Are you a broker/agent--how will it affect your business?
Wholesalers--what will it do for you?
Will it stimulate a substantial amount of transactions in your area?
One requirement is that you must have owned your primary residence for at least 5 years. This is probably a pretty strong group, financially. $6500 may not be enough to entice them, but if they are on the fence it might cause them to buy. Or if they were going to buy in the next couple of years, they might move up the purchase date. Or they might see this as an opportunity to unload their home now.
I suspect it will do more good in the long run than the $8,000 first time buyers credit.
People who have owned a house for 5 years are going to be more financially stable than first time buyers who can't get together a down payment without the government chipping in.
I know a few people (lots of people) who have told me they want to buy, but they are waiting for the bottom of the market. Well, prices are plenty low right now and take another $6500 off the price and it's even more attractive. Banks are starting to give mortgages again.
The big catch is that in order to buy, they must sell their existing house first. I don't know how long that $6500 credit is good for, but if it expires too soon, few are going to be able to take advantage of it.
I also know peole who sold at the top of the market, put their money into savings and waited. But it sounds to me like the guys with cash to buy aren't going to qualify because they sold their house 2 years ago, therefore haven't been living in their house for the past 5 years.
It means that there will be many that will attempt to move up into a costlier house when they really cant afford their current house within their economic limits.
This will mean short term better looking figures at the expense of longer time for a good recovery to take place by market stimulus, which is the only sustainable growth.
It also means another round of foreclosures in the future to take advantage of. Which says to me that we will be in a buy and hold period for a while to achieve best results.
I am sure that it will cause some people to think about upgrading their current home, but the $6500 barely covers closing costs, so I doubt it is enough to motivate a significant number of people.
I do believe it may help those families who need to relocate for jobs or for retirement sell their existing homes. That will be good for my market.
I'm frankly confused by this bill. I get the $8k, and I see why they added the additional $6,500 credit to incentivize people to buy a new home, but again, why exclude other current home owners from getting credits on a new home purchase?
Oh wait . . . that will be in the next bill . . . :roll:
I suspect it will do more good in the long run than the $8,000 first time buyers credit.
People who have owned a house for 5 years are going to be more financially stable than first time buyers who can't get together a down payment without the government chipping in.
I know a few people (lots of people) who have told me they want to buy, but they are waiting for the bottom of the market. Well, prices are plenty low right now and take another $6500 off the price and it's even more attractive. Banks are starting to give mortgages again.
The big catch is that in order to buy, they must sell their existing house first. I don't know how long that $6500 credit is good for, but if it expires too soon, few are going to be able to take advantage of it.
I also know peole who sold at the top of the market, put their money into savings and waited. But it sounds to me like the guys with cash to buy aren't going to qualify because they sold their house 2 years ago, therefore haven't been living in their house for the past 5 years.
wondering if anyone can answer my question about the $6500 credit. If two unmarried people are on the deed and house has been primary residence for 5 yrs,can one of them qualify for the $6500 to buy a house of their own?
I suspect it will do more good in the long run than the $8,000 first time buyers credit.
People who have owned a house for 5 years are going to be more financially stable than first time buyers who can't get together a down payment without the government chipping in.
I know a few people (lots of people) who have told me they want to buy, but they are waiting for the bottom of the market. Well, prices are plenty low right now and take another $6500 off the price and it's even more attractive. Banks are starting to give mortgages again.
The big catch is that in order to buy, they must sell their existing house first. I don't know how long that $6500 credit is good for, but if it expires too soon, few are going to be able to take advantage of it.
I also know peole who sold at the top of the market, put their money into savings and waited. But it sounds to me like the guys with cash to buy aren't going to qualify because they sold their house 2 years ago, therefore haven't been living in their house for the past 5 years.
I disagree with the first statement, however your last one here is incorrect. The 6500 qualifier is to those who have owned a home for at least 3 of the last 5 years so if they sold two years ago they still qualify(unless they changed things since the last draft that I looked at). If they sold 3 years ago they would not qualify and it (as of now) is good only thru June.