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Tax Credit Boom
My mother-in-law decided to sell her home in Benbrook, just south of Fort Worth, to be closer to her grandkids. While I was putting the for sale sign in the yard, a couple drove by and asked to see the home. They looked at the home and loved it. That night their Realtor called me saying he was sending me a offer. Her house was sold and on to the fun part of finding a new home.
For the past week, I have been trying to find her a home in Frisco for under $150K. Each time we found one she liked, by the time we got back home, it was under contract. Now of course, there are still a few homes with mold damage or foundation issues, but I don’t want her to be in a home like that.
This $8000 first time home buyers tax credit ends April 30th, and I think a lot of home buyers are rushing to find something. This is making it a great time to sell, but not so fun on the buying end. Are buyers overpaying for these homes because of the high demand right now? When the tax credit is over, will anyone still need a home?
2% Decrease In Foreclosures in February 2010
Good economic news in February points to a slow down in home foreclosures. RealtyTrac is reporting a 2% decrease from January 2010 in it’s February Foreclosure Market Report. Although it is still 6% above filings from February 2009, it is still the smallest annual increase they’ve seen since January 2009. This is certainly a good indicator of recovery and a leveling of the foreclosure trend,
You’ve got til April 30th to find a home
Just a quick reminder, if you are a first time home buyer or have not owned a home in 3 years, you have until April 30th to get a home under contract to get up to $8000 from the government. You do not have to close on the home until June.
New Home Buyers Downsizing and Going Green in Recession
For the first time since 1982, the square footage of completed new homes fell from an average 2,520 square feet to 2,480 square feet in 2009, according to the National Association of Home Builders.
Smaller homes have been a trend for many years (fewer bedrooms and bathrooms) but the recession has accelerated that trend. And with rising energy costs, many prospective home buyers will be looking for smaller homes with greener alternatives such as energy efficient windows and appliances and programmable thermostats. Builders are likely to include those as standard features in their new homes.
Adding to the smaller home size trend are the new home buyers taking advantage of the $8,000 tax credit and those over 55 who will be looking to compromise size for a lower mortgage. The tax credit has been extended until April 30th and was expanded to include a tax credit for existing home owners.
Expanded Tax Credit for First Time Home Buyers
Great news for those who missed out on the new home buyers tax credit! Home buyers can take advantage of the extended new home buyers tax credit, up to $8,000 (or 10% of the purchase price), until April 30, 2010 . Additionally, existing homeowners can also take advantage of a new tax credit up to $6500 (or 10% of the purchase price) if they have lived in their existing home for 5 years and are purchasing a new primary residence.
There are stipulations to these credits though. Your contract to purchase must be written by April 30, 2010 and the deal must close by July 1, 2010 in order to claim the credit and the credit is less for those in the higher income brackets. This credit does not have to be repaid.