HOME DELIVERY
Residential Real Estate Trends, Issues and News for Consumers
The National Association of REALTORS distributes Home Delivery every month to real
estate, personal finance and consumer journalists as a resource for background or story ideas.
A ‘Case’ of Exaggeration? Credit Where Credit is Due Buyers Can Be Choosers
A recent study by three The much anticipated Housing Buying a home is one of the
professors from Columbia and and Economic Recovery Act of biggest investments people make,
Wichita State universities has 2008 was signed into law this and the process usually begins
concluded that the housing summer and includes a great with choosing a real estate agent.
crisis has been greatly benefit for first-time home
overblown. buyers. According to the 2007 NAR
Profile of Home Buyers and
“The Foreclosure House Price Buyers who purchase a home Sellers, 79 percent of recent
Nexus” compared data from between April 9, 2008 and July buyers used a real estate
Office of Federal Housing 1, 2009, will be able to claim a professional, while only 7
Enterprise Oversight and The tax credit of up to $7,500. percent bought the house directly
Case-Shiller Index. The study Taxpayers are considered first- from the owner.
found the Case-Shiller Index to time buyers if they haven‟t
be a “poor measure of what is owned a primary residence in When choosing an agent, 43
happening to the value of most the past three years. percent of all buyers relied on
homes.” Case-Shiller contains friends, relatives and neighbors
no data from 13 states, and The credit amount is gradually for referrals; that percentage
offers only partial coverage of reduced starting at an jumped to 54 percent among
29 others. It‟s also very individual income level of first-time buyers.
sensitive to high-priced homes $75,000 up to $95,000, or for a
joint income level starting at Nearly eight of 10 first-time
in more expensive markets.
$150,000 up to $170,000. buyers said the most important
In comparison, they concluded Individuals with annual benefit of a real estate agent was
the OFHEO index provided incomes above these top levels helping them understand the
more balanced coverage of large are not eligible for the credit. process. Agents also help buyers
and small markets and each become more educated
home was weighted equally. Along with low interest rates consumers – almost half of all
The professors say most and lots of inventory, the credit buyers said their agent pointed
Americans have not experienced gives many potential buyers out unnoticed features/faults with
any major decline in the value yet another reason to get into properties they were considering.
of their homes – and aren‟t the market.
Story Springboard
likely to.
Story Springboard All‟s Well that Ends Well
Story Springboard The Clock is Ticking… Talk to homeowners and
The „Case‟ of the Missing While the tax credit is a big buyers in your area about their
Homes… benefit, it‟s important to experiences. How satisfied
Find out if the Case-Shiller remember that it is a were they with their agent,
Index includes homes from temporary program. Talk to and would they use that same
your state. Talk to Realtors® Realtors® in your community agent today?
in your area about how about how buyers are
accurately the local market is reacting. Is there a greater Please contact Michelle
represented and how it sense of urgency to buy? Are Wardlaw, 202/383-1042, or
compares to current they aware of the new mwardlaw@realtors.org for
conditions. benefit? additional ideas, sources, data,
and resources.
Home Delivery
August 2008
Volume V, Issue 8