There is hope on the housing front as the sales were at their highest in 26 years, in September. This is mostly due to the $8000 first time buyer tax credit. Buyers are trying to beat the deadline and get their credit while they still can. The Obama Administration implemented the tax credit in hopes of stimulating the housing market, in turn causing the economy to take a turn for the better.
This still does not mean that the prices of homes are on the rise. The price of homes is still very low, due to the flood of foreclosures and short sales on the market. However, this has caused the amount of unsold homes on the market to decrease, since more and more people are able to afford the homes that are out there. If qualified, a buyer can purchase a home for practically nothing and even in some cases without a down payment.
I think that this tax credit is definitely helping on the home front. Some experts may disagree saying that the tax credit does not have the effect on the housing market, like everyone thinks. I think without it, buyers would think that they cannot afford to purchase a new home. This gives the buyers options, and an advantage of becoming a homeowner when they thought it was impossible. Since the economy pretty much revolves around the housing market, this helps stimulate the economy in a way we never thought possible. Allowing more people to purchase homes is a great thing. The Government has been trying to come up with a solution to this ongoing problem and it seems that this just may be the answer.
Anyone can qualify, as long as you haven’t purchased a home in the past 3 years, and of course have sufficient income and credit. Lenders still won’t loan money to just anyone. That is still the hardest process in purchasing. Most banks simply don’t have the money and don’t want to risk lending to someone who is not going to pay their mortgage
Although we are not completely in the clear, it is definitely safe to say we are on our way to recovery with sales across the country up about 24 percent from January. Now if we could only get the prices of homes on the rise, then we would be back to where we were say 4 years ago or pretty close to it.
Since the tax credit seems to be so effective on the current market conditions, the government is trying their best to extend it even longer. They are seeing a positive shift in the market and buyers are loving it, and trying to get escrow to close as quickly to the November 30th deadline as possible.
If you are a buyer who has just recently learned of this Tax credit, consult your lender and Real Estate Agent today and find out if you are qualified to receive it. You may even be in the position to purchase a home with NO money down. Doesn’t that sound great? I think so!