New Tax Credit Passed!

New Tax Credit Passed for

EXISTING Homeowners and FIRST time homebuyers

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

Market Update May 13 2009

These days everyone is asking, “What‘s happening in the Springfield real estate market”.  The answer is, “A lot is happening!”

Throughout 2008 sellers continued to lower their asking price.  Those sellers who needed to sell quickly learned that price was the most important factor to selling their home.  The low prices were an encouragement to home buyers and we continued to sell homes although not to the degree as years prior.

Then a big turn in the market came in December of 2008 when interest rates began to fall.  We saw a few things happen in a short period of time.  Interest rates dropped to the lowest in years, a new President took office and a new first time home buyer tax credit of $8,000 was put into place.  The combination of those three things kicked the Springfield market into full swing. 

Currently in Springfield the inventory is low.  I don’t think word has gotten out to sellers that the market is good again!  The low interest rates are keeping buyers in the market for a new home.  Simple supply and demand tells us that when inventory is down and buyers are buying, prices stabilize!

We anticipate throughout 2009 that home prices will continue to stabilize.  This will bring more buyers and sellers together creating a strong real estate market.  That’s great news for our economy!

Most importantly, this is a great time to buy a home with the low interest rates.  It’s also a great time to sell a home, because currently buyers are in the market actively looking for new homes. 

Top 5 Reasons to Buy a Home in 2008

A quick note to let you know there are a lot of changes happening in the mortgage industry.  With these changes it will be more difficult to buy a home in January of 2009.  This is why I’ve created the Top 5 Reasons to Buy a Home in 2008!

Top 5 Reasons to Buy a Home in 2008

1.        Tax credit of $7,500 will expire soon.  Take advantage while you can.

2.       There is a large inventory of homes currently on the market but the inventory is dwindling fast!  Buy before the crème of the crop is gone.

3.       Interest rates are fantastic right now.  Today a 30 year FIXED rate is 6.175%*.  Just remember, interest rate will be based on credit scores.

4.       You can still get a mortgage today.  Starting in January 2009 lending is tightening the ropes again.  It will be more difficult to get approved.  I’ll post more about this later!

5.       Sellers in the Springfield area have adjusted their sales prices.  Homes are priced well BELOW what they were just 6 or 8 months ago.  When stocks are down you buy.  When home prices are down you buy!

Please email me if you have more questions about the current market conditions.  I’d be happy to discuss your specific situation and how buying in 2008 may be a great solution for you.

 

Jill@TeamRandyThomas.com

 

John Deere Room?

One of the most frequently asked questions by buyers is, “What in the world is a John Deere room?”  A John Deere room is a small garage found in the basement level of a home.  It’s purpose is to store your lawn mower (like your John Deere) and other yard supplies.  It typically has a garage door so a riding mower can easily come in and out.  Some are large enough to store golf carts, ATV’s, and even campers.  Sizes vary so check with the real estate agent to get the exact dimensions.

Hope that helps when searching Springfield area real estate property!

Reality Check from the Trenches of the Springfield Real Estate Market

This week I dropped off my youngest daughter to her pre-kindergarten class when her teacher greeted me with questions regarding the current housing crisis.  I was happy to answer her questions but was shocked about her panic over the market.  She asked very intelligent questions that I’m sure many of you have had on your mind.  Some of her questions included,

·         Is this a good time to sell my home?  She has an elderly parent needing to sell and move into a nursing/assisted living home.

·         Are people buying homes right now?

·         Can people even get a loan?  She also has a young daughter wanting to buy her first home.

·         Are there good deals in the market? If so, how do we find the good deals in the market?

·          What does a short sale mean and is it an option for everyone?  What does it mean for the buyer?

Let me start by reassuring you that Springfield has never had an inflated market as the East coast and West coast have experienced. In addition, Springfield has always, even now, maintained a very steady real estate market.  We’re selling less today than we did 2 years ago, but Springfield is still a solid market.  In the month of October my team alone will close over 10 transactions.

The point is there are several factors that make it a great time to buy a home in Springfield.  There are many loan programs available right now.  A typical conventional loan requires 5% down, while FHA loans can be obtained for as little as 3% down.  There are even a few 100% loan options still available.  This is not a time to panic despite what the national media and Politian’s enjoy discussing daily.    If you are in a position to buy I highly recommend you get serious about it before interest rates rise!  I’m seeing homes priced $30,000 less than what they were 6-months ago! At the same time, interest rates are LOW!

I will tell you that this is not necessarily the best time to sell.  If you don’t HAVE to sell your home I recommend waiting until February 2009 to list and market your home to sell.  Don’t wait past then! If you need to sell your home now, then price it right because “Price is King” in this market.  Be sure to call me as to how to best market your home.  I’ll make sure buyers see your home first. 

You may or may not be thinking of moving, but I thought you would appreciate hearing the reality check from the trenches of the Springfield real estate market.  I hope that you will help me spread the word to your family and friends, that it’s not time to panic, it’s time to buy!

New Loan Program for Missouri

Great News!  New loan program from the state of Missouri!

 

Previously bond money was only available to first time home buyers NOW the new bond Money is available to ANYONE.

 

Missouri Housing Development Commission (MHDC) has expanded its authority to fund mortgages.  This expanded authority enables MHDC to fund loans for repeat homebuyer’s in addition to first time homebuyers and also increases the program’s household income and purchase price limits. The program can now be used by homebuyers earning up to $79,800 depending on household size.  This is pre-tax income on your tax return (not W2 or 1099). The maximum purchase price is $289,700.

 

This program is now available in Christian, Greene, Stone, Taney, Webster and many other Missouri counties.  

 

There was a lot happening on Wall Street this week.  There has been a lot to absorb!  Let me reassure you that this is still a great time to buy real estate.  Many people understand there are great buys in the market but are too afraid to borrow money in this strange economic time.  The truth is there are many SAFE programs available to buyers today that weren’t available even a few months ago. 

 

Please email me if you would like additional information about how this program can benefit you.