According to this article from the National Association of Realtors, the first time buyer credit, which has now been extended until the middle of 2010, will help the market for Chicago real estate, and for real estate across the country, attain a sustainable recovery.
If you are a first time home buyer, you can qualify for the federal housing tax credit if you enter into a contract to buy a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. As the real estate market slowly recovers along with the economy, make sure to take part of the recovery and take advantage of the home buying incentives while you still can!
The NAR’s chief economist, Lawrence Yun, summed up the positive effects of the first time home buyer credit: “Given the success of the first-time buyer tax credit to date, and the need for qualified buyers to continue to absorb inventory that will include additional foreclosures over the coming year, we are hopeful about the impact of the expanded tax credit because it will stabilize home prices.” Especially for new home buyers, capitalizing on the tax credit and the buyer’s market that currently exists can allow you to afford a piece of Chicago real estate that might really be your dream property or investment.
The statistics of 2009 and the predicted trends for 2010 forecast a road to recovery for the Chicago real estate market, especially with the assistance of an extended first time home buyer incentive.2009-2010 Real Estate Stats
- First-time buyers accounted for a record 47% share of home sales in 2009, up from 41% in the 2008- Existing-home sales are expected to total 5.01 million in 2009, a gain of 2.0% over 2008
- Existing-home sales are forecast to rise 13.6% to 5.69 million in 2010
- New-home sales are projected to finish near 397,000 in 2009
- New-home sales are expected to recover to 549,000 in 2010
- Housing starts, or construction on new homes, should total 564,000 units in 2009
- Housing starts should grow to 752,000 in 2010
- Affordability will decline from record highs next year, but will remain at historically attractive levels for buyers
Risk Factors for Real Estate Recovery
The nation’s unemployment rate, the U.S. budget deficit, and the concern for future inflation could jeopardize the recovery of the real estate market. The unemployment rate, though high, is thankfully projected to decline over the next year. And because inflation-adjusted disposable personal income is estimated to grow 0.4% in 2009, and 1.2% in 2010, this risk is also not a major concern for recovery. With growing disposable incomes and the financial incentives for buying within the next 6 months, potential home buyers should act now.Chicago First Time Home Buyer Resources
To learn more about who qualifies and how to obtain the first time home buyer tax credit, check out the IRS’s explanation of the extended credit.See all the FAQs about the federal housing tax credit answered here, courtesy of the National Association of Homebuilders.
Repeat home buyers can “move up” with help from the government as well– learn about the repeat home buyer’s credit here.
There are special rules on the tax exemption for members of the Military, the Foreign Service and the Intelligence Community. Learn more here.
While the gradual stabilization of the real estate market is good for real estate companies like us and the economy as a whole, the first time home buyer credit and incredible buyer’s market out there in Chicago are great opportunities for potential buyers to take advantage of before next June. Navigating the buying process with all of these opportunities might be intimidating; a knowledgeable agent in the Chicago market can be your guide.
