Below is valuable mortgage information if you are looking to purchase a home.  The original tax credit for purchases on or after Apr 9, 2008 is listed first and the revised tax credit for purchases between Jan 1, 2009 and Dec 1, 2009 are listed accordingly.

Amount of credit -  2008 - Lesser of 10% of cose of home or $7500.  2009 Maximum credit amount increased to $8000

Eligible Property - 2008 - Any single family residence (including condos, co-ops, townhouses) that will be used as principal residence   2009 - No change.

Refundable - 2008 - Yes. Reduces or can eliminate tax liability for the year of purchase. Any unused amount of tax credit refundable to purchaser.  2009 - No change.

Income Limit - 2008 Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those cape ($95,000 and $170,000)   2009 - No change.

First-time Homebuyer Only - 2008 - Yes. Purchaser (and purchaser's spouse) may not have owned a principal residence in 3 years previous to purchase.  2009 - No change.

Revenue Bond Financing - No credit allowed if home financed with state/local bond funding.  2009 - Purchasers who utilize revenue bond financing can use credit.

Repayment - Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing.  2009 - No repayment for purchases on or after Jan 3, 2009 and before Dec 1, 2009.

Recapture - If home sold before 15-year repayment period ends, then outstanding balance or repayment amount recaptured on sale.  2009 - If home is sold within 3 years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.

Termination - 2008 - July 1,2009   2009 - Dec 1, 2009

Effective Date - 2008 - Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin 2010 tax year.  2009 - All revisions effective as of January 1, 2009.

According to a recent Jackson Sun article, Madison County home sales fell to 1,160 in 2008, down 19 percent in 2007 and 28 percent from 2005. This information comes from the Central West Tennessee Association of Realtors Multiple Listing Service.

Total home sales in just Jacksin fell 14 percent from 2007 levels and 23 percent from 2005. 

Although this information sounds bad for sellers, it is good for buyers because there is a lot of inventory to choose from.  Currently In Madison County there were approximately 730 properties for sale and 542 of them in Jackson. The number of listings equals a seven month supply. 

Tighter lending laws have also helped decrease overall home sales. Borrowers need better credit scores than in the past to qualify for home loans. Nearly all no-down payment loan programs have been eliminated. 

Many realtors believe the market will recover although it may take longer than some think.

Some brokers believe that the housing market has hit the bottom or is close to the bottom. The hardest properties to sell are those valued at $250,000 and higher. Those properties ranging from $100,000 to $175,000 continue to move fairly well. 

Whether you are a seller or a buyer, the key is to make sound, careful and well thought out choices concerning your home. For more information or if you have questions, you can call us or your local agent who can guide you though the process of the real estate market.