tax credit: Tax Credit versus Interest Rates--Which has the Bigger Impact?
- 10/14/09 09:40 AM
The 1st Time Home Buyer's Tax Credit is scheduled to expire 12/1/2009. While it may be extended, I would say that there is an event coming that is of greater importance. Interest rates are going to rise; it's only a matter of time. An increase to 6% or more wouldn't be surprising. That increase in interest will affect buyers and sellers alike. Buyers will be faced with higher mortgage payments, or in order to control costs, they'll have to settle for lesser priced homes. Sellers will find a market that is dampened by the higher interest rate, making a sale that … (5 comments)
tax credit: Let's Look for the Silver Lining, and Quit Talking About the Dark Clouds
- 10/23/08 05:00 AM
There is so much negativity about the real estate market, locally, regionally, and nationally. Yes, it is true that home values have dropped markedly. Yes, it's also true that many, many homeowners face the threat of foreclosure. It clearly isn't the best of times we have ever seen. But it's also true that the real estate market is cyclical, that home prices had inflated beyond all logic and reason, and that this situation is an inevitable correction in the market. Yes, there are many problems, and it is not my intention to dismiss those problems, or make light of them. But … (1 comments)
The 1st Time Home Buyer's Tax Credit is scheduled to expire 12/1/2009. While it may be extended, I would say that there is an event coming that is of greater importance. Interest rates are going to rise; it's only a matter of time. An increase to 6% or more wouldn't be surprising. That increase in interest will affect buyers and sellers alike. Buyers will be faced with higher mortgage payments, or in order to control costs, they'll have to settle for lesser priced homes. Sellers will find a market that is dampened by the higher interest rate, making a sale that … (5 comments)
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