Feb
1
How’s the Market -January 2010
Posted by Ron Estell under For Buyers, For Sellers, Regional News, Littleton
I was very late posting this article this month. So late that I hope to have the February market summary completed in the next 2 weeks. If you like you can have my articles a week earlier than they are posted by subscribing to my mail list. Just send an email to subscriptions@RonEstell.com with the words How’s the Market in the subject line.
2009 in Review
Due to the Home Buyer’s Tax Credit and low interest rates November sales rose spectacularly for both single family homes and condos. December condo sales remained strong while single family weakened. Overall 2009 sales were 42,070 vs. the 2008 performance of 47,837. Government Stimulus Extension of the First Time Home Buyer’s Tax credit of $8,000 now includes all contracts written through April 30, 2010. In addition the Buy-up Tax credit for existing homeowners of $6,500 was instituted and will also extend through the end of April. The First Time Home Buyers credit significantly stimulated sales of homes under $200,000. We expect the Buy-up tax credit to benefit homes over $200,000.
This year’s challenge will be interest rates. The federal government bought mortgage backed securities in order to keep interest rates low. The announcement has been made that the purchase of mortgage backed securities will continue until June of this year. After that point we expect that market rates will increase. The difference between 5% and 6% rates on a $250,000 loan would mean that payments would rise from $1,041 to $1,342. Buyer incentives and historically low interest rates between now and the end of April offer awesome buying opportunities. Bank owned and short-sale investment opportunities will also be plentiful but, with foreclosure rates declining there may not be the continued downward pressure on prices later in the year.
For details on the tax credit email or call me with ‘Home Buyer’s Tax Credit’ in the subject line.FHA loan limits, raised last year to stimulate higher-end home sales were set to extend at the end of last year have now been extended. FHA loans remain the choice of most home buyers due to the fact that they are readily available and in most cases offer the best rates available to buyers.
Economic pressures mount in the form of unemployment, rising medical costs, and credit card company’s rate policies. If you know anyone caught in the pinch of needing to sell but find that their home sale will not cover what they owe, suggest that they give me a call for a free, no pressure consultation. There are solutions to help those facing hardship.



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