Why Now Is A Great Time To Buy a Home

People often ask me if now is the right time to buy. Has the market bottomed out? Should I wait until prices get lower.

This article will explain to you why the answer is definitely, YES.

Prices have dropped appoximately 40% in Florida since the 2006 high. Along with the drop, interest rates have remained historically low. On top of that, there is an 8000 tax credit for first-time home buyers.

In order to be a "first-time home buyer, you or your spouse may not have owned a residence during the 3 years prior to the purchase. That opens the door to a majority of Americans.

So, you have 3 primary reasons that answer the above question:

• 1. Prices have dropped approximately 40%.
• 2. Interest rates have remained historically low (between 4.5 and 5.5%).
• 3. Tax credit of up to $8000. (10% of the purchase price, up to $8000).

Now, a common rebutal is that "prices may continue to fall" or "I want to wait til the market bottoms out." If you are planning to get a mortgage, that is definitely not a good idea. Once the market "bottoms out" interest rates will surely have risen from the increased demand.

Increases in interest rates have a huge effect on your monthly payment. The chart below assumes an average home purchase with 20% down.

 I've seen several economist predictions that prices may fall another 10%. Even so, if interest rates increase 1% in the process, you will be paying more monthly. And, it is very possible that interest rates could increase more than 1%. They were 8% for a very long time. At 8% that 10% decrease in purchase price would stick you with a $1,056.62 monthly mortgage.

The time to buy a home is now!  No one knows when home prices will begin to increase or when mortgage interest rates will rise.  It could be tomorrow or next year, but do you really want to miss this awesome opportunity?

The final, and most important reason for buying now - you will soon be moving into the fabulous house that we help you find. The home of your dreams could be yours NOW!

Best wishes, Shel


Sheldon Goldberg
Broker, DREAM REALTY
727-512-6030