Gretchen Janzow Real Estate Blog

Austin's Ranked No.1 Again

April 15th, 2009 9:54 AM

Tuesday, April 14, 2009, 1:28pm CDT | Modified: Tuesday, April 14, 2009, 2:06pm

Austin ranks No. 1 for job growth potential

Austin Business Journal

Texas dominates a new list on job growth potential among the nation’s largest metropolitan areas.

Austin ranks No. 1 on the list of big cities for employment potential from NewGeography.com. The Capital City posted modest job growth of just 1 percent in 2008—but that was still better than a lot of other big cities. That growth, coupled with Austin’s long-term potential to continue creating new jobs, garnered it the top spot.

Texas’ major metros round out the top five spots on the big cities list, with Houston coming in 2nd, San Antonio 3rd, Fort Worth-Arlington 4th and Dallas 5th.

The list, based largely on job growth in regions across the nation over the long, middle and short term, has changed over the years, but the reports authors say the employment landscape has never looked like this.

“In past iterations, we saw many fast-growing economies--some adding jobs at annual rates of 3 percent to 5 percent,” said research Joel Kotkin. “Meanwhile, some grew more slowly, and others actually lost jobs. This year, however, you can barely find a fast-growing economy anywhere in this vast, diverse country. In 2008, 2 percent growth made a city a veritable boom town.”

Consequently, Kotkin said, this year’s list might more aptly be called the “least worst.” Still, he said, those least worst economies today largely mirror those that topped last year’s list, even if those regions have recently experienced less growth than in prior years.

In Austin for instance the 1 percent job growth in 2008 was less than a third of its annual average since 2003.

Looking at the complete list of metro areas—including large, medium and small cities—Texas again does well in the top five. Odessa ranks No. 1 on the overall list, followed by Grand Junction, Colo.; Longview; Houma, La.; and Killeen-Temple.

Posted by Gretchen Janzow on April 15th, 2009 9:54 AMPost a Comment (0)

First Quarter Stats for Austin-The Nation's Envy

April 13th, 2009 12:00 PM

1st Quarter Statistics show underlying Austin market resilience and opportunities.

Marketwide recap for 1st quarter '09 below from Austin Title Statistics Calculator.

A modest dip in home values of only 2.5% for first quarter '09 is the envy of the nation and is another demonstration of Austin's healthy market dynamics. While sales volume remains impacted, well positioned and properly priced properties remain attractive to area consumers. Absorptions also shows healthy inventory levels http://www.austintitle.com/eflyers/statsmap/FB09/mls_map.html For more information by MLS area, including price distribution, see austintitle.com/market statistics for easy email formated stats to send to buyers and sellers with your appended comments, name and company name in generated subject line.

Area - Q1
2008's average sale price = 2.4 % higher than 2009
2008's average list price = 1.5% higher than 2009
2008's average sp:lp ratio = 1.1% higher than 2009
1741 more units sold in 2008 than in 2009

2009

Average Sales Price $231,067

Average List Price $243,083

Average SP:LP Ratio 0.95
Average Cumulative Days on Market 114

Units Sold 3,444

Average Year Built 1993

Average Square Feet 2,094

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2008

Average Sales Price $236,594

Average List Price $246,689

Average SP:LP Ratio 0.96

Average Cumulative Days on Market 100

Units Sold 5,185

Average Year Built 1991

Average Square Feet 2,031

Posted by Gretchen Janzow on April 13th, 2009 12:00 PMPost a Comment (0)

Texas Rocks!

March 23rd, 2009 3:29 PM

About Texas ......

