Rafael Castro Jr

An interesting article that came out today, March 26, 2009, shows how buyers are feeling about today’s market. The survey showed that more than three-quarters (78 percent) of potential first-time home buyers say that now is a good time to buy a home, despite widespread concern about the economy. Out of the 1,000 prospective U.S. first-time home buyers surveyed in early March for the CENTURY 21 First-Time Home Buyer Survey, 68 percent think now is a better time to buy than six months ago.

Another factor driving motivation for buying is home prices. More than eight of ten first-time home buyers (85 percent) say they consider current home prices affordable and 73 percent cite that taking advantage of current prices is a major factor in their decision to buy. However, potential first-time buyers are still split between “being willing to consider an offer now” (42 percent) and “waiting for prices to go down before they seriously consider making a purchase” (48 percent).

Will rates go any lower? Lending consultants are saying they have. With 30year fixed rates on loans under $417,000.00 at 4.5% and lower, FHA loans pricing at 5% this can potentially save hundreds of dollars on monthly payments. Options to buy larger priced homes have also seen improvements in rates. Loan amounts up to 1,200,000 have 30 year fixed rates at 5.875%.

Of course, fear of losing one’s job and the “bad” economy is on everyone’s mind. Nobody really knows if it will get “worse” before it gets better, lots of predictions. But what we do know is we have lower home prices and very good interest rates. On some of the properties I have co-listed, I have had multiple offers. Seems buyers are taking advantage of current home prices and lower rates.