May Newsletter

Help for Buyers and Sellers!

Tax Credit Expires April 30th

Looking for a great deal on a home? April may be your best chance! The Extended Home Buyers Tax Credit offers current homeowners and first-time home buyers alike an incredible tax-saving opportunity when they buy a home through April 30, 2010. First time buyers, who haven’t owned a primary residence in the past three years, are eligible for a tax credit of 10 percent of a home’s purchase price, up to a maximum of $8,000. Current homeowners are also eligible for a tax credit of their own. Homeowners who have lived in their primary residence for 5 consecutive years of the past 8 are eligible for a tax credit of 10% of a home’s purchase price, up to maximum of $6,500.

The following conditions apply:

  • The tax credit is only awarded on homes purchased for $800,000, or less.
  • Full tax credit is available to buyers earning up to $125,000 a year, or $225,000 for married couples filing jointly.
  • Partial tax credit is available to buyers earning between $125,000 to $145,000, or for married couples earning between $225,000 to $245,000.
  • Under the rules, as long as a written binding purchase contract is in effect on April 30, 2010, the buyer has until July 1, 2010 to close.

Under the rules, as long as a written binding purchase contract is in effect on April 30, 2010, the buyer has until July 1, 2010 to close. National Association of REALTORS president Vicki Cox Golder said some buyers are just starting to realize the urgency involved. “If home buyers want this tax credit, there is literally no time to waste,” she said.

The tax credit is a dollar-for-dollar reduction in the buyers tax liability, and does not have to be paid back as long as the buyer remains in their home for three years or more. This is a once-in-a-lifetime offer to have Uncle Sam help you buy a house. Don’t let this opportunity pass you by!

In addition to the above information……this just in.

If you or someone you know has been serving in the military or the government outside the USA for 90 days, starting December 31, 2008, and ending May 1, 2010, they will qualify for an extension of this tax credit for one year. This means they must be under contract by April 30, 2011 and close by June 30, 2011.

Go to irs.gov for more information.

Stop Double Taxation, Protect Your Home

Existing Home Sales Report

The number of existing home sales declined nationally in February despite gains in the Northeast and Midwest. Sales were down 0.6% for the month of February, according to the National Association of REALTORS (NAR). Although levels dropped this winter, existing homes sales are on pace to reach 5.02 million units in 2010, which is up 7% from the 4.69 million-unit pace from February 2009.

Existing Home Sales By Region

Weather definitely played a part in the slowdown, says NAR chief economist Lawrence Yun. “Some closings were simply postponed by winter storms, but buyers couldn’t get out to look at homes in some areas and that should negatively impact near-term contract activity,” he said. “The key test for a durable recovery comes in the next few months as the tax credit deadline approaches. “If we see a surge in home buying comparable to last fall in the months leading up to the original tax credit deadline, then enough inventory should be absorbed to ensure a broad home price stabilization.”

Many buyers are taking advantage of the low mortgage rates available from today’s banks. Freddie Mac reported in February that a 30-year, conventional fixed rate mortgage was hovering in the high-4 to low-5 percent range.

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