We are going into what may prove to be two of the hottest real estate months this year – March and April. Historically, these months are average, but this year may prove differently as the existing: http://www.federalhousingtaxcredit.com/faq2.php and first time home buyer’s tax credits: http://www.federalhousingtaxcredit.com/faq1.php require a contract to be written by April 30th. We’re likely to see an increase in buying as these deadlines get closer.
Other lending policies may also affect the over all real estate market. For example, the FHA is raising its upfront mortgage insurance fee to 2.25% from 1.75%. This increases the amount of cash a buyer would need to bring to closing or finance a $200,000 mortgage by $1,000. They are also increasing down payment req uirements to 10% for borrowers with credit scores of 580 and below (up from 3.5%) according to Realtor Magazine: http://www.realtor.org/rmonews_and_commentary/articles/2010/1003_fharules.
Also, with the uncertainty surrounding the feds decision on mortgage backed security purchases: http://www.washingtonpost.com/wp-dyn/content/article/2010/02/04/AR2010020404363.html, many are predicting higher interest rates going forward.
On a different note, Huntsville was recently ranked #2 out of 387 metro areas in terms of expected job growth by Moody’s: http://www.al.com/business/huntsvilletimes/index.ssf?/base/business/1266606979114550.xml&coll=1. I think e veryone will agree that we are very blessed to live in the Huntsville/Madison area!
Please feel free to contact me if you are:
a) A seller who wants to take advantage of possible increased demand over the next 2 months
b) A purchaser who wants to take advantage of tax incentives to purchase over the next 2 months
PS Don’t forget to use my free home value tracking tool at: www.MadisonALHomeValue.com!
Matt Curtis
Nominated as Top 50 Realtor Under Age 30 in US
Broker – Matt Curtis Real Estate, Inc
Cell: 256.425.4955
Matt@MattCurtisRealEstate.com
www.MattCurtisRealEstate.com
