The Stimulus Package Expected To Make A Difference In Real Estate, And It Should Help Us In Our Local Area, Durango Colorado!

I have just returned from the Colorado Association of Realtors winter meetings in Denver Colorado. There are a number of provisions in the Stimulus Plan, but this article will be limited to a few.

First, the $8,000 1st time homebuyers tax credit will help to put people in homes around the country. The National Association of Realtors expects this part of the plan will provide an additional 300,000 housing units to be sold! The income limits are $75,000 for single individuals, $150,000 for those who file jointly, and they phase out from $150,000 to $170,000. This is an improvement over the tax credit last year, as it does not have requirement for repayment, and of course, it is a little bit higher. The tax credit may be taken on the 2008 or 2009 tax returns. It expires on November 30, 2009, so the purchases must be from now until then. Each of these purchases should increase other economic activity by $60,000, from home improvements to furniture.

Second, the agency jumbo rates decreased at the first of the year, as the rules changed from 125% of median income up to $720,000, to 115% of median income to $625,000. They are now going back to the higher limits. This may help us get back up to $443,750 for FHA loans locally, from the current $379,750. This is preliminary and not final. The National Association of Realtors expects this to increase units sold nationally by 150,000 units.

Third, the next batch of TARP funds, utilized to buy back Freddie Mac and Fannie Mae loans, and help to keep low interest rates are expected to increase sales of homes by 400,000 units, according to NAR.

Last, investor limits on loans have been raised from four loans maximum by Fannie Mae and Freddie Mac to ten loans. This will assist in keeping investors interested in buying up properties for rental use.

All of these provisions in the Stimulus Plan will assist us in selling more real estate. Now, we need to spread the word of the timeliness in purchasing real estate. This is the perfect time to purchase with the high level of inventories of homes for sale, the depressed real estate market, the deeper negotiations offered by sellers, and it is critical for buyers to buy this year, while they can take advantage of the tax credit, and the artificially low interest rates.

If you would like to have further information on Durango Colorado real estate, please contact me, Don Ricedorff at The Wells Group 970-375-7014, don@frontier.net, or at my website at durangorealproperty.com.

Don Ricedorff is a licensed real estate broker in the State of Colorado, with 16 years of experience, and he resides in Durango Colorado. He has numerous real estate designations, which have provided him with an unparalleled education to assist his clients. The designations include:

CRS, Certified Residential Specialist
CRB, Certified Residential Broker
CCIM, Certified Commercial Investment Member
ABR, Accredited Buyer Representation
RSPS, Resort and Second Home Property Specialist
CIPS, Certified International Property Specialist
SRES, Senior Real Estate Specialist
CLHMS, Certified Luxury Home Marketing Specialist

He is also an active volunteer. He is the President Elect of the Durango Area Association of Realtors, and he is involved in the community and in his church. His personal interests include spending quality time with his family (wife and three children), playing tennis, fly fishing, hiking, boating, and water skiing.