A Perfect Storm for Home Buyers
No one wants recession. It hovers over everything we do, day in and day out, like a gigantic storm cloud. The economic storms bring real-life troubles, from anxiety and depression to scarcity.
Yet, even this current economic storm cloud has its silver lining. In fact, today we find ourselves in something of a “perfect storm” in one area: home buying.
There has never been a better time than right now to buy a new home. We’re poised at an amazing con-flux of phenomena, making it the right time to buy. The combination of the Federal Tax Credit, low interest rates and low home prices means that today it is more affordable than ever to buy a new home.
The Federal Tax Credit
The first element in this mix is the $8,000 federal tax credit. Thanks to the American Recovery and Reinvestment Act of 2009, new first-time home buyers can get a credit of up $8,000 when they buy a home between now and December 1, 2009. The amount of the tax credit is equal to ten percent of the sale price of the home, up to a maximum of $8,000.
Low Interest Rates
Today’s interest rates are lower than ever. In fact, most experts agree that interest rates can’t drop any lower at all. The drastic pace at which interest rates have dropped in the past couple of years makes that monthly payment much more affordable, allowing buyers to get much more house for much less money.
Mortgage interest rates today are at the lowest they’ve been in nearly four decades. How much longer that will last, no one knows. What it means, however, is that right now is the best time to consider a new home purchase.
Low Home Prices
Competition in the housing market is stiff right now, and that’s good news for home buyers. There are plenty of options on the market, in all budget ranges. Foreclosed homes and other distressed homes can be picked up for much less than their market value. The availability of these kinds of properties has made it so that even traditional sellers have had to adjust their prices in order to stay competitive.
Today, home prices are at similar levels to what they were in late 2003. For the past 30 months, home prices have been dropping. While no one knows how much longer this will last, you can be sure it isn’t going to last forever.
Grab hold of today’s golden opportunity. Get caught up in the perfect storm and buy your home today.
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