When the new $8,000 Tax Credit was announced, I heard a lot of frustration from my clients who aren’t first-time home buyers.. and rightfully so.. but we had a lot of conversations about the ‘trickle-up’ effect it would have on them.
In other words, even though their pocketbooks didn’t directly benefit from the new credit, they’d still see some benefits; Those first-time home buyers were in a position now to take some of the entry-level homes off the market, allowing the sellers of those homes to move up to their next home (which may well be the homes these clients were trying to sell).
Now, after a few months, I think we’re finally seeing some of the results of these types of situations. ALL of our larger homes have experienced a surge in activity the past few weeks, and many of them are now under contract.
You know what, though? There are other benefits for the move-up home buyers, and the NAHB just published a nice little outline of some of those benefits. Here are the bullet points:
- Interest rates are at historic lows, which means you can buy more house than you could a year ago — for the same monthly mortgage payment.
- Prices have come down. Even if your current home is worth less than during the last housing market peak, your dream home is likely more affordable too.There are plenty of homes on the market right now, both new construction and existing, giving you lots of choice—and negotiating power.
- You can move in to your new home faster, as many builders either have completed homes in inventory or they can start work right away due to the production slowdown.
- You may have outgrown your home, but it’s probably someone else’s ideal starter home. With the $8,000 tax credit expiring Nov. 30, now is the time to market your home to first-time buyers.
About Ryan Hukill
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