» The Clock is Ticking on the Real Estate Trifecta

The Clock is Ticking on the Real Estate Trifecta

Who knows where the time goes? (“Who Knows Where the Time Goes”- written by Sandy Denny, but made famous by Judy Collins) Sometimes it seems like the past has gone in the blink of an eye. Ironically, it feels exactly the opposite when we think of the future. It’s human nature to think there’s all the time in the world, whereas the past seemed to happen in the blink of an eye.

We have the real estate trifecta here in the Seattle area right now and it could be gone in the blink of an eye. If you’re someone whose thinking of buying or selling, if you wait too long to act, the trifecta could be a thing of the past. The trifecta is a boon for both buyers and sellers.

So what’s today’s real estate trifecta?

The home buyer tax credit.

Attention home shoppers! The April 30th deadline for home buyers to find a home, be in contract, and receive the $6500 tax credit is coming fast, and it’s coming faster than you think. There’s less than 100 days to have an accepted offer on a home and obtain the home buyer tax credit.

home buyer tax credit

Remember, the $8000 tax credit still exists for first time home buyers, but many people don’t realize almost all home buyers are eligible for a $6500 tax credit. This is an important deadline for home buyers and home sellers, not just the buyers. Home buyers who are serious are out shopping and buying homes.

Low interest rates.

The low interest rates, which are low, won’t be here forever. Rates for a 30 year fixed mortgage dropped below 5% last week.

Good number of homes for sale.

There’s a lower number of homes on the market in King County, but there’s still a healthy amount of good homes to choose from. (Yes, home buyers, there’s a number of great houses out there.) It’s a more evenly balanced real estate market between buyers and sellers, which means some homes will sell right away if they are priced right and stand out from the competition and others will take longer to sell and will sell with more negotiation in price.

Number of King County Properties for Sale, 1-18-10

So home buyers and home sellers get out there now and take advantage of the real estate trifecta. April 30th is not far away.

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http://awarenesshomefunding.wordpress.com AwarenessHomeFunding

We are finding the same thing – now is the time to buy. This is especially true with the upcoming changes from FHA. Know your client, know your market, do your homework, take advantage of the savings while you can.
http://www.debrasinick.com Debra Sinick

Thanks for your thoughts. I probably should have said real estate quadfecta, is there such a thing? Yes, more changes coming in FHA financing, which means we know we have now and we should run with it.
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http://www.debrasinick.com Debra Sinick

Postscript:

Proposed FHA changes from Steve Tedrow at Windermere Mortgage:

FHA upfront mortgage insurance premium will be increased from 1.75% to 2.25% for new case assignments issued on/after 4/5/2010. The case assignment is issued when the appraisal is ordered.

On a $400,000 loan, this additional .50% financed amount would increase a borrower’s payment by $11 per month. We believe they will not change the monthly mortgage insurance premium.

Effective 2/1/2010, HUD is temporarily lifting their 90 day ownership rule which was designed to avoid property flipping. This will allow quicker resale of foreclosures.

FHA will reduce the maximum seller contribution from 6% down to 3%. It is speculated that this will not take effect until late spring/summer of this year.

FHA Spot Approvals will no longer be available for case assignments issued on/after 2/1/2010.

More foreclosures should be hitting the real estate market later this year.

http://realestate.yahoo.com/promo/5-markets-expected-to-fare-best-in-2010.html
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