An article in USA TODAY by Matthew Frankel gives a good and simple answer. “First-time homebuyers can take out as much as $10,000 from their traditional IRA penalty-free, although it will still count as taxable income. And if your spouse also has a traditional IRA, they can take out $10,000 as well.

Furthermore, the homebuyer doesn’t necessarily have to be you. You can use the money to help your child, grandchild or parent buy a home as well. The IRS has a liberal definition of what a “first-time” homebuyer is. Basically, you must not have owned a principal residence within the last two years.” A Roth IRA can be used also, but the rules are slightly different.

Our local real estate market is still looking strong in the Northeast Florida Association of Realtors market stats for June. There were 3,868 new listings in June, an increase of 13.4% from last June and 8.1% year to date, which is very positive since the homes available for sale have been very low.

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The Northeast Florida Association of Realtors market stats for May show an increase in new listings which is very good news. There were 3,797 new listings in May which is up 9% over last May and we are up by 7% year to date.

Even with the increase in new listings, the inventory of homes for sale is down 9% from last May to 8,398 properties. There are 3.4 months of supply of inventory which is down 13% from last May. A balanced market is 5 to 6 months of inventory. The shortage of homes for sale is most acute in the price ranges under $300,000.

There is plenty of buyer demand. There were 2,996 contracts written in May which is an 11% increase over last May. Pending sales are up 6% year to date.

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The biggest issue we discuss every month is the homes available for sale in our local market and the nation. The largest shortage continues to be in the lower price homes. Millennials, boomers and investors are all competing for these homes creating a very competitive market.

According to the Northeast Florida Association of Realtors market stats for April 2018, the inventory of homes available for sale is down 9.4% from last year to 8,264 homes. The inventory of homes under $150,000 is down 40% from last April and the homes between $150,000 and $200,000 is down 19%.

There is 3.4 months supply of inventory available which is down 12.8% from last year. A balanced market is 5 to 6 months of inventory available.

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