Overland Park KS Homes for sale & Johnson County Real Estate Blog: December 2008

In case you missed it and it is not hard to do considering how our government doles out information. In August our higher up's better know as Congress passed legislation creating a $7500 tax rebate for first time home buyers when you purchase a home before June 30th 2009.  Her are some things to know about the $7500 tax credit

• You can claim the $7500 on your 2008 taxes if you purchase before April 15th 2009
• You can file an extension to you 2008 taxes and close before June 30th
• If you have not owned a home in the last 2 years you are considered a first time buyer

Coupled with super low interest rates and an incredible inventory of homes you actual have more than $7500 great reasons to buy a home in 2009.

Not sold yet?

Take a look at the fantastic homes for sale

copyright 2008 The Russell Home Team www.SearchjocoHomes.com 913-681-1383

Just like 1 + 1 = 2, there are several key factors that add up to the best buyers market we have ever had. Since September 11th 2001 the housing market has been keeping the economy afloat. Low interest rate & rising home values fueled the market, while homeowners took second mortgages to finace an unaffordable lifestyle. Now the housing market is fueling the bust. But compared to other buyers market there are several key differences. During the housing bust in the 80's interest rates were hovering near 15% and pushed close to 20% at one point.

Today however interest rates are at their historical low. Just this week rate fell below 5%. Do you know the difference between 5% and 15%? Let me tell you it is a lot money per month.

Another key factor to the buyers market is inventory of homes to choose from. During the sellers market on average there was about 9,000 homes available at any given time. Now that number has increased to 19,000, more than double. That gives you the ability to search for the perfect house and forces sellers to offer competitive prices.

The last major factor is the $7500 tax incentive offered for first time buyers. You + house = $7500. What is not to like about that?

So here is the answer: low interest rates + great selection of homes + $7500 tax break = you as a new home owner.

It all adds up to a buyers market

Are you in or out?

Click Here now to See All Johnson County Homes for Sale

copyright 2008 The RussellHome Team www.SearchjocoHomes.com   913-681-1383

There is a lot of confusion out there about the current real estate market. The news has dragged the entire market through the mud for over a year now. A lot of people are confused about many things when it comes to buying a home these days. Some of the assumptions are:

Q. Do I need 20% down payment to buy a house?

A. NO

While the ability to put 20% down is a good thing, it is not necessary. FHA mortgages only require a 3.5% down payment. Not only that FHA loans are available to buyers with less than stellar credit scores.

Q. The banks have no money to lend?

A. FALSE

Once again false. The banks have plenty of money to lend, they have enacted tougher standards but they have plenty of money. What do you think the Treasury Department has been doing with the 700 Billion?

Q. I have been told now is not a good time to buy?

A. FALSE AGAIN

I can give you 5 great reason why now is a great time to buy.

1. Interest rates are their lowest ever. (below 5% today)
2. Inventory of homes is high
3. a $7500 tax credit for first time home buyers (Expires 6-30-09)
4. Many Sellers are desperate and will negotiate accordingly
5. Foreclosures & Short sales can be incredible deals

If you don't believe me ask Dave Ramsey or Suzie Orman or Donald Trump or Jim Cramer, all have said now is the best time to buy a home.

So what's the next step?

Click Here and start your home search

copyright 2008 The Russell Home Team www.SearchjocoHomes.com 913-681-1383

There have been a lot of ideas passed around on how to breathe life into the real estate market and many new laws enacted to try and do the same. We have passed a $7500 tax credit for first time home buyers. We have increased loan limits on FHA and Jumbo loans. But none of it has seemed to work. Home sales in most markets have not shown any increase and the foreclosure rate is still rising.

So what if interest rate were to sink to 4.5%? Would that spur your interest in buying a home? Many pundits are asking the Treasury Department to enact a plan to do just that. They want the Treasury to purchase enough mortgage backed securities to effectively lower interest rates down to 4.5%.  So the question is would 4.5% interest rates change your mind about purchasing a home?

Let take a look at the current rate today of 5.5% and compare. A 200,000 mortgage at 5.5% would be $1135 a month for principal & interest. At 4.5% it would be $1013 a $122 per month savings or $1464 per year in savings. Over the life of a 30 year loan that would be $43,900 in savings. Is it enough to bring a hesitant buyer into the market?

I want to know what you think? Would lowering interest rates to 4.5% change your mind about purchasing a home?

What about the additional $7500 tax credit? Would that change your mind?

Interested?

Click Here to get Started

Copyright 2008 The Russell Home Team www.SearchjocoHomes.com 913-681-1383