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Home sales up due to increasing affordability, California's $10,000 tax credit
Bay Area real estate agents are seeing increased business since the last few months. While not many are confident enough to declare this as the much awaited turn around but it seems that either the bottom of the market has already been hit or is in easy reach. However, a voluntary foreclosure moratorium that many lenders were observing has just expired on the 1st of April and hence, there is some kind of apprehension in the minds of homeowners and investors.
What is positive about the recent interest in real estate is that multiple offers have been received for many properties - such a phenomenon should begin driving area prices up under usual market conditions but this is still not the case.
California's $10,000 tax credit for new-home buyers that came in three weeks ago may also be helping the real estate market turnaround. Under this scheme, nearly 10,000 home buyers across the state shall be able to avail up to $3,333 off on state taxes for each of the first three years after buying a home. First-time as well as move-up buyers are eligible for this tax credit. No income limits have been prescribed and what's great is that first-time buyers can combine it with a new $8,000 federal tax credit.
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