End of Home Buyer Tax Credit Unlikely to Deter Most Real Estate Buyers

RISMEDIA, April 29, 2010—The expiration of the 2010 Home Buyer Tax Credits on April 30 is unlikely to put off Americans looking to purchase homes who believe now is a good time to buy and are confident that home prices will rise according to a survey released by Prudential Real Estate and Relocation Services, Inc. The survey of 1,000 Americans between the ages of 25-64 with at least $35,000 household income was conducted during April 15-20, 2010.

More than 90% of consumers believe that the home buyer tax credits have helped both first-time home buyers and the U.S. housing market overall.

“The tax credits clearly helped stimulate the market when consumer confidence was low and housing inventory was high,” said Earl Lee, president, Prudential Real Estate and Relocation Services, Inc. “While the tax credit expiration is a concern for many, the bigger issues now are the availability and cost of financing as well as if they will have a job.”

Despite the significant downturn in the real estate market, the survey underscores that the dream of homeownership and the perception that owning a home is a good investment remain intact. Among current renters, 75% still believe owning their home is a better long-term choice for their needs than renting.

“The real estate market is precariously balanced. Consumers are clearly motivated to take advantage of the opportunities the current low interest rates and prices afford,” Lee notes. “While the market is picking up in terms of sales and confidence, and the majority still believe that owning a home is a good investment, the outlook for the market remains highly dependent upon the direction of the economy overall.”

Buyers Rush to Meet Tax Credit Deadline

Nearly half the homes sold in March – 48.2 percent – were purchased by first-time buyers, according to a survey of more than 1,500 real estate practitioners by Campbell/Inside Mortgage Finance.

I think this is resulting in slightly higher home prices for certain properties. My experience with buyers is that they will choose those homes without a distress situation ie. short sale, foreclosure, auction...and actually pay a little bit more to save themselves from the aggravation and delays...interesting to think about.

"Many observers had felt that the pool of first time home buyers had been depleted last fall," Thomas Popik, research director for Campbell Surveys, said in a statement. "Instead, the normal spring-summer buying season is combining with the tax credit to produce blow-out results for first-time home buyers."



Source: Reuters news (04/19/2010)

This Weekend in Pepperell Rentals Open House April 18th 1-3

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Open House Sunday, April 11, 2010 1-3pm @ 77 River Road, Pepperell

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5 Tips to Help Teens Understand Importance of Financial Literacy

April is Financial Literacy Month, and the recently announced findings of the annual “Teens and Personal Finance Survey” conducted by Junior Achievement (JA) and the Allstate Foundation, indicate it might be wise to pay a little more attention to the importance of financial literacy–especially with teens.

According to the survey’s findings, 42% of the teens who don’t manage their money aren’t even interested in money management. Despite this lack of interest, 86% still think they’ll be as financially well-off or better off than their parents.

Communicate – It’s not easy to get your teen to talk or to listen, but try to include them in conversations about family finances. Help them build a better understanding about saving and budgeting through real life examples – like why there will be no vacation because the roof needs to be repaired or being able to buy a new car because you saved for it.

Encourage them to take responsibility for their own money and purchases – Don’t just handle everything for your teen. If they have a cell phone, do they pay the bill or even know the monthly cost? Tap into their interests and tie it to money, whether it’s music and what’s being spent on downloads, sports and the cost of events or equipment, or the latest fashion fad and finding a bargain or shopping at a resale store to achieve the same look. Get them in the habit of saving; even $1 a week can start a positive pattern that will last a lifetime.

Be a role model - Take a good look at what you do and say when it comes to money. If it seems to flow freely without any questions or concerns, then your teen might make the assumption money will always be there.

Provide positive reinforcement - When you talk money, the topic shouldn’t be all doom and gloom despite the current economy. Make the connection between the right decision and a reward. Notice smart choices and a little spending restraint, and compliment your teen on their wise money moves not just their mistakes.

Educate yourself, so you can educate your family - Make sure you’re armed with some financial knowledge so you can pass along that knowledge to your children. Beyond such basics as budgeting and saving, know what a good credit score is and the impact it has on your ability to get a mortgage, car loan or credit card.
RISMEDIA, April 5, 2010—