84% of Consumers Favor Another Tax Credit for Home Buyers

Another tax credit for home buyers in 2011 seems unlikely at this point. But despite this, most consumers feel another tax credit would help to stabilize the housing market. Here are the results of a survey we concluded last week:

Chart: Many consumers feel another home-buyer tax credit would help. Image permission
Survey details: This survey was presented to more than 5,500 readers. We ran this survey on the Home Buying Institute website, and several other sites within our financial network. The audience was mixed — some were home buyers and homeowners, while others were researching personal finance and investment topics.

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Another Home Buyer Tax Credit?

Just when I thought the housing market was finally being left to correct on its own, I'm starting to hear talk regarding yet another home buyer tax credit. From HUD to the hedge funds, it sounds as if it is gaining steam yet again. This one could involve not just first time/move-up buyers, but a credit for buyers purchasing foreclosed properties or short sales (when the bank allows you to buy a home for less than the value of the outstanding mortgage).

HUD Secretary Shaun Donovan, appearing on CNN's State of the Union this weekend, didn't rule out another tax credit. He did say it's "too early to say," but then added that "we're going to be focused like a laser on where the housing market is moving going forward, and we are going to go everywhere we can to make sure this market stabilizes and recovers."

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Market 'Balanced' After Tax-credit End

The federal homebuyer tax credit that expired on April 30 seemingly had its intended effect, creating a spike in pending sales contracts in the Washington area.

Statistics provided by Real Estate Business Intelligence (RBI), a subsidiary of Metropolitan Regional Information Systems (MRIS), show that pending sales (a reflection of signed contracts that have not yet reached settlement) peaked during the week ending May 1 at 4,614 contracts, compared with 2,617 pending sales for that same week in 2009. The increase of 76.3 percent from one year to the next during that week followed two previous weeks of increases of 41 percent and 31.6 percent over those weeks in 2009.

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Is The Real Estate Market Turning Around?

The home sales index spike from the home buyer tax credit has almost run out. If you didn't have a deal in escrow by April 30, you didn't get the credit. The time to close a deal was extended to September 30. The predictions were that we'd see a fall in July activity which is exactly what is occurring.

The reports that are currently coming in don't yet reflect July sales which will show a drop in sales. For example, the Case-Shiller report came in yesterday for May, 2010, but that report is a three-month average of prices. The report said prices were up 1.2% MoM, and 5.4% YoY. That was the peak of housing credit driven sales.

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Appeal Your Property Tax Bill

Owning a home is an expensive proposition. There’s maintenance, landscaping, utilities, renovations, and, of course, taxes. It’s your civic duty to pay the latter, but it’s also your right not to yield a penny more than your fair share.

It’s possible to trim your property tax bill by appealing the assessed value of your home. But making a case against your real estate assessment, the basis for your property tax bill, requires doing a bit of homework. Initial research can be done online or by phone over two or three days, but the process can stretch out for months if you’re forced to file a formal appeal.

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New Reports Show Weakness in Housing Market

Now that the homebuyers tax credit has expired, the housing market remains weak and faces serious threats, say a pair of studies released in the last 24 hours. But demographics point to an eventual recovery and maybe even a shortage of homes down the road.

“Several factors could impede the nascent housing recovery, including serious problems in obtaining financing for the production of housing, faulty appraisal practices, and competition from short sales and foreclosed properties,” said Bob Jones, chairman of the National Association of Homebuilders, which released its Housing Market Index this morning. The index dropped 5 points from May levels, signifying that home builders were losing confidence in the market.

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Congress Could Extend Home-Buyer Tax Credit Closing Deadline

What if the home-buyer tax credit worked too well?

That’s the latest concern from the real-estate industry, which says that a last-minute home-buying rush in April created bottlenecks at lenders and real-estate service companies that may not be able to finalize purchases in time for tens of thousands of buyers to receive a tax credit worth up to $8,000.

On Thursday, there were signs that the real-estate lobby had successfully communicated those concerns to Congress. Senate Majority Leader Harry Reid (D., Nev.) joined Sen. Christopher Dodd (D., Conn.) and Sen. Johnny Isakson (R., Ga.) in sponsoring a measure that would give buyers until Sept. 30 to close on sales that went into contract by April 30. That measure would be attached to a job-related bill before the Senate. It would need House and Senate passage before being signed by President Obama.

