So Obama and Congress just passed a historic stimulus package to boost our economy but what does it mean for the real estate industry and prospective buyers?
Well one of the key components to the package was injecting $50 billion to stem foreclosures. Just to give you a relevant statistic, 2.3 million homeowners faced foreclosure proceedings in 2008, up 81% from 2007.
The scary thing is that some analysts believe that number could reach as high as 10 million Americans!
Another step in the right direction was the passing of an $8,000 tax credit (originally was $15,000) for first-time home buyers who buy before December 1, 2009 and occupy the home. That's 8 grand that you will not have to pay back and comes out of the taxes you pay!
Also integral, especially for our expensive Los Angeles market, is the increase in loan caps from $625,000 to $729,750 generated from FHA, Freddie and Fannie Mae.
Combine these incentives with tax credits for most wage earners ($400 for individuals and $800 for couples), plus still falling home prices and you've got a better reason to consider buying a home!
Thursday, February 19, 2009
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