Buying in Today’s Market

There are a lot of reasons to buy these days:

1. Low interest rates. Interest rates are below 5% pretty consistently now. This is truly  historical. In recent years, we had ARMs or teaser rates blow 5%, but not fixed for 30 year interest rates. There is nothing that saves a buyer money month over month and year over year more than a low fixed intrest rate. On many new construction developments, rates are even lower, some are in the 3% range. These are offered by the builder’s lenders who don’t want the units to go into forclosure. The banks would rather give a low interest loan from their own prortfolio than eventually own the property.
2. Low Prices. Depending on neighborhood, prices are down 10% to 20% from our market’s peak of July, 2007. This means we at roughly the same prices we were at in 2005! Many forclosure and bank owned properties are even less.  If you felt priced out of the market in the last few years, it may be time to check prices again. You can visit the property search here if you want.
3. $8000 First-Time Buyer Tax Credit. This reason alone is encouraging many buyers these days to take the plunge. This credit pays you back $8000 that you use for a down payment or closing costs for a first home purchase. It does not ever need to be paid back.
4. All of the above. Reason 4 is the combination of the above 3 reasons. Add the lifetime of savings from an interest rate in the 4% or 3% range, the savings from buying at a discount, and add $8000 if you are a first timer, and you have a big reason all by itself.
5. Inventory. Our inventories are huge still. A look at the MLS reveals lots of new homes and condos available at very good prices and terms, resale homes that have been well taken care of and updated, pre-forclosure properties, and bank owned properties at even greater savings. What many buyers dont realize is that there is also a hidden inventory of available properties that re not listed, but are for sale.