There’s still time for a first-time home buyer to complete a transaction before the tax credit expires Nov. 30, says Diann Patton, consumer spokeswoman for Coldwell Banker Real Estate.
But home buyers who have to apply for a mortgage should make sure they have all the necessary paperwork in hand. Patton advises that they’ll need to have tax returns, income verification and bank statements, as well as completed applications forms ready to submit.
Buyers in a hurry to claim the credit should also avoid short-sale properties, Patton says, because that process can delay closings.
Source: USA Today, Sandra Block (10/13/2009)
Friday, October 23, 2009
Congress Debating the Tax Credit
Congress is considering expanding and extending the $8,000 first-time homebuyer tax credit, which expires Nov. 30.
More than 1.8 million home buyers will have used the credit by the end of November, including an estimated 355,000 who wouldn’t have bought a home without it, according to the National Association of REALTORS® and other analysts.
Mark Zandi, chief economist for MoodysEconomy.com, is among those in favor of extending the credit. Zandi would also make it available to all homebuyers. "The most fundamental argument for the credit is that nothing works in the economy if housing is falling," Zandi said. "[The credit] is a good insurance policy. It's vital to stem the housing price declines."
Opponents argue that the tax credit is too expensive and doesn’t help enough people.
Extending the credit through the end of 2010 and making it available to single filers earning up to $150,000 and joint filers earning up to $300,000 would cost an estimated $16.7 million. Some in Congress propose using unspent money from the $787 billion stimulus bill to pay for it.
Source: CNNMoney.com, Les Christie (10/14/2009)
More than 1.8 million home buyers will have used the credit by the end of November, including an estimated 355,000 who wouldn’t have bought a home without it, according to the National Association of REALTORS® and other analysts.
Mark Zandi, chief economist for MoodysEconomy.com, is among those in favor of extending the credit. Zandi would also make it available to all homebuyers. "The most fundamental argument for the credit is that nothing works in the economy if housing is falling," Zandi said. "[The credit] is a good insurance policy. It's vital to stem the housing price declines."
Opponents argue that the tax credit is too expensive and doesn’t help enough people.
Extending the credit through the end of 2010 and making it available to single filers earning up to $150,000 and joint filers earning up to $300,000 would cost an estimated $16.7 million. Some in Congress propose using unspent money from the $787 billion stimulus bill to pay for it.
Source: CNNMoney.com, Les Christie (10/14/2009)
Economists Predict Housing Recovery
Economic forecasters predict that 2010 will be the first year since 2005 for housing to contribute to the growth of the U.S. economy, according to a survey released by the National Association for Business Economics.
Home prices are expected to rise 2 percent next year, but forecasters don’t believe the increase in prices will discourage homebuyers.
More than 80 percent of economists surveyed by the NABE think the recession is over and recovery has begun, but they expect the expansion to be slow because unemployment persists.
Source: Associated Press, Mae Anderson (10/12/2009)
Home prices are expected to rise 2 percent next year, but forecasters don’t believe the increase in prices will discourage homebuyers.
More than 80 percent of economists surveyed by the NABE think the recession is over and recovery has begun, but they expect the expansion to be slow because unemployment persists.
Source: Associated Press, Mae Anderson (10/12/2009)
Good Housing News Predicted
All the leading indicators say housing is definitely on the mend, economists reported in advance of the official release of several pieces of good news expected this week.
Bloomberg News surveyed 53 economists and asked them where they expected the numbers to fall. Here are their predictions:
Google Inc. plans to resume hiring and acquisitions after its third-quarter sales beat analysts’ estimates. CFO Patrick Pichette says: “We weathered what is an incredible recession. If you have all this behind you, the only outcome you should have as management is: ‘OK, let’s build now.’”
Source: Bloomberg, Courtney Schlisserman (10/18/2009)
Bloomberg News surveyed 53 economists and asked them where they expected the numbers to fall. Here are their predictions:
- Construction starts in September are expected to hit a 610,000 annual rate, the most since last November.
- Sales of existing homes likely rose to a two-year high.
- Because of fear of a relapse, the Federal Reserve is predicted to leave interest rates low for a few more months.
- Building permits, a sign of future growth, probably rose to a 590,000 annual pace, also the highest level since November, the Commerce Department is likely to announce.
- The National Association of Home Builders/Wells Fargo index is expected to rise to 20 from 19, the economists say.
Google Inc. plans to resume hiring and acquisitions after its third-quarter sales beat analysts’ estimates. CFO Patrick Pichette says: “We weathered what is an incredible recession. If you have all this behind you, the only outcome you should have as management is: ‘OK, let’s build now.’”
Source: Bloomberg, Courtney Schlisserman (10/18/2009)
Practitioners Say Luxury Market Is Up
The luxury home market is picking up, according to real estate practitioners all over the country.
This trend is strictly anecdotal – no hard data yet. In fact, the National Association of REALTORS® say sales of homes priced above $2 million fell 39.1 percent in August compared to the previous year.
But Barbara Feldman, vice president with Saunders & Associates in Long Island, N.Y.’s community of Bridgehampton, says, "We've seen a significant upturn in activity in the last four to six weeks.”
And Charleston, S.C., associate Pat Broghamer with RE/MAX Advanced Realty, says buyers are “making investments in beach homes.”
Kevin Schmidtchen, an associate with Sotheby's International Realty in Santa Barbara, Calif., echoes the sentiment: "We've started to see a fair amount more pending and closed sales here in just the last two to three months."
Source: Investor’s Business Daily, Kathleen Doler (10/15/2009)
This trend is strictly anecdotal – no hard data yet. In fact, the National Association of REALTORS® say sales of homes priced above $2 million fell 39.1 percent in August compared to the previous year.
But Barbara Feldman, vice president with Saunders & Associates in Long Island, N.Y.’s community of Bridgehampton, says, "We've seen a significant upturn in activity in the last four to six weeks.”
And Charleston, S.C., associate Pat Broghamer with RE/MAX Advanced Realty, says buyers are “making investments in beach homes.”
Kevin Schmidtchen, an associate with Sotheby's International Realty in Santa Barbara, Calif., echoes the sentiment: "We've started to see a fair amount more pending and closed sales here in just the last two to three months."
Source: Investor’s Business Daily, Kathleen Doler (10/15/2009)
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