Tagious and Roderick Gaines were tired of renting.
The North Augusta couple and their three sons had been living in an apartment complex for five years.
"It was getting a little bit too crowded," Mrs. Gaines said. "Got tired of renting. Got tired of paying for something that will never be ours."
Mrs. Gaines said her husband had heard about an $8,000 federal tax credit for new homebuyers, and they started hunting in the spring.
"We both knew that we wanted a house, but we didn't know whether we could get a house," she said.
Then the couple saw one they liked and called the agent on the sign, Nick Greene of Meybohm Realtors.
Six weeks later, they were moving into their three-bedroom house on Mill Branch Way.
"They were scared to go to the bank," Mr. Greene said. "They came over to my office crying. They were hugging me. I was excited for them. I had never seen such an outpouring of excitement."
Because things happened so quickly, Mr. Gaines didn't have the money to get a lawn mower. Mr. Greene gave him an extra lawn mower from his house, a trimmer and some outdoor furniture.
First-time homebuyers have kept Aiken-Augusta area real estate agents busy this spring and summer.
They make up about 90 percent of the business at VanderMorgan Realty, said broker Justin Bolin.
"The tax credit has had a good bit of contribution to it, but there are other programs available that aren't really being promoted by a lot of companies that have added to the success with first-time homebuyers," he said.
Mr. Bolin said he is seeing a lot of buyers who are trying to take advantage of a HUD program that lets buyers get an FHA mortgage with only a $100 down payment.
The National Association of Realtors on Friday reported that home resales last month posted the largest monthly increase in a decade. Sales nationally rose 7.2 percent to a seasonally adjusted annual rate of 5.24 million in July, from a pace of 4.89 million in June.
It was the fourth consecutive monthly increase and the highest level of sales since August 2007.
The Greater Augusta Association of Realtors also reported more homes sold in July than June. But, according to data, agents also had a better spring and early summer sales season than last year.
Agents sold 1,809 homes between April and July, higher than the 1,728 homes sold during the same period in 2008. But real estate agents were much busier in the pre-recession years: 2,229 homes in 2007 and 2,475 in 2006.
"There's been good movement in the under-$200,000 market," Mr. Greene said.
Most of the houses sold this year -- including the Gaines' home -- are between $120,000 and $200,000, according to the Realtors association.
Mrs. Gaines said they will seek their federal tax credit in January, when they file their income taxes for 2009.
The IRS reports that at least 1.1 million buyers have applied for the tax credit through amended returns. The $8,000 tax credit expires Nov. 30, and some agents expect a last-minute rush this fall.
Martinez broker Jim Courson said Augusta is better off than some places, but the local market won't recover for four years.
"People are worried to death about their jobs, scared to buy and commit not knowing what might happen," Mr. Courson said. "You could put the interest rate to 0, but it doesn't matter if people don't have jobs or they are scared to death of their job."
Mr. Courson said it is a good time to be a buyer. "In general, people are taking $50,000 less, whatever it takes," he said.
Mr. Bolin said the focus in real estate now is on foreclosed properties.
"Those are where the good deals are; that is where the buyers are," he said.
Reach Tim Rausch at (706) 823-3352 or timothy.rausch@augustachronicle.com.
SOUTHERN HOME SALES SPIKE
MIAMI --- Home resales spiked 5.6 percent in the South in July, the highest annual increase in nearly four years and evidence the region's housing market is improving, the National Association of Realtors said Friday.
The last time the South saw such a marked increase in resales was September 2005. Affordable prices made home buying attractive, as did low mortgage rates. And first-time buyers rushed to grab a tax credit that expires in November.
And, while foreclosures are expected to be an obstacle into next year, they are making up a smaller percentage of sales.
In the South, the median sales price of resold homes fell 7 percent to $164,500. But prices have been steadily climbing since January, when the median was $143,300.
Atlanta sales fell 4 percent compared with last July -- a slower rate of decline than in previous months.
-- Associated Press
$100 DOWN?
HUD is offering several new sales incentives on HUD homes that will make these homes more affordable. The incentives vary but could include the following:
- $100 down payments on HUD Homes financed with FHA-insured financing
- Sales allowances that can be used to pay closing costs, make repairs or pay down the mortgage amount
TAX CREDITS
A first-time homebuyer who purchases a home before Nov. 30 can qualify for a tax credit of up to $8,000. The amount is based on the price of the house. The money can be obtained by filing an amended 2008 tax return or by waiting until tax season in 2010.
Georgia offers a tax credit of the lesser of $1,800 or 1.2 percent of the purchase price.
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