Real Estate Market: Extension of tax credit closing deadline

  There are a lot of rumors going around that the tax credit deadline for closing by June 30th has been extended. I just wanted to people to be informed and know that this is not the law as of yet. The article below is the latest news on this issue. The Senate has agreed on the change but it is wrapped up in a bill with many parts to it. For this to be approved and made a law will take several more steps. So, keep in touch with this and don’t assume that you will be able to close beyond June 30th and still get your tax credit.  I will try to keep you updated on this issue as the news comes out from Washington on this issue. Some of you are waiting on pins and needles to hear if Congress will allow homebuyers more time to close on deals signed by April 30 with the expectation of a $6,500 or $8,000 tax credit, so I checked in with the National Association of Realtors for an update. Trouble is, the amendment the Senate approved last week — which would push the June 30 closing deadline to Sept. 30 — is attached to a bill that is far from a sure thing. The American Jobs and Closing Tax Loopholes Act “is a Christmas tree, it’s got everything in it, all kinds of stuff, and it looks like that bill is going to have a really tough time to be moved in the Senate,” said Lucien Salvant, a spokesman for the Realtors group. “The Senate has failed twice now to end debate on the major jobs creation bill, so I’m not sure what’s going to happen,” he said. The trade group believes that as many as 180,000 buyers are in danger of missing the June 30 closing deadline, many of whom are trying to settle on short sales — notoriously not short when it comes to the time involved. Even if the Senate does approve the overall bill, it will have to go back to the House for a vote, Salvant said. The Realtors are hearing no objection for the extension from House leadership, he said. So he thinks it will happen. “But I don’t know when,” he said. .

LAST CALL!!

September 2009

I am sure you are familiar with the stimulus provision that provides an $8,000 tax credit to first-time buyers if you purchase and close on a home prior to December 1, 2009. This is an amazing opportunity for first-time buyers to take advantage of the current real estate market benefits. Just what are the current benefits? First, affordability is at an all-time high. According to the National Association of Realtors, 72.3% of Americans can afford to buy the median priced house with their median family income. This number has never been higher since we began keeping records. Second, interest rates remain historically low. So long as you have good credit and stable, documentable income, rates remain between 5% and 5.5% for a conventional loan. I anticipate these will rise as the economy continues to improve, Third, inventory levels are high, providing you with a wide choice for the home of your dreams. Builder spec models, resale homes and distressed properties are all in great supply. Lastly, the $8,000 tax credit provides you with real cash if you are a first-time buyer (or if you have not owned a home in the previous three years). Please consult with your tax advisor for details on this program. So, why is this last call? With the tax credit currently set to expire on December 1, 2009 you have a limited time to take advantage. If you already own your own home and are considering a move, I anticipate interest rates will rise and inventory levels will drop next year. This will reduce affordability as the economy improves and make your move-up purchase more costly. Pull the trigger now and take advantage of this last call! Call the Lee Ann Miller Team Today!

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