For those whose homeownership hopes have been dampened or temporarily derailed by the housing downturn and economic recession—the people wondering if this is a good time to buy—the answer is simple: Yes. It’s a very good time to buy.
Today’s market, coupled with a tax credit of up to $8,000 for first-time home buyers, near-record low mortgage interest rates and ample inventory, provides an unprecedented window of opportunity for qualified prospective home buyers. In fact, there may never be another buyer’s market as good as today’s.
Time is of the Essence
In landmark economic stimulus legislation, Congress has provided an outstanding opportunity for first-time home buyers with enactment of an $8,000 tax credit for single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000. Partial credits of less than $8,000 are available for individual taxpayers with incomes up to $95,000 and for married taxpayers with incomes up to $170,000.
But time is of the essence to take advantage of this oncein-a-lifetime opportunity. Only homes purchased on or after January 1, 2009 and before December 1, 2009 are eligible for the tax credit.
Great Selection
An outstanding selection of homes is another reason that it’s a good time to buy. Available inventory is probably the best it will ever be, providing buyers with a great choice of homes. Many builders have homes that are “move-in ready,” and they may offer upgrades or other incentives to seal the deal. Likewise, owners of existing homes who are looking to trade up, downsize or relocate are ready to bargain.
Attractive Pricing
If there’s a silver lining to the housing downturn, it’s that homes are more affordable. Prices have moderated significantly in many areas, especially in major markets where they increased the most during the boom that occurred in many parts of the country. In other areas, prices may not have declined as much, but for the most part, they didn’t rise as high or as fast as prices in the hottest markets.
Low Interest Rates
Like inventory and pricing, mortgage interest rates are at favorable levels. And even though lenders are looking more closely at borrowers than in recent years, qualified home buyers
should not have trouble getting financing. For several years, mortgage rates have been near record lows. But rates can, and do, change. No one is predicting that rates will suddenly surge upward. But rates don’t have to increase much for monthly mortgage payments to become unaffordable.
So it is worth saying again….Today’s market, coupled with a tax credit of up to $8,000 for first-time home buyers, near-record low mortgage interest rates and ample inventory, provides an unprecedented window of opportunity for qualified prospective home buyers. In fact, there may never be another buyer’s market as good as today’s.
