A recent survey done by Prudential Real Estate and Relocation Services shows that the end of the federal tax credit will not deter buyers from continuing to buy homes.

Want the stats?

• More than 90% of those surveyed believe the home buyer tax credits have helped both first-time buyers and the overall housing market, but 65% say that the end of tax credits won’t reduce their personal interest in buying a home.

• Over the next five years, 79% expect real estate prices to increase and 20% expect prices to rise substantially. Only 12% believe prices will decrease.

• Among renters, 75% believe owning a home is a better long-term choice for them than renting.

• The majority of consumers also believe that homeownership is a good investment, with 75% saying it is better than stocks or bonds, 72% preferring it to mutual funds and 74% saying it surpasses savings accounts.

We have seen an increase in activity during the first quarter of 2010 with many people wanting to take advantage of the federal tax credits, but the Cincinnati housing market will continue to move in the right direction even after the expiration of the tax credits. Interest rates are at historical lows, homes have become more affordable, and let’s face it; everyone needs a place to sleep.

(Survey Source: Prudential Real Estate and Relocation Services, Inc.)

Cincinnati Real Estate

The home buyer tax credit is not just for first time buyers anymore! Anyone who wants to purchase a home and gets in contract before April 30, 2010 will be eligible for a hefty federal tax credit if they meet the following criteria:

• Has occupied current home as principal residence for 5 consecutive years within the last 8 years.
• A written, binding contract must be in place by April 30 and closed by June 30, 2010.
• Single-family home that will be used as a principal residence. It can also be a condominium, cooperative apartment, or other type of residence. Vacation homes and rental properties are ineligible . You cannot buy a home from a related person, which includes a spouse, ancestors (parents, grandparents, etc.), or lineal descendants (children, grandchildren, etc.) and receive the tax credit.
• Maximum of $800,000 or less. Current homeowners do not have to purchase a more expensive home to qualify for the tax credit.
• Income limits are as follows:
  To receive the Full Credit, Individual income can be up to $125,000 or Joint filers incomes can be up to $225,000. To receive a Partial Credit, Individuals income can be $125,000 – $145,000, and Joint filers can have incomes of $225,000 – $245,000.

For first time buyers the tax credit is 10% of the purchase price, up to $8000.
For current home owners, the tax credit is 10% of the purchase price, up to $6500.

This is not a tax deduction, it is a tax CREDIT. This means that if at the end of the year you don’t owe any taxes to the IRS, the amount of the credit will be REFUNDED back to you in a check. It won’t be a big cardboard one like you see on TV, but it will make you feel just the same!

For more information, check out the resources below provided by the IRS and CABR:
Congress EXPANDS Federal Tax Credit
Very easy to understand IRS graph for eligibility

In a press release last week, the Cincinnati Area Board of Realtors released stats that showed Cincinnati home sales were UP FOR THE FOURTH MONTH IN A ROW! Although the market is still very competitive with anxious sellers, this shows that buyers are taking advantage of this great time to buy.

• Low mortgage rates
• Lots of available inventory
• Federal tax credit
• The lowest prices we’ve seen in years

These are all key factors playing their part in our market right now.

Below is a chart that compares the number of home sales in recent months to last year’s numbers.

With the holiday slowdown coming around the corner and buyers reluctantly waiting to see if the government will release another stimulus, the next month or two will continue to be challenging for home sales.
These Cincinnati home sale numbers do show that despite the challenging economy, buyers are returning to the real estate market and feel safe about making an investment in a home.
And that, is good news for everyone.

Should I buy a home now or wait? I’ve never been asked this question more than in the previous few years as real estate news and economic woes have dominated the news.
Buying or selling is a personal decision first and a business decision second for many people. People get married, babies are born, kids go off to college, etc. Buying or selling can be a need and not just a want.

When you read that home prices are falling or it is taking longer to sell a home it is certainly normal to question your decision or spend longer gathering information about what to do.

• Which way are prices trending?

• Which way are mortgage rates trending?

• Which way is the amount of homes for sale trending?

For anyone sitting on the fence, this is a MUST READ before jumping off!

Should I Buy a Home Now or Wait?

