For information on the Extended Federal Tax Credit for Homebuyers please click here for this easy to understand link Check out the Federal Housing Tax Credit  

Here is a recent article about the local housing market in our local paper
CDAPress.com
Local and National News - Kootenai County, Idaho
Friday, Nov 06, 2009 - 03:54:54 pm PST 

More than tax credit help for home buyers. 

Thank your Realtors on successful lobbying for an extension and expansion of the tax credit for homebuyers. One component of this new legislation that differs from the last credit is the addition of $6,500 for existing homeowners who want to purchase a new home. The bill also extends the $8,000 credit for first time buyers. 

These credits will apply to home purchases through April 2010 and provide a 60 day window to complete the closing. This extended closing period assuages some of the concern over the latest regulation changes with the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) which implemented waiting periods. Most lenders will agree that 60 days should provide ample time to close a transaction. 

The progress of the tax credit has been well publicized. There are other programs that will assist those wanting to buy a home or to remain in a home that may be in jeopardy of foreclosure. 

-Deed for Lease: This program will allow those in danger of foreclosure to sign over their deed to Fannie Mae. Fannie Mae will then agree to a one year lease, allowing them to stay in their home. The lease may be extended month to month and transfers to a buyer. 

-Loan modification: Although the challenges that some homeowners faced have been chronicled here, loan modifications appear to be gaining traction. If you are exploring this option, be very careful about employing companies who claim to be experts in this area. To learn more go to: www.makinghomesaffordable.gov. For free counseling in Idaho send an e-mail to: home@nhsid.org or call Neighborhood Housing Services, (208) 343-4065 Est. 119. The Department of Housing and Urban Development also has a list of approved housing counselors. Visit: www.hud.gov and click on "Avoid Foreclosure". 

-Down Payment Assistance: Buyers may be able to borrow against their anticipated tax credit to obtain funds for their down payment or closing costs. Many area banks are offering this type of program. Idaho Housing and Finance Association (IHFA) also offers a low payment second mortgage of up to 3.5 percent of the first mortgage. 3.5 percent is the required down payment for some Federal Housing Authority (FHA) loans. 

Another down payment assistance program offers up to $20,000 to first-time homebuyers with incomes that fall below 80 percent of the area median family income. This program "HOME" defers payment at 0 percent interest. The money advanced for the home purchase will be recaptured upon the sale of the home. The program expires Jan. 1, 2010. For more information visit www.ihfa.org 

For those who do not qualify for any of the programs discussed here it could be argued that there is still incentive to buy based on the current market. Currently in Kootenai County our home values remain at 12 percent below last year. Because this trend has maintained the same for five consecutive months it appears that we are at the bottom of declining values. Current incentives and interest rates below 5 percent should cause continued absorption of existing inventory. Since housing prices are driven by supply and demand, we could see upward movement in prices. 

For a fresh perspective of the current real estate market in homes, land or commercial real estate, contact a Realtor. Visit www.cdarealtors.com for market statistics, to search for properties, or to find a Realtor to work for you. 

Kim Cooper is a real estate Broker and the spokesman for the Coeur d'Alene Association of Realtors.
 

About the Spokane, Coeur d'Alene, Post Falls and Hayden Real Estate Market 

CALIFORNIANS MOVING IN Account for 35 percent of region's recent growth in population
Article in The Press 1/17/2007 

By Rick Thomas, Staff writer 

COEUR D'ALENE-- California bashers beware. They're still coming, in even greater numbers than in the past.
As recently as last summer, the perception that the Golden State was the top source of growth in North Idaho's population was a fallacy, ccording to Jim Stravens. This year's annual Inland Northwest Demographics report by JP Stravens Planning Associates, Inc. puts Californians as the top of the list, with 35 percent of the region's growth in population coming from that state.
" That's no surprise to us," Stravens said. "We haven't seen this trend for quite a while." Last year, Stravens said a third came from Washington State, a third from other Idaho counties and Montana and another third were
"made right here" as the result of local population growth.
Stravens' latest demographic report shows that in 2005, California led with 35 percent, followed by Washington State at 26 percent and surrounding states at 14 percent.
"We're only making 20 percent of population growth from people who are already here," Stravens said. "That's pretty phenomenal."
He estimates the population of Kootenai County by the end of 2007 at more than 140,000, and by 2010 above 167,000.
" They'll be older and wealthier", Stravens says.
"We're seeing more high-end type homes being constructed for older people," he said. "We're going to see a lot more of that kind of construction."
That means more age-restricted communities, an increase in seasonal population--10 percent of dwellings are now seasonal or occupied less than six months of the year and more wealthy buyers purchasing lots in high end developments like Black Rock, Gozzer Ranch and Powderhorn Bay, Stravens said.
However many of those buyers may not build homes for some time--as long as 10 years, if ever--because they're buying the property to get memberships to the exclusive golf clubs. "That's a trend we didn't see in the past," he said.
Housing for those with lower incomes will remain problematic, with about 62 percent of the county's homes now owner occupied and 28 percent rental units. Stravens said 20 percent of the population is now retired.
Housing construction peaked in 2005 and has since decreased by about half, but unemployment has remained low at 3.7 percent.
About 27.5 percent of households have incomes of less that $25,000, while the average is $56,430, which would qualify them for a home costing up to $210,000. People keep talking about low to moderate priced houses, Stravens said.
That's a misnomer, he said, because less than 25 percent would qualify.
The inventory of available homes grew by 1620 in 2006, but there are still a large number of subdivisions in the works, especially in the Post Falls area. "The number of units in Post Falls already platted is extremely high," Stravens said. That doesn't mean there's a lot of speculation, however. "Everybody wants to get their lots platted before there's a change," he said. "A lot of people complain about farmland being turned into housing. A lot of the farmers are platting their land to avoid (changes in policies)."
Even with housing construction off, there are homes being finished and enough commercial and industrial projects under way to keep the resident labor force busy, said Kathryn Tacke, regional labor economist for Idaho Commerce & Labor.
Unemployment has remained low in part because much of the labor force came in from other areas and the quantity is hard to track, she said.
There are just so many jobs, we can't seem to fill them all," Stravens said. "That appears to be the situation."
He said unemployment data doesn't take into consideration the self employed. "A lot of construction jobs fall through the crack," he said.
One trend that continues is the gradual shift in Kootenai County's center of population, which moved 1,333 feet west and slightly north since the last report as a result of growth in Post Falls and Rathdrum. Last year, it was at the intersection of Atlas Road and Hanley Ave.
In spite of a slowdown in demand for housing in the past year, Stravens doesn't see any likelihood of a retreat in prices now.
that the relative bargains in the region have been uncovered.
"Once you're discovered, it's impossible to go back," he said.  

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