It really is!!! Of course real estate is person to person – evaluating all the data and how it effects you will determine if the heading applies. It certainly is true for a large percentage of people. There are a number of factors that make that statement true for you. First, the area comprised of the Delaware Valley is always considered, and is still so, one of the steadiest markets and therefore a top market in the United States. Historically, we remain in the top markets because of our diversity, proximity and who we attract. Home prices are down a little compared to the rest of the US. We do not participate in the highs and lows that a large part of the US experiences. Second, the tax credit for Home Buyers of $8,000.00 and Home Buyers eligibility is anyone whose name has not been on a deed in 36 months. And they are considering allowing it to be used as a down payment. This runs out December 1, 2009. Third, if you are selling and buying (up or down) you may experience less money for your current home but please remember you are Buying so you will be playing in that market too! Here is the kicker, the swing vote, the absolute slam dunk – mortgage rates may never be this low again! If you fit into this big picture, please call and let’s discuss your options. Richard Hopkinson Keller Williams Real Estate.

 

 

 

 

 

Please forward to Family, Friends and associates. More information is on my website www.RichardHopkinson.net PIZZA, DRINKS, and VALUABLE HANDOUTS

will be provided. Seating is limited and information is personalized along with food needs to be ordered - Please RSVP no later than 12:00 Noon of Seminar day.

People you know - family, friends, church, co-workers looking at Buying? First time Home Buyer? Haven't purchased a Home in a while? Curious about what is really going on? Come and see for yourself or share with your circle what it takes to buy a Home at our Free HOME BUYING SEMINAR. June 4th 6:30pm - 8:00pm at our Blue Bell office. 910 Harvest Drive Ste 100 Blue Bell, PA 19422. Very convenient to all localities, this seminar will offer you experts in all fields to walk you through the Home Buying process and answer all of your questions. You will leave with valuable information for you to use when you are ready to take the leap! Topics include: Tax Credit; Credit Repair; Mortgage; Home Inspection to name just a few! We will be serving pizza and drinks so come hungry for both pizza and information - plenty of both! Please get this information out - it is not for many of you, but for someone you know! We are asking that people make reservations because of food orders, information is personalized, and seating is limited. Register here, by returning via email , or phone (215) 654-5431

Tax Credit Can Be Used for Down Payment
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.

Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.

“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..

He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

Due to the increased volume of purchases in the market, I have received several questions about the first time home buyer tax credit over the past several weeks.  Hopefully the information below answers some of your questions regarding this topic.  As always, I would defer to the "expert" in the field and suggest you speak with a tax accountant to ensure this information is accurate.  This information was gathered by Eric Baitinger; Cornerstone Mortgage – my “in house” mortgage guy. Feel free to call Eric and discuss any other questions regarding mortgage or financing. (215) 654-6070.

Richard Hopkinson

 

Real Estate Page April 2009  ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

