We need to ignore short-term fluctuations, like the spike in home sales last November, when buyers thought the first-time tax credit would expire. Then sales rates dropped significantly when Congress extended the tax credit and removed that original sense of urgency.

We need to pay attention to long-term forecasts instead. Consider that homeownership increases by roughly 1 million each year. There are 4 million births, 2 million deaths, 1 million new immigrants, 2 million weddings and 1 million divorces each year. All of those events spur people to buy and/or sell a home.

Crunch the numbers, and you’ll see that we can expect roughly 60 million home sales, in our nation within the next decade. Regardless of the subprime mortgage debacle, and the ensuing foreclosure crisis, real estate will remain on the rails, an unstoppable freight train barreling towards homeownership.

In looking over the statistics provided by the Columbia Board of REALTORS®
I began comparing the 1st six months of 2009 with the 1st six months of 2010. It appears the total number of new listings during that six month time period saw an increase of 1% in 2010 and a 17% increase for Sales (closed properties). Again, this spike in homes sales was probably caused by the June 30th 2010 expiration of the tax credit. Prices of homes rose 2% compared to June sales figures of last year. These numbers reflect only single family homes, in the Columbia, MO. school district.
Just my 2 cents worth. Would love to hear your words of wisdom.

At least for now, home prices remain attractively low, and mortgage payments as they relate to income are very comfortable. All the information seems to point to the fact that home prices have actually overcorrected downward. What does that mean? It indicates that many markets may experience a price “snap back,” with values increasing a lot more than the historical average of 4% appreciation per year.

Some factors may continue to make buyers cautious, mostly declines in retirement savings and a lukewarm economic recovery with unemployment hovering around 10% nationally. Now is not the time to hesitate, however, as mortgage interest rates are expected to rise in 2010.

We can expect the momentum of home sales to continue, especially with the extension of the tax credit through April and the fact that qualification is no longer limited to just first-time buyers. Prices and interest rates will rise this year, so buyer confidence should be at an all-time high. The pressure cooker of pent-up demand is about to blow its top!

The existing $8,000 maximum credit stays in place for first-time buyers. A “first-time” buyer is one who has not owned a home during the three years prior to the purchase. However, repeat buyers who have lived in their home for five of the past eight years may also qualify for up to a $6,500 tax credit on their purchase.

Unlike before, as long as the property is under contract by April 30, 2010, buyers will have an additional 60 days to close by July 1, 2010. The credit applies to single-family homes, condominiums, townhomes and co-ops.

The qualifying income limits have been increased as well, up to $125,000 for individuals and $225,000 for couples filing jointly. If an individual makes up to $145,000 or a couple up to $245,000, the credit can still be claimed, but at a reduced percentage. Any incomes over those amounts won’t qualify.

If your tax credit totals more than your tax bill, you’ll receive a refund! Approximately 2 million people are expected to take advantage of this buying opportunity, so jump to action before the April 30 deadline!

This makes sense, as first-time buyers aren’t struggling with the sale of an existing home.  Combine that advantage with low home prices, large inventories, and low interest rates, and the result is a positive trend for both buyers and sellers.

More buyers entering the Columbia, MO marketplace means more sales, reduced inventories, and increasing home values. The First time homebuyer tax credit has also made a great impact.  This tax credit is available for principal residences only purchased on or after Jan. 1, 2009 and before December 1, 2009. You may also qualify if you and your spouse have not owned a home within the past three years. The tax credit does not have to be repaid, but homebuyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount.  The credit equals 10% of the home’s purchase price, up to a maximum, of $8,000, whichever is less.

The profile of sellers shows that over 90% used a real estate brokerage to market and sell their property.  Buyers profiled listed the most important agent services as helping to find the right home and negotiate satisfactory terms and price.

Buyers needing funds for a down payment, mostly use savings or a gift from family, and most often use a fixed-rate 30 year mortgage.  Columbia, Missouri has some incredible opportunities for today’s homebuyer.