BOSTON HOMES BLOG

December data are down

— By: Marilyn Jackson

December home sales data reflect a slow market with soft prices, according to Timothy M. Warren Jr., CEO of the Warren Group, which publishes Banker & Tradesman. Its report was released Jan. 24. Home sales of single-family homes across the state dropped 5 percent in December in a year-over-year comparison, while condo sales dropped 15.75 [...]

City collects $9.4 million from non-profits

— By: Marilyn Jackson

The city has collected $9.4 million from non-profit, tax-exempt organizations for the first half of fiscal year 2012, a 24 percent increase from fiscal year 2011, Mayor Thomas M. Menino stated in a press release Friday. The city had requested $10.8 million. Guidelines for the PILOT or payment in lieu of taxes program were revised [...]

— By: Linda Goodspeed

 

To claim federal tax credit, buyers cannot tarry

Now that Congress has extended and expanded the homebuyer tax credit, many “fence-sitters” are likely to jump into the housing market this winter.

Earlier this month, Congress extended the popular $8,000 tax credit for first-time homebuyer (defined as not having owned a primary residence in the last three years) until April 30, 2010. (The credit was due to expire Nov. 30, 2009.) In addition, Congress extended the credit (up to $6,500) to existing homeowners who have lived in their primary residence for at least five years. Congress also expanded the income limits for the tax credits to $125,000 for individuals and $225,000 for joint filers.

The tax credits are likely to spur a lot of activity this winter. Here are a few tips to avoid any possible pitfalls from trying to take advantage of the credits.

First, you must have your property under agreement by April 30, 2010, and close on it by June 30, 2010, to get the credits. The deadlines are firm. Don’t count on another extension.

To make sure you can meet the deadlines, get pre-approved before you start looking and make an offer. Keep in touch with your lender. If the lender needs something – an additional document, bank statement, more income verification, whatever – get it to the lender right away. Don’t dally.

In addition to keeping an eye on the April 30 deadline, keep another eye on interest rates. Rates on 30-year fixed mortgages have been hovering around 5 percent. Those rates are not likely to last much longer.

Most observers expect interest rates to rise in 2010. Higher interest rates will add substantially to your monthly payments and how large a mortgage you can afford. So keep an eye on those rates.

Don’t cut corners. Get started on the home-buying process early. Selecting a questionable home, foregoing the home inspection, etc., just to meet the deadline is not wise.

Give yourself plenty of time to look at available properties, evaluate them and get your financials in order. This will cut down on your stress and help ensure you find the best home available.

The tax credits represent a wonderful opportunity. Use them to find the home of your dreams at an incredible price. Don’t let the tax credit use you.

 

 

 

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