As the recession comes to an end and the economy begins to regain its strength, now more than ever is a great time to be in the market to buy a home. There are several factors that make now a great time to acquire property, but we will specifically talk about 4 key factors. These factors include low median home prices, rock bottom interest rates, available tax credits and investment opportunities!
1. Low Median Home Prices
With the free fall of home prices over the last 3 to 4 years and a large number of distressed properties hitting the market, some areas of the U.S. are seeing the median home prices as low as they were in 1997. As the prices start to flatten, many economist believe that the roughest parts of the real estate road have been passed and that prices could start to rebound in the 2010. The median price in the the U.S. for a single family home is $169,000, that is down 13.8% from last year. The pending sales index, which is up 21% from the same time last year, indicates that consumer's are getting great deals and taking advantage of this buyers market.
2. Rock Bottom Interest Rates
With interests rates on mortgaged money as low as its ever been, its hard not to take advantage of this buyers market if you are able financially. You can lock in a 30 year fixed mortgage at just over 5%, while you can get a 15 year fixed mortgage for just under 4.75%. Credit qualifications for mortgages are a bit more stringent than they have been in the past few years, due to the mortgage crisis which is one reason the housing market is where it is today!
3. Tax Credits
With the first time home buyers tax credit being extended and expanded last week, more people may be able to afford home ownership than ever before. The $8,000 tax credit for first time home buyers was extended through April 2010, and is available to consumers wanting to buy a home that have not owned a home in the last three years. The expansion of the tax credit now includes a $6,500 credit to home owners who have lived in their current residence for at least 5 years. The income limitations are $125,000 for single applicant and $225,000 for married applicants. To receive this tax credit, the purchase agreement must be signed by April 30, 2010 with closing accuring before June 30, 2010.
4. Investment Opportunities
With the number of distressed and foreclosed properties on and set to hit the market, real estate investors have a plethora of options in regards to going about thier business. With foreclosures selling at 50 to 70 percent of market value, investors have the chance to buy these properties, put a little TLC into them, and depending on the circumstances either sell it for a profit or rent it out for a monthly cash flow. Either way there are many opportunities for investors to get involved in the real estate market. Another benefit of the times is that many contractors are looking for work and are willing to do renovations and fix-ups for a lot less than they were charging three or four years ago.
These are just 4 of the many reasons that now is a great time to purchase real estate. Just remember not to get in over your head, stay within your budget and be aware of all the cost that come with home ownership. Find a good real estate agent and none of those problems should be an issues for you.
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