SPRING NEWS – March 2009

 What does the American Recovery and Reinvestment Act, recently signed into law by President Obama, mean to the Michigan housing market?  One of its provisions is a first-time homebuyer tax credit.  The credit is structured as follows:

• Applies to first-time homebuyers buying their principal residence.
• The home must be purchased by August 31, 2009.
• The residence must be held for three years, or the credit will be recovered.
• Applies to individuals making less than $75,000, or couples filing jointly making $150,000 or less.
• It provides a credit of 10% of the home’s value or $8,000, whichever is less.

In Michigan, $8000 accounts for 3.8% of the average single-family home price last year.

For current renters ready to buy their first home, this is the time to act.   Home prices and interest rates are still low. The bank recovery plan is bringing lending back to the marketplace. The tax credit will help to offset some of the up-front costs. With the existing tax advantages of paying a mortgage instead of rent, moving from a rental to your own home is the smart move.  Renters in single-family homes are likely to be able to purchase a home greater in value than their current rental for the same overall payments, when tax savings are included.

If you know someone looking to buy a first home, or a homeowner ready to make a starter home available to a new first-time buyer, pass along this card, or have them reach me at AliceRoderick.com or call me at (734) 646-0797.

This is good news for the market!  New buyers mean additional demand, and additional demand means recovering home prices for all portions of the housing market.

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ALICE RODERICK – EXPERIENCE – INTEGRITY – IN REAL ESTATE