In an effort to continue the home rebound alive and well, the House of Representatives and Senate voted overwhelmingly to pass the legislation to approve the homebuyer tax credit extension... President Obama signed off last Friday making it official...
HERE IS THE NEW DETAILS:
The $8,000 first-time homebuyer tax credit, which was slated to expire Nov. 30, 2009, will be extended for contracts signed before May 1, 2010 that close before July 1, 2010. First-time buyers, who are in the process of closing now, no longer have to worry about qualifying for the $8,000 tax credit if they do end up closing after the Nov. 30 deadline. The new legislation also increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the current level.
*NEW BENEFIT* Buyers who already own a home are also now eligible for a tax credit and the purchase of a home. The $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years. The legislation does set forth several provision including, limiting eligibility for existing homeowners to homes worth $800,000 or less, as well as making both credits available only for primary residences, not second homes or investment properties. The legislation will take effect December 1, 2009 and is not retroactive.
THE EFFECTS
The original first-time homebuyer tax credit jump-started the housing market, driving home sales to the highest level in more than two yeas. The National Association REALTORS® reported sales jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million units in September and are 9.2 percent higher than the 5.10 million-unit pace in September 2008.
REASONALBE EXCEPTIONS:
Members of the uniformed services, foreign services, and intelligence employees who served an extended service of 90 days will have until April 30, 2011 and June 30, 2011.
Home must be primary residence for at least 3 years. If home is sold or buyer moves before 3 years, must re-pay full amount of credit. Exception for military, foreign services, or intelligence with extended 90 days service overseas.
Monday, November 9, 2009
Where are all the Foreclosures?
The Big Question is: Where are all the foreclosures? I am sure you have read or heard that foreclosures are on the rise and they are, but where is all the inventory? Great Question.. The answer in my experience is more difficult to express.... I am a member of Realty Trac, which tracks this data and they indicate that Florida is one of the BIG 4 states that has been hit the hardest... On top of that, Sarasota was a media darling nationally with huge appreciation during the boom and has been one of the worst hit markets in terms of valuations in the state with Fort Myers being the worst in the nation...
To find the answers, you will need to study history as it tends to repeat itself. In the mid 1980's, you may have heard or remember the Saving + Loan bank debacle. When the dust cleared, the Government & remaining banks decided it was in their best interest not to resell the foreclosed properties, but to rent the property back to the owner that was foreclosed and wait until the market returned to a more stable market.. Just 3 years later, the Government & banks made substantial profits on reselling their foreclosures.. It reduces the supply of homes for sale on the market and when demand returns, the market will naturally appreciate.. Additionally, if the properties are vacant, vandalism, theft, mold, etc. will incur thus reducing the value and demand for the home.
Currently, the demand for foreclosures are high, but the inventory continues to remain very low. I check the number of HUD foreclosures on a weekly basis.. This past week had only 1 property in Sarasota county and it was located in North Port and only 3 properties in Manatee county. Additionally, the number of bank foreclosures remains very low as well with just a few hitting the market on a weekly basis.. These properties are priced very aggressive and sell in just a few days with multiple buyers bidding on the property.
In Summary, the Government & Banks control the destiny of these foreclosures and you have to think what is in their best interest & research the past as it tends to give you a path of what most likely will happen next.
To find the answers, you will need to study history as it tends to repeat itself. In the mid 1980's, you may have heard or remember the Saving + Loan bank debacle. When the dust cleared, the Government & remaining banks decided it was in their best interest not to resell the foreclosed properties, but to rent the property back to the owner that was foreclosed and wait until the market returned to a more stable market.. Just 3 years later, the Government & banks made substantial profits on reselling their foreclosures.. It reduces the supply of homes for sale on the market and when demand returns, the market will naturally appreciate.. Additionally, if the properties are vacant, vandalism, theft, mold, etc. will incur thus reducing the value and demand for the home.
Currently, the demand for foreclosures are high, but the inventory continues to remain very low. I check the number of HUD foreclosures on a weekly basis.. This past week had only 1 property in Sarasota county and it was located in North Port and only 3 properties in Manatee county. Additionally, the number of bank foreclosures remains very low as well with just a few hitting the market on a weekly basis.. These properties are priced very aggressive and sell in just a few days with multiple buyers bidding on the property.
In Summary, the Government & Banks control the destiny of these foreclosures and you have to think what is in their best interest & research the past as it tends to give you a path of what most likely will happen next.
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