Multiple Listing Service (MLS) organizations may soon change, dramatically. These local and regional groups, where information about currently available properties are cooperatively pooled into one source, have productively served consumers and real estate professionals since the late 1800s.

Most MLS groups are owned and operated by local Boards of Realtors, affiliated with the National Association of Realtors; some are independently owned and operated. A majority of MLS jurisdictions are local, but some are regional and even statewide. Let's briefly review the history of MLS systems.

When I first became a practitioner in real estate brokerage in the 1950s, we used individual MLS cards for each listed property — each card-carrying data and a photo. The cards were contained in a box, about the size of a shoebox, and updated each week. Later, the system evolved into "listing sheets," usually in ringed binders. This subsequently took the form of the bound MLS book of property information.

In the 1960s, some MLS systems implemented a "keysort card" arrangement — a rather crude pre-computer system to more quickly access specific types of property statistics from a database of information. The concept, first invented in 1896, used index-type cards with holes and notches along the edges. A metal sorting rod could be inserted in holes of stacked cards to separate the needed property descriptions.

In the 1970s, a major revolution was introduced with the use of computers for generating the MLS books; it provided online information and photos. This capability rapidly developed, becoming more sophisticated and useful as it still is today.

An increasing number of prospective home buyers access computer-generated MLS property information as their first effort in finding a needed home, along with information about their destination community. When they find one or several homes that seem to meet their requirements, they often call in a Realtor to pursue their quest and handle negotiations and details of the purchase transaction.

The MLS of the future will be vastly expanded in scope and services to the benefit of consumers and professionals, according to industry leaders. MLS organizations will be bigger and fewer with more statewide systems, it was predicted in an NAR report. The fact that licenses, regulations and forms are state-specific makes a statewide MLS more efficient and easier to accomplish.

Area MLS systems are going to participate in a nationwide database that includes information on all parcels of real property, not just those currently listed for sale. It will include continually updated data on local communities, such as school ratings and plans for commercial development. It will provide profiles of real estate professionals, along with other information important to any serious buyer prospect, and incorporate user-generated content.

"The future MLS will leverage property information to bring consumers and real estate professionals together on the Web to participate in an ongoing conversation with real estate at its center," said Realtor Saul Klein. "It should have a public side for consumers to interact with real estate professionals, and a private side (business network) for use by professionals."

Q: What's the scoop about the new tax credit for first-time home buyers?

A: The recently announced tax credit for first-time home buyers — part of the Housing and Economic Recovery Act — is definitely a good deal for qualified buyers. However, the credit is not a cash gift from the government.

The credit is 10 percent of the home's purchase price, up to $7,500. The maximum credit is $3,750 for married couples filing separately, or $7,500 for unmarried couples who jointly purchased the home. Rather than a simple tax credit, the amount must be paid back to the government in equal installments over a period of 15 years. It could be more accurately described as an interest-free loan administered through the tax code — still a very good deal for many buyers. The payback amount for a maximum "credit" would be $500 per year or about $42 per month.

Any home purchased by a first-time buyer on or after April 9th of this year and before July 1, 2009 qualifies for the credit offer. You'll be required to start repaying the amount in the second tax year after the home purchase. The definition of a first-time buyer is one who has not owned a primary residence for at least the past three years.

The credit will allow many buyers to purchase a home now, instead of waiting while they save more money and improve their chances of qualifying for a mortgage; it will also aid in reducing the inventory of unsold homes.

Q: Are home prices really rising?

A: Pending home sales are on the rise. They increased by 5.3 percent in June, compared to the preceding month, according to a report from the National Association of Realtors.

NAR now predicts further improvement in existing home sales activity in upcoming months.

"The rise in pending home sales was broad-based with all four regions showing gains," said Lawrence Yun, NAR's chief economist. "This is welcome news because a rise in contract activity is necessary for an overall housing recovery. With a tax credit now available to first-time home buyers, increases in home sales could be sustained with the momentum carrying into 2009."

Yun also noted that home prices did not fall as much as anticipated in the second quarter of this year.

"Buyers entering the hardest-hit markets, in some cases with multiple-bid offers, may have put a floor on prices. Rising commodity prices and higher construction costs have resulted in a very unusual market today with existing-home prices being less than replacement building costs in some areas. Home prices are projected to increase 3 percent to 6 percent in 2009."

To find out more about Jim Woodard and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.

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