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The U.S. House of Representatives
passed a bill extending and ex-
panding the Federal Tax Credit for
First-time Home Buyers on Novem-
ber 5th. The bill was passed in the
U.S. Senate the day before and will
now go to President Obama for his
signature, where it is expected to
be signed this week.
The tax credit will be extended
through April 30, 2010, with a 60-
day extension if a binding contract
is in place prior to the deadline.
First-time home buyers will continue
to receive a tax credit of up to
$8,000, while existing homeowners
will receive a reduced credit of up
to $6,500. Existing homeowners will
be eligible for the $6,500 if they
have lived in their current resi-
dences for at least five years. The
bill also will increase the qualifying
income limits from $75,000 for sin-
gle tax filers and $150,000 for joint
filers, to $125,000 and $225,000,
respectively. The purchase price of
the home is capped at $800,000.
The changes, among other things,
are aimed at encouraging so-called
“move-up buyers” to sell their first
homes and buy a larger or more
expensive place.
Under additional provisions in the
bill, taxpayers can claim the credit
on purchases completed in 2010 on
their 2009 income tax returns. The
bill maintains the provision that
home buyers do not have to repay
the credit provided the home re-
mains their primary residence for 36
months after purchase, and waives
this requirement for active duty
military personnel who move due to
a military order. “The success of the home buyer tax
credit and its positive impact on the
real estate market is clear,” said
C.A.R. President James Liptak.
“According to our research, nearly
40 percent of first-time buyers said
they would not have purchased a
home if the federal tax credit for
first-time home buyers was not
offered. This underscores the sig-
nificance of the federal tax credit to
the housing market’s recovery in
California.
Housing affordability inched downward
throughout the state during
the second quarter of 2009 as a
result of incremental price increases
and increased demand sparked by
the state new-homebuyer tax credit,
the California Building Industry
Association said today.
The quarterly National Association
of Home Builders/Wells Fargo
Housing Opportunity Index found
that homes were less affordable in
16 of the state<s least affordable
market for the fifth quarter in a row
(21.2%). www.soldonsantacruz.com
Inventory of single-family, re-sale homes fell for the thirteenth month in a row in August, and it is now down 43.1% year-over-year. Pending sales, meanwhile, climbed 31.3% from July, and were up 100.5% compared to August 2008. The median price for singlefamily, re-sale homes lost 7.5% in August. Year-overyear, the median price was off 13.4% Sales of single-family, re-sale homes were up, year-over-year, by 3.2% in August. Year-to-date, home sales are up 16.6%. Days of Inventory rose seven days to 129 days. In a balanced market, the supply of homes is usually around five to six months. For condos, the indicator dropped ten days to 176 days. The sales price to list price ratio rose 1.2 points to 98.5%. Condo sales rose 3.6% month-overmonth, but were off 9.4% compared to last August. Year-to-date, condo sales are up 9.5%. The median price for condos fell 28.1% from the month before, and was down 26.9% compared to last August. www.soldonsantacruz.com
The median price for single-family,
re-sale homes rose 4.7% from April.
The median price was off 23.9%
year-over-year. The average
price fell 9% month-overmonth,
and was down
30.2% compared to last
May.
Sales of single-family, resale
homes were up, yearover-
year, by 10.3% in May.
Year-to-date, home sales
are up 21%.
Inventory was down 39.8% from
last May. This is the thirteenth
month in a row inventory has declined
year-over-year.
The drop in inventory and the rise
in sales combined to push our Days
of Inventory indicator down 21 days
to 156 days. In a balanced market,
the supply of homes is usually
around five to six months. For condos,
the indicator rose thirteen days
to 172 days.
The sales price to list price ratio
rose 0.8 of a point to 98%.
Pending sales, a leading indicator,
were up 35.1% year-over-year.
Condo sales were up 3.4% yearover-
year. Year-to-date, condo
sales are up 28.3%.
The median price for condos
rose 17.5% from the month
before, but was down 9.2%
compared to last May.
Condo inventory was down
34.4% compared to March
2008.
Pending sales for condos is
up 25% year-over-year.
The real estate market is very hard
to generalize. It is a market made
up of many micro markets. For
complete information on a particular
neighborhood or property, call me.
As part of its plan to stimulate the
U.S. housing market and address
the economic challenges facing our
nation, Congress has passed legislation
that grants a tax credit of up
to $8,000 to first-time home buyers.
