July saw the largest increase in home sales in at least ten years, which brings hope for all the homes for sale in Santa Cruz. What’s the culprit for this more-than-expected rise? The first-time buyers tax credit!
The $8,000 tax credit first time buyers are eligible for expires November 30, 2009. Buyers that otherwise may have stood on the side lines are rushing to find the home of their dreams in time for the closing to happen before the deadline. Thanks to that deadline, one out of three homes for sale are getting that coveted “Sold” sign.
So why should buyers beware?
If you’re holding off for a better time to buy one of the homes for sale in Santa Cruz, you might never see it! Mortgage interest rates are at a historical low; housing prices are also much lower than they have been.
The tax credit is another excellent reason. If you’re a first-time buyer and close the deal before November 30, you get a 10% credit on the purchase price. That percentage caps out at $8,000. What can you do in a new house with $8,000?
Many buyers are looking at foreclosures, due to lower costs. While the foreclosures may not be in the best condition, the tax credit has helped them make repairs without taking a huge bite out of their wallet. You may have a foreclosure with $15,000 off the initial price and $7,000 in needed repairs. If you receive the full $8,000 tax credit, you actually end up saving $16,000!
So, if you’re honestly looking for a home to buy, go ahead. Take your time; make sure it’s a home you want. However, don’t take too long, because the homes for sale in Santa Cruz are rapidly disappearing. Take advantage of the tax credit and the number of possibilities!
If you’re looking for a great home, I can help. Call me at 831.662.6522 or email me at lauren@laurenspencer.com for more information.
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