Posted on 03/15/2010 11:09:12 AM PDT by Reaganesque
As others have mentioned here, it depends on where you are. But in general, I think the housing market is improving. It is doing so for several reasons, most of which have zero to do with Obama although the First Time Home Buyer’s Tax Credit is helping somewhat. The economy does what the economy does and politicians can either slow it down or speed it up. They cannot, however, determine its direction, at least, not for long.
I would be in the market if I had any faith in economic recovery. I have cash for downpayment, stable job, good credit rating. But I don’t think the real estate market has hit bottom and I don’t want to end up like so many others who are underwater. Even the 8K in ‘free money’ isn’t enough to move me. I came very close to buying a condo last winter. Since then the prices have gone down 20%. I’m so glad I got cold feet.
Mike
Understand, the First Time Home Buyer’s Tax Credit is NOT a flat $8,000 per home bought. It is 10% of the cost of the home. In order to get the $8,000, you have to buy a home that is selling for $800,000. Still, 10% is better than nothing.
Unfortunately, that isn’t in my market, so I have no idea if that’s a great price or not.
Certainly the coast will rebound much sooner than the inland or desert areas, but it really is a very micro market thing.
see them get their $8,000
...that’s assuming the gov gets around to paying it, since the line is said to be 8 months long. We cashed out of So CA in ‘05 at 11 x the down payment after 9 years, rented for 4 and now will apply for the “new homeowners” credit which I spent a third of to get a 4% (free money considering inflation) mortgage on the new place, 5 acres with stone/brick ‘04 built house in central TX. I think we’ll get the double dip but I am looking to buy vacation homes that are overbuilt in long term vacation destinations,
Hilton Head, Park City, Monterey Bay, Taos etc. Upper middle classers will always take vacations. My .02, ymmv
Way to go!
I live in Baltimore County - I’m actually looking to purchase a home this year - I’ve put it off long enough and think that Baltimore city has bottomed out and that prices in Baltimore County are pretty decent. Previously I was looking into Anne Arundel and those prices were still way too high for me.
I’d like to lock into something before inflation does set in and rates start go go up.
No way. I feel lucky beyond words that we managed to sell our house last fall and walk away with some cash in hand. No way in hell would I buy right now, unless I was doing it with 100% cash and the intent to stay there until I die.
The market is still being propped-up by government and bankster fraud - this can not and will not last forever and real estate values still have a loooooong way to fall.
I’m perfectly happy to watch it fall and rent for a while - until I’m ready to get the hell out of MA and buy a place down in FL under the conditions I mentioned above.
It’s my understanding that as long as a contract is in place before April 30th - you have until June 30th to close. They extended it. I could be wrong but that was the last thing I read on it and was told by several friends.
selling for $800,000. Still, 10% is better than nothing.
... ahhh, I think you meant 80,000 in order to max out on the $8000 10% credit , no?
ymmv
Am thinking of it but am convinced the prices are still dropping.
Call the realtor just to be sure.
But I read excuses in your reply.
Trust your gut. Trust your instincts.
There is talk about extending it again. There is even talk of making it permanent. Who knows?
Most of our clients (Banks, Credit Unions)have told me this past week that their sources (The Fed) believes that the market will still drop in most parts of the county until 2016. Unless there is a sizeable down payment, anyone purchasing today could easily be underwater by the time the recover comes.
I’ll have to check my percentages but, it is not a flat $8,000. That I’m sure of.
Do some research on the commercial real estate bubble they predict is about to bust.
Is’nt there a new home buying credit even for non-first timers? Does anyone know the Income Limitation on it?
good news! no socialist rules on limits and you are officially a new homebuyer if you have been a renter for only three full years prior to closing! IRS gives you a 10% tax credit on the cost of the new house up to $8000 in ‘10. We expect to reap the stupid stimulus on this year’s tax return to help make up for the years of having 6 figure fed tax assessments!
ymmv
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