$8000 Homebuyers Tax Credit Extended
By Les Christie, CNNMoney.com staff writer
November 6, 2009 3:18pm
NEW YORK (CNNMoney.com) -- President Obama signed an extension and expansion of the first-time homebuyers tax credit on Friday.
The $8,000 credit was scheduled to lapse on Dec. 1 but will now be in effect through the end of June. Homebuyers must sign a contract before April 30 and close by June 30. The income limits were also raised: Single buyers can now earn up to $125,000 and still get the full credit while a married couple can earn $225,000.
The bill also made more homeowners eligible to claim the credit on their taxes. First-time buyers -- those who have not owned a home in the past three years -- still qualify for an $8,000 rebate. But now people who want to trade up can also qualify. Those who have owned and occupied a residence for at least five years out of the past eight can claim a $6,500 tax credit if they close on a purchase by the end of June.
"The new version of the tax credit has the potential to stimulate the housing market even more than the old version due to the fact that more people will qualify under the new rules," said Gibran Nicholas, chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers.
Who qualifies?
Nicholas provided four scenarios illustrating how the tax credit rules for existing homebuyers will apply:
• Harry owned a home in 2001 and 2002 but sold it to relocate for a job. He would qualify for the $8,000 first-time-buyer credit because he has not owned a home in the past three years.
• Sue purchased a home in 2004 and has lived there since. If she decides to buy a new home, she would qualify for the $6,500 tax credit because she has lived in the same residence for five consecutive years in the past eight.
• Jane purchased her home in 2002, lived there for five consecutive years before she rented it out in 2007. She would qualify because she was an owner/occupier for at least five consecutive years in the past eight.
• Mark purchased a home in 2006 and lived there for the past three years. He would not qualify because he is neither a first-time homebuyer nor someone who lived in the same primary residence for five consecutive years out of the past eight.
How it helps the economy
Legislators and industry experts expect that the credit will encourage buyers such as Jane and Sue to move up their purchase plans.
"This bill will shift demand from the second half of 2010 into the first half," said Pat Newport, a real estate analyst with IHS Global Research. "As a result, home sales and prices will get a boost in the first half of 2010, with payback in the second."
That's not a bad thing, according to Bill Kilmer, vice president of advocacy for the National Association of Home Builders. It's important to stabilize real estate markets quickly to help bring the economy out of its tailspin.
The original $8,000 tax credit appears to have helped accomplish that goal: Home prices have inched up the past few months, according to the S&P/Case-Shiller Home Price Index.
Would it have happened anyway?
But critics still see the program as being ineffectual because it rewards buyers who would have purchased a home anyway. Newport estimates that fewer than 400,000 of the 2 million who have claimed the original credit made their purchases solely because of the tax advantages.
Furthermore, buyers do not, in reality, receive the entire benefit. "The credit helped prices stabilize," said Newport. "So the credit has been split between seller and buyer. The sellers are getting higher prices and buyers paying more than they would have without it."
The housing industry, however, is pleased with the extension, although the credit has not been quite as effective as they hoped.
The industry thought the credit would provide a ripple effect, with sales to first timers triggering as many three additional "move-up" sales.
That did not happen, according to Lawrence Yun, NAR's chief economist.
"It did not have the chain reaction impact it was supposed to," he said. "Instead, many first-timers turned to vacant, foreclosed or other distressed properties the sellers of which were unlikely to be move-up buyers."
So, the tax credit helped prop up the low end of the market without having much impact on the rest of the spectrum. Expanding the benefit to existing homeowners should boost those segments. That should produce additional benefits, according to Yun.
"Preventing further price decline or even nudging prices up a bit stabilizes housing wealth, which makes homeowners more comfortable in their spending," said Yun. "They're more likely to go out to the stores or buy a new car. That provides a boost to the overall economy."
Click Here to Search for Homes in Forsyth County GA or anywhere in Metro Atlanta!
Keller Williams Realty Receives Nod as the Highest Ranked in Customer Satisfaction J.D. Power and Associates names company highest in customer satisfaction for second year in a row
AUSTIN, TEXAS (September 2, 2009) -According to the J.D. Power and Associates 2009 Home
Buyer/Seller StudySM, Keller Williams Realty, Inc., the third largest real estate company in North
America, received the highest overall satisfaction ratings from home buyers among the largest fullservice
real estate firms for the second year in a row. The company also ranked second-highest
among home sellers in the study.
