Breaking News: President Signs Tax Credit Extension & Expansion
President Obama signed into law legislation that extends and expands the first-time homebuyer tax credit this morning. This enacts the legislation into law making the extension and expansion effective immediately after today. To learn more about the jobless benefit extension and the extension of the homebuyer tax credit visit: Obama signs jobless benefit extension.
Who Qualifies for the Extended Credit?
First-time homebuyers who purchase after today and before April 30, 2010, are eligible for the extended tax credit.
Current homeowners purchasing a new principal residence after today and before April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.
Friday, November 06, 2009
Thursday, November 05, 2009
House and Senate pass Homebuyer Tax Credit
House and Senate pass Homebuyer Tax Credit
Update as of 12:30pm 11/5/09
The House passed the Tax Credit [ within the Unemployment Benefits bill] by a vote of 403-12. It now goes to the President for signature, as early as Friday.
Notice from yesterday....The US Senate voted 98-0 to pass the Homebuyer Tax Credit [within the Unemployment Bill]. It now goes to the House. We expect the House to pass the bill as well and it could go to the President for signature within the week.
Passage of this bill would be wonderful news for the real estate industry in Washington. In essence, the bill extends the $8,000 first-time homebuyer credit through April 30, 2010 and provides a $6,500 credit to new purchasers who have lived in their current residence for five or more years.
According to Senator Patty Murray, "Extending and expanding the successful homebuyer's tax credit will help families purchase homes and will provide a much needed boost to the local housing market".
Update as of 12:30pm 11/5/09
The House passed the Tax Credit [ within the Unemployment Benefits bill] by a vote of 403-12. It now goes to the President for signature, as early as Friday.
Notice from yesterday....The US Senate voted 98-0 to pass the Homebuyer Tax Credit [within the Unemployment Bill]. It now goes to the House. We expect the House to pass the bill as well and it could go to the President for signature within the week.
Passage of this bill would be wonderful news for the real estate industry in Washington. In essence, the bill extends the $8,000 first-time homebuyer credit through April 30, 2010 and provides a $6,500 credit to new purchasers who have lived in their current residence for five or more years.
According to Senator Patty Murray, "Extending and expanding the successful homebuyer's tax credit will help families purchase homes and will provide a much needed boost to the local housing market".
Monday, October 12, 2009
Market Financials
Despite the Bond market being closed on Monday in observance of Columbus Day, the Stock market will be open, and the week ahead has plenty of market-moving economic reports on tap.
On Wednesday, the Retail Sales Report will be released. This is the most-timely indicator of broad consumer spending patterns, so the markets will be watching to see if it comes in near expectations.
Thursday brings us inflation news when the Consumer Price Index (CPI) is reported. After Bernanke's comment last week about the Fed protecting against inflation, the markets will be watching this report closely.
On Friday, the Preliminary Consumer Sentiment Index will be reported. This survey is conducted by the University of Michigan and measures consumer attitudes regarding present and future economic conditions. The index rose at the end of September, so the markets will be watching to see if that boost in confidence continued into this month's preliminary report.
In addition to the important economic reports described above, industry experts and traders will be paying close attention to the release of the Meeting Minutes from the Fed's most recent Open Market Committee meeting. Once again, any talks about future inflation could move the markets - particularly after Bernanke's comments last week.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.
Market Information from Eric Campbell at Bank of America: eric.campbell@bankofamerica.com
On Wednesday, the Retail Sales Report will be released. This is the most-timely indicator of broad consumer spending patterns, so the markets will be watching to see if it comes in near expectations.
Thursday brings us inflation news when the Consumer Price Index (CPI) is reported. After Bernanke's comment last week about the Fed protecting against inflation, the markets will be watching this report closely.
On Friday, the Preliminary Consumer Sentiment Index will be reported. This survey is conducted by the University of Michigan and measures consumer attitudes regarding present and future economic conditions. The index rose at the end of September, so the markets will be watching to see if that boost in confidence continued into this month's preliminary report.
In addition to the important economic reports described above, industry experts and traders will be paying close attention to the release of the Meeting Minutes from the Fed's most recent Open Market Committee meeting. Once again, any talks about future inflation could move the markets - particularly after Bernanke's comments last week.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.
Market Information from Eric Campbell at Bank of America: eric.campbell@bankofamerica.com
Home Price Reductions
Home Price Reduction Levels Stay Above 25% for Fourth Consecutive Month
RISMEDIA, October 12, 2009—Trulia, Inc announced that 25.6% of homes currently on the market in the U.S. as of October 1, 2009 have experienced at least one price cut. More than one in four current listings on Trulia have been reduced in price for the fourth straight month. The total amount slashed from home prices is $28.4 billion, a $967 million increase from June 2009. The average discount for price-reduced homes continues to hold steady at 10% off of the original listing price.
Northeast with Most Homes Reduced; West Sees Biggest CutsFive of the 10 states with the highest percentage of homes with price reductions are in the Northeast— Massachusetts, Rhode Island, Connecticut, New Hampshire and New Jersey. One in three homes in these states has cut their list price at least once.
