The Future Of Buying Real Estate: RPR

There's a new acronym to add to your vocabulary - RPR.  Not too long ago I reported in a post that there is no national database of houses for sale.  Now comes word from our National Association of Realtors® that they are working on RPR.  What's that you say?

"The National Association of Realtors® has acquired technology to create a database of all properties in the U.S. so Realtors® can better assist consumers in a high-tech, fast-paced business world.

The technology acquisition includes licensed data and secured data aggregation services from LPS Real Estate Group, a wholly owned subsidiary of Lender Processing Services Inc. (NYSE:LPS), a leader in real estate technology. NAR will use the assets to develop the Realtors® Property Resource™, a parcel-centric information database covering all of the more than 147 million property parcels in the country as a resource for NAR members. NAR is planning to launch RPRTM in the second quarter 2010.

'Realtors® are the first, best source for real estate information, and the RPR™ is another emphatic feature to that resource. RPR™ will give Realtors® nationwide data on all properties at their fingertips so they can respond quickly to consumers interested in residential and commercial real estate. This is exciting news and a terrific NAR member benefit. NAR is committed to keep Realtors® central to the transaction and to the buying and selling experience with their clients and customers,' said NAR President Charles McMillan.

RPR™ will provide nationwide access to public record information such as tax and assessment data, liens, zoning, permits, environmental information, and information on neighborhoods, school district and community demographics, along with advanced search features for property searchers, as well as market-to-market comparisons and referral opportunities not currently available."

Obviously there have been debates across the U.S. as to whether this will in fact be a good thing for consumers.  There are also those pessimists who feel that the Realtor® model will disappear.  Frankly, I don't think that will happen.  I think providing information to consumers to assist them in making good decisions is always what a Realtor® should be doing.  That's the main reason and foscus of why I write this blog.

Further, if you've been reading my blog, there's a lot involved in purchasing any kind of real estate investment that includes knowledge of laws, rules, regulations, etc. and the one thing that always comes into play is emotion whether a buyer or seller feels they are emotionally involved or not.  As a Realtor®, I have the training, knowledge, experience and education to assist in keeping my buyers and sellers informed and on track towards making the best decisions for them.

ALL ABOUT.....Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).
Portland

Buying A House To Fix Up - Fixer Uppers

Perhaps one of the greatest opportunities to create wealth or generate a high rate of return on an investment exists in buying real estate that can be fixed up or improved.  The changes sometimes can be as simple as a coat of paint, new carpet, or even just floor and window coverings.  During my marriage, we bought fixer uppers in different conditions of repair.  We lived in the house and then resold each house at a future date. We did that for over 20+ years.  Buying a fixer upper, however, is not for the faint at heart as it takes hard work.

However, with all the foreclosures that have been abandoned or destroyed, there are too many houses that need rehabing.  If you're wanting to become a rehabber, remodeler, etc. in today's market, there is a financing tool that can assist you.  Actually, it has been around for a very long time and in the 70s, 80s and even into the 90s, I sold houses using that financing.

It's the FHA 203K. 

When you purchase a home that needs repairs, often the bank won't lend the money to buy the house until the repairs are complete, and the repairs can't be done until the house has been purchased.  HUD lets you purchase or refinance a property plus include into the loan the cost of making the repairs and improvements.  The FHA insurance 203K loan is provided through approved mortgage lenders nationwide and is available to persons wanting to occupy the home. The program can be used for one-to-four unit dwellings. Maximum mortgage limitations are the same as for properties under Section 203(b).

The "Steamline (K)" Limited Repair Program permits homebuyers to finance an additional $35,000 into their mortgage to improve or upgrade their home before move-in.  Homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser.

The FHA-backed 203K rehab loan is becoming increasingly popular in today's market because there are too many properties that need repair.  A stream-lined 203K provides money to pay for improvements such as a new roof, appliances, furnace, energy-efficient windows and cosmetic improvements such as carpeting, paint and even remodeled kitchens and baths.

"When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan."

A licensed contractor must complete the work within 6 months.  Some lenders will allow the borrower to do minor cosmetic work such as painting themselves.

Eligible Improvements

• structural alterations and reconstruction
• modernization and improvements to the home's function 
• elimination of health and safety hazards 
• changes that improve appearance and eliminate obsolescence
• reconditioning or replacing plumbing; installing a well and/or septic system 
• adding or replacing roofing, gutters, and downspouts
• adding or replacing floors and/or floor treatments 
• major landscape work and site improvements
• enhancing accessibility for a disabled person 
• making energy conservation improvements

Seeing a property and its potential for improvement presents an opportunity to create appreciation and increase its value.

