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Oh, to be a First Time Buyer in Metro Detroit…

February 16, 2009 by 3 Comments

happy-buyerOver the last few weeks I have had the pleasure of meeting with quite a few people who will be soon buying their first homes in Metro Detroit. They are excited about the opportunities they are seeing in places like Royal Oak, Birmingham, Beverly Hills, Huntington Woods and Troy. They should be excited. Today’s housing market has created unprecedented opportunities for them. I wish I was a first time buyer.

  • Housing prices are lower than they have been in more than a decade.
  • Interest rates are at a 50 year low.
  • The first time buyer’s credit provides an additional $7,500 tax credit at $0 interest is being replaced with an up to $8,000 income tax credit that does not have to be repaid. Only first time buyers are eligible. Think free money from Uncle Sam. Or think of it as $8,000 off of the purchase price. That certainly sweetens any deal… Next year, plenty of Metro Detroit first time home buyers will be getting back a hefty check from the US goverment, just because they bought a house. Not bad at all.
  • With lower purchase prices come lower property taxes, usually lower than the previous owner was paying. Listing tickets today will not yet reflect the change in taxes, because assessments just came out and the new tax bills are not sent out for a few months. Taxes are still a tricky issue, so do your research.

    • Yesterday I was out with some first time buyers who wanted to see 4 houses in Troy. We ended up seeing two because the other two were already under contract. As always, the competition for the most desirable homes will be stiff. I suspect that this spring, the first time buyer market will be especially competitive as people look to take advantage of the tax credit and market conditions.

    Be prepared. An opportunity like today’s hasn’t been seen in decades.

    Photo Credit K-Girl

    Filed Under: Buyer Information, Metro Detroit Tagged With: , , , ,
    About Maureen Francis

    SKBK Sotheby's International Realty, 248.430.4450

    Comments

    1. Vance Shutes says:
      February 16, 2009 at 6:27 pm

      Maureen,

      Like you, I’m working with a number of first-time buyers. You’ve got great info here, summarized nicely. Thanks!

      Vance Shutes’s last blog post..Average temperatures in Saline

    Trackbacks

    1. Michigan Home Buyers and Sellers to Benefit from Stimulus Bill — miOaklandCounty.com says:
      February 17, 2009 at 9:35 am

      [...] has been increased to the lesser of 10% of the purchase price or $8,000 (up from $7,500).Now the tax credit does not have to be repaid (this is great!) unless the buyer sells the home in the first 3 years and then they have to repay [...]

    2. First Time Buyers’ Tax Credit: Details for the Southeast Michigan Buyer — miOaklandCounty.com says:
      February 18, 2009 at 12:21 am

      [...] Oh, to be a first time buyer! [...]

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