First Time Home Buyers:

Carpe Diem

 "You should buy a home." That's what your friends and family have been telling you, anyway, right? But with the recent changes in market conditions is now really a good time for first-time home buyers? Or, is it better to wait until the market has hit rock bottom before you jump in? The answer may be in the famous words of Latin poet Horace: "Carpe Diem."

The Stars Are Aligned for Buyers

Not in more than 15 years have the stars been better aligned for first-time home buyers.

Affordability is Increasing

The National Association of Realtors reported that the median price of an existing home fell 3.5% in October from that month last year, the largest decline in one year since the group began collecting this data in the late 1960s. Yet, the job market remains strong and incomes continue to increase creating increased affordability for consumers.

Interest Rates Remain Low

According to Princeton Capital Mortgage, the average rate on a 30-year fixed rate mortgage now stands at 6.25%, the lowest level since 2001.

Gone Are the Go-Go Days

When home prices were soaring, many first-time buyers jumped to buy houses, believing that they would be shut out of the market if they didn't act quickly. Now buyers have time to search all of the homes on the market within their price range and have the ability to choose the home that best meets their needs. But while the stars are aligned, history shows that the market won't stay like this forever.

You May Not Want to Make the Mistake of Waiting

Sitting on the sidelines might cost you plenty in terms of higher housing prices and interest rates. The 37 year average rate of appreciation for homes in California is

7.75%. Furthermore, any increase of interest rates, even  by just a half a percent,  could decrease your purchasing power and alienate you from today's unique market.

We live in one of the most desirable areas in the world and regardless of the recent slowing in the market, there is still plenty of pent-up demand.

What Waiting Could Cost You

Let's examine a home buyer in today's real estate market. If, in 2000, a person had made the conscious decision to continue to save money, while paying high rental costs, rather than purchasing a new home for $250,000 - today, that person would have missed out on the 40-50 percent average appreciation that the market has experienced over the last seven years. And that appreciation would not have just been on the 10% down, but rather on the total cost of his or her home. Had the home buyer purchased in 2000, he or she today would have enjoyed a netted $80,000 in equity, in addition to the tax savings on home owner interest.  The bottom line is that this may be a very good market for first-time home buyers. And while you may not be able to afford the newly remodeled, four bedroom three bath castle in the sky, the purchase of your first home might serve as a three to five year stepping stone towards that ultimate dream home and as the inception of your financial portfolio. If you'd like to learn more about the current state-of-the market, including details on determining your purchasing power in today's market, please contact me today.

Please contact me when you are ready to prepare to buy:

Victoria Wells/ Broker Associate  415-464-3380 e-mail: vawells@comcast.net

Http://www.marinbesthomes.com