Tax Credit Extension Approved!
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To: All REALTORS® From: Vicki Cox Golder, 2010 NAR President Date: July 1, 2010 Re: NAR Update: Tax Credit Deadline Extended; Flood Insurance Program Reinstated Dear fellow REALTORS®, |
I am happy to report that Congress has passed a bill extending the Homebuyer Tax Credit closing deadline to September 30, 2010. This is a huge win for REALTORS® and homebuyers, and NAR worked closely with members of Congress to make it happen. The extension applies only to transactions that had ratified contracts in place as of April 30, 2010, and have not yet closed. There will be no gap between June 30 and the date the President signs the bill into law.
Additionally, Congress has extended the National Flood Insurance Program (NFIP) through September 30th. The bill is retroactive and will cover the lapse period from June 1, 2010, to the date the law is enacted. NAR will continue to work with Congress on the NFIP Reform bill, and we will keep you posted on those efforts.
For additional information on both the tax credit deadline and the NFIP, visit Realtor.org/Government_Affairs.
Neither of these bills would have passed without your support. Nearly 83,000 REALTORS® responded to our latest Call for Action, sending more than 250,000 letters to Congress asking them to extend the National Flood Insurance Program. I know many of you also raised your voices in support of extending the tax credit deadline.
On behalf of NAR, I thank you, and I ask that you visit the RealtorActionCenter.com and make your voice heard on every issue.
Sincerely,
Vicki Cox Golder, CRB
2010 NAR President
Posted via email from WWW.THESHALLISGROUP.COM
Home Buyer Tax Credit Still Not Over
If you think the home buyer tax credit is over and done with, think again…
Although the home buyer tax credit expired on April 30th, buyers with signed contracts have until June 30th to complete their purchases. With that deadline just around the corner an estimated 180,000 consumers are in jeopardy of missing the deadline and, as a result, missing out on their tax credit.
What’s getting in the way of 180,000 new home owners qualifying?
This one’s a no-brainer, bureaucracy! Due to consumers rushing to meet the April 30th deadline, causing new home sales to rise 15% in April, a huge backlog in the paperwork process was created making the June 30th deadline near impossible for almost two hundred thousand buyers. So, who’s coming to save the day? You guessed it again, the bureaucrats! The Senate voted on Wednesday to allow consumers an additional three months to get their deals completed, giving them an extension from June 30th to September 30th.
Although a vote still needs to take place in the House of Representatives, it seems likely that the legislation will pass. So what does the National Association of Realtors have to say about it? Vicki Cox Golder, president of NAR, said, “These are not buyers who just entered into the market. These are buyers who previously met all the qualifications for the tax credit, but find themselves at the mercy of a work-flow jam with the lenders or other delays and might not be able to complete the purchase of their homes.”
Want to know how your Senator’s voted? Check out the roll call here.
Does your Realtor truly know what’s going on in the ever changing real estate market? Professional knowledge and experience is what you need. Call Sean T. Shallis immediately at 1-800-295-5995 x.911 or contact us on our website to work with the “Market Makers” and get the deal you deserve!
Home Buyer Tax Credit Leads to more Fallout
Looks like the Trickle Down effect is actually Trickling UP!
An recent Associated Press article shows home builders less confident in housing market:
WASHINGTON — Home builders are losing confidence in the housing market now that government incentives that spurred home sales have ended.
The National Association of Home Builders said Tuesday its housing market index fell to 17 in June, sinking five points after two straight months of increases. It was the lowest level since March. Builders had been more optimistic earlier in the year when buyers could take advantage of tax credits of up to $8,000. Those incentives expired on April 30, although buyers with signed contracts have until June 30 to complete their purchases. Thanks to the credits, sales of new homes rose nearly 15 percent in April. That followed a nearly 30 percent surge in March, the biggest monthly increase in 47 years.
But now that they are gone, “the reduction in consumer activity may have been more dramatic than some builders had anticipated,” said Bob Jones, a builder from Bloomfield Hills, Mich. and the Washington-based trade group’s chairman.
Many experts anticipate home sales will slow in the second half of this year. In addition, high unemployment and tight mortgage lending continue to keep many buyers on the sidelines.
The trade group’s index is made up of three components. The reading for current sales conditions fell one point to 16, while the index measuring expectations for the next six months fell two points to 26. The index measuring foot traffic from prospective buyers held steady at 13.
The report reflects a survey of 344 residential builders nationwide.
OK…So at the bottom of the article it says, “Post your thoughts” ?
Thinking to myself, it’s not rocket science here kids..Does your real estate professional truly “Get It” ?
These are some actual comments we shared with one of our presenting customers yesterday morning!
Dear Tom Jones,
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending June 4 declined 12.2%. Refinancing applications fell 14.3%. Purchase volume decreased 5.7%.
Does your real estate professional truly “Get it” ? Stop making decisions based on the News.. Call me immediately 1-800-295-5995 x. 911 to work with the “Market Makers” and get the deal you deserve!
