The market is showing signs of a slow recovery, but it is changing. One of things that is helping the recovery along is the tax credit. The federal government will give qualified buyers a $8000 tax credit for purchasing a home. That’s right!! $8000. So, if you’re planning to buy a home, now is the time before the program expires, 11/30/09. The purchase has to be completed by 11/30/09 to qualify. There is talk about extending the program but there is no guarantee that it will be extended. For more information about the program, please click on the link below or let me know and I’ll be happy to assist you.
http://www.realtor.org/government_affairs/gapublic/homebuyer_tax_credit
Summer is almost over and I hope you’re enjoying the season.
The worst recession in 70 yeas is also showing signs of being over too. The Commerce Dept. reported that the economy shrank at an annualized rate of 1% which is better then the 6.4% shrinkage in the first quarter of this year. Economist think the economy is poised for growth, but slowly. You can read more of the state of the economy by clicking this link: http://rismedia.com/2009-08-03/signs-of-life-slower-decline-may-signal-recessions-end/.
The market currently in San Mateo county is also showing signs of a rebound. The information below is from the San Mateo MLS showing the market activity from the end of the 1st quarter to the end of the 2nd quarter. As you can see there has been an increase of new listings, a decrease of homes for sale, an increase of homes sold, a decrease of marketing time, the average sales price increased, and the median price increased. This is totally opposite of what the market was doing last year. If you would like more information about your area, please let me know and I’ll be happy to furnish you the information.
| Single Family Residential |
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| Years |
New Listings |
Current Inventory |
Closed Sales |
Average DOM |
Average Sales Price |
Median Sales Price |
Total Sales Volume |
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| 2009-Q1 |
1689 |
1627 |
635 |
84 |
738,831 |
560,000 |
468,419,476 |
|
| 2009-Q2 |
1768 |
1500 |
1066 |
75 |
893,332 |
682,500 |
949,612,038 |
|
| Summary |
7428 |
1285 |
3833 |
70 |
1,013,672 |
|
3,880,337,152 |
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It’s not too late to purchase something now. Buyers still can get tax credits for buying their first home, interest rates are still low and affordable, and the prices have bottomed out and are on the way up. I can tell you that the days of multiple offers are here again in a lot of areas.
Buyers today have a great selection of homes that are for sale.
Some areas are flooded with Foreclosures, REOs and Short Sales, which increases the number of homes for sale and the prices are usually lower, therefore making the price range lower. As a result, many of the REOs are getting more then 1 offer. This is a sign that prices are at a point where it could go back up. Buyers are making offers above the asking price therefore stopping the downward spiral of the price range.
It is still a good time to buy because interest rates are still low and you have choices. Also, for a limited time, both the federal government and the state of California are providing buyers with a tax credit for purchasing a home. This could be as much as $18,000 combined. If you’re thinking about buying a home, don’t wait for the increase in interest rates. It may force you out of the market.
Here is a news cast about the market place, a survey from the California Association of Realtors and some information about the tax credits. Just copy and paste it in your browser.
http://www.car.org/newsstand/newsreleases/jan09salesandprice/
http://cbs5.com/video/?id=47401@kpix.dayport.com
http://www.car.org/legal/2009-qa/homebuyer-tax-credit-chart/
