Triad Home Sales Rise 15.5%

Sales

Sales of new and existing homes in the Triad rose 15.5% in the fourth quarter of 2009.  That sounds like a huge increase to me. Must mean it had really tanked before!

Increase in sales the last quarter of 2009 is credited to the low interest rates and the government tax incentive to buyers. The tax incentive was scheduled to end in November so many people who were planning to buy stepped up their efforts to take advantage of that incentive.

This is the first “year-over-year” increase in three years, meaning the first time there has been an increase in sales one quarter compared to the same quarter the previous year. The last year-over-year quarterly increase came in fourth quarter 2006 when sales reached 3,495.

Alamance, Guilford and Forsyth counties had 2,248 sales the last quarter of 2009 compared to 1,946 the same quarter in 2008.   Looking back to 2006, its an increase, but still an increase over a very lean 2008.

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$8000 First Time Homebuyer Tax Credit Extended

$8000 tax credit

The bill, approved unanimously by the Senate late Wednesday and signed by President Obama Friday, November 6, extends unemployment benefits for up to 20 weeks.

It also keeps a first-time home buyer tax credit alive until next spring, and expands it to include some people who already own a house.

The bill extends jobless benefits in all states for 14 weeks, and for up to 20 weeks in states where the unemployment rate is above 8.5%.

The $8,000 tax credit for first-time home buyers that was set to expire this month is now extended through April 30.

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$8000 Tax Credit Extension?

HUD Secretary Shaun Donovan
Housing and Urban Development Secretary Shaun Donovan testifies on Capitol Hill in Washington, Tuesday, Oct. 20,2009, before the Senate Banking Committee hearing on the housing market.(AP Photo/Harry Hamburg)

As of Tuesday, October 20, 2009, Shaun Donovan, Secretary of the Department of Housing and Urban Development, told the Senate Banking Committee that the White House hadn’t make a decision on extending the tax credit and was looking at the costs.

Uh, oh. And, guess what? They don’t know what the costs have been so far. Why? Eligible refunds show up on tax returns. Tax filing season doesn’t start until next year. But Donovan said he expects to get cost data in the next few weeks. “We understand the urgency of this situation,” he said.

Guestimates at this time are that it would cost about $1 billion a month to extend the existing credit. This is according to congressional estimates. Cost for a bill to extend the credit to June 30, 2010, is estimated at $16.7 billion. So the government, what, prints more money?

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Owner Financed Homes Qualify for $8000 Tax Credit

$8000 tax credit

There’s a lot of action going on with the $8000 tax credit and we’re getting lots of questions concerning whether or not our Agreement for Deed qualifies.

“Yes”, is the answer! We close with an attorney and submit a HUD-1 with the buyer’s tax return so the return can be amended.

The following comes from the IRS web site:

Q. Can a taxpayer claim the first-time homebuyer credit if the purchase is pursuant to a seller financing arrangement (for example; a contract for deed, agreement for deed, installment land sale contract, or long-term land contract), and the seller retains legal title to secure the taxpayer’s payment obligations?

A. If the taxpayer obtains the “benefits and burdens” of ownership of a residence in a seller financing arrangement, then the taxpayer can claim the credit even though the seller retains legal title. Factors that indicate that a taxpayer has the benefits and burdens of ownership include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property. (New 7/2/09)

So, if you’re in a lease-to-own situation, you may be able to give the owner a nice downpayment that enables them to owner-finance and qualify you immediately for the $8000 tax credit.

*Start owning today!

Can the Government save the Housing Market?

Senate

The federal government is beginning to cut back on its support for the private sector. Is it too soon?

Over the past year, the government has intervened heavily at essentially every stage of the home-buying process and the housing market has become very dependent upon the government. In fact, more than 80% of the new residential mortgage loans made this year benefited from some form of government support, according to the trade publication Inside Mortgage Finance.

To keep funds flowing to the housing market, the government bailed out Fannie Mae and Freddie Mac last year and now basically owns the mortgage finance giants and their $5.4 trillion in loan portfolios.

And to boost sales, the government also is offering $8,000 tax credits to first-time home buyers.

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