Robust Home Sales In The Twin Cities

As we near the halfway mark of 2009, the Twin Cities housing market continues to show a pattern of robust home sales and declining new listing activity. Setting aside fluctuations over the Memorial Day holiday, long-term market improvement can be seen when comparing 2009 to 2008.

There were 1,210 pending sales for the week ending June 13—a strong 33.8% increase from last year. There were 1,970 new homes added to the market during the same week, a decrease of 2.6% from the same week in 2008. That 2.6% decline in new listings is a much smaller drop than we have seen in recent months when there were typically year-over-year drops of 10% or stronger.

Opportunity is Knocking for First Time Home Buyers

If you have been considering purchasing your first home, but have been waiting on the sidelines for the right time, this may be the right time. This year, qualified first time home buyers can receive a tax credit up to $8,000. This is part of the American Recovery and Reinvestment Act of 2009.

Some facts about the Tax Credit:

•Available to first time home buyers
•Credit amount up to $8,000
•Eligible for homes purchased on or after January 1, 2009,
and before December 1, 2009
•Available on single family detached homes, townhomes and condominiums,
new construction or pre-existing homes
•The tax credit does not need to be repaid unless the home is sold
within the first 3 years after the purchase
•Home must be your primary residence
•You have not owned a home during the last 3 years

Interest rates are still low and there are still plenty of wonderful homes available. Now IS a great time to buy a home.

Senate Pushes To Expand Home Buyer Tax Credit To $15,000

Lawmakers are pushing to revive legislation in the Senate that would almost double an $8,000 tax credit for first-time home buyers and expand the program to all borrowers.

This proposed legislation would extend the home buyer credit to multi-family properties that are used as the borrower’s primary residence. It would also eliminate income caps of $75,000 and $150,000 on individuals and couples seeking to claim the credit.

“The housing market continues to be a drag on the economy”, said John Castellani, President of the Washington-based Business Roundtable. “We believe that if we don’t stabilize this vital sector, we can’t turn the tide on the recession.”

The business Roundtable and the National Association of Realtors are both pushing to expand the tax credit and to lower mortgage rates to revive the U.S. housing market.