The $8,000 Tax Credit is Gone. Now What?

April 30, 2010 was probably the busiest day of real estate negotiations in many many months. The $8,000 federal tax credit expired that day. Homebuyers had to have an accepted offer and officially be "in contract" on that date to get the tax credit.

Due to the increased buyers activity, sales prices swelled a bit and it became somewhat of a seller's market. There were competitive multiple offers on some houses. And, sellers knew they had buyers desperate for that tax credit in a weak negotiating spot.

Now that the tax credit is gone, you might be wondering what is going on. Well, sales dipped some, but the gans in March and April were unnaturally high due to that tax credit.

And, even better, prices have dropped. In fact, I see that many homes are probably priced at least $8,000 less than they would have been before April 30th. So, would you rather have a price reduction in buyers market or a tax credit in a seller's market?

I must admit....I have a hidden agenda here. The real point of my posting today is to point out that there are so many great resources for first time homebuyers in Portland that you probably won't even miss the tax credit.

Probably the best starting point for first time homebuyers in the Portland metro area is the Portland Housing Center. PHC is a non-profit housing center that provides resources to first time homebuyers, providing information, counseling, and guidance on nearly every step that comes up during the homebuying process--from getting your finances together to getting the keys in your hand.

Some of my favorite programs at the Portland Housing Center include:
-competitive fixed-rate loans from a non-profit source
-downpayment savings match--save $2000 and get $6000 in matching funds!
-mortgage assistance program to avoid mortgage insurance
-classes on getting your finances in order
-direction to additional city and county resources you may qualify for

There is a lot to offer at Portland Housing Center. I am confident that if you combine the current buyer's market with some of their programs, you are going to save far more than $8,000 when buying a house.