Real Estate Market

Home sales surged in the fourth quarter of 2009 with many areas seeing double digit gains according to the National Association of Realtors. Total existing-home sales (single-family and condo) jumped 13.9 percent above the third quarter and 27.2 percent above the fourth quarter of 2008. Distressed property sales accounted for 32 percent of the fourth quarter transactions, down from 37 percent from 2008.

Lawrence Yun , NAR chief economist, said the first-time home buyer tax credit, combined with record low interest rates, played a dominant role in fourth quarter sales. Yun went on to say, “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices.”

Let's look at January real estate sales to see how the housing recovery is progressing in Chester County.

Downingtown Area School District saw a 16% increase in pending sales in January 2010, compared to January 2009.  Sold listings have increased by 31% and active listings have decreased by 8%.  There was a 17% decrease in average sales price to $337,836, while market times decreased by 2 days.

In the West Chester Area School District, there was an increase in active listings  of 19% when compared to January 2009.  While pending sales increased by 16% in January 2010 when compared to January 2009.  Average sales price decreased by 13% to 359,445 and sold listings increased by 43% from January 2009.  Market times decreased by 21 days.

Pending sales have increased by 35% in the Coatesville Area School District in January 2010.  The average sales price decreased by 4% to $203,082 and active listings decreased by 15%.  The number of homes sold decreased by 11% when compared to January 2009, while homes were on the market on average 38 days less than in January 2009.

A word of caution...markets within a school district can be very different from neighborhood to neighborhood. For the latest Chester County PA real estate market conditions in your neighborhood, please call me at 610-564-SCOT or visit ChesterCountyHomeSource.com.

Seeing the results of their federal tax return is a happier experience for more Americans this year. From credits for homebuyers and energy-efficient home improvements, to increases for the Earned Income Tax credit and standard deduction, the majority of taxpayers will receive a bigger refund or less tax owed on 2009 returns.

Despite the number of tax changes, experts agree doing your own taxes is still easy, fast and affordable. "The key this year is to get organized beforehand and to allow for a bit of extra time to make sure you don't leave any money on the table," says Jessi Dolmage, spokeswoman for 2nd Story Software, the makers of TaxACT.

Dolmage shares five easy ways that all taxpayers can maximize their federal refund.

1. Get organized. Gather your tax documents and organize by category. Locate records related to events including unemployment, college, new vehicles, having or adopting children, buying a house, moving and changing jobs. New tax laws may give you bigger breaks for those events this year.

2. Use tax preparation software. If you're going to do your own taxes, why pay if you don't have to? Free solutions like TaxACT Free Federal Edition guide you through the new credits, deductions and tax laws. They also do the math, help find missing information and identify potential errors. TaxACT Free Federal Edition at www.taxact.com allows everyone to prepare and e-file for free - regardless of income, age, state of residence and military status. TaxACT also includes a maximum refund guarantee and all e-file forms for simple and complex federal returns.

3. Remember the Earned Income Tax Credit (EITC). Historically, one in four eligible taxpayers fail to claim this credit, designed for those whose earned incomes are below certain thresholds. The credit amount is based on filing status, age and number of qualifying children. Those without children also qualify. For 2009, more workers and families will qualify for this refundable credit. According to the Internal Revenue Service, one out of every six taxpayers will qualify this year. Taxpayers claiming the federal EITC may also be eligible for a similar credit on their state or local return.

4. Consider itemizing. The standard deduction for 2009 has increased to $5,700 for individual or married filing separately returns, $11,400 for joint returns or qualifying widow(er) returns and $8,350 for head of household returns. If your eligible deductions exceed the standard deduction amount, you're likely better off itemizing. Software like TaxACT will identify your best option after you enter your deductions.

5. File and pay as much as possible by April 15. Even if you can't pay your entire tax bill by the deadline, file early and schedule payment any time before April 15 (June 15 for taxpayers who qualify as "out of the country") to avoid penalties and interest. If you need a six-month extension (four months if "out of the country"), Form 4868 is due by April 15 and will extend your filing deadline to Oct. 15, 2010. Remember, an extension to file is not an extension to pay.

The fastest way to get your federal refund is to e-file your return and choose direct deposit, says Dolmage. The exception is those claiming the first-time homebuyer credit. To help prevent fraud, the IRS is requiring documentation for the credit to be mailed with their return and Form 5405 for the credit. In addition, the IRS says it likely won't start issuing those refunds until the end of March. Learn more about 2009 tax law changes and TaxACT at http://irs.gov and www.taxact.com.(ARA)

Do images of flowering trellises laden with yellow, pink, green and purple blooms dance through your dreams? You may be ready for some warm spring-like temperatures, but the weather outside is still a little frightful. Ignore the weather and bring spring inside with some indoor gardening.

Not only does bringing spring inside help brighten your home, but houseplants can also improve the quality of the air you're breathing. A NASA study found that houseplants remove up to 87 percent of toxic indoor air inside a sealed chamber within 24 hours.

By planting now, while winter is still in the air, you will have vegetables, herbs and flowers primed for transplanting when warmer weather finally arrives. And since they're inside, you can watch the plants as they shoot their little green stems out of the fresh dirt, monitoring them as they grow.

* Use loose potting soil to promote root growth. Outside, worms and insects tunnel through the dirt, naturally breaking it up to help plants spread their roots. To mimic their effect indoors, use potting soil mixed with peat moss, vermiculite and perlite to create a light texture that won't compact after a couple of waterings.

* Make sure the natural light is adequate. Some plants like direct sunlight and must be located near a south-facing window, while others prefer a few hours of indirect light. But to really keep your herbs and flowers looking strong all season long, consider using artificial light like the Grow Light Pro White from Wards.com, which can also help you get your spring garden started early with seedlings. The Grow Light has four lights that can be turned on as a unit or individually, and it has an adjustable bottom shelf so you can alter the light level as your plants grow.

When plants don't get the light they need, they start to appear thin and frail. As your plants begin to grow, make sure to rotate the pots so the stems grow straight, rather than bending unnaturally toward the source of light.

* Keep the humidity level above 50 percent with a humidifier. Not only will your plants appreciate the extra moisture, but so will you. When the humidity drops below 50 percent, most plants suffer from water loss through their leaves, and it's difficult to regain that water balance, even with frequent watering.

* Really bring spring inside your home with beautiful pots and decorating accents. Visit Wards.com to find beautiful and creative birdhouses that not only are functional, but stylish enough to hang inside. Consider hanging a wire birdhouse in the shape of an acorn in the kitchen window, or using a set of two birdhouses as a unique decoration for your entryway.

* Mix art and fun together with some ivy. Ivy topiaries are very easy to grow, and there are many creative planters and forms you can use to support the ivy as it winds its way toward the sun. Are you a music fan? A guitar and music stand with little pots incorporated into the design can help brighten up your living room. Or maybe you prefer a vintage look created by placing a Madeline Dress Form over your vines, allowing them to grow and construct the skirt. Both styles are available at Wards.com.(ARA)

Have a Super Fantastic Day! 

Oh, and by the way, I'm never too busy for your referrals.