Home Prices Drop as the Tax Credit Expires
As expected, after the glitz and glamour, the market is settling in! I’ve been calling for 3-5% declines before we hit bottom. How much is “in-decision” costing you?
Homebuyer Tax Credit Passes in Congress
Urgent update on the first time home buyer tax credit…
Great news for both Buyers and Sellers!
Both the House and Senate pass through legislation to extend and expand the first time home buyer tax credit. This new legislation will extend the current $8,000 tax credit, which would have expired November 30, to the new date of May 1, 2010. In addition to the tax credit extension for first time buyers, this new legislation adds a $6,500 tax credit to repeat buyers as long as they have lived in their home for five of the last eight years. Eligible home prices must be under $800,000. Additional requirements include an income limit of $125,000 for individuals and $225,000 for joint buyers.
Home buyers who have a signed contract by April 30, 2010 will also be allowed another 60 days to close on the property. For those in the military serving overseas between January 1, 2009 to May 1, 2010, the credit has been extended another year.
In addition to the tax credit news, the chairman of the Federal Reserve, Ben Bernanke, announced this week that interest rates would remain at their current level for some time to come. This is great news to the real estate market and, more importantly, to potential buyers.
Now is the time to stop looking from the sidelines and start BUYING IMMEDIATELY! We may never see another time in the real estate market where the prices and interest rates remain historically low!
Your Uncle Sam is saying, “BUY NOW…I’ll even give you some money to help you out in the way of a tax credit incentive”… NOW is the time to take advantage of the real estate market. There are plenty of Hoboken and Jersey City properties available to meet your needs and qualify for the tax credit.
To capitalize on this amazing opportunity, call me immediately. My direct number is 201-427-1032… Say, “Your Uncle Sam told you to call”!
In this real estate market finding experienced real estate help is essential. Please contact Sean T Shallis at The Shallis Group for a personal consultation on your buying or selling needs at 201-427-1032.
First Time Home Buyer Tax Credit: Extension gets approval from Obama
The first time home buyer tax credit, which expires November 30, gets an approval from the Obama administration for an extension and expansion.
The $8000 tax credit given to qualifying new home buyers has undoubtedly given the real estate market a bolster in the right direction. What happens once the tax credit is gone is up for great debate. Fortunately, and with a sigh of relief, it looks as though the real estate market will get a reprieve from the upcoming deadline with an extension endorsed by the Obama administration.
The tentative agreement reached in the Senate would not only extend the current tax credit, it would also expand to include current homeowners wanting to move. The credit being discussed for current homeowners who move could come to $6500 provided they purchase their home before the new deadline, which could come in April. Reportedly, in order for current homeowners to qualify for the new tax credit, they must have resided in their current home for five years.
So when will the speculation be over?
Any of the several purposed tax credits have still yet to hit the floor of Congress for a vote. Although, with the endorsement from the Obama administration, pressure is certainly being applied to get this done quickly.
Is all the fuss about the tax credit worthwhile?
This is a great question with numerous answers depending your personal situation. For example, for the first time buyer with a individual income of $75,000 or less annually or a combined income of $150K or less for married couples, it’s an additional 8K in their pocket!
In contrast, for the buyer who has owned in the past 3 years and/or earns more than the maximum income guidelines, extending the credit will have very little ‘direct impact’ to their personal situation. Even with the possible expansion for repeat buyers, they must have owned the residence they are selling for five consecutive years. With regards to the sellers, the answer becomes more complicated. If your considering selling your home in the near future I would suggest calling me immediately at 201-427-1032 for a personal and confidential conversation in regard to the impact of the credit.
With interest rates still at an all time low and the tax credit incentive still available, this is the time to take advantage of the real estate market. There are plenty of Hoboken and Jersey City properties available to meet your needs.
In this real estate market finding experienced real estate help is essential. Please contact Sean T Shallis at The Shallis Group for a personal consultation on your buying or selling needs at 201-427-1032.
(additional source: cnn.com)
Hoboken Real Estate: What will happen when the tax credit ends?
The Pending Home Sales Index continues to climb. However, will it continue after the first-time home buyer tax credit runs out on November 30? According to the National Association of Realtors (NAR), the Pending Home Sales Index rose 6.4 percent in August, which is the highest level we’ve seen since spring of 2007. The Index has now risen for seven consecutive months and will most likely continue through November.
So what’s happening in the Northeast? The Pending Home Sales Index, which is based on contracts signed to purchase a home, rose 8.2 percent, almost 2 percent above the national average. According to the Hudson County Multiple Listing Service, in our area there are 558 Hoboken condos up for sale with approximately 150 condos under contract, which is 27 percent.
What’s behind this upswing? Of course one obvious response is the first-time home buyer tax credit. Time is running out for buyers to close before the deadline comes. According to NAR, one and a half million buyers have already taken advantage of this tax program and many more are scrambling to get under contract now since escrow can take forty-five days on average to close.
