How the end of federal programs affects the Ann Arbor real estate market.

With the federal tax credits for home buyers winding down, last week also saw news of the federal government ending their year-long support of the mortgage industry. This government backing helped banks keep mortgage rates at or near historic lows, allowing many first-time home buyers a chance to buy their dream home and existing home owners a chance to refinance or move into a new home.

So what does this mean for Ann Arbor home buyers?

Saavy house hunters in Ann Arbor can still combine low mortgage rates and the federal tax credit program to get them into the house or condo of their dreams! But time truly is of the essence. Federal support for the mortgage industry is slated to wind down at the end of March…at which point interest rates may start to climb again.

The Ann Arbor real estate market has been besting national trends with an increase in home sales over the winter months this year versus last with no wild jump nor dip in prices. The condo market in Ann Arbor over the same time saw prices drop which resulted in a surge of contracts.  Recently several condo complexes were added to the FHA approved list however, FHA will no longer along spot approvals for condos, which will limit FHA financing for many condo complexes. 

With strategic market placement, sellers have a much broader base of potential buyers for their Ann Arbor home or condo while rates are still so low and tax credits are still available. Again, with an increase in home sales over the winter, Ann Arbor home sellers are reaping the benefits of these federal programs that at first glance seem to primarily aide home buyers.

Until Next Time -

Martin