To Help Sell Houses, Temps Are Moved In; Hanging Baby Photos

Temporary occupants bring their own furnishings and insurance to empty houses, and maintain the home, lawn and pool. They pay utilities and a monthly fee well below market rent. "They are not tenants, because they are instrumental in marketing the property," says Quality First's owner Mary Heineke.

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US house prices fall 18.6% in February

House prices in the largest US cities tumbled further in February but for the first time in 16 months the rate of decline eased from the prior month, offering a glimmer of hope that the stricken market could be beginning to bottom out.

The 18.6 per cent drop in house prices followed a 19 per cent year-on-year decline in January, a record, as prices fell steeply in a wide array of cities including Cleveland, Charlotte, New York and Washington, according to the closely watched Case-Shiller index, released on Tuesday.

Mortgage Applications Increase 4.7%

Mortgage applications filed last week rose a seasonally adjusted 4.7%, increasing even as interest rates charged on home loans experienced an upturn from the week before, the Mortgage Bankers Association said.

Filings to refinance existing loans increased 3.2% for the week ended April 3 compared with the week before, while mortgage applications to buy homes rose a seasonally adjusted 11.1%, also on a week-to-week basis, the MBA's latest survey showed. The survey covers about half of all U.S. retail mortgage applications.

The four-week moving average for all mortgages was up 13.3%, mainly reflecting strength in refinancing activity, according to the Washington-based MBA.

Overall, applications last week jumped an unadjusted 67.6% compared with the same week in 2008.

The MBA's latest results show a continuation of the trend seen recently as more people test the waters in the aftermath of the government's moves to stimulate activity in the housing market.

Buy this year and you can receive a tax credit up to $8,000

With this credit, eligible homeowners can claim 10% of the purchase price of the home, up to $8,000, or $4,000 for married individuals filing separately. See form 5405 on IRS.gov.

When do I need to purchase to qualify?
If you buy a home between Jan. 1 and Dec. 1 this year and close escrow during these dates, you will qualify for a tax credit up to $8,000 - as long as it is your primary residence and you meet the simple requirements.

How does the law define "first-time homebuyer"?
The law defines "first-time homebuyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase.

What are other requirements to qualify?
All U.S. citizens who file taxes are eligible to participate. An income limit of $75,000 a year for individuals and $150,000 a year for joint filers also applies.

How do I apply for the credit?
Taxpayers should use IRS Tax Form 5450 to claim the first-time homebuyer tax credit.

Does the credit have to be repaid?
No. Unlike a similar tax credit passed in 2008, this $8,000 tax credit does not have to be repaid to the IRS.

The amount of the credit starts phasing out for taxpayers who have a modified adjusted gross income of more than $75,000, or $150,000 for joint filers. But the credit is reduced to zero when modified adjusted gross income reaches $95,000, or $170,000 for joint filers. 

There's a chance you'd also have to pay the credit back. According to the IRS, if you sell your home in three years or less after the date it was purchased, some or all of the credit has to be paid back at the time of sale.

Frequently asked questions about the tax credit can be found at the National Association of Realtors' and the National Association of Home Builders' Web sites. See NAR's site. See NAHB's FederalHousingTaxCredit.com. Also, visit the IRS's first-time home-buyer page.