Conclusion of Federal tax credits not likely to derail home sales

uncle-sam-tax-credit-give-back_366The expiration of the Federal tax credits for home buyers is not likely to prevent home buyers from purchasing, according to a survey by Prudential.  According to the survey, among home buyers currently shopping for homes, 65 percent believe that the end of the tax credits will have little or no effect on their interest in purchasing a home. 
Survey respondents identified concerns about rising mortgage interest rates and unemployment as the most important factors affecting their decision to purchase a home, along with more stringent lending criteria and fewer mortgage-backed securities purchased by the Federal Reserve. The expiration of the tax credits placed lowest on their list of concerns.

Among current renters, 75 percent still believe owning their home is a better long-term choice for their needs than renting. The majority of consumers also believe that homeownership is a better investment than individual stocks or bonds (75 percent), mutual funds (72 percent), or savings accounts (74 percent).

Right now we can certainly use a few less buyers as there are multiple buyers on each attractive listing within a day or two.  Unfortunately, the cash-buying investors did not qualify for the $8,000 Federal tax credit so they are not hindered by the termination of the credit.  California has a credit of up to $10,000 (paid over 3 years) for owner occupants that is currently in place.

So that I can help non-cash buyers, I am taking my buyer’s requests and going into the market place to extract sellers so they have first shot of the next home due to come on the market.  That is about the only way a 20% or less buyer can buy a home.  If you have suffered enough going the traditional route and would like your next offer to have a great chance of being accepted, ask me if I have a buyer opening in my practice.  If so, you can sign up for me to be your agent and start planning your move NOW.

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