NAHB describes the many unprecedented opportunities in today\'s housing market, including ample inventory, attractive pricing, near-record low interest rates, tax incentives and more. The extended deadline for the $8,000 first-time home buyer tax credit, the new $6,500 credit for repeat buyers and the increased income limits in the legislation enacted on Nov. 6, 2009.

1. National Association of Home Builders INFORMS
6WWVY[UP[` 2UVJRZ
-VY /VTL )`LYZ
Homeownership
is an important part
of the American
way of life, and
there may never
be a better time to
buy than today.
www.nahb.org

2. An Exceptional Window of Opportunity
For those whose hopes have been dampened or
temporarily derailed by the housing downturn and
economic recession—the people wondering if this is
a good time to buy a home—the answer is simple: Yes.
It’s a very good time to buy. Today’s market, coupled
with a tax credit of up to $8,000 for qualified first-time
home buyers and up to $6,500 for qualified repeat buyers,
low mortgage interest rates and ample inventory, provides
an unprecedented window of opportunity for prospective
home buyers. In fact, there may never be another
buyer’s market as good as today’s.
Time is of the Essence for married couples. Partial credits
In its ongoing effort to create jobs and are available for individual taxpayers
stimulate the economy, Congress has with incomes up to $145,000 and for
provided outstanding opportunities married taxpayers with incomes up to
for home buyers with enactment $245,000.
of a tax credit of up to $8,000 for But time is of the essence to
qualified first-time home buyers and take advantage of this exceptional
up to $6,500 for qualified repeat opportunity. Only homes purchased
home buyers. Income limits for after November 6, 2009 and on or
receiving the tax credit are $125,000 before April 30, 2010 are eligible for
for single taxpayers and $225,000 these tax credits. However, in cases
;`WPJHS -LKLYHS 0UJVTL ;H_ :H]PUNZ ;OYVNO [OL -PYZ[
-P]L @LHYZ VM /VTLV^ULYZOPW
)`LYZ *SHPTPUN [OL -PYZ[ ;PTL /VTL )`LY ;H_ *YLKP[
FILING STATUS: Married Mortgage Amount
couples filing jointly.
TAX RATES: In effect during
calendar year 2010.
INTEREST RATE: Average
for 30-year fixed-rate
mortgages in 2010. (NAHB
forecast)
AVERAGE TAXABLE
INCOME: Borrower income
minus average personal
Borrower Income
exemptions and itemized
deductions. (Data from IRS Average Taxable Income
Statistics of Income)
Interest Rate
Marginal Tax Rate
Proportional savings would apply to repeat home buyers claiming a home buyer tax credit.

3. where a binding sales contract is near record lows, but rates don’t
signed by April 30, 2010, a home have to go up much for a monthly
purchase completed by June 30, mortgage payment to increase from
2010 will qualify. comfortable to unaffordable.
And even though interest rates
Great Selection remain low, lenders are looking more
An outstanding selection of homes is closely at borrowers today than in
another reason that it’s a good time recent years, so prospective buyers
to buy. An ample inventory provides might want to consider pre-qualifying
prospective buyers with a great for a mortgage to ensure that the
choice of homes. Many builders have increased the most during the boom purchasing process goes smoothly.
homes that are “move-in ready,” and that occurred in many parts of the
they may offer upgrades or other country. Greener and Better
incentives to seal the deal. Likewise, In other areas, prices may not have With energy costs near the top of
owners of existing homes who are declined as much, but for the most consumer concerns, it’s good to
looking to trade up, downsize or part, they didn’t rise as high or as fast know that new homes today are
relocate are ready to bargain. as prices in the hottest markets. more energy- and resource-efficient
than ever before. Through the use
Attractive Pricing Low Interest Rates of new materials and construction
If there’s a silver lining to the housing Like inventory and pricing, mortgage techniques, today’s homes are built
downturn, it’s that homes are more interest rates are at favorable levels. twice as energy efficient as new
affordable. Prices have moderated But rates can, and do, change quickly. homes a generation ago, making
significantly in many areas, especially No one is predicting that rates will them more affordable to own and
in major markets where they suddenly surge upward from today’s operate.
;`WPJHS -LKLYHS 0UJVTL ;H_ :H]PUNZ ;OYVNO [OL -PYZ[
-P]L @LHYZ VM /VTLV^ULYZOPW
)`LYZ OV +V 5V[ *SHPT H /VTL )`LY ;H_ *YLKP[
FILING STATUS: Married
Mortgage Amount
couples filing jointly.
TAX RATES: In effect during
calendar year 2010.
INTEREST RATE: Average
for 30-year fixed-rate
mortgages in 2010. (NAHB
forecast)
AVERAGE TAXABLE
INCOME: Borrower income
minus average personal
Borrower Income exemptions and itemized
Average Taxable Income deductions. (Data from IRS
Statistics of Income)
Interest Rate
Marginal Tax Rate

4. Benefits for Buyers
Homeownership also provides important benefits
to owners and to the nation.
Tax Benefits: $200,000 home and the home’s because it is so much more than
For Home Owners Only value increases to $205,000 over just an investment. Not only can
Unique tax benefits that apply only time, then the home owner’s equity homeownership be a steppingstone
to housing also help lower the cost (the value of the home minus to greater financial security, it provides
of homeownership. Both mortgage mortgage debt) has increased from a permanent place to call home and
interest and property taxes are $15,000 to $20,000. That’s about a great personal satisfaction.
deductible. Moreover, profits of up to 33 percent increase. Academic research shows that
$500,000 on the sale of a principal homeownership results in a wide
residence (or $250,000 for a single Building range of social benefits. Moreover,
owner) are excluded from tax on Personal Resources benefits aren’t limited to individual
capital gains. For most Americans, homeownership households. Homeownership
is a primary source of net worth and strengthens both the nation’s people
The Power of Leveraging an important step in accumulating and its communities.
Leveraging is a another advantage personal wealth over the long term. It is truly a cornerstone of the
of homeownership. A buyer can While property values have declined American way of life.
purchase a home and receive the full in some markets, Americans currently
benefit of homeownership with a cash have a total of almost $8 trillion in While NAHB has used its best efforts to
downpayment that is only a fraction of equity in their homes, and for most provide accurate information, NAHB makes
no representations or warranties with respect
the total purchase price. This is called families, home equity represents the to the accuracy or comprehensiveness of
leveraging, and it makes the rate of largest share of net worth. this brochure’s contents. NAHB specifically
disclaims any implied warranties. The information
return on a home purchase much provided in this document may not be suitable
or applicable to your unique circumstances. You
greater than on another purchase There Really is should consult with a qualified professional when
with the same value where the buyer No Place Like Home applying this information to your own situation.
NAHB will not be liable for any loss of profits or
must put up the entire price. Despite the positive financial aspects damages, including incidental, consequential,
For example, if a buyer makes of homeownership, a home cannot special or other damages.
a downpayment of $15,000 on a be valued in monetary terms alone
Learn more at www.FederalHousingTaxCredit.com