First time homebuyer credits

Hello Homebuyers --

As many of you know, the first-time homebuyer’s credit was front-and-center on many peoples' minds last week. We also mentioned that we thought chances were good the credit would be extended. This could be materializing... maybe.

Senate negotiators reached a tentative deal to not only extend the current credit but also add a few bells and whistles: namely, a new credit of up to $6,500 (with income limits). The new credit would be available to all homebuyers who resided in their current residence for a consecutive five-year period in the past eight years (effectively excluding real estate investors). But it's not a done deal yet; a few House members have balked at the added costs.

Many property experts have cited the credit as the principal reason for the housing recovery. Although new home sales fell 3.6% in Sept., homebuilders could find comfort in the news that home prices continue to rise while inventory continues to fall. Based on the latest data, it should take only 7.5 months to sell all homes at the current sales pace. This is true for the Frederick, MD area as well. Keep your eyes and ears open for new housing reports this week too. They will show the latest in pending home sales.

Low home prices, low interest rates and an extended homebuyer tax credit make it a great time to buy a home. But buyers beware: housing inventory is dropping so the sooner you buy, the better.

Please contact me for your next purchase in Frederick, Washington, Montgomery County, MD; or the lower central-PA area! I'd love to help you find a home for your family or for an investment purpose.