Seven of the 10 states leading the country with the biggest listing price cuts are in the West, where heavy foreclosures have taken their toll. In Nevada, Idaho, Arizona, Wyoming, Hawaii, Utah and California, cuts are an average of 13% off the original list price. Of the $28.4 billion slashed nationally, New York, California and Florida account for 35% of the total value of reductions.
Report FindingsFor the first time in four months, Jacksonville no longer holds the top spot for highest level of home-price reductions: Memphis replaced Jacksonville with 36% of current listings experiencing at least one round of discounts. Several cities continue to see high levels of cuts on home prices with Indianapolis, Milwaukee, Minneapolis, Portland and Raleigh, all earning a place in the top 10 for the third consecutive month.
“Interest in real estate typically wanes at the end of the year, which means that sellers who didn’t aggressively price their homes may find themselves making difficult decisions to reduce their prices or delay the sale until interest piques again in January,” said Pete Flint, Trulia co-founder and CEO. “We are seeing the beginning of this trend in the Northeast and Western United States with discounting happening at all price points, and expect it to continue.”
Cities experiencing significant increases in percentage of listings with price reductions from June 2009 to October 2009 include:
-Kansas City, MO – 50% increase in price reductions
-Colorado Springs, CO – 32% increase in price reductions
-Louisville, KY – 27% increase in price reductions
-Indianapolis, IN – 27% increase in price reductions
-Portland, OR – 25% increase in price reductions
-Oklahoma City, OK – 24% increase in price reductions
-Memphis, TN – 24% increase in price reductions
-Tulsa, OK – 23% increase in price reductions
-Milwaukee, WI – 22% increase in price reductions
-Arlington, VA – 22% increase in price reductions
Cities showing the highest percentage of declines for listings with price reductions from June 2009 to October 2009 include:
-San Antonio, TX – 37% decrease in price reductions
-Las Vegas, NV – 36% decrease in price reductions
-Oakland, CA – 17% decrease in price reductions-San Jose, CA – 16% decrease in price reductions
-Los Angeles, CA – 14% decrease in price reductions
-Honolulu, HI – 11% decrease in price reductions
-Long Beach, CA – 11% decrease in price reductions
-Dallas, TX – 11% decrease in price reductions
-Washington, D.C. – 10% decrease in price reductions
-New York, NY – 9% decrease in price reductions
Luxury Market Not ImmuneLuxury homes (those listed at $2 million and above) continue to bear the brunt of discounts being offered with an average of 14% being slashed from the original asking price compared to the national average of 10%. Additionally, luxury homes represent less than 2% of all current listings on Trulia, but are responsible for 25% of the $28.4 billion in home price reductions.
For more information, visit www.trulia.com. Read more: http://rismedia.com/2009-10-11/home-price-reduction-levels-stay-above-25-for-fourth-consecutive-month/#ixzz0Tk2HWpHb
RISMEDIA, October 12, 2009—Trulia, Inc announced that 25.6% of homes currently on the market in the U.S. as of October 1, 2009 have experienced at least one price cut. More than one in four current listings on Trulia have been reduced in price for the fourth straight month. The total amount slashed from home prices is $28.4 billion, a $967 million increase from June 2009. The average discount for price-reduced homes continues to hold steady at 10% off of the original listing price.
Northeast with Most Homes Reduced; West Sees Biggest CutsFive of the 10 states with the highest percentage of homes with price reductions are in the Northeast— Massachusetts, Rhode Island, Connecticut, New Hampshire and New Jersey. One in three homes in these states has cut their list price at least once.
Seven of the 10 states leading the country with the biggest listing price cuts are in the West, where heavy foreclosures have taken their toll. In Nevada, Idaho, Arizona, Wyoming, Hawaii, Utah and California, cuts are an average of 13% off the original list price. Of the $28.4 billion slashed nationally, New York, California and Florida account for 35% of the total value of reductions.
Report FindingsFor the first time in four months, Jacksonville no longer holds the top spot for highest level of home-price reductions: Memphis replaced Jacksonville with 36% of current listings experiencing at least one round of discounts. Several cities continue to see high levels of cuts on home prices with Indianapolis, Milwaukee, Minneapolis, Portland and Raleigh, all earning a place in the top 10 for the third consecutive month.
“Interest in real estate typically wanes at the end of the year, which means that sellers who didn’t aggressively price their homes may find themselves making difficult decisions to reduce their prices or delay the sale until interest piques again in January,” said Pete Flint, Trulia co-founder and CEO. “We are seeing the beginning of this trend in the Northeast and Western United States with discounting happening at all price points, and expect it to continue.”
