Have you signed an agreement of sale before April 30th and are you eligible for either the $8000 or $6500 tax credit? I believe that congress will approve an extension for settlement from June 30th to September 30th. That does not mean that people are still going to be able to buy a home and receive the credit, but only those that had the agreement in and signed by both parties prior to April 30th will be eligible.
Have you or anyone you know finding difficulty in settling before the June 30th deadline due to mortgage companies being overwhelmed?
Several years ago drywall purchased from China was unknowingly used in many homes although not a lot in Pennsylvania. This defective drywall emits noxious fumes that corrode pipes and air conditioning coils. The government has now determined that the cost of replacing the drywall and repairing damaged pipes and appliances can be taken as a casualty loss. While this does not mean that anyone is getting a free ride who had to suffer because their home was built utilizing this drywall, but at least the money recouped in the loss can pretty much cover in most cases the cost of replacement and making the home safe for families.
Good News, we have just learned that securitized loans are back through Fannie Mae, Freddie Mac and FHA. As long as these three are available to buy and guarantee conventional loans, the housing market should continue to move forward. This is certainly good news for all of us!
After a real boom in sales for March and April and folks wanting to take advantage of the federal tax credits, the new mortgage applications sank about 27% to be the lowest in about three years. This was actually not unexpected as there was such a surge of new homebuyers coming into the market who stepped up their home search to take advantage of the home buyer’s tax credits. In order to take advantage of them the agreement of sale had to be executed prior to May 1, 2010 and settlement has to occur prior to July 1, 2010.
As Spring arrives it is expected that home sales will go up. There are certainly lots of opportunities to purchase homes at this time. The interest rates have in general gone down and there is enough inventory of homes for buyers to make a wise purchase. We have to believe that our market here in Berks County will see a steady increase.
Continued unemployment and belt tightening in our country as well as in our area continues to keep some people out of the market place. As the economy recovers and more and more people have confidence in our economy, we expect that the home purchases in our area will increase.
I will continue to keep you informed as the market grows and changes.
