a 5-6 month supply of homes on the market is a balanced market. When supply exceeds 6 months, the market begins to favor buyers and when the supply is less than 5 months, the market tends to favor sellers.

Source: Kansas City Regional Association of REALTORS and Heartland Multiple Listing Service

MARKET COMMENTARY FOR OCTOBER 2009

MARKET STATISTICS FOR OCTOBER 2009

Should you want market statistics for your neighborhood, contact Ron Mowery, Real Estate Professional at (913) 269-0479 or email him at Ron@JoCoHomesOnline.

Frequently Asked Questions About the Move-Up/Repeat Home Buyer Tax Credit

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Tue, 10 Nov 2009 16:57:33 -0600

The following is from: http://www.federalhousingtaxcredit.com/faq2.php

Frequently Asked Questions
About the Move-Up/Repeat Home Buyer Tax Credit

The Worker, Homeownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).

The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.

Who is eligible to claim the $6,500 tax credit?
What is the definition of a move-up or repeat home buyer?
How is the amount of the tax credit determined?
Are there any income limits for claiming the tax credit?
What is "modified adjusted gross income"?
If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Can you give me an example of how the partial tax credit is determined?
How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008? How is this different than the rules established in early 2009?
How do I claim the tax credit? Do I need to complete a form or application? Are there documentation requirements?
What types of homes will qualify for the tax credit?
I read that the tax credit is "refundable." What does that mean?
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?
Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
I am not a U.S. citizen. Can I claim the tax credit?
Is a tax credit the same as a tax deduction?
Is there a way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 or 2010 tax return?
HUD allows "monetization" of the tax credit. What does that mean?
If I'm qualified for the tax credit and buy a home in 2009 (or 2010), can I apply the tax credit against my 2008 (or 2009) tax return?
For a home purchase in 2009 or 2010, can I choose whether to treat the purchase as occurring in the prior or present year, depending on in which year my credit amount is the largest?

Who is eligible to claim the $6,500 tax credit?
Qualified move-up or repeat home buyers purchasing any kind of home are eligible to claim this credit.
What is the definition of a move-up or repeat home buyer?
The law defines a tax credit qualified move-up home buyer ("long-time resident") as a home owner who has owned and resided in a home for at least five consecutive years of the eight years prior to the purchase date. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.
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 $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit.
Are there any income limits for claiming the tax credit?
Yes. The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) above those limits. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (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 the 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 of foreign-earned income. See IRS Form 5405 for more details.
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 $6,500 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 $235,000. The applicable phaseout to qualify for the tax credit is $225,000, and the couple is $10,000 over this amount. Dividing $10,000 by the phaseout range of $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 $6,500 by 0.5. The result is $3,250.

Here's another example: assume that an individual home buyer has a modified adjusted gross income of $138,000. The buyer's income exceeds $125,000 by $13,000. Dividing $13,000 by the phaseout range of $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $6,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,275.

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? How is this different than the rules established in early 2009?
The previous tax credits applied only to first-time home buyers and were for different amounts of money.
How do I claim the tax credit? Do I need to complete a form or application? Are there documentation requirements?
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 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns).

No other applications 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 repeat home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase. Home buyers must attach a copy of their HUD-1 settlement form (closing statement) to Form 5405 as proof of the completed home purchase.
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, provided the home is purchased for a price less than or equal to $800,000. 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.

It is important to note that you cannot purchase a home from, among other family members, your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse or your spouse's family members. Please consult with your tax advisor for more information. Also see IRS Form 5405.
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 $6,500 home buyer tax credit. As a result, the taxpayer would receive a check for $5,500 ($6,500 minus the $1,000 owed).
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 after November 6, 2009 and on or before April 30, 2010 (or by June 30, 2010, provided a binding sales contract was in force by April 30, 2010).

In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date. Be sure to check with a tax advisor in cases where a HUD-1 form is not used at settlement to be sure you have sufficient documentation to attach to IRS Form 5405.
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 an MRB home buyer program.
I am not a U.S. citizen. Can I claim the tax credit?
Perhaps. Anyone who is not a nonresident alien (as defined by the IRS) and who has owned and resided in a principal residence in the United States for at least five consecutive years of the eight years prior to the purchase date can claim the tax credit if they meet the income limits. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. The IRS provides a definition of "nonresident alien" in IRS Publication 519.
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 $6,500 in income taxes and who receives an $6,500 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 percent tax bracket and owes $6,500 in income taxes. If the taxpayer receives a $6,500 deduction, the taxpayer's tax liability would be reduced by $975 (15 percent of $6,500), or lowered from $6,500 to $5,525.
Is there a way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 or 2010 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 the 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.

In addition, 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. As a result, some state housing finance agencies have introduced programs that provide short-term second mortgage loans that may be used to fund a downpayment. Prospective home buyers should check with their state housing finance agency to see if such a program is available in their community. To date, 18 state agencies have announced tax credit assistance programs, and more are expected to follow suit. The National Council of State Housing Agencies (NCSHA) has compiled a list of such programs, which can be found here.
HUD allows "monetization" of the tax credit. What does that mean?
It means that HUD will allow buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 or 2010 income taxes to receive a refund. These funds may be used for certain downpayment and closing cost expenses.

