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Vero Beach First -Time Buyers Race to Qualify
for $8K Tax Credit
Homes for Sale in Vero Beach Fl See Increase in
Buyers
2009 Florida Realtors - Sept 20,
2009
First-time homebuyers have just 10 weeks to find and close on a
home to qualify for the $8,000 federal tax credit by Nov. 30 -
before the Dec. 1, 2009, deadline.
Those just beginning the process will have to beat the average
time it takes to buy a home, a challenge that real estate
professionals can help buyers meet even though it’s taking
longer today to close most transactions today, according to
Realtor.com officials.
On average, first-time buyers search 12 weeks to find a home,
while closing can take up to 60 days, depending on individual
circumstances and local regulations.
Additionally, the tax credit has proved to be extremely popular
this year: studies show that taking advantage of the first-time
homebuyer’s federal tax credit and relevant state incentives is
the most important reason motivating 10.8 percent of buyers
today. In fact, approximately 1.14 million buyers have already
filed for the credit. Many more are expected to file for the
credit when income taxes are due April 2010.
Historically high affordability is a major factor driving
first-time homebuyers today, a growing group that accounted for
one third of all purchases in July 2009, according to a survey
by the National Association of Realtors®.
NAR’s affordability index in July 2009 was 36.0 percentage
points higher than July 2008. Under these conditions, the
typical median-income family can allocate 15.8 percent of their
gross income to mortgage payments, well below the traditional
allowance of 25 percent. Interest rates, which play a major
factor in affordability, remain low, and averaged 5.22 percent
in July for a 30-year fixed rate loan.
Realtor.com President Errol Samuelson said, “The national
median home today costs approximately $174,100. By moving
quickly to find and close on a home by Nov. 30, first-time
buyers qualifying for the $8,000 tax credit can actually
purchase this same home for only $166,100, an almost 4.5
percent discount off of the price of a typical new home.
Because affordability this year is at its highest level in 28
years, and the market offers an incredible selection of homes
within reach of most first-time buyers, we expect their numbers
to grow as they pursue this once-in-a-generation opportunity to
become homeowners.”
He added that by combining the effective use of technology for
information-gathering with expert advice from local Realtors,
today’s first-time home buyers can beat the clock and use the
$8,000 federal tax credit, along with any available state-level
credits, to purchase a home before the Dec. 1 deadline.
“By moving quickly, being prepared to make decisions in the
face of increased competition, and using the expertise of a
real estate professional, first-time homebuyers can still close
on time and qualify for the $8,000 federal tax credit,”
Samuelson said.
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