5 Reasons It Is A Great Time To Buy A Home in The Phoenix Market!

With mortgage rates dropping and the phoenix real estate market clearly reaching a bottom in many areas, I am strongly encouraging home buyers to take the plunge and buy.  Of course this will be an individual decision for each home buyer, but here are 5 reasons why it may be the right time to buy now vs. waiting another 6-12 months.

1. Mortgage rates today are 5.274% for a 30 year fixed mortgage.  Mortgage rates have been over 6% for most of the past 2 years.  This will save your monthly and lower the total interest you pay over your loan term.
2. Homes are affordable again.  Affordability is as high as it has been since 2003.  The housing boom priced many people out of the housing market, but now there are clearly homes that are in line with the average family median income in Phoenix.
3. First time home buyers will receive a $7,500 tax credit if they purchase a home before July 1, 2009.  In this program, a first time home buyer is defined as someone who has not owned a home in the last 3 years.  You can view all of the guidelines for the tax credit by clicking here.
4. FHA down payment requirements will increase from 3% to 3.5% on January 1st, 2009 and FHA loan limits will decrease from $346,250 to $271,050 in Maricopa and Pinal counties.  With FHA being one of the lowest down payment options, someone who is interested in a home more than $271,050 may want to secure a hone this month.
5. Housing inventory is shrinking and days on market are falling, both indicators of a recovery.  While we do have a long road ahead due to the economy, these indicators do reflect that in many areas we are at or close to bottom.  Owning a home is very gratifying and trying to time an exact bottom of a market is challenging.  One must consider other factors that make home buying a good decision; tax savings, low mortgage rates, payments going towards equity vs. rent, future appreciation and the comfort of having your own home.

If you would like to sit down and talk about whether or not it is a good time for you to buy now, please give me a call at 480.201.4185.  I would to review the pros and cons for you and show you what is possible.

~Kim

Ready To Sell You Your Slice Of The Arizona Sunshine!