Bob Travers Knows Fairfield County Real Estate!

   November- The Senate voted 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 bill has been passed by the house and it is pending the signature of the President.
    Sales of existing homes jumped 10% to the highest level since February 2007 as buyers rushed to take advantage of a tax credit, cheap homes and low rates. Mortgage rates held down by Fed purchases of debt are helping to keep rates below 5%.
     There are, however, still some concerns. While currently at close to record low numbers, mortgage rates have nowhere to go but up. A long-term budget deficit will pressure rates in the near future. Although inventories are improving, many owners who were unsuccessful in selling put their home up for rent. When the market improves, many of these homes will return as sales inventory. Plus, continued heavy job losses make it likely foreclosures will keep rising.
     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.