Tax Credits
There is a lot to report since my last post. The extension of the First Time Home Buyer Tax Credit did, in fact, happen. In addition, there is a tax credit that applies to an additional group of home buyers who are being referred to as “move-up or repeat home buyers.” There are some eligibility requirements for both of these categories, and a good web site with answers to FAQs is here. One striking requirement for the move-up buyers is that it can only apply to homes under $800,000. Sorry, folks in the higher end of the market hoping to utilize this credit. However, since 75% of single family homes on Bainbridge have sold for under $800,000 this year, it is nothing to sneeze at.
Market Stats
I have been watching the market throughout the year to see how it compared with the dismal numbers of 2008. Through September of this year, it was neck-and-neck for number of sales. October is where things start to diverge (not surprising given the collapse of the stock market in October 2008). As I write this there have been 186 sales of single family homes this year compared to 187 for the entirety of 2008. With 35 homes pending inspection or pending sale, this is sure to be a better year with respect to number of sales.
While the number of sales this year will no doubt be about half of what it was in the heydays of 2005 and 2006 (442 and 350 single family home sales, respectively) any improvement is welcome.
The median price is also down ($551,000 in 2009 YTD compared to $589,000 for 2008). While sellers are feeling the pain, buyers are getting more for their money in their price ranges.
Interest Rates
How low can they go? How long will they stay there? When can we expcet to see interest rate increase? Perhaps more than anything else, I wish I knew the answers to these questions. Who do I look to when I want answers?
The New York Times, of course. The
Times ran a good article yesterday regarding the state of interest rates and
their piece indicates the historic lows may be nearing an end.
I will end this post by writing ”Happy Thanksgiving.” The real estate market has been the source of so much stress and uncertainty for so many people, for so many months. This Thanksgiving holiday is a good time to appreciate what we have, not focus on what we do not have or what we have lost. I look at my sweet children, wonderful husband, fantastic parents, sister, in-laws, energetic and loving puppy, dear friends, great colleagues and my amazing community and cannot help but feel grateful. Thanks, too, to anyone who reads my blog. I hope you find some use in it, and I welcome your comments and questions.
Happy Thanksgiving!
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