Households Unfazed by Expiring Tax Credits
The expiration of the home buyer tax credits won’t deter optimistic households who believe the market is improving, according to a survey released Wednesday by Prudential Real Estate and Relocation Services.
More than 90 percent of those surveyed believe the home buyer tax credits have helped both first-time buyers and the overall housing market, but 65 percent say that end of tax credits won’t reduce their personal interest in buying a home.
Over the next five years, 79 percent expect real estate prices to increase, and 20 percent expect prices to rise substantially. Only 12 percent believe prices will decrease.
Among renters, 75 percent believe owning a home is a better long-term choice for them than renting.
The majority of consumers also believe that homeownership is a good investment, with 75 percent saying it is better than stocks or bonds, 72 percent preferring it to mutual funds, and 74 percent saying it surpasses savings accounts.
Source: Prudential Real Estate and Relocation Services, Inc. (04/28/2010)
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Should Buyers Try to Beat the Tax Credit?
Some potential home buyers say they’re holding out until the tax credits expire on the theory that prices will decline once the buying incentive is gone.
One person who commented on the dilemma on Zillow.com wrote: “I’ve seen prices in my neighborhood jump up over $30k since the credit started.”
In some markets, waiting is clearly the wrong move. A renter in Las Vegas told the Wall Street Journal that he’s been outbid eight times trying to buy a house. He doesn’t believe the expiration of the credit will make any difference.
Source: The Wall Street Journal, Emily Friedlander (02/25/2010)
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Tax Credit Inspires Builders Into Spec Homes
Some home builders are back building spec homes in the hopes that buyers will use the soon-to-expire tax credits to buy them.
“We know that we’re going to have more people out now,” says Lance Wright, co-owner of CastleRock Communities in Houston, Texas. “Buying is an emotional decision. Seeing the actual product that you’re moving into will certainly make it easier.”
Ken Campbell, CEO of Standard Pacific Corp., says home buyers having a brand-spanking new product available could be just the ticket to spur buyers. “It does make a difference if the home is ready, available to go.”
Charter Homes is putting up 20 well-appointed spec homes, says Rob Bowman, president of the Lancaster, Pa.-based company. “No matter how tough times are, that’s still a luxury that most people look at and say, ‘That’s something I really want.’”
Source: The Wall Street Journal, Dawn Wotapka (02/10/2010)
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Tax credit deadline extended; another program introduced
After passing with an overwhelming, bipartisan majority in both the House and the Senate, President Barack Obama signed into law the Worker, Home-ownership and Business Assistance Act of 2009 on Nov. 6.
The bill extended unemployment benefits to individuals in states with high unemployment but also extended and expanded tax credits for people planning to buy a new home in the next several months.
The credit is now not just for first-time buyers; current or recent homeowners may also be eligible for a substantial tax break.
The program has been seen as a great success by those in the real estate industry, something that may be spurring an upturn in home sales.
“Absolutely, without a doubt,” said Lyvia May of the Aiken Board of Realtors on the impact. “It’s really been a spring; the market is back alive again. We needed the shot in the arm. I believe people who wouldn’t ordinarily buy a home have been able to.” Full Story….
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Best Home Improvements To Make In A Recession
Installing energy-saving technologies is a great way to save money on homeowner costs.
The days of undertaking quick-fix remodels to sell a home more quickly and for more money are long gone. Now, with loans hard to come by and home sales slow, remodeling is all about projects that save you money in the long term and pay you cash up front.
Believe it or not, the federal government is more than willing to help–to the tune of thousands in tax credits. But this isn’t about redoing your kitchen; it’s about energy independence.
In a recession, there’s nothing better than padding your wallet whenever you can, so reducing energy costs makes natural sense. A serious commitment to this idea does have significant upfront costs, but it can save thousands in the long run.
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Best Home Improvements To Make In A Recession
Installing energy-saving technologies is a great way to save money on homeowner costs. The days of undertaking quick-fix remodels to sell a home more quickly and for more money are long gone. Now, with loans hard to come by and home sales slow, remodeling is all about projects that save you money in the long [...]