More Homes and Buyers Qualify Under Tax Credit

I wanted to give a bit more information on the newly signed tax credit because it will have an impact on our local market since it now includes both first time buyers and move-up buyers. The biggest plus for the Alameda market is the legislation increases the income limit for buyers.

Under the prior credit it would have been very difficult for someone to purchase in Alameda give the income limit and the ability to qualify for a loan at the median price. Now that both first time and “move up” buyers, income limits have been increased to 125,000 dollars for single filers and 225,000 dollars for joint filers it is more reaslist for Alameda and Bay Area buyers.

The tax credit is only available on homes priced under 800,000 dollars but with the current Alameda inventory that includes that includes 82 of the current 119 properties for sale; 70 percent.

Similar to previous tax credits, first-time buyers are still eligible to receive up to 8,000 dollars, but this time “move-up” buyers are also eligible to receive up to 6,500 dollars, and income limits have been significantly raised across the board.Here are a few key points about this new tax credit:
To be eligible for the “move up” buyer tax credit, you must have been living in your principal residence for five consecutive years out of the last eight.

To take advantage of the tax credit you will need to make a qualified home purchase before April 30, 2010 and it has to close by June 30, 2010.

Given current interest rates, the tax credit and prices lower than we have seen in about eight years it may be time to start looking for a home in the non-traditional selling season.

ZipRealty put together an informationa video on the tax credit.



Inventory Data November 9, 2009

. . 11/9/2009 . Total 119 . 94501 92 . 94502 27 . SFR 72 . Condo 25 . Multi-Family 20 . Short Sale 19 . Foreclosure 11 . Price Reductions 44 . High List $1,899,000 . Low List $210,000 .