"We couldn't be prouder. This is an achievement our associates have truly earned. It is the face-toface
interaction and the relationships they build daily that has impacted this study and elevated Keller
Williams Realty to another level in customer service," said Mark Willis, CEO of Keller Williams Realty.
"Knowing that this study was conducted during the toughest times the market has seen shows that
spirit and dedication can make an impact."
The study was produced by J.D. Power and Associates to measure home buyers' and sellers'
customer satisfaction. The results of the home-buying experience were determined by three factors
including the agent, office and the package of additional services.
"I am absolutely beaming with pride that our agents have been honored in such a fantastic way," said
Mary Tennant, president and COO of Keller Williams Realty. "We are lucky to be in business with
such incredible business people, who have shown incredible resolve over the past two years. If there
was a time to build their business, it is now."
About Keller Williams Realty Inc.:
Call me today for help in finding your Dream Home in Forsyth County, GA. I have a full list of foreclosures, short sales, and new construction homes in the Cumming, GA Area. You can reach me at 678-852-8322.
Interested in finding out how much your home is worth? Go to www.cummingareahomevalues.com and find out now for free.
Don't let this Halloween drain your wallet! Click Here for great Homemade Halloween Costume Ideas that are guaranteed to fit any budget.
I know many are feeling the economic hardships of declining home values. Forsyth County GA has done better than most of Metro Atlanta Area with only an 8% decline in the Median Sale Price of Single Family Homes from August 2008 to August 2009. Today's Median Sales Price in Forsyth County GA is $247,800. Our number of sales during the same time period has declined by 34%. The Total Home Sales for 2009 YTD is 1,765 vs. 3,302 in 2008. All of my numbers come from Realist which compiles tax records for all of Metro Atlanta.
Don't be Tricked on your next real estate transaction. Make it a treat by working with Jennifer Mahota. Find out what Home Prices are in your Subdivsion by Clicking Here!
Call me at 678-852-8322 or email me at jenmahota@kw.com.
Jennifer Mahota
Realtor
Keller Williams Realty Atlanta Partners
678-341-2900
While it may seem that the Cumming Real Estate Market has see-sawed this year, I just want to let you know there are homes that are selling and buyers that are buying. In fact, this has been my Best Year ever in the most challenging market in decades! Of course my sellers have had to be realistic while my buyers are expecting huge bargains. It has not always been easy to make it a Win-Win situation, but that is always the goal.
What we are seeing now with the latest August data for Metro Atlanta from Steve Palm with Smart Numbers is a seasonal decline in the number of listings sold and the average sales price. I anticipate we will continue to have a slight downward trend through November. We usually see a slight uptick in December as buyers and sellers want to start the new year in a new home.
What I am finding is that residential detached new homes are at a lower inventory level than resale residential detached homes for sale in the Forsyth County GA Area East of GA 400. This inventory level is approximately 10.7 months for new vs. 15.3 months for resales. We have found that pricing in our area seems to be improving on a monthly basis unlike Metro Atlanta.
For those of you who travel SR 141 from McGinnis Ferry Rd. to GA 400, here is a link to check the progress of the road widening project: Click Here For SR 141 Information.
Please use the following links to help in your home search or to get the latest market information:
With all the information out there what is really true about the housing market? Is it up or down? The statistics for your local market don't lie! If you live in Forsyth County GA here are some statistics about our local market.
In Area 221(South by McGinnis Ferry, East of GA 400, West by Chattahoochee River/Hall County Line, and North by Dawson County Line) we have on average 15.3 months worth of inventory and are averaging 83 days on the market. From January - August 2009 our inventory of homes for sale is down. Sales of homes are up too. Our area prices seem to be holding steady. While statistics still reflect that home prices are selling at prices from the year 2000, homes are still selling.
If you are looking at homes for sale Cumming, GA, please call me at 678-852-8322 or email me at jenmahota@kw.com, I would love to help you with your home search.
If you are thinking of selling your home in Forsyth County, please call me for your FREE market analysis of your home.
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