The economy grew faster than expected at the end of last year, though the engine of that growth, companies replenishing stockpiles, is likely to weaken as consumers keep a lid on spending.

The 5.7 percent annual growth rate in the fourth quarter was the fastest pace since 2003. The Commerce Department report Friday is the strongest evidence to date that the worst recession since the 1930s ended last year, though an academic panel that dates recessions has yet to declare an end to it.

The two straight quarters of growth followed a record four quarters of decline. Still, the expansion in the fourth quarter was fueled by companies refilling depleted stockpiles, a trend that will eventually fade. Some economists worry that when that happens, the recovery could

Growth exceeded expectations mainly because business spending on equipment and software jumped 13.3 percent — much more than forecast. It’s the second quarter in a row that business spending has increased, after six quarters of decline.

Hopefully, this is good news for the Raleigh real estate market.  We’re seeing signs of growth here in the Triangle area of North Carolina and the homebuyer tax credits have been extended.  Call the Freeman/Davis Team at Coldwell Banker and we can review your real estate goals and form a plan that will aid you in attaining those goals.  Visit us online at www.HomeSearchRALEIGH.com and www.FreemanDavisHomeTeam.com for more details. Find us on Facebook at www.HomeSearchRALEIGH.info.

Sales of new and existing homes in the Triangle jumped 43 percent in December over a year ago, but the average price on each sale continues to be depressed, according to data released Wednesday by the North Carolina Association of Realtors.

Remember, The Freeman/Davis Team, Rick Freeman and Amy Davis, is here to help you make smart choices in your biggest investment.

Become a HomeSearchRALEIGH Fan on Facebook at http://tinyurl.com/homesearchraleighfacebook

$8,000 First-time Home Buyer Tax Credit at a Glance

• The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000. 
• The tax credit applies only to homes priced at $800,000 or less.  
• The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
• For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly. 
• For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance 

• To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years. 
• The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
  The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500. 
• The tax credit applies only to homes priced at $800,000 or less. 
• The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010. 
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

Don’t be confused or lose out on your tax incentives for 2010.  Let the Freeman/Davis Team and HomeSearchRALEIGH.com help you today before the deadline approaches.

Are you a Facebooking Triangle TRACKS parent? If so, you may already be a fan of Triangle TRACKS’ Facebook Fan Page. If you aren’t yet, here are a few good reasons to “fan” Triangle TRACKS on Facebook today.

Triangle TRACKS is an acronym for “Tools, Resources and Activities for Carolina Kids” and is located at http://www.triangletracks.com. This social network consolidates local children’s resources for Triangle parents. Any Triangle TRACKS member who is also a fan of the social network’s Facebook page will be automatically entered into a random drawing TWICE to win these great prizes:

- 1 Nick Jr. show family 4-pack for “Nickelodeon Storytime Live” Sat. May 15 show at 2 p.m. at Progress Energy Center for the Perfoming Arts in Raleigh.

- 1 Family Pass to the Museum of Life and Science in Durham

- 3 Bounce Back BounceU Reward Passes (to be used during Open Bounce sessions)

- 1 Sitter Connection Premium Annual Membership (enables you to contact Sitter Connection up to five times/month to request a sitter. They do the legwork to find a sitter for you; you pay the sitter directly.)

The names of Facebookers who become fans of Triangle TRACKS’ Facebook page but have not become members of Triangle TRACKS will be entered into our random drawing one time only.

Triangle TRACKS uses its Facebook page to post links to fun events and interesting topics, so these posts appear in fans’ Facebook feeds. Many of the fans find this convenient and helpful.

The contest closes Jan. 21 at midnight and the winer will be announced Jan. 22 at noon. Visit Triangle TRACKS’ Facebook Fan page at this link:

http://www.facebook.com/pages/Triangle-TRACKS/61147979949

Thanks for visiting our blog today.  If you or someone you know needs expert real estate advice and assistance, call the Freeman/Davis Team at 919-649-6638 or visit www.HomeSearchRALEIGH.com

The popular first-time homebuyer credit of up to $8,000 has been extended and creates a new credit worth as much as $6,500 for long-time homeowners.