The First-Time Homebuyer Tax Credit    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ In 2008, Congress enacted a $7500 tax credit designed to be an incentive for first-time homebuyers to purchase a home. For 2009, Congress has increased the credit to $8000 and made several additional improvements. This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009. Tax Credits -- The Basics 1. What's this new homebuyer tax incentive for 2009? The 2008 $7500 repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. 2. Who is eligible? Only first-time homebuyers are eligible. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase. 3. How does a tax credit work? Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual's income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return, a person has a total tax liability of $9500, an $8000 credit would wipe out all but $1500 of the tax due. 4. So what happens if the purchaser is eligible for an $8000 credit but his/her income tax liability is only $6000? This tax credit is what is called a "refundable" credit. Thus, if the eligible purchaser's total tax liability was $6000, the IRS would send the purchaser a check for $2000. The refundable amount is the difference between the $8000 credit amount and the amount of tax liability. 5. Is there an income restriction? Yes. Individuals filing Form 1040 as Single (or Head of Household) are eligible for the credit if their income is no more than $75,000. Married couples who file a Joint return may have income of no more than $150,000. 6. Do individuals with incomes higher than these limits lose all the benefit? The credit phases-out between $75,000 - $95,000 for singles and $150,000 - $170,000 for married filing joint. The closer a buyer comes to the maximum phase-out amount, the smaller the credit will be. The law provides a formula to gradually withdraw the credit. 7. What's the definition of "principal residence?" Generally, a principal residence is the home where an individual spends most of his/her time (generally defined as more than 50%). It is also defined as "owner-occupied" housing. The term includes single-family detached housing, condos or co-ops, townhouses or any similar type of new or existing dwelling. 8. Are there restrictions related to the financing on the property? Congress eliminated the financing restriction that applied in 2008 that disallowed the credit if the financing was obtained by means of tax exempt mortgage revenue bonds. 9. Do I have to repay the tax credit? There is no repayment for 2009 tax credits. However, if the home is sold within three years, the credit must be recaptured upon sale. 10. Do 2008 purchasers still have to repay their tax credit? The $7500 credit in 2008 was more like an interest-free loan. All eligible purchasers who claimed the 2008 credit will still be required to repay it over 15 years, starting with their 2010 tax return. 11. Can I use the credit amount as part of my down payment? Congress tried hard to devise a mechanism that would make the funds available for closing costs but found that pre-funding would require cumbersome processes that would, in effect, bring the IRS into the purchase and settlement phase of the transaction. 12. Is there a way to get any cash flow benefits before I file my tax return? Any first-time homebuyers who believe they are eligible for all or part of the credit can modify their income tax withholding or adjust their quarterly estimated tax payments. Individuals subject to withholding would get an IRS Form W-4 from their employer. Source: National Association of Realtors®. To obtain the entire document, please contact us (info below) Copyright 2009, All rights reserved The Hershman Group, www.originationpro.com

1. Decide to buy.

Although there are many good reasons for you to buy a home, wealth building ranks among the top of the list. We call home ownership the best “accidental investment” most people ever make. But, we believe when it is done right, home ownership becomes an “intentional investment” that lays the foundation for a life of financial security and personal choice. There are solid financial reasons to support your decision to buy a home, and, among these, equity buildup, value appreciation, and tax benefits stand out.

Base your decision to buy on facts, not fears.

1.       If you are paying rent, you very likely can afford to buy

2.       There is never a wrong time to buy the right home. All you need to do in the short run is find a good buy and make sure you have the financial ability to hold it for the long run

3.       The lack of a substantial down payment doesn’t prevent you from making your first home purchase

4.       A less-than-perfect credit score won’t necessarily stop you from buying a home

5.       The best way to get closer to buying your ultimate dream home is to buy your first home now

6.       Buying a home doesn’t have to be complicated – there are many professionals who will help you along the way

2. Hire your agent. ( If I might take a moment to suggest a GREAT AGENT – Richard Hopkinson )

The typical real estate transaction involves at least two dozen separate individuals – insurance assessors, mortgage brokers and underwriters, inspectors, appraisers, escrow officers, buyer’s agents, seller’s agents, bankers, title researchers, and a number of other individuals whose actions and decisions have to be orchestrated in order to perform in harmony and get a home sale closed. It is the responsibility of your real estate agent to expertly coordinate all the professionals involved in your home purchase and to act as the advocate for you and your interests throughout.

Seven main roles of your real estate agent

A Buyer’s Real Estate Agent:

1.       Educates you about your market.

2.       Analyzes your wants and needs.

3.       Guides you to homes that fit your criteria.

4.       Coordinates the work of other needed professionals.

5.       Negotiates on your behalf.

6.       Checks and double-checks paperwork and deadlines.

7.       Solves any problems that may arise.

Eight important questions to ask your agent

Qualifications are important. However, finding a solid, professional agent means getting beyond the resume, and into what makes an agent effective. Use the following questions as your starting point in hiring your licensed, professional real estate agent:

1.       Why did you become a real estate agent?

2.       Why should I work with you?

3.       What do you do better than other real estate agents?

4.       What process will you use to help me find the right home for my particular wants and needs?

5.       What are the most common things that go wrong in a transaction and how would you handle them?

6.       What are some mistakes that you think people make when buying their first home?

7.       What other professionals’ do you suggest we work with and what are their credentials?

8.       Can you provide me with references or testimonials from past clients?

3. Secure financing.

While you may find the thought of home ownership thrilling, the thought of taking on a mortgage may be downright chilling. Many first-time buyers start out confused about the process or nervous about making such a large financial commitment.

From start to finish, you will follow a six-step, easy-to-understand process to securing the financing for your first home.

