Housing Tax Credit Extended and Expanded | Current Tampa Home Owners Now able to Benefit

Congress announced yesterday that the first-time home buyer tax credit, originally set to expire at the end of this month, will be extended through June of 2010. In addition to an extension, the bill includes a $6,500 credit for “move-up” buyers interested in purchasing a new primary residence.

The first-time home buyer tax credit has shown significant results in the Tampa Bay real estate market, with home sales soaring over the last three months. The Internal Revenue Services reported that more than 105,000 Floridians have applied for the credit so far. Now, under the new bill, an even larger base of potential buyers will be able to benefit and take advantage of the program.

The new plan is designed to spark interest in the “move-up” market, with these potential home buyers previous excluded for tax credit program. This additional incentive is designed to make real estate purchases even more desirable for qualified repeat buyers.

The tax credit, along with affordable home prices and low interested rates, has helped boost real estate home sales over the past year. The National Association of Realtors estimates that by the end of November, the credit will have been used by 1.8 million buyers, at least 355,000 of whom would not have purchased a home otherwise.

The new bill, which also includes an extension to unemployment benefits, is expected be signed into law today.

Tampa Builders, Buyers and Real Estate Professionals Anxiously Await News of Tax Credit Extension

The U.S. Congress is currently discussing an extension and expansion to the $8,000 tax credit for first-time home buyers in a bill which has been instrumental in breathing life into the U.S. real estate market. With a decision expected to be made this week, Tampa builders, Tampa buyers and Tampa real estate professionals are all anxiously awaiting the good news that is expected to continue the positive momentum in the housing market movement.

With the current tax credit expiring on November 30th of 2009, this extension would give buyers until mid-2010 to close on a new home. In addition to the extension, an additional credit of $6,500 would be created for move-up buyers who are searching for a new primary residence.

The National Association of Home Builders expects that the extended and expanded home buyer tax credit will generate 180,000 additional sales, bring in $5 billion in federal taxes and create 211,000 new jobs. Home builders, who have recently been seeing progress in the market, will directly be affected from an extension, with new homes starts already expected to increase in 2010.

Tampa Bay home builders are highly motivated, currently offering an abundance of incentives to sell inventory of their new homes to qualified buyers. Our SI Real Estate professionals have seen an increase in outreach and enticements from new local communities and our expectation is that builder and seller incentives will continue at an irresistible pace for the near term. An extension to the tax credit partnered with this abundance of builder incentives would give Tampa buyers an ideal opportunity to find the perfect new home in the new year.

Featured Property of the Week - 1694 Palace Dr. Clearwater, FL

This spacious three bedroom three bathroom single family home is located in the desirable neighborhood of Woodridge Estates in Clearwater, Florida. Situated on a large corner lot, the single story home features beautiful details and upgrades throughout including new custom oak cabinetry in the kitchen, ceramic tile and new bamboo flooring, and French doors that open to a separate den.

The foyer opens to the large living room and formal dining room. The spacious kitchen has been upgraded with all new appliances, sparing no detail whatsoever. Accessible from the kitchen is an additional large dining room with built-in computer niche and back yard access. New home owners will love this fresh and updated house.

A hall leads to a full the beautiful master suite with large closet and attached bathroom. The two guest bedrooms are also furnished with large closets and bamboo flooring throughout. A fully functioning laundry room is located off of the two car garage and features full-sized washer and dryer, sorting table, drying shelves, wash basin, and additional bathroom.

A large, low maintenance backyard is an excellent value to this Clearwater home. Privacy fence, mature trees, tree house, and patio makes this yard a wonderful Florida retreat. The home also features a shed and private cement pad ideal for boat, RV parking or additional car parking.

The concrete block house in Pinellas County has hurricane shutters and a new Genex 18KW propane generator capable of providing two weeks of electricity for the entire house, making it a solid residence. The home is conveniently located just minutes from ample shopping and dining and just fifteen minutes from the pristine Clearwater beaches and SR60 - allowing for an easy commute throughout Clearwater and Tampa Bay. This house is a must-see and is currently listed at $285,000 with no improvements needed.

View a virtual tour of the home:

http://www.youtube.com/watch?v=i914O0thThE

Positive Real Estate News | Positive Home Builder Growth

Economists Annouce that the Three-Year Housing Slump is Coming to an End

The positive real estate and economic recovery news is hard to ignore these days. Although there may still be some mixed signals, overall economy and real estate trends look encouraging. Some of the most recent upbeat news this week was from one of the country's top group of forecasters. The National Association of Business Economists declared that the 22 month recession is finally over!

