New Listing: 7716 Nightingale Lane in Godfrey

What a cute house this is! The homeowner has completed many updates to this home with new laminate flooring, thermal windows, interior doors and more. A large finished family room in the walk-out basement make this the perfect home for a family, and the fully fenced yard means your pets will be right at home. A hot tub out back, surrounded by a vinyl privacy fence, is great for entertaining -- during warmer weather, of course! Call soon for a showing. I don't expect this one will last long!

These Tax Credits are Better than I Originally Thought!

No, I never get tired of promoting these tax credits -- both the old one that offers up to $8,000 for qualifying first-time buyers and the new one for existing homeowners (up to $6,500) who meet the right criteria. (See some of my earlier posts for additional details.)

One question that I'm often asked by my clients is whether they can use the credit for down payment assistance or for closing costs. I haven't seen any evidence that either of those scenarios will work, but I am not a tax expert; so I refer folks to the experts at the IRS or to their tax preparers. (If I learn more about that, I'll be sure to post it here.)

But what I just learned today was that even if you close on a new home by June 30, 2010, AND you qualify for one of the credits, you can get that credit this year -- without having to wait until you next year when you file your 2010 taxes.

In an article published in an online real estate trade magazine, the authors (Maria Patterson and Stephanie Andre) explain it like this: "-Tax Facts: Provided the home-owner stays in the home for three or more years, the tax credit is a true credit and does not need to be repaid. The tax credit is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if you owe no tax or the credit is more than the tax owed. The credit is claimed using Form 5405, which you file with your original or amended tax return. Buyers can claim the credit on their 2009 taxes, even if the home is purchased in 2010, by filing an amended tax return."

That's good news for many folks, who may need that money for repairs or improvements to their newly purchased home and don't want to wait a year to complete them.

If you'd like, you can read the entire article here: http://rismedia.com/2010-01-04/18-5-billion-reasons-to-make-the-home-buyer-tax-credit-work-2/

What a Home Seller Needs to Know

Think you're ready to put your home on the market? Or maybe you've already listed your homes for sale, and you want to maximize its curb appeal for a quick and easy sale. Does that sound good? Well, the National Association of Realtors has done their homework to discover which improvement projects earn you the biggest pay-back. They do this every year, and often the same things keeps showing up, such as siding and replacement windows. Here's an article that explains the 2009 results:


Exterior Remodeling Proves Best Bang for Your Buck, Realtors® Report
Washington, December 17, 2009

Despite a slow market and a slight decrease in the resale value of most remodeling projects, Realtors® report that the smartest home improvement investments may also be some of the least expensive. Results from the 2009 Remodeling Cost vs. Value Report show that small-scale exterior projects are the most profitable at resale, according to estimates by Realtors® who completed a recent survey.

On a national level, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that cost less than $14,000. Certain types of door and siding replacements, as well as wood deck additions all returned more than 80 percent of project costs upon resale. A steel entry door replacement – a new addition to this year’s list – recouped 128.9 percent of costs, followed by upscale fiber-cement sliding replacements at 83.6 percent. Wood deck additions recouped 80.6 percent of costs.

“Once again, this year’s Remodeling Cost vs. Value Report highlights the importance of a home’s first impression,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “With exterior projects returning a high percent of project costs upon resale, Realtors® can help give your home curb appeal while adding value to the real estate transaction.

The 2009 Remodeling Cost vs. Value Report compares construction costs with resale values for 33 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 12th consecutive year that the report, which is produced by Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine, as Realtors® provided their insight into local markets and buyer home preferences within those markets.

On a national level, the project with the biggest improvement from 2008 was the attic bedroom addition, recouping 83.1 percent of remodeling costs compared to 73.8 percent in 2008. The only other interior project that landed in the top 10 was a minor kitchen remodel with 78.3 percent costs recouped.

