Omaha Real Estate

First-time Home Buyer Tax Credit Extended and Expanded

Sat, 07 Nov 2009 09:13:53 -0600

First-time Home Buyer Tax Credit Extended and Expanded

Yesterday the president signed a billed that extended the First-time Home Buyer Tax Credit. This bill also expanded the credit beyond just first-time buyers.

The big differences between the original tax credit and the new and improved version are that now current homeowners are eligible for a $6,500 tax credit, the income limits to qualify have been raised, and the new expiration date is April 30, 2010 but if one has a binding contract by the deadline they can still get the credit if they close the sale before July 1, 2010.

Below is a chart provided by the National Association of Realtors® comparing the original and the new versions of the tax credit.

FEATURE	Jan 1 - November 30, 2009 Rules as enacted February 2009	November 7 - April 30, 2010 Rules as enacted November 2009
First-time Buyer Amount of Credit	$8000 ($4000 married filing separate)	$8000 ($4000 married filing separate)
First-time Buyer Definition for Eligibility	May not have had an interest in a principal residence for 3 years prior to purchase	Same
Current Homeowner Amount of Credit	No Provision	$6500 ($3250 married filing separate)
Effective Date Current Owner	No Provision	November 7, 2009
Current Homeowner Definition for Eligibility	No Provision	Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
Termination of Credit	Purchases after November 30, 2009. (Becomes April 30, 2010 on Date of Enactment.)	Purchases after April 30, 2010
Binding Contract Rule	None	So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.
Income Limits (Note: Increased income limits are effective as of date of enactment of bill)	$75,000 - single, $150,000 - married, Additional $20,000 phase out	$125,000 - single, $225,000 - married, Additional $20,000 phase out
Limitation on Cost of Purchased Home	None	$800,000 November 7, 2009
Purchase by a Dependent	No Provision	Ineligible November 7, 2009
Anti-fraud Rule	None	Purchaser must attach documentation of purchase to tax return

How will this affect the Omaha real estate market? Was this tax credit a good idea? Stay tuned for my follow-up blog post.

Troy Trumm, Trumm Team - 402-943-9494, Omaha NE

Total Number For Sale	5276
Total Number of Accepted Offers	868
Total Number of Closed Sales	810

% of sellers that accepted an offer	16.45%
Absorption rate in months	6.08

Existing Residential Properties Closed:	Sep-09	Sep-08	September 09 YTD	September 08 YTD
Total Existing Construction Sales	823	700	6805	6493
Total $ Volume	$126,065,026	$107,472,761	$1,022,097,550	$998,939,757
Avg. List $	$158,200	$159,825	$155,364	$159,502
Avg. Sold $	$153,177	$153,532	$150,198	$153,848
High Sold $	$1,500,000	$1,171,200	$1,500,000	$1,919,400
Median Sold $	$134,900	$135,000	$132,000	$133,000
Low Sold $	$5,100	$10,000	$3,000	$3,250

Total Number For Sale	5261
Total Number of Accepted Offers	1061
Total Number of Closed Sales	787

% of sellers that accepted an offer	20.17%
Absorption rate in months	4.96

Omaha Real Estate

First-time Home Buyer Tax Credit Extended and Expanded

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I’d like to thank Lisa Sleddens at NP Dodge.

I want to thank Ron Rubin at CBS Home.

Thank you Nancy Kehrli at NP Dodge.

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I’d like to thank Beth Lube at RE/MAX Real Estate.

Thanks to Daniel Wilder at NP Dodge.

I want to thank Michelle Gustafson at Prudential Ambassador.

Thank you Erica Holstein at Keller Williams.

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I'd like to thank Helen Barsell at CBSHome.

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