LEGISLATIVE ALERT: First -time Homebuyer Tax Credit Extended and Expanded

The House of Representatives passed legislation to extend and expand First-time Maryland Homebuyer Tax Credit. Under the legislation, home buyers will qualify for the $8,000 tax credit until April 30, 2009 (as long as they have entered a binding contract), and have an additional 2 months (until June 30, 2009) to close the transaction. Borrower income limits have been increased to $125,000 for individuals and $225,000 for couples. A tax credit of $6,500 also applies to move up buyers who have owned their current home for at least 5 years.

This is extremely beneficial for consumers and the overall housing industry. As a Realtor and homeowner, I strongly urge all home buyers to take advantage of this market and this amazing opportunity.

RE/MAX Founder Addresses Economic Stimulus Package

This urgent message was sent out to all RE/MAX agents from the founder of RE/MAX, Dave Liniger, on February 5, 2009. I feel that this message should be shared with as many people as possible. It addresses the Economic Stimilus Bill that Congress is debating.

http://www.remax.com/inside_remax/news_and_events/making_news/press_releases/2009/documents/UrgentMessagefromDaveLiniger.pdf

A Near Future Drop in Interest Rates?

There is a lot of speculation right now in the real estate market between lenders, agents, and even buyers and sellers of whether or not interest rates will drop in the near future down to 4% to 4.5%. This is something that has been going through the housing market grapevines for the past couple of months. Many are very skeptical and are saying that interest rates will only continue to go up. While others are optimistic that interest rates will go significantly back down below 5%. One thing is for sure that rates have never been so volatile as they have been the last couple of weeks. The rates went up this week to 5.125% (conforming loan). Congress is working on a new stimulus plan that will hopefully be passed in the near future. If so, many loan officers are optimistic that rates will hit an all time low. In turn, this will help encourage buyers, will help buyers qualify for more house, will help current homeowners refinance at a lower rate which will help more homeowners have a more affordable mortgage and help prevent foreclosure, and overall will help stimulate the real estate market.

Never Been A Better Time To Buy

In my opinion, it has never been a better time to buy. Interest rates are low, sales prices are low, there is a huge inventory of short sales and foreclosures, and unbelievable offers are being accepted by sellers. With all the financial crisis, it is my belief, that in the future once the correction is in sight creditors are going to increase interest rates to recoup all the losses that they now face. Which may very well bring us back to the early 80's when interest rates were around 17%. We are still going to be selling houses, but wouldn't you rather buy now knowing that interest rates and sales prices are low?