Buyer’s Choice Realty blog

First time home buyer tax credit: changes that may benefit you

Monday, January 12th, 2009

The stimulus package recently signed into law by President Obama, known as the American Recovery and Reinvestment Act, contains some modifications to the tax credit for first-time home buyers that was created last July.

Here are the new details that will help folks that buy in 2009:

* The credit will be the lesser of 10% of the cost of the home or $8000.

* Any single-family, primary, owner-occupied residence is eligible.

* The credit reduces income tax liability by up to $8000. Any portion of the credit that is unused will be refunded to the purchaser.

* Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000).

* Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase. * Credit applies to homes purchased on or after January 1, 2009 and before December 1, 2009.

* If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.

* The biggest change: this credit will actually be a credit, not an interest-free loan. The credit does not have to be repaid, subject to sale restrictions as listed above.

If you are a first-time buyer thinking about purchasing real estate in Massachusetts, this year is the time to do so. To learn more about the housing market in any town in MA or to set up a time to sit down together to discuss your particular situation, please do not hesitate to call or email. All details discussed will be kept confidential. Since I work only on behalf of buyers and never take listings, you can rest assured I will represent your interests only.

1.800.252.8937 (ask for John) or reach me via email

Posted in Boston Real Estate | No Comments »

Will speculators prevent a housing recovery?

Sunday, January 11th, 2009

Kathleen M. Howley wrote an interesting article recently. Check it out on Bloomberg.com. Howley’s thesis, built in large part upon interviews with Nobel laureate economist Joseph Stiglitz and co-creator of the widely used Case-Shiller housing index Robert Shiller, submits that speculators are largely to blame for the current housing recession and these same flippers/professional investors will keep prices down for some time to come.

How did this happen? Flippers bought more than they could afford thanks to no-documentation loans and other risky mortgage products during the housing market bubble in the late 1990s and early 2000s. When many of these loans ultimately went into default and the homes were foreclosed on, the bubble burst. This has been happening for four years now, and prices are still rapidly dropping.

These same speculators have been buying up foreclosures at auction and directly from lenders, which has prevented the housing market from collapsing completely, but Professor Stiglitz contends that speculators may cause a double housing recession. He said, “We’re creating a shadow inventory of homes that will be right back on the market as soon as the economy and the housing market begin to improve.”

The problem is huge, and banks (who own at least $11.5 billion of homes, according to the FDIC) also continue to contribute to it. How do you feel about banks, Professor Stiglitz? “…the same banks that created the problems by mismanaging their risk are mismanaging the disposal of their assets.”

There is no easy solution to this murky issue, but states will soon receive money allocated from the Housing and Economic Recovery Act of 2008 to purchase & renovate foreclosed homes, then sell them to families who intend to occupy the homes. States have 18 months to use their money or they will lose it. Hopefully this program will be run well by states and community groups so that potential buyers, mostly low-income, can occupy their own home, which will improve communities and settle the housing market. I have seen no indication that this money has been sent to states yet, but it is likely to be soon. Florida, Nevada, California, and Michigan, those most widely affected by foreclosure, need to act quickly and rationally.

What’s your view? We would love to hear from you. Call 800.25.BUYER (ask for John) or email me.

Posted in Uncategorized, Housing Statistics, Market Trends, Buyer Knowledge, Boston Real Estate, Foreclosure | No Comments »

Home buyer trends in 2009

Thursday, January 8th, 2009

For an interesting read and one broker’s opinion about home buyers this year, head over to REALTYTIMES®. Author Mark Nash, a real estate practitioner in the Chicago area, has done a concise job summarizing what is in and out for home buyers. According to his bio on the site, Nash has been doing his year-end “What’s in, what’s out for homebuyers” series for some years and has been featured on television and in print.

One of the ‘what’s in’ headlines surprises me and I’m not entirely confident it applies to the majority of real estate agents. The headline: Real estate agents as a housing resource, not a salesperson. While we at Buyer’s Choice Realty act as consultants to our clients, there is still evidence that the vast majority of agents care much more about getting sales than helping people, providing them with solid information, and educating them realistically, especially when such information may cause a prospective purchaser to hold off on buying a piece of property.

I hope this trend is changing, because consumers have the right to be educated about purchasing real estate, and need to know that it may not be right for them at this time based on their income, job safety, budgeting, etc.

If you are thinking about purchasing real estate in Massachusetts in 2009, call or email me to discuss your particular situation. Everything you tell me will be kept confidential, and since I only work to help home buyers, you can be sure you have my undivided loyalty. For a no-pressure situation and objective information, contact Buyer’s Choice Realty. Our past and present clients will attest that we have your best interests in mind.

