Opportunities Abound for First-Time Homebuyers

If you have recently decided to move from renter to homeowner, you are not alone. First-time homebuyers accounted for 41 percent of the market, according the National Association of REALTORS® Profile of Home Buyers and Sellers. Price declines in many markets around the country have created unique opportunities for those considering home ownership for the first time.

As a homeowner, you have security and stability, the freedom to decorate and remodel, and the capability to build equity and recoup tax benefits. While interest rates are still at historically low levels – 5.22% for the typical, 30-year fixed-rate mortgage (as of August 2009), combined with ample inventory, now is a great time to buy. On top off that, there are several incentives and programs available specifically for first-time homebuyers.

First-Time Homebuyer Credit
It is a great time to take advantage of the highly publicized First-time Homebuyer Credit, which was part of the Housing and Economic Recovery Act of 2008. This federal initiative allows first-time homebuyers to take up to an $8,000 tax credit, which does not have to be repaid, as long as it is used in conjunction with a new or resale property purchased prior to Dec. 1, 2009. For new construction, the purchase date is considered to be the date you first occupy the home.

Under this program, a first-time homebuyer is considered to be anyone who has not owned a principal home within the last three years. If you are married, both spouses must meet this criteria. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer. In addition, ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer. You are eligible to claim first-time buyer status if you owned a principal residence outside of the United States within the last three years.

Be aware though, the actual tax credit may vary depending on the purchase price and your income. The credit is generally equal to 10 percent of the home’s purchase price, not to exceed $8,000. In addition, the income limit to receive full credit is $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return.

For complete details, visit www.irs.gov and www.federalhousingtaxcredit.com. As always, consult with your tax advisor on how this tax credit may affect you.

Mortgage Loans
As a first-time homebuyer, you do not have the advantage of using the equity from a previous property to help bridge costs associated with a down payment, closing and other fees. Many financial institutions have mortgage products with you in mind. In addition, the Federal Housing Administration (FHA) offers mortgage programs in which your down payment can be as low as 3.5% of the purchase price, and allows most of your closing costs and fees to be included in the loan. Although the FHA does not directly loan to consumers, you can work with a FHA-approved lender. For more information, visit www.hud.gov.

Workshops
Besides financial assistance, there are workshops specifically geared toward first-time homebuyers. They provide a wealth of information about the home-buying process, such as how to search for a home, setting up a budget, choosing a real estate professional, loan products, and so on.

The transition from renter to homebuyer is a large step and is arguably one of the largest investments you’ll make, so make sure you take advantage of all the assistance available to make the road to homeownership easier.

Current Mortgage Lending Rates 8/27/09

According to Jeff Jensen of CT Home Mortgage, this week's Mortgage Lending Rates are as follows as of 8/27/09:

Conforming 30 Year fixed rate is 5.125-5.375%
Jumbo 30 year Fixed rate is 6%
5/1 ARM is 4.5%
5/1 Adjustable I/O rate is 4.75%
Jumbo 15 Year Fixed rate is 5%

The Scoop on the Westport Market - August 2009

The Scoop on The Westport Market

Everyone seems to be talking about current value of Real Estate. Will the Fed’s continued low rates help surge the housing market? How does this year’s market compare to last year? Are there deals to be had….or…..are homeowners just overpricing their homes, expecting them to still be worth what they were two years ago and sitting with them longer? Certainly market conditions have changed. But, Westport is still a very desirable community. Now, more than ever, pricing correctly can mean the difference between a quick sale and living with a key box on your front door for a long time! So…how is Westport faring in 2009 after all?


Presently there are 372* houses on the market in Westport, with an average list price of $2,235,650 and an average market time of 132 days (which doesn’t mean much, since homes could have be re-listed and the market time than restarts at 0). The most expensive home listed for sale is priced at $30,000,000., and located on Beachside Avenue, offering 4 acres, a 10,000 square foot 6 bedroom main house, a 2 bedroom guest house and a 2 bedroom gate house. There is space for 9 cars in the garages and 215 feet of direct beachfront property. The least expensive home on the market in Westport is priced at $358,000., a 2 bedroom 1485 square foot cape located on Newtown Turnpike.

Year to date, 134 homes have closed (sold) with an average market time of 118 days, an average list price of $1,525,168., and an average sales price of $1,401,203. The most expensive home sold in 2009 in Westport closed for $6,500,000 although it was originally listed for $14,000,000. It is located on Beachside Avenue on 2 acres with a pool and tennis court, 12,000 square feet located across the street from the Sound. The least expensive sale was $340,000., a 2 bedroom 1320 SF home located on Cedar Road.

In 2008, during the same time period, 174 homes sold in Westport. Average market time was 104 days with an average list price of $1,857,487., and an average sales price of $1,743,563. The most expensive home sold during this time period last year closed for $5,700,000 on Greenbrier Road and the least expensive home sold on Compo Road South for $397,500.

The bottom line, the Westport Market is alive! Properties at all price points are selling when priced correctly. I am concerned that while the average list price is $2,235,650, our average sale price is $1,401,203. Something has to give! Our buyers in Westport are well educated. They know the market, and are not willing to overpay. The market will not allow you to under price your home (the price will be bid up by savvy buyers), but the market will allow you to hold on to your overpriced listing for years! Price it right and be ready to negotiate.

*These statistics are based on the homes listed for sale through the Greater-Fairfield County Multiple Listing Service as of August 17, 2009.

Current Mortgage Lending Rates 8/13/09

According to Jeff Jensen of CT Home Mortgage, this week's Mortgage Lending Rates are as follows as of 8/13/09:

Conforming 30 Year fixed rate is 5.25-5.5%
Jumbo 30 year Fixed rate is 6%
5/1 ARM is 4.5%
5/1 Adjustable I/O rate is 4.75%
Jumbo 15 Year Fixed rate is 5%