The National Association of Realtors Profile of Home Buyers and Sellers provides surprising statistics on the market share of first time buyers in the Midwest.  Data from this research shows 41% of buyers in the Midwest are first time buyers.  Reasonable prices and low cost of living in the Indianapolis area help sustain this large segment of home buyers.  Now there is more for these home buyers to get excited about.  Approved by the Senate and House and ready for final Presidential approval, this new Stimulus Bill will spur even more activity to those buying a home for the first time. 

Due to the average price of homes in central Indiana, the offered $8,000 tax credit to first time home buyers is an incredible incentive to buy a home this year.  If there was ever a time to get off the fence to buy a property as opposed to renting, it may be now.  For Hoosiers, this is a method that will increase home sales.  Basically, the government will provide a tax credit to the buyer on their 2009 personal tax return for an amount that is substantial enough that it may easily equal a down-payment amount on some purchases.  There is no requirement for that tax credit to be repaid.  A real estate engine with more buyers may help reduce inventory from less than $100K to $250K where these buyers commonly purchase.  As a side benefit, some will sell to first home buyers and then move locally in the next higher price point, producing yet another transaction in the market.  Studies have shown that there is a major ripple effect to the local economy when a home is sold. 

The short list of people who provide money back into the economy and are impacted by a home sale include: Construction workers, handymen, decorators, plumbers, appraisers, title company employees, REALTORS, appraisers, surveyors, retail store employees, and a multitude of manufacturers.  Home buying activity will improve in this Indiana real estate market due to the stimulus plan.  Good news for both buyers and sellers.

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