Under the guidelines announced by HUD, non-profits and FHA-approved lenders are allowed to give home buyers short-term loans. The guidelines also allow government agencies, such as state housing finance agencies, to facilitate home sales by providing longer term loans secured by second mortgages.

Housing finance agencies and other government entities may also issue tax credit loans, which home buyers may use to satisfy the FHA 3.5 percent downpayment requirement.

In addition, approved FHA lenders can purchase a home buyer's anticipated tax credit to pay closing costs and downpayment costs above the 3.5 percent downpayment that is required for FHA-insured homes.

More information about the guidelines is available on the NAHB web site. Read the HUD mortgagee letter (pdf) and an explanation of the FHA Mortgagee Letter on Tax Credit Monetization (pdf). An FAQ about monetization (pdf) is available at the NAHB web site.
If I'm qualified for the tax credit and buy a home in 2009 (or 2010), can I apply the tax credit against my 2008 (or 2009) tax return?
Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 (or 2010) as if the purchase occurred on December 31, 2008 (or if in 2010, December 31, 2009). This means that the previous year's income limit (MAGI) applies and the election accelerates when the credit can be claimed. A benefit of this election is that a home buyer in 2009 or 2010 will know their prior year 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 prior year tax return, but who have already submitted their tax return to the IRS, may file an amended return claiming the tax credit using Form 1040X. You should consult with a tax professional to determine how to arrange this.
For a home purchase in 2009 or 2010, can I choose whether to treat the purchase as occurring in the prior or present year, 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 the present year and a larger credit would be available using the prior year MAGI amounts, then you can choose the year that yields the largest credit amount.

Kansas City Metropolitan Housing Statistics for September 2009

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Mon, 02 Nov 2009 12:54:28 -0600

SEPTEMBER HOUSING MARKET STATISTICS

The average new home price this month is 2% lower than one year ago, and the average existing home price is up 5% from one year ago. The average price for combined (new and existing) homes in the region is up 1% over September 2008.

Over the past month, new home sales increased 6%, existing home sales increased 1%, and combined total sales were up 1%. This represents a combined total sales decrease of 2% from one year ago.

New home inventory continues its steady decrease again this month and is 39% lower than last year. Resale inventory is 3% lower than a month ago and is 11% lower than it was last year. New and existing inventory combined is 3% lower than last month and is 17% lower than last year.

Supply for combined new and existing homes dropped to a 7.7 month's supply for September. The existing homes supply dropped to 7.4 months, and new homes supply dropped to 10.5 months. A slight buyer's edge is still present in the existing homes markets, and a considerable buyer's edge is present in the new homes market.

Source: Kansas City Regional Association of REALTORS and Heartland Multiple Listing Service

MARKET COMMENTARY FOR SEPTEMBER 2009

MARKET STATISTICS FOR SEPTEMBER 2009

Should you want market statistics for your neighborhood, contact Ron Mowery, Real Estate Professional at (913) 269-0479 or email him at Ron@JoCoHomesOnline.

Kansas City Metropolitan Housing Statistics for August 2009

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Wed, 23 Sep 2009 02:07:57 -0500

AUGUST HOUSING MARKET STATISTICS

The average new home price this month is 2% higher than one year ago, and the average existing home price this month is almost the same as one year ago. The average price for combined (new and existing) homes in the region is down 4% over August 2008.

New home sales decreased 29% over the past month, which represents a 42% decrease from one year ago. Existing home sales also decreased for the first time in six months from one year ago, and they were down 14% from last month.

New home inventory continues its steady decrease again this month and is 36% lower than last year. Resale inventory is about the same compared to a month ago and is 10% lower than it was last year. New and existing inventory combined is slighly lower than last month and is 15% lower than last year.

Supply in the region showed no change over the past month. Supply for combined new and existing homes held steady at 8 month's supply for August. The existing homes supply remained at 11.2 months and existing homes supply remained at 7.6 months A slight buyer's edge is still present in the existing homes markets, and a considerable buyer's edge is present in the new homes market.

Source: Kansas City Regional Association of REALTORS and Heartland Multiple Listing Service

MARKET COMMENTARY FOR AUGUST 2009

MARKET STATISTICS FOR AUGUST 2009

Should you want market statistics for your neighborhood, contact Ron Mowery, Real Estate Professional at (913) 269-0479 or email him at Ron@JoCoHomesOnline.

11505 W. 113th St. Overland Park KS 66215

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Mon, 31 Aug 2009 19:02:26 -0500

NEWLY UPDATED TOWNHOME NEAR JCCC
2 MASTER BEDROOMS + BONUS LOFT

Welcome home to 11505 W. 113th Street in the College Park Villas community in Overland Park.

This newly updated townhome is located near JCCC and is a spacious home with two master suites and a loft for an office/study.

The great room showcases a wonderful fireplace and new carpet, and there are beautiful wood floors in the dining, kitchen and halls. New carpet is also found on the stairs and 2nd floor.

The kitchen opens to the deck overlooking the treed lot.

There is a large main floor master bedroom, bath and laundry, and the private 2nd floor master suite features a vaulted ceiling.

The large rec room is located in the lower level finished basement and includes a wet bar and half bath.