1.     50% of all jobs created in the U.S. this past year have been in Texas

        ( Don't miss the Texaplex video below! )

         http://www.texaplex.com/

2. Texas metropolitan areas have an expanding economy

http://www.nytimes.com/imagepages/2008/10/05/weekinreview/20081005marsh_grfk.html

3. Texas is America's Number 1 state for business

http://www.texaswideopenforbusiness.com/assets/documents/Texas_Brags.pdf

4. Texas has the top 5 healthiest housing markets in the U.S.

http://www.builderonline.com/local-markets/the-healthiest-housing-markets-for-2009.aspx

5. TEXAS ROCKS!!!

Posted by Gretchen Janzow on March 23rd, 2009 3:29 PMPost a Comment (0)

Housing Market Up in February

March 23rd, 2009 2:27 PM

The following is a national report. However, the Austin market still remains steady. We are truly blessed to have such large events like SXSW and the Austin City Limits Music Festival to bring so many tourist dollars to our local economy. As one of my favorite DJs on KUT FM 90.5 says, "I love this town, love this town, love this town..."

February existing home sales rise by 5.1 percent

Email this Story

Mar 23, 10:05 AM (ET)

By ALAN ZIBEL

WASHINGTON (AP) - A real estate group says sales of existing homes rose from January to February in an unexpected boost for the slumping U.S. housing market as buyers took advantage of deep discounts on foreclosures.

The National Association of Realtors said Monday that sales of existing homes grew 5.1 percent to an annual rate of 4.72 million last month, from 4.49 million units in January. It was the largest sales jump since July 2003.

Sales had been expected to fall to an annual pace of 4.45 million units, according to Thomson Reuters.

The median sales price plunged to $165,400, down 15.5 percent from $195,800 a year earlier. That was the second-lowest drop on record.

Prices are down about 28 percent from their peak in July 2006.

Posted by Gretchen Janzow on March 23rd, 2009 2:27 PMPost a Comment (0)

New Homebuyer Tax Credit

March 20th, 2009 1:42 PM

Here it is. I don't know about you, but it was challenging for me to figure this out. I hope this helps.

The weather is just wonderful here, and the SXSW music festival is in full swing. I haven't seen so many sleep deprived people in one place in, well, a year!

Cracking the New Homebuyer Credit

by Tom Herman

Mar 18, 2009

The Short Story:If you became a "first-time" homebuyer in 2008 or plan to become one by the end of the year, you may be eligible for a generous tax credit as part of the economic stimulus law. Here's what you need to know to claim the credit.

The recently enacted economic-stimulus law contains an unusually attractive new tax break for many homebuyers -- if they can only figure out how it works.

The new law sweetens a provision known as the "first-time homebuyer credit." In essence, if you meet certain qualifications, such as buying a home from Jan. 1 through Nov. 30 this year, you may be eligible for a tax credit of as much as $8,000. You also have a choice of claiming the credit on your federal income-tax return for 2008 or 2009. A credit is typically more valuable than a deduction, since it eliminates your taxes on a dollar-for-dollar basis -- and in this case, you may get it even if you don't owe any taxes.

But Congress made the homebuyer-credit fine print so devilishly tricky that many Americans are likely to have to pay an expert for help in deciphering it. "We've had numerous calls because people are confused," says Claudia Hill , owner of Tax Mam Inc., a Cupertino, Calif., tax-services firm. "The problem is when things are this complicated, many people don't get the benefits that Congress intended for them."

Internal Revenue Service officials recently issued a revised form and instructions. Even so, Nancy Hays of H&R Block Inc., the Kansas City, Mo.-based tax-preparation company, describes the credit as "crazy complex."

Here are answers from IRS officials and tax advisers to some questions about the credit.

Q: Who can claim the credit?

A: In general, the IRS says you may be eligible if you bought your main home, located in the U.S., after April 8, 2008, and before Dec. 1, 2009 -- and if you (and your spouse, if you're married) haven't owned any other main home during the three-year period ending on the date of purchase. That means you might be eligible even if you owned a home for many years before that period.

However, there are numerous other qualifications.

Q: How much is the credit?

A: That depends on when you bought the home and other factors, such as your income and the home's price.

