Real Estate Information

Great news for home buyers and sellers in Eagle River, Alaska (and the whole country, in fact)...the First Time Home Buyer Tax Credit has been extended AND expanded to many repeat buyers. The video below is my recent interview with The Alaska Real Estate Showcase about the new Tax Credit law.

The number of homes for sale in Eagle River, Alaska continued to decline last week. A total of 13 homes came off the market (either came under contract as sale pending or closed) while only 2 new listings came onto the market during the same period. Currently, there are fewer than 100 active residential listings on the market in Eagle River.

Extension of the First Time Home Buyer Tax Credit, as well as the expansion of the program to qualified repeat buyers, is expected to entice more buyers into the market. This in turn should keep housing inventories low in Eagle River throughout the winter and into spring. To learn more about the Home Buyer Tax Credit, please see my previous blog post.

Until next time…

Best Regards,

Roger

The $8000 first-time home buyer tax credit, previously scheduled to terminate at the end of November, has been extended for an additional 5 months. Additionally, the new program, signed into law by President Obama on November 6^th, gives move-up and repeat home buyers a sizeable tax incentive as well—up to $6,500.

Under the new law, qualified first-time and repeat buyers have until April 30, 2010 to enter into a binding contract, and until June 30^th to close to be eligible for their respective tax credit. A first-time home buyer is considered a buyer who has not owned a principle residence within the last 3 years. Eligible repeat and move-up buyers must have resided in the principle residence they are selling for at least 5 out of the previous 8 years.

The new law also raises the income limits, allowing more people to take advantage of the tax credits. Eligible buyers with incomes up to $125,000 for singles and  $225,00 for couples will qualify for the full tax credit.

For more information about the new tax credit law, please contact me and I will be happy to assist you.

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.