The total number of single family home sales for January of this year was 16, up from 11 last year. The median selling price was $514,000, a huge increase from $330,000 in January 2009. In addition, pending sales are also up-15 for the month of January 2010 versus 11 in 2009. Market activity has been brisk in Natick, with some homes selling in a matter of a few days. The $8,000first time homebuyer credit and the $6,500 credit for existing homeowners who make a purchase is undoubtedly playing a big role. These credits both expire April 30th. Also, interest rates on 30 year fixed rate mortgages have been right around 5% for awhile, and many economic forecasters see these low rates starting to increase later in the year.

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Jon Treon of RE/MAX Executive Realty can be reached via email at jon@jontreon.com or by phone at 508-397-6081. Jon has been assisting buyers and sellers in Metrowest Boston since 1993. Visit my website at www.jontreon.com for the latest MLS listings and buyer and seller info.

 Information obtained from the MLS Property Information Network.

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Jon Treon of RE/MAX Executive Realty can be reached via email at jon@jontreon.com or by phone at 508-397-6081. Jon has been assisting buyers and sellers in Metrowest Boston since 1993. Visit my website at www.jontreon.com for the latest MLS listings and buyer and seller info.

The $15,000 Homebuyer's Tax Credit became a casualty of the stimulus compromise deal reached yesterday. The latest version of the Stimulus Bill has been scaled back to an $8,000 tax-credit for first-time home buyers, a $500 increase over a similar credit introduced last year. The Congressional Budget office had estimated  the cost of the original $15,000 credit at $35.5 billion. The estimate of the revised credit is closer to $3.7 billion.

The credit is $8,000 or 10% of the value of the home for any first time homebuyers who purchase homes from the start of the year until the end of November. It is retroactive to Dec. 31, 2008 and will last through the end of November, which means that a first time homebuyer who purchases a house this year won't have to repay it.  It starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000, and buyers will have to repay the credit if they sell their homes within three years. First time buyers who used the $7,500 credit in 2008 will still have to pay it back over a 15-year period.

The U.S. Senate yesterday unanimously passed an amendment to the pending economic stimulus package allowing an income tax credit of up to $15,000 for the purchase of a home. The amendment was advanced by former real estate broker Sen. Johnny Isakson (R-Ga.) and Sen. Joseph Lieberman (I-Ct.) The amendment would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax credit for the purchase of new homes only, which must be repaid over 15 years or when the house is sold, if there is sufficient capital gain from the sale. Sen. Isakson's office estimated his proposal would cost the government $19 billion.

The text of the amendment (Amendment No. 106 to Amendment No. 98) is as follows:

On page 449, beginning on line 16, strike through page 450,
line 22, and insert the following:

SEC. 1006. CREDIT FOR CERTAIN HOME PURCHASES.

(a) Allowance of Credit.-Subpart A of part IV of
subchapter A of chapter 1 is amended by inserting after
section 25D the following new section:

"SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES.

