In the Northern Virginia-Washington, DC Metro area, the $8,000 tax credit has been a tremendous incentive that has generated substantial market activity. I’ve recently helped two very young couples, in their early twenties, purchase their first house at a great price. It makes me happy to know that, because they now have a very low mortgage, they will be able to easily move up to a larger house in 5-10 years.
Another couple I worked with had sold their house in another state and relocated to Northern Virginia. Prices at that time were through the roof. As a result, they decided to rent until prices came down. They ended up waiting for over 3 years. When prices finally came down, they were now able to qualify as first time home buyers. As a result of this great timing, they purchased a beautiful house!
The combination of low interest rates, low prices and the tax credit has generated a buying frenzy in this area. Some listings are receiving bids $30,000 over list price after only 2 days on the market! This can only be a boost to the economy–so why discontinue the tax credit? After all, the tax “credit” is the buyer’s hard-earned money. Continue reading »