Interesting Economic Blog

This is an interesting blog for you to read. Please review it and tell me what you think. The author has been highly touted as an expert in the economy and includes a variety of topics regarding the economy, including the national housing picture.

http://globaleconomicanalysis.blogspot.com/2009/01/obama-announces-new-rules-to-address.html

TAX CREDIT FOR FIRST TIME BUYERS

The Government created a tax credit of $7500 for first time Buyers. This Tax credit expires in 6/30/09 unless extended. The fabulous rationale for said credit is that first time buyers will be more motivated to become eligible for this to buy a home. And there couldn't be a better time. IN the next 9 months, I fully expect our market to begin the stabilization period. We do not know what interest rates will do in the future but right now, today, they're hovering around 5% for buyers with credit scores that are the best. Please check out this link to fully understand the $7500 tax credit. Oh, by the way, FHA does allow you to receive gift money for the down payment of a home from your relatives. Their down payment requirements for FHA is approximately 3.5%. Check this link out regarding the tax credits:

http://www.realtor.org/GAPublic.nsf/files/chart_homebuyer_tax_credit_.pdf/$FILE/chart_homebuyer_tax_credit_.pdf

Washington Association of Realtors Assists in Excise Tax Issue

Normally, you would not see a post from me regarding Association of Realtors' actions with the legislature, however this one particular action and several others that they are taking will only benefit homeowners. We are seeing many home owners in positions where they must move, have personal problems, and cannot sell their homes for what they owe. Therefore, they must get permission from their mortgage holder (s) to agree to what is called a "short sale". You've read about this, I'm sure. This is when the Seller's lender forgives some of their debt. I had just received word from an escrow company that the Department of Revenue of Washington State had decided to TAX those same homeowners on the difference between what they owed to the mortgage company and what they actually did get from the sell of their home. That difference would be taxed 1.78%. So if I owed $200,000 on my home but only could get $150,000 on the sale of my home and the lender forgave me that debt, the State of Washington planned to charge an additional $890 worth of tax on that difference to the already upside down home owner. The Washington Association of Realtors met with the Department of Revenue folks this past week and got their decision reversed. This is great news for Home Owners! The link to the letter can be seen here:
http://www.warealtor.org/press/Short-Sales-Letter-to-Stakeholders-1-13-09.pdf

Kudos to the leaders of my Realtor's Organization. They're also working with the National Assocation of Realtors & our State Legislature to encourage permanent tax credits for purchasing homes in 2009, reducing the interest rate on mortgages further, and increasing FHA limits permanently in areas like ours, where prices are still higher than the national average & it is very difficult, expensive and challenging to get jumbo loan financing.

Housing & Market Stability Expected in 2009-So Says Top Federal Reserve Official!

Despite some reports to the contrary, this article discusses the viewpoint expressed by one of the top and leading economic members of of the Federal Reserve Board. It discusses the discouraging news from 2008 but suggests that there are many signs that housing & the overall economy will get back on track in the latter half of 2009. Read on for more information!

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=OBR&date=20090108&id=9499795

Hope your New Year was awesome and that 2009 will bring every success you could want!

Industry New-More on Interest Rates

The following article came out last week and will have a continued impact, per the article, on keeping interest rates down in the near future. Review and tell me what you think!

http://www.marketwatch.com/news/story/Fed-says-start-buying-mortgage/story.aspx?guid=%7BE5545C3D%2D387B%2D4891%2D8226%2D3FB7A8CAC28C%7D&dist=hplatest