If you bought during the 2008 period and qualify for the credit, the maximum credit is generally $7,500. But it's only half that amount if you're married and filing separately from your spouse. Even though it's called a credit, it's really an interest-free loan. You generally have to repay it over a 15-year period, without interest, in 15 equal installments, the IRS says. (There are several exceptions to this repayment rule. We warned you this was tricky.)

The rules are more generous if you buy a new home during the 2009 period and meet all the qualifications. In that case, the maximum amount generally is $8,000, or half that amount if you're married filing separately. More important, you don't have to repay the credit at all unless that home "ceases to be your main home within the 36-month period beginning on the purchase date," the IRS says.

Initially, there was some confusion about whether the $8,000 maximum credit would apply if someone bought a home in 2009 and chose to claim the credit on their return for 2008. It's now clear the $8,000 maximum limit does indeed apply, says Mark Luscombe , principal tax analyst at CCH, a Wolters Kluwer business. Naturally, though, "this doesn't help people who actually bought homes in the 2008 qualifying period, and who are limited to a $7,500 credit that must be repaid," he says.

Additionally, the credit generally is limited to the amounts mentioned above -- or 10% of the home's purchase price, whichever is less. For example, if you bought a new home this year for $70,000, the maximum amount of the credit would be limited to 10% of that amount, or $7,000.

Q: How do the income limits work?

A: You may be eligible for the full amount of the credit if your adjusted gross income, with certain modifications, is $75,000 or less -- or $150,000 or less if married and filing jointly. However, the credit begins to disappear, or "phase out," if your income exceeds those amounts. You can't claim the credit at all if your income is $95,000 or more, or $170,000 or more if married and filing jointly, the IRS says.

Q: What if I built a new home? How does that work?

A: You are considered having purchased it "on the date you first occupied it," the IRS says.

Q: I own more than one home. How do I figure out which is my "main" home? And does it have to be a house?

A: The IRS says your main home is "the one you live in most of the time." No, it doesn't have to be a house. It can be "a house, houseboat, house trailer, cooperative apartment, condominium, or other type of residence."

Q: Are there are other qualifications?

A: Yes. You can't claim it if your home is located outside the U.S. You also aren't eligible if you're a nonresident alien, if you inherited the home or got it as a gift, or if you acquired it from a "related person," such as your spouse, parents or grandparents.

Q: Will the credit help me if I don't owe any tax?

A: Yes. The credit "may give you a refund" even if you owe no tax, the IRS says.

Q: What form do I use?

A: Form 5405. The IRS recently revised it and posted it on its Web site ( www.irs.gov ), along with instructions. Dean Patterson , an IRS spokesman, says "programming is being done to electronically process Form 5405" to claim the $8,000 credit for homes bought in 2009. The IRS "will be able to process these returns electronically beginning March 30" this year, he says.

Q: Where do I put the credit on my Form 1040?

A: Line 69.

Q: I've already filed my return for 2008. Can I still claim it? If so, how?

A: Yes. File what's known as an "amended" return. Use Form 1040X, and attach Form 5405.

Q: If I buy this year, should I claim the new credit on my 2008 or 2009 tax return?

A: That can be tricky, and you may need to consult a tax pro. In general, most people who buy this year and qualify for the new credit probably will want to take it on their tax return for 2008, says Tax Mam's Claudia Hill. "They'll get their money more quickly," she says.

But some people might be better off claiming the credit on their 2009 returns. These would include eligible homebuyers who buy this year, whose financial circumstances changed during 2009 and who might qualify for a larger credit on their returns for 2009 than the prior year. An example would be someone whose income was too high to get any of the credit for 2008 but who recently lost his job and thus would be eligible for the full credit on his 2009 return, to be filed next year.

http://www.filife.com/stories/cracking-the-new-homebuyer-credit

Posted by Gretchen Janzow on March 20th, 2009 1:42 PMPost a Comment (0)

Austin Market Swinging Upward

March 16th, 2009 3:35 PM

Although sales have been down, our prices have been remaining stable, but see for yourself below.

