Tag Archives: home tax credits

Real Estate

Existing-Home Sales Down, but Prices Rise

Existing-home sales fell as expected in December after first-time buyers rushed to complete deals during the months leading up to the original November deadline for the tax credit. However, prices rose from December 2008 and annual sales improved in 2009, according to the National Association of REALTORS®.

Existing-home sales—including single-family, townhomes, condominiums and co-ops—fell 16.7 percent to a seasonally adjusted annual rate of 5.45 million units in December from 6.54 million in November, but remain 15 percent above the 4.74 million-unit level in December 2008.

There were approximately 5,156,000 existing-home sales in 2009, which was 4.9 percent higher than the 4,913,000 transactions recorded in 2008. It was the first annual sales gain since 2005.

Tax Credit Creates Swing in Market

Lawrence Yun, NAR chief economist, says there were no surprises in the data.

“It’s significant that home sales remain above year-ago levels, but the market is going through a period of swings driven by the tax credit,” he said. “We’ll likely have another surge in the spring as home buyers take advantage of the extended and expanded tax credit. By early summer the overall market should benefit from more balanced inventory, and sales are on track to rise again in 2010.”
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Real Estate

Extended Tax Credits Signed Into Law

government-tax-credits

Expected to contribute approximately $22 billion to the economy, Congress overwhelmingly passed a bipartisan measure this week extending the $8,000 home buyer tax credit to April 30, 2010.

The legislation, which is part of a larger bill that also extends unemployment benefits, was signed into law by President Obama today.

More people are now eligible to take advantage of the law, which includes a $6,500 tax credit for buyers who are current home owners and have lived in their home for five of the past eight years.

Income limits for eligible home buyers were also expanded to $125,000 for single buyers and $225,000 for couples, up from $75,000 for individuals and $150,000 for couples. Qualifying home prices are capped at $800,000.

NAR’s Government Affairs Division has compiled facts on the changes made to the current tax credit. NAR members sent more than 500,000 letters to leaders in Congress and made nearly 13,000 telephone calls to Senate offices last weekend to encourage support. So far this year, REALTORS® have spent nearly $14 million lobbying Congress, according to federal campaign finance records compiled by the Center for Responsive Politics.

Sen. Johnny Isakson, a Georgia Republican and a former member of NAR, was key in extending the credit, as well as pushing it through initially. Other prominent boosters include the National Association of Homebuilders and the Mortgage Bankers Association.

Listen to NAR President Charles McMillan’s podcast announcement.

NAR economists estimate that approximately 2 million people will take advantage of the tax credit this year.

Real Estate

First-Time Buyer Tax Credit Extension Possible

first_time_home_buyer

There are a lot of things driving the real estate market in California. The affordability index has increased to 67%. That is, 67 percent of potential buyers can now afford to buy a home. Prices driven down by short sales and foreclosures, have a dark side, but have created buying opportunities for investors and first time home buyers.

Another incentive for first time home buyers is the $8,000 tax credit. Due to expire on November 30, bills to extend the tax credit are pending in both the U.S. House and the Senate.
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Real Estate

Home Buyer Tax Credit Expained

httpv://www.youtube.com/watch?v=qeDp_w3oiqg

Robert Dietz, tax economist, of the National Association of Home Builders gives detailed answers to questions home buyers might have about the Federal tax credit. (The $10,000 California tax credit for home buyers has been used up)
Some of the questions answered are:

• Who’s eligible to claim the credit?
• How does it help you?
• What kind of homes qualify?
• How is the amount of credit determined?
• What is a partial credit?
• When can you claim the refund?
• How is the 2009 credit different from the 2008 tax credit?

Additional information about the tax credit can be found on the Federal Housing Tax Credit website.