Home owners with mortgages as large as $729,750 in any area, not just high-cost areas, could see their interest rate temporarily cut to as low as 2 percent under the Obama administration's $75 billion foreclosure prevention plan.

The administration unveiled details of its plan, called the Housing Affordability and Stability Plan, this week, and analysts say there are a few positive surprises.

The $729,750 mortgage limit that would apply to homes in all markets, not just in high-cost areas, is an unexpected and helpful move, says John Courson, CEO of the Mortgage bankers Association.

"It will allow us to help more borrowers," he says.

Other details flesh out the main aspects of the plan:

• Eligibility for refinancing incentives is limited to home owners who are underwater by no more than 5 percent.

• Financial incentives apply only to home owners whose mortgage is a conforming loan backed either by Fannie Mae or Freddie Mac.

• Lenders participate voluntarily and can receive financial incentives for lowering borrowers' mortgage burden to no more than 31 percent of their household income. Borrowers can get a financial incentive to participate as well.

• Borrowers who are current can participate, but they must show approaching hardship that could derail their ability to meet payments in the future.

Why it's a good time to buy.

There are undeniably issues with the real estate market in most cities in America. Clearly the economy is not strong, the price of gas and food is skyrocketing and the unemployment rate is slowly rising. Surprisingly it's not all bad news.

Housing sales have slowed, prices are dropping and the number of foreclosures is high. In real estate all of these factors mean opportunity, if you know what you're doing. Real Estate sales never stop completely. People change jobs and relocate, downsize their homes, and have changes in their personal lives that create the need to sell and buy homes. Like all economic phases this one too will adjust and eventually the 'buyer's market' will be gone. The current real estate "downturn" depending on where you live can be a great opportunity for first time home buyers, and real estate investors.

With rental rates increasing, it makes sense for some people to buy rather than pay rent that is equal to or more than a mortgage payment. Renters can take this opportunity to purchase their first home or take advantage of the rental increase and become a landlord.

Prices have adjusted in almost every market from the skyrocketing percentages of the last 5 years to prices more in line with the current economic situation. This adjustment allows buyers to purchase at lower prices. They may decide to hold as a rental property allowing the rising rental rates to pay their mortgage payment, or if possible, purchase low enough to put money into a remodel and still sell for a profit. Though expect less of a profit margin than in the recent past.

Here is a common scenario in this market. The landlord has held the monthly rent to a reasonable rate for a long time so a recent hike was to be expected but not more than $100/mo. The rent increase made the renter question whether or not they should continue to pay their landlord's mortgage or pay a similar amount for a mortgage and start building equity right away, while getting tax benefits at the end of the year. After working with their lender they realized it was in their best interest to get out of the rental and buy their own home. Paying themselves rather than their landlord.

Relocation due to job change is another common situation. Sellers don't have the time or the money to prepare their home correctly and after months on the market they must drop the price below market value. This creates a great opportunity to purchase the home as a primary residence slowly updating as the new owner is able, or for an investment buyer who has the funds to update the home and re-list for a reasonable price that still allows them to profit.

In foreclosure situations the savings and profit margins are even greater. This would also be a success story for an investor who is looking to purchase homes priced well below market. They may rent the home out until the market adjusts and appreciation rates start to grow again. Selling in an up market while their renter pays their mortgage in the meantime.

Although this is not the right time for everyone to buy it is something to seriously consider. If you are paying more rent than ever and have the minimal savings needed for a down payment, have the skills and ability to fix a home, or have always considered being a landlord, now is the time to weigh your options. Be smart, do your homework and talk to professionals. There is always risk but armed with the right information the risk is lower and it's more likely to pay off. This is the time good investments are made and in some cases small fortunes.

Are you a home buyer? This is a great time to buy, make sure you don't get left behind.

Are you waiting for the real estate market in the Seattle area to hit rock bottom? If so, that's a risky gamble to take. If we haven't already hit the bottom, how will you know when it's here? Will it be when you see the prices rising? Then it may just be too late.

You can read all of the market forecasting you want but do you want to gamble your money on the opinion of someone living on the east coast? Real estate is local and your area market and economy is all that matters to your real estate planning. If prices haven't hit their low mark yet, we're getting close.

