Well today I'm going to write about something that has been getting a lot of attention in the blogs, forums and the dinner tables.  There has been a lot of recent debate recently about National Association of Realtors campaign "It's A Great Time To Buy Real Estate".  Well in my personal opinion, I believe they are right.  I believe right now is an excellent time for a first time homebuyer to buy a home.  Arrghh, What was that you might be asking.  Well I didn't write that but honestly I really believe in that.  Based on my local data and statistics of Long Island, NY home prices, we have seen a decrease in prices of homes and we have seen houses with more days on market; which has resulted in overpriced listings coming back to reality with what the buyers or real estate market is requesting.  Prices are based on factors such as similar active competing listings and recent sales pending and home sales.  Right now there has also been an excellent inventory of houses for your average first time homebuyer to choose from. 

For the last couple of years it would have been really hard to purchase a home at these kind of prices and terms.  If you have been studying the local real estate market carefully as I have been, you will see that there has been a lot of houses that you can find that are below market value.  There is an inventory of bank owned properties, short sale properties, pre-foreclosures properties, motivated sellers, and sellers just wanting to sell at a reasonable price.  In addition to that; interest rates are low, real estate has usually been a good long term investment, an FHA backed loan allows you to buy a home with a 3% down payment at a low fixed interest rate. 

Well as a buyers representative, I recommend you also hire someone that will also work in your best interest and finding you the best deals on the market, preferably me, and that will also negotiate in your best interest.   Real Estate is a long term investment and I don't recommend buying on hype or media frenzy.  If you compare and do a realistic analysis of the benefits of renting to buying and feel that you can afford a house for the long term then I think you shouldn't miss out on this opportunity to buy a home.  If you choose to believe the hype on the blogs, forums and the dinner tables you might miss out on an excellent opportunity to even see what homes this market has on inventory.  I wish all the best of luck and respect everyone's opinion, comments, and feedback.  As a Realtor, I don't have a crystal ball that can predict the future or the house prices of our region but I can only recommend that you stick to a smart financial plan. 

Hello Active Rain,

Just wanted to share something I found online tonight and was wondering what everyone thought about it.  Hope you enjoy the read.

http://finance.google.com/group/google.finance.21344/browse_thread/thread/ac8d73cf72eacaf

This is what was posted: 

The almost unbelievable irresponsibility with debt displayed by
homeowners like today's is so amazing, so far beyond any form of
excusable behavior, that you have to wonder if it is right to forgive
it. If someone borrows hundreds of thousands of dollars against their
home and ends up with a short sale requiring the forgiveness of this
debt, how do you feel about it? Remember America's Debtor Prisons or
Are Short Sales Moral? These questions do not go away. Does a really
extreme case change your opinion about the subject? Let's see...

Asking Price: $1,195,000
Income Requirement: $298,750
Downpayment Needed: $239,000
Purchase Price: $397,000
Purchase Date: 7/20/2001
Address: 9 Soaring Hawk, Irvine, CA 92614

Beds: 4,  Baths: 2.5,  Sq. Ft.: 2,960
Type: Single Family Residence
MLS#:  S517428

So lets walk through the mortgage history of this property and see
just how bad HELOC abuse can get...
7-20-2001 The house was purchased for $397,000 with a first mortgage
of $317,600 and a downpayment of $79,400.
11-07-2001 HELOC for $48,000 taking out over half of downpayment.
8-26-2002 Refinance for $360,000.
11-26-2002 HELOC for $29,000
11-26-2002 HELOC for $71,000
6-18-2003 HELOC for $56,000
6-18-2003 HELOC for $100,000
6-1-2004 Refinance for 517,500 -probably paid off HELOCs at this
point.
10-22-1004 HELOC for 89,900.
4-21-2005 Refinance first mortgage of $624,000
4-21-2005 Refinance second mortgage of $156,000. Total debt of
$780,000 at this point.
9-12-2006 Refinance first mortgage of $948,750.
9-12-2006 Refinance second mortgage of $189,750. Total debt of
$1,138,500. No HELOCs

So there you have it. This homeowner went to the housing ATM 8 times
over a 5 year period and pulled out $820,900. Now they have a property
priced at a WTF asking price hoping they can find some knife catcher
to come pay off their bills. Even if you wanted to buy this house,
would you do it knowing that you were about to pay for $820,900 worth
of consumer spending (They may have spent $200,000 on the renovation,
but please spare me the BS about investment or illness or any of that
crap. Look at the pattern of withdrawals. They spent it, and you know
it.) I suppose the lender can always hope these people stashed some of
this money away somewhere to cover the shortfall at the closing table.
Doesn't seem very likely, does it?