Home sales shoot up in October. The expiring tax credit, low interest rates and affordable prices all contributed to the uptick nationally as well as locally here in the Portland real estate market. I personally sold 15 homes in the month of October.
What looms ahead? I think we will see a seasonal lull with February and March of 2010 being big months with the April deadline for the extended credit. It is the months following that are a little worrisome. Is the tax credit keeping prices up and when that goes away, will we see like in the car industry a screeching halt?
Here's the full story: http://www.bloomberg.com/apps/news?pid=20601068&sid=at8txtF7KVaA.
Tuesday, November 24, 2009
Wednesday, November 4, 2009
Home buyers tax credit extension!
This week, the Senate is expected to pass an extension of the tax credit that was originally going to expire Nov. 30. Buyers who sign a purchase agreement by April 30th and close no later than June 30th can now claim the credit. The extension will apply to higher income buyers. Previously, the credit was available to individual filers making $75,000 a year or less. For couples the limit was $150,000. The new income limit will be $125,000 for individuals and $225,000 for couples.
There’s also something in it for move-up buyers: Before, you couldn’t claim the credit if you owned a home in the past three years. Now, if your last home was your primary residence for at least five years, you can claim $6,500 in tax credit if you buy a new home. However, the new house can’t cost more than $800,000. Hip hip hooray! I think that this is one of the few ideas that our government has actually made a good decision on. You might say: "Of course you do Nick! You are a Realtor!" But why should I, as a tax payer that is not buying a home, have to pay the bill? History, my friend. Every recession and boom has led with housing, and trust me this will help sales.
In the last three months we have had a giant increase in sales on Portland homes priced under $300k, and that is the general feeling across the country. With the added tax credit for buyers upgrading, low interest rates, and a hot market under $300k, this will spur sales in a price point that was dead. So my vote is for giving the stimulus money to the American people and let us take ourselves out of this recession. We all know the national banks are not going to.
There’s also something in it for move-up buyers: Before, you couldn’t claim the credit if you owned a home in the past three years. Now, if your last home was your primary residence for at least five years, you can claim $6,500 in tax credit if you buy a new home. However, the new house can’t cost more than $800,000. Hip hip hooray! I think that this is one of the few ideas that our government has actually made a good decision on. You might say: "Of course you do Nick! You are a Realtor!" But why should I, as a tax payer that is not buying a home, have to pay the bill? History, my friend. Every recession and boom has led with housing, and trust me this will help sales.
In the last three months we have had a giant increase in sales on Portland homes priced under $300k, and that is the general feeling across the country. With the added tax credit for buyers upgrading, low interest rates, and a hot market under $300k, this will spur sales in a price point that was dead. So my vote is for giving the stimulus money to the American people and let us take ourselves out of this recession. We all know the national banks are not going to.
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