AustinMarketInUpswing

Posted by Gretchen Janzow on March 16th, 2009 3:35 PMPost a Comment (0)

Healthiest Housing Markets 2009-Austin #2!

February 24th, 2009 10:44 AM

From: BUILDER 2009
Posted on: February 17, 2009 11:02:00 AM
2009's Healthiest Housing Markets

The Healthiest Housing Markets for 2009

Builder, in conjunction with Hanley Wood Market Intelligence, debuts its metric for determining markets with the best and least potential.

With most economists and builders expecting a national market decline this year, this may not seem like the best time to be selecting the "healthiest" markets in the country. Virtually every market was down last year. But a close look at the numbers reveals that some markets have way outperformed others during the last four years and are likely to continue to do so this year.

When the housing market stages its official recovery, the markets listed on the following pages are likely to lead the parade. It may take a year or more for the weakest markets--where burgeoning foreclosure sales are still pounding new home values, making building and selling new homes an exercise in futility-- to finally stage a turnaround. We’ll present that list next week.

The healthiest markets have many things in common. Most of them are great places to live, either close to the ocean, mountains, or major universities. Most of them didn’t have a huge run-up in prices during the boom and aren’t experiencing rampant deflation during the bust.

To compile these lists, we analyzed the top 75 housing markets in the country. We ranked them based on population trends and job growth, perennial drivers of housing demand. We also examined what’s happened with home prices; many of the healthiest markets have managed to hold the line on home values. And finally, we considered the rate building permits, which may be the single best ongoing indicator of builder confidence in a market. We combined all these metrics to produce a score for each market. Here are the top 15, in reverse order.

The Healthiest Markets for 2009

15. Myrtle Beach, S.C.

2008 total building permits: 3,211

Though permit activity dropped sharply last year, Myrtle Beach remains one of the hottest markets in the country, especially when you analyze the number of permits pulled per resident. Only 263,287 people live in the Myrtle Beach metro area, which until recently had been growing its population by nearly 5 percent a year. That means builders pulled one permit for every 82 residents. A steady influx of people, many of them retirees, are drawn by close proximity to the ocean and 117 golf courses at last count. That has helped keep home prices steady; they fell only 10 percent last year to a very affordable $174,800. Most of the home building is split between Brunswick and New Hanover counties. Jobs are dependent on the tourist industry, though, and the metro area was rocked last year when a $400 million rock-and-roll themed amusement part, Hard Rock Park, opened and then filed for bankruptcy. Myrtle Beach added jobs last year, but as of December employment was decreasing at a 4.2 percent rate compared to a year earlier.

Busiest builders: Centex Homes, D.R. Horton, Beazer Homes, Bill Clark Homes, Pasquinelli/Portrait Homes

2. Austin, Texas

2008 Total Building Permits: 14,250

Nine years ago, during the tech bust, some builders felt that Austin was too crowded and left. The bloom is back on Austin’s yellow rose now; it moved up the leader board to become the sixth largest home building market last year. Job creation explains the move. While other markets lost employment, Austin added 17,400 jobs last year, 2.31 percent growth rate. It helps that Austin is home to both a major university, The University of Texas, and the state capital. Existing homes cost a little bit more in Austin than other Texas markets, roughly $190,900, but that’s still below the national average. Also, Austin is one of the few metro areas in the country where median prices actually rose in 2008--1.4 percent through the first three quarters of the year. Amazingly, Austin now generates more home building activity than Chicago, which has six times more people.

Busiest builders: D.R. Horton, Lennar, KB Home, Centex Homes, Meritage Homes. Courtesy: Hanley Wood Market Intelligence.

