This week the existing Homes Sales Report came back with a huge shocker… jumping up in October, and crushing expectations. This is just more positive evidence the our housing market is in recovery. Inventory has not been as low as it is right now in over 7 months, pending home sales have been up since the beginning of 2009.
Hopefully the trend will continue and home sales will rise in the coming months and through the first half of 2010 as well.
What is driving this???
Homebuyers are taking advantage of near all time low Mortgage Interest Rates, however it is tougher to qualify. Down payment, Credit Scores and Income are the 3 most important factors when applying for a Home Mortgage. But people are obviously still qualifying.
Homebuyer Tax Credit
The extension of the Homebuyer Tax Credit (see my recent post) benefits most types of buyers. First time buyers can still get up to $8000. And now, buyers who are trading up or downsizing can receive a tax credit of up to $6500! The extension also increased the income restrictions on the credit to $125,000 (single) and $225,000 (married). Thank you Government! The extension is through April of 2010.
Well, this is all amazing news for home sellers. For buyers it may be time to get off the sidelines and realize that those “deals” everyone is talking about will not be around for too much longer.
This site provides more information on the tax credit.
video courtesy of NAHB
If you have any questions about the Homebuyer Tax Credit and what it could mean in your situation, give me a shout!