…may be right now! The $8,000 tax credit for first-time homebuyers and the $6,500 tax credit for existing home buyers is about to end. The tax credit now applies to sales occurring on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify. The income limits are $125,000 for single taxpayers and $225,000 for married couples filing joint returns. For answers to your questions regarding this Federal Housing Tax Credit, go to www.federalhousingtaxcredit.com.
Several signs point to an impending recovery in the Denver housing market, so the timing is perfect to purchase a home, especially since mortgage rates are near historic lows but are expected to rise later in the year. Denver home prices have already started to rise. The online real estate valuation firm, Zillow.com, reported that Denver and its suburbs recorded the biggest dollar gain in home values of any metro area in the country last year. Denver home values rose by $7.87 billion in 2009, recouping some of the $20 billion shed in 2008, Zillow said in its fourth-quarter real estate report. Many metro areas have seen a sharp decrease in the supply of foreclosed homes coming to sale, resulting in more stable home values.
In January, the median price for a single family home in the Denver area was $210,000, up nearly 16 percent from $181,500 in January last year. The upswing in pricing is a function of the mix and available inventory which has been declining for almost three years. The number of homes on the market declined 9.9 percent to 17,785 compared to the same time last year. The low inventory is beginning to put pressure on pricing because there is not much available in the lower price ranges.
Forbes recently listed Denver as one of the top five metro areas where renters should buy now, with market conditions making it a particularly good time for some renters to take advantage of the government push to make homeowners out of the one-third of Americans who still rent their homes. They predict a five year home price index rise of 12.34% in the Denver area. Although rental rates have fallen, it has not been nearly as rapidly as home prices.
So, if you’ve been thinking about buying a home, take advantage of the current tax breaks, low prices and interest rates. They won’t be around much longer! Call the Arnie Stein Team today to help you take advantage of the compelling reasons to buy real estate in Denver.