FSBO BLOG

First time homebuyer, defined as ‘not having owned a principal residence in the past 3 years’, now can receive a Federal Income Tax Credit of $8,000 (or 10% of purchase price, which ever is lower) when purchasing a primary residence in 2009. Some restrictions, such as: must own the property for three years, gross income restrictions apply, etc. If you do not owe $8000 in Federal Income Tax this year, the government will send you a check for the difference. Will this have the following effect on the housing market: 1. stabilize prices?  2. increase sales/reduce inventory?  3. reduce foreclosures? 4. improve the ability to get a loan?

Click here for more information - http://www.fsbo.com/tax-credit-85/

President Barack Obama on Wednesday, Feb 17th unveiled the next step in his multi-pronged efforts to lift the United States out of recession, pledging up to $275 billion to help stem a wave of home foreclosures that sparked the U.S. financial meltdown. $200 billion to Fannie Mae and Freddie Mac and $ 75 billion to help 5 million borrowers refinance. At the end of last year, just over 9 percent of all home loans in the United States were in arrears or already in foreclosure, the Mortgage Bankers Association has said. A total of 8.1 million U.S. homes, or 16 percent of all households with mortgages, could fall into foreclosure by 2012, according to a report by Credit Suisse. Are steps taken by the Federal Government going to help, hurt or have no effect? With this information are you more likely to buy or sell real estate in 2009?

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