— Janet and Brian Dunlap moved to Fort Gibson just in time to save thousands on their taxes.

They were among the many Muskogee area home owners who qualified for a $6,500 tax credit for buying another house before April 30. First-time home buyers qualified for an $8,000 tax credit if they bought a house before April 30. So many people sought to take advantage of the tax break that home sales so far this year rose from the previous year. And, homes under contract hovered in double digits, according to figures kept for the Muskogee Association Realtors.

“We wanted to push to get the tax break we wanted,” said Janet Dunlap, whose family moved into the house on Memorial Day weekend.

She said the $6,500 tax break “definitely” motivated them to buy a house when they did.

Now that the tax credits are over, fewer people are in the market for a house and home sales are down again, area real estate brokers say. Even with the tax break, home sales so far this year are below those from the first two quarters of 2005 through 2008.

“Most people who knew they were going to buy a house did it in the spring, before the tax break ended,” said Shawn Raper, broker/owner of C.S. Raper & Son ERA Real Estate. “I expect housing sales to get to more normal levels later in the year.”

Raper keeps statistics on Muskogee’s and Fort Gibson’s housing market for the Muskogee Association of Realtors. His figures showed that since the week of May 10, the number of homes under contract has remained in single digits.

The figures also indicate that, even with the spring spike in home sales, houses are moving more slowly in 2010 than they did in 2005 to 2008. Figures show that 145 houses sold in the second quarter of 2010, compared to 130 in the second quarter of 2009; 170 in the second quarter of 2008; and 163 in the second quarter of 2007.

Through the Worker, Homeownership and Business Assistance Act of 2009, many existing home buyers, such as Dunlap, qualified for a $6,500 tax credit if they bought a home between Nov. 6, 2009 and April 30, 2010. The home must have been under contract by April 30. Deadline to close the home sale recently moved from June 30 to Sept. 30. First-time home buyers already were taking advantage of an $8,000 tax credit, which also expired April 30 and has the same deadline for closing.

Dunlap, who teaches at the Early Childhood Center, said the family had wanted a house close to the lake.

“But we could not find one to fit our needs,” she said. “My husband went to school in Fort Gibson, and we like small towns.”

She said her house was on the market for four months, but it took about a month to find a new house.

“We had pretty good credit, so credit definitely was not a problem,” she said.

Jon Fagman, who recently was transferred to Muskogee from San Francisco, said he took advantage of the tax break.

“It definitely helped me get something. Every little bit helps,” he said.

Sherry Jones, president of the Muskogee Association of Realtors, said she did not see a big decrease after the tax break ended in May.

She described the housing market as good, slow and steady.

Nick Fuller, owner/broker at Fuller Realty Prudential said he believed the tax credits helped home sales this year.

“We were up 10 or 11 percent from 2009 sales,” he said.

Yet, Fuller said the figures might also be skewed because figures take in HUD properties that have been foreclosed on.

“We’re seeing a lot more foreclosures now,” he said. “There was a period when we didn’t see very many. The foreclosures started rising last fall.”

He attributed the rise in foreclosures to the souring area economy. He said the foreclosure rate is not as bad as what happened two years ago in Phoenix or Florida.

“We’re a little more insulated,” he said.

John Hill, who is moving to Muskogee from Michigan, said the housing market looks better in Muskogee than in his home state. He said it remains tough in that part of the country.

“Money is as cheap as it’s ever been to buy a house, but you still see people who are more cautious and not as quick to move,” Fuller said. For the last four or five years. Money was so good, values have stayed up, and that kept existing home values up. People saw a gradual drop in prices.”

Meanwhile, home values have gone up over the past few years. Association of Realtors figures show the mean price of a home in Muskogee or Fort Gibson is up nearly 8 percent from this period in 2009.

“Home values are stable,” Raper said. “We’re not seeing much growth, not seeing much decline.”

He  said the current price of a house on Muskogee/Fort Gibson market is $100,068, compared to $91,750 in 2006.

Even though $100,068 is the average price on the Muskogee housing market, that doesn’t necessarily mean such homes are readily available. Buyers face a lot of competition for homes of this price.

Raper said homes ranging from $80,000 to $120,000 are most in demand. He said houses in this range have been in demand in the Muskogee/Fort Gibson market for several years.

Fuller said his agency works with all sorts of buyers, from those wanting investment property at $15,000 and $20,000 to people wanting homes at $300,000.

“We probably see more people wanting $150,000, young people upgrading from their $100,000 or $70,000 house,” he said. “The FHA bond issue program will help people with closing costs.”

Fuller said the economy would have to stabilize before home sales could be as good as they were several years ago.

“I wish I had a crystal ball,” he said. “There is not a quick fix. It’s going to take a while for people to feel better. But there is still activity out there if you have good credit.”



Reach Cathy Spaulding at 684-2928 or cspaulding@muskogeephoenix.com.