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It depends on your price point. The under $200,000 market is hot. It starts getting worse after you hit $300,000...at least in my area. Some of the more expensive cities obviously those price points change.
Quote:
Originally Posted by GuyFriendly
It seems to be the same here in AZ, too.
Under $200K is definitely hot in Phoenix metro area with under 4 months supply. Not bad up to $300K where we cross 6 months supply. The OP's price range $350K-$400K is around 8 months. Mesa single family detached average is 3.7 months, with 83 days on market ($140K median price). Source The Cromford Report.
I have a niche market. You can see by my handle what it is. This week I have two closings. One is a farm with 85 acres and over 10,000 square feet of barns and the other is just 17 acres. I started the year by putting a farm under contract on January 1. I get calls on a regular basis from people who want to buy a "bug out destination". They feel that where they are now may not be safe in the near future. The hottest market here is farms and homes with 25 acres or more. I have one left at the moment. I wish I had a dozen to sell, but the owners are hanging on because they know they can survive where they are.
I live in a home built in 1885 on 107 acres. I know how the folks who built it lived and I could live that way if I had to.
The goverment throws away much more money elsewhere, this tax credit is just a drop in the bucket. Only a small percentage of homes sales are from buyers that file for the credit, I heard a report but forgot the number but I think it is single digit. Besides, the credit is nothing more than a house warming gift. It is not a financial vehicle for which people can buy thier house. You still must qualify for a loan and have a down payment, $8 is chump change in the big picture.
The goverment throws away much more money elsewhere, this tax credit is just a drop in the bucket. Only a small percentage of homes sales are from buyers that file for the credit, I heard
a report but forgot the number but I think it is single digit.
Excellent source you have there.
Quote:
Originally Posted by glenn_1000
Besides, the credit is nothing more than a house warming gift. It is not a financial vehicle for which people can buy thier house. You still must qualify for a loan and have a down payment, $8 is chump change in the big picture.
In a large part of the nation, this tax credit approaches 5-10% of the purchase price. Furthermore, the credit can be used as a downpayment...which on an FHA loan means the buyer is not actually bringing anything to the table...correct?
Under $200K is definitely hot in Phoenix metro area with under 4 months supply. Not bad up to $300K where we cross 6 months supply. The OP's price range $350K-$400K is around 8 months. Mesa single family detached average is 3.7 months, with 83 days on market ($140K median price). Source The Cromford Report.
I get calls on a regular basis from people who want to buy a "bug out destination". They feel that where they are now may not be safe in the near future. The hottest market here is farms and homes with 25 acres or more. I have one left at the moment. I wish I had a dozen to sell, but the owners are hanging on because they know they can survive where they are.
We've got about 200 acres of family land here in TX that we always knew if SHTF could be a safe haven. We currently have cattle and it's great black soil for crops if ever needed.
Last I heard those country farms with acreage was selling pretty good down here. There was a study done by TX A&M Real Estate Center that showed when the stock market went down, raw land prices went up.
In a large part of the nation, this tax credit approaches 5-10% of the purchase price. Furthermore, the credit can be used as a downpayment...which on an FHA loan means the buyer is not actually bringing anything to the table...correct?
Yeah, on a very, very, very small percentage of the number of homes sold. It is only a few states that allow you to borrow money against the credit. The majority get the credit after the sale.
5%-10% is still a very small number. You pay about 150-200% on a loan by the time it is paid off. So a $200k loan costs the buyer $300+k and they get a whopping $8k from the government.
Cash-for-clunkers however was a much bigger waste of money that only helped the automakers. Now the buyer gets $4.5k for buying a $15-20k car. Great deal for the buyer compared to the first time home credit.
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