The numbers for January 2009 sure didn't reflect that the Atlanta market is starting out on the right foot. The month of January didn't end much better than the way it ended in 2008. According to Steve Palm/Smart numbers, many areas had average closing prices relative to levels in the 1990's.
And trying to jump-start the struggling real estate market, Congress did pass the $8000 First Time Home Buyer's Tax Credit. This, of course, has excited a lot of realtors and buyers! However, in my opinion, as nice as this tax credit is, I am not sure it will provide the results everyone is hoping for. Most first time home buyers don't have the 3.5% (FHA) or the 5% (Conventional) down payment now required.
Although the zero down payment assistance programs did help get us into this mess I submit, "IF" these programs had also required respectable credit scores from buyers (as lenders do now) may be we would not be where we are today. I have many buyers who bought with zero down and are still very much in their homes making their monthly mortgage payments like the rest of us. This being said, I think the $8000 First Time Home Buyer Tax Credit may be more beneficial if it was designed to provide down payment assistance in conjunction with healthy credit score requirements.
Still despite it all, predictions anticipate Atlanta will begin to see improvement the third quarter of 2009. In the meantime, homes will still sell and as we begin to prepare for what is typically considered our "selling season", the rules remain:
- Pristine
- Price
- Patience
So...How did we do for January, 2009? Let's take a look:
Additional Reading:
First Time Home Buyer Frequently Asked Questions
First Time Home Buyer 2009 Revised - Outline Format
