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Updated: 10:42 PM Apr 19, 2009
Tax Incentive Stimulating Home buying
Lincoln Realtors are encouraged by increasing interest from homebuyers as the housing market struggles to recover. Posted: 9:49 PM Apr 19, 2009Reporter: Jason Volentine Email Address: jason.volentine@kolnkgin.com |
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As the economy struggles to recover, many economists believe the nation's housing market will have to lead the charge to recovery.
Some experts say we've already seen the bottom of the stock market and there are signs the housing market is starting to stumble back after falling flat last year.
The $8,000 first-time homebuyer tax incentive President Barack Obama signed in February combined with historically low interest rates has some people believing there's never been a better time to buy a new home.
That's exactly what newly weds, Fredrick and Shari Brewer, thought when they decided renting wasn't the way they wanted to start their life together.
"We were tired of paying rent and it amounting to nothing. We decided to see what we could do with a house and we were able to afford one," said Fredrick Brewer, standing in the backyard of the home he and his wife have owned for two months.
Affordability is something Realtor Andrea Schneider says many prospective homebuyers are suddenly discovering.
"I think we're seeing a lot more serious buyers," said Schneider.
That serious interest comes especially from first time buyers.
Schneider said houses in the $80,000 to $160,000 price range are most popular. Now that first time buyers can pocket $8,000 in tax credits, interest in closing a deal is picking up.
"We've definitely seen an increase in the last 6 months," said Schneider. "Things were a little slow, a little low, not a lot of movement going on and I think that $8,000 tax credit stimulated just the way it was supposed to."
Interest from second or third time buyers is still a little sluggish with homeowners worried they won't receive top dollar when selling their old home. Schneider has some advice for those people.
"You gotta think, OK, I'm getting less for my house than maybe I was getting last year, but you're also getting a better deal on that house you're going to go out and buy," said Schneider.
And weather a first time or veteran homebuyer, Schneider says sales are good for everyone.
"The goal here is to stimulate new construction which creates jobs and then that keeps our economy moving foreword," said Schneider.
For people like the brewers, moving forward means living better.
"With a house you can just make it your own," said Shari Brewer.
The most current numbers from the National Association of Realtors shows existing home sales rose 8.9 percent nationally in February. Furthermore, after falling steadily during 2008, the average cost of a home has bounced back slightly in 2009 for all areas of the country.
Schneider credits the $8,000 tax incentive which ends November 30th, meaning we'll just have to wait and see if any recovery is permanent.
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