Real Estate Market

Low mortgage interest rates and a special tax credit for first time buyers are helping to offset a slight decline in existing home sales, according to a recent report by the National Association of Realtors (NAR). Housing analysts are predicting existing home sales volume of 4.57 million units for 2009.

According to Lawrence Yun, NAR chief economist, "The share of lower priced home sales has trended up, indicating a return of many first-time buyers, which we also see in a parallel member survey," he said. "Sales in the upper price ranges remain stalled because of higher interest rates on jumbo loans."

According to a March survey, 53 percent of all transactions were atributed to first-time buyers. “Buyer traffic has been rising, and real estate offices are getting phone inquires about the tax credit,” Yun said. “By early summer we should be seeing a positive impact on home sales from record-low mortgage interest rates in addition to the stimulus provisions.”

Freddie Mac reports that the average national commitment rate of 5.0 percent for a 30-year conventional fixed-rate mortgage.

Spring home buyers can claim a special tax credit worth up to $8,000. The American Recovery and Reinvestment Act offers qualifying homebuyers a tax credit equal to 10 percent of a home's purchase price, up to a maximum of $8,000. The tax credit is offered to first time homebuyers, and those who have not owned a principle residence in the past three years. To be eligible for the tax credit, the home purchase must be recorded between January 1 through December 1, 2009.

The full tax credit is offered to buyers with reported income up to $75,000, or $150,000 for married couples filing a joint return. Partial tax credits are available to for those with income levels up to $95,000, or $170,000 for those filing jointly. Contact us today for more details on this exciting program!

In a buyer's market, its important for sellers to do what they can to get their home to stand out. Here are some quick tips you can use to generate some excitement for your home in today's market.

• Use paint:  A new coat of paint can go a long way to making your home look up to date. Neutral colors work best because they appeal to the most number of people.
• Mow the Lawn: Take the time to mow the lawn and clean the yard. Rake leaves and grass and put away any tools that may be lying around. Don't turn buyers off with a messy yard. If they like what they see on the outside, you'll improve your chances of getting them to take a look inside.
• Plant Flowers: Seasonal or perennials can bring a splash of color to your home and brighten things up from the street. Flowers throughout the house will please the senses and make it feel like a home.
• Spruce Up Your Walkway: Dressing up your walkway with bricks or paving stones will lead people to your front door. Inexpensive solar lighting can enhance your entry even more!
• Window Treatments: Keep your home from looking plain or boring with some decorative shutters. Windows are so important to the overall appeal of your home. Take some time to add plant boxes underneath and you'll see an immediate improvement that doesn't cost a lot of money!

By following these tips, you will be able to capture the hearts and minds of today's buyers, as well as improve your chances for a quick sale at top dollar!