2010--What Will it Bring in the Real Estate Market
What will the real estate (and mortgage) markets look like after the Fed ends its program of buying mortgage-backed securities in March, and the homebuyer tax credit expires in April? I don't think I'm alone in expecting that rates will rise, perhaps significantly, and that we will see a flattening of home sales .
There is also anticipated to be another round of option loans getting ready to reset which may lead to more bargains becoming available in the housing inventory.
So, is this really a good time to buy? Yes...
- For first time home buyers who are eligible for the $8,000 tax credit and can obtain an accepted offer by April 30th and close by June 30th. (see program eligibility information at http://www.federalhousingtaxcredit.com/faq1.php)
- For 'move-up' buyers - those who currently own a home and would like to move into a different home may be eligible for the 'move up' tax credit of $6,500 if, again, they can obtain an accepted offer by April 30th and close by June 30th. (program eligibility information: http://www.federalhousingtaxcredit.com/faq2.php)
- For investors - there are some great deals available on the market, particularly if you are able to do a bit of repair/updating work on the home. It was just announced that HUD has temporarily lifted the anti-90 day flipping rule allowing investors to purchase a property, remodel the home and put it back on the market without having to hold the property for 90 days before obtaining a signed sale agreement. More information can be found at the HUD site: http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-011
If you have been considering purchasing a home or investing in real estate, this may be the best time to make your move.