The Randomness of People aka My 100th post on this Blog

My paint contractor: "Some lady wants to come in and see your house."

Me: "Uhm. Tell her there's crap everywhere and it's a liability issue."

Painter: "I told her and she yelled at me. She said, 'How am I going to hire you if you won't let me see your work!?"

Me: "Right, because that's how you shop for a painter. You walk around your neighborhood. Would she let some random looky-loo into her own house?"

Painter: "Exactly. Of course not. Then she said, 'I'm not gonna steal your shit."

Wow. Just, wow.

Senate May Approve Tax Credit This Week

The U.S. House and Senate are close to an agreement to extend the home buyer tax credit due to expire at the end of this month.

The Senate is expected to vote Wednesday while the House could approve it later in the week – likely before Friday when the monthly report on the unemployment rate will be released.

The measure that is slated to pass would cover homes under contract by April 30. Also, anyone taking the credit from a home purchased in 2010 would be able to take the credit when they pay their 2009 taxes.

First-time home buyers would be eligible for $8,000, but purchasers don’t have to be first-time buyers. Anyone who has owned a home for at least five years could get a $6,500 credit on a new residence.

Income limitations rise under the new plan with individuals earning up to $125,000 a year and couples earning up to $225,000 eligible. People who earn more would be eligible for smaller credits.

Source: The New York Times, Jackie Calmes (11/4/2009)

Extending the Credit | Almost There

The extension and expansion of the homebuyer tax credit is the pending business in the Senate.

After a long week of negotiation on the credit, an agreement on the scope of both expansion and extension has been reached. The extension is part of a larger bill that has not yet gone to a vote, however.

A Senate vote on the underlying bill will occur in the Senate during the week of November 1. The package will then go back to the House.

The House is expected to accept the Senate amendments, vote on the package and send it to the President for signature.

The underlying bill is an extension of unemployment benefits. Other provisions in the bill include expansion of the net operating loss carryback rules, new requirements for some tax return preparers and noncontroversial provisions that "pay for" these changes.

The agreement on the extension and expansion of the credit is as follows:
Credit available for purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.

• Credit remains at $8000 for first-time purchasers. No change to definition of first-time purchaser.
• New $6500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years.
• Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.
• New anti-fraud limitations are imposed.
• The White House has indicated that President Obama will sign the legislation.

My Recent Family Trip to Wrigley Field

Underage Home Owners: How Did They Do It?

Before she was old enough to legally drink alcohol, Youth Radio’s Denise Tejada bought a house in the San Francisco Bay Area, one of the most expensive real estate markets in the country. Her brother Wilmer bought his first house when he was 21 and now he’s planning to invest in a second property.

Watch the video to find out how they did it.

Congress Debating the Tax Credit

Congress is considering expanding and extending the $8,000 first-time homebuyer tax credit, which expires Nov. 30.

More than 1.8 million home buyers will have used the credit by the end of November, including an estimated 355,000 who wouldn’t have bought a home without it, according to the National Association of REALTORS® and other analysts.

Mark Zandi, chief economist for MoodysEconomy.com, is among those in favor of extending the credit. Zandi would also make it available to all homebuyers.

"The most fundamental argument for the credit is that nothing works in the economy if housing is falling," Zandi said.

"[The credit] is a good insurance policy. It's vital to stem the housing price declines."

Opponents argue that the tax credit is too expensive and doesn’t help enough people.

Extending the credit through the end of 2010 and making it available to single filers earning up to $150,000 and joint filers earning up to $300,000 would cost an estimated $16.7 million.

Some in Congress propose using unspent money from the $787 billion stimulus bill to pay for it.

Source: CNNMoney.com, Les Christie (10/14/2009)

Prediction: Homes Sales to Rise 11 Percent

Sales of existing homes will rise 11 percent in 2010, and sales of new homes will climb 21 percent over this year, Mortgage Bankers Association Chief Economist Jay Brinkmann predicted in a speech Tuesday at the organization’s annual meeting.

"We still see a concentration in the lower end of the market," Brinkmann said. "The entry-level homes are in demand."

Brinkmann also predicted further declines in existing home prices, with the median falling to $164,200 in the first quarter of 2010.

David Stevens, commissioner of the Federal Housing Administration, concurred, adding that mortgage rates will rise to 5.6 percent by the end of 2010, though not enough of an increase to discourage a 12 percent increase in mortgage applications next year.

Source: Associated Press, Alex Veiga (10/13/2009)

Homeownership Still A Good Investment

The American dream of homeownership is still a good bet, financial advisors say firmly.

Despite the downturn in the last couple of years, homes have still appreciated an average of 4 percent a year since World War II. Plus, it’s a leveraged investment; a 10 percent down payment yields a 1,000 percent return if the price of the home doubles.

There are also valuable intangibles. Owning a home provides independence, security, community, and a roof over the owner’s head. No one can say that about investing in stock.

Source: Associated Press, Dave Carpenter (10/12/2009)

Economists Predict Housing Recovery

Economic forecasters predict that 2010 will be the first year since 2005 for housing to contribute to the growth of the U.S. economy, according to a survey released by the National Association for Business Economics.

Home prices are expected to rise 2 percent next year, but forecasters don’t believe the increase in prices will discourage homebuyers.

More than 80 percent of economists surveyed by the NABE think the recession is over and recovery has begun, but they expect the expansion to be slow because unemployment persists.

Source: Associated Press, Mae Anderson (10/12/2009)