First Time Home Buyers should NOT worry about the $8,000 Federal Tax Credit - WHY:
(1) Once this stimulus package ends (April 30) - prices will drop - in some cases more then the $8,000 you would have gotten from the feds - because many ill prepared buyers will leave the market - hence sellers will have to reduce prices to attract these buyers back into the market;
(2) Sellers that were pricing their homes slightly above their mortgage balance will now have to do a Short Sale because of the price reduction in the market - even their mortgage companies will be encouraging them to Short Sale in order to prevent a foreclosure; and
(3) There will be an attempt by the US Dept of Treasury to stimulate Short Sales in order to slow down the foreclosures across the USA starting in April 2010 by offering sellers "relocation assistance" of at least $1,500 to help them move out of the house that is under water or upside down because they owe more then the house is worth.
So once again, this is a great market for first time home buyers working with the right real estate professionals that understand the market.
Read more about Short Sales on www.Facebook.com/GautierRealtors