November 11th, 2009 12:41 PM by Michele Morse Reen
Although we are not back to the real estate market of 2006, we are starting to see positive signs and the beginning of a recovery. Multiple offers over asking price are common and sales are increasing. This indicates that there’s still demand for homes in this area. 1st time buyers and investors are taking advantage of real estate at great bargains compared to 24 months ago.
In addition to low rates, much of the incentive for 1st time buyers has been the ability to take advantage of the $8000 tax credit if you did not own a home in the past three years. This credit has JUST been extended through April 2010. A new $6,500 tax credit is available to homeowners who have lived in a home for 5 consecutive years out of the past 8, and are looking to move. In addition, income limits have been raised, so both tax credits will be available to those individuals earning up to $125,000 (currently set at $75,000), or up to $225,000 (currently set at $150,000) for couples.
Also, Congress passed a resolution that would extend the present conventional loan limits for Fannie and Freddie through the 2010 calendar year, up to a maximum of $729,750. This is huge for those needing to refinance or purchase and still having access to lower conforming rates. Recent improvements to the Fannie Mae and Freddie Mac programs have allowed more borrowers to refinance even if the property value has temporarily declined.
I will continue to keep you up to date in this ever changing real estate market in 2010. As always, if you have any questions about your specific situation or would like to discuss how you may benefit from these programs, please call me 408-626-1879 or email Michele@reenteam.com.