Darla Zimmerman-Pilant

Many factors go into buying a home, but one important factor is always “Am I getting a good value?” Buyers constantly weigh all of their reasons for buying, and a few buyers are considering putting off their purchase until the spring to see where the market is headed. However, there are several indicators pointing to the possibility that right now could be one of the best times ever to buy in our area. Values have dropped over the last two years, but our local market, as well as the national market, has seen a steady increase in sales volume. The increased volume has helped to stabilize prices, both in the Inland Northwest and across the United States.

Interest rates are widely predicted to climb next year, as the economy recovers and the Federal Government winds down its program for purchasing mortgage-backed securities. At today’s rates, a $200,000 30-year mortgage would cost approximately $1,044 per month (principal & interest only), whereas in the spring if rates are at 6% the payment would jump to nearly $1200 per month. Rates fluctuate on a daily basis, but October of 2009 has seen rates dropping as low as 4.75% fixed over 30 years! The interest rate you get has huge impact on your buying power!

A recent Yahoo Finance article predicted home prices nationally will drop another 11.3% to their lowest point by June 30, 2010. This doesn’t mean a whole lot because all markets are local and unique (for instance homes in Kennewick, WA have appreciated 8.9% over the last three years and are still going up!) But for the sake of argument let’s say Spokane area prices do drop further. A $200K home purchased today at 5% fixed rate would cost $1074 per mo. (P&I). If you time the market to buy it for 10% less at $180,000 nine months down the road, but interest rates jump to 6.5% your principle and interest payment would be $1138! So if you will be financing your purchase, NOW is a fantastic time to buy! Call or message me anytime or visit our site at http://www.TheRealEstateAces.com

While owning a home has multiple benefits, there is another bonus for First Time Homebuyers for the next few months: An $8,000 First Time Homebuyer IRS Tax Credit! This “Gift”, given to First Time Homebuyers from the government, does not have to be paid back. This incentive, combined with historically low interest rates, tax advantages for owning a home and the affordability of first-time homes in our area, means buying a home can be more affordable than renting! “First Time Homebuyers” include anyone who has not owned a home in the last 3 years, so even if you know someone who owned a home a while ago, they might qualify for this new tax credit designed to promote home ownership.

BUT HERE’S THE DEAL: to qualify for the first-time buyer credit, the sale needs to close by the last day of November, 2009. Considering an FHA loan can take up to six weeks to process, plus the time it takes to find the right home... now is the time to be home-shopping. Call or email us and let's get started!

Here’s a short video about the tax credit. Warning: it’s pretty cheesy!


If you or someone you know is looking to buy a home in the Spokane area, give us a call at 509-270-0782 or visit our website at www.TheRealEstateAces.com. Your referrals are appreciated!

The 2009 Stimulus package included a "refundable" tax credit worth up to $8,000 for taxpayers who purchase their first home between January 1 and November 30, 2009. While it is a great incentive for first-time buyers, the funds are not available until after the purchase when buyers file and receive their tax return.

The new Washington State "Housing Tax Credit Advance Loan Program" will now make the tax credit (up to $8000) available to borrow up front to use as a down payment! The program is not up and running yet, but the funds have been approved and it should go into effect in the next few weeks after Governor Gregoire signs the state budget.

Details of the program are still being refined, but here are the basics:

• The State makes a deposit with a selected FDIC insured financial institution.
• The financial institution then provides the Washington State Housing Finance Commission with a line of credit up to $8000 to qualified first-time home buyers for a down payment.
• The advance loan is paid once the IRS delivers the home buyer's refund.

Here's what you can do RIGHT NOW to be eligible and ready once the program is available:

First of all, in order to take advantage of this program, you need to work with a participating lender. There are only a handful of WSHFC loan officers in the Spokane area. They can tell you if you qualify for a mortgage loan under this program. Call or email me and I'll connect you with an approved lender!

