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Home 5 Reasons For You to Buy That Home Now

5 Reasons For You to Buy That Home Now

If you're qualified to buy a home now, and that home purchase makes sense for you and your family, here are five reasons why you should consider buying that home in the next several months:

1. Homes are more affordable than ever.

According to the National Association of Realtors' housing affordability index, homes were more affordable in October of this year than at any other time since the group started the index in 1970. The NAR’s affordability index is a measure of the relationship between home prices, mortgage interest rates, and family income.

In Charlotte, the average home price in October was $196,204 compared to $216,777 in 2008 and $217,504 in 2007. That’s a 9.8% reduction over the past 2 years. Although that doesn’t sound like much, you still get a lot more for the money on a home purchased in the Charlotte area than in other areas of the country.

2. There is a large inventory of homes from which to choose.

In many areas of Charlotte it is taking upwards to a year to sell a home, creating a lot of inventory — from new homes to existing homes to foreclosures. In October, there was 23,850 homes for sale in the entire Multiple Listing Service area of Charlotte.

A large selection of homes gives you, the home buyer, more choices and helps to curtail listing prices. Lately, home sellers have become more conscious of market conditions and are pricing their homes accordingly in order to sell their homes quickly.

3. Builders are offering huge incentives.

Home builders are getting even more aggressive with their pricing and other incentives that help them sell homes. New home prices are less negotiable with a builder than with a home being sold by the owner-occupant. That is due to the fixed costs such as labor, lot prices, and construction materials that make up the price that a builder will ask for a particular home.

Other aspects of the home purchase such as upgrades, closing costs, and other buyer incentives such as appliances, blinds, etc. will generally be the most negotiable in the contract for a new home. I am seeing an increase in closing costs and upgraded features like cabinets, flooring, grade of carpet, and counter tops being offered to attract or close the deal with new home buyers.

This means that you will get more house for the money, which will translate into increased market value when you go to sell in the future.

4. Mortgage rates are historically low.

It's not just the price of the home that will affect affordability; mortgage terms will also affect your monthly payments. These days, rates are very attractive for conforming loans, those that can be purchased by mortgage agencies Fannie Mae and Freddie Mac.

Rates are still below 5% and are expected to remain at that level on into next year on a 30-year fixed-rate mortgage. But low rates don't mean lenders are handing out mortgages easily. You'll need good credit, a substantial down payment, and a willingness to document your income in order to qualify for those great rates.

5. A federal tax credit is available.

In November, President Obama signed a bill extending the first time home buyers $8,000 tax rebate. Included in that bill is an expansion of the original plan to include existing homeowners. The expansion provides a $6,500 tax rebate for qualified buyers who already own their home.

Both tax credits will be in effect until April 30, 2010. These provisions offer a tremendous opportunity for first time home buyers and certain existing homeowners to buy a home before the April deadline.

Search for Homes for Sale in the Charlotte area.

Chuck Webb, Wilkinson & Associates, www.ChuckWebb.net, 704-724-2454
Posted Wednesday Dec 09