Real Estate Outlook: Steady Growth Expected
Harsh weather conditions held back home sales in February — leading to some renewed gloominess by Wall Street analysts. But several new economic reports, including on employment, suggest that during the coming several months we’re likely to see steady but unspectacular national economic growth, and some pretty good housing rebound numbers to boot. FULL STORY->

The $8,000 homebuyer tax credit for first-time buyers, due to expire in 15 days, will be extended through April 30 of next year and buyers will have an additional two months, until the end of June, to close. First-time buyers who are in the process of making a purchase will no longer need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline. The new legislation increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.

For the first time, the new legislation makes buyers who already own a home eligible for a credit. A $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years. The legislation limits eligibility for the existing homeowner credit to homes worth $800,000 or less.

The legislation takes effect December 1 and is not retroactive. Both credits are available only for primary residences, not second homes or investment properties.

Federal Housing Extended Tax Credit

But here’s something in the expanded program that hasn’t gotten much attention: The new $6,500 federal tax credit for so-called “move up” buyers took effect immediately upon enactment.

That means that potentially hundreds of thousands of Americans who fit the key ownership and income criteria for the new credit are eligible for it … right now.

The U.S. Department of Labor announced earlier today that the national employment rate reached 10.2% in October, the highest level in over 26 years.  Florida has certainly been affected by the downturn of the economy.  Our State’s economy is stabilized largely by tourism, agriculture, and construction, and large spikes in unemployment – as well as a downturn in our nation’s housing market – have sent ripples that have virtually affected all segments of our economy, in every corner of our State.  While Florida’s October unemployment rates will not be released until later this month, our current rate is already well above the national rate at 11%, and some counties are much higher.  These rates, which have gradually increased, are of great concern and I am focused on supporting policies that will help to reduce unemployment and stimulate the economy.

I am pleased to share that yesterday the House of Representatives passed H.R. 3548, the Unemployment Compensation Extension Act of 2009, as amended by the Senate, with my support. The President is expected to sign the legislation as early as today.

This important legislation extends the $8,000 first-time homebuyers tax credit for an additional five months, from November 30, 2009, to April 30, 2010.  In addition, the bill provides a $6,500 tax credit for homebuyers that are not first time buyers, but have owned a primary residence at least five consecutive years in the last eight years. 

The legislation caps the credit eligibility on homes that cost $800,000 or more and raises the current income limit from $75,000 to $125,000 for individuals, and $150,000 to $225,000 in the case of a joint return.  In addition, H.R. 3548 waives provisions to recapture the credit for military, intelligence, and Foreign Service personnel who are on qualified official duty and extends the tax credit for an additional year for those on qualified extended duty overseas for 90 days or more since 2008.

Other important provisions of the legislation include:

UNEMPLOYMENT BENEFITS:  extending unemployment benefits for 14 weeks in all 50 states, with an additional six weeks in 27 states with unemployment higher than 8.5% (this would include Florida).

NET OPERATING LOSSES:  extending the temporary five-year carryback of NOLs (net operating losses) created under the stimulus to provide an additional benefit for all struggling businesses, regardless of size.  Ordinarily these companies can carry back these losses for only two years to qualify for a tax refund.  The provision makes this process extend the carry-back to five years for either 2008 or 2009. The tax break will now apply to losses in either 2008 or 2009, and the income cap will come off.

As always, if you are experiencing difficulties with a federal agency, are interested in legislation that is pending before Congress or merely wish to express your opinions, please visit my website at www.adamputnam.house.gov.  If you would like additional updates on this and other issues please signup for my e-newsletter at http://adamputnam.house.gov/signup.shtml.   

Sincerely,

Adam Putnam
Member of Congress 

Real Estate Outlook: Warning of Slow Down?
by Kenneth R. Harney
Though some economic analysts are warning that the housing market’s rebound will slow down as the weather turns colder, this week’s numbers show no hints of that.

 In fact, they’re actually pretty warm.

Start with house prices. The Clear Capital Home Data Index, which tracks price movements in thousands of neighborhoods and ZIP codes across the country, reported a 6.3 percent gain last week for the period covering August 27th through September 25th.

Full Story

Lakeland, Polk to Get Funds for Houses

HUD to release $16.5 mil. to buy, renovate, sell homes.

Tax Credit Provides Outstanding Opportunity for Home Buyers

A tax credit of up to $8,000 is available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.

               Click Here Now!Frequently Asked Questions About the Home Buyer Tax Credit

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.