First-time homebuyer credit:

The deadline for the $8,000 first-time homebuyer credit is extended past November 30, 2009.  Buyers must enter into a binding contract to buy a home on or before April 30, 2010 and close on the home by June 30, 2010.  For purchases after November 6, 2009, the income ceiling to qualify for the full credit is raised, from $75,000 to $125,000 adjusted gross income for single filers and from $150,000 to $225,000 adjusted gross income for married couples filing jointly.

Long-time homebuyer credit:

A new $6,500 credit is available for homebuyers who have owned a home for a period of five consecutive years in the eight years prior to purchase.  The credit applies to purchases made after November 6, 2009. Buyers must enter into a binding contract to buy a home on or before April 30, 2010 and close on the home by June 30, 2010.  The income ceiling to qualify for the full credit is $125,000 adjusted gross income for single filers and $225,000 adjusted gross income for married couples filing jointly.

Some military, federal employees get extra one year to qualify

Military service members and certain other federal employees serving outside the country have an extra year to to qualify for a homebuyer credit. Eligible taxpayers must enter into a binding contract to buy a principal residence on or before April 30, 2011.

Important requirements about claiming the homebuyer credit
 
How and when you claim the credit  depends on when you purchase your home.

If you bought your home at any time during 2009, you can claim the credit when you file your 2009 taxes in 2010.  If you purchased your home on or before November 6, 2009,  you have the option to amend your 2008 tax return. But you might find it more convenient to wait, until you file your regular 2009 return. See First-Time Homebuyer Credit: How to Amend 2008 Return for 2009 Purchase.  If you bought your home after November 6 and before January 1, 2010, you can not amend your 2008 tax return using TurboTax, as a result of changes the IRS made to comply with the new law. Claim the credit when you file your 2009 tax return.  Those who buy in 2010 can choose to claim the credit when they file either their 2009 or 2010 tax returns.

Hoping to buy a home using the credit in 2010?

Keep in mind that you can not claim it on your tax return until you have closed the sale.  Consider filing your 2009 taxes early in 2010, especially if you’re getting a refund. Once you buy a home, you can amend your 2009 return to claim the credit.

NEW: Taxpayers who claim the credit on their 2009 tax returns can not e-file.The IRS requires that they file a paper return instead and attach the settlement sheets showing that the home sale closed.

The deadline is quickly approaching; you have to be under contract by the end of April!  Contact the Freeman/Davis Home Team now at 919-649-6638 or email FreemanR@hpw.com.  Let’s get started, beat the deadline and find your dream home, with money to spare.

President Obama signed a $24 billion economic stimulus bill into law Friday, giving tax incentives to prospective homebuyers and additional jobless benefits to those idled by the business slump.

There are some changes in the new tax credit program and the Freeman/Davis Home Team is here to not only answer your questions but to help you find the perfect home.  Visit us online at www.FreemanDavisHomeTeam.com.  In the meantime, let’s play Q & A on the new stimulus bill as it applies to real estate in North Carolina and Raleigh homes for sale.

Question:
Existing homeowner credit: Must the new house cost more than the old house?

Answer:
No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.

Question:
I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?

Answer:
Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

Question:
I am a first time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?

Answer:
Yes. The new income limitations go into effect as soon as the President has signed the bill.  The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you’re within the phaseout range).

Question:
I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax credit?

Answer:
No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.

Question:
I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?

Answer:
Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is “consecutive.” As long as he lived in that house for 5 years straight what he did since 3 years doesn’t impact eligibility.

Question:
I am an eligible firsttime homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?

Answer:
You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.

If you’re ready to start your home search, call us at 919-649-6638 and let’s get moving!
 

The Senate voted Wednesday to renew the government’s $8,000 tax credit for first-time home buyers through the first six months of next year as part of a broader bill designed to extend unemployment benefits.

For the first time, the tax credit program would also enable many homeowners who buy a new primary residence to receive a $6,500 refund.

