1- Tax Credit to First-time Homebuyers and Qualified Move-up Buyers.
Time is running out to take advantage of the tax credit for first-time homebuyers of up to $8,000. This free cash incentive is available for home purchases with accepted offers by April 30th and close by June 30th. Just one additional payment of $8,000 can save you more than 10% of the total interest paid over the life of the loan (based on a $250,000, 30-yr fixed rate loan at 5% with the additional payment applied to the principal balance in the first year). Also, qualified “Move-up” buyers who have lived in their current residence for five consecutive years out of the last 8 years, can receive a $6,500 tax credit.
2- The Market is Full of Great Deals.
Economic indicators are telling us that we have hit the bottom of the home prices. Sacramento bottomed out in February 2009 at a median price of $167,000. In December 2009, the median price had risen to $187,500, a 12.3% increase. Additionally, multiple offers and homes selling above asking price are back, and the longer you wait, the more difficult it will be for you to get the home of your dreams at a price you can afford. According to the National Association of Realtors, Housing Affordability is currently the best it has been in 40 years.
3- Experts Predict Interest Rates are on the Rise
Mortgage interest rates are some of the lowest we have experienced in history. Along with projections of inflation come expectations of interest rate hikes in the near future.
clear skies,
doug reynolds
*some information provided by Buffini & Co.
Tags: first time home buyer, looking ahead, real estate, Sacramento, sellers market, tax credit, the bottom
Doug Reynolds