Playa Vista Home Sales Real Estate Blog

California Home Buying Tax Credit in 2010? – 1.29.2010

The market continues to be very active, especially within the entry-level price range and up to $550,000.  For example; last week, a 980 sq. ft. 2-bedroom condo entered the market and in only one day, went pending.  With low inventory and limited quality listings, buyers are competing for reasonably priced properties in good condition and in quiet locations.

We expect to see this level of market activity remain high during the entire first quarter of this year, due to many homebuyers that are taking advantage of the federal home buying tax credit.  Additionally, with help coming from the Federal Government, the market may receive an additional boost from the state as well.  

According to the Sacramento Bee, California Governor Schwarzenegger announced a plan that would help stimulate the California housing market so that new California homebuyers would get state tax credits of up to $10,000 this year under a new stimulus proposed Wednesday, January 6, 2010.

This plan will allocate $200 million in credits for buyers of both existing and new homes in California. This announcement came in the governor’s annual State of the State address.  Conditions of the proposal are, apparently similar to last year’s tax credit such as no income limits, which made all buyers eligible with the requirement that buyers live in their homes.  This credit would be in addition to the $8,000 federal first-time homebuyer tax credit that expires on April 30, 2010.

The proposal is now before state lawmakers for consideration with no date set for eligibility as of yet.  Buyers, who qualified last year, did so by closing escrow after the credits became available on March 1.  Buyers currently in the market should watch this closely for a positive approval. Therefore, if you have not begun looking yet, do not wait. As incredible as it sounds, once the funds are gone, buyers will find that the credit is gone as well. Prices are still great, interest rates are incredible and now you could receive a $18,000 tax credit!

For more information, please visit http://gov.ca.gov/speech/14194/.

I would be happy to speak to you with more detail, should you like more information on the topics discussed above, properties listed below, or more information about Playa Vista real estate.

Have a wonderful weekend!