For more information on this home, you can call Ron at 913.269.0479 or by email at Ron@JoCoHomesOnline.com. You can view a tour of the home by clicking on 11505 W. 113th St. Overland Park KS 66215. You can view this home and other homes at www.JoCoHomesOnline.com.

Kansas City Metropolitan Housing Statistics For July 2009

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Tue, 25 Aug 2009 16:47:11 -0500

JULY HOUSING MARKET STATISTICS

The average new home price this month is 2% higher than one year ago, and the average existing home price this month is almost the same as one year ago.

The average price for combined (new and existing) homes in the region is down 1% over July 2008.

Both new and existing home sales increased for the sixth month in a row.

New home sales increased 4% over the past month and are up 85% since January. This represents an 18% decrease from one year ago.

Existing home sales increased 4% over last month and are up 134% since January. This represents a 3% increase from one year ago.

New home inventory continues its steady decrease again this month and is 34% lower than last year. Resale inventory is 1% lower than a month ago and is 12% lower than it was last year. New and existing inventory combined is slighly lower than last month and is 17% lower than last year.

Supply in the region showed little change over the past month. Supply for combined new and existing homes showed an 8 month's supply for July compared to 8.1 in June. The existing homes supply dropped slightly to 7.6 months from 7.7 in June, and the new homes supply dropped from 11.5 in June to 11.2 this month. A buyer's edge is still present in both the new and existing home markets.

Source: Kansas City Regional Association of REALTORS and Heartland Multiple Listing Service

MARKET COMMENTARY FOR JULY 2009

MARKET STATISTICS FOR JULY 2009

Should you want market statistics for your neighborhood, contact Ron Mowery, Real Estate Professional at (913) 269-0479 or email him at Ron@JoCoHomesOnline.

10031 Lamar Ave. Overland Park KS 66207

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Wed, 19 Aug 2009 18:32:32 -0500

Move-In Condition!

Welcome home to 10031 Lamar Avenue in the Nall Hills community of Overland Park. This 4 bedroom, 2.5 bath home is in move-in condition.

Enter the home and be greeted by wood floors in the entry, which continue to the living room, dining/breakfast area, stairs, hallway and all 2nd floor bedrooms.

The cheery kitchen features all new cabinets and appliances, including a double oven, built-in microwave, dishwasher and smooth surface cooktop, an eating bar, ceramic tile flooring and backsplash. The dining/breakfast room offers a sliding glass door to the large deck, with stairs leading to the professionally landscaped patio and private, treed backyard.

The main level formal living room features wood floors, while the open family room on the lower level showcases daylite windows and a wood burning fireplace. The finished basement also offers a large rec room, 4th bedroom, half bath and walk-out to the back patio.

The master bedroom is located on the upper level and features wood floors and a private master bath with tiled shower. Bedrooms 2 and 3 are also located upstairs, feature the wood floors and share a full bath with shower/tub combo. All bedrooms have refreshing ceiling fans.

Additional updates include the new driveway, paint, HVAC system and updated bathrooms with tile floors in the main hall bath and master bath.

For more information on this home, you can call Ron at 913.269.0479 or by email at Ron@JoCoHomesOnline.com. You can view a tour of the home by clicking on 10031 Lamar Ave Overland Park Kansas 66207. You can view this home and other homes at www.JoCoHomesOnline.com.

14404 Ballentine Street, Overland Park Kansas

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Fri, 14 Aug 2009 17:03:54 -0500

Desirable Oxford Mills at the Lake

Welcome home to 14404 Ballentine Street in the desirable Oxford Mills community in Overland Park.

This spacious 4 bedroom, 3.5 bath home is located on a cul-de-sac and offers 3,338 square feet of living space. Wood floors lead you through the foyer to the great room, featuring a see-through fireplace to the hearth room. The open kitchen plan features a large island, pantry, Corian countertops, breakfast area and cozy hearth for family gatherings.

The large master suite is gorgeous, showcasing a see-through fireplace between the bedroom and the luxurious master bath and an elegant ceiling treatment. The spacious master bath features a whirlpool tub, separate shower, dual vanities, and the double-sided fireplace. All additional secondary bedrooms are also large.

Community amenities include a swimming pool, and Oxford Mills Lake is nearby.

For more information on this home, you can call Ron at 913.269.0479 or by email at Ron@JoCoHomesOnline.com. You can view a tour of the home by clicking on 14404 Ballentine Street Overland Park Kansas 66221. You can view this home and other homes at www.JoCoHomesOnline.com.

9345 W. 125th Street, Overland Park Kansas

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Wed, 12 Aug 2009 19:37:05 -0500

Beautifully Maintained
in Desirable Hampton Park

Welcome home to 9345 W. 125th Street in the desirable Hampton Park community of Overland Park.

This one-owner, 1.5 story, 4 bedroom, 3.5 bath home is beautifully maintained. Immediately upon entering you will be impressed with the tall foyer with hardwood floors, which lead you to the gorgeous family room. The family room features 2-story cathedral ceilings, fireplace, abundant windows and hardwood floors.

The large kitchen with abundant cabinets is open to the dining/breakfast area. From the dining area, walk out the glass panel door to your deck overlooking the private, fenced backyard with mature foliage and gardens.

