Tax Credits Provide Outstanding Opportunities for Home Buyers

The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. It also authorized a tax credit of up to $6,500 for qualified repeat home buyers.

1st Time Home Buyer -

• The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

Move Up/Repeat Buyer -

• The Worker, Homeownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).

Keep in mind that current escrows are running 45 days.

Feel free to contact me for more information and you can also go to the National Association of Homebuilders website or more info as well..... http://www.federalhousingtaxcredit.com/home.html

UPDATE! Home Buyer Tax Credit Extension

The House of Representatives approved legislation that would extend and expand the $8,000 tax credit for first-time home buyers. While there is more work to be done, a bill may reach President Obama for his signature by the end of this week. I will continue to monitor this situation to see if you may be able to benefit from the bill once it's finalized.

There are multiple factors that make the time to buy very attractive for most people right now.

• You have the extension of the 1st Time Home Buyer Tax Credit....
• The addition of a tax credit for step up buyers (see previous post)....
• The Federal Reserve left interest rates unchanged....
  With the nation's financial conditions "roughly unchanged," the Federal Open Market Committee decided to leave rates at the current zero to 0.25 percent for an extended period of time. The group said inflation was expected to "remain subdued".

There are also multiple FHA, government backed, financing options available that really make this a great time to buy.

Homebuyer Tax Credit Extension???

MAYBE!
Senate Democrats plan to extend an $8,000 tax credit for first-time home-buyers and allow benefits for some people who already own residences.
The proposal would let homeowners qualify for a $6,500 credit if they have lived in their residence for five years.
The home-buyers credit would be available to individuals earning up to $125,000, or $250,000 for couples, up from $75,000 for individuals and $150,000 for couples under the current law.
Lawmakers want to keep home sales from slipping as the economy struggles to recover from the worst drop in home prices since the Great Depression.
The plan would extend the credit, due to expire Nov. 30, to home purchases under contract by April 30, 2010, with borrowers allowed another 60 days to close the sale.

I'm watching this very close... Stay tuned for updates!

Market Data

Great market statistics for California, the Sacramento Region, and the San Francisco Bay Area. Starting November, I am going to post these statistics monthly.

• Median Prices in California are up 2.6% over last month. Sales are down 5.1% over last month. Just so you know...traditionally, sales begin to slow in the fall and winter months.
• Median Prices in Sacramento are up 4.5% over last month. Again, sales are down 8.9% over last month and I consider this normal for this time of year. Nobody wants to uproot kids in the fall after school starts.
• Median Prices in the the San Francisco Bay Area are down 2.6% over last month and sales area also down 15.2% over last month. Sales over the prior year are up 7.6%.

Remember...When you purchase a home, it's a long term investment. The market may fluctuate but the overall trend is going to be UP...finally. See my last blog entry. You can expect your home to be worth about double what it is valued today in 10 years. Want an idea of what your home's current value is? Email me and I'll give you a free home valuation.

Statistical info thanks to CA Assoc of Realtors

Housing outlook for 2010? Not bad...

I've been saying that we will hit stabilization in the last quarter of 2009 and the housing market will flatten out with a slight increase in prices sometime in 2010. Barring some unforeseen circumstance, I'm sticking with my gut.

The California Association of Realtors says the same thing...Keeping in mind that real estate conditions are very localized, overall in California we can expect the median home price to rise 3.3 percent to $280,000 in 2010. Sales will moderate to a more sustainable pace, posting a 2.3 percent decrease next year. 2010 should mark the beginning of a “new normal” for California’s housing market, and likely will feature a steady stream of sales driven by distressed properties in the low end of the market, coupled with moderate home-price appreciation.
Many factors still come into play and are we in full recovery swing? Not yet, but I'd say that we are around the corner and about to merge onto the recovery freeway...

Under Construction

I'm getting it together and can't wait to get this out to the world. I'm also going to have video's posted as well! Exciting times ahead!

Kev