The Franchise Tax Board announced on Monday an interim extension of the California Tax Credit for New Home Purchases. This extension will likely extend the application period for tax credit requests for another week or two. The details of the extension are outlined in the FTB press release below:

State’s New Home Tax Credit Going Fast

Released: June 22, 2009

Sacramento –The Franchise Tax Board (FTB) announced today that the $100 million allocated by the state in new home tax credits will soon be gone.

As of June 17, 2009, FTB had received more than 9,800 applications claiming nearly $95 million. Because some of these applications are duplicates, revisions, or invalid, FTB plans to accept 12,000 applications. This will ensure enough valid applications will be available to allocate the full $100 million credit. However, FTB will only issue approved credit certificates until the $100 million is exhausted.

When 11,000 applications are received, FTB will update its Tax Credit for New Home Purchases web page at www.ftb.ca.gov each business day with the new totals. Once FTB receives 12,000 applications, the fax service will be disconnected.

This tax credit is available for qualified buyers who on or after March 1, 2009, and before March 1, 2010 purchase a qualified principal residence that has never been occupied. The buyer must reside in the new home for a minimum of two years immediately following the purchase date. To apply, an Application for New Home Credit must be completed by the buyer and seller within one week after the close of escrow and faxed by the escrow person to FTB at 916.845.9754.

To expedite the processing of applications, qualified buyers are reminded to: submit only one application per new home purchase, only send in the application after escrow closes, and complete the application carefully and accurately. Applications received before escrow closes will be denied.

FTB will continue to report the certificates issued on a weekly basis until the full $100 million has been allocated. FTB expects to complete processing all certificates in August. Each applicant will receive a notification indicating the amount of credit allocated or denied.

In addition, the California Building Industry Association is working with the state legislature to modify the Tax Credit bill and allow the FTB to make full use of the allocated credit amount. The timing of this new legislation is critical to keeping the Tax Credit program up and working. California home builders are touting the successes of the first bill and looking to our elected leaders to continue a “real stimulus plan” that provides new home buyers with incentives to put the construction industry back to work. Independent financial analysis shows the Tax Credit generates approximately $16,000 of revenue to the State and $3,000 of revenue locally for each $10,000 credit authorized. This is a stimulus bill that makes money and puts people back to work!

Stand by for more up to the minute news on the possible extension of the California Tax Credit for new home purchasers!

]]> http://blog.brookfieldsd.com/tax-credit-extension-in-the-works/feed/ 4 http://blog.brookfieldsd.com/the-sun-is-rising-again-at-morningstar-ranch/ http://blog.brookfieldsd.com/the-sun-is-rising-again-at-morningstar-ranch/#comments Fri, 01 May 2009 21:28:19 +0000 Steve http://blog.brookfieldsd.com/?p=501 New home sales in Southwest Riverside County are beginning to show real life again, specifically, in the French Valley area! Sales activity at MorningStar Ranch has dramatically improved over the past month. Buyer prospects are increasing weekly and new homes are being sold rapidly. What is driving this market change?

Well, first and foremost the $10,000 California Tax Credit for new home purchases have brought buyers to the communities of Veranda and Ironwood at MorningStar Ranch. Coupled with an opportunity for many buyers to qualify for the $8,000 Federal Tax Credit, some new homeowners are looking at up to $18,000 in future tax credits for buying a home today!

Additionally, many new home buyers have tried to participate in the “foreclosure market” and been treated poorly. We are hearing from a number of our new home buyers that they made multiple offers on foreclosed homes and never heard back from the bank or the broker. They have also told us about the deplorable condition of many of the foreclosed homes they looked at and when they added up the costs to bring the home back to “livable condition”, they were discouraged by the whole process. Then they heard about the California New Home Tax Credit and found out it doesn’t apply to foreclosed home purchases! Their disappointment was complete.

MorningStar Ranch Homeowners

Now, they are in the new home market and they have found a refreshingly different approach to buying a home. They can select their floorplan, their lot, their flooring, countertops and cabinets! They receive assistance with their purchase process, their loan process and their escrow. They receive a warranty for the new home they purchase and they get up to $10,000 in California Tax Credit! If they qualify for the Federal Tax Credit, they can receive an additional $8,000!

