Thank you President Obama!

First time homebuyers may now qualify for an $8000 tax credit on the purchase of a new home!  Here's a summary of the details:

• A 'first time buyer' is one that has not owned a home for the past three years.
• Buyer must make less than $75,000 in  income  if single, $150,000 for couples.
• The credit is worth $8000 or 10% of the home's value, whichever is less.
• Claim the credit on 2008 or 2009 taxes.
• Home purchase must be made between Jan. 1-Nov 30, 2009.
• Buyer must live in the house for three years--or the credit will have to be paid back.
• The credit is refundable!  Which means you may get a refund check for up to $8000!  Check with your tax preparer for details on this aspect of the plan.  It all depends on how much in tax you owe--or don't owe--at the end of the year.

This should start moving the market as first time buyers who purchase enable second and third time buyers to move up and purchase..it's a domino effect. 

If you, or someone you know, is searching for that first home...now is the time to buy!  Email me for more information on making that very first home purchase!

Commentary on Kansas City Star Article dated Feb 6, 2009

In a recent front page story of the Kansas City Star, an economist declared average home prices should bottom out in the second half of the year.  The economist was referring the the national housing market--what about predictions for Kansas City?

The accompanying graph along side the story showed up to a 15% decline in local home prices since 2006.  (Portions of the East and West coasts show more than a 30% decline.)  Our area has not suffered as much as other parts of the country.  Even before the housing bust, the local housing market was always one of the most affordable in the US.  Price declines should be made up as the market makes its way up over the next few years.  In addition, the article states new home construction has declined, new home sales inventory is declining as sales pick up, and overall  inventory is going down--which will create a more balanced market for buyers and sellers.

Sellers moaning about declining home values need to remember that during the boom years of the market, roughly 2002-2006--some prices were rising so fast that the market couldn't keep up.  Homes had multiple offers, sold in a few days, prices increased dramatically due to 'demand'--demand that is now in question because of the mortgage crisis. What good are fast rising prices when just a few years later the same house won't appraise for the selling price??  I think  we are undergoing a much needed correction in home prices.  Housing prices will rebound--at a slower pace, which is best for buyers and sellers.

This is the year to buy and sell.  Why?  Because the bottom is here.This year, 2009.  For buyers, the tax credit (that will pass in some form in the Obama administration's stimulas plan) and the low interest rates of under 6% (possibly under 5%) make this the time.  Sellers, if you want to move up, or just downsize, your house WILL sell this year if marketed properly and well maintained. Make your home outshine the competition to get the best price. And those lower rates and tax credits will  benefit  sellers when they turn into buyers. 

Once the market starts picking up--and the media cranks up the positive housing sales stories--it will be too late.  The gloomy mindset that afflicts so many potiential buyers and sellers will quickly turn into a mindset of 'I'd better sell/buy now' and the negotiations will be very different.  Be smart and ahead of the curve--start your research, spruce up the house, and make your move before it's too late.  Real estate will always be a great investment--get ready to take advantage of the bottom of the market and turn it into a positive for yourself!