ALL ABOUT.....Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).
Portland

Buying A House Using The Home Buyer Tax Credit

Inspite of the new tax credit signed into law yesterday by President Obama, there is still some confusion and many people are now starting to ask questions as to who qualifies, etc.  Yesterday, in my post I submitted an easy to read chart with the particulars.  To emphasize some information in that chart, a purchase to qualify would have to be made after enactment i.e.  it was signed 11/6 by the President which means it is effective  - November 7, 2009:

Who is Eligible

• First-time home buyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit. 
• Existing home owners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for up to a $6,500 tax credit. 
• All U.S. citizens who file taxes are eligible to participate in the program. 

Income Limits

• Home buyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.  
• For married couples filing a joint return, the combined income limit is $225,000. 
• Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.  
• The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000. 

Effective Dates

• The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009 i.e. effective November 7, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.  If a written binding contract to purchase was in effect by April 30, 2010, the purchaser will have until July 1, 2010 to close

 Types of Homes that Qualify

• All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify.   

 Tax Credit is Refundable

• A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference. 
• For example:  
  • A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 refund, you would receive $9,000 ($1,000 plus the $8,000 first-time home buyer tax credit).  
  • A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit). 
• All qualified home buyers can take the tax credit on their 2009 or 2010 income tax return. 

Payback Provisions

• The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.

The www.federalhousingtaxcredit.com site is being updated. Please check the site next week for more detailed information on the new tax credit!  

ALL ABOUT.....Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. ©

Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).
Portland

Home Buyer Tax Credit - Are You Pre-Approved?

NOW OFFICIAL - PRESIDENT OBAMA HAS SIGNED TAX CREDIT INTO LAW.  11/6 10 a.m.

We are very close to getting final approval for extension of the tax credit.  The bill has passed both the Senate and the House of Representatives, and the President's signature is expected Friday. 

The legislation includes the following components (here's a link to a chart with more particulars of the tax credit):

• The $8,000 tax credit will be extended and available for first-time purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010, will be allowed an additional 60 days to complete the transaction. Income limits are expanded to $125,000 on a single return and $225,000 on a joint return.  
• A new $6,500 tax credit will be available for repeat buyers who purchase between December 1, 2009, and May 1, 2010. To qualify for this provision, buyers must have lived in their homes consecutively for 5 of the previous 8 years.

There are many that don't accept the "Buy Now" propaganda.  However, prices are low, interest rates are historically low, there's lots of inventory to choose from, and with the additional tax credit, how can one say now is not a good time to buy?  Very rarely in my 34 years, and I've written about this before, have I seen where everything falls into place perfectly.  Now is a time where it's close to being perfect - low prices, low rates, lots of inventory, tax credits, etc.

If you have a job, have savings, have a down payment, what is stopping you from buying a home?  As indicated in previous posts, I've always owned and I don't believe in paying off someone else's mortgage by renting.  I believe it's far better to build your own equity than someone else's. Granted there are reasons and times you should rent instead of buy, however, for the most part, I believe in buying a home of your own (I know you're thinking, but I'm the Realtor®).

Now is the time to get pre-approved for a loan if you are planning on utilizing the tax credit.  Time passed quickly during the first tax credit time period and you don't want to waste precious time this go-around -- get pre-approved now.

Let me help, I'd love to be your Realtor®!

ALL ABOUT.....Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).

Portland

Market Update: First Time Home Buyers In Portland

I had a different post written for today, but I will wait to post that until the end of October.  In the meantime, our RMLS™ blog posted this information about first-time home buyers in Portland:

Homes below $400k make up 85% of sales in September

I recently read that in Phoenix,  93% of September Home Sales were below $400k.  The author says that Phoenix is essentially a “tale of two markets”, one where homes in the lower priced spectrum are selling & where high-end homes are sitting.

