So are you a first time home buyer on the fence on when to buy, or are you in the market for your dream home? If your answer is yes to either of these questions make sure you read through this market update. Also, if you bought a home in 2009 click here to obtain your “Homestead Exemption” form and make sure you submit it by February 1st, 2010.
First, however, I want to express a big “thank you” to all of you who participated in our “Dinner on the Lake” Client Appreciation Party or our title sponsorship for injured veterans in “A Fight Gone Bad“ Endurance Challenge. Click the links to see photos of both events.
As you may know, the First Time Home Buyer Tax Credit has been extended to April 30, 2010. Additionally, a $6,500 tax credit has been approved for repeat buyers that purchase in the same time frame. Click here to see the details on these tax credits.
I have been predicting an increase in home mortgage rates as we move into 2010. Currently, home mortgage rates are being artificially held lower due to the Federal Reserve buying Mortgage Backed Securities (MBS). This buying program will run out in the first quarter of 2010 as the Fed depletes the $1.25 trillion program budget. Without this artificial demand the market for these securities will diminish significantly and interest rates will move up accordingly.
Within Austin we saw a 6% increase in house sales while the average price remained unchanged near $240,000. Condos, however, saw a significant 14% decrease in average sales price and a 24% increase in sales. Central South Austin was the hottest selling area last month driven primarily by buyers leveraging the First Time Home Buyer Tax Credit.