Tax Credit Extended- not just for 1st time buyers anymore

First off, my apologies for the delay since my last newsletter but all your referrals over this summer have kept me very busy...13 transactions closed in just the last 6 months! I want to thank all of you who used me as their Realtor and a special thanks to those that referred me business this year...keep an eye out for a special thank you in your mailbox.

I promise to keep a bi-monthly cycle going for my newsletters next year! Hold me to it!

Now onto the news...the most common question I receive as an active real estate agent is: "is the market headed up or down?" San Diego is a very unique and diverse real estate zone so this question can only be answered by price point and area.

*In entry level communities (inland- Mira Mesa, parts of downtown, Mission Valley corridor, etc.) and price points (up to $400k), the market is booming and there are more buyers than sellers.

*The move-up markets ($500k to $700k) have some activity but overall are basically stable.

*The luxury market ($750k and up) as well as coastal communites like Mission Beach, are somewhat stagnant with a lack of buyers.

It is important to understand that this market is distress driven based on the numbers of short sales and foreclosures. Typically this is a slower time of year in real estate as people tend to focus on family, holidays and travel. But this year we are not seeing any let up...distress doesn't take any holidays.

Additionally, this market is a government run market- interest rates have been suppressed to encourage lending, tax incentives have been applied and extended to encourage buying, and banks have been instructed to work with sellers in financial hardships. The movement of the market next year will be directly affected by the government's influence.

As a Realtor, I can say first hand that the low interest rates and tax incentives have had a dramatic impact on activity. With regards to buyer tax incentives, all you procrastinators have been given a 2nd chance to get in the market. Below are a few highlights of the recent extension of the tax credit. Email me with any questions.

Extension of Tax Credit:

1- First time home buyers- $8,000 credit

2- April 30th, 2010 deadline to be in contract

3- June 30th, 2010 deadline to close on the home

4- Credit won't apply if you earn more than $125k per year or $225k as joint filers

5- Purchase price of home needs to be under $800k

6- $6,500 credit available to home owners that have lived in their current residence for at least 5 years...you don't need to sell this residence to qualify. So you can move-up and hold your current residence as an investment and still qualify for the $6,500.