10 Reasons To Buy Before 09

Number 10

Property Values have become more reasonable

•· According to an index of 20 major metropolitan areas, property values have fallen some 16.6% since their peak. In some areas, the decline exceeds 20%.

Number 9

There is no guarantee that affordable conditions will last

•· If you can afford a new home at current property values and mortgage rates it might be wise to take advantage of that. You can't be sure of finding conditions as favorable next year

Number 8

Mortgage Rates are reasonably low

•· Historically, mortgage rates have ranged from 5.23% to 18.45%. At recent levels just above 6%, mortgage rates are at the low end of that range.

Number 7

Loan providers are looking to find qualified buyers.

•· While lenders have tightened new home loan qualification standards, they are also eager to make up for the bad loans they now have on the books by making new home loans to qualified borrowers.

Number 6

Short Sale opportunities are booming

•· This is one element of the opportunity window that many home buyers do not understand. While the purpose of this article is to discuss the opportunity, the key here is to understand why short sales are such great opportunities for buyers that can make a quick decision and then have the patience to go through a long closing cycle..

Number 5

Housing inventory is abundant

•· Due to the housing crisis / Mortgage crisis / Stock market uncertainty, inventory of available housing has grown to numbers due to short sales and foreclosures. Economics 101, the more supply, the less demand. The less demand equals great prices!

Number 4

Banks are in trouble with bad debts. Having Real Estate on their books is bad business for them. They are depending on the Government to "Bail Them Out"

•· Congress is trying to pass a 700 billion dollar bail out to the investment companies that have the bad debt of foreclosed homes. These are homes that are not generating revenues for these companies and ultimately, these investment companies want these properties off their books, so that they can use the monetary asset to once again grow money.

Number 3

HR Bill 3221 The Housing and Economic Act of 2008

•· A $7,500 Tax credit for First time home buyers . This plan is only good between 04/09/2008 to 06/30/2009

Number 2

The Media and "Experts" are against buying Real Estate.

•· All the wisest investors in history have always been contrarians. If everybody is saying you need to buy, they sell. If everybody is saying you need to sell, they buy. If the markets are mixed, they keep their hands in their pockets and only take advantage of special opportunities.

•· In 2008, we have seen everybody jump on board the panic train. Prices have plummeted below cost in many cases and inventory levels make it a ripe time for buyers to pick out a special house to hold on to for many years. Are you going to be a lemming and follow the tail of the herd or are you going to seize the day (Carpe Diem for Mrs. Brown, my high school English Teacher from Glendora High)

Number 1

Buyers have bargaining power

•· Besides lowering their prices, sellers have found they have to make other concessions to close a deal. Whether it's paying the closing costs or throwing in some new appliances, there are extras that buyers are in position to negotiate.