The measure was attached to a bill that would provide 20 weeks of unemployment benefits in more than two dozen states with jobless rates above 8.5 percent and up to 14 weeks elsewhere. Another provision in the bill would allow businesses that had operating losses in 2008 and 2009 to seek refunds for taxes paid on profits over the past five years.

The bill, which passed 98 to 0, should reach the House floor by Thursday and would then go to the White House for the president’s signature.  The Obama administration has previously supported extending the $8,000 tax credit, and without congressional action the program would end Nov. 30.

Under the bill, first-time home buyers would receive the $8,000 tax credit if they sign a contract by April 30 and close on it by June 30. The plan would also make those who buy a new primary residence eligible for the $6,500 credit if they owned their current home for at least five consecutive years in the previous eight years.

But the measure limits the purchase price of the home to $800,000. It also imposes income caps so that people who make more than $125,000 annually and couples who make more than $225,000 would not be eligible for the program, which is estimated to cost $10 billion.

Get your home search started today with the Freeman/Davis Team.  Visit us at www.FreemanDavisHomeTeam.com or call 919-649-6638.

The $8,000 first-time homebuyer tax credit is set to be extended until April 30, 2010. The Obama Administration has urged Congress to pass legislation to extend the program from its original Dec. 1, 2009 deadline. In addition, legislation may provide a tax credit for some current homeowners. The National Association of Mortgage Brokers (NAMB) will continue to monitor the legislation.

“We welcome efforts taken by Congress to extend the first-time homebuyers tax credit for a limited period,” said Treasury Secretary Tim Geithner and U.S. Department of Housing & Urban Development (HUD) Secretary Shaun Donovan in a joint statement. “This credit has brought new families into the housing market and contributed to three consecutive months of rising home prices nationwide.”

A number of proposals to extend and expand the credit have circulated in Congress of late; however, Senate lawmakers have come to a better focused plan in recent days. Under the terms of the agreement, the deadline for first-time homebuyers to claim the $8,000 credit would be pushed back to April 30, 2010. But the term “deadline” doesn’t mean the same thing as it does in the current credit. The Senate agreement stipulates that buyers must have a sales contract on a house by April 30 to be eligible, but it gives them an additional 60 days to close the purchase. That’s much different from the current credit, in which transactions must be closed by Nov. 30.

For more information about the $8000 Tax Credit and what it can mean for you, call the Freeman/Davis Home Team at 919-649-6638 and visit www.HomeSearchRALEIGH.com.
 

Or so the famous saying goes. And when it comes to really understanding the various reports and events unfolding in the economy, it’s important to take a look at the details - not just the headlines. Here’s what you need to know.

On the inflation front, the Producer Price Index, which measures wholesale inflation, unexpectedly fell due to a drop in energy prices. While that seems like good news on the surface, keep in mind that next month’s number could climb higher again, as oil and natural gas have both been on a tear higher lately.

In housing news, Housing Starts and Building Permits both came in a bit below expectations, but this may be a sign that builders are exercising some caution - particularly in the face of the $8,000 tax credit for first time homebuyers that is presently set to expire on November 30th. Existing Home Sales came in better than expected - and a whopping 45% of those homes were sold to first time homebuyers - rushing to move in on that credit. Recent studies have shown that many who qualify for this tax credit aren’t even aware of it…so please let me know if you or someone you know needs more information - the clock is ticking!

Additionally, the level of existing homes inventory shrunk to a 7.8 month supply, down from a recent high of 10.1 months in April.

In other news, 3rd quarter earnings season continues, where companies report their status as of the end of September. While many companies are beating expectations, it’s important to realize that many of those companies achieved better earnings by cost cutting and layoffs, not from increased sales. This is a big disconnect between Wall Street and “Main Street”. Stocks are rocketing higher based on these “positive” reports, but the cost cutting and job cutting measures can only go so far…you can’t simultaneously grow the ranks of unemployment - and then grow your business, hoping for increased sales to those same people who are without jobs.

Last week’s Jobless Claims numbers seem to confirm this as Initial Jobless Claims rose more than expected. In addition, the number of individuals continuing to receive unemployment benefits fell to the lowest level since March, but this is likely the result of people’s unemployment benefits expiring, without them having been able to find jobs.

