The State of the Real Estate Market

The recent normalization of the real estate market has created a strong buyer's market, particularly for first-time buyers and real estate investors who don't have to wait for their home to sell before taking advantage of lower prices and increased choices.

7 Ways Homebuyers Benefit

     1.  Affordabiity is high. The housing affordability index, whic measures the ability of an average household to afford a home, has registered favorable numbers for the past several months.  This is especially encouraging for first-time homebuyers.
 

     2.  New tax credit for first-time buyers.  First-time homebuyers, defined as people who      haven't owned a home in the past three years, are eligible to receive up to $7,500 in tax credits, based on a joint fiing couple earning less $150,000 annaul income.  Individuals earningless than $75,000 can receive up to $3750.  The tax credit is actually a zero interestloan that is repayable over 15 years. This credit applies to homes purchased prior to Jan 1, 2009. In February of 2009 this credit was modified and is explained below.

     3.  Selection is great.  With more homes on the market, homebuyers can be more selective than in previous years.  The more success buyers have finding the house that is suited for their budget, the more stable the market will be in the long run.

    4.  Interest rates are low.  Thirty-year fixed rate mortgages have been hovering around 6% for the past several years, representing the most stable period for interest rates in the past 40 years.  Rates are expected to stay low for the near future.

    5.  It's a great time to move up or invest.  Affordable home prices and a good selection mean good news for people looking to move up or find bargains.  for homeowners looking to move up to a larger home, selling your home now may result in a slightly lower sale price, but the difference will be reclaimed with your next purchase.  Real estate investors can use this time to find great real estate opportunities on homes around the country that can be turned into vacation rentals, family retreats and second homes.

    6.  A home is still the best long-term investment.  A recent study released by the Federal Housing Finance Agency has confirmed that housing values have climbed significantly throughout thenation during the past 5 years.  Of the 292 metropolitan markets surveyed, 273 showed positive net home value to the tune of 29%.

    7.  The Recent News is Good.  Recently congress announced a plan to buy a huge portion of martgage-backed securities from Freddie Mac and Fannie Mae.  As a result, interest rates dropped more than 1 percent, enough to lower monthly payments several hundred dollars, and consumer response was overwhelmingly positive.  The following week, the Mortgage Banker's Association announced that home loan applications increased a record 112 percent, with the highest level of apllications in nearly a year.   All of this occurred during the typically slow holiday season.


     MODIFIED AMERICAN RECOVERY AND REINVESTMENT ACT - 2/18/09

• Lesser of 10 percent of cost of home or $8000.
• All principle residences are eligible.
• Reduces(or can eliminate) income tax liability for the year of purchase.  Any unused amount of tax credit refunded to purchaser.
• Full amount of credit available for individuals with adjusted gross income of no more than $75,000($150,00 on a joint return). Phases out above those caps ($95,000 and $170,000).
• Purchaser (and purchaser's spouse) may not have owned a principal residence in 3 years previous to purchase.
• Purchasers who utilize revenue bond financing can use credit.
• No repayment for purchases on or after january 1, 2009 and before December 1, 2009.
• If home is sold within three years of purchase, entire amount of credit is recaptured on sale.  Applies only to homes purchased in 2009.
• Program terminates December 1, 2009.
• All revisions are effective as of January 1, 2009.
• Purchases on or after April 9, 2008 and before January 1, 2009, repayment to begin for 2010 tax year.
• See this link for more info: http://www.federalhousingtaxcredit.com/2009/index.html
  

  Check with your preferred mortgage specialist to find out more information they have on this exciting possibility.

   On May 11, 2009 Governor Sonny Perdue signed House Bill 261 creating a Georgia Income Tax Credit for the purchase of a home.
  

  Credit is limited to eligible purchases made between June 1, 2009 and November 30, 2009.
   

  • The credit created by HB 261 can be claimed one time per taxpayer and is completely independent of the federal first time home buyer tax credit. 
     
  • Maximum benefit of the tax credit is $1,800 or 1.2 % of the purchase price (whichever is less) spread over three years.
     
  • This is not for first time home buyers only.
     
  • This is for investors as well as owner occupied homes.
     

  Home Buyers now have the opportunity to enjoy benefits of both a state $1,800 and a federal $8,000 home buyer tax credit. If you are planning to buy a home in the near future in GA, buy before November 30th and take advantage of this tax credit

  $8,000 Tax Credit EXTENDED
  and EXPANDED...  
  Must be UNDER CONTRACT by April 30, 2010 and CLOSE by June 30, 2010
  First Time buyers ... get up to $8,000 tax credit
  Owned a home for at least 5 of the last 7 Years?  Get up to $6,500!!!
  
   

       Please do not hesitate to contact me if you have any questions or just would like  more information.  I am here to help.  I hope to be your real estate consultant for life.~ Dawn