Best Time To Buy A Home is Now
August 18, 2010
A survey created by Move Inc. showed that around 23 percent of adults have plans to buy a home within the next 5 years. From this 23% just a tad over 53% are first time homebuyers. As a Realtor, if you have a homebuyer that is considering buying a home but has not made a commitment, you can use these points to help them with their decision.
Property values are now so low that owning a home is quite a bit more appealing than renting in most cases throughout the United States. Paying a home loan is not as expensive as renting a home in several metropolitan areas which includes Las Vegas, Miami, Washington DC, San Antonio, Phoenix, and Fresno.
Those looking to purchase a home are on top as home sellers are lowering their prices on close to ¼ of the homes listed for sell in the United States in June 2010 as reported by Trulia.com website. This figure is up 9% from May of 2010 and shows a reduction in the total price of around $27 billion.
The current recession has brought on lower mortgage rates. This means for those looking to buy can get a 30-year fixed-rate loan amount of $200,000 at 5% and the interest paid over the life of the loan is $186,512. This will bring the loan payment to only $386,512. At 6%, the amount of interest paid rises to $231,676; a 24% increase is seen whereas at 7%, it is $279,018, which is a 49% increase.
More investment options are around as home prices and mortgages rated have dropped drastically since the recession began in March of 2008. This has made the real estate market a heaven for buyers with the percentage of median household income needed to purchase a home on a median priced home at a 30 year low.
12 Comments to Best Time To Buy A Home is Now
Comments
The current state of the market is certainly a haven for 1st time buyers, it’s just a shame that the banks are so dubious about who they lend to
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I always tell my sellers that are worried about selling so low that they will sell low but they will also be able to buy low. And if they are a move up buyer like most are then they will be better off selling and buying now then later.
I hope it’s a great time to buy……!
Meaning, I hope homes are near the bottom in terms of price.
I agree that now is the time to buy, especially with the record low interest rates.
Hmm…might have to look into buying my first home… thanks for the info!
Despite the fact that homes have lost more than a third of their value over the past three years, the vast majority of Americans want to be homeowners, according to the latest Fannie Mae Housing Survey.
Which is really good news for Realtors, mortgage lenders, professional home inspectors, and anyone else associated with the real estate industry.
And yet, I have to agree: This is a great time to buy a home. Why?
3 Reasons Why Now Is The Best Time To Buy A Home
While it is harder to get financing than it was several years ago (when all you needed was a pulse instead of all the paperwork that’s required today), there are at least 3 reasons why now is the best time to buy a home:
Home Buyer Tax Credits. As long as you have your paperwork done by April 30 and can close by June 30, and you qualify, you’ll could eventually pocket up to $8,000 for a first-time home buyer tax credit or $6,500 for a long-term homeowner tax credit.
Mortgage Interest Rates Are At 40-Year Lows. Just because you could have had a 30-year fixed rate loan at 4.75 percent last November and this past February doesn’t mean you shouldn’t try to refinance now that interest rates are just over 5 percent. This is still an amazing interest rate for the long-term and if you don’t refinance now, you’ll soon wish you had.
Home Prices Are At Generational Lows, Too. Right now, home prices are in a state of fluctuation. They’re rising (slightly) in some areas and falling in others. But just because home prices might fall before they rise again shouldn’t keep you from making an offer on a home as long as you find the right house at the right price on the right terms.
thompson44
Colorado Immigration Law
I’m recommending first time buyers jump in with both feet right now. If you can get the banks to work with you, your golden.
it’s just a shame that the banks are so dubious about who they lend to
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Nice write-up! very good points. you bring up an interesting topic. I just bought my first home this past June. I think now is a great time to buy especially because mortgage rates are so low. This article provides great advice on how to determine when to buy a home. I bought my home with a bank mortgage payment of $1,200/month. I also bought a home warranty from by 24-7 Home Warranty that costs $25/month. So far my experience has been great because it has helped me keep my home repair costs low especially because I discovered that a lot of repairs needed to be done to my home.
Charles
I have been working for a total of 10 years more or less from now..i am really striving hard to earn that big amount of money to put up a mansion for my own..after reading this post, i really am fully decided to buy a house this weekend..thank you, you really helped me making this huge decision in my life..
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