Anita Zahn, P.A.

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The True Reason for Thanksgiving

Over time, myths and distortions have arisen, twisting the reason for Thanksgiving Day. For starters, the Pilgrims did not hold their harvest festival to thank the local Indians. Unfortunately, this myth is often perpetuated in schools and textbooks. Many children and adults now believe we celebrate the help given to the Pilgrims by Native Americans. If the Pilgrims were to visit this Thanksgiving, they would be shocked.

The Pilgrims focused on thanking and praising God for His love, for all that He had done for them, and for the freedom they enjoyed in the New World.

A glimpse into the history of Thanksgiving Day gives a greater appreciation of this great American holiday. Even earlier than the Pilgrims, people of faith set aside days for prayer and thanksgiving to God. Many times rather than a feast, they were a time dedicated to prayer.

It may come as a surprise to some that the word holiday is actually from old English compound word combining holy and day. Merriam-Webster dictionary defines holiday as "a day set aside for special religious observance."

The ancient Hebrews had many days set apart to worship, praise and thank God. Passover and Succoth are holy days of gratitude to God for His loving-kindness and deliverance from Egypt.

Early Americans often held days of thanksgiving in the various states and commonwealths. Washington and Madison each proclaimed a day of thanksgiving while president.

In October 1789, President George Washington signed a proclamation requested by Congress "to recommend to the people of the United States a Day of Public thanksgiving and Prayer, to be observed by acknowledging with grateful hearts the many and signal favors of almighty God, especially by affording them an opportunity peaceably to form a government for their safety and happiness."

Washington then assigned the twenty-sixth day of November "to be devoted by the people... to the service of that great and glorious Being who is the beneficent author of all the good that was, that is, or that will be;" and to "all unite in rendering unto Him our sincere and humble thanks for His kind care and protection of the people of this country..."

It was to remember, Washington said, God's "manifold mercies" and providence, "for the civil and religious liberty with which we are blessed," and, "in general, for all the great and various favors" He gave them.

In the dark days of the Civil War in 1863, Lincoln proclaimed, by Act of Congress, an annual National Day of Thanksgiving following a letter campaign promoting the idea by Sarah Hale. As a mother, widowed at the age of 34, Hale was the editor of the first woman's magazine in America and campaigned for over 40 years to make Thanksgiving a national holiday.

Lincoln's words are especially timely now with our soldiers fighting in Afghanistan and Iraq, "I do therefore invite my fellow citizens in every part of the United States, and also those who are at sea and those who are sojourning in foreign land, to set apart and observe the last Thursday of November...as a day of Thanksgiving and Praise to our beneficent Father who dwelleth in the Heavens."

He recommends that we "commend to his tender care all those who have become widows, orphans, mourners or sufferers" from the war and to look at the many blessings we have been given by God including "which are so constantly enjoyed that we are prone to forget the source from which they come... Almighty God..."

"...But we have forgotten God. We have forgotten the gracious hand which preserved us in peace and multiplied and enriched and strengthened us, and we have vainly imagine, by the deceitfulness of our hearts, that all these blessing were produced by some superior wisdom and virtue of our own..."

In conclusion, Lincoln says, "It has seemed to me fit and proper that God should be solemnly, reverently and gratefully acknowledged, as with one heart and one voice, by the whole American people..."

Even amongst the pain, upheaval and difficulties of the Civil War, the nation came together for a day of thanksgiving and praise.

Sadly, someone erroneously wrote in Wikipedia, "Thanksgiving Day is ... a time to give thanks for the harvest and express gratitude in general...While perhaps religious in origin, Thanksgiving is now primarily identified as a secular holiday." Maybe this is true for some Americans, but certainly not for all. And definitely not the way the "Mother of the American Thanksgiving," Sarah Hale visualized it.

Hale wrote, "Let this day...be the grand Thanksgiving Holiday of our nation, when the noise and tumult of worldliness may be exchanged for the laugh of happy children, the glad greeting of family reunion, and the humble gratitude of the Christian heart."

And Edward Martin wisely reminds us, "Thanksgiving Day comes, by statute, once a year; to the honest man it comes as frequently as the heart of gratitude will allow."

Warm regards,

With all the stimulus packages being floated out there at costs of up to $5,000 per tax payer (per program), the question comes begging about the Homebuyer Tax Credit.

"At $8,000 for each first-time homebuyer and now $6,500 for move-up buyers - how much is that going to cost the American taxpayers?" Good question. Not knowing how many people will be able to take advantage of it, we'll have to start with some guestimates.

Keep in mind, first, that about 4.5 million existing home sold in 2008 altogether and we have been on track to sell roughly the same in 2009.

For 2009, the tax credit was only for first-time buyers and up to $8,000 (10% of the sales price, not to exceed $8,000). So not everyone received the $8,000 if they purchased a house less than $80,000 - but let's go ahead and say they did for argument sake.

If the stats hold true, and that is about half of all buyers are first-timers, then there were 2.25 million buyers that qualified (assuming they didn't go beyond the income limits - which many did). But for simplicity, we'll say they all qualified.

Simple math puts the tax credits at $18 billion for 2009 that doesn't have to be paid back. For all the money that's being floated out there to stimulate the economy, this is probably the best plan in play.

Now, before all my conservative friends blow a vein behind their eyeballs that are now popping, here's what happens when a homeowner purchases a house (vs., say when someone buys a car or some other depreciating asset). They spend money on it. Lots of money.

