Why NOW is the best time to buy a home?

Everywhere you turn today, you hear news about the housing market. Homes are taking longer to sell, new home builders are packing it in and leaving town, foreclosures are up in most markets nationwide, and lending guidelines are changing daily.

So, what does this mean for you? Well, if you’re in the market to buy a home, or even think you may be, now is THE BEST time to buy.

Well, lets start with the first best reason to buy:

 LOW INTEREST RATES
Yes, interest rates are still very low. The Federal Reserve, once again, cut rates. So it will cost you less to borrow money, which means you keep more of what you make or can get more a larger. Interest rates, however, change constantly. The indexes that banks and lenders use to calculate their rates, are always changing and will continue to change. When I get my crystal ball out of the repair shop, I’ll be able to tell you what is to happen to our rates in the next 6 to 12 months. Interest rates could stay the same or even decrease once again. However, it is widely believed that rates will increase. And for those buyers that were priced out of the market just 3 years ago, low interest rates mean a real opportunity at home ownership.

 LOTS OF INVENTORY
Take a look around. Have you noticed how many FOR SALE signs you see in people’s yards? There is such an abundance of homes for sale that many neighborhoods appear to have sign after sign, on block after block. So, how is this of benefit to the buyer? Simple, the buyer gets to see more homes that fit his/her criteria. They don’t have to feel as if it’s one or the other and they get more time to find the home that’s right for them instead of settling because they may lose their chance at home ownership.

 AFFORDABILTY
The more houses on the market, the more competition for those wishing to sell. Particularly in neighborhoods where there are track homes (2 to 3 basic designs with a few higher priced options) many of the homes have some of the same features. So how will these sellers compete? Well, on price of course. So many sellers will reduce their asking price to get more buyers looking, or with a good Real Estate Broker, may be negotiated down to the price the buyer is willing to pay. This means big discounts for buyers. Some buyers are walking away from the closing table with tens of thousands in equity in their new home.

 SELLER CONCESSIONS, DOWN PAYMENT ASSISTANCE, ETC..
Sellers have other ways of attracting buyers as well. Many will advertise a seller carry situation which is when the seller holds the note or offers to carry a second loan for the buyer* (THIS SHOULD ONLY BE CONSIDERED WHEN ADVISED BY A LENDING AND REAL ESTATE PROFESSIONAL TO PREVENT FRAUD AND FINANCIAL REPERCUSSIONS). Some sellers are paying for a year of HOA dues, assisting with down payments (WHEN ALLOWED BY THE LENDER), paying the buyer’s closing cost (WHEN ALLOWED BY THE LENDER), or paying for new appliances, upgrades, and/or home warranty. In this tough market, sellers are willing to give as much help to the buyer as legally possible. This is an absolutely advantageous situation for buyers and probably will not happen again for many, many, years, once the market rebounds.

There are also special programs and grants available through the State and Local Governments which could enable a first-time homebuyer to buy with little to no money down. There also is the matter of the up to $ 8,000 in Federal Tax Credit (for those who qualify). This tax credit is expiring less than 60 days (go to: www.ladylister.com to see the counter). While there is much talk about extending this program, there have not been any concrete decided.

All of these reasons make NOW, the best time to look into home ownership or real estate investment. For more information or to discuss your particular situation, contact me.

Until next time……

Cynthia