Hurry! Tax Credit Expires Soon!
The Extended Home Buyers Tax Credit offers current homeowners and first-time home buyers alike an incredible tax-saving opportunity when they buy a home through April 30, 2010. First time buyers, who haven't owned a primary residence in the past three years, are eligible for a tax credit of 10 percent of a home's purchase price, up to a maximum of $8,000.
Current homeowners are also eligible for a tax credit of their own. Homeowners who have lived in their primary residence for 5 consecutive years of the past 8 are eligible for a tax credit of 10% of a home's purchase price, up to maximum of $6,500.
The following conditions apply:
- The tax credit is only awarded on homes purchased for $800,000, or less
- Full tax credit is available to buyers earning up to $125,000 a year, or $225,000 for married couples filing jointly
- Partial tax credit is available to buyers earning between $125,000 to $145,000, or for married couples earning between $225,000 to $245,000.
- Under the rules, as long as a written binding purchase contract is in effect on April 30, 2010, the buyer has until July 1, 2010 to close.
The tax credit is a dollar-for-dollar reduction in the buyers tax liability, and does not have to be paid back as long as the buyer remains in their home for three years or more. This is a once-in-a-lifetime offer to have Uncle Sam help you buy a house. Don't let this opportunity pass you by!
Existing Home Sales Up From Year Ago
Existing home sales are up in 2010 compared to the same time a year ago. According to the National Association of REALTORS (NAR), existing homes sales -- including single family, condominiums, townhomes and co-ops -- were up 11.5 percent from January 2009 levels. At the current pace, NAR is projecting existing home sales of 5.05 million units for the year. Total housing inventory is down 0.5 percent to 3.27 million units nationally.
NAR chief economist Lawrence Yun is watching the sales data very closely. "Activity should be picking up strongly in late spring as buyers take advantage of the tax credit, which is critical to absorb distressed properties reaching the market and to continually chip away at inventory," Yun said. "With a downtrend in the number of homes on the market, especially in the lower price ranges, values are beginning to firm but with great variance around the country."
Mortgage backer Freddie Mac reported an average commitment rate for a 30-year, conventional, fixed-rate mortgage of 5.03 percent in January. This is up slightly from 4.93 percent available in December 2009, but down overall from a year ago when the rate was 5.05 percent in January 2009.
Have You Heard about the New Real Estate Website?
HouseLogic.com is a free source of information and tools—from the NATIONAL ASSOCIATION OF REALTORS®—that can help you make smart and timely decisions about your home. With content covering home improvement, maintenance, taxes, finance, insurance, and even ways you can get involved in and enrich your community, HouseLogic can help you increase and protect the value of your home by helping you make confident decisions.
I thought the article about Spring home maintenance projects was great. Also, if you are thinking of replacing your roof soon, you might start by getting the basics for your research on this site.
Want Additional Information about Local Sales?
Check out our blog to see more detailed information about selected areas: 
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Anderson Township and Newtown (Forest Hills Schools)
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Hyde Park, Mt. Lookout, Oakley, and Columbia Tusculum
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Montgomery, Blue Ash, Sycamore Township and Symmes Township
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Mt. Adams
If you want us to put together information for you about another neighborhood, just give us a call.