TAX CREDIT EXTENSION-Signed, Sealed and Delivered!

President Obama has signed the bill to extend the $8000tax credit to first time home buyers. He has also extended the bill give a tax credit to homeowners who want to buy. Looking at it from a local real estate market point of view, this is going to further enhance our currently stable market. There is little inventory on the market and MANY buyers. If you are thinking of selling, this is the time.

First Time Home Buyer FRENZY!

As we all know, the end of the 1st time home buyer tax credit is supposed to come to an end on November 30th. The $8000 tax credit has resulted in a SELLER's real estate market for any home priced at $400K or less. YES, you read this correctly... a SELLERs Market! Any one who was or is in this price range knows this first hand... Competing contracts, escalation clauses with offers above asking price, writing mulitple contracts, running see a property as soon as it comes on the market in hopes to be the first to submit an offer, agents begging fellow agents to give them a heads up on when a property will be coming available... it's been NUTS! I felt like it was 2005 all over again! The appraisers have been keeping the values in control as not to allow for inflated sales prices, which is what put us in this mess in the first place.

Last night, the Senate approved an extension of the current $8000 tax credit for first time home buyers to continue through April 2010. The House is expected to approve this in the next day or so. Then on to the final signatures at the White House. This will hopefully keep consumer confidence up... I hope the extension allows for a balance in the first time home buyer market!

Carmelle Shea

Tax Credit for HOMEOWNERS--Could it be?

This is what I've been mentioning during my real estate discussions with friends. The middle value real estate market has come to a hault due to depreciating house values (and decreased consumer confidence in housing, employment and the economy in general). A homeowner who is lucky enough to sell their current home without bringing money to the table, doesn't want to do so since they will have $0.00 to put toward another property. Renting is an option, but not always a desireable one. Now, there is a new proposal for a tax credit for home owners... Here's the initial jist of it: current or previous homeowners who have owned a home for 5 consecutive years out of the past 8 years may receive a tax credit of $6500 for the purchase of a new home. The income cap for this program is at $125,000 for single income family, $225,000 for a dual income family. I am curious to see how this pans out!! I'll keep you posted!

Carmelle Shea