The Long Companies have recently released the latest Housing Market Report, a 5-minute video which explains how recent government efforts to stimulate the housing market and economy have helped to create a new-found affordability in today’s local housing market.
“Through a combination of historically low interest rates, the availability of FHA loan programs, and the first-time home buyer’s tax credit, homes in Arizona are now significantly more affordable,” said Rosey Koberlein, CEO of the Long Companies, continuing, “The information presented in our latest Housing Market Report video, posted at www.LongRealty.com and also on our YouTube channel www.youtube.com/longrealty, helps consumers better understand how they can take advantage of a unique opportunity that may not present itself again for a long time.”
In the video, Koberlein explains how, with median home prices now averaging $165,000 in Tucson, and mortgage rates at new historic lows during the first quarter of 2009, buying a home has become more affordable today than in recent years. Additionally, availability of FHA loans, which require a down payment of only 3 ½ percent, enable qualified buyers to purchase without the burden of having to put down much more for other mortgage programs.
In 2006, principal and interest on an FHA mortgage for a median price home in Tucson averaged $1,366 per month. With lower interest rates and home prices, a median priced home in Tucson is now only $780/month in principal and interest on a FHA mortgage, a savings of 43 percent over 2006. Buying a home has now become a very attractive alternative to renting.
Also available for a limited time is the First Time Home Buyer’s Tax Credit, equal to ten percent of the purchase price of a home up to a maximum of $8,000. For an eligible home buyer, someone who has not owned a home in the last 3 years, the tax credit can help ease the financial transition from renting to owning. Homes purchased between January 1 and December 1, 2009 are eligible.
“We know that buyers will be desperately looking for more information on the tax credit and what it means to them,” said Koberlein, continuing, “To help us educate consumers, we have information available on our website, www.LongRealty.com/taxcredit, that explains in an easy-to-read summary what the $8,000 tax credit for first time homebuyers is, how to qualify and other important information.”
She also added, “The tax credit is an important tool to help qualifying buyers save money on their home purchase. Combined with historic lows in mortgage rates, lower prices and a large selection of homes to choose from – now is an opportunistic time to buy.”