Carlsbad, CA–The San Diego real estate market seems to be flooded with first time home buyers hoping to cash in on low prices and the generous $8000 income tax credit being handed to those buyers who haven’t owned property in the last three years.
We are working with buyers from both ends of the age spectrum.
One 70-ish buyer of a Carlsbad luxury home is recently widowed and qualifies under IRS guidelines as a first time home buyer. She qualifies not only for the federal largesse of $8000, but also (if still available) the California $10,000 tax credit for new construction, which is paid out over three years.
A few (very few) of our searchers were wise ones who sold circa 2005-2006 at the height of the San Diego real estate market–and squirreled their money away until ripe home buying conditions returned. These folk are now pulling their money out from mattresses and mutual funds and delight in being first time home buyers again because they have not owned in the past three years.
Most of our clients, though, are young and true first time home buyers who are so blessed to be both employed and in the middle of San Diego’s best buyer’s market in years. They resonate with our son Scott, who just bought his first home at La Costa Chateaus–at a price not seen in years. These first time buyers are looking at downtown San Diego condos, Carmel Valley townhomes, and Carlsbad entry-level homes and condos.
But the clock is ticking.
In order to receive this $8,000 tax credit, closing must occur prior to December 1, 2009. And if loan approvals are taking 30 to 60 days, that means the selected San Diego home or condo should be in escrow no later than September 30–and should NOT be a short sale, which could takes months to negotiate (if you are the successful bidder).
We are advising our buyers to move quickly and to have loan pre-approval in hand. And if you want an empathetic first time homebuying agent, please feel free to give Scott Murphy a call at 760-613-6190. He’s an experienced warrior!