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Connecticut Town Sees Better Real Estate Market Ahead

By Sally Maison
Published: Saturday, January 23rd, 2010

The new FHA credit score requirement may hinder many homebuyers from getting federal-backed loans, but a Connecticut town is positive that it will see better performance from the housing market this year. Wilton, CT. realtors recently conducted an informal survey which shows sellers are optimistic that market sales will go up in 2010.

Connecticut Town Sees Better Real Estate Market AheadRealtor, Mary Bozzuti Higgins, noted that prices are more stable now, and expects to see huge improvements by spring. She said she already knows what to expect and what to do when she gets there.

Buyers have become more excited to purchase homes because of the tax incentive they will receive. Ms. Higgins said $8,000 credit for homebuyers has helped set the real estate industry in motion during the credit freeze.

The federal tax cut was set to expire last November, but President Barack Obama signed a bill to extend it until May 1. The maximum worth of a property that can avail the credit must be below $800,000. Today, that amount is enough to give buyers many options when making their purchase, specialists remarked.

Banker Julie Carney is also seeing positive impacts caused by this federal tax incentive. She credits it for the increase of activities in the lower end of the Minnesota housing market during the second quarter of 2009. Summer and fall months saw an increase in the number of homebuyers looking for properties below $800,000 to avail the tax cut. Ms. Carney said many buyers who were rushing to meet the November deadline were relieved to find out that the expiry date has been moved to May 1.

However, realtor Marion Filley is not convinced that the federal incentive really did its job in luring more buyers. She said it is yet unclear how that part of the stimulus program has helped and will continue to help the real estate market. She added that one cannot really say there has been an increase since sales volume in 2008 is still bigger compared to 2009 sales. She also remarked that many buyers did not see the $8,000 tax incentive as attractive enough.

Nonetheless, Ms. Filley is also seeing a clearer sky for the housing industry. She said recent sales trend hint towards a stabilizing economy. The whole state of Connecticut saw a 66 percent increase in the sale of single-family home in November when their purchase reached 672. There were only 405 such homes purchased in 2008.

Aside from the tax cut, consumers also found help in the Federal Housing Administration. With good credit scores and stable jobs, they were able to get mortgage of $700,000 with only 3.5 percent down payment.

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