Other exterior projects in the top 10 include midrange vinyl and upscale foam-backed vinyl sliding replacements, which returned more than 79 percent of costs. In addition, several types of window replacements – midrange wood, midrange vinyl, and upscale vinyl – all returned more than 76 percent of costs upon sale.
Similar to last year’s report, the least profitable remodeling projects in terms of resale value were home office remodels and sunroom additions, returning only 48.1 percent and 50.7 percent of project costs.

Regionally, cities in the Pacific states of Alaska, California, Hawaii, Oregon and Washington once again outperformed the rest of the nation in terms of remodeling costs recouped upon resale. The West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia also performed relatively well.

The regions that generally returned the lowest percentage of costs were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island and Vermont), East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin), West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota), and the Middle Atlantic (New York and Pennsylvania).

Golder commented that remodeling projects are just one of many factors that contribute to a home’s overall resale value. “As the first, best source for real estate information, Realtors® are experts in providing insight into what projects and investments will make a difference in your house. It’s important to consult with a Realtor® who can explain the variety of factors that affect a home’s value, such as location, condition of surrounding properties and the regional economic climate,” she said.

Results of the report are summarized in the January issue of REALTOR® Magazine. To read the full project descriptions, access national and regional project data, and download a free PDF containing data for any of the 80 cities covered by the report, visit www.costvsvalue.com. “Cost vs. Value” is a registered trademark of Hanley Wood, LLC.

Hanley Wood, LLC, is the premier media company serving housing and construction. Through four operating divisions, the company produces award-winning magazines and Web sites, marquee trade shows and events, rich data, and custom marketing solutions. The company also is North America’s leading provider of home plans. Founded in 1976, Hanley Wood is a $240 million company owned by JPMorgan Partners, LLC, a private equity affiliate of JPMorgan Chase & Co.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
# # #

More Help Ahead for Housing Market?

I don't mean to sound greedy, but our industry could use a little more help. Despite tax incentives to buy homes, many buyers and sellers are still shaken by last year's economic and employment issues -- especially since so many of those issues have followed us into 2010. I've often read that as the housing market goes, so goes the rest of our economy. I'm not sure if that's 100 percent true, but something needs to shake things loose, to give potential home buyers and sellers the confidence they need to take that first big step and call a Realtor.

A few days ago, the powers that be at the Federal Reserve gave us a glimmer of hope that they may make some moves in our direction. Please let me reiterate that I realize the housing market isn't the only one suffering; but, as a sales agent whose clients are her primary concern, it's the one I worry about the most.

Here's an article from the New York Times that discusses the Fed's plan:


The New York Times
January 7, 2010
Some at Fed See a Need to Do More for Housing
By DAVID STREITFELD and JACK HEALY

Despite extensive government intervention in the housing market, some policy makers at the Federal Reserve are worried that even more might need to be done.

The minutes of the Federal Open Market Committee’s mid-December meeting, released on Wednesday, reflected a lingering wariness about the strength of the recovery in light of high unemployment and substantial slack in the economy.

At the same time, unease is growing that a tentative comeback in the housing market could fall apart as a tax credit for home buyers expires and the Fed’s program to hold down mortgage rates comes to a close.

Concern over housing deepened Wednesday with the release of new data showing that long-term interest rates were rising rapidly from their historic lows, while mortgage applications to purchase houses were falling. Applications are now at their lowest level in 12 years.

Other signs of stress in real estate have become apparent in the last few weeks, although most economists say any downturn will be relatively mild.

If they are wrong, and the modest pace of economic growth slows or mortgage markets significantly deteriorate, “a few members” of the Federal Open Market Committee believe that “more policy stimulus” may be desirable, the Fed minutes said.

But one member of the panel took an opposite view, saying that the “quantity of planned asset purchases could be scaled back” because of continuing improvements in the economy.

Noting the contrast between “a few” and “one,” Michael Gregory, senior economist at BMO Capital Markets, projected a shift in policy.

