TAMPA, Fla. - Nov. 17, 2009 - Real estate agent Ken Brownlee's phone stopped ringing last month once clients figured they would be unable to close before an $8,000 federal tax credit expired.
Most of his buyers were first-timers looking for a sweet deal on a short sale or foreclosed home.
"They all want to grab a deal," said Brownlee, an agent with Keller Williams.
Those buyers now have another chance since Congress extended the program earlier this month. Real estate agents say it could mean a boon for sales.
First-time buyers can get a credit up to $8,000 and other buyers are eligible for a credit of $6,500, as long as they've lived in their home for at least five years. Congress also expanded it to include some buyers who already own homes.
Business picked up immediately, Brownlee said.
"As soon as it passed, I started to get a lot more phone calls and website hits on my listings," he said. "This tax credit will likely carry us through the normally slow season."
That's good news for the Bay area's fragile housing market. As the area continues to see improvement in home sales, real estate agents say the tax credit is essential in selling off inventory. Home prices have plummeted and that has enticed buyers to act, but many are still on the sidelines.
Home sales in the Tampa-St. Petersburg-Clearwater area increased 20 percent in the third quarter, which ended Sept. 30. Experts credit the increase mainly to first-time buyers trying to take advantage of the tax credit.
There were 7,795 sales in the quarter, up from 6,502 during the same period a year ago, according to the Florida Association of Realtors. At the same time, the median sales price fell 17 percent to $140,400.
One reason is that so many people feel stuck in their homes. They want to take advantage of deep discounts, but they have to sell their existing home in order to move up. With nearly half of Tampa Bay's homeowners owing more than their home is worth, many can't afford to move.
That's why the tax credit will help, said Stephanie LeFew, a real estate agent with Tampa Home Buy Realty. She's had a number of clients decide to stay in their homes because they couldn't sell for enough to make a move worth it.
"For some people, the credit will be just enough of a boost," she said.
Mike Larson, an analyst with Weiss Research, said home sales would likely continue to improve, even without the tax credit. Even so, he expects the credit to lure more people into the market.
"The credit is the icing on the cake, not the cake itself," he said. "What's really leading to improvement is that homes are affordable again. If you throw an expanded credit into a market that already has good fundamentals, the market will respond."
To take advantage of the credit, a prospective buyer's home has to be under contract by April 30 and the deal must close by June 30.
Copyright © 2009 Tampa Tribune, Fla., Shannon Behnken. Distributed by McClatchy-Tribune Information Services
Please let me know how I can help YOU attain your dream of home ownership. Call me on my cell phone please.
Warmly,
Stephanie LeFew
Tampa Home Buy Realty
813-624-3332
When my husband and I were seriously dating we had visited a home where the mother had a regular school room set up in her home, I got very excited. I always wanted to have children and the thought of home schooling them really excited me. My husband agreed. We were married.
When our daughter was born I quit my regular full time job at a bank and came
home to raise both of our children. Now that my income was gone, my husband and I wondered what would replace my income. We were living in our modest townhome and kept our expenses low.
The Lord led us into real estate. We began learning about shortsales and worked together in the field. I then took a class and got my real estate license in 2002. This year I took another real estate class and got my Real Estate Broker's license and started my own realty, Tampa Home Buy Realty.
Amongst all that we do, we have learned what works best for us in working in our children's learning which is so very important.
In the morning, I get the kids fed and start them off with their spelling, and then onward towards literature, history, science, math and Bible study. During the day if I have showings scheduled or need to talk with customers I do that in between their lessons. It all gets done, and done well.
I am really excited at how this year is going!
Have a wonderful day of learning!
Warmly,
Stephanie LeFew
Real Estate Sold in Tampa Bay Florida
www.TampaHomeBuy.com
Awesome Realtor, at your service :)
813-624-3332
President Obama signs into law -- Current homeowner tax credit:
An existing homeowner who purchases a home may now claim a tax credit of up to $6,500. To qualify, that owner must have owned and used the same residence as a principal residence for any consecutive five-year period in the previous eight years.
· This new tax credit is effective immediately. Eligible homebuyers do not have to wait until Dec. 1 to close in order to qualify.
