Extending & Expanding the Tax Credit Debate Goes On

Here is the latest on the debate in congress concerning extending and/or expanding the First Time Home Buyer Tax Credit.


Congress is considering expanding and extending the $8,000 first-time homebuyer tax credit, which expires Nov. 30.

More than 1.8 million home buyers will have used the credit by the end of November, including an estimated 355,000 who wouldn’t have bought a home without it, according to the National Association of REALTORS® and other analysts.

Mark Zandi, chief economist for MoodysEconomy.com, is among those in favor of extending the credit. Zandi would also make it available to all homebuyers. "The most fundamental argument for the credit is that nothing works in the economy if housing is falling," Zandi said. "[The credit] is a good insurance policy. It's vital to stem the housing price declines."

Opponents argue that the tax credit is too expensive and doesn’t help enough people.
Extending the credit through the end of 2010 and making it available to single filers earning up to $150,000 and joint filers earning up to $300,000 would cost an estimated $16.7 million. Some in Congress propose using unspent money from the $787 billion stimulus bill to pay for it.

Source: CNNMoney.com, Les Christie (10/14/2009)

Take the Trauma Out of Homebuying

Here are five tips to help reduce the stress of the home buying process. I left engaging the assistance of a competent realtor off the list as that seems too obvious seeing that you are on my website in the first place.

1. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be some costs. Don't leave yourself short and let your home deteriorate.

2. Remember, there's no "right" time to buy, any more than there's a right time to sell. If you find a home now, don't try to second guess the interest rates or the housing market by waiting. Changes don't usually occur fast enough to make that much difference in price, and a good home won't stay on the market long.

3. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually from 1998 to 2002, a home's most important role is as a comfortable, safe place to live.

4. Don't ask for too many opinions. It's natural to want reassurance for such a big decision, but too many ideas will make it much harder to make a decision.

5. Don't wait until you've found a home and made an offer to get approved for a mortgage, investigate insurance availability, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

Tax Time

So with tax season upon us I thought this little fact was interesting...

Here are the rankings of the ten highest taxed states. This covers property, sales, individual income, alcohol, tobacco, vehicle, fuel, hunting & fishing, death, gift and insurance premiums.

This is just a total of all taxes divided by the number of citizens (per capita tax).

10. Pennsylvania $2,223
9. Wyoming $2,357
8. Washington $2,553
7. Massachusetts $2,953
6. New York $3,019
5. New Jersey $3,024
4. Minnesota $3,203
3. Connecticut $3,596
2. Hawaii $3,856
1. Vermont $3,861

Now, I am not saying that this makes Washington a better or worse state to live in, but it is something we should all be mindful of come November when we are voting.

That $2,553 amount for the per capita tax in Washington is the average amount each of will pay this year, it is your money. How do you want it spent? Is this amount justified?

Currently some of our legislators are pushing for adding a state income tax while others are pushing to increase sales, property and other taxes.

If you feel strongly one way or the other let your voices be heard. Call, write or email our governor and legislators.

Lastly, come voting day in November remember what your reps are doing today. Sometimes they count on us having a short memory.

Source of information: Forbes, Matt Woolsey. 3-30-09

The End Is Near?

With the current economic outlook on uncertain ground and the housing market is still losing ground in many parts of the country, a new report by Moody’s Economy.com suggests that the end may be near and that there are some positive signs that conditions in the housing market could improve this year.

The report, “Housing in Crisis: When Will Metro Markets Recover?” states that in the three years since the market started correcting, “inventories are flattening, prices are coming back down to earth, and sales are approaching stability.” Of course, the outlook relies on strong action by America’s. Policymakers, we do still need further government intervention. With federal action to repair the housing and credit markets we will see recovery this year.

The study shows that from the peak of the housing boom in early 2006 until the anticipated end of the downturn this year total single family home sales will have declined by 40% and prices will have decreased in 70% of the U.S. major metro areas.

The worst of the worst? Approximately 10% of U.S. metro areas will have experienced price declines that may exceed 30% when compared to early 2006.

Whatcom County's average sales prices are down 10.7% when comparing January 2009 to January 2006.