There has been a lot of mis-information about the First Time Home Buyer Credit. It is still alive, but only for closings completed by the end of November. The new Bill is still in Congress. There is talk that they will vote today or tomorrow (Monday or Tuesday - November 2 or 3). But there are changes . . . for the better.
There is an addition to the bill that home buyers who lived in their prior homes for at least five years could receive a credit of $6500.
There is also language to increase income for the tax credit up to $125,000 for an individual and $225,000 for a couple from $75,000 and $150,000, respectively. But all of this is just talk right now, so be careful what you tell clients.
Here is a link to the National Association of Realtors ACTION page. Use it and encourage friends and family and other Realtors to use it. You can hit one button and the system will call your elected official in Washington where you can leave a voice mail. There is a wealth of other information on this page as well.
http://www.realtoractioncenter.com/realtor-party/call-your-senators.html
And here is a copy of the letter the NAR President sent to Senator Harry Reid and members of Congress:
The Honorable Harry Reid
Majority Leader, United States Senate
522 Hart Senate Office Building
Washington, DC 20510
Dear Senator Reid:
The 1.2 million members of the NATIONAL ASSOCIATION OF Realtors® (NAR) are very pleased that the Senate will likely consider an extension of the first-time homebuyer tax credit during the week of October 26, 2009. Timely action is essential because in most markets the credit program has already expired, notwithstanding its statutory sunset of November 30.
The current law $8000 refundable tax credit has worked. Hard numbers support that conclusion. Housing inventory is measured not in units, but in months' supply of available homes. The inventory reflects the number of months it would take to sell all homes that are being offered for sale. A year ago, in November 2008, the inventory of existing homes stood at its 2008 - 2009 peak of a 10.6 month supply.
The refundable $8000 tax credit was enacted in February of this year. With one exception, the inventory has declined every month since then. (In April there was a spike as increased listings reflected the beginning of the important spring selling season.) NAR's most recent monthly housing survey, issued today, shows that in August 2009 the inventory of homes for sale decreased again. It now stands at a 7.8 months' supply.
A "normal" housing inventory, one that reflects a stable market, is a 6 month supply. Thus, we strongly believe that we are within sight of a "normal" market. We can achieve a consistent 6 month supply if the $8000 tax credit is extended without phase-outs through mid-2010.
NAR strongly supports an amendment that Senators Dodd, Lieberman and Isakson will offer to extend the credit through June 2010 at its full $8000 level. Consumers, particularly first-time buyers, need certainty about the amount of the credit so that they can plan their transaction without any worry that a timing problem would penalize them.
We urge you to support our goal of restoring a "normal" housing market by supporting an extension of the $8000 tax credit through midyear 2010.
Sincerely,
Charles McMillan, CIPS, GRI
2009 President, National Association of REALTORS®
Alexandria Real Estate Information - Looking to Buy or Sell a home in Alexandria? Email or call your Northern Virginia Real Estate Expert, Susan Craft, REALTOR®, CRS - Susan@SusanCraft.com or (703) 216-4501 - Susan's Website - SusanCraft.com
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