Wine Country And Horses

One of the biggest problems with solar and other alternative energy systems and home energy conservation projects in general is that the upfront costs can take months or years to recoup in the form of lower utility bills. Plus, if a property owner is not sure they will be in the structure long enough to realize those benefits, there is even less incentive to make an investment, especially in our current economy.

But reduced consumption of energy immediately benefits the planet, leading to less pollution and a reduced carbon footprint.  Unfortunately the environmental benefits don’t reconcile immediately with short term financial outlay. One new program designed to address this problem head on. The Sonoma County Energy Independence Program (SCEIP) is billed as “HOT, COOL and GREEN!”

An overview of the program was the subject of a story in the Santa Rosa Press Democrat.
Conserve now, pay later

A brief overview from the SCEIP web site:

Program Specifics:

Participation in this Sonoma County program is completely voluntary.

Energy efficiency, water conservation and renewable energy generation upgrades must be permanently attached to the property to qualify. Items not permanently attached such as dishwashers and other appliances are not allowed. Improvements like insulation, cool roofing, heating and air conditioning systems, waterless urinals, solar panels and energy efficient windows are acceptable.

Improvements must be for existing buildings, new construction does not qualify.

Assessments are a lien on the property itself: when the property is sold, the assessment stays with the property.

Repayment is made through your property tax bill over time.

Participating in the Sonoma County Energy Independence Program is easy. First decide how much makes sense to invest in energy and water efficiency or renewables for your home. Then fill out our application and follow a few simple steps (outlined below.) Before you know it, you’ll be realizing a monthly energy savings on your bill.

The lowest interest rate currently offered on the SCEIP website is 6.75%, but there is some talk of additional funds being made available to subsidize lower rates to make the payments more affordable.  There is a calculator at the site so you can see what possible payments might be.

For more information on Solar Resources in Sonoma County visit “Solar Sonoma County” http://www.solarsonomacounty.com/index.html

Brokermetrics, a real estate data analysis service provided by Terradatum, is currently beta-testing a new tool for analyzing real estate sales trends by price range. This is really welcome as far as I am concerned because our market is so hot at the low end (under $400,000) and so slow at higher price points that it is really difficult to make sense of market stats country wide for all price ranges. It takes a lot of slicing and dicing to confirm what most of us already know, that mid and upper price range properties are moving much more slowly than entry level homes being snatched up by first time buyers and investors. So here is a look at the new Brokermetrics graph. I know you really need your microscope to read these images, so don’t forget to click on them so you can go to a larger version than fits in my middle column here.

I have got to give credit where credit is due..Krisstina Wise is an Austin real estate broker, head of the Good Life Team. Earlier today she followed me on Twitter. I decided to check out the website of her self-described “hip” Austin real estate brokerage. I found it engaging, well-thought out, informative and professionally done. They use video judiciously and well and have some good tools for buyers and sellers. Their blog had a post on the new federal tax credit for first time home buyers. It wasn’t the feds who coined the “Property Virgin”, nor did I, so I MUST give credit where credit is due. Thanks to Krisstina and the Good Life team. Here is a bit of their post:

No joke. The 8,000 reasons to buy today are quantified in terms of real dollars — $8,000! That’s right. As part of the stimulus package, Uncle Sam is offering “First-Time Homebuyers” (Let’s call you Property Virgins) up to $8,000 in the form of a tax credit for purchasing a home in 2009.

If you have been on the fence or if you are considering buying a home in the next year or so – you must learn about the American Recovery and Reinvestment Act of 2009 – The First-time homebuyer tax credit. This is a special opportunity that enables you, as a Virgin, to be one of the few who can BENEFIT from this crazy economy.

What is it? As part of the Stimulus package, a Property Virgin who purchases in 2009 is eligible to receive up to 10% of the cost of the house –up to $8,000– in the form of a tax credit on their tax return (did we just use stimulus and virgin in the same sentence?). A tax credit means that the $8,000 is a dollar for dollar reduction in what you owe in taxes. This means that if you owed $8,000 in income taxes and you received the $8,000 tax credit, you would owe nothing to the IRS. If you are owed a refund of $1,000, after the credit you would receive a refund of $9,000! And no, you don’t have to pay it back if you live in your new home for at least 3 years.

Actually both the term property virgin and first time buyer are not really accurate. Eligibility for this tax break really focuses on your property ownership status over the past three years, so you may be eligible even if you are not a true property virgin. There are some income restrictions and other guidelines here. This new incentive differs from the one offered last summer in that it is not repayable unless you move out of the home in less than 3 years.

I am not claiming to offer tax advice here, or in any venue for that matter, so be sure to talk to you tax professional to understand the ins and outs of this tax credit and how it might apply to you. And there is a sense of urgency as well. The credit, which can be claimed on your 2008 OR 2009 federal return, applies to homes purchased between January 1, 2009 and December 1, 2009, so maybe it is time to get off the fence! And please contact us if we can help you to find your first home!

A few days ago I wrote in a post:

The sheer activity level, the vast number of first time buyers and investor clients looking for rental property, and the declining number of new listings have all been detailed here over the previous months. In December, new sales exceeded new listings for the first time in many months, and, beginning in February it seems to us that the bottom was reached and had passed some entry level buyers by.

A few minutes ago I received the following snapshot of the Sonoma County Real Estate Market closed sales figures from March 2008 through March 2009, thanks to my broker, Rick Laws of Coldwell Banker, who compiles our market statistics and shares them generously, with not only me and my colleagues, but the Press Democrat newspaper.

Obviously one of the take aways from this graph, year over year, is the 27% drop in median price for the county. But the median price rose from its low in February about $10,000 with a high rate of closed sales and a good statistical base. Prices on the low end seem to have stabilized and maybe bounced upwards a few percent. This is as welcome as the signs of spring!

Kudos to blog buddy Gretchen Merrick, writing from the South Bay, for calling my attention to this wonderful animation which explains the origins of the current credit crisis in clear and simple fashion. Her post contains a link to an interview on Terry Gross’s Fresh Air Show on National Public Radio, which offers more detail. The Credit Crisis Simplified | South County Real Estate Today

I thought I would offer the video here. I love this form of visual communication when done well!


The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.