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Pending Sales for Homes Remains Higher Than Last Year
Great news for existing homeowners who are selling their homes. Not only are home sales higher than last year, but the newly expanded tax credit will allow existing homeowners to also get a tax credit when they purchase their new primary residence. They must have lived in their previous home for 5 years and the new home must be their primary residence. Existing homeowners can qualify for up to a $6500 tax credit! New home buyers can still qualify for up to $8,000.
Pending home sales were more than 15% higher for November 2009 than in 2008. According to Lawrence Yun, National Association of Realtors chief economist, “The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own. We expect another surge in the spring as more home buyers take advantage of affordable housing conditions before the tax credit expires.”
You must have your contract written before April 30, 2010 and it must close before July 1, 2010 in order to take advantage of the non-repayable credit.
$8,000 Tax Credit Now Available at Closing for FHA Loans
The Federal Housing Administration (FHA) will now allow the maximum $8,000 tax credit to be applied at closing for qualified home buyers. Additionally, FHA will now allow those home buyers to use the credit to make a larger down payment (FHA still requires 3.5%), cover closing costs or to buy down their interest rate. This is great news for buyers and that means great news for sellers too. “A true housing recovery depends on buyers returning to the market and reducing inventory,” said National Association of REALTORS President Charles McMillan.
Even If you do not qualify for an FHA loan, you may still be able to qualify for the First Time Homebuyer Credit on your 2009 tax return as long as you purchase your home before December 1, 2009. See your mortgage and tax professionals for more information.
Mortgage Rates Hit Record Low
One day after the Federal Reserve announced it would be doubling the amount of mortgage debt it would be buying, mortgage rates fell to a record low at well under 5%. This is the lowest that mortgage rates have been in more than 40 years and this is the perfect time to fulfill the American dream of being a homeowner!
Additionally, if you are a first time home buyer or you have not owned a home in the last three years, you may qualify for up to $8,000 in tax credits! These tax credits are available for homes purchased until 12/31/09 and can even be taken off your 2008 income tax (see your tax professional for details on how to file extensions or amended returns).
To fulfill your American dream of being a homeowner, contact Julie at 214-686-0685.
North Texas Housing Market Fairing Better Than Most
The S & P has surveyed 20 large metropolitan areas regarding housing values. According to that survey, nationally, home values have plummeted well over 18 percent. In the 20 metropolitan areas that were surveyed, all are reporting decreases and 8 of the top 20 are reporting that values have declined more than 20 percent!
North Texas home values are fairing far better than the vast majority of the rest of the country. Between December 2007 and December 2008, home values in North Texas dropped by only 4.3 percent. North Texas ranks 2nd best in the areas surveyed.
New Home Buyers Claim Tax Credit on 2008 Taxes for 2009 Purchase!
The new stimulus package will allow new home buyers, defined as those who have not owned a home in the last three years, to take the maximum $8,000 tax credit off their 2008 taxes even though the purchased will take place in 2009. The tax credit is 10% of the purchase price with a maximum of $8,000 and is available to individuals making less than $75,000 per year or couples making less than $150,000 per year.
The great news is, if you purchase your home before the April 15th tax deadline, you can claim the credit directly on your return. If you are planning to buy a home in 2009 and you want to take advantage of the tax credit, you can file for an extension to file taxes later. You can also go ahead and file by the April 15th deadline and file an amended return later in the year. See your tax professional to file an extension or to file an amended return.