Big news for the housing market came Friday when the President signed a bill extending and broadening tax credits for homebuyers. The tax credits apply to contracts signed by April 30, 2010, which close by June 30, 2010. Income limits for eligibility have been increased to $125,000 per year for individuals and up to $225,000 per year for couples. Credits up to $8,000 continue for first-time buyers but there is now a $6,500 tax credit for buyers who've owned their current home at least five of the last eight years. I thought I would share a great link that may address any additional questions that you may have about the Federal Housing Tax Credit.
In addition, Interest rates continue to be at an all-time low. As expected at its meeting last Wednesday, the Fed made no changes to the fed funds rate. The statement kept the same language indicating that the Fed will hold rates at extremely low levels for an "extended period." The Fed reported that economic activity has "continued to pick up" and that the housing market has improved. According to the Fed, inflation is likely to remain low due to unused capacity in the economy. The statement noted that low inflationary expectations and high unemployment rates reduced the need to raise rates. Investors and analysts alike have interpreted this to mean that these will be key indicators to determine when the Fed will begin to raise rates.
The news of the extension and expansion of the Federal Housing Tax Credit couldn't come at a better time for San Antonio Real Estate. This expansion, coupled with historically low interest rates could translate into additional market activity during the months of November thru April - a time of year that is typically slow for the San Antonio Real Estate Market.
I hope that you found this information helpful. My goal is to be a valuable source of real estate information to my clients. If you or anyone you know is in the market to buy or sell a home in the San Antonio, Boerne or surrounding areas let me know. Remember, I am just a phone call away. Have a blessed day!