Now is the Best Time to Buy a Home

Many potential home buyers are finding it difficult to filter out the media headlines and determine if now is the right time to buy a home. Most industry professionals agree buyers shouldn’t wait until prices and interest rates go up to buy -- now is the best time to buy a home.

Home prices in northern Nevada have dropped dramatically in the past few years and today’s mortgage interest rates are among the lowest in history. They’ve recently dipped again and borrowers can find a 30-year fixed loan for as low as 4.25percent. Rates were as high as 6.75 percent just a few years ago and in the double-digits 20 years ago.

As the economy rebounds the demands for mortgages will rise and so will interest rates. The effect of a rise in interest rates on monthly mortgage payments can be dramatic.

Based on the current median home sales price of $175,000, a 30-year fixed rate mortgage with a 4.25% interest rate has a monthly payment of $933 per month. At six percent the monthly payments increase to $1122 -- an increase of $189 a month. The total payments over the life of the loan increase by a whopping $68,040!

Home buyers that believe home prices will drop further could be making a very costly mistake. If the interest rates increase to six percent again, the home price would have to drop below $147,000 -- more than 16 percent -- to maintain the same monthly payments. House prices have begun to stabilize and bidding has become highly competitive, especially on the lower priced homes. It is highly unlikely that prices will drop that much.

Potential buyers frequently overlook the tax advantages of homeownership when considering if they should purchase a home. Mortgage interest and property taxes are great tax deductions.

While there are many variables to tax advantages, we estimate that a $175,000 mortgage with a 4.25 percent interest rate will generate $1,624 reduction in your tax liability annually.

This is the first time in four or five years that home prices and low interest rates have made northern Nevada an affordable place to live for most families. A family with a median income can afford to buy a median price home.

Low mortgage rates and affordable home prices will not last forever. The longer you wait the more you will have to pay to achieve your dream of homeownership!

Northern Nevada has many highly qualified Realtors, loan officers and builders that can be great help during your home shopping experience. To find more resources, contact the Builders Association of Northern Nevada at (775) 329-4611 or visit www.thebuilders.com.

Builders Call For Housing Reform and Economic Recovery

Please watch this video of our members and share it with everyone you know!

Regardless of where you live or what industry you work in, the health if the housing industry affects you. Housing is accounts for 20% of the GDP and is huge source of employment.

President Obama and congress are looking at extending the first time homebuyer tax credit which will help. The National Association of Home builders estimates that extending the tax credit as-is for just one year will create 187,00 jobs. Expanding that credit to all buyers of a primary residence will create nearly 350,000 jobs - in just one year. Please, urge congress to extend and expand the tax credit now.

On the local level, we must tell local governments to stop making it harder for us to do business by increasing fees and the cost of construction. These costs are passed on to the consumer and new homes cannot compete with the foreclosures and short sales. We know they need to generate revenue but we have to find another way.

HOUSING = JOBS!

Realtor and new home sales agent close a sale thanks to Facebook!

We just concluded a fabulous seminar on social media from KPS|3 Marketing (thank you Stephanie Kruse and Mike McDowell!). Just to drive the point home a little bit more, here is an article from the Nation’s Building News yesterday, published by the National Association of Home Builders.

It give a specific example of a Realtor and a new home sales agent connecting n Facebook making a sale. It’s just one more tidbit to show you how important new media, specifically social media, can be to your business.

Find out more about how KPS|3 can help your business prosper through this recession. Visit their website or call them at (775) 686-7439.

Look who has joined us...

Printing Services of Nevada, Big O Tires Sparks, JR and Associates, Corona Cyan LLC. and SCK Painting & Drywall.

Welcome new members!

HUD allows $8,000 tax credit to be used for downpayment

One of the biggest hurdles for many first time buyers is coming up with a downpayment. With housing prices so low, renters could easily find themselves making mortgage payments as low as what they currently pay for rent. If only they could come up with a downpayment.

Now they can.

New measures announced by HUD would allow FHA-approved lenders; federal, state and local government agencies; and FHA-approved non-profit organizations to supply home buyers short-term or "bridge loans" up to the amount of the $8,000 first-time home buyer tax credit.

Longer term loans secured by second liens can also be used by government agencies and FHA-approved non-profit organizations to facilitate home sales. Several state housing finance agencies have introduced such programs and a number of agencies are considering that possibility.

For more information, please visit the National Council of State Housing Agencies web site.

