Benefits of Buying in the Current Market!

Although the Federal tax credit programs ended with purchases occuring no later than 30 April 2010, there are still plenty of reasons to make a purchase in today's market:

1. Mortgage interest rates are still at historically low rates - most recently being 4.75% APR. A one percent change in the interest rate on a 30-year $200,000 loan can result in a change of the monthly principal and interest mortgage payment of $125.00.

2. Current inventory levels, downward pressure on sale prices, and low interest rates make this an excellent buying opportunity.

3. Mortgage interest is still deductible on your Federal and State income tax returns (subject to certain income limits and restrictions.)

4. Over a 10-year period, real estate has had a positive return, despite the losses experienced within the last 5 years.

5. What a seller loses on the sale of his/her home can be recovered on the buy side if the individual is purchasing a more expensive home.

6. As the economy improves, the real estate market will follow suit or lead the way. Even if you don't buy at the bottom, so long as you do not have to sell within the next 2 - 5 years, the home should be worth more in 5 years than it is today.

7. With all of the Federal, State and other mortgage loans now available to buyers at all different income levels, more individuals can qualify for a mortgage loan and afford a home.

8. As real estate sales increase, inventory levels will decrease and home prices will rise. This is the basic law of supply and demand.

None of us has a crystal ball which will tell us when the real estate market has reached the bottom and trying to time the market to take advantage of the market is very difficult. However, making a sound investment in a home that is well-priced in today's market is one of the best ways to take advantage of today's low prices and put yourself in a position to profit in the long term.