Although I’m disappointed that the $15,000 tax credit for all homebuyers didn’t make it to the final Stimulus Bill, there are some incentives and an $8000 Tax-Credit for 1st-time homebuyers, And when homeowners are able to sell their homes to 1st-time homebuyers then they in turn will be able to “move-up” or “down-size” – thus creating ripples across the entire housing market. Along with some additional programs for 1st-time homebuyers available from NYS, these incentives should stimulate more activity in the housing market
Details about the Homeowner and Stability Plan announced today should be enumerated within the next few days. CNN Money has some eligibility examples on their web site that are helpful. Even if not directly affected, most homeowners will see a benefit to helping reduce the numbers of foreclosures. Keeping the numbers of houses for sale to a sustainable amount will bring some needed stability to the housing market. On Long Island, we have seen an increase in the numbers of sales since December. That is very positive news for our housing market and as long as inventory levels do not increase substantially, the upward trend in sales numbers should continue. The good news is very timely, now that we are about to start the Spring Market – our busiest time.
There has been some downward pressure on the higher-end market with an increase in inventory in that price range. In Dix Hills, Melville, SD#5, there currently are 53 homes listed above $1,000,000. Since November 1, 2008, five homes in that price range were placed Under Contract. Compare that to 157 homes under $1,000,000 currently Available with 37 homes placed Under Contract since November 1, 2008. Conditions for this price range also should improve in time – even if not directly affected by the announced housing programs.