But what happens after the first-time home buyer tax credit runs out…? This is a great question with numerous answers depending your personal situation! For example, for the first time buyer with a individual income of $75,000 or less annually or a combined income of $150K or less for married couples, it’s an additional 8K in their pocket! In contrast, for the buyer who has owned in the past 3 years and/or earns more than the maximum income guidelines, extending the credit will have very little ‘direct impact’ to their personal situation. With regards to the sellers, the answer becomes more complicated. If your considering selling your home in the near future I would suggest calling me immediately at 201-427-1032 for a personal and confidential conversation in regard to the impact of the credit.
In this real estate market finding experienced real estate help is essential. Please contact Sean T Shallis at The Shallis Group for a personal consultation on your buying or selling needs at 201-427-1032.
New Home Sales on the Rise in July
Sales of new home builds take an unexpected jump in July.
The ride on the real estate roll-a-coaster takes yet another turn. This time, it’s a turn for the better! The number for new home sales in July reached their highest level in almost a year. According to the Census Bureau and Department of Housing and Urban Development (HUD), new home sales were up 9.6% from the month of June. Increases have also been reported in existing home sales, home prices (depending on the area) and affordability.
Why the market’s looking up:
According to Bob Walters, Quicken Loans chief economist, “There are many economic conditions that led to the surge. Certainly low mortgage rates, huge price reductions on the high inventory of new builds, and the first-time home buyer tax credit have been instrumental in getting consumers to take the plunge into the real estate pool of opportunity.”
Adding to the increase in new home sales is the fact that fewer contracts are being canceled. In some hard hit areas, such as Phoenix, cancellation rates have been almost cut in half compared to last year. Inventory was also reduced to a more manageable 7.5 month supply. However, with the new home buyer tax credit ending November 30, these numbers might not last long.
Between existing and purposed tax incentives, low mortgage rates and home prices, this could become a buyer’s paradise and finding the right real estate help is essential. Please contact Sean T Shallis at The Shallis Group for a personal consultation on your buying or selling needs at 201-427-1032.
(source: money.cnn.com)
New York Tax Credit for First-Time Home Buyers
In an effort to stimulate home sales in New York, the state will offer a federal income tax credit to first-time home buyers.
This new tax incentive called the New York State Mortgage Credit Certificate (MCC) allows first-time home buyers to get a tax credit equal to 20% of their annual mortgage interest costs. A first-time home buyer could see an average savings of about $1,500. The New York State tax credit comes as an extension to the federal government’s First-Time Home Buyer Tax Credit of $8,000, which is a part of the American Recovery and Reinvestment Act of 2009 and is effective until November 30, 2009. For a limited time, some home buyers will qualify for both.
New York Governor David Paterson said, “The New York State Mortgage Credit Certificate will make it easier for first-time home buyers to buy their first home and will help stimulate the State’s economy. It also means some form of federal tax credit will be available for home buyers even after the federal government’s tax credit program expires in November.”
Who administers MCC?
The State of New York Mortgage Agency (SONYMA) will act only as the administrator of the Mortgage Credit Certificate. They are a State agency that provides affordable home ownership opportunities to low and moderate income residents. It is important to note that home buyers who receive a SONYMA mortgage are not eligible for the Mortgage Credit Certificate.
How do I apply?
Applications at participating lenders should be available as early as September. First-time home buyers may apply for the Mortgage Credit Certificate at the same time they apply for a fixed-interest rate mortgage at a participating lender. In order to qualify for the Mortgage Credit Certificate, applicants must meet SONYMA’s income limit and home purchase price requirements. For more information on qualifications and participating lenders, please visit nyhomes.org.
Between existing and new tax incentives, low mortgage rates and home prices, this could become a buyer’s paradise and finding the right real estate help is essential. Please contact Sean T Shallis at The Shallis Group for a personal consultation on your buying or selling needs at 201-427-1032.
(source: ny.gov)
Mortgage Rates Continue to Drop for July
Mortgage rates fall for the third time in four weeks.
The 30-year fixed mortgage rate fell to 5.39% last week, down from the previous week. This is the third time in the last month that rates have continued drop. With the unemployment rate reported at 9.5% for June and forecasted to be at 10.9% by the end of the year, combined with low quarterly earnings, investors are still unsure of the market and where it’s headed. The 15-year mortgage rate is holding at 4.78%. So far, the averages continue to lower even further according to bankrate.com. Compared to last year’s figures, 30-year fixed mortgage rates were at 6.48%, a difference of more than 1%.
Adjustable rates are also following suit with 5-year ARMs down to 4.82% from 4.88% and 1-year ARMs at 4.82% down from 4.94% according to Freddie Mac.
Between historically low mortgage rates and home prices, this could become a buyer’s paradise and finding the right real estate help is essential. Please contact Sean T Shallis at The Shallis Group for a personal consultation on your buying or selling needs at 201-427-1032.
(source: money.cnn.com)
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