It may be November, but the real estate market is heating up!

Maybe it's because of the new homebuyer tax credit, but my phone has been ringing all day with agents making appointments to show my listings! This is great!

It may be November, but it feels like spring!

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If you are thinking of buying or selling a home in Marlboro, Manalapan, Freehold or the surrounding areas in Monmouth County, New Jersey, don't wait! There are others buyers and sellers who want to make a deal with you. Call me, and let me help. I would appreciate the opportunity to earn your business!

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Lynn Michaels is one of the Top Producers in the Marlboro / Manalapan office of Weichert, Realtors.

Lynn Michaels (Cell) 908-804-3200 (Email) lynnmichaels@hotmail.com (Web) http://www.lynnmichaelshomes.com/

Today, President Obama signed into law the extension and expansion of the first time homebuyers tax credit bill, which received overwhelming bipartisan support in both houses of Congress.

The homebuyer tax credit provisions are actually part of an Unemployment benefits extension bill, extending unemployment benefits just as the jobless rate hit 10.2%.

For the jobless, the bill extends unemployment benefits for an additional 14 weeks for individuals who will have used up their benefits by the end of this year. An additional six weeks of benefits will be allowed for people who live in states with over 8.5% unemployment.

As for the tax credit extension and expansion for home buyers, the National Association of Realtors has provided a chart comparing the new homebuyer tax credit to the one that is expiring on November 30, 2009, as well as Frequently Asked Questions about the homebuyer tax credit changes.

You can read my earlier posts on this topic here:

Senate approved extension and expansion of homebuyer tax credit.

House passes Senate bill extending and expanding homebuyer tax credit.

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If you would like information on buying or selling homes in Marlboro, Manalapan or Monmouth County, New Jersey, please call me. I would appreciate the opportunity to earn your business!

Lynn Michaels is one of the Top Producers in the Marlboro / Manalapan office of Weichert, Realtors. Whether buying or selling a home in Marlboro, Manalapan, Freehold or the surrounding areas, call Lynn for outstanding service and results.

Lynn Michaels (Cell) 908-804-3200 (Email) lynnmichaels@hotmail.com (Web) http://www.lynnmichaelshomes.com/

Obama set to sign a big tax break for homebuyers

WASHINGTON - Missed out on Cash for Clunkers? Congress has another deal for you: Buy a home before May 1 and collect up to $6,500 from the government. If you're a first-time homebuyer, get up to $8,000.

As part of the government's efforts to encourage people to spend money to help revive the economy, the House voted 403-12 Thursday to expand a popular tax credit for homebuyers. The bill, which also extends unemployment benefits and expands a tax break for money-losing businesses, now goes to President Barack Obama, who plans to sign it Friday.

First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package. But with that housing program scheduled to expire at the end of November, the House voted to extend it into the spring - and to expand it to many people who already own homes.

Buyers who have owned their current homes at least five years would be eligible, subject to income limits, for tax credits of up to $6,500. First-time homebuyers - or people who haven't owned homes in the previous three years - could get up to $8,000. To qualify, buyers have to sign purchase agreements before May 1 and close before July 1.

"It's huge. I think it's going to have a big impact," said Patti Ketcham, who owns a real estate firm in Tallahassee, Fla. "I hope I'm right. Golly, I hope I'm right."

Like housing markets across the country, Tallahassee's has been depressed since even before the nation's economy plunged into recession. There was no huge boom and bust like there was in many coastal areas, Ketcham said, "but ask anybody trying to sell a house and they'll tell you it's been no fun."

The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

Real estate agents say the first-time homebuyers' tax credit that's already in effect has boosted sales, much in the same way the Cash for Clunkers program increased auto sales last summer by paying car buyers as much as $4,500 for exchanging their old gas guzzlers for new, more fuel efficient models.

The agents hope the expanded housing credit will help stabilize housing markets during typically slow sales months in the winter. Today, many would-be buyers are still worried that home values could drop further, said Lawrence Yun, chief economist at the National Association of Realtors.

"Once the consumer fear factor disappears, then housing can move into a sustainable recovery," Yun said. "I think we will be there by the middle of next year."

Yun said the tax credit has helped to increase demand and reduce inventory, enabling sellers to get higher prices than they would have otherwise.

About 1.4 million first-time homebuyers had qualified for the credit through August. The Realtors estimate that 350,000 of those buyers would not have purchased their homes without the credit.

The real estate industry, including Realtors, home builders and mortgage bankers, have lobbied hard for the expanded tax credit. Lawmakers said the program will not be extended again.

Critics say the tax credit is poorly targeted because the vast majority of people receiving it would have bought homes anyway.

"Essentially we're giving money to people for doing nothing different," said Ted Gayer, co-director of economic studies at the Brookings Institution, a Washington think tank.

But Susan Marvin, president of Marvin Windows and Doors in Warroad, Minn., near the Canadian border, said the economic benefits can be broad. She said, "If people are buying a home, they are far more likely to replace products or upgrade products."

Rep. John Lewis, D-Ga., said, "This tax credit has created jobs in the housing industry and real estate, and it will continue to create more jobs throughout our country."

Extending and expanding the tax credit for homebuyers is projected to cost the government about $10.8 billion in lost taxes.

The credit is equal to 10 percent of the purchase price of a primary residence, up to a maximum of $8,000 for first-time homebuyers and $6,500 for others.

Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a payment. Taxpayers who want immediate refunds can amend their tax returns for 2008 to claim the credit.

Also on Thursday, the government-controlled mortgage company Fannie Mae announced a new program that could allow thousands of borrowers on the verge of foreclosure to have the option of renting their homes for a time from the company.

But the effort is likely to affect a relatively small number of people in comparison to the number of homes being repossessed.

The homebuyers tax credit is one of two tax breaks totaling more than $21 billion that were included in a bill extending unemployment benefits for those without jobs for more than a year. The other tax break would allow money-losing companies to use current losses to offset taxable profits earned in the previous five years.

That break would help industries that have suffered big losses in the recession, including retailers, homebuilders and newspapers.

Expanding the tax credit for money-losing companies is projected to cost $10.4 billion.

The tax breaks would be paid for largely by delaying a tax break for multinational companies that pay foreign taxes. It was passed in 2004 and originally was to have taken effect this year, but would now be delayed until 2018.

The bill is H.R. 3548.

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Just yesterday, the Senate unanimously approved a bill extending and expanding the first-time home buyer tax credit, which I wrote about earlier today.

Today, the House of Representatives voted 403-12 in favor of this bill, which may be signed by President Obama as soon as tomorrow.

The new bill extends the home buyer tax credit for purchasers who have a contract to purchase a home by April 30, 2010, and who close the transaction by June 30, 2010.

It also provides a tax credit up to $6,500 for current homeowners who have been in their homes for five of the past eight years and adhere to the same timetable.

Military personnel who are deployed overseas have a longer time period in which to claim their tax credit.

Furthermore, the bill increases the income limits for individuals from $75,000 to $125,000 and for couples from $150,000 to $225,000.

The tax credit only applies to home purchases up to $800,000.

Buyers must use the home as their primary residence and may not sell the home for a minimum of three years, or they have to repay the credit.

This is wonderful news for the housing market, which slowed as a result of the looming November 30 deadline.

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Lynn Michaels is one of the Top Producers in the Marlboro / Manalapanoffice of Weichert, Realtors. Whether buying or selling a home in Marlboro, Manalapan, Freehold or the surrounding areas, call Lynn for outstanding service and results.

Lynn Michaels (Cell) 908-804-3200 (Email) lynnmichaels@hotmail.com (Web) http://www.lynnmichaelshomes.com/

The Senate voted 98-0 to extend and expand the home buyer tax credit. The bill now goes to the House of Representatives, and if it passes, President Obama must sign the bill before it becomes law.

Under the Senate bill, first time home buyers must be under contract on their new home by April 30, 2010 and closed by June 30, 2010 to take advantage of the $8,000 tax credit. The bill would also allow current homeowners who have been in their homes for five of the past eight years to take advantage of a $6,500 credit if they buy a new home on the same timetable.

Income limits for the credits have been raised for individuals from $75,000 to $125,000 and for couples from $150,000 to $225,000.

The credit will only apply to homes selling under $800,000.

The National Association of Realtors and its members have done a great job raising awareness and lobbying Congress for this bill. In the next few days, we will probably see our efforts pay off!

I'll keep you posted!