Tarpley & Underwood
Financial Advisors, LLC
Breaks for Homebuyers
If you extend this trend a year or two, it's easy to imagine that eventually Congress will be buying everybody a nice house with taxpayer dollars. But is further stimulus necessary? Mortgage rates are near record lows, and home mortgage interest is still deductible. The National Association of Realtors, which tracks home sales, found that existing home sales were up 5% in 2009 over 2008; overall market activity is up 21% from the bottom. According to statistics from the Department of Housing and Urban Development and the U.S. Census Bureau, a supply of 7.2 months worth of new homes is available for purchase--close to the 6 month level that is normal for a healthy market. The average sale price dropped 12% last year, but gained 1.5% in December, which means your home may finally be gaining in value again, as buyers finance their purchases with tax dollars.
This article contains opinions which may not reflect the views of Tarpley & Underwood Financial Advisors, LLC and should not be construed as investment advice. Tarpley & Underwood Financial Advisors, LLC does not provide tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your financial professional for further information.
