Please follow the links to the statistics for October 2009. As you can see we are still behind last year in number of homes sold and dollar volume. However for September, October and November we had more units close than we did last year. This could be attributed to the first home buyer tax credit and the new tax credit for move up buyers. The full picture on that won’t become apparent until the tax credits expire next year. Hopefully by then the economy will be closer to recovery.

Handout October 2009

MLS Area Charts October 2009

MLS Statistics October 2009

Closed Units by Month – 2007-2009

Here are the links to this months statistics reports. Our closed residential sales are only around 5% down from last year. That is good news. Let’s hope the trend continues for the rest of the year.

Handout October 2009

MLS Area Charts October 2009

MLS Statistics October 2009

http://www.billings.org/

As a homeowner, you have security and stability, the freedom to decorate and remodel, potential to build equity and tax benefits. And with interest rates still at historically low levels – 5.22% for the typical, 30-year fixed-rate mortgage (as of early August 2009), combined with ample inventory, now is a great time to buy.

Plus, there are several incentives and programs available specifically for first-time homebuyers.

First-Time Homebuyer Credit

One program that is a great financial opportunity is the highly publicized First-time Homebuyer Credit, which was part of the Housing and Economic Recovery Act of 2008. This federal initiative allows first-time homebuyers to take up to an $8,000 tax credit, which doesn’t have to be repaid, toward a new or resale property purchased prior to Dec. 1, 2009. For new construction, the purchase date is considered to be the date you first occupy the home.

Under this program, a first-time homebuyer is considered to be anyone who has not owned a principal home within the last three years. If you are married, both spouses must meet this criterion. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer. In addition, ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer. You are also eligible to claim first-time buyer status if you owned a principal residence outside of the United States within the last three years.

The actual tax credit may vary depending on the purchase price and your income. The credit is generally equal to 10 percent of the home’s purchase price, not to exceed $8,000. In addition, the income limit to receive full credit is $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return.

For complete details, visit www.irs.gov and www.federalhousingtaxcredit.com. As always, consult with your tax advisor on how this tax credit may affect you.

Mortgage Loans

As a first-time homebuyer, you don’t have the advantage of using the equity in a previous property to help bridge costs associated with down payment, closing and other fees. Many financial institutions have mortgage products with you in mind. In addition, the Federal Housing Administration (FHA) offers mortgage programs in which your down payment can be as low as 3.5% of the purchase price, and allows most of your closing costs and fees to be included in the loan. Although FHA does not directly loan to consumers, you can work with a FHA-approved lender. For more information, visit www.hud.gov.

Workshops

Besides financial assistance, there are workshops specifically geared toward first-time homebuyers. They provide a wealth of information about the home-buying process, such as how to search for a home, setting up a budget, choosing a real estate professional, loan products, and so on.

The transition from renter to homebuyer is a large step and is arguably one of the largest investments you’ll make, so make sure you take advantage of all the assistance available to make the road to homeownership that much easier.

In the surrounding Billings areas prices by area run from and increase of 19% in the Shepherd/Huntley area to a decrease of 11% in the Columbus/Absarokee area.

In the areas close into Billings prices run from an increase of 4% in the Lockwood/Emerald Hills areas to a decrease of 6% in the northwest area of Billings.

Check out some Billings real estate market graphs:

Combined Handout

MLS Area Charts

MLS Statistics