Ask The Expert

Why Is This an Outstanding Time to Buy a Home?

Have you ever heard the term “the planets are aligned” for the best possible outcome in a given situation? In terms of buying your first home, this may be it! Unlike recent years when home prices had hit the stratosphere, making home ownership completely out of reach for many buyers just starting out, today it’s safe to say that prices have dropped as much as 10% or more in local markets. I can’t recall the last time I could find so many single family listings under $200 thousand. And, not just “fixer-uppers”! The inventory, and therefore the variety of homes to choose from is the best it has been in decades.

Interest rates, while not at the very bottom of the historic range, are still pretty close to it! A buyer with a good credit score can easily find a 30 year fixed rate in a range between the high 5s to low 6s which is very favorable when combined with the lower prices. That is an unusual phenomenon. Most often, when real estate prices are relatively low, mortgage interest rates are relatively high. To have both on the lower side of the equation is a rare event and worth taking advantage of.

A first-time buyer purchasing a home between April of 2008 and June of 2009 may be entitled to a $7,500 tax credit just for buying that home! There are income limits and s few specifics involved in how it works, but again, it’s definitely worth looking into and just another reason to make “now” the time to seriously consider buying.

FHA, VA and various state housing agencies are still out there with plenty of financing available for qualified buyers. These are good, old-fashioned, fixed rate mortgages with minimum down payment requirements and affordable monthly payments. The days of “anyone-can-qualify” money are gone, for sure, but personally, I don’t think those programs worked well, anyway. It’s one thing to get someone into a home but it’s even more important that they can afford to stay in their home. I think most would agree.

So if you’ve been sitting on the sidelines and thinking that you can’t afford a home of your own or that a better day may be coming, think twice. This may be the most optimum time to move from a rental situation to home ownership that will come your way: price, choice, interest rates, financing options and a tax incentive don’t all happen together very often. Take advantage if you can.

Barbara Cunningham