What's next on the Tax Credit Front?

As you know, it was recently announced “the government expanded the first-time homebuyer tax credit through April 30th, 2010, and added a new homebuyer tax credit for existing homeowners who are interested in purchasing a new home. With mortgage rates still at historic lows, and plenty of affordable homes on the market, this may be a great time to buy.” In fact, this may be the most affordable housing market that many of us have seen in our lifetimes.

So what does this mean for home buyers and sellers? Well, for starters, it may translate into an earlier than normal “spring market” for Richmond region real estate. We seemed to get a late start in 2009, with the initial tax credit pushing the market into the summer and fall months. The most recent tax credit extension and its expanded criteria for existing homes owners could start things rolling early in the New Year.

We also know that buyers and sellers have been sitting on the sidelines waiting for signs of economic improvement, or an opportunity that is just too good to pass up. The backlog of inactivity may correspondingly translate into housing sales starting early in 2010. For example, the revised tax credit and its April deadline seems to be responsible for the increase in listing activity VIRGINIA PROPERTIES is experiencing in November and December. As a result, this should boost home sales starting in January and continue into the spring.

We should keep a weather eye on the horizon; there is perhaps a wave of activity heading for Richmond spun-off by the tax credit front. As with most opportunities, the tax credit does have some specific requirements, so you should consult with your most trusted real estate advisor for details – because April 2010 will be here before you know it.

John VanderSyde is an Associate Broker with Virginia Properties, A Long & Foster Company, and is also a Licensed Architect. You can learn more about John and Ann by visiting www.InSydeHomes.com or by calling (804) 282-7300