The $8000 first-time homebuyer’s credit is set to expire on November 30th and in the midst of a storm of controversy surrounding the possibility of fraud in over 100,000 claims for the tax credit there is a push to have the homebuyers’ credit extended and modified to increase eligibility and give homebuyers a larger piece of the stimulus pie.
The government is making it easy for homeowners to save on their taxes this year. Whether you're a first time buyer, or just renovating, there are a number of savings out there.
Tax credits under the Housing and Economic Recovery Act of 2008 and the American Recovery and Reinvestment Act of 2009 are aimed at attracting first-time buyers to buy homes from tax foreclosure property listings.
The tax credit amount is determined by the lowest personal income tax rate of the year times $5000. For instance, 2009’s lowest rate was 15%. Multiplied by the amount of $5000, this equals $750. So, for 2009, the HBTC is $750. Each year, the credit is recalculated, so it may be higher or lower than previous years.
The first time home buyer’s tax credit, which expires November 30, 2009, has been boosting U.S. summer home sales. The question is: can it last? With budget cuts, layoffs and an all-around depressed economy, there are some questions as to whether this jump in home sales will last and, too, whether the people buying homes will be able to keep them.
Distressed property listings surged by 29 percent in Columbus, Georgia in February this year, based on legal notices filed for the March 2 public foreclosure auction. Foreclosure listings also grew in metro Atlanta during the same period to 10,300.
It was thought that the $8,000 new home buyer tax credit would give the real estate market the shot in the arm it needed to pull out of its crisis; however, according to some critics, the plan may not be working as well as expected, with only a small portion of the available funds being tapped by home buyers. There are a couple of reasons for the lack of activity surrounding this stimulus plan.
Home prices improved substantially as the percentage of San Francisco distressed properties for sale fell in May. The median price for pre-owned single-family homes rose by 8 percent to $434,000 in May.
Albuquerque distressed properties for sale are still surging in number as more foreclosure cases were filed in April. There are currently more than 2,500 distressed and bank-owned homes for sale in the city, based on data from a major foreclosure listings.
A new rule is being proposed in San Francisco which could have huge implications on developers of rental property listings. The rule provides a way to fund affordable housing.
The spike in house sales in April augur well for Portland foreclosure investing. Sales shot up by more than 49 percent to a total of 1,941 units in April.
Foreclosures in Denver made an impact on the vacancy rate for residential rental properties in the area in the final quarter of 2009. The vacancy rate rose to 5.5 percent in the October-December quarter.
Bronx home foreclosures are being turned around by former Mets player Mo Vaughn and his partner Eugene Schneur. After rehabilitating hundreds of troubled housing units since 2004, their firm Omni was again chosen recently to turn around 14 dilapidated buildings formerly owned by Ocelot.
Charlotte cheap homes are still slowing down new home construction in the area. Sales of lumber declined as the average home sales price in Charlotte fell from $195,623 in January to $189,743 in February.
The Treasury Department reassures taxpayers that only about 0.5% of home buyer's credits claimed have been discovered to be fraudulent, whereas the majority of claims are from valid qualifying home buyers.
Prospective buyers need to take advantage of cheap foreclosure listings in San Diego now before prices shoot up. The median price rose by more than 15 percent over the year to $340,000 in May, the eighth consecutive month of increase year-over-year.
For already-built homes, qualifying for the tax credit is relatively easy. You buy a home, you move in. For those who are having their homes constructed, there are a lot more steps to go through before one can carry the first couch through the door.
The still high percentage of Baltimore foreclosures for sale is making many homes affordable. The average home price in May dropped by 14 percent to $272,000.
Although the U.S. government's foreclosure tax credits have ended, sales of foreclosed homes still rose in some areas of Virginia. Statewide sales maintained 2009 levels.
As sales of housing units from Los Angeles foreclosure listings declined in March, home prices in the Los Angeles metro area increased. The sales price median in March in Los Angeles County rose by nearly 10 percent to $329,000 in March.
San Antonio home auctions are revving up, but home prices in the area are holding up. In December, the median sales price for a detached single-family home rose by 5 percent to $148,300 despite increased foreclosure activity.
Home price reductions stepped up in April as more homes entered Minneapolis foreclosure auctions in the previous three months. With 40 percent of homes sold with price reductions in April, Minneapolis topped all other large metro areas in price cuts.
Current signs and factors point toward continued surge in Tampa pre foreclosures. Double-digit price declines and a 13.1-percent unemployment rate are just two of the factors pointing to more foreclosures in the area.
Foreclosure resolutions have been the topic of congressional debates, but the housing industry is still miserable. The Obama administration is now prioritizing foreclosure that has been hitting the country and wreaking havoc on the economy.
Bank owned homes are still putting downward pressure on residential prices in East Bay. While home prices increased in other parts of the San Francisco Bay, prices in Contra Costa and Alameda inched upward by only 0.09 and 0.06, respectively, in the final quarter of 2009.
Pittsburgh pre foreclosure homes are contributing to the increase in pending home sales. Pending sales soared by 33 percent in February year-over-year in Pittsburgh and in other parts of western Pennsylvania.
Miami foreclosure investing is getting hotter as filings and listings continued to surge in the area. Almost 6,700 foreclosures were filed in February, a whopping 44-percent jump from January.
The expiring tax credits and the price impact of REO homes drove the frenzy of homebuying in Denver in April. Closed home sales shot up by 24 percent to 4,188 units and pending sales spiked to 6,616 units.
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