“There emerged a definite skew towards more accommodation,” Mr. Gregory wrote in a research note.

The Fed has been buying $1.25 trillion of mortgage-backed assets to ease lending markets and keep longer-term rates low — a program that is winding down and scheduled to end by March 31.

The program was successful for much of last year, pushing mortgage rates below 5 percent, to levels not seen since the early 1950s. Many economists say the end of the program will push rates back up from a half point to a full point, adding to the cost of a house and diminishing the pool of buyers.

Emergency measures to stabilize short-term lending and other markets are also being scaled back and ended as the economy pulls itself out of a deep recession. The tax credit for home buyers, extended once by Congress, is scheduled to end on April 30.

The president of the Federal Reserve Bank of St. Louis, James Bullard, said in late November that the Fed should continue purchasing the securities.

“I have advocated to keep the asset-purchase program open but at a very low level, and wait and see what happens,” Mr. Bullard told Dow Jones Newswires. Mr. Bullard becomes a member of the Federal Open Market Committee this year. That committee is the Fed’s main policymaking body.

His view was quickly endorsed by the nation’s real estate agents, a potent lobbying force who were successful in getting the first-time buyer’s tax credit extended and broadened.

“The March deadline is artificial and should not hold firm,” said Lawrence Yun, chief economist for the National Association of Realtors. “Maybe we’ll need this stimulus until May or autumn.”

The Mortgage Bankers Association said rates rose in the last two weeks of December, to 5.18 percent from 4.92 percent. Meanwhile, applications for purchase mortgages fell.

Mortgage applications offer an imperfect glimpse into the state of the housing market. If many houses are being bought by speculators with cash — as is the case now — that activity is not reflected in the figures.

The numbers also tend to bounce around from week to week.

Nevertheless, the trend is sharply down. Applications are more than 25 percent below their level at the end of 2008, the banking group said.

The Fed left its interest rate target unchanged at levels near zero at its meeting, and the minutes indicated that most members believed inflation was not an imminent threat to the economy.

“They’re very anxious not to torpedo the stabilization we’ve seen in the housing market, but they don’t want inflation expectations to get out of hand,” said John Canally, an economist at LPL Financial.

“They’re walking a pretty narrow tightrope this year,” he said.


Copyright 2010 The New York Times Company

2009: Mixed Emotions

It's been a while since I've updated this blog. I'd like to say it's because I've been so darned busy selling homes that I just haven't had the time. And while I was quite busy for several months (I had 5 closings in April alone! and I moved in September), that really wasn't the reason for my blogging absence.

I've had a hard time defining my purpose here. Do I want to locate and provide information for my clients to help them understand the inner workings of the buying and selling process? Do I want to keep my readers up on the ever-changing market conditions, the ebbing and flowing of this crazy business? Or is it my goal to share my impressions and experiences with you so that you can get to know me better before you call on me to assist you? Maybe you're already working with me and just want to see what I'm writing about today -- is that what I'm trying to focus on? I'm leaning towards -- yes, yes, yes and yes.

I've seen some blogs that are too informal, too casual and chatty; and while I can see some value in that, it's important to me to be as professional as I can be, since I take my career very seriously. On the other hand, I really really like what I do; and I think that's really important to share, as well.

So you see my dilemma.

I titled this posting, "Mixed Emotions" for several reasons, some of which are now clear. But I also have those feelings because -- despite the crappy market conditions -- I've been blessed with the opportunity to work with some wonderful people this year and make a little money along the way.

This year hasn't been good a lot of Realtors ®. Many other professions are suffering, as well. But better times are ahead.

I'll be devoting more time here in the future. I'll try to keep a balance of informative postings with occasional narratives on something that happened to me that I simply wanted to tell you about. Let me know what you think.

This piece ran in today's (Dec. 10) St. Louis Post-Dispatch. Don't let the headline fool you; this is good news.