"(a) Allowance of Credit.-
"(1) In general.-In the case of an individual who is a
purchaser of a principal residence during the taxable year,
there shall be allowed as a credit against the tax imposed by
this chapter an amount equal to 10 percent of the purchase
price of the residence.
"(2) Dollar limitation.-The amount of the credit allowed
under paragraph (1) shall not exceed $15,000.
"(3) Allocation of credit amount.-At the election of the
taxpayer, the amount of the credit allowed under paragraph
(1) (after application of paragraph (2)) may be equally
divided among the 2 taxable years beginning with the taxable
year in which the purchase of the principal residence is
made.
"(b) Limitations.-
"(1) Date of purchase.-The credit allowed under
subsection (a) shall be allowed only with respect to
purchases made-
"(A) after the date of the enactment of the American
Recovery and Reinvestment Tax Act of 2009, and
"(B) on or before the date that is 1 year after such date
of enactment.
"(2) Limitation based on amount of tax.-In the case of a
taxable year to which section 26(a)(2) does not apply, the
credit allowed under subsection (a) for any taxable year
shall not exceed the excess of-
"(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
"(B) the sum of the credits allowable under this subpart
(other than this section) for the taxable year.
"(3) One-time only.-
"(A) In general.-If a credit is allowed under this
section in the case of any individual (and such individual's
spouse, if married) with respect to the purchase of any
principal residence, no credit shall be allowed under this
section in any taxable year with respect to the purchase of
any other principal residence by such individual or a spouse
of such individual.
"(B) Joint purchase.-In the case of a purchase of a
principal residence by 2 or more unmarried individuals or by
2 married individuals filing separately, no credit shall be
allowed under this section if a credit under this section has
been allowed to any of such individuals in any taxable year
with respect to the purchase of any other principal
residence.
"(c) Principal Residence.-For purposes of this section,
the term `principal residence' has the same meaning as when
used in section 121.
"(d) Denial of Double Benefit.-No credit shall be allowed
under this section for any purchase for which a credit is
allowed under section 36 or section 1400C.
"(e) Special Rules.-
"(1) Joint purchase.-
"(A) Married individuals filing separately.-In the case
of 2 married individuals filing separately, subsection (a)
shall be applied to each such individual by substituting
`$7,500′ for `$15,000′ in subsection (a)(1).
"(B) Unmarried individuals.-If 2 or more individuals who
are not married purchase a principal residence, the amount of
the credit allowed under subsection (a) shall be allocated
among such individuals in such manner as the Secretary may
prescribe, except that the total amount of the credits
allowed to all such individuals shall not exceed $15,000.
"(2) Purchase.-In defining the purchase of a principal
residence, rules similar to the rules of paragraphs (2) and
(3) of section 1400C(e) (as in effect on the date of the
enactment of this section) shall apply.
"(3) Reporting requirement.-Rules similar to the rules of
section 1400C(f) (as so in effect) shall apply.
"(f) Recapture of Credit in the Case of Certain
Dispositions.-
"(1) In general.-In the event that a taxpayer-
"(A) disposes of the principal residence with respect to
which a credit was allowed under subsection (a), or
"(B) fails to occupy such residence as the taxpayer's
principal residence,
at any time within 24 months after the date on which the
taxpayer purchased such residence, then the tax imposed by
this chapter for the taxable year during which such
disposition occurred or in which the taxpayer failed to
occupy the residence as a principal residence shall be
increased by the amount of such credit.
"(2) Exceptions.-
"(A) Death of taxpayer.-Paragraph (1) shall not apply to
any taxable year ending after the date of the taxpayer's
death.
"(B) Involuntary conversion.-Paragraph (1) shall not
apply in the case of a residence which is compulsorily or
involuntarily converted (within the meaning of section
1033(a)) if the taxpayer acquires a new principal residence
within the 2-year period beginning on the date of the
disposition or cessation referred to in such paragraph.
Paragraph (1) shall apply to such new principal residence
during the remainder of the 24-month period described in such
paragraph as if such new principal residence were the
converted residence.
"(C) Transfers between spouses or incident to divorce.-In
the case of a transfer of a residence to which section
1041(a) applies-
"(i) paragraph (1) shall not apply to such transfer, and
"(ii) in the case of taxable years ending after such
transfer, paragraph (1) shall apply to the transferee in the
same manner as if

[[Page S1483]]

such transferee were the transferor (and shall not apply to
the transferor).
"(D) Relocation of members of the armed forces.-Paragraph
(1) shall not apply in the case of a member of the Armed
Forces of the United States on active duty who moves pursuant
to a military order and incident to a permanent change of
station.
"(3) Joint returns.-In the case of a credit allowed under
subsection (a) with respect to a joint return, half of such
credit shall be treated as having been allowed to each
individual filing such return for purposes of this
subsection.
"(4) Return requirement.-If the tax imposed by this
chapter for the taxable year is increased under this
subsection, the taxpayer shall, notwithstanding section 6012,
be required to file a return with respect to the taxes
imposed under this subtitle.
"(g) Basis Adjustment.-For purposes of this subtitle, if
a credit is allowed under this section with respect to the
purchase of any residence, the basis of such residence shall
be reduced by the amount of the credit so allowed.
"(h) Election to Treat Purchase in Prior Year.-In the
case of a purchase of a principal residence during the period
described in subsection (b)(1), a taxpayer may elect to treat
such purchase as made on December 31, 2008, for purposes of
this section.''.
(b) Clerical Amendment.-The table of sections for subpart
A of part IV of subchapter A of chapter 1 is amended by
inserting after the item relating to section 25D the
following new item:

"Sec. 25E. Credit for certain home purchases.''.
(c) Sunset of Current First-Time Homebuyer Credit.-
(1) In general.-Subsection (h) of section 36 is amended by
striking "July 1, 2009′' and inserting "the date of the
enactment of the American Recovery and Reinvestment Tax Act
of 2009′'.
(2) Election to treat purchase in prior year.-Subsection
(g) of section 36 is amended by striking "July 1, 2009′' and
inserting "the date of the enactment of the American
Recovery and Reinvestment Tax Act of 2009′'.
(d) Effective Date.-The amendments made by this section
shall apply to purchases after the date of the enactment of
this Act.

Do You or Does Someone You Know Have a Home or Property that Needs Some TLC?

Housing for All, a MetroWest affordable housing rehab and advocacy group, is looking for home and property restoration projects for those in need. We are seeking projects that can be completed within a day or two by a team of experienced handyman supervisors and volunteers. Examples of projects include window and door winterizing, retrofitting bathrooms and ramp construction for those with disabilities, building clean-up, wallpaper removal, interior and exterior painting, and outdoor clean-up. Our construction team will evaluate and discuss projects with each property owner before we start so that expectations are clear. All labor and materials costs will be provided by Housing for All.

For more information, please contact Mr. Chris Ross, Executive Director, Housing for All, at 508-872-2978.