Buying now a risk worth taking?

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Recent good news about the housing market has many homebuyers wondering whether now is a good time to buy. For example, home sales activity increased 9.4 percent nationally in September, a 26 percent increase from a low point in January, according to the National Association of Realtors. However, this doesn't mean that the housing market has bottomed out or that we're heading toward a seller's market. It could take years for the market to level out and turn around. The $8,000 first-time buyer tax credit has had some effect on stimulating the market. The Nov. 30, 2009, deadline for taking advantage of this credit has been extended, and a tax credit of up to $6,500 is now available to repeat homebuyers who qualify. Income restrictions apply. To take advantage of these credits, the buyer needs to have an accepted offer no later than April 30, 2010, and close no later than June 30, 2010.The home-price limit for both credits is $800,000. An active first-time buyer market helps th...