But with the Tax Credit Extension... I can wait to buy...

AgainWell, yes, you can. 

The question is "Should you?"

There are a few things to keep in mind as you decide about timing on purchases using the First Time Home Buyers Tax Credit (up to $8000)... and Move Up Buyers Tax Credit( up to $6500). 

• How is the inventory in your local market?  Will it be going up or down over the next several months? 
  

Here in the Atlanta area, inventories generally increase in the spring and decrease around the holidays.  This means that there are more homes to choose from during the spring and early summer. 

• What about buyer competition?  Will there be more buyers competing for the available properties in the future?

Suppy and demand has two variables.  Demand is the other one.  Here in the Atlanta area, there are generally more buyers in the market during early spring until mid-summer.  The buyers in the market around the holidays are generally more serious... 

• Will interest rates move up or down? 
  

That is always a tough call.  Many experts have been expecting increases for the last several months.  So far they have been wrong, but the basics of why they are expecting increases is still valid.  There is increasing competition for the available capital because of increased governmental borrowing.  Also, low rates often cause currency devaluation, so there is an expectation that rates will need to be increased at the federal funds target level. 

• What about prices?

Again, with the Atlanta market, prices tend to be stronger during the spring and summer and weaker during the fall and winter. 

Of course, each year and each market can be radically different.  But...

• Does it matter if there are more homes on the market if you find one you REALLY like?
• If you are buying when there are fewer buyers, you have more power.
• Can interest rates go much farther down? 
  
• Do you really expect prices to move down?  Keep in mind that on many attractively priced properties there are multiple offers.  

You need to make your own decision.  I think it is a good time to buy, but I'm not the one signing the contract...  So, do your own research.  When you are done, feel free to give me a call.