Have you been wondering when you should get in the real estate game? Are you waiting for the “bottom” of the market? I have to admit, I’m a Realtor, and I don’t know where the bottom of the market is. I won’t know until after it’s no longer at the “bottom” and prices have risen. But the incentives are there now to make your decision a little easier. See the article below for someone else’s take on it.
Approaching Expiration of Homebuyer Tax Credit Plus Low Prices and Interest Rates Mean It’s a Good Time to Buy
(CBS) The White House says the new mortgage relief plan announced late last week will help homeowners struggling to refinance even if they owe the bank more than the house is worth. Meanwhile, a homebuying incentive already in place may soon start paying off, as CBS News correspondent Elaine Quijano reports.
Steve and Patricia Kuczek are on the fence…
“What we’re looking at, with the tax credit, if this is the time, we should either remodel or go out and look for and buy something new,” Steve Kuczek said.
For homebuyers in good financial shape, this could be the best spring in years.
The federal tax credit – up to $8,000 for first-timers, and up to $6,500 for current homeowners – will hit a deadline on April 30.
“With the added incentive of the homebuyer tax credit there could be some surging activity as the tax credit deadline approaches,” said Lawrence Yun chief economist at the National Association of Realtors.
Mortgage rates, which the government has helped keep steady at a low 5 percent, are expected to rise to 5.5 or 6 percent by years end – another reason to buy sooner rather than later.
“The market right now, if you’re looking to buy, looks great,” said Jay Brinkmann, chief economist at the Mortgage bankers Association. “Prices are at or near the bottom of what we’re going to see, interest rates are only going up at this point; it’s a time to move if you’ve got that option.”
But despite all that, and bottoming prices, a rebound in homes sales still depends on the willingness of people like Patricia Kuczek.
“It’s scary,” she said. “Because of the economic situation, you don’t want to pour all your life savings into a house when you maybe should be holding onto your savings who knows what the future’s going to bring.”
Also scary is the threat of the next wave of foreclosures. Another 8 million homeowners are behind and 11 million owe more than their home is worth.
“There is a looming shadow inventory,” Yun said. “The foreclosure rate for 2010 could be just as high as in 2009, which was the highest ever.”
But this year it seems buyers are bidding on foreclosed properties
For the Kuczeks, there are lots of deals to choose from.
“I think it is an opportunity,” Patricia Kuczek said. “Yes, I think it is.”
But it’s still a giant step.
Start building your memories,
as you turn your house into a home.
As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office. I hope it has been of value to you. Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
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www.Facebook.com/ElkGroveRealEstate. For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.