First Time Home Buyer

The headlines are full of disappointing news regarding the housing industry; however, the current flat economy is creating opportunities for many. As in many areas around the United States, people who have wanted to buy in high end areas such as Boston but could not are reaching for their dreams of finding a first home in a coveted location. It seems that the buzz word in real estate right now is opportunity. According to many real estate companies, there are a lot of great deals to be found in today’s housing market. This does not come as a big surprise to the many folks looking to buy their first home, particularly in Boston. Massachusetts home prices have fallen around 10 percent since 2005 which is allowing many first time home buyers to enter a market they previously could not afford.

One of the big draws for the first time home buyer today is the perks they are finding. With the efforts of the government, housing development centers and other incentives available first time home ownership is a dream come true for an increasing number of people all over the United States and all over Massachusetts.

Many programs in Massachusetts offer a number of resources for the first time home buyer including classes, information, guidance and even a lottery system for the individuals that qualify to purchase condominiums and homes at below-market prices. There are plenty of enticing programs available for the first time buyer as well in the Massachusetts housing. If a person works for the town or city as a teacher, firefighter, police officer or other public service position they can be eligible for lower interest rate loans. Similar programs are available for people using public transportation or who are trying to rehabilitate a home that is in rough condition.

Naturally there are conditions to be eligible for most programs in Massachusetts and other places around the U.S. Income guidelines and limits as well as other stipulations may apply; however, it is always a good idea to see if you are eligible for any incentive programs. Doing so just may save you significantly on your first home and may allow you more home than you dreamed possible.

When it comes down to it, if you are considering buying a first home, the best time is now. It is a buyers market and there are a lot of great deals and incentives available to the first time home buyer! Expect to possibly be required to take a home buying 101 class or other classes that are offered through incentive programs. Additionally the governmental incentives and tax credits are available to most all first time home buyers to try to stimulate the stagnant housing market. If you are ready the market is primed just for you, run your credit, smooth out the wrinkles and start shopping for that dream home. Make your dreams your reality while the market is yours!

One of the country’s biggest home builders, Pulte Homes is offering dreams for many potential first time home buyers. Pulte Homes Inc. states that it will match the new $7,500 tax credit with its own $7,500 discount on homes for first time home buyers.

Pulte Homes Inc., one of the country’s largest home builders, says it will match a new $7,500 tax credit for first-time home buyers with its own $7,500 discount on homes. This comes as a dream come true for many who are looking to take advantage of all the incentives and enticements as well as the lower housing prices to become first time home buyers. According to Pulte, the goal of this offer which will be extended to any buyer of a Pulte home is “to draw attention not only to our homes but to the housing market in general,” reports Richard J. Dugas, president and chief executive of Pulte. With the decline in housing prices, the devaluation of homes due to the increase of vacant homes from foreclosures this may help those who are ready buy and take advantage of all of the incentives.

The tax credit that was signed into law last week was lobbied hard for by home builders. It is all part of a bigger housing rescue package that is beginning to spread. Currently the housing industry is working hard to get the word to consumers and is hoping the tax break will help pull the crippled housing market out of danger. President of the National Association of Home Builders, Sandy Dunn, states that many potential first time home buyers are now in a good position to buy a home but are understandable nervous about the market. In a conference call Monday Dunn says “This tax credit will help them off the fence”.

According to the NAHB, 40% of all house buyers are first time buyers. The first time home buyer is seen as the key to restoring the housing market. This is generally because the first time home buyer does not have to unload a home before they are able to buy a new one. Focusing the incentives on the first time home buyer now can help to stimulate the industry enough to make it a prime industry for all once again and eventually help stimulate and restore the economy on the whole.

Individuals looking to qualify for the tax credit can have an adjusted income of up to $75,000 a year or a combined adjusted income of up to $150,000 a year for married couples filing jointly. Under the law a person must not have owned a home in the last 3 years to qualify as a first time home buyer. Additionally, the home purchased must close between April 8, 2008 and July 1, 2009 to qualify for the credit.

The individuals who qualify for the tax credit will be matched by Pulte Homes in a discount when they purchase a Pulte home. This may just steady the nerves of the apprehensive first time home buyer who is ready to buy that first home.

The Illinois Association of Realtors reported yesterday that home sales in the nine-county Chicago area were down 29 percent in May compared with a year ago while prices were still stubbornly out of reach for many first time home buyers, dipping just 0.5 percent, to $251,000.

Statewide, home sales in Illinois were down 22.9 percent in May from a year ago and the median price for all of Illinois dropped 7.3 percent, to $190,000, from a year ago.

First time home buyers have time on their side as rising levels of foreclosures are dumping even more unsold homes on the market, swelling the levels of unsold homes and causing prices to fall even further.

Mark Zandi, chief economist at Moody’s Economy.com in West Chester, PA, said “It’s going to be a long, painful end” to the housing industry’s decline. In an interview with Bloomberg Radio he continues, “Prices have come down enough that affordability has been restored in some markets and we’re starting to see some buyers come back in.”

While this may be bad news for home owners who have grown accustomed to using rising real estate values as a source of extra funds from regular cash back refinancings, it is good news for potential first time home owners who have yet to buy their first home.

The supply of homes for sale remains about twice the level representing a stable market, according to the National Association of Realtors. Figures have yet to show any sign of sustained sales gains. This combined with an increasing supply of homes for sale will contribute to even lower prices in the months ahead.

That’s good news not only for first time home buyers in Chicago, but every city throughout the US.