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Good Times Ahead For The Homebuyer?

If you missed the April 30 homebuyer tax credit deadline without snagging a house, pat yourself on the back: You just may turn out to be one of the lucky ones.

While the credit is now history, savvy buyers may be able to make up that money -- and then some -- through some shrewd house hunting over the next two months, industry experts say.

"Savvy buyers can put their feet back into the market," says Rona Fischman, principal broker at 4 Buyers Real Estate in Cambridge, Mass. "It will be more sane and less of a sellers' market."

Thanks to the tax credit, buyers came into the market over the past year who otherwise might have waited on the sidelines, says Olivier Garret, chief executive officer of Casey Research in Stowe, Vt.

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Home Prices Could Sink Without Tax Credit

Home prices are widely expected to fall now that a tax credit for home buyers has expired.

That's raising concern about a possible double dip in home prices.

National housing prices stopped falling early last year and rose 0.3% over the 12 months ending in February, according to a study by real estate analytics firm CoreLogic.

The firm predicts prices will fall this year before starting to rise again in late 2010. Even so, next February's prices are likely to be 4.2% lower, it forecasts.

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Tax credit end not deterring US homebuyers -survey

Home buyer tax credits have been a boon to the U.S. housing market, but their expiration this week is unlikely to deter home purchasing activity as consumers grow more confident, according to a survey released on Wednesday.

Among consumers shopping for homes, 65 percent said the end of the tax credits will have little or no effect on their interest in purchasing a home, according to the survey, which was conducted by Prudential Real Estate and Relocation Services, part of Prudential Financial.

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Housing Market Off To A Good Start This Spring

Prompted by the federal home buyer tax credit, low mortgage rates and lower home prices home re-sales rose 6.8% in March after three straight months of declines, according to the National Association of Realtors. The rise in sales demonstrates a stronger housing market moving into the historically most active season of the year.

Existing home sales, including single family homes, condominiums, townhouses and co-ops hit a seasonally adjusted 5.35 million units.

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Utah Home, Condo Sales Up, Prices Down

A federal tax credit for home buyers helped push up sales of single-family homes in Salt Lake County 15.3 percent in the first quarter, compared with the same period last year, a new report shows.

Prices, however, are still falling.

The Salt Lake Board of Realtors reported that 1,716 home changed hands, up from 1,489 last year. The increase is a sign that the market, in a downturn since the summer of 2007, may be inching toward recovery. Sales of condominiums also were up from last year, by an even larger margin. In the first quarter, 350 condos in Salt Lake County were sold, up nearly 27 percent from the first quarter 2009.

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Questions and Answers About the Home-Buyer Tax Credits

Time is running short if you want to cash in on the popular home-buyer tax credits. You'll need to sign a binding contract by April 30 and then close the deal by June 30. With thousands of dollars at stake, it's not surprising that potential home buyers have lots of questions. We have the answers.

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When It Comes To Home Buyer Tax Credits, IRS Rules Can Be Strict!

Question: I purchased a home about a year ago, but I used a land contract. The contract started three years ago. By the time the loan was closed on the land contract, the contract was no longer valid. I paid real estate taxes and mortgage interest because it was included with our rental payments.

I have received a letter from the IRS saying we do not qualify for the first-time home buyer tax credit. I have looked through all of the instructions and eligibility requirements and have found no mention of land contracts. This is our first time buying a home, and I feel like I am being punished.

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Sales of New Homes in U.S. Climb by Most Since 1963

Purchases of new homes in the U.S. surged in March by the most in almost five decades as buyers rushed to qualify for a government tax credit and the weather turned milder.

Demand may remain elevated through this month as Americans take advantage of a tax credit worth as much as $8,000 before it ends at the end of next week. The outlook for the rest of the year hinges on sustained job gains as homebuilders struggle against a wave of foreclosures that is depressing home prices and adding to inventory.

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Want to get audited? Apply for homebuyer credit.

Here's a good way to get audited by the Internal Revenue Service this year: claim the new homebuyer tax credit.

About a fifth of all IRS examinations done by mail in the past six months were for people claiming the credit, National Taxpayer Advocate Nina E. Olson told a congressional committee Thursday-the filing deadline for individual tax returns.

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