Government intervention helped many eager homebuyers to buy homes in the last year and a half, promising them an $8,000 tax credit if they did. This temporarily helped revive home sales, but is it a good deal in the long run?
The Florida Association of Realtors thought so and tried to lobby to expand the credit. Others, speaking from the real estate side, and the home building side, think that the long term credit could overcorrect the mortgage industry -especially since the Federal Reserve also bought mortgage -backed securities to keep interest low. The government also bailed out Fannie Mae and Freddie Mac, the nation's two largest mortgage lenders.
Unfortunately, it seems as though we may be on track for the government to control all aspects of the mortgage industry. If our government had a record of accomplishment for managing money wisely, this might not be such a concern. However, we all know that isn't exactly the case. Of course, the long term impact of the credits is not yet known.
It may not have been the best time for some families to buy, but with the government dangling a carrot of extra money, many families gave into the temptation. Hopefully, these loans will remain stable and not become foreclosure statistics.
Any good effects the credit had on residential real estate did nothing to over a million commercial real estate loans that will end between 2010 and 2014, and it is clear that we are not out the woods. Florida-and Arizona-have some of the largest commercial real estate markets, so they will probably take some of the worst from this, just as they did in the residential market.
Are you interested in buying a home for your family, even though you may have missed the government's cut off for a tax credit? If so, call the Curtis Johnson team today. The Curtis Johnson team will be here to help you buy or sell your home, and our help does not have a deadline. Go to www.curtisjohnson.com or call 1-888-Curtis-J.
Tags: arizona foreclosures, commercial real esate, curtis johnson, curtis johnson real estate, fannie mae, freddie mac, home buyer's tax credit, mortgage backed security, phoenix az real estate, phoenix homes for sale
This entry was posted on May 13, 2010 at 1:03 pm and is filed under AZ, Foreclosures, Government programs, Phoenix, real estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site. Edit this entry.