As you all may or may not know there is a new $8,000 tax credit being offered to first time home buyers that is truly a tax credit as opposed to the previous version of the tax credit which actually had to be repaid.
However, there are restrictions on this tax credit as well. For instance, did you know that if you don’t own the home as your primary residence for at least 3 years you will have to repay the $8000 tax credit? I didn’t think so.
As a way to test your knowledge about the tax credit and a way to learn something new, NAR has set up a short 12 question quiz for anyone to take. You can take it here.
I scored 11 out of 12, how did you do?
According to a recent survey done by the National Association of REALTORS® the percentage of first time home buyers rose in 2008 to 41%, up from 39% in 2007 and 36% in 2006.
The median age of the first time home buyer went down from 31 in 2007 to 30 in 2008. With the median down payment up to 4% in 2008 from 2% in 2007. The average price of the home purchased was $165,000.
In fact, this survey has gotten some national attention, imagine that, from the Wall Street Journal. Which states that
“The housing bust is creating a new group of winners: first-time home buyers. People who sat on the sidelines — often watching wistfully as their friends became homeowners — are suddenly in a position to grab some great deals.”
What does all of this mean?
It means that with a large inventory of homes under $165,000 in the Phoenix area, and approx. 33% of the in city population, according to Wikipedia, is between the age of 25-44, the largest demographic. There is great opportunity for first time home Buyers to become first time home Owners.
