• The Historic Tax Credit serves as an economic engine to the state. Each year, the benefits of the HTC far exceed direct cost, boosting Missouri’s economy. $4 MUST BE SPENT BEFORE $1 OF CREDIT IS ISSUED and the state gets more: $1.50 in state and local taxes for every $1 spent in credits plus the employment impact on local communities.  (MDNR/Rutgers study, 2001)
• Missouri needs jobs. This program creates construction jobs. The HTC has driven down unemployment by creating over 40,000 jobs since its inception in 1998.  (Rypkema report 2008)
• The Historic Tax Credit program serves as a model for the country. Missouri has become a leader in generating jobs with historic preservation as a direct result of the HTC program. It is the ultimate in GREEN DEVELOPMENT PROGRAMS; the Wall Street Journal declares that Missouri’s HTC is the “BEST IN THE NATION”.
• Capping the Historic Tax Credit will damage our communities, our banks, and employment. Not only will such action potentially halt current projects, but it will stop the purchase of buildings and banks providing loans for those buildings. It could potentially hurt the banks involved in project loans and continue the already deep economic downward spiral.

TO TAKE ACTION TO PREVENT DESTROYING THE HISTORIC TAX CREDIT CLICK HERE.

Starting January 2009, Missouri Housing Development Commission (MHDC) will have a new product to enable first-time homebuyers to take advantage of the $7,500 federal first-time homebuyer tax credit. This program is the first of its kind in the nation.

The federal first-time homebuyer tax credit was created by Congress this summer to encourage new homebuyers to purchase homes and thereby stimulate housing markets. However, the federal tax credit has been largely ineffective. One of the primary reasons the federal credit hasn’t worked is that the homebuyer doesn’t receive the money until he receives his federal income tax refund – which may be several months after the home is purchased. 

With over 30 years experience funding mortgages for first-time homebuyers, MHDC knows that the biggest barrier faced by first-time homebuyers is acquiring money for downpayment and closing costs. As a result, MHDC created a program that allows homebuyers to receive the value of the tax credit at the time of closing.  

Get more information from a Participating Lender about the Tax Credit Advance Loan Program.

Misouri Housing Development Commission

Internal Revenue Service tax credit aid to first-time homebuyers

Expired listings, price adjustments, and removed listings…..3,331*

Closed sales, under contract firm and contingent…..1,497*

Current properties for sale…..30,764*

*Numbers obtained through the Mid America Regional Information Systems MLS and represent activity for the past 7 days.

Expired listings, price adjustments, and removed listings…..3,849*

Closed sales, under contract firm and contingent…..1,492*

Current properties for sale…..30,932*

*Numbers obtained through the Mid America Regional Information Systems MLS and represent activity for the past 7 days.

Lawrence Yun, NAR vice president of research, notes that widening credit availability will help turn around home sales. “Conforming loans are abundantly available at historically favorable mortgage rates. Pricing has steadily improved on jumbo mortgages since the August credit crunch, and FHA loans are replacing subprime mortgages,” he says.

Yun says it’s important to place the current housing market in perspective, and that 2007 will be the fifth highest year on record for existing-home sales.

“Although sales are off from an unsustainable peak in 2005, there is a historically high level of home sales taking place this year — a lot of people are, in fact, buying homes,” he says. “One out of 16 American households is buying a home this year. The speculative excesses have been removed from the market and home sales are returning to fundamentally healthy levels, while prices remain near record highs, reflecting favorable mortgage rates and positive job gains.”

Yun emphasizes that all real estate is local with naturally large variations within a given area. For example, markets such as Austin, Salt Lake City, and Raleigh have been outperforming recently and will continue to do well next year, Yun predicts. Also, other areas like Denver and Wichita, Kansas, will likely move up in the price growth rankings due to very positive local economic developments, he notes.

Housing Outlook

“Housing is still a good long-term investment, and we’ll be seeing a broad, modest improvement in home prices in 2008,” NAR President Pat V. Combs says.

Here’s what NAR predicts:

Existing-home sales: expected to total 5.78 million in 2007 and then rise to 6.12 million next year, in contrast with 6.48 million in 2006.
New-home sales: forecast at 804,000 this year and 752,000 in 2008, down from 1.05 million in 2006. A recovery for new homes will be delayed until next spring.
Home prices: existing-home prices will probably slip 1.3 percent to a median of $219,000 in 2007 before rising 1.3 percent next year to $221,800. The median new-home price should drop 2.1 percent to $241,400 this year, and then increase 1 percent in 2008 to $243,900.

“A cutback in housing construction is a positive sign for the market because it will help lower inventory and firm up home prices,” Yun says. Housing starts, including multifamily units, are likely to total 1.37 million in 2007 and 1.24 million next year, down from 1.8 million in 2006.

Meanwhile, the 30-year fixed-rate mortgage is expected to average 6.4 percent for the next two quarters and then edge up to the 6.6 percent range in the second half 2008. Additional cuts expected in the Fed funds rate will help to keep mortgage interest rates historically favorable, according to NAR.

Also, growth in the U.S. gross domestic product is estimated at 2 percent this year, below the 2.9 percent growth rate in 2006; GDP is likely to grow 2.7 percent next year.

The unemployment rate is forecast to average 4.6 percent this year, unchanged from 2006. Inflation, as measured by the Consumer Price Index, is expected to be 2.8 percent in 2007, compared with 3.2 percent last year. Inflation-adjusted disposable personal income will probably increase 3.6 percent in 2007, up from 3.1 percent last year.

— REALTOR® Magazine Online