Archive for the 'Residential Buyers' Category

Today we will be discussing signals in the marketplace to consider when you evaluate buying or renting a home.   The  housing market fallout and slow climb to  recovery has created some of the most affordably priced homes in a decade.  However, you may still be concerned that prices may continue to fall or keep falling after closing. Hopefully we can shed some light on what to look for in evaluating whether to buy or rent a home.

Mortgage rates are likely to increase. The national data supports an established bottom in most local markets and certainly in the New Hampshire and Vermont markets.  While house appreciation will be a slow climb, Interest rates will likely not be as slow.  Today’s low interest rates might be as good as it gets for a long time to come. In the next few years,  higher mortgage interest rates are  inevitable base on an economic expansion cycle in our economy and to temper inflation. This elevated interest rates will last for an extended period of time.

Mortgage rates on the rise are one signal that now might be the peak of home affordability, and the peak of the opportunity to buy or rent a home.

Rents continue to climb. Rental rates in many areas are on the rise. Foreclosures have placed additional pressure on rent prices as former homeowners are displaced due to foreclosure. New lending guidelines and restrictions have also kept people renting beyond their intended time-frame. As a result, rental homes are in high demand – and rents are rising.

Rising rents at a time when the prices of homes for sale are low is a clear signal that now might just be the time to buy. Be weary of foreclosure neighborhoods as that may dampen your house appreciation.

Timeframe. Successful home ownership usually requires a 5 – 7 year occupancy. If this meets your criteria for your next location than buying vs renting should be a no–brainer especially with a bottom predicted in most markets.  The key concept is to ensure you buy a home that meets your future needs – not just your current ones; and that requires that you have a reasonable idea of your life vision and plan for the future.

If you are convinced this is the time to buy rather than rent a home be sure  to use one of our Certified Buyer’s Agents (CBR) either Linda Flanders or Theresa Sherman. We focus on the Dartmouth – Lake Sunapee region of New Hampshire and Vermont. If you are from outside the region be sure to check with your local real estate broker or agent to get a pulse on the current market conditions.

8000 home buyers tax credit?

Time is running out so hurry to make your purchase if you want to take advantage of the 8000 home buyers tax credit.

First-time home buyers purchasing homes between January 1, 2009 and December 1, 2009 are eligible to receive the 8000 dollar home buyers tax credit. To be considered a “first-time” home buyer, you or your spouse may not have owned a home or residence during the prior three years to your new home purchase. Remember the 8000 home buyers tax credit only applies to properties that will be a primary residence such as single family residence,  condos, townhouses and even co-ops.

According to NAR:

The $8000 home buyers credit break down as follows:

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors: The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000. The buyer’s income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Lastly, the credit does not need to be repaid as long as you or your spouse occupy your home for at least a three year period.  However, if  you do sell the property within the three year period, the credit will be recouped upon the sale.