We’ve looked at similar numbers before to see how the homebuyer tax credit was effecting the Portland market, so I figured it was time to take a look at these numbers again & see how we compare to the Phoenix sales by price range – here’s what I found:

% of Portland Home Sales by Price Range (September 2009)

	Sept. 2009	% of Sales	Sept. 2008	% of Sales
$0-$150k	190	10.4%	115	6.6%
$150-$200k	383	20.9%	235	13.6%
$200k-$250k	416	22.7%	420	24.3%
$250k-$400k	569	31.0%	633	36.6%
$400k-$500k	142	7.7%	170	9.8%
$500k-$750k	96	5.2%	114	6.6%
$750k – $1 million +	38	2.1%	44	2.5%

% of Sales by Price Range, Combined (September 2009)      Sept. 09 Sept. 08 Below $250k 53.9% 44.5% Below $400k 85.0% 81.1% Above $500k 7.3% 9.1% As you can see, not quite as high as Phoenix, but still 85% of sales in Portland were below $400k, which is up about 4% from last September. Also note that sales below $250k are up 9.4% from last September. I suspect a lot of those sales can be attributed to the $8,000 tax credit (although some investors may also be cashing in on some lower priced homes as well). The tax credit is set to expire on November 30, and the debate rages on in Washington over its extension. It seems to have given the market here a boost, so it will be interesting to see how the market fares if/when it expires. If the tax credit does indeed expire, it would still take a lot for things to get worse this winter compared to last year. Last January we saw sales activity drag to the lowest total in the Portland metro area that we had seen since RMLS™ began keeping records in 1992.

ALL ABOUT.....Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).

Foreign Home Buyers Still Need Cash To Buy In U.S.

Recently I wrote a post about whether cash was still king here in real estate transactions.  It showed that conventional financing, in fact, had been the norm recently for buyers of real estate in the U.S.

I've written several posts on foreign buyers in the U.S. as well. The future dictates there will be more foreign buyers coming into the U.S. to purchase a piece of the American Dream and that new immigrants will be the majority of our future new home buyers.  However, foreign buyers are still needing cash to purchase any real estate here in the U.S.  according the most recent report by NAR (National Association of Realtors®);

"Pricing

The median price for a home paid by foreign buyers for the year ending in May 2009 was $247,100, higher than the overall national price of $198,100 in 2008. A significant number, 45.8 percent of foreign buyers, paid cash for their property, in part because obtaining a mortgage was more difficult than in prior years. The total dollar volume was $38.7 billion.

Origin of Buyers

U.S. laws do not restrict or scrutinize most property purchases by foreign nationals. There are few barriers to owning property here, unlike transactions in many other countries, although immigration laws prohibit foreigners from remaining in the U.S. continuously for more than six months without a special visa. In addition, international investors are afforded the same property rights as those enjoyed by U.S. citizens.

The top five countries of origin for foreign buyers were: 

• Canada, 17.6

• United Kingdom, 10.5 percent

• Mexico, 9.8 percent

• India, 8.5 percent

• China, 5.4 percent

The percentage of buyers from Canada, the U.K., and China declined from the previous study, while purchasers from Mexico and India increased. Although most buyers were from North America, Europe and Asia, buyers from Latin America, Africa, and Oceania also purchased U.S. real estate.

Most Popular States

Foreign buyers were active in every state and the District of Columbia, with the most popular states being Florida, which accounted for 23.0 percent of all foreign purchases; California, 13.0 percent; Texas, 10.7 percent; and Arizona, 7.1 percent. These states are major gateways into the U.S. from other countries and also offer relatively mild climates.

California saw a notable rise in foreign interest as affordability conditions improved markedly in the state last year. Florida was the most popular state for European and Latin American buyers, while Asian buyers are drawn to California.

Property Types

The study shows 69 percent of international purchases were single-family homes, while condos accounted for 18 percent. Townhomes made up 8 percent of transactions, with commercial property at 4 percent. Nearly 46 percent of properties were in suburban areas and 25 percent in urban environments. The rest were evenly split between resorts and small towns or rural areas."

Source:  NAR® 

© Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.

ALL ABOUT.....Portland.Oregon.Real Estate by Betty Jung is licensed under a Creative Commons Attribution 3.0 United States License.
Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).

Finding The Right House - Buying

You're searching for a new house, condo or other real estate on the Internet and you feel confident you can find your “dream” house without the aid of a Realtor®.  You want to "go it alone".  If you are only relying on search engines, such as Zillow, Trulia or Realtor.com® for example, you may miss finding the house of your dreams altogether.

