Article from RISMEDIA...read the full story
RISMEDIA, September 15, 2009-First-time home buyers have just 12 weeks to find and close on a home to qualify for the $8,000 Federal tax credit before the November 30th deadline. Those just beginning the process will have to beat the average time it takes to buy a home, a challenge smart buyers can meet even though it's taking longer today to close most transactions.
Two significant challenges first-time buyers face today include the potential for a lengthy process related to search and closing if not managed carefully at every step, and intensified competition. On average, first-time buyers search 12 weeks to find a home, while closing can take up to 60 days, depending on individual circumstances and local regulations. Additionally, the tax credit has proved to be extremely popular this year, since taking advantage of the first-time homebuyer's Federal tax credit and relevant state incentives is the most important reason motivating 10.8% of buyers today.
Realtor.com President Errol Samuelson explains, "The national median home today costs approximately 174,100. By moving quickly to find and close on a home by November 30, first-time buyers qualifying for the $8,000 tax credit can actually purchase this same home for only $166,100, an almost four and a half percent discount off of the price of a typical new home. Because affordability this year is at its highest level in 28 years, and the market offers an incredible selection of homes within reach of most first-time buyers, we expect their numbers to grow as they pursue today's once in a generation opportunity to become homeowners."
HERE IN VEGAS: The tax credit has helped move home inventory here in Las Vegas as well as lenders keeping foreclosures off the market,,,,maybe temporary though.
It also has created a problem for many first time homebuyers as they are getting out bid on homes they would like to purchase and since most first time homebuyers can only afford a certain amount, it is harder to win that bid. Even builder inventory has dwindled down.
This all maybe temporary as there are a lot of homes due to come on the market, it is just a matter of when, and if they wait too long to put them on the market, we may not have the tax credit so many buyers won't buy at that point. Many bills are trying to get passed to extend the tax credit, so it will be interesting to see what happens over the next 12 weeks.
Dawn Barrier EXP REALTY Las Vegas (702) 812-4550
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