It's a Buyer's Market!

Today’s real estate market is less than ideal for sellers, but great for buyers.  There are numerous opportunities available only in a Buyer’s Market.  There are several reasons why NOW is an excellent time to buy a home.

The current supply of homes far exceeds the demand:

·         No Money Down has the most comprehensive list of foreclosures and re-sales to ensure you have the largest selection of affordable homes to choose from

·         Many of the houses bought by our clients are appraised for twenty five to fifty thousand dollars more than the purchase price

·         The current market gives our preferred realtors the leverage to negotiate a lower purchase price and have the sellers pay for your closing costs and any required down payment

Housing is more affordable than it has been in a long time:

·         Since the peak of the housing market in July 2006 there has been an 18% price correction nationwide, which means you can buy more home for less money*

·         Interest rates are still historically low.  However, many economists think rates on thirty year fixed mortgages will start increasing due to inflation concerns and the depreciating dollar.  So now might be the best time to lock in a low interest rate.

Right now might be the best time to buy:

·         When the news on the housing market is at its worst, it can be the best time to buy because this is typically when a market is at or quickly approaching the bottom 

·         Industry experts believe the rate of foreclosures will slow down by the end of the year, reducing the excess supply of homes for sale and improving the housing market

·         In recent months, the pace at which home prices have dropped has slowed down considerably, indicating the housing market is starting to show signs of stability*

·         Many buyers are sitting on the fence waiting for the right time to buy, making it likely to miss out on the best bargains if the housing market turns and you are stuck in a rental agreement

Real Estate is local not national:

·         Real Estate markets in each neighborhood, city, and state are different.  Some areas have, and will continue to hold their value due to strong local economies, job markets, and ideal locations.

·         Many parts of California have already had huge price corrections indicating the worst is behind us

·         According to Lawrence Yun, the chief economist for the National Association of Realtors, many regions of the country that saw sharp price declines are now seeing a sales recovery due to bargain hunters entering the market in large numbers

History shows that owning a home is a good long-term investment:

·         According to the National Association of Realtors the average home has appreciated greater than 5% a year since 1968, despite previous downturns in the market

·         On average, the value of a home nearly doubles every ten years**

·         If you plan on living in a home for a long period of time you will be able to ride out the short-term volatility in the housing market

·         Even if the housing market continues to decline, a considerable tax write off will be received every year when making a mortgage payment

·         You will also gain equity in your home by paying down your loan balance 

·         None of these benefits are available when renting

No Money Down cannot predict when the housing market will turn.  But we do know that purchasing a house is much more affordable than it used to be, while renting is becoming more expensive.  We also know that purchasing a home is a great long-term investment.  So if you are outgrowing your current home or plan to move and stay in a home for at least five years, take advantage of the Buyer’s Market and stop throwing away your money on rent. 

*According to the S&P/Case-Shiller national home price index

**According to the National Association of Realtors

No representations or warranties, express or implied, are given regarding the legal, financial or other consequences resulting from the use of this information.  The information is provided for general information and educational purposes only and should not serve as a substitute for legal or accounting advice from an attorney or professional familiar with the facts and circumstances of your specific situation.