5 Reasons Why TODAY Is A Great Time To Purchase Your First Home

We’re all hearing the rumors from our dentist, tennis partner and mechanic as to why it either is or isn’t the time to be buying, selling, investing, renting etc. Everyone seems to have their own opinion and finds the need to make them known.

I understand… it can all be extremely overwhelming not knowing who to believe and trust. I am going to go with the theory that facts are a good place to start.

I should stipulate that this article is directed to potential buyers who can afford it! Having a significant down payment and the ability to pay your monthly mortgage bill is the first step.

1. Cold Hard Cash – The government is currently offering an $8,000 tax credit till December 1, 2009. Keep in mind that this does not need to be repaid unlike the previous bill that was passed by the Bush Administration. Who knows what will happen after December 1^st so, why not jump on board now.
2. Interest Rates – The best 10-year Treasury bond auction in 14 years occurred Tuesday, driving the 10-year treasury yield down near 3%. Mortgage rates for 30 year fixed conforming mortgages are directly tied to the 10-year Treasury yield. As it plummeted, so did mortgage rates. So, if you think you missed the boat in April and May when they were at an all time low, now’s your chance to get back in. As of today, we are seeing rates for a 30-year fixed back to approximately 5.00%.
3. Home Prices – Though the Northeast have faired relatively well in comparison to other regions of the country, sales are down 20% off their peak.
4. Inventory – Number of listings are higher today than we have seen in a while for all homes; new construction, existing homes, short sales, foreclosures etc. This gives you the ability to likely find exactly what you are looking for rather than settling for the “leftovers”.
5. Discounts On New Homes – If you are only searching for new house, this is a great time to try and make a deal with a builder. Today, many builders are over extended and are willing to make deals that historically they may not have made. Many builders are more concerned about their reputation and credit than necessarily getting all the money back on their investment.

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