New Home Buyers - You Have 2.5 Months To Get $8,000.

By Troy Corman, t2realestate.com

The clock is ticking for first-time and move-up home buyers who want to take advantage of the free government money for qualified home purchasers. The original deadline of November 30, 2009 has been extended to April 30, 2010. That is the date home buyers must have an executed contract signed by all parties involved in the sales transaction. The next requirement is that the sale must be closed by June 30, 2010.

This could get dicey for procrastinators, as the big banks who have lobbied Washington to muscle out the independent mortgage industry, can sometimes take twice as long to get mortgage loans closed - especially when most of the deals will probably all occur during a six to eight week time frame. Also, lookey-loos and those that suffer paralysis by analysis will likely find attractive homes at attractive prices gone by the time they decide to make an offer.

As a reminder, income limits have been increased for this latest version of the government tax credit refund. Singles with modified adjusted gross incomes of up to $145,000 can qualify although phase-outs begin at $125,000. For couples filing jointly, the credit begins phasing out at $225,000 and modified adjusted gross incomes above $245,000 do not qualify.

Also, home owners who have lived in their current principal residence for 5 years can qualify for up to a $6,500 credit.

The credit:

* Applies only to homes used as a taxpayer's principal residence.
* Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
* Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

The credit is claimed using Form 5405, which you file with your original or amended tax return.

Many ask me if I think the refund credit will be extended. Honestly, I don't think so. With tax payers and tea party constituents exhausted with big government's continued waste of hard working American's tax payer dollars, I would be very surprised if the credit was extended into a 3rd act. Democrats and liberals are running for the exits from the Obama camp, and are likely to toot the horns of fiscal constraint to save their own political hides. That's why I would be very surprised if the tax refund will have the political support to continue beyond the April 30 executed contract deadline.

Texas Home Sales Volume And Prices Up in 2009-Q4

February 1, 2010 - Austin.
Release From Texas Association of Realtors Summarized by Troy Corman, t2realestate.com

The Texas A&M University Real Estate Center has released data that show that Texas' sales volume increased 16% from the fourth quarter of 2008. The average home price also jumped 2.35% to $143,400 from $140,100 in the previous year.

Jim Gaines, Ph.D., and economist with the Texas A&M Real Estate Center said, "while figures throughout the first quarter of 2009 were positive compared to 2008, they were particularly positive in October and November, which makes it clear that the first-time homebuyer tax credit is having an impact in Texas. The increase in median price also stands out, particularly compared to national figures, which are down substantially."

Texas also enjoyed a decrease in the number of homes of inventory on the market. It dropped from a 6.6 months' supply to 6.5 months. The Texas A&M Real Estate Center typically uses 6.5 months' supply as a target point for a healthy, balanced market.

To view the Texas Quarterly Housing Report for 2009, visit texasrealestate.com.

Dallas Home Prices Up 1.4% Over Last Year In Latest Case-Shiller Home Price Index

By Troy Corman, t2realestate.com

The latest S&P/Case Schiller Home Price Index was released today January 26, which reflects the statistics from national home prices during November 2009. The Index measures residential housing prices in 20 metropolitan regions in the U.S.

Dallas posted a 1.4% increase in average home prices that were recorded from homes sold in November compared to November 2008. Three other cities also posted increases.

Although home sales were sluggish in December following the original deadline for the government tax refund, home prices are likely to stabilize or increase as we approach the revised home purchase contract deadline date of April 30, 2010. You must have a signed, executed contract by that date. Also, income limits have been relaxed to allow singles with incomes up to $145K to receive a refund, while couples filing jointly are eligible with incomes up to $245K.

In addition, if you have lived in your current home for 5 years, you can also qualify for the $8,000 tax refund. With rates near historic lows, and home prices at affordable levels, now is a great time to buy. So stop making the landlord rich!

Search DFW homes now at dallashomes2buy.com

Senators Now Considering A $15,000 Tax Credit For ALL Home Buyers

Senators are now considering increasing the $8,000 home buyer tax credit up to $15,000.

Also, they are considering eliminating previous restrictions so that singles earning over $75K and couples earning over $150K would be eligible under the new plan. And unlike the current $8,000 home buyer tax credit plan, those who have bought a home during the last 3 years would also be eligible.

The new $15,000 home buyer tax credit plan would apply to primary residences and could also include multifamily properties that are bought as primary residences. This would be an awesome incentive and would make home ownership and fixer-uppers more affordable, especially when used in conjunction with the FHA 203K rehab loan program.

The 203K allows home buyers to use a government loan to both buy a home and pay for the rehab, meaning you could only be required to use 3.5% of your own cold, hard cash on a home that requires tens of thousands in rehab.

The $15,000 home buyer tax credit was first floated by Republican law makers a few months ago but was killed by the Democrats. I think the increased home buyer tax credit has a much better chance to pass now since other so called stimulus spending hasn't made much of an impact. Perhaps, they've decided that spending tax payer money to save minnows in California isn't doing much to help the average hard working American trying to support his family.