Forward this message to a friend
Shalizi Real Estate
 
Click here for SFAR's most recent statistics

 
Thinking about moving in the next ten years? Here are some suggestions for relocation from US News and World Report. 

 
Home Buyer Tax Credit Boosts Home Sales
 
According to the National Association of Realtors:
 
      Consumers cashed in on the Home Buyer Tax Credit in November. 
  • Existing home sales rose by 7.4%, compared to sales in October    
            .    Consumers rushed to take advantage of the home buyer tax credit before
                    the November 30th deadline. (At the time, it was not clear that Congress
                    would extend the program which they have until May 30th, 2010.)
             .    Home sales in November reached the highest level since February 2007.
 
  • Regionally, existing-home sales rose in all four regions of the country in November.
            .    Northeast
                        Sales rose by 6.6%
                        52.7% higher than November 2008
                        The median home price was at $223,000 which is 13.1% down from November 2008
             .    Midwest
                        Sales rose by 8.4%
                        53.6% higher than November 2008
                        The median home price was at $140,800 which is 0.4% down from
                           November 2008
             .    South
                       Sales rose by 4.8%
                      44.8% higher than November 2008
                      The median home price was at $151,400 which is 1.4% down from
                        November 2008
             .    West
                        Sales rose 10.6%
                       28.1% higher than November 2008
                       The median home price was at $231,100 which is 4.1% down from
                          November 2008
 
The above are national figures. Looking at the market closer to home, in November 2009 the median home price in Santa Fe County was $258,125 down from $309,500 in November 2008.
 

 
Real Life - A Price Worth Paying
 
No one likes it when changes to mortgage underwriting make it harder for working households to secure safe and affordable home financing.
 
But in the case of the FHA’s tightened lending requirements announced in late January, the end may justify the means. Read More in the latest issue of REALTOR Magazine

Tax Credit Deadline: What You Need to Know
 
As part of its plan to stimulate the U.S. housing market, Congress last fall approved the Extended Home Buyer Tax Credit. This extended the deadline for the First-Time Home Buyer Tax Credit from Nov. 30, 2009, to April 30, 2010, and expanded it to include repeat buyers.
 
What’s the deadline?
To qualify, first-time and repeat buyers must have a binding written contract by April 30 and close by July 1.
 
How much money is available?
The maximum allowable credit for first-time home buyers is $8,000. The maximum for repeat buyers, also referred to in the legislation as "long-time residents," is $6,500.
 
What properties are eligible?
The Extended Home Buyer Tax Credit may be applied to primary residences, including single-family homes, condos, townhomes, and co-ops.
 
How do buyers get the benefit?
Buyers can apply the credit to their 2009 tax return, filed on or before April 15, 2010; file an amended 2009 return; or apply the credit on their 2010 return, filed on or before April 15, 2011.
 
Who qualifies?
To qualify as a first-time home buyer, the purchaser or his or her spouse may not have owned a residence during the three years prior to the purchase. To qualify as a repeat buyer, current home owners must have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
 
Are there income limits?
The new law raises the income limits for people who purchase homes after Nov. 6, 2009. The full credit will be available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers. Those with MAGI between $125,000 and $145,000—or $225,000 and $245,000 for joint filers—are eligible for a reduced credit. Those with higher incomes do not qualify.
 
From REALTOR Magazine March 2010

Those Who Wait Will Pay Thousands More This Spring
 
Waiting a few extra days or weeks to purchase a home this spring could cost buyers thousands of extra dollars as the office of Housing and Urban Development (HUD) implements several changes for loans guaranteed by the Federal Housing Authority (FHA).

Coming just weeks before the April 30 deadline for the Home Buyer Tax Credit and just days after the March 31 expiration of the Federal Reserve Board's mortgage backed securities purchase program (which has kept home loan rates artificially low for over a year), these FHA changes make it even more important to act now to save big.

Here are a few reasons why:

On April 5th, the cost of required up-front mortgage insurance for loans guaranteed by the FHA will increase from 1.75% to 2.25%. For a borrower purchasing a $200,000 home with a $7,000 down payment, the up-front mortgage insurance will increase by $965. Up-front mortgage insurance is typically financed in the final loan amount so the impact to a monthly payment will be minimal but overall, the increase is still borne by the borrower both upfront and monthly.

Later this spring, the amount of money that a seller can return to the buyer from their sale proceeds will be reduced from 6% to 3%. The reduction in these "seller concessions" can increase the amount of cash a buyer will be required to pay at closing by $6,000 for a home purchase of $200,000.

There is only one way to avoid being affected by all of these costly changes that lie ahead – submit all FHA mortgage applications by the last week of March.
 
Thanks to Frank Sena, Senior Loan Officer, L&G Mortgagebanc for this article
Baro Shalizi
Qualifying Broker
ABR, CIPS, CRS, e-PRO, GREEN, GRI
shalizi@aol.com
Cell: 505-670-8431
Office: 505-474-4203
Gail Samota
Associate Broker
e-PRO, GREEN, RSPS, TRC
mailto:gail@gailsamota.com
Cell: 505-603-5450
Office: 505-474-4203
Shalizi Real Estate | 2199 Candelero Street | Santa Fe, NM 87505
(505) 474 4203 | www.ShaliziRealEstate.com


This email was sent to shalizi@aol.com. To ensure that you continue receiving our emails, please add us to your address book or safe list.

manage your preferences | opt out using TrueRemove®.

Got this as a forward? Sign up to receive our future emails.

powered by
emma