Thomas McCormack

As was hoped by many, Congress passed an extension of the First Time Homebuyer credit and expanded the program to include qualified current homeowners. New deadline isn't until June 30, 2010 for settlement, with contracts executed no later than April 30th. We saw many First Timers wait until the last minute and some executed contracts with insufficient time to close before the previous deadline of November 30, 2009. This will help them and hopefully bring many other buyers into the marketplace. Below are some details.

Tax Credit for Homebuyers

First-Time Homebuyers: First-time homebuyers (i.e. people who have not owned a home within the last three years) may be eligible for the tax credit. The credit is valued at 10% of the purchase price of the home, with a maximum credit of $8,000.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: This is new: the tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

New Deadlines

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Tax Credit Vs. Tax Deduction

It's important to remember that the tax credit is just that... a tax credit. The benefit of a tax credit is that it's a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Best of all, the tax credit is refundable, meaning the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $5,000 in income tax, she can still receive a check for the remaining $3,000!

Higher Income Limits

The amount of income someone can earn and qualify for the full amount of the credit has been increased. This will be welcome news to Monmouth County homebuyers where the median income tends to be higher than most other parts of the country.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price

Qualifying buyers may purchase a property with a maximum sale price of $800,000.

Just last week Highlands was the lucky recipient of some community outreach from over 30 sailors from the USS Nassau which was docked at Naval Weapons Station Earle.

They helped restore the Kavookijian War Memorial Field, an ongoing project, did some cleanup landscape work at War Memorial Monument nearby, and more.

Later in the week they volunteered at the Robert D. Wilson Community Center where their work included painting the skate park.

Read Carla Cefalo Braswell's full story visit www.highlandsnj.com. Photos courtesy of Ken Braswell/Shoregrafx and highlandsnj.com.

Since the National Association of Realtors made such a positive announcement today ("Big Rebound in Existing-Home Sales"), I thought I'd check to see how we're making out in our neck of the woods.

Good news! In Monmouth County, we're experiencing the same thing...

For single family homes September was up almost 15% for total number of homes sold compared with Sept '08. Unit sales were down from August of this year by a little less than 4%.

Overall we're still trying to compensate for the heavy reductions in sales experienced in late 2008 thru May 2009. Three of the past four months have shown an increase in unit sales. Despite this, unsold inventory remains high (although even that has shrunken somewhat (about 1.5% since last year.)

Many are pointing to the 1st Time Home Buyer Tax Credit (trying to beat the Nov 30th Deadline) which very well may be. Although the median sale price in September ($401,000) actually increased albeit ever so slightly.

All in all, still encouraging trends. I know there's lots in the news to make people feel a bit uneasy but hopefully even modest gains on the housing front will help rebuild confidence.

Is your seasonal pride showing? Does your front yard have a special Halloween, Thanksgiving or Harvest display? Then go get your digital cameras and enter Resources Real Estate's inaugural Peninsula Harvest Home Decorating contest. Tell them Thomas McCormack sent you!

Beginning this weekend, residents of Peninsula towns including Rumson, Fair Haven, and Little Silver are invited to submit photographs of their exterior autumnal decorations showcasing the creative, picturesque, and whimsical tastes of homeowners residing between the two rivers.

All Halloween, Thanksgiving, and fall house decorations will be considered.

As part of their community outreach program Sharing Resources, Resources Real Estate will donate a Thanksgiving pie for every home submitted to the contest to Lunch Break in Red Bank and will make a monetary donation to the firehouse of the winning home's town.

Entries can be submitted by uploading photos here or by depositing snapshots in the wall mailbox at the agency's 112 River Road address. Submissions can be made by the homeowner or nominated by another party such as a friend or neighbor.

Voting will take place in person as well as online and the winning homeowner will receive an exquisite floral table arrangement for their Thanksgiving setting to accompany their seasonal style.

Resources Real Estate owner Carolynn Diakon said, "We hope this contest will inspire homeowners to take advantage of the beautiful, seasonal resources our area has to offer in an effort to complement the exceptional architectural detail of Peninsula towns."

Diakon hopes the contest will become an annual event - one in which area residents will anticipate and plan for each year during the months leading up to and including autumn.

Every Monday through Friday, Lunch Break serves over 2,500 free hot meals each month at its location on 121 Drs. Parker Boulevard with another 400 meals being delivered to home bound seniors. The Pantry also provides groceries to those who need help and more than 500 children receive Christmas gifts. Social, medical and legal services are available onsite and clothing in good repair is handed out once each month.

Peninsula Harvest Home Decorating contest submissions can be made until Monday, Nov. 23 and the winner will be announced by a special guest at the Resources Real Estate offices on Tuesday, Nov. 24 at 10:00 a.m. For more information call 732-212-0440.

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