Springtime house hunters out early thanks to tax credit

January 21, 2010 @ 2:28 pm
Filed under: Local Economy, Tax credit
Tags: ,

The springtime spurt in home buying may hit before the snow melts this year as buyers scramble to meet an April 30 tax credit deadline.

The spring buying season typically takes off in March and runs through May. But buyers who want to claim this year’s tax credit — up to $8,000 for first-time buyers and up to $6,500 for repeat buyers — must have signed purchase contracts by April 30. And they have to complete the deal by June 30.

“I expect the buying season will be moved up,” says Jim Gillespie, CEO of Coldwell Banker. Sales “are going to take off in February and March and really take off in April. … My concern is that the move-up buyer hasn’t thought what they need to do. Their window is really short. They have to coordinate closing dates.”

The average time it takes to get a home loan processed is about eight weeks now — two weeks more than it used to be, according to the National Association of Realtors.

The tax credit’s impact on 2010 home sales is uncertain. Some economists expect the credit to pull sales that would have occurred later in the year into the first half.

“The tax credit will absolutely have an effect,” says Pete Flint, CEO of Trulia, a residential real estate search engine. “It is going to shift demand from the later part of the year to the first part. January and February will be very strong. The next three months, there will be a surge in demand.”

“I’m actually in the middle of house shopping, and I decided to do it now so that I could get the $8,000 tax credit,” says Amity Gay, 26, who’s looking for a cottage-style house in Tallahassee.

Sellers should be prepared to appeal to first-time home buyers, who still make up the majority of buyers, according to Pat Lashinsky, president and CEO of ZipRealty.

And buyers should expect rising prices in some markets, including San Diego, Dallas, Minneapolis, Chicago and Washington, D.C.

At MetLife Home Loans, buyers are being preapproved now for new housing developments; an increase in demand is being attributed to the expanded tax credit.

“Our spring market got moved up at least two months because of this,” says Kent Geschwender, branch manager.

The tax credit was scheduled to expire on Dec. 1, 2009, but was extended and expanded by Congress.

Source: USA Today
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The clock is ticking on the first time buyer incentive

September 29, 2009 @ 1:47 pm
Filed under: Hampstead real estate, Local Economy, Local News
Tags: , , ,

The clock is counting down and there is now less than three months left to take advantage of the $8,000 first time home buyer tax credit. Just as a reminder, you have to close on your home by November 30th to qualify, barring any further action or extension from Congress. On that same note I would highly encourage any and all readers to write your Federal Legislators and encourage them to extend this all-important tax credit that is helping to bring our economy back to profitability. More and more people have bought property in the past few months. Year to date there have been 1,584 homes sold in New Hanover County and out of that total, 808 have been homes sold at $200,000 or less, which is the most common price range for first time homebuyers that qualify to receive the $8000 tax credit. All told that is $117,724,628 of real estate sold in that price range, all of which is helping to bring about a positive change in our economy in the housing sector. So please, take an active interest in this very important part of our Countries future and help us get this extended.

Now for a look at the mortgage market where rates are still hovering at around or slightly over 5% for a 30 year fixed loan. Another option that can be good for many people is an Adjustable Rate Mortgage or ARM. Rates on ARMs are incredibly low right now. A person buying a home and wanting to obtain a 5 year ARM can expect a rate of 3.75% fixed for the first 5 years with a 1% origination fee. Yes…3.75%! That translates to a principal and interest payment of only $926.23 on a $200,000 loan!. That is really quite a deal and for many can be a great way of getting into that first home, and then of course turn around and get a nice $8,000 check from the government.

Source: Michael Lopez -Alpha Mortgage40

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