Home Values Decline

By Tim Logan

ST. LOUIS POST-DISPATCH

Thursday, Dec. 10 2009

The average St. Louis-area home lost 4.3 percent of its value in the past year,
but those losses are stabilizing.

So says Zillow, a Seattle-based real estate firm that sifts a wide range of
data to estimate the value of every house in many major real estate markets.
Its average estimate for metropolitan St. Louis in November was $141,100.
That's down half a percentage point from October, and 9.3 percent off its peak
of $155,600 in the first quarter of 2007.

But the good news, Zillow says, is that value declines are stabilizing. Some
parts of the country — markets such as Boston, Atlanta and Denver — have seen
their overall values increase in 2009. And losses in St. Louis were much less
sharp in 2009 than they were in 2008.

As for 2010, the group's chief economist was wary. He predicted that the
eventual end of the $8,000 tax credit for first-time buyers and the inevitable
rise in interest rates will create headwinds for housing next year. How strong
those winds blow remains to be seen.

100% Mortgage Loans are Still Available

The caveat is that these loans are only for homes in rural areas or in smallish communities. Below is an article from the St. Louis Post-Dispatch:

By Tim Bryant

ST. LOUIS POST-DISPATCH

Sunday, Feb. 22 2009

Amid the wreckage of the mortgage business nationwide, there's still a way to get a low-interest, government-backed home loan without putting up a penny for a down payment.

The catch, if it can be called that, is the borrower's new home must be in a rural area or a town of 20,000 or fewer people. But those towns may be in the suburbs, too, meaning that parts of the St. Louis region would qualify.

The consumer-friendly financing is offered by the U.S. Department of Agriculture's Rural Development program, which was established in 1991 to keep rural areas and small towns from emptying. The goal remains, but people shut out by the rest of the home-loan industry are finding their way to the USDA's program as a way to buy a house with nothing down.

Last year, the number of applicants nationwide reached 62,933, nearly double the previous year. While many of the program's 265,000 borrowers are in the Midwest, it backs $24 billion in home loans across the country as well as in Puerto Rico and U.S. possessions in the western Pacific.

"Basically, we became the only game in town in rural areas," said Randy Griffith, who runs the Missouri loan program from his USDA office in Columbia. "We're really having a run. One of the factors in rural areas is the affordable housing availability."

The program has become so popular that its funding of $6.9 billion last year has run out. For now, a congressional resolution is allowing the USDA to make "conditional" loan commitments, said Joaquin Tremols, the program's acting director.

Whether the financial stimulus package signed last week by President Barack Obama will provide more money for the program remains unclear. Tremols said he was waiting to hear how stimulus funds will be distributed. He touts the program's advantages:

— Private lenders approved by the government issue fixed-rate 30-year mortgages. No subprime, adjustable rate funny business here.

— Families may borrow 100 percent of a new or existing home's value, including mortgage closing costs.

— Earnings guidelines apply, but applicants may borrow up to 115 percent of the median household income in the county of their desired home. In most of Missouri and Illinois, a family of four with an adjusted annual income of up to $70,750 may qualify.

The program's foreclosure rate in Missouri is 1.38 percent, which is slightly below the state's overall rate, Tremols said. All of Missouri outside the immediate St. Louis, Kansas City and Springfield areas, plus a few smaller cities, is covered by the loan program. In the St. Louis area, part of St. Charles County and much of Jefferson County and the Metro East are eligible.

"There is a lot of rural area" in the United States, Tremols noted.

That includes Marthasville, where Julie Frankenberg and her fiancé, Mike Brinker, are getting a $125,000 slice of the USDA pie. For now, they are living separately with their parents, in Washington, Mo. But they are scheduled to close March 5 on a three-bedroom, two-bath house with a two-car garage in
Marthasville, across the Missouri River from Washington.

Frankenberg, 23, said she is thrilled to be able to buy a house. "It has a big, beautiful back yard with a fence," she said.

