Effective January 1, 2009, first time homebuyers of a principal residence may benefit from the $8000 tax credit. The credit does not require repayment. The credit will be claimed on a tax return to reduce the purchaser’s income tax liability. If the credit amount remains unused, then the unused amount will be refunced as a check to the purchaser. These helpful links will give you more information about the program, such as income limits, and revisions to the 2008 program.
National Assoc. of Realtors Explains First Time Home Buying Credit
Distressed sales – foreclosures and short sales – accounted for 45 percent of transactions in the fourth quarter in Metro Areas, according to NAR, dragging down the national median existing single-family price to $180,100 or 12.4 percent below the fourth quarter of 2007. The median is where half sold for more and half sold for less.
South Florida is one of the three major metro areas where single family home prices have seen the steepest decline and where bargain hunters are being drawn. However, each neighborhood has it’s own adjustment and not all are giving big discounts. Local Realtors will help buyers determine how to effectively determine property values based on the number of distressed sales, discounts, and market conditions. Buyers can no longer assume that all things are equal without further investigation.