For more information on the Raleigh Real Estate market and our complete MLS program featuring all Raleigh Homes for sale and properties on the market in the surrounding counties, visit us online at www.HomeSearchRALEIGH.com.  For up-to-date mortgage information, contact Beth Prochaska at Wells Fargo Home Mortgage. Beth can be emailed at beth.prochaska@wellsfargo.com

For the first time in more than a year, our phones here at The Freeman/Davis Home Team are ringing more and closings are on the increase. This is wonderful news and a trend that we hope gets even more positive in the weeks to come.

It seems that most of the increase in home sales is due to the economic stimulus package that allowed first-time home buyers an $8,000 tax credit. Clearly, this has stimulated interest in homebuying and has resulted in the first uptick in home sales in some time.  That’s the good news.  The bad news is that the tax credit is scheduled to expire at the end of November, threatening a recovery that is fragile at best. If Congress does not extend the tax credit, we could turn back the clocks another year or so and be right back where we were when this entire mess began.

Congress should not allow the $8,000 first-time home buyer tax credit to expire because they will risk causing a relapse in the housing market that could forestall an economic recovery, even before it has time to take root. The last thing the country needs with unemployment moving into double-digits and builders already reporting that entry-level buyers are pulling back as the tax credit deadline approaches.

Please take the time to copy and paste the letters below, urging the Senate and the House to extend this valuable benefit to the ecomomy.

The Freeman/Davis Team at Coldwell Banker/HPW urges you to do your part.  For more information about the tax credits and homes available for sale, visit us at www.HomeSearchRALEIGH.com.

___________________________________________________________________________

House Version:

Subject:  Home Sales Create Jobs - Extend and Expand the Home Buyer Tax Credit

As you are well aware, the home buyer tax credit is due to expire on November 30.  I wanted to write to let you know that the tax credit is working for me, my community and the US economy.  It has opened the door to home ownership for millions of first-time buyers and has in turn brought with it all the positive economic forces that homeownership brings, beginning with jobs.  Studies have shown that home buyers spend up to $9,000 in the first year after the purchase of a home.  This creates jobs for appliance manufacturers and retailers, home inspectors, landscapers, movers, suppliers, designers and local government employees, to name just a few.  Some 3 million jobs have been lost in the housing sector during the economic downturn.  The home buyer tax credit has been the one glimmer of hope.  In the process, jobs and communities have been saved.  The influx of new buyers has also reduced the supply of homes for sale which has helped to stabilize home prices. 

While there have been some positive signs from the housing sector, we are far from being out of the woods.  If you let this tax credit expire, it will eliminate all the progress we have made since last March when it took effect and we will revert to the job losses we experienced then.  Please make sure the tax credit gets extended beyond November 30 and that it also is expanded beyond first-time buyers only.

Thank you.

Senate Version:

Subject:  Home Sales Create Jobs - Extend and Expand the Home Buyer Tax Credit

As you are well aware, the home buyer tax credit is due to expire on November 30.  I wanted to write to let you know that the tax credit is working for me, my community and the US economy.  It has opened the door to home ownership for millions of first-time buyers and has in turn brought with it all the positive economic forces that homeownership brings, beginning with jobs.  Studies have shown that home buyers spend up to $9,000 in the first year after the purchase of a home.  This creates jobs for appliance manufacturers and retailers, home inspectors, landscapers, movers, suppliers, designers and local government employees, to name just a few.  Some 3 million jobs have been lost in the housing sector during the economic downturn.  The home buyer tax credit has been the one glimmer of hope.  In the process, jobs and communities have been saved.  The influx of new buyers has also reduced the supply of homes for sale which has helped to stabilize home prices. 

While there have been some positive signs from the housing sector, we are far from being out of the woods.  If you let this tax credit expire, it will eliminate all the progress we have made since last March when it took effect and we will revert to the job losses we experienced then.  Please make sure the tax credit gets extended beyond November 30 and that it also is expanded beyond first-time buyers only.

Thank you.