WHO QUALIFIES?
First-time home buyers who purchase
homes between January 1,
2009 and December 1, 2009.
To qualify as a Gfirst-time home
buyerH the purchaser or his/her
spouse may not have owned a
residence during the three years
prior to the purchase.
WHICH PROPERTIES ARE ELIGIBLE?
The 2009 First-Time Home Buyer
Tax Credit may be applied to primary
residences, including: singlefamily
homes, condos, townhomes,
and co-ops.
HOW MUCH WILL THE CREDIT BE?
The maximum allowable credit for
home buyers is $8,000. Each home
buyerIs tax credit is determined by
two factors:
The price of the homeJthe credit is
equal to 10% of the purchase price
of the home, up to $8,000.
The buyer's incomeJsingle buyers
with incomes up to $75,000 and
married couples with incomes up to
$150,000Jmay receive the maximum
tax credit.
IF THE BUYER(S)' INCOME EXCEEDS
THESE LIMITS, CAN HE/SHE STILL GET
A CREDIT?
Yes, some buyers may still be eligible
for the credit.
The credit decreases for buyers
who earn between $75,000 and
$95,000 for single buyers and between
$150,000 and $170,000 for
home buyers filing jointly. The
amount of the tax credit decreases
as his/her income approaches the
maximum limit. Home buyers earning
more than the maximum qualifying
incomeJover $95,000 for singles
and over $170,000 for couples
are not eligible for the credit.
WILL THE TAX CREDIT NEED TO BE
REPAID?
No. The buyer does not need to
repay the tax credit, if he/she occupies
the home for three years or
more. However, if the property is
sold during the three-year period,
the credit will be recouped on the
sale.
TAX CREDIT CAN BE USED ON CLOSING
COSTS
FHA-approved lenders received the
go-ahead to develop bridge-loan
products that enable first-time buyers
to use the benefits of the federal
tax credit upfront, according to
eagerly awaited guidance from the
U.S. Department of Housing and
Urban Development on so-called
home buyer tax credit loans that
was released today.
Under the guidance, FHA-approved
lenders can develop bridge loans
that home buyers can use to help
cover their closing costs, buy down
their interest rate, or put down more
than the minimum 3.5 percent.
The loans can't be used to cover
the minimum 3.5 percent, senior
HUD officials told reporters on a
conference call Friday morning.
May 29, 2009 -- Bond and mortgage
markets spasmed this week, and
the corresponding sharp rise in
rates over a two-day period served
as a reminder that even a battered
private market markets can be a
dangerous animal. It wasn't completely
clear what sparked the rout,
but there was speculation that a
combination of unclear goals in
Federal Reserve quantitative easing
programs, floods of new sovereign
debt and shoddy treatment of GM
bondholders all led to the selloff.
Yields on the 10-year Treasury
bond had lifted by just over half a
percentage point in a few days'
time, taking conforming fixed mortgage
rates along for the ride. After
standing at a familiar 5.03% on
Tuesday, Conforming 30-year
FRMs leapt to 5.29% on Wednesday
and then 5.44% on Thursday
before settling on Friday to 5.30%.
Overall, HSH's Fixed-Rate Mortgage
Indicator (FRMI), which includes
rates for conforming, jumbo
and "high-limit" conforming data,
rose by only 18 basis points to
5.64%, as the increase in the conforming
portion was tempered
somewhat by a softer response in
Jumbos. An all-inclusive average
for 5/1 hybrids increased by 10
basis points, closing the survey
week at 5.15%.
Existing Home Sales rang in at a
4.68 million (annualized) rate of
sale in April, a slight increase from
March's figure but in line with recent
figures, which have been showing a
kind of "backing and filling" pattern
for the past five months. Prices
continue to ease -- they are 15.4%
below year-ago levels, and the
supply of inventory increased back
to 10.2 months at the present rate
of sale.
