These are very big days any home Buyer. April 30th marks the last day a Buyer can be in a fully executed Contract and qualify for the Federal Tax Credit. And, May 1st marks the beginning of the California Tax Credit. Some, but not many, will actually get both credits for up to $18,000 in credits! This is huge and has brought an onslaught of Buyers to the table. Those that were on the fence, jumped off. But what does the end of these credits mean?
Well, interest rates and home prices will remain low. In fact, some Buyers might walk away for a while and save up some more (money) before writing (offers) again so we might see a dip in the market over the summer (which is highly unusual). We won’t really know what these credits coming and going will mean until they’ve already come and gone.
My advice, as always, is to buy only when you’re willing and able. If you try to push yourself into homeownership, you could find yourself in over your head. It’s a huge responsibility and if you’re not mentally and financially prepared, it can quickly be more than you’re prepared to handle. Best rule of thumb for my renters is to figure out what your mortgage would be and start saving the difference between your rent and the mortgage amount. Not only will this prepare you for the mortgage payment each month but you’ll begin building your down payment amount!