The couple got a 4.25 percent interest rate mortgage and a good price on the one-year-old home because a job relocation forced the previous owner to sell. "We actually got a heck of a deal on it," Frankenberg said.

The couple's banker, Sherry Wahle of the Bank of Washington, said the USDA program is "the only 100 percent financing product left on the market." Bank of Washington has made most of its USDA-backed loans in Franklin and Warren counties, Wahle added.

"People get a little concerned when they hear rural development," she said. "They think country."

But when other mortgage sources vanished as the lending market crashed, more prospective home-buyers turned to the USDA to see if they were eligible. Last year, the rural program guaranteed $277 million in home loans to 3,000 Missouri households — up $80 million from the previous year. Applicants go through a normal verification process, Griffith said, and they can qualify for a loan with what the USDA refers to as a "reasonable" credit history.

Brinker, 21, and Frankenberg were looking at houses when a real estate agent told them about the USDA program. They jumped at the chance to buy a house without having to come up with a down payment.

Frankenberg said she and Brinker are eagerly anticipating moving to their new home next month and getting married in October.

"We're just really excited," she said. "We're shopping for furniture now."

tbryant@post-dispatch.com | 314-340-8206

Understanding the Real Estate Stimulus

I know. I do know.

It can be confusing, wading through all of the newspaper articles about all of the elements of this new stimulus package. But the St. Louis Post-Dispatch published a piece yesterday (2/20) that summarized the 4 main points that will affect both home sellers and buyers. I'm pasting it below (this actually originated as a blog post, and I've included a link to that blog at the end of the article).

I hope this helps you and motivates you to take advantage of the tax credit and historically low mortgage rates. I'll be shocked (and thrilled!) if they get much lower.

Homes may not be selling for what they sold for a few years ago, but -- if you're looking to sell your current home and get into a different one -- you'll get a good price AND an exceptional interest rate. And that's a good thing.

According to Gibran Nicholas, Chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers, “There are four primary sections of the economic stimulus plan that will benefit home owners and buyers."

Benefit #1 - Expansion of Home Improvement Tax Credit

“The tax credit for making energy efficient home improvements is now 30% of the cost of the improvements up to a maximum of $1500,” Nicholas said. “This means that if the improvements cost you $4,500, you would receive a tax refund of $1,500 when you file your tax returns.” Eligible improvements include energy efficient exterior doors and windows, insulation, heat pumps, furnaces, central air conditioners and water heaters. “Generally, most modern improvements like windows, furnaces, and air conditioners meet the necessary standards for energy efficiency,” Nicholas said. “If you’ve been holding off on making some of these improvements, now is a great time to get a move on it - especially with all the great deals being offered.”

Benefit #2 - Expansion of First-time Home Buyer Tax Credit

The tax credit available to first time home buyers was increased from $7,500 to $8,000 for homes purchased between January 1, 2009, and December 1, 2009. Also, the credit no longer needs to be paid back as long as the buyers live in the home without selling it for at least 3 years. “The previous version of the credit expired on July 1, 2009, and required home buyers to pay the funds back over a 15 year time frame,” Nicholas said.

The income limitations remain the same ($75,000 for single tax payers claiming the full credit and $150,000 for married tax payers), as do most other qualification requirements. Also, the credit remains refundable. “This means that first-time home buyers who owe less than $8,000 in taxes for the year are still eligible for the full $8,000 credit when they file their tax returns, and the IRS will write them a check for the difference between $8,000 and their actual tax bill,” Nicholas said. “In fact, the credit can be claimed on your 2008 tax returns that you file by April 15 of this year, even if you buy the home in 2009.”

There is one catch, however: if you bought the home in 2008, the credit remains $7,500, and it still needs to be paid back over a 15 year time frame beginning in 2011 when you file your 2010 returns.