The main level master bedroom is tranquil and offers large windows that look out to the private backyard and its beautiful gardens, as well as a vaulted ceiling, walk-in closet, ceiling fan and private bath. The master bath offers a corner soaking garden tub, separate shower and dual vanity.

Main floor offers an additional bedroom with bath. Second story offers a beautiful loft overlooking the main floor and two additional bedrooms sharing the 3rd full bath.

Downstairs you will find the finished media room with built ins and large office, den or craft room.

All this and it's located just one minute away from Kensington Park, offering 12 acres of recreational fun with a walking trail, two tennis courts, a picnic shelter and playground.

For more information on this home, you can call Ron at 913.269.0479 or by email at Ron@JoCoHomesOnline.com You can view a tour of the home by clicking on 9345 W. 125th Street Overland Park Kansas 66213. You can view this home and other homes at www.JoCoHomesOnline.com

14301 Wedd Street, Overland Park Kansas

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Tue, 04 Aug 2009 19:57:27 -0500

DROP DEAD GORGEOUS INSIDE & OUT
Brookwood Estates

Welcome home to 14301 Wedd Street in the Brookwood Estates community of Overland Park. This exceptional 4 bedroom, 3.5 bath home located on a quiet cul-de-sac is perfect for relaxing or entertaining.

Enjoy outdoor living on the patio with pergola, large built-in grill, outdoor fireplace, private hot tub, plenty of seating and professional landscaping with built-in sprinkler system.

Enter this gorgeous 3,529 square foot home and you'll love the kitchen with hardwood floors, stainless steel appliances, granite countertops, abundant cabinetry with quality accents and moldings, breakfast area, kitchen island and pantry. Hardwood floors continue in the formal dining room and the vaulted hearth room, which features a fireplace framed in detailed woodwork. The separate family room showcases a second fireplace. In addition, you'll find the office conveniently located on the main floor.

Up the split staircase you'll find the four bedrooms, including the master suite with sitting room, walk-in closet, tray ceiling and private bath with corner garden tub, separate shower and large vanity. The three secondary bedrooms also include walk-in closets.

Additional features include the laundry room with built-ins and ceramic tiles, 3-car attached side entry garage, full basement with bath stub, and plenty of community amenities, including a pool, tennis courts, sand volleyball court, play area and more.

For more information on this home, you can call Ron at 913.269.0479 or by email at Ron@JoCoHomesOnline.com You can view a tour of the home by clicking on 14301 Wedd Street Overland Park Kansas 66221. You can view this home and other homes at www.JoCoHomesOnline.com

Kansas City Metropolitan Housing Statistics For June 2009

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Wed, 29 Jul 2009 15:36:14 -0500

JUNE HOUSING MARKET STATISTICS

The average new home price this month is 4% higher than one year ago, and the average existing home price this month was down 3% from one year ago.

The average price for combined (new and existing) homes in the region is down 4% over June 2008.

New home sales increased 10% over the past month and are up 76% since January. This represents a 26% decrease from one year ago.

Existing home sales increased 17% over last month and are up 124% since January. This represents a 2% increase from one year ago.

New home inventory continues its steady decrease again this month and is 34% lower than last year. Resale inventory is slightly lower than a month ago and is 13% lower than it was last year. New and existing inventory combined is slighly lower than last month and is 17% lower than last year.

Supply in the region showed little change over the past month. Supply for combined new and existing homes showed an 8.1 month's supply for June compared to 7.3 in May. The existing home supply rose slightly to 7.7 months from 6.8 in May, and the new homes supply dropped from 11.6 in May to 11.5 this month. A buyer's edge is still present in both the new and existing home markets.

Source: Kansas City Regional Association of REALTORS and Heartland Multiple Listing Service

MARKET COMMENTARY FOR JUNE 2009

MARKET STATISTICS FOR JUNE 2009

Should you want market statistics for your neighborhood, contact Ron Mowery, Real Estate Professional at (913) 269-0479 or email him at Ron@JoCoHomesOnline.

Kansas City Metropolitan Housing Statistics For May 2009

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Fri, 10 Jul 2009 13:48:03 -0500

MAY HOUSING MARKET STATISTICS

Combined (new and existing) home sales in the region were up 17% over last month, which represents an 18% decline from May 2008. Combined home prices decreased 6% over this time last year.

New home sales rose 20% over last month, a 35% decrease from one year ago.

Existing home sales saw a 16% increase over last month, down 15% from May 2008.

New home inventory continues its steady decrease again this month and is 35% lower than a year ago. Resale inventory is 12% lower than last year. Supply in the region showed a little change over the last month. Supply for combined new and existing homes showed a 7.3 month's supply for May, compared to 8.0 in April. The existing home supply fell to 6.8 months from 7.5 in April, and the new homes supply dropped from 11.8 in April to 11.6 this month. A buyer's edge is still present in both the new and existing home markets.

Source: Kansas City Regional Association of REALTORS and Heartland Multiple Listing Service

MARKET COMMENTARY FOR MAY 2009

MARKET STATISTICS FOR MAY 2009

Should you want market statistics for your neighborhood, contact Ron Mowery, Real Estate Professional at (913) 269-0479 or email him at Ron@JoCoHomesOnline.

12806 W. 71st St., Shawnee, Kansas

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Fri, 12 Jun 2009 15:53:25 -0500

Spacious Ranch with Tons of Room to Relax or Play!

