Have We Hit The Bottom?

Nov 10th, 2009 | By | Category: Market At A Glance, Market Update

The Sahuarita Connection | Housing prices hit bottomYou may have noticed a few headlines in the new recently that indicate that the housing market is starting to show signs of recovery.  In my opinion, it really is too soon to say we are at a turning point – but some of the numbers are encouraging.  Pending home sales are up due in part to the bargains that are available (The Home buyer’s Tax credit Program) as well as interest rates having remained low.  However, there may still be a large number of foreclosures coming on the market, which of course will eefect overall values.  The Sahuarita market continues to show signs of correction as homes that are priced right are indeed selling! The key to selling your home now is listening to the market experts and pricing your homes accordingly.  The influx of new businesses in ur area is sure to help overall property values.  Be sure to read our Get Connected in the right-hand sidebar to get the scoop on the business scene.  Also, be sure to check out the latest Market at a Glance section of this site for a closer look at the local market conditions.

Breaking News!

President Obama has approved the Housing Tax Credit Expansion and Extension.

$8,000 !st Time Home Buyer Tax Credit Extension

  • Eligible for homes with purchase agreements signed by April 30th 2010 and closed by June 30, 2010.
  • Available for first-time homebuyers who have not owned a home during the past 3 years.
  • Buyers Qualified for full tax credit are single taxpayers with incomes up to $125,000 and joint filers with incomes up to $225,000.

$6,500 Tax Credit For Current Home Owners

The New Bill also provides up to $6,500 tax credit to current home owners who purchase a new primary residence.

  • Eligible for homes with purchase agreements written by April 30, 2010 and that close between November6, 2009 and June 30, 2010.  Maximum purchase price $800,000
  • Qualified Home Buyers must have lived in their current home for at least 5 consecutive years of the last 8.
  • Single tax filers who earn up to $125,000 are eligible for the total credit amount.  Partial credit can be granted for incomes up to $145,000.  Joint filers who earn up to $225,000 are eligible for the total credit amount.

Interest Rates

Interest rates for 30 year fixed mortgages dipped below 5% in the 1st week of November after rising for 3 straight weeks.  If you are trying to “time the market” for your best buying power, keep in mind that if you wait for prices to go lower, interest rates may go up.  Even if housing prices drop by another 10% you still may end up saving more on financing costs by borrowing now while rates are still low,  Simply put, 7% of $90,000 is more than 5.1% of $100,000! In addition, take advantage of your tax credit, low prices, great interest rates and sellers eager to sell.  These conditions have created the best opportunities for home buyers I have seen in years.

If you are going to buy a house… buy it now! If you can refinance and existing loan… do it!