HR 2801: Home Ownership Moves the Economy Act of 2009

There is a new Bill - H.R.2801 or the Home Ownership Moves the Economy (HOME) Act of 2009 that was introduced by Rep. Howard Coble, Republican from North Carolina, on June 10, 2009. It is currently being reviewed by the House Committee on Ways and Means.

Basically, this Bill will amend the Internal Revenue Code to:
1. Extend the first-time home buyer tax credit to all individuals who purchase a principal residence. Currently, only first-time home buyers may qualify for the $8000 Tax credit. The definition of a first time home buyer under the current program states that you cannot have owned a primary residence in the past 3 years. This credit still only applies to those buying a primary residence

2. Extend such credit and the waiver of recapture requirements for such credit through December 31, 2010

3. Repeal the limitation on such credit based on modified adjusted gross income. The current guidelines read that as a single tax payer, your income cannot exceed $75,000 to receive the full tax credit. A reduced credit may be claimed up to the phase out income limit of $95,000. For married filing jointly, the income guidelines are $150,000 phasing out at $195,000. This would enable those individuals that earn higher incomes to also receive the tax credit.

This bill is still in its infancy and has a long way to go before it is passed. If you are a first time home buyer, I would advise you not wait to see if this bill will be passed. The current $8,000 tax credit for first time home buyers will expire on November 30, 2009. The home you purchase must have the transaction closed by this date. If you wait, you may find yourself in a position where there is no way the closing on your home can take place by then and you will lose out on the tax rebate.

You can track the progress of this BILL at: http://www.govtrack.us/congress/billtext.xpd?bill=h111-2801

Pending Home Sales Jump in St. Charles County

As reported on the St. Charles County Association of Realtors website: "The number of pending sales, homes under contract, in St. Charles County jumped 26 percent in March. “This strong increase over February numbers is an indicator of increased market activity in St. Charles County and across the nation,” commented Karen Vennard, 2009 St. Charles Association President.These numbers reflect the reports we are getting from brokers all across the county who are seeing an increase in property calls, showings and general business activity, reported Vennard.Brokers point to the $8,000 tax credit for first time buyers, record low interest rates and stable prices as the reasons for the increase in activity.“People are realizing that this is a once in a lifetime opportunity to buy a home,” added Vennard. “Interest rates haven’t been at this level since the 1950s and if you are a first time buyer, Uncle Sam is giving you $8,000 in free money, so why would you not buy now, “concluded Vennard.These incentives have helped to keep housing affordability at record high levels. In March, the national housing affordability index stood at 166.7 percent. An index of 100 means that the family making the median income could afford the median priced home. In March that family making $61,100 per year could afford a home valued at $291,600. The index assumes a 20 percent down payment.“The market is rebounding and there may not be a better time to buy in our lifetime,” concluded Vennard".