Welcome home to 12806 W. 71st Street in the Windsor Community of Shawnee. This spacious brick ranch features 2480 square feet of living space, including 3+ bedrooms, 2.5 baths, 2 bonus rooms, great room, formal dining room, kitchen, breakfast room and a large family rec room with wet bar.

As you enter this home, the formal dining room with hardwood floors, vaulted ceiling treatment and chair railing is to your left. Continue to the great room, showcasing a floor-to-ceiling brick hearth fireplace, new carpet and vaulted cathedral ceiling with exposed beam accents.

The spacious kitchen features a breakfast area with bay window, pantry, built-in desk, tile backspash and all-white appliances, including the refrigerator, range, built-in microwave, dishwasher and disposal. Just off the kitchen is the convenient main-level laundry room, which includes the washer and dryer.

The master bedroom features a vaulted ceiling treatment and private bath with double vanity and shower. The two secondary bedrooms are located on the main level and share a full hall bath.

Downstairs you'll find a spacious family rec room with wood burning stove and wet bar. Two possible (non conforming) bedrooms/bonus rooms are also located on this level.

Outside, relax on the patio overlooking the grassy, fenced backyard. The yard also features an inground sprinkler system for your convenience.

Additional features include new carpet, new paint, newer roof, newer windows, attached 2-car side entry garage with automatic opener, and central heating and cooling.

All this plus it's just down the street from Listowel Park, a great community park with sports fields, gazebo, picnic benches, playground, swings, roller hockey courts, tennis courts and walking trails. This is a terrific family home with lots of space to relax and play.

For more information on this home, you can call Ron at 913.269.0479 or by email at Ron@JoCoHomesOnline.com You can view a tour of the home by clicking on 12806 W. 71st Street Shawnee Kansas 66216. You can view this home and other homes at www.JoCoHomesOnline.com

9717 Sunset Circle, Lenexa, KS

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Tue, 09 Jun 2009 13:55:51 -0500

A Perfect 10 Overlooking Falcon Ridge's 11th Green

This reverse story and a half is perfect for the empty nester or family with older children. Located in prestigious Falcon Ridge Estates, this home sits on almost one acre.

From the moment you enter this home, you will be drawn to its views. Whether you are in the master bedroom, the great room, hearth room, covered porch or walk-out basement, you will see the trees, lake and golf course.

As you enter the home, you will immediately notice every attention to detail. The open foyer leads you past the formal dining room to the relaxing great room. Here you will find a see-through fireplace covered with beautiful stone. The large windows provide a great view to the back and let in an abundance of light.

As you enter the kitchen, the beautiful wood floors transition to tile. The kitchen features beautiful stained cabinets with top-of-the-line stainless steel appliances, a walk-in pantry and granite countertops. Off the kitchen is the spacious breakfast area with its own fireplace open to the hearth room. The covered, screened in porch off the kitchen has a built-in fireplace for convenient outdoor living. There are four fireplaces in this gorgeous home!

The main floor hosts a master suite with a sitting room and fireplace. Master bath features tile floors, a whirlpool tub, European shower and his-and-hers walk-in closets. The guest room has its own bath.

Down the stairs, you will find a mid-level study with an 18 foot ceiling and gas fireplace surrounded by beautiful stone work.

As you finish walking down stairs, you will find a media room, rec room with another fireplace, a large bar with granite countertops, a workout room and two additional bedrooms, each with their own baths.

Walk out the basement to the in-ground pool protected by trees overlooking the lake next to the 11th green and 12th tee box of Falcon Ridge Golf course. Perfect for enjoying a mid-afternoon swim or an evening on the patio.

For more information on this home, you can call Ron at 913.269.0479 or by email at Ron@JoCoHomesOnline.com You can view a tour of the home by clicking on 9717 Sunset Circle, Lenexa, Kansas, 66220. You can view this home and other homes at www.JoCoHomesOnline.com

14340 Mackey St., Overland Park, KS 66223

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Tue, 28 Apr 2009 15:11:41 -0500

Come Home to Comfort!

Welcome home to 14340 Mackey Street in the Village of Kensington community in Overland Park.

This charming 5 bedroom home offers an optional 6th bedroom in the finished basement, along with 4.5 baths and almost 4,000 square feet of living space. Located on a desirable cul-de-sac lot, enjoy quiet and relaxing surroundings.

The large entry features hardwoods leading you past the formal dining and living rooms. The family room, with an elegant fireplace and built-ins, is open to the breakfast room and kitchen, which features granite countertops, an island, stainless steel appliances and a new stove and dishwasher. The formal dining room is graced with rich colors, crown moulding and wainscoting.

Upstairs you'll find 5 bedrooms, including the master suite with an alcove sitting area, lighted ceiling fan, tray ceiling and private bath with jetted tub, beautiful stained glass window, separate oversized shower and dual vanity. Bedrooms 2 and 3 feature wood floors.

Downstairs, relax or play in the walk-out finished basement with an entertainment/rec room, door to the outside patio, full bath and an optional 6th bedroom. Outside, you'll love the deck overlooking the fenced backyard. This home is great for entertaining!

