It sounds like you're aware that the stimulus benefits sellers. Sellers will get $6500 higher bids due to this stimulus. The stimulus provides an artificial price floor.
In the title to your blog post, you imply that the stimulus is actually good for buyers. That's a little disingenuous, no?
I see you declined to allow my comment on your previous post. If you don't feel like responding to criticism on your own blog, you're welcome to respond on mine:
https://dicedicedicedice.blogspot.com
In the title to your blog post, you imply that the stimulus is actually good for buyers. That's a little disingenuous, no?
I see you declined to allow my comment on your previous post. If you don't feel like responding to criticism on your own blog, you're welcome to respond on mine:
https://dicedicedicedice.blogspot.com
Thank you for your comment. Many sellers need to sell their home and this may bring more buyers to the market. The tax credit for first time buyers did not cause prices to rise, in fact, at least in the Raleigh Durham market, prices fell this year an average of 6%. If you are planning to buy, make sure your buyer's agent gives you good comparables that are equivalent properties that sold within the last three months in the same community before deciding on your offer price. As long as there are more buyers than sellers, buyers will be calling the shots. Good luck.
Sellers who couldn't sell their home in 2009 should be feeling a little lucky. The housing stimulus bill that Congress just passed will undoubtedly put a silver lining on some of your clouds. The newly expanded housing stimulus offers tax incentives to all buyers provided they meet eligibility.
A $6500 tax credit will be available to buyers who have lived in their home for five consecutive years within the past eight years. You must have a signed valid contract by April 30, 2010 and settlement (closing) must take place before July1. The income restriction has been expanded to singles earning up to $125,000/year and couples with a combined income not exceeding $225,000. The cap on the purchase price is $800,000; homes sold at even a dollar above will not be eligible.
I am not sure this will have a huge impact on the $800,000 housing market. Most buyers in this price range will not be swayed by less than one percent incentive. The luxury home market faired a bit better in 2009 as people with cash stores took advantage of discounted properties. I expect the mid range $300,000 to $600,000 sellers will benefit from this program through spring. This offer will surely be beneficial to buyers as well as sellers who have had to sit on the sidelines waiting for a better market. More importantly, we can remian optimistic that this may provide relief for sellers who are trying to avoid foreclosure.
If you would like more details about the new bill, please send a request to dreamhomes@nc.rr.com.