The foreclosures/short sales that have made up most of the market for the last 2 years are mostly in paltry condition and need paint, carpet, appliances, countertops, cabinets, windows, landscaping, rot replacement, sump pumps, mold remediation, heat pumps, etc.

Unless you saw these houses, you just wouldn't understand. I'm not talking "updating" homes that would otherwise be in good living condition, but making them inhabitable altogether. In fact, regular home buyers like you and me can't even finance many of these houses because of the condition they're in.

People get into a tizzy about home flippers swooping in and making "all this money" by flipping a house. Let me tell you - without the flippers some of these houses would completely fall apart. Remember, that lenders WON'T LEND MONEY on a house without complete bathrooms, that are mold invested, lack certain appliances, etc. And the REO banks WON'T fix them up to sell them. They just let them deteriorate while they wait for a buyer.

Enter the investor/rehabber who purchases the house with either cash or off-line financing, then fixes it up to pristine condition, sells it at a fair price and moves on to the next project. They are providing a much-needed service to even make the houses salable, much less inhabitable.

Now, as the market turns around in city after city (that's what the increase in pending sales is all about across the country), we'll see an increase in sales and a use of the home buyer tax credit to fix up the housing pool.

The tax credit for home buyers has played its role and now it will go away April 30, 2010. The question for consumers is will they recognize and act on a good deal when they see it?

Check other local areas for more detailed information posted by real estate professionals who live and work in the area.


National Summary (U.S.)

Contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001, according to the National Association of REALTORS^®.

The Pending Home Sales Index,¹ a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008 when it was 87.1. The index is at the highest level since June 2007 when it was 100.7.

Lawrence Yun, NAR chief economist, said the housing market momentum has clearly turned for the better. "The recovery is broad-based across many parts of the country. Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit," he said.

"Other buyers are taking advantage of low home values before prices turn higher. Nationally, the typical mortgage payment now takes less than 25 percent of a middle-income family's monthly income to buy a median priced home, with payment percentages so far in 2009 being the lowest on record dating back to 1970. As long as home buyers stay within their budget, mortgage payments will be very manageable," Yun said.

NAR estimates that about 1.8 to 2.0 million first-time buyers will take advantage of the $8,000 tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit. Buyers have little time to act because they must complete the transaction by November 30 to qualify for the credit. Unless extended, contracts signed but not completed by that date will not be eligible -- it is taking approximately two months to complete home sales in the current market.

The Pending Home Sales Index in the Northeast declined 3.0 percent to 78.8 in July but is 4.7 percent higher than July 2008. In the Midwest the index slipped 2.0 percent to 88.1 but is 8.1 percent above a year ago. In the South, pending home sales activity rose 3.1 percent to an index of 103.8 in July and is 12.0 percent above July 2008. In the West the index jumped 12.1 percent to 112.5 and is 20.0 percent above a year ago.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said Congress needs to keep the momentum going. "Even with a good recovery taking place, the market is not yet back to normal. With a gradual absorption of inventory, we are on the cusp of a general stabilization in home prices," he said.

"To ensure that housing has a broad stimulus to the overall economy and stays on sound footing, we're encouraging Congress to extend the tax credit into 2010, and to expand it to all buyers of primary residences. The faster we stabilize home prices, the fewer families will face foreclosure and the quicker credit can be extended to other sectors of the economy," McMillan said.

NAR's Housing Affordability Index² stood at 158.5 in July, below the peak set in April but is still 36.0 percentage points higher than a year ago. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.

Yun expects existing-home sales to rise through the fourth quarter. "Unless the tax credit is extended, no one should be surprised to see home sales drop in the first quarter of next year," he said. "However, the fundamentals of the housing market and the economy are trending up, and we expect home sales to generally pick up in the second quarter of 2010. The buyer psychology may be shifting from, ‘Why buy now when I can purchase later,' to ‘I don't want to miss out on a recovery'."

The National Association of REALTORS^®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

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¹The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

²The Housing Affordability Index is a relative index where a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced existing single-family home, taking into account the relationship between median home price, average effective interest rate for loans closed on existing homes, and median family income. The higher the index, the better housing affordability is for buyers.

The calculation assumes a downpayment of 20 percent and a qualifying ratio of 25 percent of gross income for mortgage principle and interest payments. The index is a general gauge with conditions varying widely around the country. Affordability conditions are lower for first-time buyers with smaller downpayments and less income.

Monthly publication of the index began in 1981 with annual data calculated back to 1970.

Existing-home sales for August will be released September 24; the next Pending Home Sales Index will be on October 1.

The National Association of REALTORS^®, "The Voice for Real Estate," is America's largest trade association, representing more than 1.2 million members involved in all aspects of the residential and commercial real estate industries.

October 1, 2009 to October 31, 2009

80 Residential Single Family Home Listings Sold.

24 of them were Short Sales, Foreclosures or Bank or Corporate owned.

Average Days on Market 148

Median List Price $113,750

Median Sold Price $105,000

Extended Home Buyer Tax Credit 2009/2010

This is what we all have been waiting for.

Its even gets better, all those current home owners that wanted a Tax Credit. ITS HERE!!!

CURRENT HOME OWNERS CAN NOW PURCHASE A HOME AND RECEIVE A TAX CREDIT.

• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a "first-time home buyer" the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer's Credit Amount Determined?

Each home buyer's tax credit is determined by two additional factors:

1. The price of the home.
2. The buyer's income.

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000-may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.

If the Buyer(s)' Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income-over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as 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.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.