· Personal income limits, maximum home value, and contract/closing deadlines are the same as those for first-time homebuyers - Here is what is what is in place for First time home buyers :income limits rise to $125,000 for singles and $225,000 for married couples; up from limits effective through Nov. 30 of $75,000 for singles and $150,000 for married couples. The tax credit phases out incrementally at each $20,000 increase in income. Effective immediately: The maximum home value purchased cannot exceed $800,000. Prior to the law being signed, first-time homebuyers had no limitation on a home's cost.
Long-time Florida homeowners who enjoy discounted property taxes resulting from the state's Save Our Homes amendment qualify for property tax portability.
Considering a move up? Call me about current real estate for sale in your favorite neighborhoods.
Warmly,
Stephanie LeFew
Tampa Home Buy Realty
813-623-3332 cell / 813-991-1355 office
Buyer Incentives Available! My Services are FREE to Buyers
First Time Homebuyer Tax Credit of 2009 has been extended into 2010.
Most details for first-time homebuyers mirror the rules currently in existence. The maximum tax credit remains $8,000 ($4,000 for married individuals filing separately), and anyone who has not owned a home within three years is considered a "first-time buyer."
· A purchase must be under contract by April 30, 2010.
· A purchase under contract by April 30 must close no later than June 30, 2010.
· After Dec. 1, 2009, income limits rise to $125,000 for singles and $225,000 for married couples; up from limits effective through Nov. 30 of $75,000 for singles and $150,000 for married couples. The tax credit phases out incrementally at each $20,000 increase in income.
· Effective immediately: The maximum home value purchased cannot exceed $800,000. Prior to the law being signed, first-time homebuyers had no limitation on a home's cost.
This is wonderful news for those that needed a little extra time in getting ready to purchase a home.
With Tampa Real Estate prices so low, as well as very favorable mortgages with low interest rates, and the extension of the Homebuyer Tax Credit, all indications are that now is the best time to take advantage of the market conditions before home prices rise.
There are also 100% Financing Available in some large areas in Tampa Bay Florida. Other options are 97 1/2% FHA Financing, as well as 100% Financing on VA Loans. Your closing costs can be rolled into your loan or paid by the seller. It's a Win Win Win situation.
Please let me know if there is any way that I can assist you in finding a home of your very own so that you can personally attain Your Dream of Home Ownership.
Give me a call on my cell phone. Looking forward to hearing from you.
Warmly,
Stephanie LeFew
Tampa Home Buy Realty
813-624-3332 cell phone
Tampa Realtors and Tampa Real Estate for Sale at Reduced Prices
Buyer Incentives Available AND My Services are FREE to Buyers
Real estate investors are moving back into the market, according to a recent survey --
12.1 percent of home buyers today plan to buy a home as an investment property, compared to 5.6 percent in March 2009. The survey found that 15.8 percent of those interested in investment property were men and 8.1 percent were women and 52.6 percent of the investment buyers were between ages 35 to 49.
Of the 25.3 percent of buyers who are focusing on foreclosure properties, 42 percent regard the purchase they are considering an investment and don't plan to live in the property themselves; 13.2 percent plan to rent out the property; 11.3 percent are going to fix up the property and resell it; and 17.4 percent plan to house a family member until the property can be sold profitably.
Of the 9.8 percent of buyers who say that they plan to purchase and live in a property in the next two years, 5.4 percent plan to purchase in the next 12 months; 48.3 percent are first-time buyers; 52.8 percent are women, and 44.1 percent are men.
Buyers of investment and personal property say they are motivated by these factors:
Interested in investing in the Tampa Bay Florida Real Estate? Call me so that I can let you know about the current mls listings of shortsales, bank owned homes or REOs, and new home builder inventory.
Our Services are FREE to buyers. Also Buyer Incentives are Available when you use Tampa Home Buy Realty when you purchase a home.
Looking forward to hearing from you.
Warmly,
Stephanie LeFew
813-624-3332 cellular
813-991-1355 office
Tampa Home Buy Realty
Tampa Realtors and Tampa Investment Properties from fixer uppers to Luxury Waterfront
Stephanie LeFew & TampaHomeBuy.com here to serve 1st time home buyers,home buyers,investors,sellers,& sellers who need to sell quickly. I am here to offer my knowledge to you in this changing market.
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