It’s the year of opportunity for the first time home buyer!
Warren Buffet has often said, ” Be fearful when others are greedy. Be greedy when others are fearful.”
Buffet’s wisdom applies to real estate as much as it does to the stock market. Many buyers are sitting on the sidelines waiting for that elusive bottom of the market-fearful they will pay too much. The time to buy is now.
Multiple factors have converged to make 2009 an advantageous time for first time home buyers to make a purchase.
1)Price declines in many markets have increased affordability.
2)Inventory in many communities is high. This affords buyers the choice of many homes as well as some leverage in negotiating a purchase price.
3)Interest rates are still historically low and should remain low throughout 2009.
4)A revised First Time Home Buyer Tax Credit was just passed as part of the stimulus package. This credit is equivalent to 10 percent of the purchase price of the home–although it’s capped at $8,000–and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid. Click here to read more about this tax credit. ACT NOW as this incentive end on December 1st (the purchase of your new home must be completed by November 30th).
5)Existing IRS tax deductions for homeowners have not changed.
6)Additional tax breaks for homeowners may be coming in 2009.
7) In some cases, it may be more affordable to own a home than to rent one.
The California Association of Realtors launched a Mortgage Protection Plan on April 2nd designed to provide peace of mind to first-time buyers who are hesitant to enter the housing market due to concerns about potential job loss, and subsequently being unable to meet their monthly mortgage obligations. Click here to read about this program.
9) As part of the recently passed state budget, California is providing a $10,000 tax credit to some buyers of new, previously unoccupied home purchases. This tax credit can be combined with the $8000 firt time home buyer tax credit. Click here for details about the $10,000 new home tax credit. Funds for this program are limited.
Once you decide to purchase a home, it is important to have the advice, support, and counsel of an experienced real estate team, who will be looking out for your best interests. There are several different types of buying opportunities on the market right now. Our team will help you craft a buying strategy and ensure you get the best possible home at the best possible price.
We’ve already helped four first time home buyers purchase a home in 2009! We’re ready to help you too!
