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...Central Texas home sales have slowed dramatically in the past 18 months, but there are signs the market is stabilizing...

...The recession and national housing slowdown have affected the Austin area's housing market, although the impact has been less severe than in many other cities. In Central Texas in January, sales of existing single-family homes fell for the 19th month in a row compared with the same month in the previous year, reaching their lowest level in a decade. Prices were down 6 percent, compared with 13.8 percent nationally.

In the new-home market, sales fell 26 percent last year, but the median price rose.

Even in the slower market, people are buying, and there are some encouraging signs as the traditional spring home-buying season gets under way.

They include 30-year mortgage rates just above 5 percent, their lowest level in 46 years; a new federal tax credit for first-time buyers; and a new willingness among some sellers to negotiate on price...

New Federal tax credit for homeowners:

• Who qualifies: First-time buyers or people who have not owned a home in the past three years. The house must be the primary residence.
• Income levels: A buyer's adjusted gross income can't exceed $75,000, or $150,000 on a joint return, to get the full credit. People who make more ma;y be eligible for a reduced credit.
• How much: 10 percent of the home price, up to $8,000
• Time frame: Purchased between Jan. 1 and Dec. 1. The credit can be claimed on the 2008 or 1009 tax return.
• Source: www.federalhousingtaxcredit.com  

...Twyla Brown said she and her husband are downsizing as a "pre-emptive strike" against potential future economic downturns.

...Paprocki said lower prices in the current market enabled them to buy a bigger house in a more central area than they otherwise could have.

...On the lending side, loan consultants say that mortgage money is available, provided buyers have good credit and a stable income. H owever, lending guidelines remain stringent, said Devlin McNamara, a vice president with Bank of America Mortgage in Austin. A buyer's credit score "has become more important.

Shonda Novak, American-Statesman (snovak@statesman.com; 445-3856)
03/08/2009

Source: http://www.statesman.com/news/content/news/stories/local/03/08/0308buyers.html

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