Six steps to financing a Home

1.       Choose a loan officer (or mortgage specialist).

2.       Make a loan application and get preapproved.

3.       Determine what you want to pay and select a loan option.

4.       Submit to the lender an accepted purchase offer contract.

5.       Get an appraisal and title commitment.

6.       Obtain funding at closing.

4. Find your home.

You may think that shopping for homes starts with jumping in the car and driving all over town. And it’s true that hopping in the car to go look is probably the most exciting part of the home-buying process. However, driving around is fun for only so long – if weeks go by without finding what you’re looking for, the fun can fade pretty fast. That’s why we say that looking for your home begins with carefully assessing your values, wants, and needs, both for the short and long terms.

Questions to ask yourself

1.       What do I want my home to be close to?

2.       How much space do I need and why?

3.       Which is more critical: location or size?

4.       Would I be interested in a fixer-upper?

5.       How important is home value appreciation?

6.       Is neighborhood stability and priority?

7.       Would I be interested in a condo?

8.       Would I be interested in new home construction?

9.       What features and amenities do I wasn’t? Which do I really need?

5. Make an offer.

When searching for your dream home, you were just that – a dreamer. Now that you’re writing an offer, you need to be a businessperson. You need to approach this process with a cool head and a realistic perspective o your market. The three basic components of an offer are price, terms, and contingencies (or “conditions” in Canada).

Price – the right price to offer must fairly reflect the true market value o fthe home you want to buy. Your agent’s market research will guide this decision.

Terms – the other financial and timing factors that will be included in the offer.

Terms fall under six basic categories in a real estate offer:

1.       Schedule – a schedule of events that has to happen before closing.

2.       Conveyances – the items that stay with the house when the sellers leave.

3.       Commission – the real estate commission or fee, for both the agent who works with the seller and the agents who works with the buyer.

4.       Closing costs – it’s standard for buyers to pay their closing costs, but if you want to roll the costs into the loan, you need to write that into the contract.

5.       Home warranty – this covers repairs or replacement of appliances and major systems. You may ask the seller to pay for this.

6.       Earnest money – this protects the sellers from the possibility of your unexpectedly pulling of the deal and makes a statement about the seriousness of your offer.

6. Perform due diligence.

Unlike most major purchases, once you buy a home, you can’t return it if something breaks or doesn’t quite work like it’s supposed to. That’s why home owner’s insurance and property inspections are so important.

A home owner’s insurance policy protects you in two ways:

1.       Against loss or damage to the property itself

2.       liability in case someone sustains an injury while on your property

The property inspection show expose the secret issues a home might hide so you know exactly what you’re getting into before you sign your closing papers.

• Your major concern is structural damage.
• Don’t sweat the small stuff. Things that are easily fixed can be overlooked.
• If you have a big problem show up in your inspection report, you should bring in a specialist. If the worst-case scenario turns out to be true, you might want to walk away from the purchase.

7. Close.

The final stage of the home buying process is the lender’s confirmation of the home’s value and legal statue, and your continued credit-worthiness. This entails a survey, appraisal, title search, and a final check of your credit and finance. Your agent will keep you posted on how each if progressing, but your work is pretty much done.

You just have a few pre-closing responsibilities:

1.       Stay in control of your finances.

2.       Return all phone calls and paperwork promptly.

3.       Communicate with your agent at least once a week.

4.       Several days before closing, confirm with your agent that all your documentation is in place and in order.

5.       Obtain certified funds for closing.

6.       Conduct a final walk-through.

On closing day, with the guidance of a settlement agent and your agent, you’ll sign documents that do the following:

1.       Finalize your mortgage.

2.       Pay the seller.

3.       Pay your closing costs.

4.       Transfer the title from the seller to you.

5.       Make arrangements to legally record the transaction as a public record.

As long as you have clear expectations and follow directions, closing should be a momentous conclusion to your home-searching process and commencement of your home-owning experience.

8. Protect your investment.

Throughout the course of your home-buying experience, you’ve probably spent a lot of time with your real estate agent and you’ve gotten to know each other fairly well. There’s no reason to throw all that trust and rapport out the window just because the deal has closed. In fact, your agent wants you to keep in touch.

