So you keep thinking about buying a house, but the prices keep dropping, the mortgage rates seem stable, and you just keep on waiting. Buying a home is usually one of the biggest financial decisions we make in our adult life, and knowing when to "take the plunge" is not easy. So how do you know the time is now?
Do you know anyone who times the stock market perfectly, always buying when prices are low, and selling when the stock reaches its peak? Probably not, and buying a home is much like investing in stocks. You do your research, get your money together, and make your buying decision. If the stock drops tomorrow you cringe, if it goes up, you cheer. Below are a few reasons why shouldn't wait to buy a home:
Large Inventory. We have the largest home inventory we have had for some years right now. With foreclosures peaking, there is a nearly nine-month supply of homes. In the Yuba County and Sutter County market you literally have hundreds of choices.
Falling Prices. Prices have dropped substantially over the last year. While this is bad news for sellers, it is great news for buyers. Not only is there more to choose from, you can get a lot more home for your money today. Will the prices continue to fall? No one knows where the bottom is, until prices start to go back up, so waiting until the market hits rock bottom means you already missed it. Just like stocks, the best way to beat market fluctuations is to buy and hold. Plan to stay in your home at least two years.
Historically low mortgage rates. The rates are still good, the difference today is that you have to have decent credit to get a loan. It doesn't have to be stellar, just decent. If you need to work on your credit, get your past due accounts caught up, stop using your credit card and start paying down the balances. Put a little money in a savings account each month.
Tax credit of up to $7500. First time buyers receive a one-time tax credit of 10% of the price of the home, up to $7500. While this money does need to be paid back over the next 15 years, it helps right now in purchasing a home. A first-time homebuyer is one that has not owned a home in the last three years. The tax credit is for owner-occupant purchases only.
Mortgage interest deduction. Pay less taxes at the end of the year by deducting the amount of your mortgage interest expense from your taxable income. You save this money every year, for years to come. See your tax advisor for details.
Well these are just a few reasons to buy today. Call me and we can talk about what you are looking for in a home, get you pre-approved for a mortgage, and look at homes in your price range. It's time!
Melia Campbell
530.743.3333