Maybe... Maybe not...
Make no mistake, there are some deals in the market. And combined with the $8000 First Time Home Buyer Tax Credit (FTHBTC), this can be a great time to buy a first home. Interest rates have remained low... despite a LOT of predictions to the contrary. In fact, with a projected deficit THIS year of $1.8T for the federal government, there is still an expectation that rates will have to rise because of the pressure on the available investors.
In fact, that would be the case laid out by those that say THIS is the time. The FTHBTC is coming to a close on December 1st. And while that is almost two months away, in the world of home search and financing, two months can go by pretty quickly.
On the other hand...
There are some points that would suggest that for some buyers, waiting a little longer might be just the ticket. In fact, waiting until AFTER the FTHBTC expires could be a better move for many buyers.
Just as with the Cash for Clunkers program, the tax credit is pushing some buyers into the market that might not have jumped in otherwise. And we have seen upward pressure on prices for entry level homes. Buyers, in some cases, are bidding up the prices for some homes.
By waiting until many of the buyers have abandoned the market... after the tax credit expires... there is a belief that prices may drop. Some think that the drops may be more significant than just the $8000. They feel that sellers may become quite lonely by January, and may be willing to offer better deals on their homes.
Others have also speculated that there might be a new program from the government to replace the $8000 First Time Home Buyer Tax Credit. There are plans to offer a $15,000 tax credit, as well as to continue the current offering. Nobody knows if these plans will come to fruition.
What does it all mean?
For "First Time Buyers" with solid cash resources, waiting may be a better plan. For those that would be better off paying a little more, but getting the $8000 in a few months, getting on the ball and buying a home soon could be a better way to go.
Don't forget, "First Time Buyers" are those that haven't owned a house in the last 36 months. The credit is for 10% of the purchase price, up to a credit up $8000. In GA, there is an additional credit of up to $1800 that may be available... even for those that aren't first time buyers.
If you are looking for a home around Lilburn, GA, give me a call and I can help guide you through the process.