Is It Safe To Buy A House Now?

Everywhere you go people are talking about the real estate market. The doomsayers tell you to stay away from real estate while others say it’s a great time to buy a home. So is it safe to buy a home now?

The truth lies somewhere in between. For starters, if you are struggling financially or not sure about your employment, you should not be thinking about a major purchase like a home.  Get Pre-Approved for a mortgage to find out where you stand.

However, if your job is safe, you have some money in the bank, decent credit, and your personal circumstances justify buying, you just might be in for the home-buying opportunity of a lifetime. Let me warn you though, obtaining a mortgage is no walk in the park anymore.  Thanks to all the bad loans that were made in the last few years, lending guidelines have tightened significantly. Register  for our online Mortgage Workshop and learn the secrets you must know before applying for a mortgage.

Don’t buy a home if you expect to “flip” the house and make a killing in a few years or if you will be relocating in a couple of years. Even if you get a great deal on a house, the cost of buying and selling will probably eat up any profit you make on the house.

However, if you are looking for a place to live and expect to stay there for a reasonable amount of time, the conditions are ideal for you as a buyer.  Register for our online Home Buyer Workshop and learn the 20 things you must know before buying your first home. 

• Affordability is better than ever
• There is a large selection of homes for sale
• Mortgage rates are historically low
• Sellers are offering discounts
• You can get a federal tax credit

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Housing prices have dropped significantly from their peak in 2007. With low inflation and cheap mortgages, homes are very affordable. The inventory of homes for sale is large but down from the high levels of 2008. At its peak there was an 11 month supply of homes for sale. As of December 2009, that number is down to 6 ½ months. Hardly a shortage but the tide is turning in favor of sellers. Mortgage rates are currently very low due to artificial supply created by the Federal Government. Once the Fed removes liquidity, rates will begin to rise. Some sellers are anxious and are offering discounts and incentives to sell their homes. When conditions change in favor of the home sellers you can bet the discounts will disappear. When the market improves, your negotiating power will be reduced.

 The federal tax credit for first time buyers is up to $8,000. Trade up buyers may also qualify for up to $6,500. These credits will disappear in June 2010. I seriously doubt you will see them again.

All things considered, conditions are perfect to scoop up a bargain provided buying now makes sense for your situation. 

Give me a call now at 973-694-3659 to find out how much you can afford.