Homebuyer tax credits expanded

As expected, Congress and President Obama passed both an extension of the $8,000 First Time Homebuyer Tax Credit and added a REALTOR® supported $6,500 Homebuyer Credit for citizens who have lived in their home for 5 consecutive years in the past 8 years.

Passing the law is great for real estate through April 30th, 2010. It is anticipated that the Congress will not continue this program after this Extension/Expansion.

Details have been somwhat elusive - but the Minneapolis Area Association of Realtors has some info:
FAQ - Homebuyer Tax Credit Changes
NAR Issue Brief

Buy a house, get a check

According to the Minneapolis Star Tribune, the House has decided to extend and expand the first time home buyer rebate. First time home buyers are still able to get $8,000. Now buyers who have owned their current homes at least five years would be eligible, subject to income limits, for tax credits of up to $6,500.

Here are the basic rules as stated by the Star Tribune:

Buyers who have owned their current homes at least five years would be eligible, subject to income limits, for tax credits of up to $6,500. First-time homebuyers — or people who haven't owned homes in the previous three years — could get up to $8,000. To qualify, buyers have to sign purchase agreements before May 1 and close before July 1.

For more details, you can check out the NAR Issue Brief Homebuyer Tax Credit Changes. For more help, please contact Minnesota's Buyers Real Estate Group!

Apple Cranberry Pecan Stuffing (Kraft Foods)

We wanted to share some of our favorite recipes for the holidays. We wanted to start with some that include apples. I love using apples in my recipes this time of year!

Apple Cranberry Pecan Stuffing (Kraft Foods)

• 3 cups apple juice


• 1/4 cup margarine


• 2 small apples, chopped


• 1 cup dried cranberries


• 2 pkg. (6 oz each) Stove Top Stuffing for Chicken


• 1/2 cup chopped toasted pecans

Bring juice and margarine to boil in medium saucepan on high heat. Stir in apples, cranberries and stuffing mix; cover. Remove from heat. Let stand 5 minutes, stir in pecans. Serves 16, 1/2 cup each.

Market is improving

Another recent article, this time in RISMedia remarks at the improvement in the housing market in the last few months.

“Broadly speaking, the rate of annual decline in home price values continues to improve,” says David M. Blitzer, chairman of the Index Committee at Standard & Poor’s. “The two Composites and 19 of the 20 metro areas showed an improvement in the annual rates of return, as seen through a moderation in their annual declines. Looking at the monthly data, 17 of the MSAs and both Composites saw price increases in August over July. While many of the markets remain down versus this time last year, the relative rate of decline has shown some real improvement. California, in particular, has seen some real positive prints in recent months. We see this general trend whether you look at the as-reported data or the seasonally adjusted figures. Once again, however, we do want to remind people of the upcoming expiration of the Federal First-Time Buyer’s Tax Credit in November and anticipated higher unemployment rates through year-end. Both may have a dampening effect on home prices.”

The good news for our area, Minneapolis and San Francisco reported positive returns greater than +2.0%

Twin Cities is Hot!

According to the Minneapolis Star Tribune, the Twin Cities housing market is hot. Home prices have risen for the fourth month in a row. Home prices are back where they were in August 2001.

Experts warn that with the precarious economy the prices could dip easily. Others hypothesize that prices have gone up as homebuyer try to buy before the colder months. But for today the signs point to a hot market. So what does that mean for the homebuyer? Well, it means housing are going more quickly and prices may be rising. Now might be the time to buy, depending on what you want.

Another contributing factor is the first time homebuyer tax credit, however signs point to an extension for that program.

October's Skinny Report

Limited time offer – it’s a new theme for real estate market. There’s a limited time for the first time home buyer tax credits. And we’ve seen a bump in home sales accordingly. In fact we’re even buying through inventory. Check out the latest The Skinny from Minnesota Realtors for more info.

Housing Supply

Here’s the latest advice from Minneapolis Area Association of Realtors:

If you're buying a home in the price range below $120,000, you'll 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.

If you’re looking in that market, be sure to get a Home Buyer Agent on your side to help give you the edge in the transaction – remember buyer agents work for you!