Schwarzenegger Signs New Homebuyer Program

Governor Schwarzenegger today signed to authorize $200 million for home buyer tax credits. The bill allocates $100 million for qualified first-time home buyers who purchase existing homes and $100 million for purchasers of new, or previously unoccupied, homes.
This is different than the current federal program that expires in April. This program begins May1, 2010 and ends December 31, 2010.
This credit is equal to the lesser of 5 percent of the purchase price or $10,000, taken in equal installments over three consecutive years. Under the bill, purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit (i.e. repay it to the state). Please contact me for questions on how to take advantage fo this valuable program.

For up to date info on the local real estate market, simply look at my website www.GaryNobile.com or call me at (408) 247-4029.

Warren Buffet Housing Prediction

Warren Buffet, the famed CEO of Berkshire Hathaway, has made a bold prediction about the residential real estate market. In Monday’s Wall Street Journal, Buffet was quoted as saying:

“[Within] a year or so residential housing problems should largely be behind us, the exceptions being only high-value houses and those in certain localities where overbuilding was particularly egregious. Prices will remain far below “bubble” levels, of course, but for every seller (or lender) hurt by this there will be a buyer who benefits. Indeed, many families that couldn’t afford to buy an appropriate home a few years ago now find it well within their means because the bubble burst.”

Mr. Buffet is known for bucking the conventional wisdom with great success: Anyone who held a $10,000 stake in Berkshire Hathaway at the start of 1965 has about $80 million today. To see the full article, go to:

http://blogs.wsj.com/developments/2010/03/01/buffett-predicts-housing-problems-behind-us-within-the-year/?KEYWORDS=warren+buffet

For up to date info on the local San Jose real estate market (and surrounding areas), simply look at my website http://www.garynobile.com/ or call me at (408) 247-4029.

Interest Rates Rising, Tax Refund Running Out

My mortgage professionals gave me the bad news this morning. At least it's bad for borrowers. The Federal Funds interest rate went up 0.25% today. Rates are still very low, but no one likes to pay more than they have to on loans. Mortgages immediately jumped up by about the same amount, but expect them to settle down in about a week (all other things remaining equal). Expect others types of lenders to follow suit sometime soon. Stay tuned.....

The First Time Home Buyer tax refund program is set to expire on April 30, 2010. That means that qualified first time home buyers only have a couple of months to find their home and have a deal agreed to in writing with the seller. Then they will have until June 30, 2010 to close escrow. By doing so, qualified first time home buyers lock in a an automatic $8,000 tax refund from the federal government. I sure wish this was available when I bought my first home. My first home purchase was kind of like Charlie Brown's Halloween. If you weren't a refugee from another country, all you got was a rock. Anyway, the same time lines are set to expire for repeat home buyers as well. Qualified repeat buyers will receive a $6,500 tax refund. For more questions about the market, contact me through my website www.GaryNobile.com or (408) 247-4029.