Housing Recovery Aided by Foreclosures and 1st Time Homebuyer Credit

U.S. new home sales posted their biggest monthly gain in eight years in June (Up 11% from May), suggesting the housing market may be starting to recover from its worst slump since the Great Depression of the 1930s. Despite the large increase, sales levels are still much lower than a year ago and prices are still declining in most areas of the Country. Read more.

One of the factors leading to the increase in sales is the “Homebuyer’s Tax Credit” of up to $8000. If you or your spouse have not owned a home within the last 3 years, you may be eligible for this credit provided you meet certain income requirements and the home will be occupied as your principal residence. You must close on your purchase by December 1, 2009 in order to be eligible for this tax credit, so time is running is out. Read more.

In addition to the Homebuyer’s Tax Credit, foreclosures are also a major factor stimulating sales. Here is a list of the 80 bank owned (REO’s) properties that are currently for sale on Maui. We will soon be listing a home and cottage in Pukalani, a large 5 bedroom home in Kihei, and a 2 bedroom condo at Southpointe. Call or e-mail us for more details.