Last weekend at an open house a buyer came through indicating she was working with a Realtor® but was also looking on her own.  She asked a few questions about the area and I mentioned some properties for sale.  Not only did she not know where the areas were, but she had no clue on how to find them.  By doing that kind of search, she'll keep running around town searching but never finding what she's looking for.

Did you know?

***Our Realtors’® Multiple Listing Service (RMLS™) has the most accurate  up-to-date listings.  

***You might think the Internet posts property listings instantly, however,  Zillow, Realtor.com® or Trulia for example, update from our RMLS™, do so at intervals and lag behind.  They could lag behind by a day, a week or longer.  If a property came on the market in the morning, an offer could have been received and gone sale pending long before the third-party site ever posted the property for sale and you will have missed it.  

***The problem with an "MLS" is that there is no nation-wide "MLS". Realtor.com® receives its listings from Realtor® boards and MLS service providers around the country. Not everyone is mandated to use the same software and same system. Some local boards and servicers have the option whether to reciprocate their listings with other organizations.  Realtor.com® then takes these millions of listings and tries to process them and puts the information out to the public. It is a logistical and technological nightmare. I have known of instances where it has taken over a week for a listing to show up on a national search site and many times the information such as price, bedrooms, etc. are inaccurate.  That has happened to me more than I can count with my own listings.  I will do a search on the Internet, and some other search site picks up the property listing that's for sale, but the data is all wrong.  Yet, it is my property listing and I have the information correctly posted.  I’ve seen my listings even appear on other agents’ sites within my own company with inaccurate information because that agent appears on a different search site that didn’t pick up the accurate data either.  The third-party sites also don't seem to remove some old listings with inaccurate data  from past agents.  Case in point was one of my listings.  It had been listed before by other agents over the history of the house and the "old" listings had never been removed by either the agent or Zillow.

***Many of the sites let you set up your own search parameters but they are limited.   Is a bedroom listed as a den or can it be a 4th bedroom?  Does the bonus room have a closet that can be used as a bedroom?  Are the houses listed as 3 bedrooms instead of a potential for 4th or 5th?  Even on my site on-line, you can enter your own parameters.  Of course, the more information you include in your search the more results you will obtain, however many more houses likely will be eliminated entirely.

*There have been many occasions when a property appeared when doing my own search for a client but didn’t appear on theirs.  That’s because we as agents have many more search parameters in our RMLS™ available to us than the public.  The IDX feed (stands for Internet Data Exchange) and provides the searchable fields you’re interested in filtering.  On third party sites not every database field in our RMLS™ is searchable by the public.  By searching those IDX-enabled third party sites you could miss many property listings because they just won't get captured.

***A daily “hot sheet” is available to us Realtors® through our RMLS™ where we see the activity instantly 24/7.  If a property went sale pending, back on the market, or went sale pending all in the course of one day (which happens in a hot market or certain market areas) most of the websites can’t keep up with that fast-paced activity.  Third-party sites show properties that are already in escrow (sale pending) as sold.  Once they get sold, the property falls off their national listing websites.  That property could be a sale fail and come back on the market, but the search engine wouldn’t show it as active because it had fallen out of their system.

***Further, houses that are for sale don’t always come on the active market.  There have been many times in my career where one of my listings sold in the office or by another agent I knew by word-of-mouth.  Other times I have called a client of mine who I knew was looking for a property just like it.  You’d never find those property listings in a search on Zillow, etc.

Of course, I’m the Realtor® talking and am biased.  Your best bet is to become a client of a Realtor® who has your best interests in mind to help find that right house for you.  You may not find your dream home on Zillow, Trulia, Realtor.com, or Craigslist because it may not show up on their site, ever.

© Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.

ALL ABOUT.....Portland.Oregon.Real Estate by Betty Jung is licensed under a Creative Commons Attribution 3.0 United States License.
Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com

The Roller Coaster Ride Debating The First Time Home Buyer Tax Credit

There's been alot written and many debates over the first time home buyer tax credit whether to extend, or not to extend it; to raise the limit, or not raise the limit; to open it up to all buyers or not to open it up to all buyers.  Everyone has an opinion and none more than the economists and many Realtors®.  You hear the arguments for and against.  There are several bills being considered as I write this post and none have been finalized or approved as yet with the November 30th deadline looming.  I am sure there will be continued debate.

