Bob Travers Knows Fairfield County Real Estate!

   February- The Bill was signed to extend and expand the homeowner tax credit. The credit will remain at up to $8000 for 1st time homebuyers (those who have not owned a home in the past 3 years) and $6500 for repeat buyers (those who have owned their current home for at least 5 years). The credit may not be used for homes costing over $800,000. Purchase agreements must be signed by 4/30/10 and closed by 6/30/10. Income restrictions apply.
    The extension of the tax credit will provide a healthy tailwind for the real estate industry once the 2010 selling season begins. A full recovery remains precarious, however, given the sizable number of potential foreclosed homes that may come onto the market.
     Another potential headwind for home prices is rising mortgage rates which could boost the overall cost of owning a home. The rate on the 30-year mortgage broke above 5% recently. If demand for U.S. debt wanes, it could send rates even higher.
     While low interest rates and government incentives are still available, now is an excellent time to be a buyer in this market. No telling how long these incentives will remain in place.