Smaller homes have been a trend for many years (fewer bedrooms and bathrooms) but the recession has accelerated that trend. And with rising energy costs, many prospective home buyers will be looking for smaller homes with greener alternatives such as energy efficient windows and appliances and programmable thermostats. Builders are likely to include those as standard features in their new homes.

Adding to the smaller home size trend are the new home buyers taking advantage of the $8,000 tax credit and those over 55 who will be looking to compromise size for a lower mortgage. The tax credit has been extended until April 30th and was expanded to include a tax credit for existing home owners.

There are stipulations to these credits though. Your contract to purchase must be written by April 30, 2010 and the deal must close by July 1, 2010 in order to claim the credit and the credit is less for those in the higher income brackets. This credit does not have to be repaid.

Pending home sales were more than 15% higher for November 2009 than in 2008. According to Lawrence Yun, National Association of Realtors chief economist, “The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own. We expect another surge in the spring as more home buyers take advantage of affordable housing conditions before the tax credit expires.”

You must have your contract written before April 30, 2010 and it must close before July 1, 2010 in order to take advantage of the non-repayable credit.

Even If you do not qualify for an FHA loan, you may still be able to qualify for the First Time Homebuyer Credit on your 2009 tax return as long as you purchase your home before December 1, 2009. See your mortgage and tax professionals for more information.

Additionally, if you are a first time home buyer or you have not owned a home in the last three years, you may qualify for up to $8,000 in tax credits! These tax credits are available for homes purchased until 12/31/09 and can even be taken off your 2008 income tax (see your tax professional for details on how to file extensions or amended returns).

To fulfill your American dream of being a homeowner, contact Julie at 214-686-0685.

North Texas home values are fairing far better than the vast majority of the rest of the country. Between December 2007 and December 2008, home values in North Texas dropped by only 4.3 percent. North Texas ranks 2nd best in the areas surveyed.

The great news is, if you purchase your home before the April 15th tax deadline, you can claim the credit directly on your return. If you are planning to buy a home in 2009 and you want to take advantage of the tax credit, you can file for an extension to file taxes later. You can also go ahead and file by the April 15th deadline and file an amended return later in the year. See your tax professional to file an extension or to file an amended return.

The exports coming from the Lone Star State, which include chemicals, electronics, oil and transportation equipment, totaled more than $192 billion which represents a 14% increase over 2007. The largest export recipients include Mexico, Canada, China, Holland and Brazil.

According to Texas Governor Rick Perry, there’s a reason for this success. “Maintaining our rank as the nation’s top exporting state is proof positive that Texas has sound policies in place to cushion it from the effects of an economic downturn,” he said.
To hear more about the great state of Texas visit www.texaplex.com

According to Business Week, in December there was an increase in sales of existing homes. The inventory of unsold existing homes has dropped indicating that existing home sales may be stabilizing. Although, inventory may increase when home owners realize there are buyers out there.

The new stimulus package is offering an $8,000 tax credit to first time home buyers including home buyers who have not owned a home in more than three years. This tax credit and the historically low interest rates should help to keep boosting sales.

Source: Businessweek.com