Tuesday, December 1, 2009

Dec 1 2009

Your REALTOR®

Bonnie Fagoh
December 2009
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Copyright 2009 Realty Times
All Rights Reserved.






Home Buyer Tax Credit Extended, Expanded

By Broderick Perkins

The extension of the first-time home buyer tax credit will help continue to clear out inventory, but expanding the credit to include more buyers may not be as helpful in high-cost housing areas. President Barack Obama recently signed legislation that extends the deadline on the first-time home buyer tax credit and adds a smaller tax credit for move-up and other home buyers.
The extension and expansion gives home buyers a tax incentive to buy a home until at least April 30, 2010 -- April 30, 2011 for qualifying military personnel. The previous deadline was November 30, 2009.
"The extension of the first-time home buyer tax credit will be crucial to clearing out unsold inventory and especially the lagging bank owned inventory that has not even hit the market yet," said Kim DiBenedetto, president of the Monterey County Association of Realtors. That's true of many housing markets.
"California Association of Realtor studies tell us that for more than 75 percent of home buyers this year, the tax credit was very important and more than 40 percent of the home buyers would not have been able to buy without the credit," added DiBenedetto. The existing tax credit for first-time homebuyers remains at a maximum $8,000.
A new tax credit of up to $6,500 is available to qualifying existing homeowners who buy a new primary residence (or have one built) by April 30, 2010, if they owned their existing home for five consecutive years over the last eight years. Second homes don't qualify for the credit. Home buyers have to repay the credit if they live in their primary residence less than 36 months and are not members of the military.
The new rule also raises the qualifying income limits to $125,000 for single taxpayers and $225,000 for joint taxpayers, from the current $75,000 and $150,000. The maximum allowed home purchase price is $800,000, which won't be as useful to move-up buyers in high-cost areas. "Part of the bill also expanded the credit to move up buyers, however, it may not be as helpful to the homeowners in our areas because there is a cap on the purchase price of $800,000, but we are grateful to anything that will help even a few," said DiBenedetto, a real estate agent located in Carmel, California. That's also true of high-cost markets nationwide.
Both first-time home buyers and others must contract to buy a home by April 30, but close escrow by June 30, 2010. Buyers can claim the credit on their 2009 taxes, even if the purchase is made in 2010 by filing an amended return. DiBenedetto said, "This will also assist in selling the short sale inventory that those buyers were afraid to consider because of the time frame involved in closing them when they were on this deadline to close by the end of November.
Buyers who don't owe taxes can have the credit refunded to them as a rebate. More information is available from the Internal Revenue Service (IRS), including a question and answer page.
It's all good news for the housing market.
The National Association of Realtors says as many as 400,000 resale transactions (1.2 million for both new and resale homes) were completed specifically because of the first-time home buyer tax credit, since it began, and that put a dent in the housing inventory. Home sales also add property and sales tax revenues to the coffers of local governments as reduced inventory helps boost prices and home values.
The first-time home buyer tax credit's availability has coincided with low mortgage rates, according to Jeff Howard, CEO of Erate.com. As the November 30 tax credit deadline neared, reports from the Commerce Department, revealed new home sales slipped 3.6 percent in September and were down 7.8 percent from September 2008.
If you have any questions about how this tax credit can benefit you, call me today!



Equal Housing
Opportunity
Bonnie Fagoh
813-390-7606
bonniefagoh@century21beggins.com
http://www.TampaCoastalHomes.com

Century 21 Beggins Enterprises
813-658-1344
6542 U. S. Hwy. 41 N.
Apollo Beach, FL 33572

2 comments:

Tampa Real Estate said...

Wow Bella Sol is a beautiful waterfront community on Tampa Bay with great fishing and only 30 minutes to pro:Baseball, football, Hockey world class golf and shopping just 76 miles from Disney!

Tampa Real Estate said...

Bonnie Fagoh
December 2009
Real Estate Update

Copyright 2009 Realty Times
All Rights Reserved.






Rates Under Five Percent
In Freddie Mac's results of its Primary Mortgage Market Survey the 30-year fixed-rate mortgage averaged 4.78 percent for the week ending November 25, 2009 - down from the previous week when it averaged 4.83 percent.
Last year at this time, the 30-year fixed-rate mortgage averaged 5.97 percent.
"Long-term mortgage rates eased for the fourth consecutive week to record levels," said Frank



Mortgage Rates

Source: Realty Times


U.S. averages as of November 25, 2009:

30 yr. fixed: 4.78%
15 yr. fixed: 4.29%
1 yr. adj: 4.35%





Nothaft, Freddie Mac vice president and chief economist." Interest rates for 30-year fixed mortgage loans tied an all-time record low.


Green Renovations To
Gain Market Share

Green market research firm SBI Energy forecasts that in the next five years, the market for energy-efficient home renovation products will grow 15 percent, 50 percent faster than the renovations market as a whole.
According to the report, the energy-efficient market will reach $35 billion and claim 15 percent of all home renovation dollars spent.
"The growth will come as a result of the tax credits, new incentives, and the reality that more agencies and utilities are promoting the fact that adding improved energy efficiency is the most cost-effective way to decrease home utility bills," says Norman Deschamps, author and SBI Energy analyst.

How to Tell Mortgage
Rates Are Rising

What are some of the signs that mortgage rates, now at historic lows, are about to go up?
# One way is to monitor two important factors in our economy, they are: Declining unemployment:
The unemployment rate is sitting just under 10 percent. If lots of Americans go back to work, an increase in interest rates is likely to follow.
# Rising discount rate:
The rate the Fed charges banks that borrow from it directly stands at 0.5 percent. If it rises or the spread between it and the Federal Funds rate widens, then mortgage rate increases won’t be far behind.


Real Estate Market Is Active
Sales of single family homes, townhouses, condos and co-ops surged by a little over 10 percent in October, and were 24 percent above where they were a year before. Closed transactions rose by nearly 12 percent in the Northeast, 14. 4 percent in the Midwest, 12.7 percent in the South and by 1.6 percent in the West.
Why the big jump in activity? The number one reason, according to Dr. Lawrence Yun, chief economist for the National Association of Realtors, was that first time buyers rushed to wrap up deals before the scheduled November 30th original expiration date of the $8,000 federal tax credit
That program has now been extended through next June 30th.
Another factor: The near record-breaking affordability of housing - as measured by the prices of homes in local markets around the U.S. compared with household incomes and monthly payments at current mortgage interest rates.
The affordability equation is now at its most favorable point for buyers since 1970. Interest rates for 30-year fixed loans have been hovering under five percent . House prices meanwhile have remained well below where they were a year ago. In some areas, low prices - especially for entry-level houses - are triggering multiple-bid situations - something that hasn't been seen since the heady days of the housing boom in 2004 and 2005.



Equal Housing
Opportunity
Bonnie Fagoh
813-390-7606
bonniefagoh@century21beggins.com
http://www.TampaCoastalHomes.com

Century 21 Beggins Enterprises
813-658-1344
6542 U. S. Hwy. 41 N.
Apollo Beach, FL 33572