Benefit #3 - Higher Reverse Mortgage Loan Limits

The loan limits for FHA-insured reverse mortgages have been increased to $625,500 across the entire country - not just the higher cost areas. The previous limit was $417,000 across the country. “This is especially important because the FHA program is virtually the only game in town as private and jumbo reverse mortgage programs have nearly all evaporated,” Nicholas said.

This coincides with another little-known change in the reverse mortgage arena: the availability of reverse mortgages on home purchase transactions. “This is a fantastic opportunity for senior citizens to buy a new home and live mortgage payment-free without having to wait for their old home to sell,” Nicholas said. “Seniors could also use this strategy to buy a new home and turn the old home into a rental or otherwise wait for market conditions to improve before trying to sell the old home.”

Benefit #4 - $729,750 FHA and Conforming Loan Limits Restored in High Cost Areas

“The $729,750 maximum loan limit had been in force throughout 2008, but was reduced to $625,500 in 2009,” Nicholas said. “The economic stimulus plan restores the $729,750 maximum. This makes higher cost homes more affordable - especially in the coastal housing markets that tend to have higher than average home values.”

For related information on how US debt levels are affected by the latest stimulus plan, please visit Gibran Nicholas’ blog at http://gibrannicholas.com.

A bit more detail ...

For additional clarity on the new tax credit, here are some side-by-side comparisons that will spotlight the changes from the previous one. CLICK ON THE CHART TO THE LEFT TO SEE IT FULL-SCREEN.

Finally -- Something to Celebrate!

On Friday the 13th, the U.S. Senate finally passed Pres. Obama's American Recovery and Reinvestment Act of 2009, with $787 billion in funding to stimulate our economic recovery.

Included in this package is $6.6 billion to fund a first-time home buyer tax credit aimed at jump-starting home sales. This program expands and alters the previous $7,500 offering for some first-timers (there are income limits), but this new one does not have to be repaid; and it gives buyers a gift of up to $8,000, or 10 percent of the sales price, whichever is less.

The program is available to qualified buyers through Dec. 1, 2009.

While we didn't get the $15,000 credit we had hoped for, this is good news. Virtually all lenders and buyers I've spoken to recently have expressed relief that Congress recognizes the need for such an incentive and has moved to alleviate the housing slump, which has affected so many other areas of economy.

No doubt many home shoppers who have been on the fence about moving ahead towards the purchase of a home can now take advantage of this tax credit which will make the home buying process more rewarding than usual.

If you are one of those lookers who is now ready to jump into the market, contact your lender for more details.

In these gray days of late winter, I am so glad to be able to share this good news. Not even a trip to St. Thomas can beat this!

Good news for these communities

An interesting article:

America's Fastest-Growing Towns
In the last decade, there have been hundreds of communities in every state that have seen significant growth in new homes.

Many of them are outside the urban core and often far from established centers of employment. In a new report, BusinessWeek poses the question: Will the current economic slowdown put an end to these communities?

"The boomtowns of this decade are not booming so much in the last couple years," said William H. Frey, a demographer at the Brookings Institution in Washington, D.C., tells the magazine. "It's possible those places will come back again. A lot depends on where the economy grows and where the new knowledge centers are."

BusinessWeek worked with Gadberry Group, a business location company, to identify communities in every state that have experienced the largest growth. The results were published in a report called "America's Biggest Boomtowns."

The top 10 fastest-growing communities:

1. Summerlin South, Nev., 618 percent
2. Katy, Texas, 168 percent
3. Wentzville, Mo., 160 percent
4. Spring Hill, Tenn., 157 percent
5. South Carolina, 156 percent
6. Brighton, Colo., 153 percent
7. Wesley Chapel, Fla., 151 percent
8. Lehi, Utah, 110 percent
9. Canton, Ga., 99 percent
10. Oswego, Ill., 98 percent

Source: Business Week, Prashant Gopal (02/06/2009)

Tick tock, tick tock ...

