In the first half of the year, the $8,000 first-time home buyer tax credit was extended and the $6,500 tax credit for repeat buyers helped stimulate sales at the low end of our Nantucket real estate market. Home buyers in 2010 also benefited from historic affordability levels in tandem with record low mortgage rates; for many it meant the chance to finally achieve their dream of owning their first Nantucket home.
Despite record affordability and buyer incentives, rising foreclosure rates and concerns about proper foreclosure procedures cast a shadow over the market that will take some time to resolve.
While in Washington, the deductibility of mortgage interest has been called into question with critics suggesting that the mortgage interest deduction (MID) benefits mainly the wealthy, while in fact, the MID benefits primarily middle- and lower income families—statistics indicate that almost two-thirds of those who claim the MID are middle-income earners. Sixty-five percent of families who claim the MID earn less than $100,000 per year, and 91% who claim the benefit earn less than $200,000 annually.
As we approach 2011, it seems clear that while there are still some bumps in the road the forecast is looking better for Nantucket real estate…interest rates will probably rise a bit but will remain historically very low. Buyer demand appears to be up and prices are still at all time lows. It seems like the perfect climate for purchasing…time to jump in!
Our quote for the new year is:
Life is not about waiting for the storm to pass. Life is about learning to dance in the rain!
HAPPY NEW YEAR FROM THE WINDWALKER TEAM!