Daily Archives: March 31, 2010

    As you can see on the countdown timer to the right, the deadline for tax credit qualification is getting near. The fact is now is a good time to buy. Why is now a good time to buy? Here are three reasons why:     1. Histoically low interests rates. Sitting as low as 5%, your buying power is very good. A rate increase as little as .5% could reduce the amount you can borrow by as much as $100,000. So now is a good time to talk to your lender and get locked in.    2. The tax credit is expiring very soon. For first time buyers, those who have not owned a home in the last three years, could qualify for up to $8,000. Those owners who have lived in their home for 5 of the last 8 years could qualify for up to $6,500. This is a great expansion of the credit. To qualify you only have to be under contract by April 30th and close by July 1st, 2010. Another good point is that it could be used on your 2009 or 2010 tax return (consult a tax professional for more information).    3. Home prices are lower. This is good news for buyers. With bank owned and short sales, some homes are being sold for as much as 50% of market value. But let me explain this a little more. In 2005 we had an unusually high housing boom. This raised property values extremely high and more than it really should. With the fall of the sub-prime market, this caused values to drop, however, they really only dropped below what they really should have been by very little. So the market is in a recovery period and starting to re-stabilize. Just because you buy a house for a good value now, you should see a rise in prices as the market is starting to show. So, if you are on the fence about purchasing, now is a good time and get moving on a home now.

For more information from the National Association of Realtors, click below: