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Between the extension of the tax credit for first-time homebuyers and low interest rates, now is the best time in 10 years to buy a house, according to Cary Clark, of RE/MAX, and president of the Fort Dodge Board of Realtors.

"There's never been a time with an incentive like this with low interest rates to boot," Clark said. "I'm hopeful that people will take advantage of the program that's out there. There are so many benefits to this program, that now is the time for anybody that can buy to do so."

Chris Parker, of Coldwell Banker, board member for the Fort Dodge Board of Realtors, said Realtors in the area have seen a lot of first-time home buyers. Specific data as to the number of buyers was not immediately available.

As part of a plan to stimulate the U.S. housing market, Congress passed new legislation that extends the first-time homebuyer tax credit of up to $8,000 for first-time home buyers until April 30, 2010. The legislation also provides for current home owners who purchase a new or existing home before April 30, 2010, to be eligible for up to $6,500 credit.

Sales in the Fort Dodge housing market are about 20 percent lower in 2009 than they were this time last year, Parker said. But compared with other places, the housing market here isn't nearly as bad, he said.

"We're on the upswing now," Parker said. "It'll be a slow recovery, but we will recover."

Existing home sales across the Midwest increased 8.4 percent in November and are 53.5 percent above where they were a year ago, according to the National Association of Realtors.

Clark attributes much of the decrease in the local housing market to the uncertainty of the economic times. With the announcement that Electrolux in Webster City will close and the construction halt at ethanol plant Tate and Lyle, she said that has also had an impact on the Fort Dodge real estate market.

But in a smaller town, real estate doesn't have the high peaks and low drops of property values as some places, she said.

"We don't do have that major roller coaster," Clark said. "It's more of a ripple and prices are going to remain fairly stable around Fort Dodge."

Both Clark and Parker remain optimistic about the housing market outlook for 2010.

"As long as our local economy doesn't lose anything in terms as major employment, we should see a rise in real estate sales for next year," Clark said.

Nationwide, the NAR is expecting to see a continued rush of first-time home buyers wanting to take advantage of the tax credit.

"We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010," said NAR chief economist Lawrence Yun.

Contact Angela Burch at (515) 573-2141 or aburch@messengernews.net