Or as the great Warren Buffett said “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”

Mortgage rates are near historical lows, home prices are at lows, and inventory is starting to decrease (which will send prices higher and provide much less choice).

Call me today and ask Should I Buy a Home Now or Wait?

Don’t miss Cincinnati MLS Open House Weekend
by Matt Clark, Cincinnati Realtor
Cincinnati Real Estate

It couldn’t have come at a better time! Two weekends from now, Saturday and Sunday September 12th and 13th 2009, Cincinnati Realtors are holding a MEGA-OPEN-HOUSE (as we normally do twice a year).

The timing on this event is more crucial than normal because anyone that is planning to take advantage of the FREE $8,000 that the government is giving away is quickly running out of time.
If you have no idea what I’m talking about, see $8,000 FIRST TIME HOME BUYER FEDERAL TAX CREDIT

This incentive program ends December 1st, 2009. If you do not close on a home by December 1st, 2009 you will NOT BE ELIGIBLE FOR THE $8,000 TAX CREDIT.

To find out which listings will be open, use this Open House Search

Every day I get asked a question about the First Time Home Buyers Federal Tax Credit. It can be confusing, and you may hear some conflicting stories out there, but here are some quick facts:

• Tax credit of 10% of the purchase price up to $8,000.
• The credit is REFUNDABLE. This means you can receive money back if you don’t owe taxes.
• Income limits are $75,000 for a single taxpayer and $150,000 for married taxpayers.
• Must own the home for 3 years.
• The tax credit is not meant to be used as a down-payment.

Below is a great video that I found that helps explain the first time home buyer tax credit. Feel free to call me with any questions, I’m always available to help!

We currently have approximately 10 months of inventory on the Cincinnati market. A balanced real estate market occurs when there is approximately 6 months of homes for sale. This means that it is a GREAT time to BUY in Cincinnati. This could possibly be the best time in decades to purchase a Cincinnati home.

In contrast, that does NOT mean you can’t sell your home right now. Like I said, over a thousand Cincinnati homes sold last month alone. Your home must be priced correctly, from day one. There is no “testing” this market. You must be priced more competitively than your competition, you must be staged better than your competition, and you must be ready to show your home on a moments notice. Buyers are looking for a great deal; this doesn’t mean they have to take you to the cleaners, but you do have to give them VALUE.

I’m not one for cold weather, but I’ve been out showing homes every weekend this January and I’m surprised at the amount of people that I see out looking at Cincinnati homes. I love this burst of energy that we’re about to see called SPRING. If you are planning on buying or selling this year, now is the time to involve your real estate professional.

• Maximum of $7,500
• First time buyers only
• Homes purchased April 9, 2008 – JULY 1, 2009
• A zero interest loan for 15 years

I love this program! What Cincinnati first time home buyer doesn’t need a bigger tax refund from Uncle Sam? Although this is really a loan (not a gift), it is a great thing! Cincinnati first time home buyers can use this money to do renovations, buy furniture, a down payment for a new car, or just SAVE IT! The possibilities are endless.

Many Cincinnati first time home buyers can find themselves feeling a little “tapped out” after the purchase of their first home. Coming up with a 3.5% down payment, paying miscellaneous closing costs, inspection fees; all this money going out sometimes depletes the financial cushion that you had in savings. This extra $7,500 in the bank will make you feel a lot more financially sound.

Since this is not a “gift” from our government, it does have to be repaid. The repayment period is 15 years though! If you claim the entire $7,500, and repay over 15 years, this will only be $500 a year. That is only $41 a month to have access to $7,500 right now. I think this is a great loan for Cincinnati first time home buyers. Even better, you don’t start repaying the loan until two years after it is claimed! For a Cincinnati first time home buyer that purchased a home in 2008, you won’t start repaying it until tax time 2010!

Have you found your first dream house but you wrote it off because you didn’t think you had the money to remodel that kitchen? Think again! I specialize in working with Cincinnati first time home buyers, so give me a call and let’s go make your dream a reality in 2009. If you have any questions, please don’t hesitate to call or email me for the answers. Also check out the website below for more information.

Complete legal details of the tax credit can be found at http://www.federalhousingtaxcredit.com/ or by consulting your tax professional.