Tax credits, lower prices fuel improving housing market

As temperatures warm up, so too has the housing market in the Fremont area.

Local real estate professionals point to a new federal tax credit, reduced prices and available money from lenders as reasons for an increase in home sales.

"We’re seeing a pick up in people," said Cathy Casey of NP Dodge. "I think the $8,000 tax credit (that was included in the federal stimulus package) has brought buyers out."

With the tax credit available for first-time homebuyers, Casey said she is seeing much of the buying activity in starter homes.

Marlin Brabec of Don Peterson and Associates Real Estate said homes priced under $200,000 are among the best sellers right now.

"People are thinking there are good buys out there," Brabec said.

He said home values in the Fremont area probably dropped 5 percent to 10 percent during the past year, which is good news for those looking to buy.

Shelli Novotny of Premier One Real Estate agreed home prices have come down, which is attracting attention.

"We’re seeing people from Omaha and out of state," Novotny said.

She added several options remain for those seeking financing of a home purchase. In addition to the federal tax credit, loan programs through the U.S. Department of Agriculture and the Veterans Administration offer 100 percent financing. There are other grants available, she said.

"I’m surprised at just the number of programs available to buyers," Novotny said.

Brabec said potential buyers can find loans.

"If you have good credit and some money to put down, there is money out there," he said. "Most of our loans are coming from local banks."

Casey added many of the first-time buyers are seeking traditional 30-year, fixed-rate mortgages.

"The banks have kept interest rates low," Casey said. "It’s a good time to be buying."