What's interesting to me is those economists against it are the very people who didn't see the financial crisis or housing decline coming.  Remember it's been the economists who have said don't invest in real estate but buy stocks instead. For the most part, many of those Realtors® who are in opposition, weren't around selling real estate in the 1980s, don't remember how bad it got or can still get, or they have forgotten.  I haven't forgotten as I was selling real estate here in the 1980s.

Many people feel the home buyers' tax credit shouldn't be extended.  There are those that feel government shouldn't get involved and let the market work itself out.  There are others who say the focus should rather be on jobs than handing people more money.   Like everyone else, I also want our employment situation to improve.  There should be less unemployment, with the job market and businesses here in Oregon improving and new industries coming to Oregon to invest.  Our unemployment numbers have doubled in Portland, and Oregon overall, since last year.  It's not that I don't think there should be more emphasis in getting people back to work, because I do.  Without jobs people won't be able to afford houses or much of anything else. 

Most of us don't want bigger government, and we certainly don't want government to have a "hand" in our lives, nor do we want the long-term debt.  We also all want more jobs, more industry, a better economy. On those things we can all probably agree.  In normal times, we wouldn't favor such government involvement, but these are not normal times. I feel strongly that expanding and extending the tax cedit will not only help stabilize housing prices, but will help us from falling back into recession.

In addition, I  believe extending the home buyer tax credit to all home buyers and increasing its limit would help nudge housing on a road to recovery.  Although expensive, the tax credit went to tax payers and not the guys in their pin-stripped suits on Wall Street.  It helped a new buyer get into their first home thereby stimulating further outlays of money into the economy by purchasing additional goods and services.  It helped the seller move on and possibly avoid yet another foreclosure.   The tax credit put others to work - contractors, landscapers, builders, etc. that have been in dire straits. It helped keep communities intact and retain their sense of pride, prevented houses from going in disrepair and prevented more children from possibly being homeless.  It helped decrease the number of houses on the market for sale. Where are these not good things?  Albeit, some will say at what cost?

Real Trends just completed a survey about those buyers who have already used the tax credit:

• 94% were aware of the federal first-time buyer tax credit.
• 82% listed the ability to obtain financing as "very important" or "most important."
• 91% percent reported low home prices as "very important" or "most important."
• 26% planned to use the tax credit to purchase home furnishings
• 12% planned to use it for home improvements.

As stated above, there is no final outcome to this debate as yet.  I attended a meeting of our Portland Board of Realtors® a couple of days ago where a Washington D.C., National Association of Realtors®, Government Affairs representative spoke on the first-time home buyer tax credit among other things.  He indicated that more than likely the credit will be extended until June 2010, however, no indication yet as to whether it will be increased in $ amount and open to all buyers.  The recovery is not certain yet. Our market is still fragile. Foreclosures remain at record levels, unemployment is still rising and home prices are not rebounding. An extended and expanded tax credit would provide continued momentum and keep us on the road to a full recovery - at least that's my opinion.

© Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.

ALL ABOUT.....Portland.Oregon.Real Estate by Betty Jung is licensed under a Creative Commons Attribution 3.0 United States License.
Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).

First Time Home Buyer Tax Credit - The Rush Is On

The deadline is looming and the clock is ticking with the November 30th deadline just around the corner.  If you aren't involved in a transaction by October 1, you may miss out on the $8000 first time home buyer tax credit. 

First-Time Home Buyer Tax Credit

The New York Times wrote an article Friday saying that 100,000s of houses were sold that wouldn't otherwise have occurred without the tax credit and those sales helped stabilize the real estate market at a time of crisis when fears of a new economic depression were widespread and highly creditable.

There has been talk by lobbyists of getting Congress to increase the tax credit to $15,000 and expanding it to cover all buyers, not just first time buyers.  To date, nothing has been finalized.  The Times article quotes experts who estimate the cost of extending and expanding the tax credit at between $50 billion to $100 billion. 

NAR Weighs In On First Time Home Buyer Tax Credit

According to NAR (National Association of Realtors®), much of the sales activity is due to lower home prices and first-time buyers taking advantage of the $8,000 federal tax credit. Our association estimates 350,000 of the projected 2m first-time homebuyers who have or will take advantage of the credit would not have purchased without the incentive.

NAR expects existing-home sales to rise through the fourth quarter, but unless the tax credit is extended, no one should be surprised to see home sales drop in the first quarter of next year. NAR also expects home sales to increase in Q2010.

Where Is The Tax Credit Going?

CNN just released a map showing where buyers having been taking advantage of the tax credit: