By Five Reasons Why Now is the Perfect Time to Buy-
- Low Mortgage rates – Bankrate.com recently reported, that mortgage rates are at their lowest point ever in their survey taking history. They have been conducting rate surveys since September 1985. The national average for a 30-year fixed rate mortgage is very near 5%. This is great news for buyers. If you read or listen to the news, you will see that refinancing has increased dramatically. Why do you think this is? Any further rate drops are likely to be minimal. One thing that you can count on, when rates begin to rise, they go up much faster then they go down. The current interest rates alone, is a really good reason to consider purchasing a home.
- Housing Prices – Everyone knows that housing prices are down in most regions. Do you think prices are going to continue to decline? Perhaps, but most of the decrease is now reflected in today’s prices. The number of sales and median prices have been rising steadily in the Bay Area since the first of the year. Multiple offers have become very common in the lower price range. See for yourself at BayAreaMarketMetrics.com. Now you have two good reasons to buy.
- Seller Motivation – Due to the current market conditions, it is pretty easy to identify motivated sellers. In many instances, you can easily find a motivated seller by looking at the property description. Look for keywords such as: “motivated seller,” “make an offer,” or “must sell.” Be sure your agent is on the lookout for consistent price reductions. If you like the property and the seller is motivated, then you should seriously consider making an offer. If you don’t, chances are someone else will and you will have missed your opportunity. Don’t let that happen to you.
- Tax Advantages – Current tax law allows homeowners to deduct interest paid on mortgages and the amount of paid property taxes. If you are paying rent, you do not qualify for these deductions. The Federal and California State governments are also offering incentives. The most widely publicized are the Federal $8,000 first time home buyer tax credit and the California $10,000 tax credit for a new home purchase. This makes a great opportunity even more incredible. For find out if you qualify for one or both of these home buyer tax credits, check with your Realtor®.
- Timing – You must have heard the expression “buy low and sell high,” right? It might even be your mantra. As with any investment, it is ideal to purchase when prices are low rather than at their peak. However, if you are waiting to purchase a home because you believe prices will continue to drop, you will likely miss out of an ideal opportunity. The time to “buy low” is right now. Once everyone comes to the realization that prices may already be at their lowest point, then you can rest assured that buyers will jump in and start buying. In the lower price range multiple offers are becoming more common. Remember, the best deals will be the first target.
Now you know, this is a great time to buy a house. There is plenty of inventory, interest rates are low, house prices are down, sellers are motivated, you can take a tax deduction and you may qualify for up to $18,000 in tax credits. The timing is perfect. You have nothing to lose and so much to gain.
