Government Housing Stimulus Ends November 30, 2009

Buyers

If you’re a first time home buyer and want to buy a home, hurry before it’s too late.  Right now, the $8000 tax credit has not been extended yet, so lock that in if you plan to buy in the near term.  For a home that costs $300k, an $8k credit represents 2.7% of the cost of the home.  That’s more than people’s down payment during the real estate heyday!

Sellers

If you’re a seller and own a home in the$350k or below, the $8k stimulus still represents a good buyer incentive thereby propping up demand for your home.  So if you plan to sell your home in the near term, consider talking to a listing agent and examine your options.  If your home is $500k+ the stimulus does not effect your decision because most potential buyers in this price range are not first time buyers and likely will not meet the income requirements even if they’re first time home buyers.

Ben Bernanke said yesterday that the recession is likely over, but the recovery will be slow.  I can’t guarantee now is the best time to buy, but it doesn’t seem like a bad time if you can afford it.