New Homes sold at a 352,000
annualized clip in April, almost
exactly the same pace seen in
March. Like their 'used' counterparts,
prices here are about 15%
below last year, but inventory levels
continue to improve and now stand
at 10.1 months available. According
to the Commerce Department, the
actual number of units on the market
is now 297,000 and is starting
to approach half of the peak levels
seen a couple of years ago. The
sooner inventory disappears, the
sooner new construction can begin,
and we are approaching that day
steadily, if slowly
Sales of single-family, re-sale homes were up, year-over-year, by 40.8% in March. Year-to-date, home sales are up 28.4%. The median price for homes fell 4.4% from February. The median price was down 36.5% year-over-year. The average price fell 6.9% month-over-month, and was off 34% compared to last March. Inventory was down 19.7% from last March. This is the eleventh month in a row inventory has declined year-over-year. Our Days of Inventory indicator dropped 45 days and is now at 223 days. In a balanced market, the supply of homes is usually around five to six months. For condos, the indicator was down six days to 293 days. The sales price to list price ratio rose 1.1 points to 97.5%. Days on market gained nine days to 101 days. Condo sales were up 5% from February, but were down 8.7% year-over-year. Year-to-date, condo sales are up 31.9%. The median price for condos rose 8.1% from the month before, but was down 37.9% compared to last February. Condo inventory was down 25.2% compared to March 2008. The real estate market is very hard to generalize. It is a market made up of many micro markets. For complete information on a particular neighborhood or property, call me.
The American Recovery and Reinvestment Act of 2009 reinstates last year's 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans. These limits were equal to the greater of 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750. For the few areas where the 2009 limits were higher, the higher limits will apply. In addition, the bill includes language providing the HUD Secretary with the discretion, if warranted, to increase the loan limit for any Hsub-areaI, i.e. an area smaller than a county. The Secretary's discretion is again limited by the $729,750 cap. These 2009 limits will expire December 31, 2009. For Santa Clara County, loan limits will be $729,750.
The Act is intended to provide a stimulus to the U.S. economy in the wake of the economic downturn brought about by the subprime mortgage crisis and the resulting credit crunch. The Act includes federal tax cuts, expansion of unemployment benefits and other social welfare provisions, and domestic spending in education,
health care, and infrastructure, including the energy sector. Some of the tax relief for individuals include:
• New payroll tax credit of $400
per worker and $800 per couple
in 2009 and 2010. Phaseout
begins at $75,000 for individuals
and $150,000 for joint
filers.
• Alternative minimum tax: a one
year increase in AMT floor to
$70,950 for joint filers for 2009.
• Expansion of child tax credit: A
$1,000 credit to more families
(even those that do not make
enough money to pay income
taxes).
• Expanded college credit to
provide a $2,500 expanded tax
credit for college tuition and
related expenses for 2009 and
2010. The credit is phased out
for couples making more than
$160,000.
• Homebuyer credit: $8,000
credit for all homes bought
between 1/1/2009 and
12/1/2009 and repayment provision
repealed for homes
purchased in 2009 and held
more than three years. This
only applies to first-time homebuyers.
• Home energy credit to provide
an expanded credit to homeowners
who make their homes
more energy-efficient in 2009
and 2010. Homeowners could
recoup 30 percent of the cost
up to $1,500 of numerous
projects, such as installing
energy-efficient windows,
doors, furnaces and air conditioners.
• Deduction of sales tax from car
purchases, phased out for
incomes above $250,000.
Sales of single-family, re-sale homes were up, year-over-year, by 17.6% in February. We expect this momentum to continue as the market works its way through the glut of bankowned properties. The median price for homes fell 5.7% from January. The median price was down 37.1% year-over-year. Inventory was down 18.8% from last February. This is the tenth month in a row inventory has declined year-over-year. Our Days of Inventory indicator lost eight days and is now at 268 days. In a balanced market, the supply of homes is usually around five to six months. For condos, the indicator was flat at 299 days. The sales price to list price ratio dropped 0.6 of a point to 96.4%. Days on market gained eight days to 92 days. Condo sales were down 4.8% from January, but were up 66.7% yearover-year. The median price for condos lost 12.2% from the month before, and was down 34.8% compared to last January. Condo inventory shed 4.8% month-over-month, and was down 18.1% compared to
February 2008. The real estate market is very hard to generalize. It is a market made up of many micro markets. For complete information on a particular neighborhood or property, call me.
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Charles Lynn
Santa Cruz,
CA
More about me…
David Lyng Real Estate
Address: 2170 41st Ave., Capitola, Ca, 95010
Office Phone: (831) 464-0100
Cell Phone: (831) 247-4577
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