Lake County real estate experet, Andee Houseman, reporets that The market realized an increase in first time home buyers recently, because of the American Recovery Act signed into effect by President Obama on February 17th.
The American recovery act created an eight thousand dollar refundable tax credit for first time home buyers.
And There is more of an incentive to buy now with tax credits over 9,500 dollars.
As a result of these first time home buyers entering the market, other people in the area are pushing to purchase homes and build construction.
So because of this new incentive the market is starting to increase.
In Andee’s opionion The market will continue to rise. There will be a strong market in the spring and it will continue getting stronger to until the end of the year as the first time home buyer credit expires in December.
She says, more and more people will begin to make the commitment to buy a home as the year ends to receive that credit.
Conditions will change because the number of available first time home buyers is increasing each year.
The average age of the first time home buyer is now thirty and for the next ten consecutive years, there will be an increase in the population of thirty year olds.
This of course started to increase because of the number of births from baby boomers in the 1980′s.
In real estate, First time home buyers start the trade up cycle. If a first time home buyer buys something small, then the person who sells their home can build up and buy larger, and then the cycle goes on.
The number of first time home buyers coming into the market is increasing and they start this trade up cycle that allows the market to increase.
Andee says, quote, “Our market here did not realize the same exaggerated increases in prices like other markets. We remained more stable compared to the other states.”
This is good news for the Lake County region.
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