Final score: $8,000 for homebuyers
First-time purchasers get a tax credit windfall if they buy before December.
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NEW YORK (CNNMoney.com) -- There's a nice windfall for some homebuyers in the economic stimulus bill awaiting President Obama's signature on Tuesday. First-time buyers can claim a credit worth $8,000 - or 10% of the home's value, whichever is less - on their 2008 or 2009 taxes.
A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns - was less than that amount. But there has been a lot of confusion over this provision. Adam Billings of Knoxville, Tenn. wrote to CNNMoney.com asking:
"I will qualify as a first-time home buyer, and I am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund?"
The short answer? Yes, Billings would get back the $8,000 plus what he'd overpaid. The long answer? It depends. Here are three scenarios:
Scenario 1: Your final tax liability is normally $6,000. You've had taxes withheld from every paycheck and at the end of the year you've paid Uncle Sam $6,000. Since you've already paid him all you owe, you get the entire $8,000 tax credit as a refund check.
Scenario 2: Your final tax liability is $6,000, but you've overpaid by $1,000 through your payroll witholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid.
Scenario 3: Your final tax liability is $6,000, but you've underpaid through your payroll witholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund.
To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as "first time" buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.
Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)
Applying for the credit will be easy - or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.
Many may look at the tax credit as a discount on the home price, according to Yun. A $100,000 purchase effectively becomes a $92,000 one. That can reassure buyers apprehensive about purchasing and then watching prices continue falling, he added.
And it provides a nice nest egg for the often-difficult early years of homeownership, when unexpected repairs and expenses often crop up. Recipients could also use the money to buy new stuff for their home - a lawnmower, a rug, a sofa - and, in that way, help stimulate the economy.
Thursday, February 19, 2009
Friday, October 10, 2008
ABC World News Features KC Housing Market
ABC World News Features Kansas City Housing Market
Kansas City’s housing market was featured ABC’s World News with Charles Gibson Thursday night in a look at the housing market. Kansas City was focused as a Midwestern city where the new-home market has bucked national trends and began to show positive signs and the early markings of a recovery.“Locally, permits have been up over the last three months,” local home builder Kevin Enyeart of Gale Homes said in an interview with ABC News. “We just wrapped up the local Parade of Homes where we open up all the homes from all the builders metrowide. In our sales office we saw triple the traffic – over 150 car loads of families coming through sales office compared to 40 or 50 during a typical Parade of Homes.”
Enyeart explained that builders have significantly reduced their inventory of new of new homes and that homebuyers were realizing that opportunities to take advantage of competitive prices and low mortgage rates are dwindling.“They are wanting to jump in and take that last opportunity on a purchase before things start to hit that uptick on the bell curve,” he told ABC News.“The general consumer confidence seems positive right now,” Enyeart said. “They are watching the headlines; they are watching the credit tightening. I’ve seen folks coming in worried about where the credit tightening is going to and looking to either take advantage of it before things changes too dramatically or get locked in on rates as they are a little bit lower since there is some uncertainty over where rates are going to go.”While national new-home sales plunged 11.5 percent in August, Midwest sales activity rose more than 7 percent, according to the Census Bureau.“I say to my clients, ‘It’s a buyer’s market – why aren’t you buying?’ ” Chicago Realtor Jeanine Wheeler told ABC News. Despite tougher credit and lending standards, mortgage broker Ken Perlmutter explained that credit remained available for buyers in the new-home market.“There is a misconception out there that we aren’t lending money,” Perlmutter said. We are. We’re certainly eager to lend it to people who want to buy homes.
HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY600 E. 103rd Street · Kansas City, Missouri 64131-4300OFFICE (816) 942-8800 · FAX (816) 942-8367
©
2008 Home Builders Association of Greater Kansas City
Kansas City’s housing market was featured ABC’s World News with Charles Gibson Thursday night in a look at the housing market. Kansas City was focused as a Midwestern city where the new-home market has bucked national trends and began to show positive signs and the early markings of a recovery.“Locally, permits have been up over the last three months,” local home builder Kevin Enyeart of Gale Homes said in an interview with ABC News. “We just wrapped up the local Parade of Homes where we open up all the homes from all the builders metrowide. In our sales office we saw triple the traffic – over 150 car loads of families coming through sales office compared to 40 or 50 during a typical Parade of Homes.”
