Now here is something that will affect the vast majority of home owners in the national housing market and you can't afford to miss out. The House and Senate just voted overwhelmingly to approve and the President signed last Friday to extend the $8000 First Time Home Buyer's Tax Credit which was originally set to expire on November 30 this year. However, aside from the extension, it has been expanded to include existing home owners who buy another home and they could be eligible to receive a tax credit up to $6500, although some limitations apply. If there was ever a great opportunity to move up to a larger home the conditions are about as perfect as they will ever be! Consider the following:
Today's Mortgage Rate for a 30 year fixed - 4.63%
Trade up from a $100K to a $200K home. I always say that "you buy in the same market you sell in and visa versa". So, in a buyers market you could potentially loose 5% to 10% on the sale of your $100K home ($5000 to $10000). But, you can save even more on the purchase of the new home (assuming of course that the same conditions are present throughout the market). For example, with the purchase of a $200K home the savings could be up to $20,000. It gets even better! In many areas of Fort Worth, sellers that have homes to sell in the $100K price band are currently experiencing a seller's market because inventories are low (see my previous blogs on this). That means that these sellers (should in most cases) get their asking price for their existing home, take advantage of the $6500 tax credit by moving up to a larger home and reaping the benefits of the savings (homes in Fort Worth above $150K predominantly remain in a buyer's market). The downside I see for most buyers and sellers is the danger from waiting too long. I anticipate there will be a similar surge in home sales similar to that which we experienced with the original version of the First Time Home Buyer Tax Credit. This time I think the homes in the $100K thru $200K will experience the largest gain in home sales, potentially changing market conditions for that segment. I'm forecasting that by the Spring of 2010, we could begin to see a return to seller's market in that price band and at the very least we should see a more normalized market. That means that prices could begin to increase within a relatively short period.
By the time your hairstylist or barber is talking with you about this, it may be too late to get the maximum benefits. Jump in the market now to get the most out of the tax credit and current market conditions!
Get your home on the market immediately (we want your listing) because it takes time to sell your home and you don't have the time to spare since you will soon be a buyer too!
...and first time home buyers lets start looking at homes because inventories in the $100K range are tightening which will cause prices to stabilize if not increase!
Folks, don't miss this opportunity...and again, be early on this one!
