Spring is upon us in New England, and after an unusually long and cruel winter, hope springs eternal in the local housing market. You know what the last six months has brought – it hasn’t been pretty. Collapsing financial institutions, surging unemployment, a decimated stock market and plummeting home sales were among the lowlights.

But the temperature isn’t the only thing that’s inching upward this April. The stock market has shown signs of recovery. Consumer confidence is building. And lo and behold, people are buying homes.

You’ve no doubt heard repeatedly about what a great time it is to buy. The available inventory, combined with some major government incentives and phenomenal interest rates have created historic opportunities.

Not surprisingly, the charge is being led by first-time homebuyers. We’ve recently completed a First Time Homebuyer Outlook report which turned up some interesting and encouraging findings.

Some good news for us in New England – many of our major hubs are surpassing the national increase. Transactions in Hartford, CT are up 18.37%; Manchester, NH transactions are up 17.47%, Augusta, ME are up 6.21%, and Providence, RI, one of New England’s hardest hit states, is up 7.30% versus the prior month.

At RE/MAX of New England, we understand that our role now more than ever is educating buyers and sellers about this vastly changed market. In preparing the report, we conducted focus groups that revealed that first time buyers know it’s an excellent time to purchase due to the large inventory and low prices and interest rates. However, there was a general lack of knowledge about the home buying process and the tax incentives available to them.

The $8,000 tax credit is widely misunderstood and buyers generally don’t understand that it’s a tax incentive – not a loan as it was previously in 2008. It’s up to real estate professionals to help hammer this point home. Let’s face it, buying a home for the first time can be an overwhelming process. The quantity of information that one needs to absorb – particularly in times where people have less free time than ever to absorb it – is daunting. The more knowledge we impart, particularly about new programs targeted specifically towards first-time home buyers, the more homes will move.

The stimulus plan has given some real, tangible benefits to a battered housing market, and has given a much-needed jolt of confidence. Homes that are properly priced are entertaining multiple offers. The weather is getting warmer, the sun remains with us a little longer each day. Better days appear to have arrived in New England. If you’re interested in our First Time Homebuyers’ Report, click the link here and check it out.

- Jay Hummer