At last, given recent changes in the housing market nationwide and locally, it's small wonder buying a home is looking a lot more attractive. From first-time buyers to dream-home trade-uppers to snow birds to rental investors, market conditions and tax breaks have combined to make buying a home today much more affordable. The buyer's market of 2009 may make many new homeowners look back on today's market as one of the best opportunities ever. Here are six reasons why.

Lower Prices
The market is likely to bump along the bottom for a while -- and some areas may not hit absolute rock-bottom for some time. But focusing on the bottom of a housing market is fraught with problems. First, it's only with hindsight (or clairvoyance) that one can accurately spot the point at which housing prices hit bottom. By the time market data begin to show sales increasing and prices rising, the best home values are already a thing of the past. Opportunity missed.

Second, nationwide statistics or even regional trends have little relevance to what's happening in our particular area and neighborhoods. For example, the city you live in may show overall prices decreasing while the particular neighborhood you want to purchase a home in is actually appreciating in value. Another opportunity missed.

Third, prices are not the only factor to consider when deciding whether now is a good time to buy a home.

Great Interest Rates
Mortgage interest rates are near historic lows for those who have good credit -- but that won't last forever. A buyer who can qualify for, say, a 5.5% fixed interest rate on a 30-year, $200,000 mortgage would have a monthly principal and interest payment of $1,136.

Now say that same buyer decides to wait, hoping the home can be purchased for $10,000 less ($190,000 mortgage). If the interest rate goes up even just one percentage point during that wait, to 6.5%, the monthly payment would be $1,201 -- $65 more per month, $780 more annually and $23,400 more over the life of the loan.

Buying a home at today's interest rate could be less expensive than purchasing a lower-priced home some months down the road. (Interest rates used are for example only; call us for a current quote!)

Big Selection
Another advantage of today's market is having a good selection of homes to choose from in most areas. Being ahead of the demand curve, before other buyers enter the market, means you get to choose from among the best properties within your price range.

Flexible Sellers
Sellers today are well aware that more homes are competing for the available buyers. Faced with lots of competition from other homes on the market, sellers right now are often willing to negotiate not just price, but contract terms -- home-sale contingencies, inspections, conveyances, decorating allowances, move-in dates, you name it. Some even help with closing/settlement costs to reduce buyers' cash requirements.

If you're interested in buying a new home, you probably won't have to look long to find a builder who has cut prices or is offering an incentive to purchase. The National Association of Home Builders recently reported that 75% of builders are offering incentives to get their homes sold -- free or reduced-cost upgrades, several months of mortgage payments, free gifts, vacation packages, etc.

Tax Credit
First-time buyers and those who haven't owned a home in the last three years may qualify for a tax credit up to $8,000 by purchasing a home before December 1 this year. (We'll be happy to supply all the details; just give us a call.)

Now's The Time To Buy
Homeownership is a long-term investment. With that in mind, the fear that a home you buy today could lose some value in the short term should be weighed against the clear advantages today's market offers. With a long-term horizon, chances are your home's value will increase. In the meantime, it will provide you with shelter, stability, security and a place to call your own.

If you're interested in buying a home, think seriously about doing so now. You may never again have so many valuable advantages all at the same time. Give me a call so we can help!
Greg or Trish
281-356-8013