Strong indicators show that we are in the best market to purchase a home. Whether you are interested in buying a home as an investment, as a first time home buyer, or to move up to a bigger home, it doesn’t matter. It’s still a great time to buy for everyone. There are many more reasons why, but to make things easy, I can boil it down to three main factors.
1. Housing prices are declining. The old saying, “buy low, sell high” applies here. There’s no need to wait it out for the lowest price. In fact, waiting it out could do you more harm than good. You will miss a lot of great deals out there waiting for the market to bottom out. Because real estate is for long term investing, your purchase will pay off even if you didn’t buy your home at the lowest point in the market.
2. Mortgage rates are at a low. CBS Financial Analyst, Ray Martin, appeared on the CBS Early Show saying, “Rates on a 30-year, fixed-rate mortgage are at a level we won’t see again in our lifetime.” Be full warned, when housing purchases increase, rates are going increase as well and historically they have increased rapidly.
3. $8,00 First-Time Home Buyer Tax Credit. Buy before December 31, 2009 and you’ll get an $8,000 tax credit if you’re a first-time buyer. Know the definition of a first-time home buyer! You can previously have been a home buyer and still qualify. The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law test the home ownership history of both the home buyer and his/her spouse. See First-Time Home Buyer Tax Credit.
Not sure how to proceed? I’d meet with your mortgage broker and find out what you can afford to buy. Credit score needs some work? No problem, a good mortgage broker can help you improve your credit score. Then, call me. I can help you find the best home at the best price.