Previously, the home buyer would have been unable to access the tax credit until they filed their next annual tax return or an amended 2008 tax return and received the refund from the IRS.

Governor Gibbons signs tentative map extension into law

Good news for the building community! Tentative maps will now have a 4-year lifespan and final maps will be good for 2 years, with an additional 2-year extension allowed. We witnessed the Governor sign this bill into law today and it is effectively immediately.

Greg Peek, of ERGS Inc. and BANN past president, said this is a major accomplishment for builders and developers. ERGS has development project in Lyon County that had maps about to expire. The re-submitting process could have easily cost the developer hundreds of thousands of dollars.

If you have maps that re about to expire, please contact the planning department to make sure they are following the new timelines.

$15,000 homebuyer tax credit would help local prospective buyers 'get off the fence'

A recent survey of more than 1,200 registered voters found that one-third of all respondents and 61 percent of renters would be more likely to buy a home if the $15,000 home buyer tax credit were to be enacted into law.

“A $15,000 tax credit would really help us get into a new home sooner rather than later,” explained Carolyn Perkins, a northern Nevada renter looking to purchase her first home. “It would be a huge benefit.”

Read more < http://www.thebuilders.com/updates/Releases/tax_credit_survey.pdf >

Missy's day at the International Builders Show

I cautiously entered the exhibit hall and was immediately drawn to the Sears Commercial booth. I found Susie, from Dacor kitchen appliances, joyfully preparing grilled chicken salad with what she called “the best dressing ever”. She noted that it can be used as a marinade too. Susie’s amazing kitchen display was surrounded by big screen TVs, exercise equipment, Kenmore appliances and even water filtration systems.

I saw the Pink Panther at the Owens Corning Booth and put my feet up by the fire at the Heatilator booth. Our friends at Fireplace Distributors of Nevada are a local distributor of these super cool fireplaces.

As I wandered on, feeling warm and sleepy from the fire, I thought about hoping into a jetted tub at the front of the Kohler booth. Probably not a good idea!

Sounds of hammering, sawing and power tools I cannot identify, filled the air as thousands of building professionals made their way through the maze of enticing displays.

Windows and doors and flooring...oh my! For those of us that get overwhelmed in the aisles of Home Depot or Lowes, it was building supply overload!

Tomorrow, I plan to take a tour of the 'green' home that is built inside the convention center!

View all of my IBS photos on Flickr.

Missy Hinton

Forecast 2009 and Beyond

Begin 2009 with a new perspective on the construction and real estate industry in northern Nevada. The Builders Association of Northern Nevada Sales and Marketing Council Presents
Forecast 2009 and Beyond January 14, 2009.

Featuring a panel of experts in their area of expertise:
Mark Krueger of Grubb & Ellis - Residential Land and Regional Overview
Tim Ruffin of Colliers international - Commercial Development
Kris Layman of REMAX Realty - Resale Overview
Steve Schiller of Ticor Title - Resale Overview
Elliot Eisenberg Economist for the National Association of Home Builders - Financial outlook

What will the new home and resale market do in 2009 compared to 2008?
What is the outlook for new job and population growth in 2009?
What are the issues facing our area and how will they effect growth?
What will the interest rate and stock market do in 2009?

Get the expert opinions an all this and more at Forecast 2009 and Beyond!

January 14, 2009 at Atlantis Hotel/Casino Convention Center from 7:15 am - 10:00am. Tickets are $40 per person before December 31, 2008 and $50 after January 1, 2009.

Building Green in Northern Nevada

One of the hottest marketing buzzwords these days is “green”. What does it really mean? Well it means different things to different people. To most homebuyers it means energy efficient homes. To some it goes beyond that and includes a home built with sustainable materials, maybe a source of clean or renewable energy like solar.

To the Builders Association of Northern Nevada it means Sierra Green. Sierra Green is voluntary green building program specific to northern Nevada. The Sierra Green Guidelines are built key areas of green building including:

• Lot design, preparation and development
• Resource efficiency
• Water efficiency
• Energy efficiency
• Indoor environmental quality
• Operations, maintenance and building owner education


These ensure that each Sierra Green home will benefit the environment, save the homeowners money on energy bills, provide healthy and comfortable living and have reduced maintenance costs.

Builders are looking for a competitive edge in today’s market. Sierra Green provides that by identifying the number one need of homebuyers today - energy efficiency.

Learn more about Sierra Green at http://www.thebuilders.com/sierragreen.php