1. Houston, Texas

2008 Total Building Permits: 42,697

They like to do things big in Houston. Now the metro area, home to nearly 5.8 million people, can lay claim to being the largest home building market in the country, with 42,697 building permits. The market is still benefiting from an influx of population and jobs and rebuilding in the wake of Hurricane Ike. Employment rose 2.2 percent last year, representing the addition of an incredible 57,000 jobs. Home building activity in Houston has only fallen 31 percent since 2005. Also, existing home prices actually rose in Houston last year, 2.8 percent, to $160,200, still a very affordable level. Roughly one third of the home building action is in Harris County, followed by Houston proper and Fort Bend County. One of Houston’s largest builders, Royce Homes, shut down last year, and Kimball Hill, one of the biggest builders in Texas, closed its doors this year after it failed to find a buyer.

Busiest builders: Lennar, Perry Homes, David Weekley Homes, MHI/McGuyer Homebuilders, and KB Home. Courtesy: Hanley Wood Market Intelligence.

Posted by Gretchen Janzow on February 24th, 2009 10:44 AMPost a Comment (0)

Central Texas Economy Update

February 19th, 2009 10:48 AM

These are amazing times we're living in. Austin is still number 2 in the nation, just behind Raleigh, NC.

Central Texas Economy In Perspective
by Beverly Kerr, Chamber Vice President of Research

Past items in this "Central Texas Economy in Perspective" series that have highlighted labor market indicators showing Austin maintaining a high level of performance in current downturn relative to other major metros. Unlike net job creation which thus far has not turned negative, 2007 and 2008 presented steep declines in Austin's housing market, so it may be interesting to see how well Austin and other Texas metros are holding their own relative to other areas.

Austin's 2008 level of residential permits issued is 28% below 2007 and 45% below 2006, which was our market's peak year for new housing activity. On the basis of percent change from 2007 to 2008, Austin's housing market would be the twelfth best performing among the nation's 50 largest metros, and the sixteenth best based on 2006-2008, but the fifth best based on 2005-2008 percent change.

Austin's 14,250 permits issued in 2008 translate into 892 per 100,000 population. On the basis of this per capita measure of activity, Austin ranks as the second best performing large metro. In 2007, 1,299 permits per 100,000 population placed Austin fourth, 2006's 1,776 permits per 100,000 population placed Austin third, and Austin ranked fifth on the basis of per capita permits in 2005.

The best performing metros for per capita housing production in 2008, Raleigh, Austin, Houston, Charlotte, and Las Vegas, were also the top five performers in 2007. Among these metros, however, the drop between 2007 and 2008 in total permits issued ranges from 28% in Austin to 48% in Las Vegas. While Las Vegas' 683 permits per 100,000 population places it near the top in 2008, this is a substantial decline from 1,355 per 100,000 during the previous year. For all of the 50 largest metros, total permits issued are down 36% in 2008 and the year saw only 287 permits issued per 100,000 population.

The lowest performing metros on a permits per capita basis in 2008 are San Louis Obispo, Portland, Detroit, San Jose and Buffalo. These metros have 2007-2008 declines in total permits issued ranging from 20% to 50%, and 2005-2008 declines range from 42% to 84%.

Austin's level of new home production has been at a pace that has kept the months supply of inventory at levels that home builders consider balanced. However, supply-demand balance in the housing market is said to be maintained with a ratio of 1 single family permit to 1.5 net new jobs. With job creation in Austin generally expected to slow in 2009, new home production may tally yet lower in the coming year.

Posted by Gretchen Janzow on February 19th, 2009 10:48 AMPost a Comment (0)

$15K Bonus for Homebuyers and Texas Economy Doing Alright...

February 17th, 2009 5:51 PM

It’s beginning to look a lot like spring here in Texas with the recent rains (for which we’re so thankful!) and the mountain laurel that is already beginning to bloom. I hope this finds you well in your neck of the woods. I thought these articles pertaining to the home buying market on the national level and our economy on a local level would be of value to you as you are looking into coming our way. We are still feeling encouraged by the numbers and activity we’re seeing in the Austin area. Despite the fear mongering of the media on a national level (I still recommend limiting your intake of daily news-it’s great for your health to do so!), things are still strong on our side of the fence.

