Tampa Homes for Sale Feeling the Chill after a Hot Fall; Warm-up Not Expected Until Early Spring
A warm up in home sale is not expected until spring after they have cooled at the end of 2008. According to The National Association of Realtors, the index of pending home sales fell by 16 percent in November from October breaking a nine-month string of gains.
A representative from Tampa homes for sale stated that Florida, along with three other states – Arizona, California and Nevada – experienced double-digit increases in sales volume for existing homes overall in 2008.
October saw an increase in first-time homebuyers, they were scrambling to make the November 30 deadline for the tax incentive, which has now been extended to include repeat home buyers and then pushed back until June 2010.
The new federal tax incentive rules states that a home buyer must have a contract in place by April 30 and close on the home by the June 30 deadline in order to receive their tax credit.
A St. Petersburg realtor stated that distressed sales, which include foreclosed homes and short sales, are also drawing buyer’s interest which is giving hope to more than just the real estate agents, brokers and property management firms also benefitting from the increase in sales. Distressed homes are selling for 40 cents on the dollar and then an individual could turn around and sell it for 80 cents on the dollar, a nice profit margin.
The federal tax incentive is $8,000 for first-time home buyers and up to $6,500 for existing home buyers who purchase their newly constructed or pre-existing “new-to-them” home before the deadline. For existing home buyers, the guidelines they must meet is that they have been living in a home they are purchasing for three consecutive years and not have had purchased a new or existing house in the past five years.
Other motivation, such as free stuff, offered by the new construction companies or property management firms could also go a long way in attracting new home buyers. A year of free maintenance, lawn care or house cleaning would all make nice incentives to first-time home buyers all across the country.