After its latest survey of members, the NABE stated "The good news is that the deep and long recession appears to be over, and with improving credit markets, the U.S. economy can return to solid growth next year without worrying about inflation." The association also said that the three-year downturn in the housing market appears close to an end.

As reported by BusinessWeek, more than 80 percent of economists believe the recession is over and an expansion has begun, though it is expected that the recovery will be slow as worries over unemployment and high federal debt persist.

The consensus forecast from the business economists is for the Gross Domestic Product (GDP) to grow by 2.9 percent, and for new housing starts to jump by an impressive 38 percent. Home resales tend to be closely tied with the GDP, meaning that positive growth for the GDP will result in positive growth for the national and local Tampa Bay real estate market.

Additional positive news for the real estate market is that home prices in many major metropolitan markets are continuing to bounce back. Although some are still seeing a decline, cities such as Boston and New York are reported to have experienced more than a 1 percent increase. Tampa has also been witnessing its own signs of price increases.

Even more positive news - the real estate market right now continues to enjoy mortgages at sharply discounted interest rates. Fixed 30 year rates averaged 5 percent last week, and 15 year rates came in at 4.4 percent.

Tampa Bay Real Estate | A True Sense of Urgency for First-Time Buyers

The deadline is quickly approaching for potential home buyers to complete their first-time home purchases in order to qualify for the $8,000 first-time home buyer tax credit. Buyers who are eager to take advantage of this government incentive have until November 30th to reach a successful closing on their new home.

The average home buying process typically takes 30 to 45 days from the contract date to closing. During that time, inspections must be conducted, the mortgage company must complete an appraisal and all financial documents are required. In order to meet the looming deadline for the tax credit, a home needs to be under contract not much later than October 25th in order to ensure enough time for the mortgage closing process.

It's important for people to recognize that the sooner they act, the better. Many first time buyers may not fully understand the time it takes to finalize all the elements of the buying process. In order to avoid additional complications that may slow the buying process, buyers should simultaneously organize all financing details when placing an offer on a home.

The real estate market in Tampa Bay has changed drastically for buyers seeking low priced properties. Tampa home buyers are competing with multiple offers and depleting inventory of aggressively priced homes. First-time home buyers need to be vigilant and ready to compete during these final days leading up to the end of October.

The combination of near historically low interest rates, favorable pricing, along with the $8,000 credit, makes buying now the deal of the century. If you have been considering home ownership, now is the time to act. Do not miss out.

The tax credit is for first-time home buyers only. For the tax credit program, the Internal Revenue Service defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

The IRS reports, so far, more than 1.4 million Americans have taken advantage of the tax incentive. Are you ready take the step towards home ownership?

NAHB Tax Economist Answers Questions About the $8,000 First-Time Home Buyer Tax Credit

Real Estate Inventory is Moving Quickly in Tampa, Buyers Now Facing a Competitive Housing Market

The housing inventory is moving quickly in the Tampa Bay area, a definite change from previous months. Buyers who are looking for rock bottom prices are finding their search to be more difficult than originally expected. Multiple offers, fewer days on the market, and a rise in home sale prices are all evidence of this new market shift in the Tampa Bay area real estate market.

For example, three months ago the Mid-Florida Regional Multiple Listing Service reported over 600 bank-owned properties in Tampa Bay. This number has now been reduced to fewer than 370, as the inventory continues to be quickly absorbed. In 2008 we were looking at a vastly different real estate inventory with a much higher number of bank-owned and short sale homes in Tampa, giving buyers a wide selection to choose from. In our current condition, buyers who are looking for a “best buy” need to be ready to act fast. With multiple offers being placed on low-priced real estate, sellers are now receiving offers at even higher than the listing price.

Tampa home buyers are facing a competitive housing market, with sellers now frequently asking for best and highest offers. This shift in the market has been particularly difficult for first-time home buyers, with many now faced with having to make offers on multiple properties only to find out that they were outbid by another buyer. Good deals for first-time home buyers are becoming fewer and further between in Tampa. If prospective buyers do not act quickly, it could mean a missed opportunity to take advantage of this exciting Tampa Bay real estate market.