Enyeart explained that builders have significantly reduced their inventory of new of new homes and that homebuyers were realizing that opportunities to take advantage of competitive prices and low mortgage rates are dwindling.“They are wanting to jump in and take that last opportunity on a purchase before things start to hit that uptick on the bell curve,” he told ABC News.“The general consumer confidence seems positive right now,” Enyeart said. “They are watching the headlines; they are watching the credit tightening. I’ve seen folks coming in worried about where the credit tightening is going to and looking to either take advantage of it before things changes too dramatically or get locked in on rates as they are a little bit lower since there is some uncertainty over where rates are going to go.”While national new-home sales plunged 11.5 percent in August, Midwest sales activity rose more than 7 percent, according to the Census Bureau.“I say to my clients, ‘It’s a buyer’s market – why aren’t you buying?’ ” Chicago Realtor Jeanine Wheeler told ABC News. Despite tougher credit and lending standards, mortgage broker Ken Perlmutter explained that credit remained available for buyers in the new-home market.“There is a misconception out there that we aren’t lending money,” Perlmutter said. We are. We’re certainly eager to lend it to people who want to buy homes.
HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY600 E. 103rd Street · Kansas City, Missouri 64131-4300OFFICE (816) 942-8800 · FAX (816) 942-8367
©
2008 Home Builders Association of Greater Kansas City
New Homes Forecast
Forecast Shows Housing Making Positive Transition in 2008Declining inventories show housing headed in the right direction
After back-to-back down years for both new-home starts and sales, the Kansas City housing market is showing a swing in a positive direction. That was the message from the 2008 Housing Forecast presented Thursday, Jan. 17 by the Home Builders Association of Greater Kansas City (HBA). More than 425 housing professionals attended the forecast event at the Westin Crown Center Hotel.
Related Articles
Dan Whitney Presentation
Tim Underwood Presentation
Kansas City Star coverage Adobe PDF of The Star's forecast coverage
New-home inventory levels are falling quickly and home sales are poised to rebound in 2008, suggesting a stronger, more balanced housing market is right around the corner, according to Dan Whitney, president of the housing market research firm Landmarketing based in Overland Park.
“The local new housing market is in a state of positive transition,” Whitney explained to attendees at the annual housing forecast. “Inventory levels have dropped for the fourth quarter in a row and have fallen 15.4 percent from their all-time high in January 2007.”
Whitney said inventories will continue to fall given the 51 percent decrease in housing starts and 32.6 percent drop in new-home building permits. His forecast calls for new-home permits to dip slightly in 2008 before beginning a steady recovery in 2009 to the pre-housing boom levels of the late 1990s.
“While these corrections are difficult for the building industry, they are necessary to bring the supply in line with the demand,” Whitney said. “The appropriate level of new-home inventory is approximately 1,500 fewer than the current 4,188 homes. The supply and demand balance favors the buyer right now but inventory levels will drop fast creating a more balanced market.”
There were 1,421 more closings than starts in 2007, with Johnson and Clay counties accounting for the bulk of the reduction in inventory. Johnson County posted 490 more closings than starts, while Clay County reduced inventory by 410 homes.
Excess inventory should continue to move quickly in 2008. Whitney’s forecast calls for new-home closings to rebound 18 percent following a 10 percent decline in 2007. That would allow net inventory levels to drop to more normal levels. As a result, Whitney expects the best opportunities for consumers to occur earlier in the year before excess inventories are fully absorbed by the market.
While all prices ranges across the metro have a modest buildup in new-home inventories, Whitney said the degree of concern differs from location to location and price range to price range. In terms of prices, the extremes of the market have been the best performing in terms of inventory levels, with homes priced under $175,000 posting the lowest monthly supply on the market. The second-best performing price range is for homes priced more than $925,000.
The biggest buildup in inventory is among homes priced $225,000 to $625,000, yet Whitney said there are locations where that price range is performing well, such as in southwestern Jackson County and southern Leavenworth County.
Whitney said a key factor impacting Kansas City’s housing market correction is clearing the backlog of existing homes on the market. “The number one reason new-home shoppers give for not being able to take advantage of the housing values now is they cannot sell their existing home. Existing-home sales have to increase to allow buyers to purchase new homes.
While instability in the mortgage market sparked by the turmoil in subprime lending is faulted in some markets nationwide, Whitney said Kansas City is fairing much better than average in terms of mortgage accessibility and availability of credit.“The local mortgage situation is in great shape compared to the highly publicized areas around the country, particularly Florida, California, Michigan and Nevada,” he said. “This national coverage continues to overshadow the local relatively stable conditions in Kansas City and the Midwest.”
