Homebuyers: Too Late for Tax Credit Extension, but still Find Market Ripe with Good Deals

happy-new-home-buyers

The three-month homebuyer limited tax-credit extension has helped many people.  However, it is too late for other home seekers to take advantage of the tax credit.

But Lucien Salvant, National Association of Realtors spokesperson, says that shouldn’t discourage interested buyers because the market is ripe with other opportunity. “The good news for people who didn’t take advantage of the tax credit is that the inventory is still plentiful, although it’s reduced significantly from what it was a year ago, prices are affordable, and the interest rates are the lowest they’ve been since the 1950s.” The low interest rates are, of course, a magnet for attracting buyers. However, Salvant says that while this is a good time to buy, he notes that the lending market isn’t operating the way it did before the housing crisis. This, he says, should make people understand that buying a house is a good option if you plan to stay in it a while—not play the flipping gamble, hoping for a quick profit.

“The average is about seven years. Homeownership is an investment in the future, not for a quick turnaround, which a lot of people abused in the earlier part of this decade,” says Salvant.

Salvant notes that the housing market’s recovery is being hampered by uncertain unemployment conditions which are causing some potential buyers to wait, possibly for more breaks.

But Salvant says don’t count on more tax incentives. “We have asked Congress now for three different tax credits and we’ve gotten them. The purpose of the tax credit was to give a quick start to the housing economy which was coming apart and sinking fast. We think it really helped. Now, it’s time for the housing market to stand on its own two feet,” says Salvant.

What’s the future hold?

Salvant says, “It’s like a baby standing on its own two feet. It’s going to be wobbly, it’s going to take a while for things to settle in, but the housing market needs to function on its own.” The housing market recovery is being hampered by the joblessness, says Salvant. “[People] are worried about how many people are going to lose their jobs. … ‘If I buy a house, am I going to be able to make the payments?’ That worry is on a lot of people’s minds and it’s beyond the housing market to solve that problem,” says Salvant.

He says the magnets are there to attract homebuyers: low interest rates, good inventory, and affordable prices. “We’re hoping that free enterprise—private industry—and the government can work together to create incentives for a hiring to help the jobless situation in this country,” says Salvant.

As the economic job forecast remains uncertain, sellers dangle a golden carrot which promises a way for buyers to purchase a home that will save them money. Now, more than ever, sellers are highlighting features such as the home’s energy efficiency and close walking distance to jobs, stores, schools, and other vital locations.

Find out options available for you when purchasing a home.  Real knowledge, creative strategies….know the facts.  Check out our upcoming seminars in Long Beach, CA.

Source: Phoebe Chongchua (RealtyTimes): Chogchua is an award-winning journalist, an author, customer service trainer/speaker, and founder of Setting the Service Standard, a customer service training and consulting program offered by Live Fit Enterprises (LFE) based in San Diego, California.



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