Real Estate Market

First-time buyers rushed to purchase homes in November, providing an extra boost for housing markets across the country. According to the National Association of REALTORS (NAR), existing homes sales -- including single family, condominiums, townhomes and co-ops -- were up 7.4 percent to an adjusted annual rate of 6.54 million units for 2009. NAR also reported that 51 percent of November home purchases were made by first time buyers, up from 50 percent reported in October.

NAR chief economist Lawrence Yun sees more activity on the horizon. "We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. In all, 4.4 million households are expected to claim the tax credit before it expires and balance should be restored to the housing sector with inventories continuing to decline."

Mortgage backer Freddie Mac reported an average commitment rate for a 30-year, conventional, fixed-rate mortgage of 4.88 percent in November. This is down from over 6 percent in November 2008, and is the second lowest interest rate on record since the reaching 4.81 percent in April 2009.

Congress Extends Tax Credit

The Extended Home Buyers Tax Credit offers current homeowners and first-time home buyers alike an incredible tax-saving opportunity when they buy a home through April 30, 2010. First time buyers, who haven't owned a primary residence in the past three years, are eligible for a tax credit of 10 percent of a home's purchase price, up to a maximum of $8,000. Current homeowners, who are vacating a principle residence that they have lived in for 5 consecutive years of the past 8 are eligible for a tax credit of 10% of a home's purchase price, up to maximum of $6,500.

The following conditions apply:

• The tax credit is only awarded on homes purchased for $800,000, or less
• Full tax credit is available to buyers earning up to $125,000 a year, or $225,000 for married couples filing jointly
• Partial tax credit is available to buyers earning between $125,000 to $145,000, or for married couples earning between $225,000 to $245,000.
• Under the rules, as long as a written binding purchase contract is in effect on April 30, 2010, the buyer has until July 1, 2010 to close.

The tax credit is a dollar-for-dollar reduction in the buyers tax liability, and does not have to be paid back as long as the buyer remains in their home for three years or more. This is a once-in-a-lifetime offer to have Uncle Sam help you buy a house. Don't let this opportunity pass you by!

Are You Ready For Winter?

Winter is one of our favorite times of the year! It's often easy to overlook your home's needs with so much going on. Here is a simple checklist of items that can save you money through the winter:

• Check for leaks and drafts around the house. Replace weather stripping and re-caulk around doors and windows. Drafty doors and windows will cool off the house and cost you money in heating bills.
• Inspect your attic's insulation. Heat rises so adding good insulation can keep the heat from escaping.
• Check your heating system. Sometimes something as easy as replacing your filter or having simple maintenance done can save on heating costs.
• Consider changing from standard light bulbs to energy saving bulbs. Winter uses a lot of your electricity so even saving a little here and there will help.

Whether you live in a warm or cold climate, take this opportunity to inspect your home systems. You'll be money ahead in the long run!