A new report in the Fox Business News today says that U.S. home sales rose to a record 10.1% in October (see full article) based on information from the National Association of Realtors (NAR).

As I posted in a blog last week, the First Time Home Buyer Tax Credit has significantly improved the market in the 100K price band in the Fort Worth Texas area.  And this too will have a modest ripple effect on pricier homes as the sellers of those homes move up.  Now, we have the expanded part that was added to the bill, that allows existing homeowners (that meet certain conditions and requirements) to purchase a home and will benefit up to $6500 dollars with a tax credit.  This is certainly good news for home buyers and the real estate business/industry. 

If you're reading this blog, you are perhaps one of those eligible to receive to purchase a home and get the tax credit.  This is a time limited option and home prices are subject to go up, if the surge to purchase homes is strong as I expect it to be.  Being on the wrong side of this curve could erase the benefit of the tax credit if the demand lowers home inventories faster than they can be replaced (demand exceeds supply).  Therefore, the biggest gainers are those who begin to act sooner rather than later.

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 are already tightening in the 100K price range because many local zip codes in the Fort Worth area are already in a sellers market.

Bernie

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!

The housing market in zip code 76179 is attempting to stabilize in the lower price bands.  However, for those homes above $150K you can see that there is a much different story.  The market trend shows that all price bands are sensitive to upward or downward pressures which has been characteristic of the market in this area throughout the year.

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This report for zip code 76132 of Month's Housing Inventory on the market shows a bit of a mixed trend.  My observation of the report is that there is modest improvement in the $200 - $400K price bands.  The inventory in this price range has suffered for several months throughout the Fort Worth area and it is encouraging to see a positive change.  Local home sales for November and December are traditionally very good from year to year and it could be that we begin to see continued improvement as the 2009 comes to a close.  These improvements could be (in part) the indirect result of the First Time Home Buyer Tax Credit, whereas the sellers of the $100K priced homes (that benefited from the Tax Credit type buyers), became buyers themselves and moved up to pricier homes.  The result should produce a ripple effect which will eventually benefit sales of the higher priced homes.  However, I know from personal experience that many sellers in the $100K market became renters after selling their homes, which unfortunately for existing sellers, will dampen positive indications toward a better market.

Search homes in the 76126 zip code!

If you have any questions or would like additional information please contact us.  Also, we invite your comments and feedback on this information (see footer of this page).