Update- Tax Credit For First Time Home Buyers

There has been some encouraging news on the extension of the $8000 tax credit… however, it is NOT a done deal, as it still must be reconciled between the House and Senate and then voted on for final approval.
It is not only looking good for the extension, but there are some additional enhancements to the credit in the works as well. Yesterday, the Senate reached an agreement to extend the $8000 tax credit for first-time home buyers. They also added a $6,500 tax credit for other primary home purchasers, meaning that it is not just limited to first time home buyers.
They also raised the qualifying income limits in a very meaningful way – singles were increased from $75,000 to $125,000, and joint taxpayers from $150,000 to $250,000. Buyers must have executed purchase agreements in hand by April 30th, and then will have until June 30th to close.
More details are likely to come, and changes could be made as reconciliation and voting takes place.
I will keep you posted, but if you have any immediate questions, please feel free to contact me.

Seven New Rules For First Time Home Buyers

Very good information for first time buyers:

http://www.nytimes.com/2009/09/12/your-money/mortgages/12money.html?_r=1

October 2009 Real Estate Outlook

October Housing Supply Outlook

The October Housing Supply Outlook just hit your intertubenetz. As usual, here's some quick takeaways from this dense and detailed look at supply-demand dynamics in the Twin Cities housing market:

Takeaway #1: If you're buying a home in the price range below $120,000, you're gonna have to move fast. There's only 2.9 months of supply in that range, which places it in the extreme seller's market category. The reason for the tight inventory picture? There's been a huge upsurge in home buying activity—sales are up 127.5 percent in that category over the last twelve months.

Takeaway #2: The number of new construction properties available for sale continues to shrink rapidly as builders pull back from creating new inventory. The current inventory of 2,426 listed new construction properties in the MLS system represents a drop of over 1,200 units from a year ago.

Takeaway #3: Unfortunately for builders, new construction home sales have also rapidly declined, falling by 18.8 percent (over 800 units) in the last twelve months.

Crunch Time for First Time Buyers

The rush is on for first time buyers trying to get into a house and get the $8000 tax credit. Check this out:

http://www.startribune.com/lifestyle/homegarden/63358102.html?elr=KArksUUUoDEy3LGDiO7aiU