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August 27th, 2009 9:23 AM by David W. Welch
There is at least one bill I understand that is floating around on Capitol Hill that will extend the homebuyer tax credit and expand it to any home buyer and raise it to $15,000. I have serious doubts considering the rising concern over government deficits that this will pass. While the National Association of Realtors and the National Association of Home Builders support this legislation, I do not think that it is vital anymore, because I am not convinced that it is stimulating demand as much as prices and interest rates are. This should have been done a year ago, and the money should have been made available as downpayment assistance. I have had a number of people tell me that the $8,000 tax credit will be welcome, but it is not the primary motivation for their home purchase.
Most of the first time home buyers I have been working with would probably be in the market for a home regardless of the tax credit. That is not an assumption on my part, but what they have actually told me. Many of them have said that they feel like the market has bottomed as far as price is concerned, and interest rates are too good to last. One of my customers, not a first time buyer, is most concerned about where interest rates may go after The Fed stops buying mortgage backed securities. And a few of my customers have actually made the statement that they are concerned they may have already waited too late to buy. This is mostly coming from the tremendous response we are seeing to well priced homes, especially REO's priced below market.
Orlando Real Estate, David Welch Real Estate Optimist