75 days left on the 1st time home buyer tax credit!

If you hope to qualify for the $8,000 1st time home buyer tax credit, you are running out of time. The credit, which is part of the President’s stimulus package is set to expire December 1st. So in order to close by that date, a home would really need to be identified and placed under contract by mid September in order to close on time.

The Gintz Group, the developer I am working with to sell 27th Street Station Condos, have launched a push “blow out” all condo units by the time the stimulus expires. To this end they have dropped prices across the board. Their fully renovated, beautifully appointed homes range from $99,900 to $139,900. There is also a $4000 preferred lender bonus towards closing costs. They offer choice of one or two bedroom floor plans. More information can be found at www.27thStreetStation.com.

My suspicion is that the expiration of the tax incentive will slow the lower end market, but the big question is whether the market will have enough momentum at that point that we can avoid slipping into a winter slump. More to come...

Things are picking up in the Tacoma real estate market. It’s been a long ride since September of 2007 when the market really started slowing down. Tacoma isn’t a market known for volatility of real estate values. Rapid spikes in either direction are a phenomenon we generally associate with California. First we had several years of steep appreciation fueled by relaxed mortgage standards and low adjustable rate loans. Those same factors that lead us up the hill eventually led us back down. People’s rates reset, causing them to get behind in their payments. Foreclosures spiked here, like elsewhere, flooding the market with low priced homes. This along with buyer anxiety caused our sales numbers and values to slide for nearly two years. Hopefully the worst is behind us. The stimulus package included a first-time home buyer tax credit of $8,000 which is set to expire December 1st. It has helped sales, particularly with lower priced homes.

The Northwest Multiple Listing Service reported more home sales closed in Pierce County in July than in any month since August 2007. Nearly 21 percent more sales – of single-family homes and condominiums – were pending than were pending a year ago. David Gala and The Hume Group is cautiously optimistic at this point that the worst is behind us. Although mortgage standards have toughened, rates are still at historic lows. We are hopeful that Tacoma buyers will take advantage of these low rates, attractive prices and a plentiful supply of homes on the market from which to choose! If you would like to see what is available in your price range, give us a call!