Joomla Login LightBox powered by WowJoomla.com

An $8,000 federal tax credit for first-time homebuyers appears to be doing the trick to convince former renters to go ahead and take the plunge into home ownership.

“It’s been fantastic,” said real estate broker Kristi Soligo. “Six weeks ago my little team had three or four houses under contract; now we have 17 or 18. The $8,000 is a huge reason it’s sparking this activity.”

While new houses are scarce, most of the interest is focused on the resale of existing houses, she said.

“We have multiple offers on some houses,” she said.

Soligo said houses under $200,000 or over $400,000 seemed to be generating the most traffic in Clay and Platte counties.

Craig Porter, a real estate developer, said the housing industry was still troubled, but the tax credit had given reluctant buyers another incentive.

“It’s an unbelievable opportunity,” Porter said. “Now is the time to buy a house, if you’re going to buy one. I think it’s a once-in-a-generation opportunity with the price of houses down, the price of lumber and labor down, low interest loans and the $8,000 that can also be used by those who haven’t owned a house in three years or longer.”

Porter, who recently acquired some lots at auction in the Smithville area, said he was getting ready to start eight to 10 new houses in Lake Meadows in the $140,000 to $160,000 price range.

“We’re aiming at the first-time home buyers,” Porter said.

While single-family permits are still sluggish, Jeremy Adams, chief building official for Liberty, said he had noticed a little movement upward.

“I’ve seen a little pick up in the last month,” Adams said. “We’ve issued five single-family permits, four of them in the last 30 days.”

According to the Home Builders Association of Greater Kansas City, single-family building permits jumped 29 percent in April from the month before.

The National Association of Realtors showed “pending home sales nationwide rose for the second straight month while affordability improved to near record highs.”

Tim Underwood, HBA executive vice president, said all of this was a ray of good news for homebuilders and the economy.

“The key ingredient missing from the recovery of the housing industry has been consumers buying homes,” Underwood said in a press release. “Affordability is at its peak, inventories are dwindling and the combination of low mortgage rates and the $8,000 first-time home buyer tax credit are bringing buyers back into the market.”

Underwood said consumers could use the $8,000 credit for down payments and closing costs on FHA-insured mortgages.

“The biggest obstacle most buyers have is putting together the required down payment,” Underwood said.

Liberty Editor Angie Anaya Borgedalen can be reached at 781-4941 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Comments (1)

Subscribe to this comment's feed

Oh Boy..
written by Phil Silvers, June 11, 2009

As if bailing out car companies and morgage lenders weren't enough now we get to put the bill for more foolishness. The money for these tax breaks are going to come from somewhere, another burden on the backs of the american taxpayer.

Spread the wealth, there's change you can believe in.

• 
• +0
• 
•