What's happening in our Real Estate Market?

Whew, when it comes to the Real Estate Market, the theme is Change. The general sentiment is "Thank God, we are putting 2009 in the past, shelved next to 2008". We're (the Realtors, Banks and Federal Government) are all looking forward to 2010 to be a better, and brighter year. Currently, prices are low, much more affordable and interest rates are at the historic low end, and the Federal Thanksgiving bonus of a Tax Credit is still available for a while. So in a nut shell, it's a great time to change residences or buy a home.

But be forewarned, our interest rates have been hovering at the lower rate of 5% for almost a year now, and once again, change will be coming. The Federal Government very quietly have been warning the Realtors that the rates are artificially low, and the rates cannot be at this level for very much longer at all. As prices and the market starts to stabilize, we believe the rates will increase. The expectation is that prices will not be affected by the interest rate increase. So can I repeat the phrase again? Now, is a Great Time to take advantage of the housing market by locking in your rate and home. Our current inventory, with the presence of short sales and foreclosures, will dry up, and then very slowly we hope to regain some of the equity we have previously lost in the 2007-2009 eras.

Change is in the air, higher interest rates, and a start to the stabilization of the market, both should force a buyer to wonder, when will the buyer's market be ending? I don't have a prediction, but experiance tells me that the buyer's market will not be as strong as it has been. So rejoice! The market is doing everything it can and will start improving. Yahoo finance had an interesting article in Dec. that you might want to see.

6500 Reasons to Sell Your Home

Congress and the President have extended the $8000 First-Time Homebuyer Tax Credit and expanded the credit to benefit sellers. Some articles have noted that this is for "move up" sellers, but there is no reason a seller can not use the credit for a "move down". It is a credit on your next purchase as long as the purchase is for a principle residence after Nov. 6, 2009 and on or before April 30, 2010 to have a binding contract or have the purchase by June 30, 2010.  If you’re thinking about selling, now may be the time to get the highest price of your home because of the rare opportunities created by the tax credit:

Increased pool of buyers. The tax credit has stimulated the real estate market and gotten many buyers off the fence.


Current inventory of homes in the Northwest Suburbs. More buyers in today’s market havefewer homes to choose from.


Existing homeowners who have lived in their current homes for five consecutive years out of the past eight are eligible for up to a $6500 tax credit when they purchase a new home.


The pool of home buyers for the spring market may become drastically smaller as the tax credit deadline nears which could mean longer days on the market and lower sales prices.


Local housing authorities such as the Illinois Housing Development Authority (IHDA) and area jurisdictions are now offering buyers mortgage loans that are specific to the First-Time Homebuyer Tax Credit. These loans may no longer be available after May 1, 2010.


Apply the tax credit on your new home purchase. Eligible properties include anything that will be used as a principal residence, including condos, townhomes, and single-family homes.

 Now all you need to know is what is your current residence worth!

Check out your free market report today

or

call Jan McNulty, RE/MAX Suburban

847-274-0535.