Take care and let me know how I can serve you.

Warm regards,

Gretchen

Senate Ok's $15,000 Bonus for Home Buyers

Real Trends (02/06/09)

Housing could get a big boost from the latest addition to the mammoth stimulus bill working its way through Congress. Senate legislators unanimously approved a proposal that would allow a tax credit for homebuyers of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break but only for first-time homebuyers.

"It is time to fix housing first," said Sen. Johnny Isakson, R-G. Isakson's office said the proposal would cost the government an estimated $19 billion. In all, the stimulus is now topping an estimated $920 billion.

Texas Economy Still Ahead of the Nation's

RECON (2/03/09)

The Texas economy is cooling but continues to create jobs. While the U.S. economy lost more than 2.8 million jobs from December 2007 to December 2008, Texas gained 154,600 jobs over the same period.

The state's seasonally adjusted unemployment rate rose from 4.2 percent in December 2007 to 6 percent in December 2008. By comparison, the U.S. seasonally adjusted unemployment rate rose from 4.9 percent to 7.2 percent during the same period.

Recent decreases in oil prices have begun to adversely affect the Texas oil and natural gas industry's ability to generate jobs. The industry's employment increased 3.7 percent from December 2007 to December 2008, a drop from 7.1 percent for the period November 2007 to November 2008. Even so, the industry ranked first among Texas industries in employment growth rate.

The professional and business services industry and the leisure and hospitality industry posted annual employment growth rates of 3.3 percent from December 2007 to December 2008 and ranked second among Texas industries in job creation.

All Texas metros experienced positive employment growth rates from December 2007 to December 2008. McAllen-Edinburg-Mission ranked first in job creation followed by College Station-Bryan, Houston-Sugar Land-Baytown, and Killeen-Temple-Fort Hood.

The state's actual unemployment rate in December 2008 was 5.7 percent. Midland had the first lowest unemployment rate followed by Amarillo, Lubbock, Odessa and College Station-Bryan. The complete Texas economic report is available on the Real Estate Center's Web site.

Posted by Gretchen Janzow on February 17th, 2009 5:51 PMPost a Comment (0)

Homebuying is appening, despite the national media!

February 13th, 2009 11:44 AM

Subject: The Following Article from Today's WSJ is Why We Will See Increased Sales in 2009 of Existing Homes

For Some, It's Finally Time to Dive Into Housing Market

By MARY PILON

For years, even as her friends bought huge houses in the expensive Phoenix market, Elizabeth Child remained a renter.

But in January, the airline customer-service agent and her boyfriend closed on their first home. The three-bedroom, two-bath house, complete with granite countertops and a pool, had been listed for $340,000 in late 2007, but the couple bought it for $220,500. "Six months ago I didn't think I would own a home," says Ms. Child, 27 years old. "And now I do. It's so perfect."

Elizabeth Child and William McGeary were able to buy their first home after prices in Phoenix dropped sharply.

The housing bust is creating a new group of winners: first-time home buyers. People who sat on the sidelines -- often watching wistfully as their friends became homeowners -- are suddenly in a position to grab some great deals. Indeed, first-time home buyers made up 41% of all buyers at the end of 2008, up from 36% in 2006, according to a recent survey from the National Association of Realtors.

The new buyers are being lured in by home prices that are down about 25% from their peak levels in mid-2006, according to the S&P/Case-Schiller Index. In some markets, prices have dropped even further -- slumping around 40% in Phoenix, Miami and Las Vegas. Lower mortgage rates have also helped make real estate more affordable, and as houses languish on the market longer, more homeowners are willing to negotiate. With Congress considering plans to sweeten a tax credit for first-time home buyers, the picture could get even brighter.