If you would like more details on this home, check out the virtual tour and slide show at 14340 Mackey Street Overland Park Kansas or call Ron Mowery at (913) 269-0479 or email him at Ron@JoCoHomesOnline.com. You can view this home or search for all homes on the Kansas City Multiple Listing Service by going to www.JoCoHomesOnline.com.

5821 Woodstock Street, Shawnee Kansas 66218

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Thu, 19 Feb 2009 17:39:36 -0600

Better Than New Shawnee 2 Story

Welcome Home. The 4 bedroom 4 1/2 bath home has ever thing you are looking for. From the moment you walk in, you will see the open floor plan. The striking dining room with plantation shutters just invite you to dine. The kitchen with it's large center island is the hub of the home. Enjoy a cozy fire in the hearth room while dad is making dinner or watch a move in the family room while popping some popcorn. The home is full of amenities like current paint colors, lighting choices, stainless steel appliances and on and on.

The second floor offers a large master bedroom with a sitting room and walk in closet. The master bath has a double vanity and separate shower and tubs. The large guest room has its own full bath and a sitting room. Bedrooms 3 and 4 are large and share a bath between them. The basement is completely finished with room for a pool table, theater or rec area and fully bar. Belly up! The basement is a full walkout to a patio. The home has a large deck off the kitchen, perfect for enjoying the evening shade on the east side of the home. The home offers a sprinkler system and 3 car garage. Everything you could ask for.

If you would like more details on this home, check out the virtual tour at 5821 Woodstock St., Shawnee Kansasor call Ron Mowery at (913) 269-0479 or email him at Ron@JoCoHomesOnline.com. You can view this home or search for all homes on the Kansas City Multiple Listing Service by going to www.JoCoHomesOnline.com

8001 W. 148th Street, Overland Park Kansas

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Thu, 19 Feb 2009 16:16:50 -0600

Overland Park Best Buy

This is a wonderful Atrium Split Level home located in South Overland Park in the award winning Blue Valley School District.

The home has 4 bedrooms and 2 1/2 baths. It is impressively decorated and has many updates such as newer roof, newer interior paint and carpet, tile in the kitchen and all 3 baths. It has two living areas, the living room on the main floor and a cozy family room downstairs with a fireplace and built in book shelves. The kitchen has tons of cabinets including a pantry and the seller is leaving the refrigerator. The master bedroom is large with a vaulted ceiling and walk in closet. The master bath has double vanity, separate tub and shower. The home sits on the end of the cul-de-sac on almost an 1/2 acre lot.

For more information on this home, you can call Ron at 913.269.0479 or by email at Ron@JoCoHomesOnline.com You can view a tour of the home by clicking on 8001 W. 148th Street Overland Park Kansas 66223. You can view this home and other homes at www.JoCoHomesOnline.com

Kansas City Metropolitan Housing Statistics For January 2009

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Thu, 19 Feb 2009 11:03:17 -0600

JANUARY HOUSING MARKET STATISTICS

Home sales in the region were down 32% over last month and down 22 % from January 2008. Combined home prices decreased an average of 17% over last year.

New home sales saw a 33% decrease over last month with a similar 35% decrease over sales 1 year ago. Average prices of new homes rose 7% to $306,927 from $286,162 1 year ago.

Existing home sales were down in January 32% over last month and 22% from one year ago. Existing home prices is 21% lower than January 2008.

We continue to see inventories shrink in new homes, but existing properties inventory increased 3% over last month with a decline of 9% over January of 2008. With the down turn in sales, we saw new home inventories increase from 15.2 months all the way to 22.3 months in January, the highest amount in the last 12 months. Existing home inventories also increased in January to 13.2 months from 8.8 months last month. Clearly the buyer still has the edge.

Source: Kansas City Regional Association of REALTORS and Heartland Multiple Listing Service

MARKET COMMENTARY FOR JANUARY 2009

MARKET STATISTICS FOR JANUARY 2009

Should you want market statistics for your neighborhood, contact Ron Mowery, Real Estate Professional at (913) 269-0479 or email him at Ron@JoCoHomesOnline.com

Is The Real Estate Market Bottoming Out?

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Mon, 09 Feb 2009 21:29:43 -0600

There was a recent article in Barons in the Wealth Watch section, titled Real Estate Beckons in which the article talked about millionaires who have gotten burned in the stock market are starting to show interest in real estate investments. It stated that 20% of high-net worth investors consider real estate a good investment and plan to buy more in the futre, says Spectrum Group, a Chicago-based market research and consulting firm specializing in the affluent market.

Most recently we got news that home sales rebounded 6.5% in December and the latest Pending Home Sales Index was up 6.3% due to 13% gains in the Midwest and South. Pendings are signed contracts that are expected to close in the next 60-90 days. Home inventories nationwide dropped nearly 18% last month to the lowest level since May 2007.

Dr. Lawrence Yun, National Association of Realtors, attributed the upward movement to "buyers responding to lower home prices and interest rates" that have improved the affordability equation to its most affordable level in 39 years. Do you think this is a blip and things will continue to get worse or do you think after three years of declines, we are starting to see some stabilization in the residential real estate market?

