Real Estate Article:  Why Now is a Great Time to Buy!

Currently the media "experts" are saying the people should hold off on buying homes because it is such a "bad market".  This is total foolishness!  Why? 

The "experts" feel that the national market may not start rebounding for a year or two.  The also feel that the market won't "bottom out" for over a year.  Sounds good logic, except for a few minor details.  

First, all real estate is local and there are many areas of the country in a lot worse shape than they are here in the St. Louis area (especially in St. Charles County).  The St. Louis area has been named as one of the top 10 areas for a quick rebound.  Think about this:  How will you know when the "bottom" has been reached?  You'll know it when the media realizes that prices have started going up again.  By then, this area will have been going up for some time!

So if you wait, you may very well miss the lowest prices. 

Here are a few more reasons to buy now:

1.  $75,500 Federal Tax Credit

Between now on July 1, 2009, many first time home buyers will qualify for a tax credit (not a deduction...a credit directly reduces your tax liability.  The definition of "first time home buyer" for this credit is "someone who has not owned a home in the last 2 years.  If this is you, you need to take action soon.

2.  Low Interest Rates

Currently the interest rates are low.  With all of the current financial turmoil, we have no idea what will happens to the rates.  If they go up, you will have to buy a lower priced home.

3.  Loan Availability

Despite the "Mortgage Melt-down" and the media reports of a "credit freeze", there are a wide variety of loans available.  FHA loans only require a 3% down payment (until the end of 2008...in 2009 it will be 3.5%) and you can still get a loan with a credit score slightly under 600.  If you have family who can help you with the down payment, you can get a loan with a "gift letter" for the down payments.....and sellers can pay all or some of your closing costs.  Again, the future is unknown on loan availability.

4.  Great Investment Opportunity and Selection.

Because of the slow market, home price have come down slightly making it a great time to buy.  There aren't as many home on the market as previously, but homeowners who really want to sell are getting them into top showing condition and are pricing them to sell.  If you are interested in doing some work, foreclosures and pre-foreclosures can be a great deal.

So when do you think is a great time to buy?

Linda Grissette, GRI, e-PRO Certified

The Best Seller GMAC Real Estate, 3829 Veterans Memorial, St. Peters, MO 63376 

Licensed in the state of Missouri.

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