There is currently more inventory to choose from than this time last year. Take advantage of the wide variety of choices in your price range and location. Don't wait until your possibilities are limited by lower inventory levels. If home owners are selling now, they may have to, which makes them more willing to negotiate, though within reason, considering our still healthy real estate market. Take advantage of their need to sell. If you wait for the bottom of the market you won't be alone. Pricing is all about supply and demand. If you hold out for that dream price you might find there are fewer homes to choose from and the prices are climbing due to the change in inventory. How much difference is that $10,000 you're holding out for really going to make on your monthly payment? If interest rates go up, demand rises and homes are still appreciating that $10k may be gone by the time you pull the trigger.

Here are a few good reasons to buy now & the only reasons to wait.

1. Buy now if the neighborhood you prefer is still appreciating, or already increasing in price.

2. If you are planning to hold your new home for at least five years you'll miss the full affect of the market downturn and build equity before selling.

3. Rents are rising in your area and you would rather pay yourself than a landlord.

4. You've found the perfect home, and it's not worth waiting.

1. Wait to buy if you need to improve your credit score, but then really work to clean it up, otherwise you're throwing money away.

2. If you haven't been in your home long enough to justify the cost of selling.

3. If you are expecting a layoff at your job you should wait.

4. Wait to buy if you can't afford a mortgage payment that is more than the rent you're paying even after all tax advantages are calculated.

In the end it's always good to make that purchase sooner than later. You begin building equity and adding to your retirement and investment portfolio, as soon as you purchase that home. You can't do that if you're renting. Homes are selling so don't let the media scare you away from making that move. You just have to be smart about preparing your home correctly and pricing it realistically. A good realtor can help with both of those processes and many more.

I don't know what the market is doing in the rest of the country but I know it's still moving along here in the Puget Sound Region of Washington State.

Despite the national media who are lumping all real estate markets into one, we know that real estate markets are local and can not be managed or tracked outside of their individual locales.

Currently the Kirkland, Lake Washington and Seattle areas are still plugging along. While the inventory dropped over the holidays with many sellers taking a break, a large number of those homes have re-listed yet not all at lower prices. All along the inventory has been up from the same time in 2006 with fewer buyers looking due to economic fears and waiting to hear how the lending business will turn out.

However, even with the higher inventory we are definitely seeing more traffic through our local listings. Agents are getting back to work and previewing the inventory readying themselves for when that buyer comes along. Buyers are starting to take a look at what is available and talking once again with loan officers about their options.

You can feel the momentum in the market and smart buyers are educating themselves with accurate information not just about the national economy but about the strength of their state and regional markets as well.

On the Eastside of Lake Washington we have had regular sales of homes, since the first of the year, in the first time homebuyer prices, which here runs between, 350-450k for a single family home. It's still a buyers' market due to over supply and under demand, but sellers aren't exactly slashing prices so we'll see how long before the market truly equalizes.

The home inventory is slowly equalizing with home buyers in the Seattle area. Especially on the Eastside of Lake Washington. There are a noticeable number of homes that are expiring and not re-listing, cancelling for the year and even those that are selling.

With sellers taking a break for the season that gives a boost to our listings that are holding strong through the end of the year and poised to market themselves to be sold.

Amongst those listings are our 3 Bayridge Development homes in Kenmore.  Bayridge Development presents 3 new NW style 2 story homes. These beautiful yet durable homes provide great user friendly floor plans with special attention to detail.

With 3 beds, 2.5 baths, a private master suite, bonus/4th bed and extra loft/sitting area upstairs there is plenty of space for everyone. The main floor flows from the elegant foyer & office to the open Great Room with large kitchen & oversized island, perfect for entertaining. 2 of the homes have 8,000 square foot lots and the 3rd home sits on over 9,000 sf. They start at $699,000 and are all within easy access to shopping, parks, and Northshore Schools.

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The Rick Moore Group was established by Rick Moore with the mission to provide comprehensive services coupled with high standards to build long term client relationships.

The Rick Moore Group includes professionals with unmatched enthusiasm for the industry and a dedication to result oriented services.  Their creative and ambitious approach to marketing, utilizing the latest marketing strategies, sets them apart.

The benefits of working with the Rick Moore Group are numerous. When you're a buyer making life-changing decisions, you can rely on their agents to offer honest and sound advice while guiding you through the process smoothly and successfully. Sellers can expect strong negotiating expertise and cutting edge marketing to guarantee your listing gets the exposure to get it SOLD!

We look forward to working with you in the future.