As the housing market begins its recovery, questions abound about what the new and improved housing market will look like. Underwood said focusing on the development of new housing choices and better connections between housing and transportation will allow residential construction to maintain its role as an economic engine for the region.
“We need to take a closer look at the demographic trends of our metro and establish a regional vision for housing choices that meet the needs and demands of local families,” Underwood said. “Housing affordability, employment, transportation and the economy are critical issues impacting today’s market. We need to address all of these concerns to ensure that we are building strong, vibrant neighborhoods for Kansas City new-home buyers.”
Whitney agreed with Underwood’s assessment that new housing choices driven by changing demographics and the housing needs of local families is critical to future success.
“There’s too much relying on crystal balls instead of market trends and facts,” Whitney said.
The Home Builders Association (HBA) of Greater Kansas City is the voice of the housing industry and the source for housing information. Comprising more than 1,000 member companies, the HBA represents an industry that contributes approximately $2.5 billion to the Kansas City economy, and supports more than 36,000 jobs in the Greater Kansas City metropolitan area.
After back-to-back down years for both new-home starts and sales, the Kansas City housing market is showing a swing in a positive direction. That was the message from the 2008 Housing Forecast presented Thursday, Jan. 17 by the Home Builders Association of Greater Kansas City (HBA). More than 425 housing professionals attended the forecast event at the Westin Crown Center Hotel.
Related Articles
Dan Whitney Presentation
Tim Underwood Presentation
Kansas City Star coverage Adobe PDF of The Star's forecast coverage
New-home inventory levels are falling quickly and home sales are poised to rebound in 2008, suggesting a stronger, more balanced housing market is right around the corner, according to Dan Whitney, president of the housing market research firm Landmarketing based in Overland Park.
“The local new housing market is in a state of positive transition,” Whitney explained to attendees at the annual housing forecast. “Inventory levels have dropped for the fourth quarter in a row and have fallen 15.4 percent from their all-time high in January 2007.”
Whitney said inventories will continue to fall given the 51 percent decrease in housing starts and 32.6 percent drop in new-home building permits. His forecast calls for new-home permits to dip slightly in 2008 before beginning a steady recovery in 2009 to the pre-housing boom levels of the late 1990s.
“While these corrections are difficult for the building industry, they are necessary to bring the supply in line with the demand,” Whitney said. “The appropriate level of new-home inventory is approximately 1,500 fewer than the current 4,188 homes. The supply and demand balance favors the buyer right now but inventory levels will drop fast creating a more balanced market.”
There were 1,421 more closings than starts in 2007, with Johnson and Clay counties accounting for the bulk of the reduction in inventory. Johnson County posted 490 more closings than starts, while Clay County reduced inventory by 410 homes.
Excess inventory should continue to move quickly in 2008. Whitney’s forecast calls for new-home closings to rebound 18 percent following a 10 percent decline in 2007. That would allow net inventory levels to drop to more normal levels. As a result, Whitney expects the best opportunities for consumers to occur earlier in the year before excess inventories are fully absorbed by the market.
While all prices ranges across the metro have a modest buildup in new-home inventories, Whitney said the degree of concern differs from location to location and price range to price range. In terms of prices, the extremes of the market have been the best performing in terms of inventory levels, with homes priced under $175,000 posting the lowest monthly supply on the market. The second-best performing price range is for homes priced more than $925,000.
The biggest buildup in inventory is among homes priced $225,000 to $625,000, yet Whitney said there are locations where that price range is performing well, such as in southwestern Jackson County and southern Leavenworth County.
Whitney said a key factor impacting Kansas City’s housing market correction is clearing the backlog of existing homes on the market. “The number one reason new-home shoppers give for not being able to take advantage of the housing values now is they cannot sell their existing home. Existing-home sales have to increase to allow buyers to purchase new homes.
While instability in the mortgage market sparked by the turmoil in subprime lending is faulted in some markets nationwide, Whitney said Kansas City is fairing much better than average in terms of mortgage accessibility and availability of credit.“The local mortgage situation is in great shape compared to the highly publicized areas around the country, particularly Florida, California, Michigan and Nevada,” he said. “This national coverage continues to overshadow the local relatively stable conditions in Kansas City and the Midwest.”
As the housing market begins its recovery, questions abound about what the new and improved housing market will look like. Underwood said focusing on the development of new housing choices and better connections between housing and transportation will allow residential construction to maintain its role as an economic engine for the region.
