I hope everyone is doing well. There have been some interesting developments in the financial and housing markets here in the area. My collegue, Mike Farrell, summarizes the recent changes below. Please don't hesitate to contact me regarding questions that you may have. The market here in Northern Virginia is selling. Prices have come down; however, the affordability index is excellent. The market is no longer a local Buyer's market...multiple offers are common place. Competition is fierce for well priced properties...Let me know if you are interested in additional market information...
Excerpt from Mike Farrell's recent update on Feb 16, 2009:
Mortgage rates are still at an all time low and it is still a great time to buy a home. If you were wondering how the new stimulus bill will effect you as you consider a new home purchase, here is some good data.
Later in the week, the House and the Senate agreed on a compromise $789 billion fiscal stimulus plan, which is expected to pass within days. The Obama administration estimates that the plan will create 3.5 million jobs. Both the House and the Senate had passed versions which were larger than the final compromise plan, and the reduction in scope helped mortgage markets. A smaller plan means that the government will have to issue less debt. Unfortunately, one of the spending cuts in the final plan was a provision for a $15,000 homebuyer tax credit, which came with an estimated price tag of $35 billion. Instead, the government will leave in place an existing $7,500 tax credit, applicable to only first time homebuyers. The primary change to the tax credit is that it will no longer need to be repaid. The estimated cost of this $7,500 tax break is less than $3 billion.
Let me know if I can answer any questions on the market for you.
Have a great March.
Keller Williams Realty
Northern Virginia REALTOR®
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