800.25.BUYER (ask for John)

Posted in Market Trends, Working with your agent, Buyer Knowledge, Boston Real Estate, Caveat Emptor | No Comments »

Pending home sales down across country; Northeast no exception

Tuesday, January 6th, 2009

The National Association of Realtors® reported today that their forward-looking statistic, “Pending Home Sales Index“, based on contracts signed on previously owned homes, is down nationwide. With the economy going down the drain, huge job losses in many sectors, and consumer confidence very low, this number is no surprise.

Here in the Northeast, the numbers are the worst. The index dropped 7.2 percent to 63.2 in November and is 14.6 percent below a year ago.

Is there light at the end of the tunnel? Perhaps. The NAR’s “housing affordability index”, a complicated relationship between prices, mortgage rates, and family income, is approaching record highs not seen since 1972. Housing is actually becoming affordable again.

Real estate prices in Massachusetts show few, if any, signs of increasing for the moment. That could change by the end of this year if soon-to-be President Obama and his team roll out an effective stimulus package that focuses on housing. Financing a home purchase is as cheap as it was in the 1950s & early 60s thanks to the Federal Reserve, but if foreclosure numbers do not decrease soon, prices will continue to fall.

Is now the right time to purchase real estate in Massachusetts? For a free consultation to discuss your particular situation and goals (and to answer any and all questions you may have about the home buying process), call me at 800.25.BUYER (ask for John) or email me.

Posted in Housing Statistics, Market Trends, Buyer Knowledge, Boston Real Estate, Foreclosure | 2 Comments »

Will speculators prevent a housing recovery?

Thursday, January 1st, 2009

Kathleen M. Howley wrote an interesting article recently. Check it out on Bloomberg.com. Howley’s thesis, built in large part upon interviews with Nobel laureate economist Joseph Stiglitz and co-creator of the widely used S&P/Case Shiller real estate price index , submits that speculators are largely to blame for the current housing recession and these same flippers/professional investors will keep prices down for some time to come.

How did this happen? Flippers bought more than they could afford thanks to no-documentation loans and other risky mortgage products during the housing market bubble in the late 1990s and early 2000s. When many of these loans ultimately went into default and the homes were foreclosed on, the bubble burst. This has been happening for four years now, and prices are still rapidly dropping.

These same speculators have been buying up foreclosures at auction and directly from lenders, which has prevented the housing market from collapsing completely, but Professor Stiglitz contends that speculators may cause a double housing recession. He said, “We’re creating a shadow inventory of homes that will be right back on the market as soon as the economy and the housing market begin to improve.”

The problem is huge, and banks (who own at least $11.5 billion of homes, according to the FDIC) also continue to contribute to it. How do you feel about banks, Professor Stiglitz? “…the same banks that created the problems by mismanaging their risk are mismanaging the disposal of their assets.”

There is no easy solution to this murky issue, but states will soon receive money allocated from the Housing and Economic Recovery Act of 2008 to purchase & renovate foreclosed homes, then sell them to families who intend to occupy the homes. States have 18 months to use their money or they will lose it. Hopefully this program will be run well by states and community groups so that potential buyers, mostly low-income, can occupy their own home, which will improve communities and settle the housing market. I have seen no indication that this money has been sent to states yet, but it is likely to be soon. Florida, Nevada, California, and Michigan, those most widely affected by foreclosure, need to act quickly and rationally.

If you are interested in purchasing a foreclosure in Massachusetts, feel free to contact me to learn how to do so and avoid potential pitfalls and risks.

800.25.BUYER (ask for John) or

Posted in Boston Real Estate | No Comments »

Boston area real estate buyers: now is the time

Tuesday, December 16th, 2008

The Federal Open Market Committee (FOMC), a component of the Federal Reserve, announced today that they are lowering rates yet again. Without getting bogged down in the minutiae, this is great news for potential Massachusetts real estate buyers.

Why? Property values continue to fall in Massachusetts as a whole as well as the Boston area, but it is very possible, and indeed likely, that Boston area real estate market values will reach a bottom over the course of the next year.

How will this happen? With the help of today’s FOMC decision, key interest rates will soon reach their lowest levels on record. The cost of capital will be almost nil, and as a result banks will undoubtedly lower mortgage interest rates. Lower rates mean that more folks that are undecided whether to purchase a home will lean towards buying.

Think how much money you could ’save’ by paying 4.5% over 30 years versus paying 5%. This thought, combined with the ever-volatile equity and bond markets, means that real estate will be your best investment (and most stable).

To learn how buying real estate in Massachusetts will be great for your investment portfolio, feel free to contact me at 1.800.25.BUYER (ask for John) or email me

Posted in Loan Shopping, Economics, Buyer Knowledge, Boston Real Estate | 2 Comments »

Archive for the 'Boston Real Estate' Category

First time home buyer tax credit: changes that may benefit you

Will speculators prevent a housing recovery?

Home buyer trends in 2009

Pending home sales down across country; Northeast no exception

Will speculators prevent a housing recovery?

Boston area real estate buyers: now is the time

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