Phew! After four years of declining home sales, the numbers appear to be finally turning back upward, with closed sales and pending contracts at above-normal increases. In particular, first-time buyers helped buoy the market by taking advantage of low prices and interest rates, as well as the $8,000 tax credit offered by the federal government.
At least for now, home prices remain attractively low, and mortgage payments as they relate to income are very comfortable. All the information seems to point to the fact that home prices have actually overcorrected downward. What does that mean? It indicates that many markets may experience a price “snap back,” with values increasing a lot more than the historical average of 4% appreciation per year.
Some factors may continue to make buyers cautious, mostly declines in retirement savings and a lukewarm economic recovery with unemployment hovering around 10% nationally. Now is not the time to hesitate, however, as mortgage interest rates are expected to rise in 2010.
We can expect the momentum of home sales to continue, especially with the extension of the tax credit through April and the fact that qualification is no longer limited to just first-time buyers. Prices and interest rates will rise this year, so buyer confidence should be at an all-time high. The pressure cooker of pent-up demand is about to blow its top!
If you are looking to get in on the action and buy a house reaping the tax credit benefits or need to sell your home, call or stop by our office and I will be happy to share my knowledge with you at no cost or obligation. If you prefer, you can email me at donkingsley@kingsleyrealestate.com.
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February 5th, 2010
Selling your home in anything other than an active market can seem challenging, but what do you do when yours is only one of many homes in your neighborhood with For Sale signs? Surprisingly, there are actually some advantages to marketing your home in this situation.
More buyers are drawn to neighborhoods where they can preview more homes at once. More buyers means more opportunities for your home to be seen and to attract an offer, so make your listing stand out against your competition.
Price your home aggressively after reviewing the comparable sales figures provided by your Kingsley Real Estate agent. Don’t give your neighbors the advantage of looking like a bargain compared to your listing - take it yourself and show buyers what a great value you’re offering. If you’re competing against foreclosure listings, having your home in “move in” condition helps, because foreclosures often need lots of repairs.
With this much activity in the neighborhood, make sure that your home is available for showing on literally a moment’s notice. Buyers who come to look at other listings may spot yours and want to see it right away to make comparisons. Be prepared for “impulse” prospects with good housekeeping and an escape plan for unexpected showings.
Finally, don’t worry if your neighbor sells first - that just makes for less competition in your market!
For information on selling your home, call us, stop by the office or if you prefer, email me at donkingsley@kingsleyrealestate.com. I will be happy to share my knowledge with you at no cost or obligation. If you need help starting the process, call a REALTOR® from Don Kingsley Real Estate!
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January 29th, 2010
It’s the best news in real estate since last year’s First Time Home Buyers Tax Credit: an estimated $22 billion will pump into our economy as a result of the government not only extending the tax credit, but including current homeowners, too.
The existing $8,000 maximum credit stays in place for first-time buyers. A “first-time” buyer is one who has not owned a home during the three years prior to the purchase. However, repeat buyers who have lived in their home for five of the past eight years may also qualify for up to a $6,500 tax credit on their purchase.
Unlike before, as long as the property is under contract by April 30, 2010, buyers will have an additional 60 days to close by July 1, 2010. The credit applies to single-family homes, condominiums, townhomes and co-ops.
The qualifying income limits have been increased as well, up to $125,000 for individuals and $225,000 for couples filing jointly. If an individual makes up to $145,000 or a couple up to $245,000, the credit can still be claimed, but at a reduced percentage. Any incomes over those amounts won’t qualify.
If your tax credit totals more than your tax bill, you’ll receive a refund! Approximately 2 million people are expected to take advantage of this buying opportunity, so jump to action before the April 30 deadline!
If you are ready to make the move, whether buying or selling, call or stop by our office and I will be happy to share my knowledge with you at no cost or obligation. If you prefer, you can email me at donkingsley@kingsleyrealestate.com.
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January 22nd, 2010
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