What impact has the American Recovery Act had on the Los Angeles Real Estate Market?
In the last week we have opened an escrow with a first time home buyer. They had been looking at homes on and off for several years. Thus far, the $8,000 first time buyer's tax credit seems to be a good move on our President’s part.
But a plea to our President: Mr. President, now is not the time to change the mortgage interest deduction. Let’s wait until we rebound before we put the brakes on what might be the start of a housing recovery. 
Posted by Phyllis Harb at 3/4/2009 8:02 AM 
Categories: All about Money, In a Realtor's Week, A Buyer's Perspective
Tags: first time home buyers $8000 tax credit American Recovery Act
Categories: All about Money, In a Realtor's Week, A Buyer's Perspective
Tags: first time home buyers $8000 tax credit American Recovery Act
All this "buzz" over the $8K tax credit in this market is a joke. No one is talking about the fact that it begins to "phase out" at $75K for a single tax filer and phases out completely at $95K. That means, if you make $95K annnually, it's - nada - zip - poof - bye-bye stimulus - so long ruby Tuesday. "So what," you say?..."Good for the $75K-$95K crowd?" Ok...but did no one tell them that a wage earner of $75K to $95K in los angeles does not compete for home-owner status in this laughably-bloated market unless they're looking for that perfect picket-fenced domicile in up and coming areas of skid-row? No, folks earning $75K-$95K in southern California lease rent-controlled studio apts and unpermitted garage conversions in "Beverly-Adjacent" neighborhoods.
Just a cranky thought from someone on the otherside of the cap and still unable to afford a home in this land of opportunity. Great weather though.
By the way, the same income cap applies to people living in Bisbee, Az. Where? Exactly.
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Many first time buyers opt for condos or small homes. My buyer's agent Natalie purchased a 1920's Spanish in Sunland last year for well under $400,000.
I think if you really want to be a home owner, and have good credit, you can be. There are a variety of low down payment options. But you need to be realistic. My first home was a 2 & 1 1/2 1100 sq ft home and I felt fortunate. That first home was a stepping stone to a larger home, and the larger home was the stepping stone to a superior school district. There is no instant gratification unless you are a millionaire, it is a slow and steady climb. If it doesn't seem worth the sacrifice keep renting.
But do you need to be on the Westside? I know some love the hustle and bustle but the Glendale/Pasadena quadrant is so much more affordable. We have communities such as La Crescenta which offers affordable housing in an award winning school district.
As far as tax credits and benefits, consult your tax professional for specifics.
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