As predicted in my last report, sales soared to new heights in October unseen in many years. The number of homes going under contract are at new highs, fueled by the 1st time homebuyers lined up to take advantage of the $8,000 tax credit set to expire 11/30/09. And for the third month in a row we’ve seen the “domino” effect of where 1st time homebuyers are buying the homes move-up buyers are selling, allowing move-up buyers to purchase larger homes.

I remain very optimistic our Congress will extend the 1st time homebuyer $8,000 tax credit. And, the popular rumor circulating for the past few months is that Congress will add a tax credit for the “move-up buyers”. It may be a great opportunity for current homeowners at a time of historically low interest rates to shed the home they’ve outgrown and receive a tax credit, also. You should give some thought to becoming a “move-up buyer” if;

1) You have more children than you have bedrooms, or

2) Your family room used to be the garage, or

3) You’re renting multiple storage units for all your stuff

 

The top 3 groups of homebuyers:

  • 52% were 1st time homebuyers
  • 17% were move-up buyers
  • 17% were investors

 Distressed Home Sales

  • 4 were REO, or bank owned properties
  • 2 were distressed sellers, or Short Sales
  • 20 homes went into pre-foreclosure
  • 4 homes were auctioned

 If you have questions about how this tax credit could work for you or someone you know, drop us an email or give us a call.