Investors Drawn Back into Real Estate

Today I was reading an article entitled - Low priced Foreclosures and High Hopes for Appreciation Draw Investors back to Real Estate.

This is actually happening in my market. In fact we are seeing multiple offers on foreclosed properties becoming the norm as savvy buyers move to take advantage of current market conditions. Continuing low interest rates coupled with the $8,000 First Time Homebuyers Gift (Grant), plus the expansion of the program to include $6,500 for current owners purchasing a new residence is creating lots of buying activity. Buyer perception about affordability of homes has increased to the point where they now realize they can now afford 70% of the homes on the market based on the median income of $52,029. Buyers are waking up to the opportunities in a hurry!

First Time Home Buyers Grant Extended and Expanded to Current Homeowners!

Congress passed the Homebuyers Tax Credit Program Expansion set to expire November 31, 2009. Here is a quick summary.

The program, which was set to expire November 30, 2009 has been extended and expanded. It will continue to assist First Time Homebuyers by providing an $8,000 credit with the existing rules still in place. The program has also been extended to Current Homeowners who now qualify for $6,500 for the purchase of a new residence if they have lived in their existing home 5 of the last 8 years. The extension will terminate April 30, 2010 and will apply to contracts entered into before that date and which close before July 1, 2010.

For all the details click here.

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Existing Home Sale Contracts Rise for 8th Straight Month

Some good news in the housing market surfaced in September (Click Here to Read the article).The September Pending Home Sales Index which tracks sales of existing homes rose 6.1%. This was a higher than anticipated increase. The feeling is that it is spurred by the upcoming expiration of the first time Homebuyers Credit (set to expire at the end of November). That deadline looks like it will be extended into 2010 at this point. Housing may not be out of the woods yet, but this report is the latest in a line of positive indicators. The report quotes “An excess of homes remains on the market despite recent improvements," he said. "Although current inventory is getting closer to price equilibrium, foreclosures will continue to enter the pipeline." Our region has seen in increased level of activity as well and is experiencing the same trend.
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