Even though we thought that the market has been picking up, it looks like it is still going to be one of those winters when the market takes a hiatus. Homebuyers got 16% fewer contracts signed in November of 2009. This is according to the NAR pending home index. Previously, the NAR had reported 9 straight months of increases in this number. This drop also was over the expected 14% drop that was expected.

They expected the drop, because the market usually drops about this time of year in activity. Thanksgiving, Xmas, and New Years tend to keep people from making moves. Plus it is just dang cold in some parts of the country.

The first time home buyer tax credit was also initially going to be stopped on December 1st, and was extended into 2010. This probably made some buyers out there feel like there wasn’t quite the rush to get it done like they thought before the extension.

We will see how the numbers pick up in 2010.

Foreclosure can be a stressful process and it can also stick with you for a long time.  Give me a call at 208-353-7131 if you are facing foreclosure so we can see if we can help.  There are some options that you need to explore such as loan modifications and short sales.

First Time Home Buyer $8000 Tax Credit is still available, but quickly coming to an end.  You must close on your new home by December 1, 2009.  Keep in mind that most transactions take about 30 days.  So, time is really running out.

The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by the phaseout range of $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.