With 8 sales in the last 3 plus weeks, buyers are making their dreams a reality with a new MorningStar Ranch home. The recent sales activity has also prompted Brookfield Homes to start construction on nine more homes! This means a better selection on the floorplans and options that buyers are looking for. Priced from the low $300k’s, with generous builder incentives, and coupled with historic low mortgage rates, these new homes are a tremendous value for today’s cost conscious home buyer.

Stop in and take a look at our award winning homes and let the professional sales counselors show you how easy and affordable a new home in Riverside County can be. Then one day soon, you could be watching the sun rise at your very own home in MorningStar Ranch.

WOW!

Wow! I counted four newspaper stories yesterday about the strengthening home sales market in San Diego. I think that is a record … well, at least since 2005!

Consumer confidence is making a comeback. Thanks to the re-surging stock market, the declining number of weekly job losses and the strong earnings coming out of the banking and industry sectors, consumers are starting to listen to some good news, instead of the avalanche of doom and gloom. Lower fuel prices, lower food prices and the firming dollar have made imports less expensive and stretched the weekly paycheck a little further.

Housing inventories are down, down to numbers the experts call “a balanced market”. MLS listings are near 10+ year lows. New home projects and inventories are near 15 year lows. And, while the foreclosure numbers are beginning to climb again (thanks to the end of a 90 day imposed hiatus), banks are being much more realistic about their pricing and about the number of homes they will release in a neighborhood at any time. The result is we no longer have an overwhelming buyer’s market. The market is returning to a balanced condition.

Pricing has stabilized. Whether you look at things like the Case-Schiller Index or MarketPointe Realty reports or the Association of Realtors analysis, they will all tell you the same thing. We are on the bottom, and in some areas, we are seeing price increases! Neighborhood brokers will tell you that buyers have gotten frustrated with short sales and foreclosures. Multiple offers and lack of communication regarding the status of any offer has defeated a lot of “bargain hunters”. Meanwhile, the California Tax Credit and the Federal Tax Credit for purchasing new homes have gained tremendous momentum and given buyers alternatives with equal or better financial results.

So, where does it go from here? With confidence rising, inventories falling and prices stabilized, buyers will enjoy a run of opportunity, fueled by low interest rates and eager sellers. However, that run could be short lived as the general home buying population gets comfortable with the market change. While all these numbers are turning positive, we are still selling far fewer homes on a monthly basis than we need to sell to provide housing for our growing population and to balance a traditional supply and demand market. If the demand side moves up and supply can not stay equal, then pricing pressures will begin to impact the market.

If you are considering a new home, now is a great time to act. The stimulus for buying a home will not last forever and the supply of homes is quickly decreasing. Visit a local Brookfield Homes community and let our professional sales counselors help you understand the market and they will show you what a great deal you can make today … a deal that may not be available tomorrow!

The California Tax Credit for a New home purchase is HOT!

In the first 13 days of the California Tax Credit for buying a New home, 1,188 people have submitted an application to the Franchise Tax Board. Their total credit request is almost $11.6 million! If this pace holds true, buyers of New homes in California will exhaust the State’s allocation of $100 million in total tax credit by July of this year!

Is that a surprise? Look at the historic low interest rates, the Low pricing on New homes and the increased loan amounts allowed under Fannie, Freddie, FHA and VA. It all adds up to some of the best affordability rates seen in California in a long time! Now is a great time to buy a New home!

Tax Credits are Hot!

And, if you are a first time home buyer, with a joint total income of $150,000 or less, you may also qualify for the Federal Tax Credit of $8,000! Please visit your local Brookfield Homes sales office and let our professional Sales Counselors help you make a great deal today!

Why? Because Tax Credits are Hot!

$10000 CA Tax Credit

The American Recovery and Reinvestment Act brought us an $8,000 Federal Tax Credit and higher loan limits.

The $10,000 California State Tax Credit came from SB 15 and was part of the State Budget compromise.

Put these programs together and you may be eligible to receive up to $18,000 in State and Federal Tax credits along with a higher conforming loan amount. Buyers are beginning to understand the potential of these stimulus packages.

In the first three (3) days of the $10,000 California State Tax Credit, the Franchise Tax Board received over 170 requests for certification of the tax credit. The amount requested was over $1.7 million! That’s a lot of buyers, paying a lot of attention to the new stimulus legislation!