"Buyers are now coming back into those hard-hit markets to take advantage," says Lawrence Yun, chief economist for the Realtors' association. "It's a buyer's market."

Ululani and Scott Larson looked for a house in the Seattle area several years ago, but held off from buying, deterred by the high prices. "I felt like we were missing out, because everyone knows it's the American dream to buy a home and build equity," Mrs. Larson says.

The couple was shocked to discover recently that they could afford a four-bedroom home in Federal Way, Wash. The assessed value of the home in January was $400,000, Mrs. Larson says. Their offer of $315,000, with a down payment of $15,000 was quickly accepted by the relocation company, which had had the property on the market for six months. "Honestly, I didn't think we'd get as nice of a house as we did," Mrs. Larson says.

Of course, would-be buyers need decent credit scores and the money for a decent down payment. Also, finding the right property can be a challenge for first-time buyers, who tend to be seeking less-expensive homes. The typical first-time buyer purchased a home costing $165,000 last year, according to the National Association of Realtors. Yet some of the best bargains right now are in luxury condos and sprawling single-family houses.

"The disproportionate McMansion inventory doesn't work," says Shari Olefson, a real-estate lawyer who works in southern Florida. "Even if you qualify for the loan, there are huge overhead costs to buying a larger home."

Still, real-estate agents and mortgage lenders are banking on first-time buyers to help stimulate the otherwise dreary housing market. Many are holding workshops and information sessions designed specifically for first-time buyers, addressing federal and state tax incentives for homeowners, local prices and ways to take advantage of low mortgage interest rates. Tim Epps, a mortgage adviser in Tulsa, Okla., runs rent-vs.-buying simulations for would-be buyers and recommends that other prospective buyers do the same long-term calculations.

Mr. Epps and many mortgage lenders recommend that buyers come up with as big a down payment as possible, even though Federal Housing Administration loans will allow some first-time buyers to enter the market with as little as 3% down. (Hud.gov has more information about FHA loan programs designed for first-time buyers.)

"Even if [a home owner] loses some paper equity, in the long run, there are some tax benefits," says Mr. Epps, referring to the deduction for interest paid on mortgages and the credit for first-time home buyers.

Elizabeth Child bought a home once listed at $340,000 for $220,500.

The $7,500 tax credit for first-time buyers, which Congress passed last year, has had little effect on the market so far. Because the credit has to be repaid, buyers are viewing it as another loan, industry experts say. But the stimulus package that Congress is working on is likely to repeal the provision that requires buyers to pay the credit back and possibly enlarge the tax credit as well.

For many buyers, the biggest question is whether to hold out for even better conditions. Historically, recoveries in the housing market are slow, and most experts expect the prices to stay low for some time. That means people can take their time shopping for the right property, real-estate experts say.

John Stratton, an agricultural engineer in Lisle, Ill., was serious about buying last summer but held off from making a bid. Some of the money he planned to use for a down payment suffered losses from mutual-fund investments. He's also waiting for prices in his area to go down further. "I can do better investing in things other than real estate," he says. "Right now, I'm not diving in."

Patience can pay off. Jen and Drew Rocky spent over a year tracking their prey before the price was right. In the summer of 2006, they saw the four-bedroom, 2½-bathroom home of their dreams in Sherman, Conn. The asking price was $565,000, "completely out of our price range," Mrs. Rocky says.

But they didn't give up. The Rockys kept driving by the vacant house. They had online alerts to notify them of changes in the property's listings. They went to town hall to research the home's public records. As they suspected, the home was in foreclosure. "There were liens all over the place," Mrs. Rocky says.

They bought the home in December 2007 for $410,000. "I felt so vindicated," Mrs. Rocky says. "We got a good deal, but I'm sure there are even better deals out there."

Write to Mary Pilon at mary.pilon@wsj.com

Posted by Gretchen Janzow on February 13th, 2009 11:44 AMPost a Comment (0)