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There’s 100 Days Left To Claim The Homebuyer Tax Credit

On January 20, 2010, in Uncategorized, by Tyler Ford | View Comments

100 days remain for the Home Buyer Tax Credit ExpirationNovember 6, 2009, Congress voted to extend and expand the First-Time Home Buyer Tax Credit program.  There’s 100 days left to claim it.

The expiration date of the up-to-$8,000 tax credit has been pushed forward to spring, requiring homebuyers in Tucson to be under contract for a home no later than April 30, 2010, and to be closed no later than June 30, 2010.

In addition, “move-up” buyers were also added to the program’s eligibility list meaning you don’t have to be a first-time home buyer to be eligible for the tax credit.  If you’ve lived in your home for 5 of the last 8 years, you meet the IRS requirements.

Move-up buyers are capped at a total tax credit of $6,500.

The tax credit’s basic eligibility requirements remain the same:

  • You can’t purchase the home from a parent, spouse, or child
  • You can’t purchase the home from an entity in which they’re a majority owner
  • You can’t acquire the home by gift or inheritance
  • All parties to the purchase must meet eligibility requirements

The new law includes some notable updates, however.

First, the subject property’s sales price may not exceed $800,000. Homes sold for more than $800,000 are ineligible.  And, also, household income thresholds have been raised to $125,000 for single-filers and $225,500 for joint-filers.

    And lastly, don’t forget that the program is a true tax credit — not a deduction.  This means that a tax filer who’s eligible for the full $8,00 credit and whose “normal” tax liability totals $5,000 would receive a $3,000 refund from the U.S. Treasury at tax time.

    The complete list of qualifying criteria is posted on the IRS website.  Review it with a tax professional to determine your eligibility.  Then mark your calendar for April 30, 2010.

    There’s just 100 days to go.

    What’s Ahead For Mortgage Rates This Week : January 19, 2010

    On January 19, 2010, in Uncategorized, by Tyler Ford | View Comments

    Inflation squeezes mortgage ratesMortgage markets showed little conviction last week, carving out just a narrow trading channel. There was very little data on which for markets to move, leaving mortgage rates momentum-bound.

    Luckily for rate shoppers, mortgage rate momentum was favorable. Rates were slightly lower Monday through Thursday before breaking downward Friday afternoon. Home shoppers in Tucson this past weekend caught a nice break.

    Last week marked the second straight week in which mortgage rates fell.

    This week, in holiday-shortened trading and with little economic data set for release, expect mortgage rates to again move on momentum. The biggest report of the week is Wednesday’s Producer Price Index.

    Producer Price Index is important to mortgage rates because of its role in inflation.  PPI is akin to a Cost of Living-type measurement, but for business.  As business costs rise, the thought goes, it’s not long before consumer costs rise, too. Businesses eventually pass on costs, after all.

    In this manner, a rising Producer Price Index can foreshadow rising consumer prices, and, therefore, inflation.

    Inflation is awful for mortgage rates.

    PPI expectations have revised downward this month, especially because last week’s data showed a deceleration in consumer prices nationwide. If PPI isn’t as weak as expected, mortgage rates will rise.

    Other influential data this week includes Housing Starts, Consumer Confidence and Initial Jobless Claims.

    So far, 2010 has been for mortgage rates in Arizona and around the country. If you’re in need of a rate lock, this week may be a good time to take one.

    RealtyTrac’s 2009 Foreclosure Report Gives Reason For Optimism

    On January 15, 2010, in Uncategorized, by admin | View Comments

    Foreclosure deltas for the ten most foreclosure-heavy states of 2009

    Like real estate, it appears that foreclosure activity is a local phenomenon, too.

    As reported by RealtyTrac.com, more than half of all foreclosure-related activity in 2009 came from just 4 states:

    1. California
    2. Florida
    3. Arizona
    4. Illinois

    More than 1.4 million filings made in 2009 are attributed to the above states. Furthermore, each ranks in the Top 10 for 2009 Foreclosures Per Capita.