No word yet on the final outcome of the stimulus package. Good governing takes time. But here are a few clarifications on the impact of it on real estate (thanks to REALTOR Magazine):

The $790 billion stimulus package hammered out by House and Senate conferees late yesterday (Thurs. 2/12) increases the home buyer tax credit to $8,000, from $7,500, and drops the repayment feature for buyers who hold on to their property for at least three years.

The NATIONAL ASSOCIATION OF REALTORS ® has sought removal of the repayment requirement because it discourages buyers from taking advantage of the tax credit. The three-year minimum holding period is a safeguard against speculators' use of the credit.

The legislation also extends the effective date of the credit to December 1 from June 30, and extends eligibility to borrowers who buy their home with the help of state or local financial assistance that comes from the proceeds of tax-exempt mortgage revenue bonds.

The credit remains open only to first-time buyers (those who haven't owned in at least three years) and some income eligibility restrictions apply, but those are unchanged from the existing program.

Other provisions reportedly in the bill that could help housing markets and communities include:

• FHA and conforming loan limits. Specifics have not been released but reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be available at the discretion of the secretary of the U.S. Department of Housing and Urban Development.

• Foreclosure mitigation and neighborhood stabilization. Funding for states and localities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized. Some news reports put the funding level at $2 billion.

• Rental assistance. Up to $1.5 billion to provide short-term rental assistance and other aid for families during the economic crisis.

• Transportation infrastructure. Up to $29 billion for highway construction projects, $8 billion for rail projects, and $5 billion to weatherize low-income homes.

• Rural housing development. Increased funding for the Rural Housing Service direct and guaranteed loan programs.

• Low-income housing grants. Allow states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing, including those with or without tax credit allocations

• Tax-exempt housing bonds. Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds

• Energy efficient housing. Grants for energy retrofits for federally assisted housing (Section 8), funding for energy efficiency and conservation block grants to states, and Increases in the residential tax credit through 2010 for certain energy efficient upgrades.

Source: NAR, AP, Washington Post, New York Times, Bloomberg, and Wall Street Journal.

Update on the Home Buyers Tax Credit

Well, it looks as though home buyers will not be getting the $15K tax credit that we had hoped for, although the final decision has not been made. As it stands now, we're looking at an $8K credit (up from the current $7,500), which -- I agree -- is better than nothing. There is a lot at stake in this spending bill.

Here's an excerpt from today's Wall Street Journal:

"Home buyers who hoped for a $15,000 tax credit to buy a new home, as promised by the Senate, will be disappointed. A proposed $35 billion credit to support home sales was jettisoned in favor of a more modest $2 billion to $3 billion provision."

Even this $8K amount is still being negotiated in Washington, so that may change, as well.

Let's hope for the best.

New tax credit for home buyers?

While Congress continues to debate the merits of the new Economic Stimulus Package, here is a message that our Real Estate Board office sent us last week. Although this tax credit may not make it into the final package fully intact, we're all keeping our fingers crossed that our clients will benefit from some form of an improved tax credit:

From: NAR Government Affairs

RE: Senate Action on Stimulus Bill

Date: 5 February 2008

Last evening the United States Senate unanimously passed a bipartisan amendment, offered by REALTOR Champions, Senators Johnny Isakson (R-GA) and Joe Lieberman (ID-CT) to the Economic Stimulus Bill, creating a $15,000 tax credit to individuals who purchase a home in the next year.

Specifically, the Isakson-Lieberman amendment to the pending economic stimulus bill would provide a direct tax credit to any homebuyer who purchases any home. The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less. Purchases must be made within one year of the legislations enactment, and the tax credit would not have to be repaid.

The amendment would allow taxpayers to claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principle residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment.

While the final details of the Stimulus Bill are still being debated, this amendment represents a tremendous step forward in NAR's efforts to stabilize housing markets around the nation. Because of the efforts of REALTORS, we expect the final Economic Stimulus Bill will contain several major housing provisions. We will continue to update you as the bill progresses through the legislative process.



