Jeannette Karis,President
Spokane Association of REALTORS®
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Despite the challenges with the economy and housing market, 83 percent of Americans, both young and old, still believe buying a home is a good financial decision. Three-fourths of those surveyed believe now is a good time to buy a home, a steady increase for the past two years. In fact, one-third of renters are thinking more about buying a home than they were a year ago, according to the 2009 National Housing Pulse Survey, an annual survey released on July 9 by the National Association of REALTORS® (NAR).

U.S. Census Bureau data highlights a trend that homeownership among the under-30 crowd has also been rising. Twenty-somethings are a bigger portion of the total home buying population than ever before, and they aren’t putting homeownership on hold for marriage or other life events.

In 1993, less than 15 percent of those under 25 owned their own home. By 2006, one in every four in this age group were homeowners. About a third of people ages 25 to 29 owned a home in 1993; by 2006, 42 percent were homeowners.

While U.S. Census data lags a few years, 2009 data provided by the Spokane Association of REALTORS® confirms that first-time homebuyers are the largest active category of buyers this year. Each former renter has an inspiring story of planning, conserving and achieving their goal.

Raising the down payment and closing costs are still considered the biggest obstacles to buying a home, which is why the $8,000 homebuyer tax credit is being utilized by qualified local home-buyers in record numbers.

A recent Wall Street Journal article listed three possible ways parents can help “gift” their child a home or investment property, and a tax professional can provide details:

• Cash gift. Individuals are allowed to gift up to $13,000 per person in a given year without incurring gift tax. A couple could give their offspring and spouse $52,000 in a single year to go toward a down payment.

• Affordable Loans. The government requires that family members meet or exceed minimum loan rates to avoid the loan being considered a gift. The rates are currently low, and parents may consider using the $52,000 gift exclusion to forgive both interest and principal.

• Use a trust. Parents put the home they want to give their children into a trust. At the end of a pre-set term, the home passes to the children with no taxes due.

(Source: WSJ, Shelly Banjo 6/25/09)

Nationally, REALTORS® are seeing more stability in the housing market, but uncertainty persists. Those who feel buying and selling activity has stabilized or stayed nearly the same have grown significantly, from 18 percent last year to 26 percent this year. However 58 percent report that activity in their market has slowed.

For the first half of 2009, year-over-year volume of homes sold in Spokane is 22% lower than the same period of 2008, but MLS reports show 1,859 homes have already sold in 2009. Affordability and activity go hand in hand in Spokane. In any marketplace there are always people wanting to buy and sell homes.

Nearly seven in 10 of NAR’s survey respondents expect local home prices to remain about the same in the next three months. Concerns about the lack of affordable housing are the lowest they’ve been in seven years of polling – 34 percent say it’s a worry, down from 41 percent two years ago.

Spokane REALTORS® are working hard to help all qualified buyers take advantage of the first-time homebuyer tax credit before the November 30th deadline. Readers are invited to browse local open houses sponsored by Spokane REALTORS® 24/7 at www.SpokaneOpen.com, and talk to a Spokane REALTOR® today.

(Source: National Association of REALTORS®)

Jeannette Karis can be reached at President@SpokaneRealtor.com.