Tax Credit Extended and Expanded

Great News for First-Time Homebuyers and Move-Up Homebuyers! Congress has enacted legislation, which the President has signed, extending and expanding the First-Time Homebuyer Tax Credit.

The extension for First-Time Buyers expires April 30th. This means that you must be under contract by April 30th and close your home purchase by June 30th. First-Time Buyers can qualify for a tax credit of 10% of the purchase price up to $8,000.00

The legislation passed expands the tax credit to "move-up" buyers as well, meaning current homeowners who have lived in their home for 5 out of the last 8 years, who purchase another primary residence, can qualify for a credit up to $6,500.00.

For more information go to www.federalhousingtaxcredit.com

Congress Seeks to Expand Tax Credit for Homebuyers!

Bloomberg reports, that Congress is seeking to expand the Home buyer Tax Credit to all purchasers, increase the credit to $15,000.00 and remove income and other restrictions on the current First Time Home buyer tax credit.

The Bill sponsored by Senator Johnny Isakson, a Georgia Republican is co-sponsored by Democrat Christopher Dodd, Senate Banking Committee Chair. The legislation also seeks to allow purchasers to utilize the tax credit in the purchase of multi-family homes used as the purchaser's primary residence.

Many economists feel that the housing market continues to be a drag on the national economy and remains a stumbling block to a recovery. The hope is that the proposed legislation will help reduce the current housing inventory and stimulate activity among home purchasers outside of the first-time buyer group.

Should I Buy a Foreclosure Property?

With the glut of foreclosed properties that we currently have on the market, a lot of first time buyers are thinking about purchasing foreclosed homes. Here's a short video that will explain some of the pros and cons of purchasing this type of real estate

Will Homebuyer Tax Credit Provide Hope for the Real Estate Market?

Yesterday, the Senate added a provision to President Obama's stimulus package to help the housing industry. Any homebuyer, not just first-time buyers, can earn a tax credit of 10% of the purchase price of their new home, up to $15,000. The bill hasn't passed yet, but pundits believe that it should come to the floor for a vote by Friday, with the tax credit intact.

This is great news for the real estate market! If it passes ALL homebuyers, not just first-time buyers, will be able to take advantage of lower home prices, a large inventory to choose from, historically low interest rates and the tax credit. There's never been a better time to buy!

Pending Home Sales Rise by 6.3% in January!

The National Association of Realtors announced that pending home sales rose by 6.3% in January, fueled by bargain prices and lower interest rates. While its way to early to believe that the housing slump has passed, it is encouraging news. Many buyers are taking advantage of the lower prices and with interest rates hovering around 5%, many are discovering that mortgage costs can be cheaper than rent in some areas.

Personally, my activity in January was encouraging, with 3 contracts written for buyers and 2 closings. Most of the activity was with first time buyers, who have realized that its better to buy now with reduced prices and plenty of inventory to select from, rather than at the peak of the market when prices are high and there are less houses to choose from.

A lot of buyers have taken advantage of the $7,500 first time buyer tax credit, which expires on June 30th, 2009. So, although the economy may see tough right now, there are some great opportunities in the housing market. There's even a financing program perfect for those bank owned properties that need work - FHA's 203K Loan, which allows rehab costs to be rolled into the mortgage. I'm working on one with a buyer right now that, once completed, will give the buyer over $10,000 in instant equity, even in this so called "down" market.

So, even with a tough economy, there are opportunities for buyers in the housing market. If you've got solid employment and decent credit, buying a home may just be one of the best decisions to make in 2009!