Greater Gateway Association of REALTORS
10 Ginger Creek Parkway
Glen Carbon, IL 62034
P: 618-692-8300 | F: 618-692-8307
www.gatewayrealtors.com

Condo with Panoramic Views of Mississippi & Illinois Rivers

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Listing price: $199,000.
MLS: 2814847

For more information, go to www.suehurleyhomes.com or call 618.960.3671.

Listing agency: RE/MAX Express, 700 Taylor Ave., Godfrey, IL. Office phone 618.467.1200.

Estate-Sized Home in the Country on 5 Acres

If you want privacy in a country setting with easy access to Godfrey, Grafton and Jersey County, this home is for you. This custom-built, one-owner home sits on 5 acres, of which 3 acres are wooded. Gas fireplace; eat-in kitchen with pantry and bay window; oak floors, railing and banister. Two Amish-built sheds are included on the property which also features a spring-fed creek and a nice flat lawn with electric hook-up for your camper or pool. Norweco septic. Main-floor and lower level laundry hook-up.
Listing price: $239,900.
MLS: 2815982

For more information, go to www.suehurleyhomes.com or call 618.960.3671.

Listing agency: RE/MAX Express, 700 Taylor Ave., Godfrey, IL. Office phone 618.467.1200.

Lot 26, West Ridge at Palisades, Grafton, IL

With a seasonal view of the Mississippi River through the hardwood trees on the hills, who wouldn't want to build a home on this 1.12-acre lot?

Located in the prestigious West Ridge at the Palisades, atop the limestone bluffs of Jersey Co., Illinois, this single-family building lot offers an opportunity that cannot be matched.

Listing price: $35,900.

MLS: 2801369

For more information, go to www.suehurleyhomes.com or call 618.960.3671.

Listing agency: RE/MAX Express, 700 Taylor Ave., Godfrey, IL. Office phone 618.467.1200.

616-618 E. 7th St., Alton, IL

Why pay rent when you can earn rent? This 3-unit, all-brick building is a great investment that will help you build equity fast.

The 3-bedroom townhome features tall ceilings, hardwood floors, large windows, 2 baths and tons of old-world character. The two 1-bedroom apartments mirror the floor plan of the townhome.

Listing price: $119,800.

MLS: 2814457.

For more details, go to www.suehurleyhomes.com or call 618.960.3671.

Listing office: RE/MAX Express, 700 Taylor Ave., Godfrey, IL. (618)467.1200.

23239 Timber Lane, Elsah, IL

You'll have lots of room here to build or expand on the 1.5 acre property in Elsah that includes 4 parcels. A Fleetwood mobile home could keep you cozy while you build on this partially wooded lot, while a 5-year-old garage with a 3/4 bath could house your boat, your RV, or your business. Or it could easily be converted into a home for rental.

Seller will divide properties: Two lots with mobile home now listed for $25,000 (MLS 2818544); two lots with garage is listed at $50,000 (MLS 2818546).

Owner financing is possible.

This property is located in Elsah, IL, off the Great River Road (Illinois Route 100).

Asking price: $72,000. MLS: 2809985.

Go to www.suehurleyhomes.com for complete listing information. Or call me at 618.960.3671.

Listing office: RE/MAX Express, 700 Taylor Ave., Godfrey, IL. (618)467.1200.

2606 Hunters Ridge, Edwardsville, IL

This truly amazing home boasts 5 bedrooms, 4 baths and a remodeled kitchen with Brazilian granite counters and glazed maple cabinetry. If your family enjoys entertaining in style, this home is for you.

This property is located in the Hunters Point development, close to Southern Illinois University Edwardsville and within easy access to I-270 and downtown St. Louis.

Asking price: $244,900. MLS: 2812670.

Go to www.suehurleyhomes.com for complete listing information. Or call me at 618.960.3671.

Listing office: RE/MAX Express, 700 Taylor Ave., Godfrey, IL. (618)467.1200.