Downturn’s Effects Paving Way for Recovery The fallout of the housing market downturn has brewed a perfect storm for prospective homebuyers in 2009. There are several factors to consider in today’s market, the combination of which makes now the perfect time to buy a home. Inventory and sales are both on the rise, with a large number of current closings stemming from low-priced bank-owned and short sale properties that have opened the prospect of home ownership to a larger audience than ever. Many distressed properties currently on the market are priced at a 40 percent discount. And the presence of these homes on the market, as well as the overall increased supply of standard sales, has brought down prices across the board. Mortgage interest rates are probably the most attractive component in the current market, having reached their lowest point in history – near 5 percent. And, they are expected to dip even lower over the coming year. The alignment of these factors equals the perfect formula for purchasing a home.
Jeff Brick
Windermere Services Nevada
Director of Recruitment/Attraction
2200 Paseo Verde Suite 160
Henderson, NV 89052
(702) 808-4242 Mobile
(702) 432-4600 Office
Several Factors Indicate Positive New Year
If you're wondering, "Do I Have to Pay This Back", please read.
First time homebuyers who purchase a principle residence between April 9, 2008, and July 1, 2009, are eligible to receive up to a $7,500 tax credit. The tax credit is not completely free money. It has payback provisions that make it similar to an interest free loan.
Two years after the credit is claimed, repayment must begin so the credit is paid back in full within 15 years. If the home is resold before the credit is repaid, the seller must immediately pay the outstanding balance. But if the home is sold at a loss, then nothing is owed. For more information, visit www.hud.gov.
The increase in distressed properties coming on the market since the end of 2007 has driven down home prices in 80 percent of the nation's metropolitan areas, according to a third quarter report by the National Association of REALTORS®. But while existing home sales fell in 32 states from the second quarter, explosive sales activity in the greater Las Vegas area has pushed Nevada to the forefront of the national housing recovery.
Arizona, California and Nevada saw the largest third quarter sales gains, respectively, though Nevada has seen the highest annual increase by far, at 76 percent. Among the cities hardest hit by the foreclosure crisis, Las Vegas is showing signs of an early emergence, with annual sales statewide expected to outpace 2006 figures.
Foreclosures and short sale properties in Clark County accounted for about 80 percent of the 5,281 new listings, and 87 percent of the 2,335 total closings in November. Sales of these properties have brought the median sales price in Las Vegas down to approximately $186,000, according to the most current estimates, but many in the industry are speculating the market is close to reaching its bottom.
Director of Recruiting/Agent Attraction
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