Feb 24 2009
Now is the Time to Buy a Home
By David Farrands
It is understandable that in today’s troubled economy you may be nervous about buying a home. The fact is that today’s troubled economy is the exact reason you should get into the market and become a homeowner. The very things that are making you nervous are what make this the perfect time.
Most sellers are desperate to make a deal. Now is the time that you can receive reduced prices, closing cost concessions our other arrangements that make purchasing a home even easier. If you wait for the market to improve you will lose this bargaining advantage.
If you are qualified to buy a home and have been thinking about diving into the market, here are the best reasons for taking the plunge now:
Homes Are More Affordable Than Ever
The National Association of Realtors publishes the Housing Affordability Index. They compare home prices, interest rates and average family income to determine the affordability of homes. The combination of falling prices and record low mortgage rates has made homes easier to buy. Homes have not been more affordable since 1970.
Large Supply of Homes to Choose From
In many parts of the country the average time for a seller to unload their home has increased. There have been foreclosures and defaults in nearly all communities. This has led to a great number of homes on the market. Potential homebuyers are sure to find a house that fits their needs.
Mortgage Rates Are Near Record Lows
It’s not just the price of the home that affects affordability. The interest you pay for the money to obtain the home is a major factor. Interest rates on 30 year mortgages have plummeted making your monthly mortgage payment substantially smaller than it would have been in the past.
Free Money From The Government
No, this is not an ad for Matthew Lesko’s new book. The Federal Government is giving a tax credit of 10% of the purchase price ($8,000 max) if you buy a home between January 1, 2009 and December 1, 2009. To qualify for the credit you must not have owned a home in the last 3 years.
It is very helpful to find a good Realtor when purchasing a home.