STIMULUS FOR HOME BUYERS

Here are some notable points for first-time home buyers in the stimulus package;


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Credit maximum was increased from $7,500 to $8,000. The credit is calculated as 10% of the purchase price. Example: If the purchase price is $70,000, the credit is $7,000.
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Removed the repayment requirement, provided the homebuyer does not resell the home for three years.
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Eligibility remains for first-time homebuyers only. In this case, a first-time homebuyer is defined as an individual who has not owned a primary home at any time during the three years prior to purchase, but who may have done so prior to that time. Although certain income limits do apply, the amount of the credit is the same for all taxpayers, married or single.
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To be eligible for the full tax credit, the homebuyer can have an annual adjusted gross income of no more than $75,000 ($150,000 on a joint return). A homebuyer with an annual adjusted gross income above that level and up to $95,000 ($170,000 on a joint return) is eligible for a reduced tax credit.
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The tax credit can be claimed on one’s individual or joint tax return for the purchase of any single-family home between Jan. 1, 2009 and Dec. 1, 2009. It can be claimed on a 2008 tax return (to be filed by April 15, 2009), an amended 2008 tax return, or a 2009 tax return. Individuals should consult a professional tax advisor for exact tax calculations and timing.

This can be a boon to the first time buyer, and can result in a check from the government. Tyler Texas real estate has homes available right now.

ONGOING MESS

Ben Bernanke said this morning that our economy is in a severe contraction. That's an understatement. On the other hand, we've had one national manufacturer here in Tyler recently announce a layoff of 150 people, but otherwise everything seems quite normal. Most of the rest of the nation is having a lot more problems.

Because of fear, there are bunches of re-financings at the local banks; and folks aren't shopping for new homes like they were. But our market seems to be steady and healthy. Restaurants, movies and retail outlets are full. Properties on which folks can be self-sufficient (several acres) are in demand more than the house on a city lot. I guess the motivation there is to be independant of the more socialist movements of the government.

But this is a place where you can come and be somewhat independant. Water is plentiful, and the weather is great. Nobody to impose stuff on you that you don't like. So, get what you can get for yours; and move to East Texas where the living is easy.

MORTGAGE RATES AND PAYMENTS

Mortgage rates remain significantly lower than six months ago. Back in August, the average 30-year fixed mortgage rate was 6.66 percent, meaning a $200,000 loan would have carried a monthly payment of $1,285.25. With the average rate now at 5.34 percent, the monthly payment for the same size loan would be $1,115.58, a savings of $170 per month. There is an average half percent origination fee nationally.

The trend on rates is downward, but if foreign banks stop buying our debt the trend may turn the other way.

These historically low rates, affordability of housing, and more choices make this a great time to buy.

PAST TIME

The market's reaction to the so-called "stimulus" package (and Mr Geithner's approach to the market problems) was violent during this past week. Investors didn't like anything they saw except the retail sales figures from January (retail sales went UP 1%). The cold, hard fact is that there is fear running rampant through the veins of most investors. They see nothing working for the foreseeable future. And the stock market reflected that fear. It is set to lose more.

But investment in real estate should not be feared. Where real estate is concerned, hoarding large amounts of cash SHOULD be feared, because the value of the dollar is sure to plummet. And when deflation of the dollar occurs, hoarders lose! Nothing is better than solid, useable real estate in times of economic stress. Buy yours now, and get the most for your dollar. God isn't making any more real estate. And we're here to help you get the most for your hard-earned cash. Come to Tyler Texas real estate, www.johncmartin.com and let's talk.

BUYER RELUCTANCE

A buyers' market should be just that -- a buyers' market. It's not a fence-sitting, waiting, loitering, delaying, dawdling, postponing, vacillating, hesitating, wavering, faltering, pausing, foot-shuffling market. It's a buyer's market. By its very name it means buyers should be doing one thing - buying. So where are the buyers, and why aren't they buying?

The great irony of a buyers' market is that, even though the opportunity to buy is high, buyer urgency tends to hit an all-time low. The media becomes the excited purveyor of negative news and uninformed advice, and buyers buy it all. Actually, it feels like the ONLY thing they're buying.

The reluctance is ironic since not so long ago buyers were incredibly excited about buying; and it was a sellers' market! Prices were escalating and it was perhaps one of the most difficult times to buy value, and yet people were buying like there was no tomorrow. Buyers were afraid of losing out by not buying, even though the advantage was all to the seller.

Now a shift has occurred. Fear is still in the driver's seat, but the tables are turned -- the fear of paying too much, and the fear generated by the media, seems to stop most in their tracks and immobilizes them. When they should have been afraid of paying too much they weren't; and now that they shouldn't be afraid of paying too much, they are. Weird, isn't it?

It's the 'deer in the headlights' syndrome.

ACTIVITY

As I watched the Obama news conference last evening, I had already written our two senators a short note: "We don't want this "stimulus" bill fixed; we want it DEAD. The president's underlying agenda, despite the smooth speach, is socialism. And our country is moving in the wrong direction.

At the same time, folks were pounding my web site for information on Tyler Texas real estate and East Texas real estate. They're looking for any safe haven; and the piney woods of East Texas is as good as any - bettter than most. With lakes and streams and mild weather, and a good economy, the Tyler area is very desireable to those with a little money. And I say "a little money", because it doesn't take much to buy something here.

So sell yours for what you can get out of it, and buy something here where property values are still increasing. And get out of the mainstream so you can enjoy your life for a change. Email me at john@johncmartin.com.

STIMULUS PACKAGE

Regardless of what the National Association of Realtors is urging; and regardless of what the Texas Association of Realtors wants; and regardless of what the Texas Real Estate Commission prefers; and regardless of what the Greater Tyler Association of Realtors would like, I have written our two senators, John Cornyn and Kay Bailey Hutchison, and told them that we don't want the "stimulus" package fixed.....we want it DEAD! My customers can count on this realtor to work for their best interests. http://www.johncmartin.com

FEBRUARY

Although Tyler's economy continues to show strength, it is not so for most of the rest of the country.

Poor economic news and thousands of upcoming layoffs only backed up the dire near-term outlook. Although existing home sales rose 6.5% in December to an annual rate of 4.74 million units, it was noted that 45% were distressed properties. And new homes sales took a dive. They were down 14.7% in December to a record low annualized rate of 331,000 units. Meanwhile, median prices fell 9.3% as inventories climbed to a 12.9-month supply.

More numbers for December and for the fourth quarter will emerge this week, and economists predict a mixed bag. But the "fed" has said that it will continue to pump money into lending.

In my opinion there's not much time left before the dollar begins to decline more rapidly. So your real estate purchases in Tyler Texas real estate need to be right away. Call, or email me at http://johncmartin.com.