James Yoakum

The extension and expansion of the first-time buyer tax credit (now for some other buyers as well) passed through the Senate yesterday and should get through the house and onto the President's desk soon. The details of the expansion are:

$8,000 tax credit for first time buyers extended to those under contract by April 30, 2010 with 60 days to close after that.

Income limits increased to $145,000 for single taxpayers and $245,000 for married couples, with phaseouts beginning at $125,000 and $225,000 respectively.

Eligibility for up to $6,500 in tax credit is extended to repeat buyers who have lived in their home for at least five of the past eight years. These are typically the move-up buyers who will be selling to first-time buyers so this should really help to get the market moving for a few months (and of course lead to a bubble that has to deflate come next summer).

To be eligible for either credit the price of the home being purchased must be under $800,000.

If you're thinking of buying or selling this extension creates a limited-time window where the market should be quite active - strike while the iron is hot.

It may sound like a trick given that it's the day before Halloween, but this house in Darby, just outside Philadelphia could turn into a treat for a lucky essay writer. The owner is conducting an essay contest with a $100 entry fee - the prize for the best essay a free house. Check out this Daily News article for details.

The latest word on the $8,000 first-time-buyer tax credit is that it will be extended for a few more months, and that it will be at least partially expanded to some buyers beyond just first-timers, although the criteria they're using are a bit weird. The excerpt below is from Realtor.org:

"Lawmakers in the Senate have tentatively agreed to extend the existing $8,000 tax credit for first-time home buyers and also offer a new $6,500 credit for existing homeowners who have lived in their current residence for a consecutive five-year period in the past eight years. Home buyers must be under contract by April 30, 2010, and close before July 1. House Democrats have expressed concern about the cost of the tax credit for the government, and allegations of abuse have resulted in an IRS probe of the program..."

Hopefully they'll settle on something soon so that buyers who are out shopping now will know what they're dealing with, and those thinking of selling will have some idea of what to expect in terms of traffic from potential buyers.

According to Senator Bill Nelson (D-FL) passage of an extension to the first-time buyer tax credit seems likely. The most likely format for the extension will be an extension of the current $8,000 tax-credit program through March 31, 2010. After that the maximum tax credit would be reduced by $2,000 per quarter through the end of 2010. This seems like a reasonable way to ease the housing market off it's tax-credit addiction. It hasn't passed yet, but buyers who are rushing to close by November 30th - the current expiration date - may be able to breathe a little easier knowing that additional time is likely on the horizon.

With the Phillies one win away from another visit to the World Series it's easy to enjoy being in Philadelphia this fall. Making it even better are the numerous options for getting outside to enjoy the changing leaves and natural beauty. This online slideshow from Philadelphia Magazine highlights 9 local options for taking in the autumn beauty. Some of these hikes are within some of Philadelphia's most interesting urban neighborhoods, allowing for a day of hiking followed by a night out on the town all within the same zip code. My personal favorites from this list are:

• The Schuylkill River Trail - starting at the Philadelphia Museum of Art this paved trail is great for biking or running and easily accessible from Center City, Fairmount, East Falls, and Manayunk. People-watching along this trail is almost as much fun as checking out its numerous sculpture gardens and skyline vistas (on the West side of the river).
• Forbidden Drive - easy to get to from Manayunk, East Falls, Mt. Airy, or Chestnut Hill, Forbidden Drive offers a great mix of natural beauty and local history. See where the Battle of Germantown was fought, explore historic Rittenhousetown, have brunch at the charming Valley Green Inn, or if you're brave go for a swim in Devil's Pool. For a more strenuous hike take one of the clearly marked trails leading up into the woods on either side of the Wissahickon creek.
• The Manayunk Towpath - located just behind bustling Main Street Manayunk is this historic towpath along the Manayunk Canal. You can follow the towpath from Manayunk through Roxborough and all the way into Montgomery County to Conshohocken and beyond. It's great on foot or on a bike, and you're likely to see fishermen, kayakers, and plenty of fall foliage along the way. If you're thirsty after a long hike Manayunk offers countless options for a refreshing drink, some such as the Manayunk Brewery have outdoor seating right along the canal.

One great place to see nature that isn't on this list is the John Heinz National Wildlife Refuge in Southwest Philly. Even though it's just across I-95 from the airport this 1200 acre preserve can seem miles away from the hustle and bustle of the city. It offers ten miles of hiking and biking trails along with a nature center so that you can learn about the various wildlife you encounter (I've seen turkey, deer, osprey, blue heron, and even snakes). The lake is home to several species of fish as well although my efforts to catch them usually come up short. So, before it gets too much colder get out and enjoy the natural side of Philadelphia.