Housing issues have saturated the economy locally & nationally. Home prices have fallen to levels we have not seen in years, depending on individual markets. The most recent report from the National Association of Realtors indicates that home prices for the month of January fell by 14.8%. The good news however is that in contrast to fallen home prices the number of homes sold in December increased. Homebuyers from east to west have been buying distressed properties at the rate of 45% of total sales.
Now is the time to buy! Whether you are a first time home buyer or a seasoned real estate investor, don’t miss out on a great opportunity. Almost half of the properties being sold today are either owned by banks or homes on which banks are accepting short sales, allowing them to be sold for less than what is owed. Interest rates are near all time lows and first time home buyers can take advantage of the temporary tax credit for purchases made in 2009.
So, don’t sit on the fence and watch the great opportunity of homeownership pass you buy. Even if you believe that home prices will continue to decline, there is no guarantee that interest rates will remain at these low levels.
Here is a final point to consider: Did you know that even if home prices were to decline another 10% but also during this time interest rates were to increase by 1.00%, your monthly P&I payment (principle & interest) would actually be higher? Talk to your lender and he will tell you that this is true. So, get in the game. To quote an old saying “If you snooze you loose!”.