Cities experiencing significant increases in percentage of listings with price reductions from June 2009 to October 2009 include:
-Kansas City, MO – 50% increase in price reductions
-Colorado Springs, CO – 32% increase in price reductions
-Louisville, KY – 27% increase in price reductions
-Indianapolis, IN – 27% increase in price reductions
-Portland, OR – 25% increase in price reductions
-Oklahoma City, OK – 24% increase in price reductions
-Memphis, TN – 24% increase in price reductions
-Tulsa, OK – 23% increase in price reductions
-Milwaukee, WI – 22% increase in price reductions
-Arlington, VA – 22% increase in price reductions
Cities showing the highest percentage of declines for listings with price reductions from June 2009 to October 2009 include:
-San Antonio, TX – 37% decrease in price reductions
-Las Vegas, NV – 36% decrease in price reductions
-Oakland, CA – 17% decrease in price reductions-San Jose, CA – 16% decrease in price reductions
-Los Angeles, CA – 14% decrease in price reductions
-Honolulu, HI – 11% decrease in price reductions
-Long Beach, CA – 11% decrease in price reductions
-Dallas, TX – 11% decrease in price reductions
-Washington, D.C. – 10% decrease in price reductions
-New York, NY – 9% decrease in price reductions
Luxury Market Not ImmuneLuxury homes (those listed at $2 million and above) continue to bear the brunt of discounts being offered with an average of 14% being slashed from the original asking price compared to the national average of 10%. Additionally, luxury homes represent less than 2% of all current listings on Trulia, but are responsible for 25% of the $28.4 billion in home price reductions.
For more information, visit www.trulia.com. Read more: http://rismedia.com/2009-10-11/home-price-reduction-levels-stay-above-25-for-fourth-consecutive-month/#ixzz0Tk2HWpHb
Wednesday, October 07, 2009
Notes from Dan Martin at GetHomeLoans.com
Some quick facts for the week:
The S&P 500 is up over 51% through last Friday since its Bear Market low of 677 on 3/9/09.
Only 29% of Americans think they will return to their pre-recession spending habits when the current recession ends. It began in December of 2007.
61% of the residential mortgage-backed securities issued from 2005-2007 rated AAA by Standard and Poor’s have been downgraded to BBB or lower.
The last time the Fed raised interest rates was over 3 years ago on 6/29/06.
Detroit’s unemployment rate is near 17% while the national unemployment rate is 9.8%.
The S&P 500 is up over 51% through last Friday since its Bear Market low of 677 on 3/9/09.
Only 29% of Americans think they will return to their pre-recession spending habits when the current recession ends. It began in December of 2007.
61% of the residential mortgage-backed securities issued from 2005-2007 rated AAA by Standard and Poor’s have been downgraded to BBB or lower.
The last time the Fed raised interest rates was over 3 years ago on 6/29/06.
Detroit’s unemployment rate is near 17% while the national unemployment rate is 9.8%.
Jackson County Home Sales
Follow this link to read more about Jackson County home sale stats:
http://www.mailtribune.com/apps/pbcs.dll/article?AID=/20091007/NEWS/910070325
http://www.mailtribune.com/apps/pbcs.dll/article?AID=/20091007/NEWS/910070325
Monday, September 14, 2009
$8,000 tax credit?
The $8,000 first-time buyer credit is set to expire on December 1st. There is some talk that it won’t be extended which makes it a great time to get moving.
Here are a few scenarios related to the $8000 credit…….
If parents coborrow with their child, but have owned a home in the last 3 years, can the buyer still claim the $8000 credit? Yes, but the parents may not claim any part of it.
If a wife owned a home before she was married and the husband did not, can he claim the first time buyer credit on a new purchase? No, the IRS states that the taxpayer and taxpayer’s spouse may not have had ownership interest in a principal residence within the prior three years from the date of purchase.
An unmarried couple buys a house. One owned a home that he sold recently. Can they claim the $8000 credit? The individual who did not own a home may claim the entire credit.
A woman has rented an apartment for several years, but still owns a property she has rented out for 3 + years. Can she claim the credit on a new purchase? Yes, if she will occupy the new home, she may claim the whole credit.
A few other reminders. There are income limits to the program and the credit must be repaid if the buyers fail to occupy the home for 36 months. There is no waiver for military personnel at this time.
Here are a few scenarios related to the $8000 credit…….
If parents coborrow with their child, but have owned a home in the last 3 years, can the buyer still claim the $8000 credit? Yes, but the parents may not claim any part of it.
If a wife owned a home before she was married and the husband did not, can he claim the first time buyer credit on a new purchase? No, the IRS states that the taxpayer and taxpayer’s spouse may not have had ownership interest in a principal residence within the prior three years from the date of purchase.
An unmarried couple buys a house. One owned a home that he sold recently. Can they claim the $8000 credit? The individual who did not own a home may claim the entire credit.
A woman has rented an apartment for several years, but still owns a property she has rented out for 3 + years. Can she claim the credit on a new purchase? Yes, if she will occupy the new home, she may claim the whole credit.
A few other reminders. There are income limits to the program and the credit must be repaid if the buyers fail to occupy the home for 36 months. There is no waiver for military personnel at this time.
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