Even after you close on your house, you agent can still help you:

1.       Handle your first tax return as a home owner.

2.       Find contractors to help with home maintenance or remodeling.

3.       Help your friends find homes.

4.       Keep track of your home’s current market value.

Attention to you home’s maintenance needs is essential to protecting the long-term value of your investment.

Home maintenance falls into two categories:

1.       Keeping it clean: Perform routine maintenance on your home’s systems, depending on their age and style.

2.       Keeping an eye on it: Watch for signs of leaks, damage, and wear. Fixing small problems early can save you big money later.

Many of your clients are afraid to buy a home in times like these, with the economy tanking and home prices continuing to fall. However, as agents, it is your job to explain to your potential buyers that this is a great time to stray from the herd because they might be in for the home-buying opportunity of a lifetime. So, we decided to list 5 great reasons that your prospects should be buying a home this year.

 

1. Affordability is better than ever According to the National Association of Realtors' housing affordability index, homes were more affordable in December than at any other point since the group started the index in 1970. The affordability index is a measure of the relationship between home prices, mortgage interest rates and family income.

 

2. You have a large inventory to choose from In many places, it is taking months to sell a home, creating loads of inventory -- from new homes to existing homes to foreclosures. There was a 12.9-month supply of inventory in December given that month's sales pace, according to NAR.
A large selection gives buyers more choices and drives down prices. Also, home sellers have gotten the picture and have started lowering asking prices.

 

3. Builders are offering big discounts Home builders are getting even more aggressive with their pricing. (DON’T FORGET – Go through your Realtor when dealing w/ Builders. You don’t pay the Realtor, the Builder does only if your Realtor is with you!) In fact, Eddie Fadel, author of the book "Don't Rent, Buy" recommends looking at completed new homes first because builders are offering such steep discounts. Plus, you'd have a warranty not only on the home itself, but also on the home's appliances, he said. "[Builders] want to save their credit, save their brand, save their reputation and clear out inventory," he said. "They can go buy cheap land today with that cash." His advice: have you clients walk in with a preapproval for a mortgage, make an offer, then walk away without making a deal if you have to. Chances are, a builder will call back and reconsider that offer rather than let a potential buyer get away.

 

4. Mortgage rates are historically low It is not just the price of the home that will affect affordability; mortgage terms will also affect your monthly payments. These days, rates are very attractive for conforming loans, those that can be purchased by mortgage agencies Fannie Mae and Freddie Mac. (The current limit is $417,000, although that can rise as high as $625,500 in high-cost markets.) Earlier this year, rates on the popular 30-year fixed-rate mortgage hit a level not seen in decades, and rates have stayed relatively near that low for weeks. This week, the 30-year fixed-rate mortgage averaged 5.25%, according to Freddie Mac's weekly mortgage survey.

 

5. You can get a federal tax credit There's currently a federal credit of up to $7,500 for home buyers who haven't owned a home in at least three years. The credit needs to be paid back, although the repayment feature is removed in the economic stimulus plan if it is passed in the House of Representatives.

That extra cash will come in handy: The average first-time home buyer spends about $6,000 in the first six months of owning a home.

The National Home Builders Association is pushing for more help for home buyers, including an even bigger tax credit -- the Senat,e in its version of the economic stimulus bill, is proposing a $15,000 credit. Both NAHB and the National Association of Realtors want the incentive to help all buyers, not only those who are becoming homeowners for the first time.

I am now a Certified Credit Consultant (CCC) and in my time I have learned a few truths: The Credit Reporting agencies are private organizations, not part of government. They collect information and sell it to whoever wants to buy it. I did not say they collect accurate information. I said information. The 3 bureaus make many billions of dollars a year. They are not on your side - as a matter of fact, (to be a bit dramatic) they are the enemy! 8 out of 10 credit reports are wrong! Monitoring your credit through the credit bureaus is about like asking the fox to watch the hen house. They are monitoring their own inaccurate information! Any monitoring system is a waist of money. Let me show you CREDIT REPAIR in 75 days with a 50 - 100 point average upswing in your credit score! Sometimes a lot more! Affordable and totally worth it! Save thousands of dollars per year on interest rates! Part of the repair process is: 1st step is to dispute the accuracy, where we ask all 3 bureaus to verify the information. They write back and say their information is accurate. We counter with the 2nd step which is the bureaus, by law, having to verify with the accuracy of the source of the credit. If the bureaus haven’t fixed the inaccuracies by now you move to the 3rd step which is getting the Federal Trade Commission involved. The ability for you to have a say so about your credit came about with the Fair Credit Reporting Act.

 

Click on the Credit Repair link on the links page to start the very simple and affordable Credit Repair process! In 75 Days You can have a 50 - 100 point average upswing on Your Credit Score!

 

If they cannot or do not get to the source of your credit in the prescribed time the negative trade lines must come off your credit! And the points roll up! Let's take a look and see what we can do for you! CREDIT REPAIR in 75 days with a 50 - 100 point average upswing in your credit score! Sometimes alot more! Affordable and totally worth it! Save thousands of dollars!!! There are a number of Credit Repair companies springing up… let me show you why we are the fastest growing and why we are the BEST!

Ø      Not understanding how important the real estate agent is to the process of real estate. Not only do I make sure everything is correct along the way, I put more money in your pocket! Keeping your “real estate train” on the track from point A to point Z is all the reasons why.

 

Ø      Discounting Real Estate Commissions only hurts you! When you list your home with a realtor the commission is split with a buyer agent. Agents look at the commission with the most and the lesser commissions standing out. Also, with all the marketing tools at my disposal for you, it is very expensive to market homes. “You will get what you pay for!” could not be more true than in real estate!

 

Ø      Making the mistake of acting or not acting on your real estate ideas based on the news or other real estate markets that are not, at the very least, in the Delaware Valley. Actually, your real estate market concerns are within a few miles of your home. It changes from community to community. The Delaware Valley, historically, is one of the most consistently high markets. You should base your ideas around your situation and find out what the “numbers’ are for your area.

 

Ø      Thinking you will lose money if you sell. In this market, when Selling and then Buying, what you may lose on the Selling side will be gained back on the Buying side. It is a wash at least and maybe a small gain. Believe it or not, some market areas, in our area, the values are up.

 

Ø      So many Sellers forget the reasons they are selling and switch into “investor” mode. Don’t get me wrong, that is an important idea – but it shouldn’t be the only idea. Take a look at your “big picture”- as in all the reasons you want to sell. Your “big picture” and all your reasons maybe served best in our current market. As in my idea above, when you are Selling and Buying, Sellers tend to look at what they will lose on the Selling side only and do not see that NOW may be the best time in real estate history to buy! Example: your “big picture” may be you need a bigger home – do you really want to wait until the market “turns around”? Then you will get more for your current home and pay more for your new one!

 

Ø      Getting your house “ready for sale”. A lot of money is wasted on projects you are doing that will not result in making more money. Conversely, there are projects you should be doing. Let me come over and evaluate your house from a real estate expert’s perspective. More money in your pocket is my creed!

 

Ø      Dismissing the ideas of setting up your home to sell. When you sell, you are selling a house – not your home. You will take your home with you. It is imperative you depersonalize! I will sell your home! You could start packing. Neutral does not necessarily mean bone white. Soft shades of color are still neutral. Cute pictures of babies, especially grand babies will be the death of real estate! Sorry, to be so dramatic (I know) but you get my point. Understanding how Buyers think is a great strength of mine.

 

Ø      Over valuing your home. Remember, it is a house for sale – not your home. Before they arrive to show your house, the real estate buying agents have pulled the same comps that I pulled to come up with the list price. There is no mystery about price. And, because your house has “platinum faucets” doesn’t mean it will sell for any more money.

 

Ø      Remember during the selling process your house needs to stay in constant showing condition. Selling your house is uncomfortable at best. It is important to let every potential Buyer see your home. Last minute Buyers have bought a lot of homes. If you keep your house in “ship shape” you will be able to accommodate all comers. Please note: when possible you should leave – buyers feel uncomfortable “looking” if you are around.

By Luke Mullins, USNews.com                                                                      Dec 21st, 2008

 

In the face of an intractable credit crisis and a recession that could be the deepest since World War II, economists are expecting another downcast year for housing in 2009. Mission Residential Chief Economist Richard Moody, for example, projects home prices to continue along their downward slope for the entire year before hitting bottom in early 2010. But while there's no shortage of gloomy data-rising unemployment, higher mortgage delinquencies, increasing foreclosures-glass half-fullers do have a number of hopes to cling to. And while these more optimistic factors might not be enough to spring housing back to life in 2009, they could-with a few lucky breaks-prevent the market from declining as sharply as it otherwise might.

