Montrose - Daily Press

MONTROSE — The first-time homebuyer tax credit was definitely a driving force for young married couple Charity and Tyler Bennigsdorf. Montrose real estate agents and home sellers hope others will be enticed, too, by its extension and the addition of a tax credit for existing homeowners.

"We figured, why not?" said 20-year-old Charity. "It's better to buy now than later when everything doesn't go our way."

Interest rates are low, inventory is high and the government is handing out money. It's a buyer's market.

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"We weren't looking to buy for another couple of years, but our jobs are really steady and we like it here," Charity said.

They heard about the $8,000 first-time homebuyer credit and decided to see what they could afford. After obtaining $143,000 approval, they set out to find the perfect home. With the tax credit coming to a close and only rumors that it might be extended, they wasted no time.

On Oct. 7, they started searching in Montrose. They found their home Oct. 11 and closed the deal 10 days later.

Charity wanted a house with land, but their price range didn't accommodate a move-in-ready home with acreage.

From January to Sept. 30, homes sold in Montrose County for up to $660,000, according to the Montrose Association of Realtors (MAR). The median was $180,000, slightly down from Montrose's 2008 10-year peak of about $200,000.

Betsy Splitzer, MAR president, has noticed that lower-priced properties are selling better, contrary to prior years.

Homes between $75,000 and $175,000 are moving, but vacant land and homes higher than $300,000 are not, she said.

Agent Marjorie Phelps of The Marjorie Phelps Co. observed similar trends.

"Low-end houses are selling," she said. "Buyers are looking for deals. 'Find me a foreclosure,' they say. They are waiting for the deal."

With the $8,000 first-time buyer tax credit extending through April 30, trends may change. The extension also provides a $6,500 tax credit for current homeowners looking to replace their primary residence.

To qualify, current owners must have lived in the same residence for any period of five consecutive years during the eight-year period that ends on the day the replacement home is purchased.

"Now you have this whole other group that can take advantage," Phelps said.

In hindsight, the Bennigsdorfs didn't need to rush, but they are happy in their new home. And they'll use their tax credit to pay off their truck, make a few payments on their car and buy new furniture for their home.

Comments

concerned res wrote on Dec 19, 2009 9:19 AM:

" Speaking of blindness, what do you think got us in this housing crisis in the first place miss judyj. Do you know who "Fannie and Freddie" are??? And YES, I do love tax breaks, but not when it leaves people further in DEBT! Do you understand that it is DEBT(whether it's personal or national) that is ruining this country. OPEN YOUR EYES! "




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JudiJ wrote on Dec 18, 2009 8:26 PM:

" Concerned Res: You're so blind to the causes (all pre-Obama) of the country's current problems. I do agree that there are people out there pushing the envelope. However, there are banks literally begging them to do so. The government is just offering a tax break (surely you love tax breaks) to those of us willing and able to purchase a home in these down times. Open your eyes. "




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concerned res wrote on Dec 17, 2009 7:23 AM:

" judyj, it was the government and not the banks that offered the incentive for first-time homeowners. You need to wake up and see that this countries problems are created by GOVERNMENT! "




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JudyJ wrote on Dec 15, 2009 8:32 PM:

" Well, well, well, Concerned Res, you and I might just agree on part of this current 'housing problem." I do, because my husband and I are doing just what the couple in the article are doing, but we've always lived within our means. However, I don't believe "our government is pushing loans." The banks are, though, still encouraging less than 80-percent ones. Very stupid, because banks are the crux of it all. Opinion-A-Tor: Jeez, wake up, will you? "




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The Opinion A Tor wrote on Dec 15, 2009 9:59 AM:

" Concerned res...'Why is our Gov't doing... this?' So they 'Own The Whole Boat' - Control everything that you / we do! They are THE WORST of "Control Freaks", want to control every aspect of our lives, through their "Community Organizing Stupidity". They will "Ruin" everything GOOD about AMERICA just to crash our economy... like they (Socialist~Marxists) did to Russia! They HATE YOUR LIBERTY, vow to destroy it, and America.
NO JOKE! ~ THROW OFF THE YOKE! "




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John Realtor wrote on Dec 14, 2009 10:14 PM:

" I do believe that the current government incentives are helping increase the number of people looking to buy a home. But it seems as though the invintory is low other than the short sales, which are a pain and take forever to close. There is going to be a huge increase in invintory of bank owned foreclosures. I am from Oceanside CA, and companies like Oceanside Real Estate are already seeing a huge increase in bank owned property hitting the market. Hopefully there is enough demand for these bank owned properties that are going to be available. "




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a_montrose_resident wrote on Dec 14, 2009 7:28 PM:

" lets be real. how many foreclosures are really to be had for a good price? they are nabbed up by insiders before they are even advertised, they are purchased, and flipped for market price. this is reality.
i see this story as propaganda to fool the masses into thinking the worst (the economy) is past, also, there is no such thing as "free handouts", this is called increased taxes, and the u;s; selling out to foreign markets. soon we will be owned by those we dispose. watch... "




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H. Craig Bradley wrote on Dec 14, 2009 9:55 AM:

" THE GO-GO DAYS ARE OVER

An in-town house in Montrose valued at $500,000 on a small lot is overvalued in today's economy. The money (local employment and wages) just is NOT there to support a McMansion anymore.

In the current market, most buyers are trying to live within their means (conservative). Speculation is down too. Homes outside city limits with some acerage usually have no shade trees and are part of relatively new developments. "




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concerned res wrote on Dec 13, 2009 12:40 PM:

" I'm happy for this couple. BUT, what I'm seeing in this article is what got this country into a mess in the first place. This 20 year old couple has a mortgage, two car payments, and now they're going shopping for new furniture. Live within your means folks.
And why on earth is our government pushing loans on such a risky group of people(first time homebuyers). How is this different than those evil credit card companies that send out pre-approved credit cards? "




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