Income limits are very generous for those who buy between now until April 30, 2010:
While the $8,000 tax credit is getting a lot of use, Realtors are seeing very few existing homeowners taking advantage of the $6,500 tax credit.
The housing tax credits were extended under the H.R. 3548 Worker Homeownership and Business Assistance Act of 2009
DHW asks: Will you take advantage of the housing tax credits?
]]>“Contract activity for pending home sales fell after a surge of activity in preceding months to beat the original deadline for the first-time home buyer tax credit but remains comfortably above a year ago, according to the National Association of Realtors®.
The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in November, fell 16.0 percent to 96.0 from an upwardly revised 114.3 in October, but is 15.5 percent higher than November 2008 when it was 83.1.”
DHW asks: Are pending sales down in your area?
]]>Animosity between real estate agents and appraisers is nothing new. However, in recent months appraisers have been undercutting sales prices with increased regularity. Much of the conflict has to do with the rising number of foreclosures selling at discount prices. Approximately 40 percent of the homes to sell last year were either foreclosures or short sales. Adding to the drama, buyers are placing a 30% premium on non-foreclosed homes, according to zillow.com.
Appraisers admit that it is getting tougher to determine a home’s worth in today’s market. Some real estate agents, however, blame the appraisal cuts on cost cutting measures taken by lenders. Oftentimes, lenders will use an in-house appraiser or outsource to an out-of-area, low-cost appraiser. Either way, these appraisers may not be familiar with the markets they are hired to gauge.
The silver lining
With appraisal cuts on the rise, this may be a sign that some markets are beginning to stabilize. In a declining market, it becomes easier to find comparable sales for an appraisal. As prices rise, appraisers have a tougher time finding sales that support the higher prices. It’s just one of the growing pains that come with a recovering market.
DHW asks: Are you seeing a rise in appraisal cuts in your market?
]]>DHW asks: Would you consider a career in real estate?
]]>“SAN DIEGO – Nov. 13, 2009 – According to the National Association of Realtors@ (NAR), the recent homebuyer tax credit extension expands benefits for the U.S. military.
Armed service, intelligence service and foreign service personnel on active duty and out of the U.S. for 90 days during any part of 2009 get an additional year to buy their homes – to May 1, 20ll.
Another benefit is a waiver on the time of occupancy. Most homebuyers using the tax credit must use that home as a principal residence for a period of no fewer than three years or forfeit the entire credit. But military, intelligence and foreign service members do not have to repay the credit if they sell their home in less than three years if they move because of official business.
“NAR is the leading advocate for private property and homeownership issues, and firmly believes that those who are in service to their country should be full participants in the homebuyer tax credit law,” says NAR President Charles McMillan. “These men and women are often hindered by hardships from full participation in the American dream of homeownership because their duty disrupts them in the buying and selling of a home.” NAR was a main advocate for the homebuyer’s tax credit extension into 2010 and its expansion to include present homeowners.
Under the tax credit extension, eligible first-time homebuyers can get a tax credit up to $8,000. Current homeowners are eligible for a $6,500 tax credit, provided they have lived in the home they are selling, or have sold, as their principal residence for five consecutive years in the past eight years.
Income limits for eligible homebuyers are expanded to $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000. To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.”
]]>There are 129 days until the housing tax credits run out. For more details about the housing tax credits, visit our Housing Tax Credit page.
DHW asks: Do you think homes sales will continue to exceed expectations?
]]>DHW asks: Have you sold your home as a short sale? If so, how was your experience?
]]>The housing industry’s index represents offers written and accepted for existing properties. All parts of the country saw a year-over-year increase in pending home sales.
Housing tax credits and record low interest rates are credited with boosting sales. First-time homebuyers qualify for a tax credit of up to $8,000, while those who have owned their current home for at least five years qualify for a tax credit of up to $6,500. Buyers must have a signed sales agreement by April 30, 2010, and close by the end of June 2010 to qualify.
DHW asks: Will you take advantage of the houisng tax credits?
]]>“Home sales far exceeded expectations last month, surging to the highest level in 2 1/2 years as first-time buyers rushed to take advantage of an expiring tax credit.
The National Association of Realtors said Monday that home resales rose 10.1 percent to a seasonally adjusted annual rate of 6.1 million in October, from a downwardly revised pace of 5.54 million in September.”
]]>The Commissioner sought to minimize these concerns, reporting the agency had $31 billion in capital – an increase of $3.5 billion from a year ago.
Stevens went on to say that the FHA is “the only participant in home financing services in the U.S. economy that hasn’t needed a bailout, hasn’t needed (funds from the government’s Troubled Asset Relief Program), hasn’t needed special assistance and is still completely self-sustaining.”
The AP reports the FHA has insured almost 25 percent of all new loans made in 2009. Eighty-percent of these loans represent first time home buyers.
Stevens rejected comparisons between the FHA and the subprime market. “Nothing could be further from the truth,” he said, stressing the FHA has far more stringent underwriting guidelines for the loans it insures.
As the unemployment rate has risen, so have FHA’s losses. According to the Mortgage Bankers Association, approximately 17 percent of FHA borrowers are at least one payment behind or in foreclosure. This compares with 13 percent for all loans.
The FHA does not make loans. It insures against default, taking much of the risk away from lenders. FHA loans have grown in popularity in recent years as credit markets have tightened up. The agency’s 203K rehab loan is also growing in popularity as more first-time home buyers purchase foreclosures.
DHW asks: Do you think the FHA is at risk of needing a government bailout?
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