Wednesday, December 9, 2009
Thursday, November 19, 2009
Monday, October 26, 2009
Big Rebound in Existing-Home Sales Shows First-Time Buyer Momentum
Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of Realtors®. Existing-home sales–including single-family, townhomes, condominiums and co-ops–jumped 9.4% to a seasonally adjusted annual rate of 5.57 million units in September from a level of 5.10 million in August, and are 9.2% higher than the 5.10 million-unit pace in September 2008. Sales activity is at the highest level in over two years, since it hit 5.73 million in July 2007.
Lawrence Yun, NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” he said. “We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.”
Even with the improvement, Yun said the market is underperforming. “Despite spectacular gains in the stock market, principally from the financial sector recovery, most of the 75 million home owning families have more wealth tied to their homes. Home values could soon turn consistently positive and help the broad base of middle-class families, but we are not there yet,” he said. “We’re getting early indications of price stabilization, but we need a steady supply of qualified buyers to meaningfully bring inventories down and return us to a period of normal, steady price growth and to fully remove consumer fears, which would then revive the broader economy. Without a firm foundation for middle-class wealth recovery, the post-recession economic growth likely will be one of the weakest in U.S. history.”
Lawrence Yun, NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” he said. “We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.”
Even with the improvement, Yun said the market is underperforming. “Despite spectacular gains in the stock market, principally from the financial sector recovery, most of the 75 million home owning families have more wealth tied to their homes. Home values could soon turn consistently positive and help the broad base of middle-class families, but we are not there yet,” he said. “We’re getting early indications of price stabilization, but we need a steady supply of qualified buyers to meaningfully bring inventories down and return us to a period of normal, steady price growth and to fully remove consumer fears, which would then revive the broader economy. Without a firm foundation for middle-class wealth recovery, the post-recession economic growth likely will be one of the weakest in U.S. history.”
Friday, March 20, 2009
Do You Want $8,000?
The credit is designed to give “first-time homebuyers” a leg up on the markets—but wondering what exactly a first-time homebuyer is has caused some headaches.
Here are answers to the top three FAQs:
Q: I bought a home this year, but I already filed my tax returns with the $7,500 credit. How can I get the extra $500?A: Don’t panic—you can file an amended 2008 tax return, using Form 1040X. You’re probably going to want the help of a tax advisor.
Q: I’ve never bought a home before, but my spouse has. Can we get the first-time homebuyers’ credit?A: Married taxpayers must both pass the qualification of not owning a principal residence in the last three years in order to get the credit.
Q: I’ve purchased a home in the past, but sold it four years ago, and I’ve been renting ever since. If I buy another house, can I get the credit?A: Yes! The credit is for first-time homebuyers and people who have not owned a home within the past 3 years.
Here are answers to the top three FAQs:
Q: I bought a home this year, but I already filed my tax returns with the $7,500 credit. How can I get the extra $500?A: Don’t panic—you can file an amended 2008 tax return, using Form 1040X. You’re probably going to want the help of a tax advisor.
Q: I’ve never bought a home before, but my spouse has. Can we get the first-time homebuyers’ credit?A: Married taxpayers must both pass the qualification of not owning a principal residence in the last three years in order to get the credit.
Q: I’ve purchased a home in the past, but sold it four years ago, and I’ve been renting ever since. If I buy another house, can I get the credit?A: Yes! The credit is for first-time homebuyers and people who have not owned a home within the past 3 years.
Subscribe to:
Posts (Atom)