Will the $8,000 Home Buyer Tax Credit Be Extended?

Welcome back!

This is a question I’ve been hearing a lot lately…”will the $8,000 home buyer tax credit be extended?”  Unfortunately, I am no fortune teller, neither is H2 Realty’s lead Realtor Aaron Hofmann or any other real estate professionals that I know of.  Here is what I’ve found though in doing some research.

There is no official extension.

Here is where things stand.

• There is bipartisan support in Congress for extending the credit past Nov. 30th.  It is still unclear if it were to be extended, how far it would be extended, the size of the credit and how many more buyers would qualify.
• It is unclear what President Obama’s stance is on the issue.
• The latest idea under discussion is a credit worth up to $8,000 for first-time homebuyers and up to $6,500 for homeowners looking to trade up to a bigger primary residence and who have already lived in their current home for five years.
• Proponents of the credit say that if it is allowed to expire, the housing market and the broader economy will grow moribund again.
• Critics state that of the nearly 2 million homebuyers who will have gotten the credit by Nov. 30th that only about 10% to 20% bough homes solely because of the credit.

Atlanta Ranks as Top Recession Proof Cities to Retire In

Atlanta is the top ranked city in another Forbes list…this time for being the best recession proof city to retire in. The list was compiled by crunching seven sets of statistics from sunny days to median home price, reveals that Atlanta has many trends working in its favor–low cost of living, plenty of sun and housing that is affordable and projected to rise in value over the next five years.

“Atlanta is the financial and industrial center of the South,” says Eduardo Martinez, senior economist at Moody’s Economy.com. “With companies like Delta and Home Depot, it’s home to more and more international business.”

If you are nearing the age of retirement you ought to consider Atlanta as the place to retire.  Get involved now and purchase a retirement home while mortgage rates are at historical lows.  Contact the H2 Realty Team today to have a real estate professional contact you and help you find your retirement home.

Forbes looked at the country’s 40 largest metropolitan areas and ranked them according to seven different categories:

1. current median home price
2. five-year projected home price
3. median monthly housing expense
4. cost of living index
5. median income for households over age 65
6. five year job growth outlook
7. sunny day statistics

1. Atlanta, Ga.
(Atlanta-Sandy Springs-Marietta, Ga., metro area)

Sunny Days: 17 of 40
Income 65 And Over: 17 of 40
Median Home Price: 7 of 40
Projected Home Price Growth ’09-’14: 17 of 40
Projected Job Growth ’09-’14: 5 of 40
Cost of Living: 11 of 40
Median Monthly Housing Cost: 23 of 40

Strong September Home Sales Expected

With homebuyers rushing to complete their home purchase before the first time home buyer tax credit expires, a report Friday is expected to show strong September sales.

Home resales are expected to show an almost 5 percent increase to a seasonally adjusted annual rate of 5.35 million, up from 5.1 million in August, according to economists polled by Thomson Reuters. If the report meets forecasts it would be the best month for home sales in more than two years.

The National Association of Realtors’ report is scheduled for 10 a.m. EDT.

First time homebuyers and investors both are taking advantage of the low mortgage rates, short sales, foreclosures, and overall discounted homes.  The buyers are also eligible to take advantage of the tax credit of 10 percent of the sales price, up to $8,000 so long as the sale closes by November 30, 2009.

With concerns about the housing market still prominent, Congress is considering several proposals to extend the tax credit for first-time buyers. Senators Johnny Isakson, R-Ga., and Christopher Dodd, D-Conn., want to extend it through June 30, and expand it to include all home buyers, at an estimated cost of $16.7 billion.

One potential roadblock, however, emerged this week. There are concerns that some of the 1.5 million applications for the tax credit are fraudulent.

At a hearing before a House subcommittee Thursday, J. Russell George, the Treasury Department’s inspector general for taxes, questioned the legitimacy of some 100,000 claims for the credit, potentially including some illegal immigrants and 580 people under 18. The youngest taxpayers to apply for the credit were 4 years old, his office said.

While the program has widespread support in Congress, there are growing concerns about the costs. The cause, said Sen. Jack Reed, D-R.I., “is a worthy one.” But “I hope we can find ways to pay for it.”

Only a Few Spots Left to Become a Bowen Penny Power Finalist

Bowen Family Homes’ Penny Power Promotion gives home buyers the chance to win a new home for only $.01…that’s right a penny!  Real estate agents have the opportunity to win $50,000.

In order to compete for these grand prices, participants must first become finalists to compete on November 10th for the grand prizes.

Individuals can become a finalist by being one of the first 100 home buyers and 100 Realtors that successfully toss a penny into a fish bowl from 10 feet away.  There are currently 59 home buyer and 77 Realtor finalists.

Realtors earn penny tosses three different ways:

• Earn one toss by touring a Bowen Family community or by attending a Penny Power Event
• Earn three tosses by previewing a Bowen Family Home with a client
• Earn five tosses if their client writes a contract on a Bowen Family Home

Home buyers earn penny toss three different ways:

• Earn one penny toss by touring a Bowen Family community
• Earn three tosses by becoming pre-qualified to buy a home with a Bowen Family Home preferred lender
• Earn five tosses if the homebuyer is under contract or writes a contract on a Bowen Family Home

Don’t hesitate to schedule your showing now with the 6-foot-plus Aaron Hofmann of H2 Realty.  Not only will he take the time to answer your real estate questions, he’ll also give you some pointers on how to make your penny toss swoosh in the fish bow.  Contact us today to set up your home showing in one of the Bowen communities.

Research Firm Predicts New Home Construction to Rebound in 2010

Housing market research firm Metrostudy predicts a 37.9 percent decline in 2009 housing starts to a total of 562,000, but a steady increase in starts during 2010.

“Homebuilders are still challenged by economic conditions, and also by the lack of credit from banks, but there are some positive trends,” said Brad Hunter, Metrostudy’s chief economist and national director of consulting.

Most builders’ new home inventory is now under control.  The past few months have been a time for builders to look internally and “trim the fat” so to speak.  With most builders having things under control they can now again start to look towards future projects.

Whether the $8,000 tax credit is extended or not we should see a rebound in new home construction in 2010.

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