    The other states are Nevada, Utah, Georgia, Idaho, Michigan and Colorado.

    Versus 2008, foreclosures are up 21 percent nationwide and that’s a big number, but a deeper look at RealtyTrac’s annual reports reveals a more positive undertone on the housing market.

    1. 40 states fell below the national Foreclosures Per Capita average in 2009
    2. Foreclosure activity fell on an annual basis in 10 states as compared to 2008

    Foreclosures are still prevalent, though, and buying homes in foreclosure in Tucson continues to be big business.  First-time buyers, move-up buyers, and real estate investors each are bidding aggressively.

    Distressed homes account for one-third of home resale activity, according to an industry trade group.

    That said, buying foreclosures can be tricky.

    First, properties are often sold “as-is” and the cost of repairs may unwind the home’s status as a “value buy”.  Furthermore, a lender may require specific fixes to be made prior to closing and that, too, costs money.

    Second, buying a foreclosed home in Arizona isn’t as streamlined as buying a “normal” home. Closing on a foreclosure can be a 120-day process or longer. A 4-month time-frame may not fit your schedule.

    And, third, finding foreclosures can be difficult. Despite the growth in foreclosure search engines, it still takes a good real estate agent to uncover the best homes at the best prices.

    Read the complete foreclosure report and take a peek at RealtyTrac’s foreclosure heat maps.  If you like what you see, talk to your real estate agent about what to do next.

    There’s still good deals in the foreclosure market — you just have to know where to find them

    Retail Sales Dropped In December And Now So Are Mortgage Rates

    On January 14, 2010, in Uncategorized, by Tyler Ford | View Comments

    Retail Sales December 2009

    Mortgage rates are dropping this morning on weaker-than-expected Retail Sales data from December. Lower rates means more bang for your home-buying buck.

    Excluding motor vehicles and parts, December’s “ex-auto” sales receipts were down roughly $500 million from November. Analysts had expected receipts to grow.

    The relevance of Retail Sales to home affordability isn’t obvious, but it’s definitely logical.

    Retail Sales is directly related to consumer spending and consumer spending accounts for the majority of the U.S. economy. When consumer spending slows, the economy often does, too. It leads investors to seek out “safe” investments.

    It’s the reason why stock markets often drop on weak economic data — stocks are among the riskiest investment classes available.

    Conversely, the best place to find safety is in the market of government-backed bonds.  This world includes products like U.S. Treasuries and many of the mortgage-backed bonds that help set mortgage rates for people in Tucson.  Weak economic data puts mortgage bonds in demand.

    For rate shopper, this is good news.  More demand for mortgage bonds causes mortgage rates to fall.  Mortgage rates are lower this morning because Wall Street is shedding some risk.

    December’s Retail Sales report closes out a year of generally-weak data.  2009 marks just the second time that Retail Sales fell year-over-year since the government started tracking it 40 years ago.  The other year was 2008.

    For home buyers in Tucson and around the country, though, today may represent an opportune time to lock a mortgage rate.  Housing data is still improving and other economic indicators are showing strength.  Soon, Wall Street will shift from a “safe” mentality and move toward risk.

    When it does, mortgage rates will rise.

    10 Cities For Home Bargains – Tucson, AZ is on the list

    On January 13, 2010, in Uncategorized, by Tyler Ford | View Comments

    As the housing market improves across the country, certain cities are emerging as relative bargains.  Some areas, like Miami, were hit hard by the recession, and other areas are buoyed by good school systems and strong labor markets.

    In this 5-minute video from The Today Show, 10 cities are highlighted for their home prices.  And they’re not “small towns”, either.

    Among the featured cities:

    • Miami, Florida
    • Akron, Ohio
    • Tucson, Arizona
    • Minneapolis, Minnesota
    • Trenton, New Jersey

    Now, this piece is about finding gems on a national scale.  They exist locally here in Tucson , too.  You just need to know what to look for.

    With mortgage rates low and tax credits available, it’s not likely that bargains will last. Visit http://www.tucsonmortgages.com to get pre-approved today.

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