It's been longer than I like between posts, but I have been watching with interest the effects decisions in Washington are having on our futures, and what is being done or promised with our money. Some of the measures I advocated last August in the wake of Fannie Mae and Freddie Mac failing, are finally being done. Maybe not as far reaching as it could to get the real estate market turned around, but enough to benefit a lot of home buyers and, consequentially, sellers.
The American Recovery and Reinvestment Act of 2009 is providing tax credits for home buyers that have not owned a home as a primary residence for 3 years, otherwise referred to as first time buyers. This is not a permanent program, but offers a generous short term window of opportunity to take advantage of three things that enhance their purchase decision. 1) They get the tax credit 2) They take advantage of very low interest rates, and 3) They can still capitalize on some very handsome seller incentives either on new homes or resales. There is no reason to delay. Any speculation that prices will fall further can result in an offsetting rise in interest rates, as inflation is sure to be a bi-product of all the other spending.
For sellers who have been waiting for the market to turn to put their homes on the market, this is a good time to be in the market. Buyers are going to take advantage of the new incentives, and your home needs to be in the product mix for these buyers to consider, especially if you have a desire to move up or away from your present home.
Check with your lender, or competent real estate broker about your best opportunity to cash in on this brief window of assistance. It won't last forever, and you will want to be able to say, "I'm glad I did," instead of, "I wish I had."