“We need to take a closer look at the demographic trends of our metro and establish a regional vision for housing choices that meet the needs and demands of local families,” Underwood said. “Housing affordability, employment, transportation and the economy are critical issues impacting today’s market. We need to address all of these concerns to ensure that we are building strong, vibrant neighborhoods for Kansas City new-home buyers.”
Whitney agreed with Underwood’s assessment that new housing choices driven by changing demographics and the housing needs of local families is critical to future success.
“There’s too much relying on crystal balls instead of market trends and facts,” Whitney said.
The Home Builders Association (HBA) of Greater Kansas City is the voice of the housing industry and the source for housing information. Comprising more than 1,000 member companies, the HBA represents an industry that contributes approximately $2.5 billion to the Kansas City economy, and supports more than 36,000 jobs in the Greater Kansas City metropolitan area.
Thursday, September 18, 2008
Fall Parade of Homes
2008 Parade of Homes
September 7-21
YOU'VE BEEN WAITING FOR THE CHANGE IN SEASONS BUT HOW ABOUT A CHANGE IN SCENERY TOO? NOW THAT THE SUMMER HEAT WAVE IS COOLING OFF, IT'S THE PERFECT TIME OF YEAR TO GET OUT OF YOUR HOUSE AND CHECK OUT ALL THE POSSIBILITIES FOR YOUR NEW HOME ON THE 61ST ANNUAL PARADE OF HOMES!
September 7-21
YOU'VE BEEN WAITING FOR THE CHANGE IN SEASONS BUT HOW ABOUT A CHANGE IN SCENERY TOO? NOW THAT THE SUMMER HEAT WAVE IS COOLING OFF, IT'S THE PERFECT TIME OF YEAR TO GET OUT OF YOUR HOUSE AND CHECK OUT ALL THE POSSIBILITIES FOR YOUR NEW HOME ON THE 61ST ANNUAL PARADE OF HOMES!
Wednesday, May 28, 2008
Wow, the Action is HERE!
Rosie & Thesa are the PROUD community representatives of several new homes going up in our MP community. Our builders are going to town building 11 homes now, 2 of the homes are ready for immediate occupancy, several more will be ready in 30 to 60 days, and we have a few in the very early stages of the building process just waiting for your personal touch. 1/3 of the homes sites already have homes on them in a few short months!
Ashford Villas have tile roofs, low E vinyl windows, granite Kitchens & Baths, our builders are also offering WALK OUT, DAYLIGHT, AND LEVEL HOMESITES. We feature 2, 2.5 & 3 car garages. We really do have something for everyone.
This is a fantastic location 144th Place & Quivira offering 5 Popular floor Plans from 4 Award Winning Quality Builders, Dakota Villas, KC Builders & Design, Lambie-Geer Homes, & Pinecrest Development.
We are also sporting around in our NEW Ashford Villas Shuttle Cart. No need for lots of walking to see our Wonderful community, come over and we will be happy to shuttle you from home to home.
See You Soon!
Thesa & Rosie
Ashford Villas have tile roofs, low E vinyl windows, granite Kitchens & Baths, our builders are also offering WALK OUT, DAYLIGHT, AND LEVEL HOMESITES. We feature 2, 2.5 & 3 car garages. We really do have something for everyone.
This is a fantastic location 144th Place & Quivira offering 5 Popular floor Plans from 4 Award Winning Quality Builders, Dakota Villas, KC Builders & Design, Lambie-Geer Homes, & Pinecrest Development.
We are also sporting around in our NEW Ashford Villas Shuttle Cart. No need for lots of walking to see our Wonderful community, come over and we will be happy to shuttle you from home to home.
See You Soon!
Thesa & Rosie
Saturday, March 29, 2008
WE ARE OPEN!!!!!!!!!
We welcome you to stop by and see our furnished model.
THE MONTICELLO by DAKOTA VILLAS, INC.
We have Five different floor plans to choose from or each of our builders can custom design a home just for you! Ashford Villas only has 31 Homes Sites Available in this "Close-In" Location.
Please stop in we are OPEN DAILY 11-5 and open Sundays 12-5.
See ya soon,
Thesa & Rosie
Marketing Team
913-402-9911
Wednesday, March 5, 2008
New Pictures of Progress
These are the updated pictures of The Monticello by Dakota Villas, Inc. will be completed in 2 WEEKS!!!!
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