Seattle Housing Buzz

Admittedly, this blog has been a little neglected while I devoted most of my time to The Seattle Condo Blog and the housing marketing being in the doldrums. With Spring approaching there’s a lot starting to happen so I figured it’s about time to resuscitate this blog.

To get things in motion, the April 30, 2010 deadline is nearing for the two tax credits - an $8,000 first-time home buyers tax credit and the $6,500 repeat buyer tax credit. This time around purchases only need to be under contract by April 30, 2010 and buyers will have an additional two months to close the sale.

Additionally, members of the military, foreign service and the intelligence community who served outside the U.S. for at least 90 days between December 31, 2008 and May 1, 2010 have a one year extension. The deadline to purchase a home is April 30, 2011 with closing no later than June 30, 2011. Further, members may be exempt from the 3-year recapture rule if they need to sell or move from the residence as a result of an official extended duty.

Here’s a quick overview of the two tax credits (click on image to download the PDF):

Tags: $6500 Tax Credit, $8000 Tax Credit, First Time Home Buyers Tax Credit, Home Buyer Tax Credit, Tax Credit

Passed by both houses of Congress and expected to be signed by the president, The $787 billion American Recovery and Reinvestment Act of 2009 (aka stimulus bill) has several provisions aimed towards real estate and housing. Here’s a brief overview.

Tax Credit
The bill includes several modifications to the current $7,500 first-time homebuyers credit, which includes:

• Increases the credit to $8,000.
• Removes the pay back requirement, previously it was a 15 year zero interest loan.
• Has a recapture component if the home is resold within three years
• Is retroactive to January 1, 2009 and extends through November 30, 2009.

Tax payers who purchase a home this year can apply the credit to their 2008 tax return.

Comparison chart of the existing tax credit and the new $8,000 tax credit.

Higher Loan Limits
Another provision of the bill reinstates the higher loan limits that were available last year for FHA, Fannie Mae and Freddie Mac. For King, Pierce and Snohomish counties the loan limit is expected to increase to its 2008 level of $567,500.

Neighborhood stabilization
The bill provides for an additional $2 billion for the Neighborhood Stabilization Program. The funds can be used to purchase, manage, repair and resell foreclosed and abandoned properties. The homes are to be used to assist people earning less than 120% of the area median income.

Energy efficiency credits

• Through 2010, homeowners who make energy efficient improvements (purchase of a new furnace, windows and insulation) can claim a 30% tax credit (up from 10%) with a $1,500 cap.
• $5 billion weatherization assistance for low-income households.
• $2 billion for Section 8 efficiency efforts.

Tags: , $8000 Tax Credit, American Recovery and Reinvestment Act of 2009, First Time Homebuyers Tax Credit, Tax Credit