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First-Time Homebuyers Rush To Use Tax Credit, But Home Sales Still Down

Posted By admin || 24-Apr-2009

According to an article in the Dallas Morning News, home sales fell 3 percent in March despite aggressive efforts to encourage Americans to buy.

The article said:

The results were "a little disappointing" given that homes are more affordable than they've been in years and mortgage rates are near record lows, said Lawrence Yun, the National Association of Realtors 's chief economist.

The results may in fact be "disappointing" but the reality is that people can't buy homes if they have suffered job losses. There are literally millions of unemployed Americans struggling to survive and recover from a job loss. Because of this, many potential homebuyers simply are not in a position to buy, no matter how cheap the property is.

He said the rest of the country could start to see sales improve by early summer. Real estate agents are getting calls from first-time buyers looking to take advantage of a new $8,000 tax credit. And that should give a boost to sales figures for early summer.

That $8,000 tax credit is very tempting; but homebuyers need to be cautious or they could eventually become a foreclosure victim. Anyone considering buying a home must make sure that they can afford the home. They also need to make sure that they have a mortgage that won't explode and force them into foreclosure 3 or 5 years from now.

Interest rates are really low now; but since they're low, the only place they can go is up. Because of this fact, homebuyers should be cautious with adjustable rate mortgages because they could become a one-way ticket to foreclosure.

Categories: Economy
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