For the second month in a row, home buyers across many places in the country were able to negotiate bigger discounts off the listing price of homes than they had in the prior month, according to new data from zillow.com.

Buyers in the United States paid a final sale price of 2.8% or $5,823 less than the last listing price during January, up from a median discount of 2.7% in December and 2.6% in December.

The biggest discounts continued to be found in Florida, although buyers in several New York City-area metros also found relatively large discounts during January.

However, sellers continued to do well in severalmarket, with most buyers in places like Southern and Northern California, paying more than the last listing price of homes sold in January.

Fewer for-sale homes experienced price reductions in January 2010 than in December, with nearly one in five of homes for sale on Zillow experiencing at least one price cut as of the end of January.

Nationwide housing affordability, bolstered by favorable interest rate and low house prices, closed out the year near its highest level since the series was compled 18 years ago, acccording to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI).

The HOI shoed that 70,8% of all new and existing homes sold in the final quarter of 2009 were affordable to families earning the national median income of $64,000, slightly higher than the previous quarter and near the record-high 72.5% set during the first quarter of 2009.  Affordability during the final quarter of the year was up from 62.4% during the fourth quarter of 2008.

“Favorable mortgage rates and sliding home prices that have now started to stabilize nationally have both contributed to a record year for housing affordability in 2009, said NAHB Chairman Bog Jones, a home builder from Bloomfield Hills, MI. “With interest rates still hovering a low levels and the economy beginning to rebound, the federal housing tax credit will encourage even more first-time and repeat home buyers to enter the market and help further stabilize housing and the economy by creating new jobs, stimulating home sales, and reducing foreclosures.”

New-home buyers responded to the tough times in 2009 by opting for smaller houses, driving down the average size of a house built in the U.S. for the first time in 27 years.

Data recently released by the National Association of Home Builders (NAHB) found the average size of a new home that was completed in 2009 fell to 2,480 squre feet from 2,520 squeare feet in 2008. The last time the average completed-home size fell by a statistically significant amount was in 1982.

Wile the small-house movement in the United States has been gaining steam for a number of years, the recession has accelerated it and home builders have responded.

Although actual square footage of homes did not fall until 2009,  the percent of homes with four or more bedrooms in them has been falling since 2007, NAHB data show. And in 2009, the number of homes with three of more bathrooms fell for the first time since 1992.

Two other trends in home construction are contributing to the declining square footage: the prominence of first-time buyers in the housing market and the increasing number of households with members 55 and older who are buying homes.

Are you a buyer ready to make a move? Are you a first-time buyer or a buyer over 55 in Cardiff, Encinitas, or Carlsbad? Contact Marilyn Dashe at Sea Coast Exclusive Properties for advice.

Existing homeowners need to be aware that a recent expansion of the Federal buyer tax credit has created a possibility for existing homeowners. Current homeowners who have lived in their homes for 5 consecutive years out of the last 8 years are now eligible to receive a $6500 tax credit.

To qualify for the credit, these repeat buyers must sign a purchase contract by April 30th and close on the property by June 30, 2010.  And there are income limits to be eligible for this tax credit: $125,000 for single buyers and $225,000 for couples. Also, the sale price of the home being purchased cannot be more than $800,000.

There is no requirement that homeowners must have sold their existing home to be eligible for the tax credit to buy a new home. However, if the homeowner wants to sell their current home before purchasinig a new one, they should think about putting their current home on the market right away. It typically takes at least 90 days to sell a house.

James M.Weichert, President and founder of Weichert Realtors, one of the country’s largest independent real estate companies, says about this new government incentive: “The expanded tax credit offers a great financial opportunity for existing homeowners, particularly those looking to trade up….Not only can you receive a large sume of money from the government, you’ll also likely purchase your next home for less money and at a lower interest rate than you could have in years past.”

If you currently own a home in Cardiff, Encinitas, Carlsbad, or Vista, think about taking advantage of this new tax credit for existing homeowners. And if you have any questions, please contact Marilyn Dashe at marilyndashe@cox.net.