Here are the five best reasons to be hopeful about housing in 2009:

 

1. Cheap mortgage rates: With inflationary pressures easing and economic concerns mounting, shell-shocked investors are seeking the protection of government securities, such as 10-year treasury notes, driving down yields. The lower yields, coupled with the Fed's recently announced plans to buy up debt and mortgage-backed securities from Fannie Mae and Freddie Mac have dragged mortgage rates to multi-year lows. Thirty-year, fixed mortgage rates hit an average of 5.47 percent last week, the lowest they've been since 2004, according to Freddie Mac.

To be sure, not everyone will be able to take advantage of these attractive rates: Tougher lending standards will prevent many would-be buyers from getting into the market, while homeowners whose houses are now worth less than what they owe on their mortgage won't be able to refinance. Still, the rates present a welcome incentive for qualified borrowers to step up to the plate. "Lower mortgage rates mean more people with those credentials will be able to qualify," says Patrick Newport, a U.S. economist at IHS Global Insight. While that might not make a dramatic impact on the market, it could be enough to keep home sales from declining as much as they otherwise would, Newport says.

2. Lower prices: Home prices at the national level have already fallen 21 percent from their 2006 peaks. And in certain bubble markets, the crash has been even steeper-prices have fallen more than 30 percent in Phoenix and Las Vegas over the past year alone. Although that's a big blow to homeowners-the housing bust is expected to wipe out more than $2 trillion in home values in 2008-lower prices do help stimulate buyer demand, which is badly needed to mop up the excess housing inventory. And while home prices are expected to drop further in 2009, values in certain markets are already at levels low enough to tempt bargain hunters. "Falling home prices aren't part of the problem, they are part of the solution," says Mike Larson, a real estate analyst at Weiss Research.

3. Fewer housing starts: In the face of dwindling demand, home builders have been forced to sharply pull back on new construction. The government reported Tuesday that November housing starts dropped to their lowest level since 1959, when officials started keeping the statistics. While that's bad news for the economy-because it means fewer jobs for builders and others-it's an important step in bringing housing supply back in line with demand. The cutback will limit the supply of new homes coming into the market, which helps to reduce the glut of unsold homes that is putting such downward pressure on housing prices. "In order to get rid of the inventory, builders have to cut back even further and prices have to drop," Newport says. "It's very painful, but there is no way to get around the fact that that's what you need to do to equilibrate the market."

4. Obama stimulus: In an attempt to hoist the economy out of its rut, President-elect Barack Obama has announced plans for a massive federal spending program. The initiative is expected to put between $500 billion and $1 trillion into infrastructure repair and other projects in an effort to keep Americans working. Should this program succeed in preventing unemployment from skyrocketing and keeping the economic contraction from hitting the dourest projections, certain housing markets may firm up quicker than expected, says Susan Wachter, a professor of real estate at the University of Pennsylvania's Wharton School of Business. In the best-case scenario, "the housing market declines become contained to those markets where house price declines are significant," Wachter says.

5. Credit programs: It will be tough for the housing market to come back to life until the credit markets-which have been log-jammed by fear for more than a year-begin to unlock. Like the fight to limit unemployment, reviving the credit markets is a daunting challenge. But remember, the federal government has already taken a number of steps designed to do just that. The Federal Reserve has slashed its benchmark interest rate to between 0 and 0.25 percent and committed nearly $2 trillion to new lending programs, bailouts, and additional measures designed to bolster the financial markets. Meanwhile, Congress passed a $700 billion bailout and the Treasury has already injected a chunk of that money into banks of all sorts. While these efforts haven't been enough to restore the credit markets to health, they have produced results. Interbank lending, for example, has eased. And should this modest victory lead to a broader recovery in the credit markets, the economy-and the housing demand that comes with growth-could turn around quicker than expected. "Right now, panic is driving the credit markets," says Moody of Mission Residential. "If, for whatever reason, confidence were to resume and people's appetite for risk was starting to increase, then you could start all of a sudden seeing credit flowing much more freely, which obviously supports spending in both business and households."