Ron Mowery is a Real Estate Professional in Overland Park, Kansas. He can be reached by email at Ron@JoCoHomesOnline.com or 913-825-4025. You can visit his website at www.JoCoHomesOnline.com

Keller Williams Bucks National Business Trends

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Mon, 02 Feb 2009 14:14:04 -0600

Keller Williams Realty Bucks National Business Trends During the Toughest Real Estate Market on Record

Company celebrates 25 years as it outpaces market through its financial model

AUSTIN, TEXAS (January 27, 2009) - Bailout. Credit crunch. Foreclosure. Despite these words permeating the headlines and airwaves, there are companies out there moving forward - even in real estate. Keller Williams® Realty Inc., the fourth largest real estate company in North America, announced today that it outpaced the market in 2008, while remaining free of debt, and gave back more than $30 million in profits to its agents.

"Our strategy is no secret. We faithfully follow the sound financial model of leading with revenue - the same model our market centers follow," said Mark Willis, CEO of Keller Williams Realty Inc. "As we watch companies throughout the country take on billions of dollars of debt, we are proud to say that our company has not one dollar of financing debt and we remain strong and financially sound. It is our joy to be able to give back to our agents during these times."

Despite pervasive downward trends in the real estate industry, Keller Williams Realty continues to outperform the industry. For the first 11 months of 2008, existing home sales for the United States fell 17 percent when compared to the same period the year before. By comparison, Keller Williams Realty is poised to outdo those numbers by 10 percentage points, and in addition, the company experienced a much smaller contraction in its agent base compared to the National Association of REALTORS®, who saw a 10 percent decline in membership.

"Keller Williams was founded 25 years ago during one of the toughest markets on record - when interest rates were higher than 18 percent. We continue to urge our agents to zero in on lead generation and reducing expenses so they can thrive during this market," said Mary Tennant, president and COO of Keller Williams Realty Inc. "We admire our agents' spirit, tenacity, and dedication to their businesses. They just keep powering forward."

Throughout 2008 Keller Williams Realty launched new products and services specifically to boost its agents' businesses, including two new books: Your First Home: The Proven Path to Home Ownership for first-time home buyers, and SHIFT: How Top Real Estate Agents Tackle Tough Times. Both books are written by Gary Keller, co-founder and chairman of the board of Keller Williams Realty, who also authored national best sellers The Millionaire Real Estate Agent and The Millionaire Real Estate Investor.

Additionally, Keller, co-author Dave Jenks and trainer and coach Tony DiCello hit the road to teach the 12 tactics laid out in SHIFT, drawing more than 20,000 attendees in 29 cities. The company also continued to provide agents support through Operation Heart to Heart 2, a training initiative designed to help agents and market centers deal with today's market.

About Keller Williams Realty Inc.:

Founded in 1983, Keller Williams Realty Inc. is the fourth-largest real estate franchise operation in North America, with more than 690 offices and 70,000 associates in the United States and Canada. The company, which began franchising in 1990, has an agent-centric culture that emphasizes access to leading-edge education and promotes an economic model that rewards associates as stakeholders and partners. For more information, visit Keller Williams Realty online at (www.kw.com).

Should you have any questions regarding this article or Keller Williams, please contact Ron Mowery, Real Estate Professional with Keller Williams Realty Partners in Overland Park, Kansas at (913) 269-0479 or by email at Ron@JoCoHomesOnline.com or visit his website at JoCoHomesOnline.com

Kansas City Metropolitan Housing Statistics For December 2008

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Tue, 27 Jan 2009 10:30:54 -0600

DECEMBER HOUSING MARKET STATISTICS

Home sales in the region were up 18% over last month but down 5% from December of 2007. Combined home prices decreased an average of 14% over last year.

New home sales saw a 30% increase over last month, but a whopping 39% decrease over sales 1 year ago. Average prices stayed mostly steady with only a 1% decrease from last December.

Existing home sales were up in December 17% over last month and actually were up 3% over the same time last year. Prices fell 11% over the previous year.

We continue to see inventories shrink in both new and existing properties. With the up tick in sales, we saw our months of supply drop from 11.2 months, all the way down to 8.8 months. New homes were still high with 15.2 months while existing home inventories were down to 8.8 months.

Source: Kansas City Regional Association of REALTORS and Heartland Multiple Listing Service

MARKET COMMENTARY FOR DECEMBER 2008

MARKET STATISTICS FOR DECEMBER 2008

Should you want market statistics for your neighborhood, contact Ron Mowery Real Estate Professional at (913) 269-0479 or email him at Ron@JoCoHomesOnline.com

Kansas City Metropolitan Housing Statistics For July

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Mon, 27 Oct 2008 13:37:38 -0500

JULY HOUSING MARKET STATISTICS

New Home Sales were down 40% from 1 year ago, and down 6% over the past month. However, the average price is 2% higher. New homes represent approximately 13% of overall home sales in the KC metro area.

Existing Home Sales were down 4% from 1 year ago, but up 3% from last month. Average Prices were lower by 8% from one year ago.

New Home inventory decreased slightly this month with 3,766 homes in inventory compared to 3,910 new homes on the market last month. The good news is the new home inventory for the region is 24% lower than it was a year ago at this time when there were 4,937 new homes on the market. Existing home inventory is down 1% from a month ago and 4% from a year ago. New and existing home inventories are down 8% over past year.

