CA FIRST-TIME BUYER AND NEW-HOME TAX CREDITS STEP IN TO FILL THE VOID

As buyers who have been sitting on the fence or were not able to get an offer accepted in this hot REO market here in the Lancaster / Palmdale area are watching the clock run down on the Federal First-Time Home Buyer tax credit, the State of California has stepped in to fill the gap.

To have qualified for the Federal First-Time Home Buyer tax credit you would have had to had an accepted contract and opened escrow before April 30th, 2010. As market trends have been showing us, many buyers jumped in the frey here in Palmdale and Lancaster to meet that deadline. However, there are some buyers that have been waiting for the predicted flood of new REO / Bank-Owned properties to hit the market and see how they affect prices and there are even more buyers that have been trying to buy a home in Palmdale or Lancaster that have run into the problem we have here of low REO inventory making it hard to get an offer accepted because of the multiple offers running bids up over asking prices.

If you fit into one of these categories, then don’t fear! The Governator signed a bill that will go into affect the day AFTER the Federal Tax Credit goes away. On May 1st, 2010, the California First-Time Home Buyer and New-Home Buyer tax credit goes into effect.

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