As we approach the beginning of the school year I am amazed at how quickly the summer has passed. I looked down at my calendar today and realized that I only have 2 weeks to purchase school supplies, clothes and back-packs. I have yet to figure out where the summer has gone and despite high hopes for a summertime market recovery, activity continues to be slow.
The good news is that the federal government is making efforts to resurge the Real Estate market by passing legislation that would benefit first time home buyers. The federal government considers a "first time buyer" to be anyone who has not owned a primary residence in the past 3 years. The newly passed legislation is offering up to a $7500 tax credit to buyers who purchase between April 9, 2008 and July 1, 2009. There are limitations which are described in detail at: www.federalhousingtaxcredit.com.
The best news about this legislation, if it is successful in its design, is that it will create the trickle effect. Much of the difficulty that we are experiencing is that many people need to sell their home before they can purchase the next. This may be enough to get the ball rolling in a positive direction if it motivates the buyers who are sitting on the fence. Once homes begin to sell at a steady pace again the rate of appreciation should increase and stabi-lize the market.
We certainly are not expecting this legislation to be a cure all for our current state of affairs. There is still the economy, elections and interest rates to take into consideration. However, it is encouraging to see our govern-ment step forward and begin to address the problem.
If you know of anyone who has toyed with the idea of purchasing a home please have them call me (no obli-gation to purchase). I would love to talk to them in detail about the process and help them to determine if it is something that would benefit them. I also have some wonderful books about the buying process that I love to give away.
As always, I hope that this letter finds you well!
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