Windermere North Spokane
Windermere North Spokane
Windermere North Spokane
Home    |    Careers    |    Blog    |    Get approved On-line    |    Email Us   

Stimulus Package Approved

Posted on February 17, 2009
 

Here's our take on the Stimulus situation as it pertains to the real estate market.

There are three primary components of the Stimulus package and the recently announced Treasury Plan that impact the residential real estate market:

Loan Limits Raised in High Cost Areas

Government backed loan limits were raised in high cost areas. That doesn't have a direct impact on our Spokane market, but it does help some of our feeder markets. When the markets are stabilized in places like Seattle and California it is easier for buyers to migrate into our community. More buyers = quicker stabilization of prices and the return to slow and steady appreciation.

The Tax Credit is Now a Real Tax Credit

The tax credit for first time homebuyers will be raised to $8,000 with NO payback [a true credit]. There are some qualifying parameters but essentially, if you earn less than $150,000 as a married couple, or $75,000 as an individual and have not owned a home in the previous three years, you qualify.

Relief for Distressed Homeowners

The bill contains over $50 billion for foreclosure mitigation. Coupled with Geitner's Treasury plan signaling that the second half of the TARP funds will be used to mitigate foreclosures through a government guarantee, that should help to slow down the flood of distressed properties entering the supply side of the market.
 
The Bottom Line.....Higher loan limits and real tax credits will create more buyers. Foreclosure mitigation, if successful, will reduce the number of homes on the market and protect sellers from competing with distressed properties. It sounds like a reasonable plan to rebalance the supply v. demand equation and bring stability and appreciation back to the marketplace. However, a plan is only as good as its successful execution so we'll be watching closely!

 

Share: del.icio.us Digg StumbleUpon
Post a Comment on "Stimulus Package Approved"
Name
Email
Website
Comment
 
9017 N Country Homes Blvd | Spokane, WA 99218 | Phone: 509-467-6640 | Fax: 509-466-3610
Spokane MLS Data last updated: 03/17/10 IDX Data is provided exclusively for 'consumers’ personal, non-commercial use, it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing, and that data is deemed reliable but is not guaranteed accurate by the SARMLS. Spokane MLS Data Copyright 2010 of the Spokane Association of REALTORS® MLS. All rights reserved.
©2010 GraphicalData, Inc.   Site Map