Also, you will need to attend an approved Homebuyer Education Class. This free 5-hour seminar is a requirement for receiving a loan from the Washington State Housing Commission. Contact me for a list of upcoming classes.

Once you know how much you qualify for, it's time to look for a home! There are lots of excellent homes on the market, but we are seeing buyer activity heat up. I can set you up to receive automatic emails for new listings with your specific criteria and show them to you as soon as they hit the market! Remember, to take advantage of this program, the home you purchase has to close escrow by the end of November. After you find the right home and make an offer, the sale could take 45 to 60 days to close, so the time to start looking at homes is right now. Let's get started! Call me at 509-270-0782.

Man, I love the Zags. Me and everyone else in Spokane.

They played an outstanding game today and won in a thriller against 12-seed Western Kentucky. The “Hilltoppers” (goofy name-good team) tied it with just seven seconds to go. Daye inbounded to Demetri Goodson who went coast to coast and banked a layup for the win. I guess he’s known as “Meech” on the team. In our house, we’ve called him “Woodson” ever since the Zags played Memphis at the arena, and Bob Knight was calling the game for ESPN and kept calling him Woodson instead of Goodson.

When it came down to the wire, we were on the floor in front of the TV shouting WOODSOOOOOOON!

There’s a lot to love about Spokane, and from November to March Zags Basketball is near the top of the list. The lady Zags are in the dance this year too, and beat Xavier in the first round, 74-59! The whole GU basketball program, men & women, make us proud to have them in little ol’ Spokane.

GO ZAGS!!!!!

Darla & LeRoy at a Zag's home game December 18th. That was the day it snowed about four feet so we scored tickets on Craigslist. Even though we were in the nosebleed section and the game was a blowout against Texas Southern, there's nothing like being there!

Unless you have been living in a cave, you most likely know that the U.S. Economy is at its lowest point in recent history. That is certainly not good news. But there is a silver lining: Mortgage rates tend to fall when economic news is bad. Basically, mortgage rates are tied to the Bond market so when the economy is weak, money flows out of Stocks and into Bonds. When Bonds go up, interest rates go down.

For a very short period of time at the beginning of this year, we saw some rates as low as 4.75%. It has crept up to the range of 5.00-5.25% since then, for borrowers with excellent credit. If you own your home or are considering buying, act now to take advantage of current low rates for refinancing or purchasing. A word of caution: beware of online lenders that advertise super-low interest rates. They make thier money by adding fees and points on the "backside" of the loan. Call me anytime and I'll connect you with a trusted local lender.

Let's do some math. If you are financing $200,000 at 5% interest on a 30-year fixed loan, your monthly payment (principal and interest only) would be $1073.64. That same amount at an interest rate of 6.5% comes to $1264.14. That's almost $200 per month savings! Keep in mind, in the real world you have to pay taxes and insurance on top of principal and interest, so check with your lender to see how much home you can buy with the payment level you're comfortable with.

In Spokane, it is an incredibly good time to buy a home, not only because interest rates are great. We also have the classic Supply and Demand principal bearing out: Lots of homes for sale in Spokane means lower prices to you as a buyer. Spokane is experiencing a rare "Buyer's Market" right now, but that could change if a big chunk of the inventory is snapped up in the hot Spring and Summer selling season.

Back on the topic of interest rates... as a general rule, weak economic news means lower interest rates, while positive data causes interest rates to rise. Federal Reserve Chairman Bernanke has stated the recession will be over by year-end if the banking industry is stabilized. Also, the distribution of stimulus money will soon begin to positively impact the various economic indicators that influence rates. Every time this type of positive news is reported, interest rates will crank up a hair, which means we could be back to 6-7% in no time.

If you are looking to buy, we'd love to help you find the home of your dreams. Or, if you know someone who is looking to buy, your referrals are appreciated! And don't forget - there is an $8,000 tax credit for First Time Buyers if the sale closes before December 1, 2009! See my related blog post or call Darla at 509-270-0782 for more info!