Good News For the Home Buyer and the Real Estate Market
By Ryan Tollefsen

The recession could be a good thing for new home buyers with the tax credit that is being offered to new home buyers. A tax credit of up to $15,000 or ten percent of the purchase price of an new or existing home spread over two years is good new especially with home prices at historic lows in some areas. This could make a real estate purchase this year a great bargain for home buyers. There is also talk of a mortgage interest rate drop to between four and four and one half percent for a fixed rate thirty year mortgage for buying a home and for mortgage refinancing. This can make a huge difference in your monthly payments when you are purchasing a new home.

These new incentives to jump the economy will be very beneficial for those who are looking to buy or sell a home. The real estate business went through a similar scenario in the seventies with large inventories of homes and price declines in real estate. The $2,000 incentive given to home buyers helped balance the real estate market and helped the country pull out of a recession in 1975.

Now may be the chance that many people have been waiting for to get into a new home. Even though lenders have tightened down on credit and require larger down payments now than in years past, this tax credit will be a benefit to many people who might not otherwise be able to move into a new home.

Owning your own home has always been a part of the American dream, and this tax credit may be just what many Americans need to fulfill that dream. Home prices in most areas are at the lowest they have been in years so now it is possible to buy more house with less money. Real estate is still an excellent investment for a family; when you pay rent it is just like throwing money down the drain. Many times for no more than what a family is paying to rent a home, they can be putting that money into a house that will be theirs for as long as they wish.

The new tax credit and the possibility of lower interest 30 year mortgages should boost the real estate market in areas that have been hit hard by the recession. Real estate is a local business; some areas are not experiencing the problems that Las Vegas and parts of California and other areas have been struggling with the past year or so.

Purchasing a home, the right home that you can afford and enjoy for years to come is an exciting event in most people's lives. It is usually the largest purchase that they will ever make and will increase in value over the long term. Many of the problems that are being experienced now are due to mortgage rates that fluctuated greatly and people buying homes that they couldn't afford when these rates went up. It is important to talk to an experienced real estate agent that can help you calculate how much house you can afford.

Learn more about the Alaska Real Estate market or search Anchorage Real Estate on Ryan Tollefsen's Alaska Real Estate web site.

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