Great news for first time buyer as well as existing homeowner!  President Obama has signed into law the expanded and extended version of the Homeowners Tax Credit. First time homebuyers will now have until April 30, 2010 to purchase their new home and receive the $8000 tax credit.  What's new is that existing homeowners (those that have owned and lived in their home as their primary residence, for 5 of the last 8 years consecutively), will receive a $6500 tax credit if they purchase a new home before April 30, 2010.  Obviously, restrictions apply: The purchase price limit is $800,000, income limits for single buyers are $125,000 and $225,000 for a married couple and there is an additional $20,000 phase out.  Finally, another new provision ,is that the purchase does not have to close by April 30, 2010. The contract to buy must be dated no later than April 30, 2010 and the buyer will have until July 1, 2010 to close. This will be another "shot in the arm" for the ailing housing sector. 

Connecticut single family home sales increased 4% in July of this year according to the Warren Group, publisher of the Commercial Record.  The number of sales increased from 2834 in July 2008 to 2947 in July 2009.  A total of 12,470 sales have been recorded since January 2009.  This is a significant increase for Connecticut which has experienced declining sales numbers since July of 2007. 

Connecticut single family home sales increased 4% in July according to the Warren Group, publisher of the Commercial Record.  There were 2947 home sales in July of 2009 compared to 2834 in July of 2008.  A total of 12,470 single families have sold since the beginning of the year.  This is a significant increase for Connecticut which has experienced declining sales numbers since July of 2007. 

Consider the following: 1. Gold has retreated about 10% from its' historically high price of approximately $1000 an ounce 2. Existing home sale numbers have finally turned positive for the first time in months and 3. Home builders are starting to build new housing sensing demand is on the horizon.

The National Association of Realtors estimates the impact of the new economic stimulas package combined with lower interest rates and prices, will add 900,000 additional home sales in 2009. In addition, the housing inventory is expected to fall below an 8 months supply. This suggests that home prices will finally stabilize and a more normal market will return.

With a drop in mortgage interest rates below 5%, homeowners across the nation are beginning to refinace their homes keeping banks and mortgage companies alive during this economic housing downturn. The refinance activity is putting cash back into homeowners pockets as well as lowering payments so those financial strapped homeowners can thrwart the threat of foreclosure. Fannie Mae chief economist Doug Duncan says about 50% of those applying to refinance their mortgage are getting approved. This is down from the height of the real estate market boom where almost 70% of those who applied were approved.

Mary Jean Agostini, CCIM,CRS,CRB
Realty 3, Carroll & Agostini Realtors
1201 Farmington Avenue
Berlin, Ct. 06037
www.mjagostini.com / mjagostini@r3ca.com
860 828 3230/860 995 9665
"Servicing Clients Throughout Central Connecticut for over 22 years!"
"Selling a home every 6 days!"

According to the National Association of Realtors, existing home sales are expected to increase in 2009 after two years of declining sales. This is good news for consumers who had been sitting on the sidelines waiting for the market to hit a bottom. The number of units is expected to increase from 5 million units sold In 2008 to 5.3 million units sold. Along with number of sales, the average sales price of these existing homes is also expected to rise from $198,600 to $200,800 again indicating a turnaround in the housing market. With low prices, low interest rates and an abundance of inventory, consumers should take advantage of this extraordinary buyers market and start to purchase real estate.

 With the announcement by the federal government to pump another $800 billion into the credit markets, mortgage rates have finally fallen. The Fed's agreement to buy up mortgage backed securities from Freddie Mac was the catalyst the market needed to lower rates. Rates on a 30 year fixed loan are averaging between 5.25% and 5.75%. Almost .75% less than a week ago. This is great news for the housing market and we are hopefully that it will stimulate renewed interest in purchasing homes across the country.