Home Buyer Tax Credit Extended and Expanded

President Obama signed the bill extending and expanding the home buyer tax credit.  The credit was part of a bill that included more aid for jobless workers and broadened tax breaks for businesses. The measure passed the House by a vote of 403 to 12, one day after it was unanimously approved by the Senate.

HOME BUYER CREDIT EXTENDED

The bill also extends the $8,000 tax credit for first-time home buyers until April 30, 2010.  The credit was previously set to expire on November 30, 2009.  The new law expands the credit to cover more affluent buyers. The bill will raise the adjusted gross income cap to $125,000 for single filers and $225,000 for joint filers. The amount of the credit currently begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers. [Read more…]

2009 Home Buyer Tax Credit Extension Gets Preliminary Approval in Senate

According to WSJ.com, Senate negotiators reached a tentative deal to extend a tax credit for first-time home buyers, but its passage remains uncertain.

The agreement would extend the existing credit for first-time home buyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners. The reduced credit would be available to all home buyers who have been in their current residence for a consecutive five-year period in the past eight years.

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$8000 Federal Tax Credit For First Time Home Buyers – 100 Day Countdown

Back in the spring, Congress passed a federal tax credit for first time home buyers (or any one not having owned a home in the past three years) as part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation.

One of the key points of this credit was that the home had to be purchased (i.e. closed on) by November 30, 2009.  We have now hit the 100 day countdown to that date.
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National Pending Home Sales Rise for 3rd Month In A Row

Contracts signed show a big jump, especially in the Northeast, another indicator the market may be bottoming

Low interest rates and an $8,000 tax credit for first-time home buyers helped push pending home sales up for the third month in a row, another indication that the decline in the real estate market may be stabilizing, the National Association of Realtors reported on June 2.

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Sales of Existing Homes Rises 5.1% in Feb 2009

The National Association of Realtors said Wednesday said its seasonally adjusted index of pending sales for previously occupied homes rose 2.1 percent – in line with expectations – to 82.1 in February from January’s record low of 80.4. An index that tracks signed contracts to purchase previously occupied homes rose in February from a record low a month earlier as buyers took advantage of deeply discounted prices and low interest rates.

Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer for future home sales. Because of falling home prices and mortgage rates, homeownership is more affordable than it’s been since at least 1970, the trade group said. Hopes have been growing that home sales, while still severely depressed, may be finally showing signs of life. Sales of existing home sales rose 5.1 percent in February, the largest increase in nearly six years. [Read more…]