Julz Brown Licensed in Ohio & Kentucky 513.237.1072

Local home sales increased by 22% February over January. Nationwide, seasonally-adjusted home sales climbed 5% last month over January. The increase in home sales is partially attributed to a recently-enacted tax credit program. It is a favorable time for all buyers.

"It's a Buyer's market." You've probably heard that phrase before when it comes to home buying. It means that conditions favor buyers at the moment. It relates to three primary reasons:

•Ø Inventory of homes for sale is strong

•Ø Mortgage rates are low

•Ø Home prices are favorable

Considering today's market place: (1) there is an ample supply of homes for sale, (2) mortgage rates are near 5%, and (3) the median-priced home for sale in the Cincinnati, 4-county, area is $123,000 What more could a buyer want?

Whether you're a first-time homebuyer or repeat buyer, home affordability shines equally well in the Cincinnati area. You can't say that for some parts of the nation, where housing and living costs are higher.

So how, exactly, is the Cincinnati-area housing market for affordability? Look at these "local-to-USA" comparative facts for the purchase of a single-family home:

Median Priced Monthly Median Index Affordability

Location & Single- House Family

Time Period Family Home Payment* Income

(a) (b) (c)

Nationwide

Jan 2009 $169,900 $747 $59,821 166.8

Cincinnati Area

Q4 2008 $123,000 $564 $66,200 244.4**

*Principal+int. **higher is better

The above numbers show more home buying power in the Cincinnati area market vs. the USA as a whole due to: (1) more attractive home prices, (2) lower monthly payment (because of lower housing cost), (3) higher median income, and (4) greater affordability. The "affordability" index takes into consideration all "a-b-c" factors shown above. An Affordability Index of 100 means a person with a median income has exactly enough income for an 80% mortgage on a median-priced home (assuming a favorable credit score). Note: Other mortgage loans are available with lower down payments. In the end, you need to be comfortable with your monthly housing costs.

Please do not hesitate to call or email me with any real estate related questions or concerns.

Thanks

Julz Brown, ABR

Licensed in Ohio & Kentucky

Group Realtors

513.237.1072

Julz@SellingCincinnatiHomes.com

www.SellingCincinnatiHomes.com

The 2009 Recovery Act signed into law early this month has something for everyone. Make sure you take advantage of what is being offered to you. Please consult with your accountant or the IRS for further details & tax implications regarding these new credits.

The first time homebuyer credit that passed in July of 2008 was, thankfully, improved upon. Polls conducted by the National Association of Realtors found that the overwhelming majority of first time buyers (71%) viewed the 2008 credit as a loan rather than a credit since it had a recapture period. Consequently, the results were negligible with regards to stimulating sales. As a result, the 2009 credit was increased and the recapture provision was eliminated as long as the home is not sold in the first 3 years. The 2009 credit is as follows;

• $8000 tax credit for first time buyer or anyone who has not owned a house in the past three years
• Valid on primary residence purchases from January 1^st, 2009 to on or before November 30^th, 2009
• Income limits; $150,000 if filing jointly and $75,000 if filing single
• Credit can be claimed on 2008 tax return. You can amend your return if you buy a home after filing or claim it when you file your 2009 return

As part of the Stabilization Act in October 2008 homeowners received tax credits for energy efficient home improvements. This was once again addressed in the Recovery Act of 2009 with extensions and modifications to tax credits. The credit is for qualified energy efficient improvements & can be captured on your 2009/2010 tax returns for a cap of $1500.

• Storm doors, exterior windows & skylights
• New high-efficiency air conditioners, heat pumps, water heaters, corn fueled stoves, furnaces, boilers & geothermal heat pumps
• Roofing & insulation
• Each improvement comes with its own qualifications and efficiency standard. Please refer to your accountant or the IRS for further information.

There are two portions to the final agreed upon bill. For those who would like to read the full text of Div. B- tax provisions please visit http://www.sellingcincinnatihomes.com/

Cheers!

Julz Brown

Group Realtors

Licensed in Ohio & Kentucky

513.237.1072

Whenever there is a down market the first knee jerk reaction for business owners is to cut spending but cutting marketing & advertising budgets may be the worst thing you can do. It has been shown in research time and time again that companies that maintain and/or increase their marketing efforts during a recession not only gain market share during the recession but significantly increase sales and profits for the years following.

Shannon Kavanaugh offers a great overview of some of the recession data as it relates to marketing.

So, where do you want to be in 2010 or 2011? Scrambling to get back in the game or a shining star on top? It is currently a reality that top agents and taking more of the market share and average agents are falling to the wayside....don't let yourself fall to the wayside.

As small business owners we need to not only think of our business with regards to today but remember to realize the impact of our decisions on tomorrow. Don't get caught up in the hype of the slow market by cutting back on expenses and on the actions that got you where you were in the first place. It is time to step up when others are stepping back and seize the marketing & business opportunities that are out there.

Cheers!

Julz Brown

Cincinnati Real Estate

http://www.SellingCincinnatiHomes.com/