Supply in the Region has been steadily decreasing since January. Supply for combined new and existing homes decreased from an 7.4 months supply last month to 7.1 months supply this month. The existing home supply also decreased from 6.8 months in June to 6.5 months in July; and the new homes supply increased over the past month from 11.5 months of supply in June to 11.8 months supply in July. Even though there were small changes, we are still experiencing a buyer's edge in both the new home market and in the existing home market.

Generally speaking, a 5-6 month supply of homes on the market equates to a "balanced" market. When the supply exceeds 6 months, the market begins to favor buyers, and when the supply is less than 5 months the market tends to favor sellers.

Source: Kansas City Regional Association of REALTORS® and Heartland Multiple Listing Service

MARKET COMMENTARY FOR JULY 2008

MARKET STATISTICS FOR JULY 2008

Should you want market statistics for your neighborhood contact Ron Mowery (913) 269-0479 or Ron@JoCoHomesOnline.com

H.R. 3221 TAX CREDIT OR INTEREST FREE LOAN ???

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Tue, 29 Jul 2008 17:17:52 -0500

The recent housing bill, H.R. 3221, the Housing and Economic Recovery Act of 2008 passed by Congress is a bit confusing. It is intended to spur home ownership while giving 1st time homebuyers a tax credit for purchasing a home. Below I have copied the information needed to try and sort out who qualifies and for how much. The caveat to the bill is that is initially a tax credit to be paid back interest free over 15 years or upon the sale of your home. If you sell your home and don't have enough equity to repay the loan, it is forgiven.

Builders Can Use New Tax Credit to Help Spur Home Sales

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 has just been passed by the Congress and now is on its way to President Bush for his signature - allows first-time home buyers to take a $7,500 tax credit from the purchase of a single-family home, townhome or condominium apartment.

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 $8,750.

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.

Questions and Answers for Consumers

Following are the "Frequently Asked Questions about the First-Time Home Buyer Tax Credit" that will appear on NAHB's consumer Web site (www.federalhousingtaxcredit.com). The site will become active as soon as the housing legislation is signed into law.

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.

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 phase-out 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 phase-out 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 phase-out 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.

I would like to hear what your thoughts are on the proposed legislation that is to be signed by President Bush.

If you would like to see more information like this, go to my website at www.JoCoHomesOnline.com or contact me directly at (913) 269-0479 or email me Ron@JoCoHomesOnline.com

Ron Mowery is a licensed real estate agent in the State of Kansas, specializing in residential real estate sales in Johnson County and surrounding areas.

Kansas City Metropolitan Housing Statistics For June

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Wed, 23 Jul 2008 10:54:52 -0500

New Homes Sales

New home sales this month of 339 represents a 45% decrease from one year ago when there were 611 new home sales in June. New home sales decreased 3% over the past month when there were 351 new home sales. Keep in mind, new home sales traditionally run less than 20% of total sales and with the shifting in the market, we are running 12.5% of overall sales.

Existing Home Sales

Existing homes sales were down 3% from last month's sales of 2,448 compared to this month's sales of 2,372. Existing home sales this month were down 17% from one year ago when there were 2,859 sales. Resale inventory did not change this month with 16,138 compared to 16,072 a month ago. The existing resale inventory this month is 1% lower than it was a year ago when the resale inventory was 16,249.

Inventories

New Home inventory decreased this month with 3,910 homes in inventory compared to 4,124 new homes on the market last month. The good news is the new home inventory for the region is 22% lower than it was a year ago at this time when there were 4,983 new homes on the market.

Supply in the Region has been steadily decreasing every month since January. Supply for combined new and existing homes increased slightly from a 7.2 months supply last month to 7.4 months supply this month. The existing home supply also increased from 6.6 months in May to 6.8 months in June; and the new homes supply decreased over the past month from 11.7 months of supply in May to 11.5 months supply in June. Even though the supply had little change over the last month, we are still experiencing a slight buyer's edge in both the new home market and in the existing home market.

Supply is determined by taking the "Inventory" and dividing it by the "Number of Sales." Generally speaking, a 5-6 month supply of homes on the market equates to a "balanced" market. When the supply exceeds 6 months, the market begins to favor buyers, and when the supply is less than 5 months the market tends to favor sellers.

Source: Kansas City Regional Association of REALTORS® and Heartland Multiple Listing Service

MARKET COMMENTARY FOR JUNE 2008

MARKET STATISTICS FOR JUNE 2008

Keller Williams Realty Partners Promotes Shanan Steere To Operating Principal

Ron Mowery, Overland Park Real Estate Professional (Keller Williams Realty) — Sat, 05 Jul 2008 12:38:14 -0500

Keller Williams Realty Partners, Inc. Overland Park Kansas is proud to announce the advancement of Shanan Steere to Operating Principal of the Keller Williams Legacy Partners, Inc. Shanan has been extremely active in the Keller Wiliam's Realty Partners, Inc. Office for four years. Shanan has earned rave revues for her leadership and coaching of the Keller Williams associates. Shanan's advancement is a testament to the Keller Williams culture and demonstrates the myriad career paths someone can choose within the Keller Williams Company.

If you are interested in learning more about a career in real estate with Keller Williams please contact Ron Mowery at 913-269-0479 or ronmowery@kw.com