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I ssu e 10, V olu me 34 / S e pt e mbe r 11, 2009
Get that Tax Credit before it Gets Away The Week Ahead -> The “Keys”
By: Tim McLaughlin - Housing and inflation data dictate the week
2009 has been a year where we have seen a massive
influx of first time homebuyers across the country Date Economic Release Prediction Last
purchasing homes, and claiming their tax credits,
9/15 PPI (MoM) 0.8% -0.9%
according to new government data released last Friday. So
far, nearly three hundred thousand people have claimed 9/15 ex Food/Energy 0.1% -0.1%
the tax credit after filing an amended 2008 tax return,
according to a Treasury Department report on the status of 9/15 PPI (YoY) -5.3% -6.8%
the Recovery Act. And the Treasury figures more than 9/15 ex Food/Energy 2.2% 2.6%
likely sharply underestimate the real number of people who
have taken advantage of the credit because many 9/15 Advance Retail Sales 1.7% -0.1%
homebuyers have not yet claimed it on their tax return. 9/15 less Autos 0.4% -0.6%
According to a recent National Association of Realtors 9/15 less Autos and Gas 0.1% -0.4%
(NAR) survey, over one million first time homebuyers have
9/15 Empire Manufacturing 14.00 12.08
used the credit. As we know, eligible first time homebuyers
can claim the credit of up to $8,000 (or 10% of the home's 9/15 IBD/TIPP Eco Optimism - 50.3
value, whichever is less) on either an amended 2008
9/15 Business Inventories -0.8% -1.1%
return or on their 2009 return. NAR expects that number to
grow to just shy of two million by the time the tax credit 9/16 BB Global Confidence - 58.12
expires on November 30, 2009.
9/16 MBA Mortgage Applications - -
The discrepancy between the Treasuries numbers and
9/16 CPI (MoM) 0.3% 0.0%
estimates by NAR probably stem from the fact that the
majority of eligible first time homebuyers have opted to 9/16 ex Food/Energy 0.1% 0.1%
wait to file for the credit on their 2009 returns, which they
9/16 CPI (YoY) -1.7% -2.1%
can file in early 2010.
9/16 ex Food/Energy 1.4% 1.5%
Applying for the credit is as easy as filing income taxes.
First time homebuyers just have to claim it on their return, 9/16 CPI Core Index SA - 219.54
and no other forms or papers have to be filed. 9/16 Industrial Production 0.7% 0.5%
The National Association of Realtors estimated an extra 9/16 Capacity Utilization 69.1% 68.5%
350,000 sales will occur this year, solely because of the
9/16 NAHB Housing Market Index 19 18
credit.
9/17 Housing Starts 590K 581K
So the question everyone is asking is will the tax credit
9/17 Building Permits 580K 564K
get extended into 2010, or do we only have 80 days
remaining to find a home, procure a mortgage, and close 9/17 Initial Jobless Claims - -
the transaction to take advantage of the tax credit?
Confused? Have questions? Need help? Ask your 9/17 Continuing Claims - -
Weichert Realtor and Weichert Gold Services team for 9/17 Philly Fed Survey 8.0 4.2
help! We can make the process painless and easy.
Weichert Gold Services. Real Estate, Mortgage, Insurance, Title, Home Connections. We Do It All For You.
At the date of this printing all information is deemed reliable but not guaranteed. This publication is a service to our clients and friends. It is designed only to give general information on the
topics actually covered. It is not intended to replace tax, legal or financial advice, for which you are encouraged to seek a competent professional advisor. Weichert Financial Services
Executive Offices: 225 Littleton Road, Morris Plains, NJ 07950. 1-800-829-CASH. An Affiliate of Weichert, Realtors®. Licensed Mortgage Banker with State Department of Banking: NJ, NY, CT,
and PA. Licensed Lender: DE, MD, VA, DC, AK, TX, and WV. An Equal Housing Lender.