Palm Springs Real Estate – Why Wait?
March 30, 2009
Fence Sitting Can Be Harmful to Your Home Buying Power in Palm Springs
Anyone who has worked with us in Palm Springs, California knows that we are not salespeople. As Realtors, we strive to educate you, our Buyer clients, about the value of local property, and our Seller clients about our potent Internet marketing strategies. This means that you can depend on us to provide unbiased straight-talk, answer all your questions about Palm Springs and to explain why you shouldn’t be sitting on the fence.
You’d Have To Try To Make A Mistake
Palm Springs real estate inventory is abundant. Asking prices have been adjusted to reality after skyrocketing out of control during the artificial housing boom. Interest rates are near historic lows. Conforming and Jumbo loans are readily available and the FHA offers loans at 3.5% down. Some Sellers will consider carrying a Second. Now is the time to make offers on the home you’ve dreamed about.
You may not realize that there’s also a California State tax credit available to you if you purchase a new, previously unoccupied home by February 28, 2010 – 5% of the purchase price up to $10,000 offered on a first come, first served basis (funds for the program are capped at $100 million).
Also, President Barak Obama signed H.R.1, The American Recovery Reinvestment Act of 2009 into law. Buyers will be provided up to an $8,000 tax credit. The credit will be available to those home purchasers that close escrow on a home between January 1, 2009 and December 1, 2009.
The tax deduction lets first-time buyers claim a credit worth $8,000, or 10 percent of the home’s value, whichever is less – on their 2008 or 2009 taxes. A big plus is the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill was less than that amount. You must be a first time home buyer. By definition, this means you (and your spouse, if buying jointly) must not have been a home owner for the past 3 years. And there are other conditions in the American Recovery and Investment Act of 2009 that home buyers will want to know.
Your Palm Springs Crystal Ball
Of course, nobody can guarantee how the future and economy will unfold. The only way to determine that the market has hit bottom is by looking in the rear view mirror when we’re well down the recovery road and can look back. I’ve always thought it ludicrous when a Buyer says they are waiting for the bottom of the market. Make an educated offer! We can guide you to a realistic opinion of value based upon the comparable Palm Springs real estate and our knowledge of this specific area. What’s this home worth to you? Sellers realize that they need to negotiate. It’s crazy to wait.
Since the Coachella Valley (Palm Springs, CA area) is a resort destination, the overarching media reports and statistics often don’t apply. Sure, we’ve been impacted by the economy too, but we’ve already begun our turnaround. We know that those of you from the surrounding major counties of Los Angeles, San Diego and Orange will always find the 2-3 hour drive to relaxation very desirable. Same with those of you who are “snowbirds” who escape the cold ravages of winter by coming to our kinder, beautiful climate where golf and tennis (or an array of outdoor activities) are daily possibilities.
The local Palm Springs California newspaper, The Desert Sun, had a Special Report, front page story about 2008 fourth quarter housing results. Statistics provided by real estate stats firm Real Data Strategies shows that sales of entry-level homes dominated sales last quarter with a 58% gain over 4Q 2007.
What this means is that these robust lower priced home sales will now begin to stimulate the next level. Again, now is the time to buy! There are new homes, resales, REO’s (Bank Owned) and Short Sales (property value less than the current mortgage) to consider. Don’t forget how fortunate we are to be able to access this luxurious oasis with all its recreational and social amenities. Take advantage of the lower prices!
