July Shows Home Sales Skyrocketing

July shows home sales skyrocketing to a two year high. Could this be the beginning of the housing recovery? The $8000 Tax Credit has had a huge impact on home sales. The National Association Of Realtors estimates that over two million new home buyers will take advantage of the First Time Home Buyers Tax Credit. Many of these first time buyers would not have decided to purchase this year but did not want to miss out on the $8000. The program ends on December 1st. This means that you have to actually close on your home by December 1st. To close you must have a contract thirty to forty five days out. There is still plenty of time to find a home, negotiate the contract and close by December 1st. But don’t wait to long. Some believe that the government will extend the government program but at this time no one knows.
The NAR calculates that home sales rose 3.2 percent in July is the the highest rise since June of 2007. A sign that the bottom has been hit and on the upturn. Also a sign that the program or a similar program needs to be implemented or there may be a sharp decline in home sale during the first quarter of 2010.
Some of the good news of increase home sales was the fact that mortgage defaults and late payments continue to rise across the country. The FDIC states there insured banks bought back $1.9 billion in defaulted mortgages during April, May and June of this year. This is a decrease from last year so there Ultra Modern Bedroom Designs is a bright spot. Company downsizing and layoffs is fueling the late payments and defaults. The risks of default on home mortgages will stay on the front burner as long as unemployment and layoffs continue. As the economy continues to right itself and companies begin to hire again, this will slow.
The mortgage defaults and the recovery are both broad based throughout the country. How To Decorate Small House The Tax Credit has added to the fact that housing affordability is at record highs.
This is a great time to be a home buyer. Housing prices are affordable. Mortgage rates are at historic lows. The government has an $8000 Tax Credit. Some cities have stimulus money they are adding on to the $8000. In Fort Worth Texas the city is giving $25,000 if you buy a foreclosure in certain zip codes. In some of these areas the subdivision is less than five years old. It is a great area and a great opportunity to get into your dream home and have $32,000. This money can be used to pay for your down payment. You could also put the $32,000 down on you loan and have instant equity in your home. This is a great opportunity that will not last forever. The time is right. There are homes to choose from. Mortgage rates are low. The government is giving incentives to spice up the deal. It is a situation that won’t last forever. Don’t miss out…

READ  Home Insurance - 'Home Sweet Home'